Circular No. 05/1999/TT-BKHĐT guiding the management of planning projects.

 

CIRCULAR

Guidelines for Managing Planning Projects 

Pursuant to the Investment and Construction Management Regulations issued together with Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government, the Ministry of Planning and Investment provides specific guidelines on managing planning projects funded by the State Budget as follows:

1. Classification of Planning Projects

Planning projects include:

1.1 Comprehensive planning projects for national economic and social development; inter-provincial regions; provincial and centrally-administered city regions;

1.2 Sectoral development planning projects as prescribed by the Government;

1.3 Construction planning projects including regional construction planning, general urban and rural construction planning, detailed functional area construction planning in urban and rural areas, and specialized construction planning (transportation systems, water supply, power supply, drainage, telecommunications, waste treatment facilities, environmental sanitation...).

2. Funding for Planning Projects

2-1. Funding for planning projects includes funds for investigation, survey, research to prepare, review, and approve planning;

2-2. Planning projects utilizing State Budget funds are balanced within the annual investment plan, including:

- National comprehensive planning projects for economic and social development;

- Comprehensive planning projects for economic and social development in regions (inter-provincial, provincial, centrally-administered city regions) and territorial areas;

- Sectoral development planning projects, including industrial zone system planning and land use planning nationwide;

- Regional construction planning projects, general urban planning, and rural residential area planning;

- Other planning projects as decided by the Prime Minister.

2-3. The following planning projects do not utilize State Budget investment funds for balancing:

- Detailed functional area construction planning projects in urban and rural areas;

- Detailed industrial zone, export processing zone, high-tech park... construction planning projects;

- Detailed new urban area construction planning projects;

- Specialized detailed planning projects to serve the preparation of investment projects.

The funding sources for implementing these plans will be raised from investment projects and included in the cost of implementing investment projects.

3. Hierarchical Management of Planning Project Funds

Funds for preparing planning projects are managed hierarchically as follows:

3.1 Central-level planning projects:

- National comprehensive planning projects for economic and social development;

- Sectoral development planning projects, including industrial zone system planning and land use planning nationwide;

- Regional construction planning projects, general urban and rural construction planning projects, and construction planning projects in key regions as decided by the Prime Minister.

The Ministry of Planning and Investment manages state affairs regarding overall economic and social planning, sectoral development planning, directly implements national comprehensive economic and social development planning projects, inter-provincial region planning projects, key region planning projects, and other planning projects as decided by the Prime Minister.

The Ministry of Construction manages state affairs regarding construction planning, directly implements construction planning projects in key regions, inter-provincial regions, general urban planning projects for cities of the first and second categories; detailed planning projects for some rural residential areas, and other planning projects as decided by the Prime Minister.

Ministries responsible for sectors organize the implementation of sectoral development planning projects and nationwide land use planning projects according to the provisions of the Prime Minister.

3.2 Local-level planning projects:

Provincial People's Committees and Municipal People's Committees under the central government organize the implementation of the following planning projects:

- Comprehensive planning projects for economic and social development at the provincial and municipal levels under the central government;

- Regional construction planning projects within provinces and municipalities under the central government;

- General urban planning projects and detailed urban planning projects for cities of the third, fourth, and fifth categories;

- Land use planning projects within provinces and municipalities under the central government.

Municipal People's Committees of the first and second categories directly implement detailed planning projects according to the hierarchical division of the Prime Minister and the provincial People's Committee.

4. Plan for Establishing Planning Projects Utilizing State Budget Funds:

4.1 Regarding Policy:

- National comprehensive planning projects for economic and social development, regional economic planning, key regional planning, and nationwide industrial zone system planning are researched and proposed by the Ministry of Planning and Investment to the Prime Minister.

- Comprehensive planning projects for economic and social development at the provincial and municipal levels under the central government are researched and proposed by the provincial and municipal People's Committees under the central government to the Prime Minister.

- Inter-provincial regional construction planning projects, key regional construction planning projects, and general urban planning projects for cities of the first and second categories are researched and proposed by the Ministry of Construction to the Prime Minister.

- Sectoral development planning projects (including industrial zone development planning and nationwide land use planning) are researched and proposed by sector ministries to the Prime Minister.

The Prime Minister considers the proposals of ministries, sectors, provinces, and municipalities under the central government, approves the policy, and based on that, ministries, sectors, provinces, and municipalities under the central government direct relevant agencies to develop and approve the outline or tasks of planning projects and detailed budgets.

Other planning projects (except those specified in Clause 4.1 of this Article) are decided on policy by ministries and provinces, municipalities under the central government in accordance with Point 2.2.

4.2 Consolidation and Allocation of Plans

a) Ministries, sectors, and localities base their annual State Budget investment plans on the guidelines provided in Clause 3 of this Circular, propose lists of projects and investment funds for planning work.

b) Based on the annual State Budget funding capacity, the Ministry of Planning and Investment balances the planned funds for planning work of ministries and localities to consolidate and submit to the Prime Minister for decision along with the annual State Budget investment plan.

c) After the National Assembly approves the State Budget plan submitted by the Government, the Prime Minister assigns the investment targets under the State Budget to ministries, sectors, and localities, including the total capital allocated for planning work.

d) Based on the allocated capital, ministries, sectors, provinces, and centrally governed cities shall specifically allocate the capital for each project, register with the Ministry of Planning and Investment, the Ministry of Finance, and the Ministry of Construction for monitoring implementation and disbursing funds.

Planning projects that are included in the plan must be approved by the competent authority regarding the project planning proposal, each project must have a draft, workload, or planning project task and cost estimate approved by the Minister, head of a government agency, or the Chairman of the People's Committee of a province or centrally governed city.

5. Management, disbursement, and settlement of funds for planning projects

5.1. Advance funding:

a) Conditions for advance funding:

Planning projects are eligible for advance funding when they meet the following conditions:

- There is a document from the competent authority approving the project planning proposal or task.

- The budget for planning work has been approved.

- It is included in the planning capital.

- There is an economic contract between the investor and the contractor.

b) Level of advance funding:

The level of advance funding for planning projects is 25% to 50% of the contract value, but not exceeding the annual planning capital of the planning project.

In cases where the annual planning capital is lower than the specified advance funding level, the funding agency will continue to provide advance funding for the contract in the next year until the specified advance funding level is reached.

c) Recovery of advance funding:

Advance funding for planning projects is recovered during each payment settlement for completed planning work according to the principle:

- The recovery period starts from the first payment settlement for completed planning work.

- The amount of advance funding recovered corresponds to the proportion of advance funding in each payment settlement.

Advance funding can be recovered earlier than specified if the investor and contractor agree and request it.

If the advance funding has not been fully recovered and the project is not continued or suspended, the investor must explain to the funding agency about the use of unrecovered advance funding and report to the competent authority for handling.

5.2 Payment of funds for completed planning work:

a) Planning projects are eligible for funding when they meet the following conditions:

- A document from the competent authority approving the planning project task.

- The budget for planning work has been approved.

- A decision from the competent authority establishing the Project Management Board and notifying the person responsible for accounting.

- Detailed planning workload plan for the planning year approved by the competent authority.

- There is an economic contract between the investor and the contractor.

- Completed planning workload meeting the conditions for payment and consistent with the approved budget.

b) The volume of completed planning work eligible for payment is the workload that has been accepted and is consistent with the content of the approved budget and the signed economic contract.

c) To be eligible for payment of funds for completed planning work, the investor must submit the following documents to the funding agency (in addition to initial documents):

- Acceptance record of completed planning workload from the research proposing agency.

- Detailed calculation table of the value of completed workload along with the summary expenditure sheet.

- Other payment vouchers.

Within five working days from receiving complete valid documents, the funding agency will review and disburse funds to the investor, pay the contractor, and recover the previously advanced funds according to the provisions of Clause 5.1 Point c of this Circular.

When the completed planning project has been accepted but not yet approved by the competent authority (no approval decision for the planning scheme), if the economic contract does not specify binding terms, the investor must report to the management agency and the financial authority for full payment to the contractor according to the economic contract.

5.3 Settlement of planning projects at the end of the planning year and completion of the project, the investor is responsible for settling the project according to current financial management regulations.

6. Inspection and reporting on implementation status.

According to their state management functions, the Ministry of Planning and Investment, the Ministry of Finance, and the Ministry of Construction will periodically or randomly inspect the deployment and use of planning capital, propose appropriate measures.

Quarterly, every six months, and annually, the investor is responsible for reporting on project deployment, use, and disbursement to higher-level agencies, ministries, government agencies, provincial and municipal people's committees, which will be summarized in the investment and construction report sent to the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Construction, and the General Statistics Office.

7. Effective date.

This Circular takes effect fifteen days from the date of issuance.

The content of the planning project study, procedures, standards, unit prices, and norms according to the functions stipulated in Article 8 of the Investment and Construction Management Regulations issued together with Decree No. 52/1999/ND-CP, the Ministry of Planning and Investment, and the Ministry of Construction will provide separate guidance.

During implementation, if new issues arise, please reflect them to the Ministry of Planning and Investment for further research and supplementation./.