Circular No. 04/2006/TT-BTNMT guiding the method for calculating budget unit prices and preparing budgets for expenses to establish and adjust land use plans and plans from state budget sources.

CIRCULAR

Guidelines for calculating unit prices and preparing budgets for expenses in planning and adjusting land use plans

implementing the preparation and adjustment of land use plans

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Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government on the implementation of the State Budget Law;

Pursuant to Decree No. 18/2004/NĐ-CP dated October 29, 2004 of the Government on the implementation of the Land Law 2003;

Pursuant to Decision No. 04/2005/QĐ-BTNMT dated June 30, 2005 of the Minister of Natural Resources and Environment on the issuance of the Procedures for the Preparation and Adjustment of Land Use Plans;

Pursuant to Decision No. 10/2005/QĐ-BTNMT dated October 24, 2005 of the Minister of Natural Resources and Environment on the issuance of Economic and Technical Standards for the Preparation and Adjustment of Land Use Plans;

After receiving the unified opinions of the Ministry of Finance in Circular No. 4758/BTC-HCSN dated April 10, 2006 and the Ministry of Planning and Investment in Circular No. 2983/BKH-KHGDTN&MT dated April 26, 2006, the Ministry of Natural Resources and Environment issues guidelines for calculating unit prices and preparing budgets for expenses in the preparation and adjustment of land use plans as follows:

I. GENERAL PROVISIONS

1. These Circular applies to the calculation of unit prices and the preparation of budgets for expenses in the preparation and adjustment of land use plans at all levels from state budget sources.

2. The budget for expenses in the preparation and adjustment of land use plans includes all cost items (costs within the unit price and costs outside the unit price) necessary to complete the tasks according to the Procedures for the Preparation and Adjustment of Land Use Plans issued by the Ministry of Natural Resources and Environment under Decision No. 04/2005/QĐ-BTNMT dated June 30, 2005.

3. Costs within the unit price are determined based on the estimated unit price and scale of area for the entire country or adjusted according to the coefficients specified in the standards; the estimated unit price is calculated based on the Economic and Technical Standards for the Preparation and Adjustment of Land Use Plans issued by the Ministry of Natural Resources and Environment under Decision No. 10/2005/QĐ-BTNMT dated October 24, 2005 and the cost structure as stipulated in Point 1, Part II below.

4. Costs outside the unit price are determined as a percentage of the costs within the unit price (as stipulated in Point 2, Part II below) and must be detailed in the budget for approval by the competent authority before implementation; settlement shall be made according to actual expenditure vouchers in accordance with the law.

II. ESTIMATED UNIT PRICE

The estimated unit price includes direct costs and common costs, and is structured as follows:

Estimated Unit Price = Direct Costs (1) + Common Costs (2)

1. Direct Costs are cost items directly constituting the value of the product, including labor costs, material costs, tool and equipment costs, depreciation costs of machinery and equipment, and energy costs.

a) Labor Costs is the value of labor participating directly in the process of implementing land use planning products; calculated specifically as follows:

Where:

b) Material Costs is the value of main materials and auxiliary materials used directly in the process of implementing the product such as paper, pens, ink...; calculated specifically as follows:

- Quantity of materials is determined based on the usage standards for materials issued by the Ministry of Natural Resources and Environment;

- Material unit price is calculated based on the prevailing price in the construction area surveyed by the Ministry of Natural Resources and Environment at the time of preparing the estimated unit price for the national and regional land use planning and adjustment; the prevailing market price in the local area confirmed by the Provincial Department of Finance (or surveyed and announced by the Provincial Department of Finance) at the time of preparing the estimated unit price for provincial, district, and commune-level land use planning and adjustment.

c) Tool and Equipment Costs is the value of tools and equipment used directly in the process of implementing the product such as safety gear, tables, chairs, technical tools...; calculated specifically as follows:

Where:

- Tool and equipment unit price is calculated based on the prevailing price in the construction area surveyed by the Ministry of Natural Resources and Environment at the time of preparing the estimated unit price for the national and regional land use planning and adjustment; the prevailing market price in the local area confirmed by the Provincial Department of Finance (or surveyed and announced by the Provincial Department of Finance) at the time of preparing the estimated unit price for provincial, district, and commune-level land use planning and adjustment.

- Number of usage periods and service life of tools and equipment according to the standards of the Ministry of Natural Resources and Environment.

d) Depreciation Costs of Machinery and Equipment (for enterprises implementing) is the wear and tear of machinery and equipment used in the process of implementing the product, determined based on the list of machines, number of machine usage periods according to standard, and depreciation rate per machine usage period; calculated specifically as follows:

Where:

Number of machine usage periods per year: Off-site equipment 250 periods

On-site equipment 400 periods

Number of years of use for each type of equipment:

- The original cost of equipment is calculated based on the prevailing price on the construction site as surveyed by the Ministry of Natural Resources and Environment at the time of establishing and adjusting the national land use planning and plan; the prevailing price on the local market confirmed by the Provincial Department of Finance (or announced by the Provincial Department of Finance after surveying) at the time of establishing and adjusting the provincial, district, and commune-level land use planning and plans.

e) Energy costs are the expenses for using energy or fuel for machinery and equipment during the execution of work, calculated according to the formula:

2. Common Costs

These are general costs of the unit directly implementing such as: salary costs and other salary-related items (social insurance, health insurance, trade union fees) for management staff; costs for electricity, water, telephone, gasoline, travel expenses, office supplies, tools and equipment for management staff; repair costs for equipment, tools, and equipment for public institutions (or depreciation costs of fixed assets serving management for enterprises); conference costs for deploying and summarizing work, troop transfer costs, accommodation rental costs for construction forces, product acceptance and handover costs, and other management-related costs associated with product implementation. These costs are determined as a percentage of direct costs, specified for each specific type of work as follows:

III. COSTS OUTSIDE THE UNIT PRICE

1. Contents of costs outside the unit price

1.1. Costs for surveying, preparing, reviewing, and approving projects: including costs for investigation and survey work, collecting necessary information, documents, data, and maps to serve project preparation; building the project; seminars; reviewing, accepting, and approving the project.

1.2. Costs for reviewing and approving products of land use planning and plan preparation and adjustment.

a) Costs for reviewing and approving products of nationwide land use planning and plan preparation and adjustment.

- Costs for copying files and products of nationwide land use planning and plan preparation and adjustment, costs for soliciting opinions and holding review meetings of subordinate units under the Ministry of Natural Resources and Environment; relevant Ministries and sectors; the Government; Committees of the National Assembly and the Standing Committee of the National Assembly.

- Costs for travel expenses and gasoline for inspecting and accepting products, reviewing and approving product files of central management agencies.

- Costs for revising files and products after review meetings.

- Copying files and products to submit to the National Assembly.

- Costs for printing and copying files and products (including paper copies and digital versions), submitted as required.

b) Costs for reviewing and approving products of regional land use planning and plan preparation.

- Costs for copying files and products of regional land use planning and plan preparation, costs for soliciting opinions and holding review meetings of subordinate units under the Ministry of Natural Resources and Environment; relevant localities; relevant Ministries and sectors and the Government.

- Costs for travel expenses and gasoline for inspecting and accepting products, reviewing and approving product files of central management agencies.

- Costs for revising files and products after review meetings.

- Copying files and products to submit to the Government.

- Costs for copying files and products (including paper copies and digital versions), submitted as required.

c) Costs for reviewing and approving products of provincial land use planning and plan preparation and adjustment include:

- Costs for copying files and products of provincial land use planning and plan preparation and adjustment sent for soliciting opinions.

- Costs for organizing review meetings of departments, bureaus, and sectors within the province and relevant Ministries and sectors, and the Provincial People's Council.

- Costs for revising files and products according to opinions received in the meetings.

- Copying files and products sent back to the Ministry of Natural Resources and Environment for submission to the Government.

- Costs for copying files and products (including paper copies and digital versions), submitted as required.

- Costs for travel expenses and gasoline for inspecting and accepting products, reviewing and approving product files of provincial management agencies.

d) Costs for reviewing and approving products of district land use planning and plan preparation and adjustment:

- Costs for copying files and products of district land use planning and plan preparation and adjustment sent for soliciting opinions.

- Costs for organizing review meetings of departments, bureaus, and sectors within the district and the District People's Council.

- Costs for revising files and products according to opinions received.

- Copying files and products sent back to the Provincial Department of Natural Resources and Environment for submission to the Provincial People's Committee.

- Costs for copying files and products (including paper copies and digital versions), submitted as required.

- Costs for travel expenses and gasoline for inspecting and accepting products, reviewing and approving product files of district management agencies.

e) Costs for reviewing and approving detailed land use planning and plan preparation and adjustment at the commune level.

- Costs for copying files and products of detailed land use planning and plan preparation and adjustment at the commune level, costs for soliciting opinions, costs for organizing review meetings, approved by the Commune People's Council or the District People's Council for wards, towns, and communes within urban development areas.

- Costs for revising files and products after review meetings.

- Copying files and products sent back to the District People's Committee or the Provincial People's Committee for wards, towns, and communes within urban development areas.

- Costs for copying files and products (including paper copies and digital versions), submitted as required.

- Costs for travel expenses and gasoline for inspecting and accepting products, reviewing and approving product files of commune management agencies.

1.3. Costs for announcing and adjusting land use planning and plan.

a) Announcing nationwide and regional land use planning and plan

Copying files and products of land use planning and plan for public announcement at the Ministry of Natural Resources and Environment; publishing in the Official Gazette and on the State Management Information Network of the Ministry of Natural Resources and Environment and the Government; excerpted in a central daily newspaper.

b) Announcing provincial land use planning and plan

Copying files and products of land use planning and plan for public announcement at the Provincial Department of Natural Resources and Environment, on the provincial State Management Information Network; excerpted in a local newspaper.

c) Announce the land use planning and land use plan at the district level.

Make copies of the product files of the land use planning and land use plan to publicly announce at the Department of Natural Resources and Environment, on the provincial or centrally governed city's state management information network, and publish in local newspapers.

d) Announce the land use planning and land use plan at the commune level.

Make copies of the detailed land use planning and detailed land use plan product files to publicly announce at the People's Committee office of the commune.

1.4. Management costs for projects establishing and adjusting land use planning and land use plans shall be guaranteed from the construction investment capital.

Project management costs include all necessary expenses for the investor to manage throughout the project investment process, including: office supplies, travel expenses, fuel and transportation services for inspection and supervision activities carried out by the investor (Project Management Board), and expenses for settlement and finalization of project funds, and other related management costs.

2. Levels of costs outside unit prices

The maximum level is determined according to the percentage ratio on the specific cost within the unit price as follows:

2.1. Establishing and adjusting national land use planning and land use plans

2.2. Establishing regional land use planning

2.3. Establishing and adjusting provincial land use planning and land use plans

a) Establishing provincial land use planning and land use plans

b) Adjusting provincial land use planning and land use plans

c) Establishing provincial land use plans

2.4. Establishing and adjusting county-level land use planning and land use plans

a) Establishing county-level land use planning and land use plans

b) Adjusting county-level land use planning and land use plans

c) Establishing county-level land use plans

2.5. Establishing and adjusting commune-level land use planning and land use plans

a) Establishing detailed initial period land use planning and land use plans at the commune level

b) Adjusting detailed final period land use planning and land use plans at the commune level

c) Establishing detailed final period land use plans at the commune level

In cases where project costs within the unit price fall within the range defined in the tables above, they will be calculated using interpolation methods.

Example: For the project "establishing detailed final period land use plans at the commune level" of a commune (ward, town) with unit price costs of 23 million VND, the costs outside the unit price will be determined as follows:

IV. ESTABLISHING BUDGET PROJECTIONS

- Based on natural, economic, and social conditions (area scale, population density, number of subordinate administrative units, type of urban area, average GDP per capita, economic growth rate, etc.) of the area requiring establishment and adjustment of land use planning and land use plans, the unit price issued, and the aforementioned levels of costs outside the unit price, the budget projection unit prepares the project budget and submits it for approval by the competent authority.

- Detailed budget preparation method according to Appendix Enterprises importing tobacco raw materials and cigarette paper for producing tobacco products for export or processing tobacco products for export shall submit registration applications according to Form

V. IMPLEMENTATION

1. Subordinate units establish budget unit prices for establishing and adjusting national and regional land use planning and land use plans and submit them to the Ministry of Natural Resources and Environment for issuance after obtaining written agreement from the Ministry of Finance; Provincial Departments of Natural Resources and Environment establish budget unit prices for establishing and adjusting provincial, county, and commune-level land use planning and land use plans and submit them to the provincial People's Committees for issuance.

2. This Circular takes effect 15 days after its publication in the Official Gazette.

3. During implementation, if there are difficulties or obstacles, they should be reported to the Ministry of Natural Resources and Environment for consideration and resolution./.