Joint Circular No. 03/TT-LB guiding the management, allocation, and settlement of large-scale bridge and road repair funds.

CIRCULAR

JOINT DECREE OF THE MINISTRIES OF FINANCE AND TRANSPORT

GUIDELINES FOR MANAGEMENT REGIMES,

DISTRIBUTION AND PAYMENT OF CAPITAL FOR MAJOR BRIDGE AND ROAD REPAIRS

To meet economic management requirements and reform the organization of road management, on December 26, 1991, the Joint Ministries of Finance and Transport issued Circular No. 78-TT/LB to establish and guide the management and distribution regimes for regular maintenance capital for roads.

Now, the Joint Ministries of Finance and Transport establish and guide the management, distribution, and settlement of capital for major bridge repairs as follows:

2. Individuals who have registered as the principal investigator of a Research Project or Pilot Production Project and those participating in its implementation shall not participate in the Evaluation and Selection Council for that Research Project or Pilot Production Project (hereinafter referred to as the Council). In necessary cases, members of the Council may be staff members of the organization registering as the principal investigator of the Research Project or Pilot Production Project, but not more than one person and they cannot serve as Chairperson, Vice-Chairperson, or reviewing member.

1. Major bridge repair work (overhaul) is similar to basic construction work, so the management, distribution, and settlement procedures adopt the investment capital management system for basic construction.

Medium repair work on roads is closely linked with regular maintenance but has relatively clear work volumes carried out by road sections and sub-districts, thus the management and distribution capital regime is applied according to the provisions of Circular No. 78-TT/LB dated December 26, 1991 of the Joint Ministries. The Ministry of Transport will provide specific guidance on payment procedures for this work after obtaining the agreement of the Ministry of Finance. The contents of management in this circular only apply to major road repair work.

2. Capital for major bridge and road repairs is provided by the state budget:

- National highways are funded by the central government budget.

- Provincial and city roads are funded by local budgets.

3. The financial authority distributes capital for major bridge and road repairs through the State Treasury system.

II. ESTABLISHING THE CAPITAL PLAN FOR MAJOR ROAD REPAIRS

Annually, in accordance with the schedule for planning progress, the Department of Transport (referred to collectively as the project owner); based on the condition of bridges and roads and the need for major repairs; based on current economic and technical norms, plans the capital expenditure for major bridge and road repairs, and sends it to the Ministry of Transport (for national highways) and the People's Committee of provinces and cities (for provincial roads and urban areas) for review.

The Ministry of Transport compiles the plan and submits it to the State for approval, while also sending it to the Ministry of Finance. After receiving the State's approval and notification of the budget capital, the Ministry of Transport will approve and notify the project owners of the plan indicators for implementation, and simultaneously send them to the Ministry of Finance for the Ministry of Finance to send to the relevant Treasury Sub-Councils as the basis for distributing and settling the capital for bridge and road repairs.

The conditions for the preparation and review of plans by project owners and supervising authorities are as follows:

- Project owners must report on the implementation of the plan regarding volume, quality, and effectiveness of investment capital for the year to serve as the basis for the next year's planning.

- Each project included in the plan for major repair expenditures must have an economic-technical proposal, estimate or budget, physical indicators, and value that correspond to the approved budget value at the time of plan formulation.

- For supervising authorities when reviewing and allocating plans to project owners, the volume and value of the plan must correspond to the capital already allocated by the State in the annual budget plan.

III. DISTRIBUTION AND SETTLEMENT OF CAPITAL FOR MAJOR ROAD REPAIRS

1. Capital for major road repairs is distributed through the State Treasury system via payment orders.

2. Major bridge and road repair work is managed and distributed, and payments are made based on completed volumes. Units undertaking major repair work are contracting enterprises (Party B), while the tendering units are project owners (Party A). Therefore, the distribution and settlement procedures follow the contract, price list, and completion acceptance certificate. Treasury Sub-Councils will distribute funds to project owners to settle completed volumes within and outside the province/city as per assigned tasks.

3. Distribution Organization.

The Ministry of Finance will issue payment orders to the State Treasury Bureau (for central roads) and the Department of Finance will issue payment orders to the State Treasury Bureau (for local roads) monthly according to the plan.

Upon receipt of the finance department's notification of distribution, the Ministry of Transport and the Department of Transport will prepare allocation tables requesting distribution to project owners to settle projects with planned and settled procedures; the requested amount must match the payment order amount. The supervising authority will submit the allocation table to the financial management department for review and opinion, which will be sent to the State Treasury to process the transfer of funds to project owners.

Project owners have the right to request the State Treasury to pay the construction units for major road repair projects upon having all necessary bases such as economic contracts, approved plans and budgets, completion certificates, and payment lists. Payment amounts are limited to the notified payment order amount.

IV. REPORTING AND SETTLING CAPITAL FOR MAJOR BRIDGE AND ROAD REPAIRS

1. For capital management agencies:

Treasury Sub-Councils are responsible for managing, distributing, and settling capital for major bridge and road repairs in accordance with the above regulations, quarterly and annually, they will compile and settle the capital usage situation and report to the State Treasury Bureau (for centrally allocated capital) to serve as the basis for compiling and reporting to the Ministry of Finance.

2. For capital using agencies:

Road Management Zones and Departments of Transport are responsible for implementing the reporting and settlement system according to the state accounting and statistics organization regulations.

The reporting and settlement system is implemented according to the current reporting and settlement system for major road repairs (settlement by Party A).

- Time for submitting settlements:

+ The quarterly settlement shall be submitted within fifteen days after the end of the quarter.

+ The annual settlement shall be submitted within forty-five days after the end of the year.

- Place of submission for settlement:

The highway management zones and Departments of Transport must submit to the Ministry of Transport and the State Treasury Management Agency (for central government budget funds), while the Departments of Transport must also submit to the local treasury agency and the Department of Finance (for local government budget funds).

The Ministry of Transport or the Department of Transport shall consolidate the settlement on large-scale road repair capital and submit it to the Ministry of Finance, the State Treasury Management Agency, and the Department of Finance (for local capital).

V. IMPLEMENTATION PROVISIONS

This Circular takes effect from January 1, 1993; previous regulations concerning the management, allocation, and settlement of large-scale road repair capital that conflict with this Circular are hereby abolished. During implementation, if any difficulties arise, they should be reported to the two Ministries for study and appropriate amendments and supplements.