Joint Circular No. 03/2013/TTLT-BTNMT-BTC-BKHĐT guiding the management mechanism for the capital of the Climate Change Response Program

JOINT CIRCULAR

Guidelines for the management mechanism of financial resourcesof the Support Program ứng phó với biến đổi khí hậu

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Pursuant to Decree No. 60/2003/NĐ-CP dated June 10, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decree No. 25/2008/NĐ-CP dated March 4, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Natural Resources and Environment;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 116/2008/ND-CP dated November 14, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Planning and Investment;

Implementing Decision No. 1719/QĐ-TTg dated October 4, 2011 of the Prime Minister approving the criteria for prioritizing projects under the Support Program for responding to climate change and the conclusion of the Prime Minister - Chairman of the National Committee on Climate Change at the first meeting of the National Committee as reported in Notification No. 20/TB-VPCP dated January 18, 2012 of the Government Office,

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the management mechanism of central budget funds allocated to support the implementation of investment development projects aimed at responding to climate change as determined according to the project prioritization criteria approved by the Prime Minister in Decision No. 1719/QĐ-TTg dated October 4, 2011 for the Support Program for Responding to Climate Change (hereinafter referred to as the SP-RCC Program).For financial resources implementing the National Target Program on responding to climate change and state budget adjustment provided in the financial mechanism for foreign loans and aid for the SP-RCC Program approved by the Prime Minister in Document No. 8981/VPCP-QHQT dated December 10, 2010 are not within the scope of this Circular's regulation.

Ministries, sectors, provincial People's Committees directly under the Central Government (hereinafter referred to as ministries, sectors, localities), units, organizations managing and using state budget funds to implement projects that have been

Article 2. Applicability

approved by the Prime Minister under the SP-RCC Program. The Prime Minister approves the SP-RCC Program under this Decision.

Article 3. Principles of Management

1. Projects proposed to be included in the SP-RCC Program's list must comply with the planning approved by the competent authority and meet the priority criteria as specified in Decision No. 1719/QĐ-TTg mentioned above.

2. The establishment, review, approval, and organization of project implementation must be carried out in accordance with the Law on State Budget and current regulations on investment and construction management, ensuring proper use of funds, economy, efficiency, transparency, and accountability; implementing accounting, auditing, settlement, asset management, and reporting systems in accordance with current state regulations and specific provisions in this Circular.

3. Annual funding allocation for projects must be based on the project's progress and the ability to mobilize funds from sponsors for the SP-RCC Program, central government support funds, local government budget funds, and other legally raised funds. Priority should be given to allocating funds for completed and ongoing projects that have secured corresponding funds to ensure compliance with committed schedules.

Projects utilizing SP-RCC Program funds must be integrated with other funds managed by ministries, sectors, and localities (if applicable). The integration of funds must be clearly defined in the state budget estimates and annual development plans of ministries, sectors, and localities in order of priority.

Prior to approving a project, the investment decision-making body must clearly identify the source of funds, the ability to balance funds, and ensure sufficient funding allocation for implementation within the prescribed timeframe.

Chapter II

SPECIFIC PROVISIONS

Article 4. Sources of Capital

1. Capital for projects included in the SP-RCC Program that have been approved by the Prime Minister shall be allocated in the annual state budget estimate.

2. Local government budget capital: Localities (where the projects are located) are responsible for allocating local government budget estimates annually to implement projects under the SP-RCC Program.

3. Other mobilized capital: The mobilization of contributions from organizations, enterprises, and individuals to implement projects under the SP-RCC Program must comply with the provisions of the law, while also integrating with other sources of capital from other Programs and projects to use the budget effectively.

Article 5. Structure of Capital for Implementing Projects Under the SP-RCC Program

1. From the capital of the SP-RCC Program including:

a) Construction costs;

b) Equipment costs;

c) Costs for non-engineering solutions (for afforestation projects);

d) Project management costs;

e) Investment and construction consulting costs.

In cases where the capital of the SP-RCC Program allocated to a project does not cover the above items, the project management agency and the project sponsor shall allocate funds based on the priority order listed above; for remaining items (if insufficient), the project management agency shall be responsible for arranging other sources of capital to ensure the implementation of the project according to the current schedule.

2. From the local government budget and other lawful sources including:

a) Compensation and support costs when the State expropriates land (land clearance costs);

b) Other costs as prescribed.

3. From other mobilized capital: The project approval authority and the project sponsor organize the integration of capital from other Programs and projects; mobilize beneficiaries of the project to contribute resources to implement the aforementioned tasks to ensure the implementation of the project according to the schedule.

Article 6. Establishment, Review, and Approval of Project Lists Under the SP-RCC Program

Based on the guidelines for preparing project proposal descriptions under the SP-RCC Program issued by the Ministry of Natural Resources and Environment, relevant ministries, sectors, and localities prepare project proposals, submit them to the Ministry of Natural Resources and Environment for review, organize inter-ministerial councils to review and determine the list of priority projects as prescribed.

The inter-ministerial council (established pursuant to Decision No. 1719/QĐ-TTg dated October 4, 2011 of the Prime Minister) reviews, examines, and determines the list of priority projects annually, submitting it to the Minister of Natural Resources and Environment for submission to the Ministry of Planning and Investment, the Ministry of Finance for consolidation and submission to the Prime Minister for approval.

After the project list under the SP-RCC Program and the project implementation capital are approved by the Prime Minister, relevant ministries, sectors, and localities organize the establishment, review, and approval of projects in accordance with regulations, sending them to the Ministries of Planning and Investment, Finance, and Natural Resources and Environment for comments.

Within thirty working days from the date of receipt of the decision approving the project, the Ministries of Planning and Investment, Finance, and Natural Resources and Environment shall provide formal written comments so that relevant ministries, sectors, and localities can proceed with implementation.

Article 7. Construction and allocation of plans, management and use, and settlement of funds for the SP-RCC Program

The construction and allocation of plans, management and use, and settlement of funds for the SP-RCC Program shall be carried out in accordance with the provisions of the State Budget Law, current guiding documents, and specific regulations set forth in this Circular.

1. Construction of the SP-RCC Program's budget plan

a) Each year, based on the Prime Minister's directive regarding the construction of the socio-economic development plan and the state budget estimate for the planning year, the list of priority projects approved by the Prime Minister, and the orientation of priority activities of the National Committee on Climate Change, relevant ministries, sectors, and localities shall prepare the state budget estimate for the planning year for projects under the SP-RCC Program and submit them to the Ministries of Planning and Investment, Finance, and Natural Resources and Environment for review and consolidation before July 10.

b) Based on the capital requirements for implementing projects under the SP-RCC Program proposed by relevant ministries, sectors, and localities and the annual state budget balance capacity for the SP-RCC Program, the Ministry of Planning and Investment, in coordination with the Ministry of Finance and the Ministry of Natural Resources and Environment, shall unify the proposed allocation plan for funds for ongoing projects and new projects within the list of priority projects approved by the Prime Minister.

2. Implementation of the plan, payment, and settlement of funds

The allocation, notification, control, payment, and settlement of funds for projects under the SP-RCC Program shall be carried out in accordance with the current national regulations on investment management and construction.

3. Supervision and evaluation of investment

The supervision and evaluation of investment shall be conducted in accordance with Decree No. 113/2009/ND-CP dated December 15, 2009, of the Government on supervision and evaluation of investment and guiding documents.

Article 8. Reporting, inspection, and auditing

1. Reporting: Relevant ministries, sectors, and localities (where there are projects) and project sponsors shall implement the reporting system according to the current regulations stipulated in Decision No. 52/2007/QD-TTg dated April 16, 2007, of the Prime Minister on the Reporting System for the Implementation of the State Capital Investment Plan, Circular No. 05/2007/TT-BKH dated August 9, 2007, of the Ministry of Planning and Investment on the issuance of reporting forms and guidance for implementing Decision No. 52/2007/QD-TTg dated April 16, 2007, and other reports as required by the donors.

The Ministry of Natural Resources and Environment, based on management requirements and those of the donors, shall provide detailed guidance on reporting forms for relevant ministries, sectors, and localities (where there are projects) and project sponsors to follow.

2. Inspection: Regularly or at random, relevant ministries, sectors, and localities (where there are projects) shall organize inspections of project sponsors and contractors participating in project implementation regarding the use of funds and compliance with the state's financial policies and systems.

3. Auditing

Relevant ministries, sectors, and localities (where there are projects) shall direct project sponsors to conduct auditing of final accounts reports for projects according to current regulations.

Chapter III

IMPLEMENTATION

Article 9. Responsibilities of related agencies

1. Ministry of Natural Resources and Environment

a) To take the lead and coordinate with the Ministry of Planning and Investment, the Ministry of Foreign Affairs, and related ministries and sectors in developing the mobilization plan; periodically develop and submit to the Prime Minister for approval the Policy Framework and specific policy actions as a basis for international funding mobilization for the SP-RCC Program; consolidate and evaluate the results of implementing the Policy Framework and report to the Prime Minister, the National Committee on Climate Change, and donors.

b) To take the lead and coordinate with relevant ministries, sectors, and localities in adjusting and supplementing criteria for evaluating priority projects and submitting them to the Prime Minister for approval.

c) Based on the proposals of relevant ministries and sectors, review the results of implementing projects under the SP-RCC Program in the implementation year, coordinate with the Ministries of Planning and Investment and Finance to compile the funding needs for projects in the planning year, and submit them to the competent authority for consideration and decision.

d) To take the lead and coordinate with related agencies in providing donors with the annual budget plan for the SP-RCC Program and detailed funding allocation plans for each project.

e) To take the lead and coordinate with the Ministry of Planning and Investment, the Ministry of Finance, and related ministries and sectors in inspecting and evaluating the implementation of projects under the SP-RCC Program, report to the Prime Minister, the National Committee on Climate Change, and inform donors according to signed agreements (if applicable).

g) To regularly compile and report on the implementation of the SP-RCC Program to the Prime Minister, the National Committee on Climate Change, the Ministry of Planning and Investment, and the Ministry of Finance every six months and annually. Six-month reports should be submitted before August 15, and annual reports should be submitted before April 30 of the following year.

h) To take the lead and coordinate with the Ministry of Planning and Investment and the Ministry of Finance in compiling the results of implementing projects under the SP-RCC Program to report to the Prime Minister, the National Committee on Climate Change, and inform donors according to signed agreements (if applicable).

2. Ministry of Planning and Investment

a) To compile and submit to the Prime Minister for approval the list of projects under the SP-RCC Program based on the proposal of the Ministry of Natural Resources and Environment.

b) To take the lead and coordinate with the Ministry of Finance and the Ministry of Natural Resources and Environment in allocating and notifying the total amount and structure of funds for each project under the SP-RCC Program to relevant ministries, sectors, and localities (including both new and ongoing projects according to the annual budget estimate breakdown).

c) To coordinate with the Ministry of Natural Resources and Environment in inspecting the implementation of projects under the SP-RCC Program.

3. Ministry of Finance

a) To coordinate with the Ministry of Planning and Investment in compiling and submitting to the Prime Minister for approval the list of projects under the SP-RCC Program based on the proposal of the Ministry of Natural Resources and Environment.

b) To take the lead and coordinate with the Ministry of Planning and Investment and the Ministry of Natural Resources and Environment, the permanent agency of the National Committee on Climate Change, to determine the total amount of funds from the SP-RCC Program committed by donors that have been integrated into the state budget to allocate for climate change projects in the annual state budget estimate, and submit it to the Prime Minister for approval.

c) To coordinate with the Ministry of Natural Resources and Environment in inspecting the implementation of projects under the SP-RCC Program.

4. Ministries, sectors, and localities

a) To be responsible for organizing the appraisal and approval of projects in the list of projects approved by the Prime Minister to ensure that the project phases are consistent with the annual determined project implementation funds.

b) Direct the project investors and related units to implement assigned projects in accordance with their intended purposes and effectively in compliance with current regulations and this Circular.

c) For localities, ensure the necessary counterpart funds from the local budget and other sources of mobilized capital to fulfill the disbursement tasks as stipulated in Article 5.

d) Integrate with other programs and projects to effectively implement projects under the SP-RCC Program. Allocate sufficient local capital for projects according to the committed schedule when submitting the list of projects to be invested from SP-RCC funds for approval by the Prime Minister. In cases where sufficient funds are not allocated annually as committed, the central budget will suspend the allocation of support funds for projects from SP-RCC Program funds.

e) Carry out reporting work in accordance with current regulations on investment project reports, and report periodically every six months and annually as guided by the Ministry of Natural Resources and Environment. Six-month reports should be submitted to the Ministry of Natural Resources and Environment before July 15th each year, and annual reports should be submitted before March 15th of the following year.

Article 10. Provisions on implementation

1. This Circular takes effect from April 20, 2013.

2. During implementation, if there are difficulties or obstacles, the relevant ministries, sectors, and localities are requested to promptly reflect them to the Ministry of Natural Resources and Environment, the Ministry of Finance, and the Ministry of Planning and Investment for research and appropriate amendments.