Circular No. 06/1998/TT-BNN-TCCB guiding the organization and operation of water conservancy works exploitation companies

CIRCULAR

Guidelines on the organization and operation of water conservancy works exploitation companies

Implementing the Ordinance on the Exploitation and Protection of Water Conservancy Works dated August 31, 1994; Decree No. 50/CP dated August 28, 1996 of the Government on the establishment, restructuring, dissolution, and bankruptcy of state-owned enterprises operating public services; Decree No. 56/CP dated October 2, 1996 of the Government on state-owned enterprises operating public services; implementing Circular No. 14/LDTBXH-TT dated April 10, 1997 of the Ministry of Labor, War Invalids and Social Affairs (at Clause 2, Section V) guiding the method for establishing labor norms for state-owned enterprises; to strengthen organizational management and exploitation of water conservancy works to better serve production, society, and people's livelihood. The Ministry of Agriculture and Rural Development hereby provides guidelines on the organization and operation of water conservancy works exploitation companies as follows:

I – GENERAL PROVISIONS

1- Content of the management and exploitation of water conservancy works

Water conservancy works and systems of water conservancy works are understood as Article 2 of the Ordinance on the Exploitation and Protection of Water Conservancy Works, divided into three main types of systems as follows:

- Electric pump system, oil pump system, hydraulic wheel system (irrigation and drainage by power)

- Reservoir, dam, sluice gate, canal system (irrigation and drainage by gravity)

- Combined reservoir, dam, sluice gate, canal system with pumps (irrigation and drainage by gravity combined with power);

Management and exploitation of water conservancy works include three main contents as follows:

- Management of works

- Water management

- Economic management

These three contents are closely related and influence each other, requiring an appropriate organizational structure to manage the assigned tasks and effectively implement all three contents to enhance service efficiency for production, society, and people's livelihood.

2 – Requirements for the management and exploitation of water conservancy works

a – Manage, operate, repair works, and regulate water according to technical procedures to ensure safety of works, timely and efficiently serve production, society, and people's livelihood;

b – Utilize capital, assets, and all resources allocated to complete the task of exploiting water conservancy works and utilize works, machinery, equipment, labor, technology, land, scenery, and mobilize capital to organize additional business activities without affecting the exploitation task and in accordance with legal regulations. Implement accounting based on water conservancy fees collected, economic and technical standards approved, and legal provisions.

3 – Name, type, and category of water conservancy works exploitation enterprises

a – State-owned enterprises operating in the field of exploitation and protection of water conservancy works shall be named Water Conservancy Works Exploitation Company (abbreviated as Water Conservancy Works Exploitation Company) as stipulated in Article 10 of the Ordinance on the Exploitation and Protection of Water Conservancy Works.

b – Water Conservancy Works Exploitation Companies are determined as state-owned enterprises and state-owned enterprises operating public services according to Decree No. 50/CP dated August 28, 1996 and Decree No. 56/CP dated October 2, 1996 of the Government.

c – Water Conservancy Works Exploitation Companies are classified according to the complexity in managing water conservancy works exploitation and production efficiency as guided by Circular No. 01 – TT/TN dated January 20, 1994 of the Ministry of Water Resources (now the Ministry of Agriculture and Rural Development).

4 – Tasks and rights of water conservancy works exploitation companies.

a – Water Conservancy Works Exploitation Companies have tasks as stipulated in Article 15 of the Ordinance on the Exploitation and Protection of Water Conservancy Works:

- Balance distribution of water fairly, ensuring requirements for serving production; maintain clean water sources, protect ecological environment;

- Implement planning, plans, and economic-technical feasibility studies of water conservancy works systems that have been approved by competent state authorities;

- Be the principal investor in repairing, supplementing, and completing water conservancy works systems;

- Maintain the capacity of works, ensuring the safety and long-term use of water conservancy works;

- Supplement and perfect reservoir regulation procedures, individual work operation procedures; develop system operation procedures to submit to competent authorities for approval and implementation;

- Monitor, detect, and promptly address incidents; inspect and repair works before and after the rainy season;

- Sign and implement contracts on exploitation and protection of works; compensate users for water damage according to Clause 5, Article 17 of this Ordinance; comply with state financial regulations;

- Monitor and record income data as prescribed; research, summarize, and apply scientific and technological advancements to the exploitation and protection of water conservancy works.

b – Water Conservancy Works Exploitation Companies have rights as stipulated in Article 16 of the Ordinance on the Exploitation and Protection of Water Conservancy Works:

- Operate works in the system according to technical procedures; exploit works comprehensively;

- Collect water conservancy fees according to contracts;

- Propose competent authorities to provide financial support according to Article 11 of this Ordinance to ensure operation and development of the system;

- Propose the Management Council of the system to mobilize water users to contribute labor for repairing and maintaining water conservancy works according to legal provisions;

- Require local People's Committees where the system is located to take necessary measures to ensure the safety of works in case of potential incidents;

- Propose local People's Committees or request the People's Court to resolve cases where water users intentionally fail to pay sufficient water conservancy fees.

5 – Principles of organization of Water Conservancy Works Exploitation Companies

The establishment of management structures of Water Conservancy Works Exploitation Companies must comply with general principles of organizing state-owned enterprises, while respecting the following principles:

a – Combine industry-based management with local and territorial-based management, ensuring the unity of the water conservancy works system, while promoting the leadership role of all levels of government in the management of water conservancy works exploitation.

b – Organize the Waterworks Construction and Operation Company according to the scale and scope of the system of works and must strengthen the division of management responsibilities for works to localities and water users. The company should focus on managing key works, main canals, and important works with complex technology.

c – The organizational structure should be streamlined, ensuring safe and efficient operation of the works, guaranteeing the completion of assigned tasks.

II – ORGANIZATIONAL STRUCTURE OF THE WATERWORKS CONSTRUCTION COMPANY

A – MODEL OF THE WATERWORKS CONSTRUCTION COMPANY

Based on the current situation of works and management conditions in existing irrigation systems, the Waterworks Construction Company is organized for management according to the following models:

1 – INTERPROVINCIAL AND PROVINCIAL WATERWORKS CONSTRUCTION COMPANY MODEL

1-1 Interprovincial Waterworks Construction Company: This is a company managing the irrigation system for areas covering two provinces or more, including two types:

- Managing key works and main irrigation canals, the remaining parts of the works are delegated to local management.

- Managing the entire system from key works to the household-level canal outlets (as stipulated in the current classification of irrigation works management by the Ministry of Agriculture and Rural Development).

The interprovincial irrigation system is reviewed and decided upon by the Ministry of Agriculture and Rural Development to delegate management to the province benefiting the most, or the Ministry may directly manage it.

1-2 Provincial Waterworks Construction Company: This is a company managing medium and small-scale irrigation systems scattered throughout the province, with reasonable scale and effective operation, under the management of the Department of Agriculture and Rural Development.

1-3 Organizational Structure of the Interprovincial and Provincial Waterworks Construction Companies:

a. Director, Deputy Directors

b. Supporting staff (departments, offices)

- Human Resources, Administrative, and Management Department (referred to as the Organization and Administration Department): Managing organizational work, labor, administrative, and management tasks;

- Water and Works Management Department: Managing and operating water, maintaining and protecting irrigation works;

- Financial Department: Managing financial and accounting work of the company;

- Planning and Technical Department: Managing planning, materials, statistics, system planning, survey, design, and scientific and technical work of the company;

- Electrical and Mechanical Department (organized for systems with many electric pumping stations with a total capacity of 20,000 kW or more): Managing mechanical and electrical equipment within the system managed by the company.

Depending on the scale and volume of management work, and the specific conditions of each Waterworks Construction Company, the number of departments may be organized as above or combined into suitable departments based on the specific conditions of the company (a separate technical department may be established, and the planning section may be combined with the Financial Department into a Planning and Finance Department, referred to as the Economic Department), but not exceeding the number of departments listed above;

- Investment and Construction Project Management Board (referred to as the Project Management Board): Established when the company is assigned investment and construction projects, in accordance with the current regulations of the Government's Basic Construction Regulations. The workforce of this board does not belong to the public service labor quota.

- Internal Audit Team: The company organizes an internal audit team under the director of the company, in accordance with Circular No. 52/TT-BTC dated April 16, 1998, issued by the Ministry of Finance, guiding the organization of internal audit teams at state-owned enterprises.

c. Production and Service Organizations include:

* Public Service Enterprises

+ Affiliated enterprises under the company's accounting include:

- County-level Waterworks Construction Enterprise

- Key Works and Main Canal Waterworks Construction Enterprise

+ Irrigation Management Clusters managing small key works, Clusters managing along canal lines or enclosed regions under the management of the Enterprise.

* The Waterworks Construction Company may organize non-public service business activities according to Article 10 of Decree No. 56/CP dated October 2, 1996, of the Government, including:

- Survey and Design Consulting Enterprise: Organized based on technical capabilities and service demand both inside and outside the system;

- Construction and Installation Enterprise: Organized for companies with high demand for construction and installation services and repairs. For companies with low demand, a Repair Team for works and machinery is organized.

Consulting enterprises, construction and installation enterprises, or repair teams are units with incomplete legal personality, dependent on the company's accounting, provided with facilities, transportation means, machines, and tools for repair at workshops and mobile within the system.

Companies below Class III that do not meet the conditions to organize enterprises or repair teams shall establish a repair group with 6-8 workers from the public service quota to meet urgent repair needs within the system.

- In addition to the units mentioned above, the company may organize other auxiliary businesses such as power generation, tree planting, fish farming, tourism, hotels, etc.

The Waterworks Construction Company is responsible under the law for all activities and commitments of these units.

2 – INTERDISTRICT WATERWORKS CONSTRUCTION COMPANY MODEL

This is a Waterworks Construction Company managing systems covering two districts or more, under the management of the Department of Agriculture and Rural Development. The interdistrict company is organized as follows:

2-1. Director, Deputy Directors

2-2. Supporting staff is organized like the interprovincial and provincial companies, with the number of employees corresponding to the assigned tasks.

2-3. Production Organization

a – For large systems, affiliated enterprises under the company's accounting are organized, with Irrigation Management Clusters under these enterprises. For companies below Class 3, only Irrigation Stations under the company are organized, with Irrigation Management Clusters under these stations; for small systems, Irrigation Management Clusters under the company are organized without Irrigation Stations;

b – Other auxiliary business organization: Implemented according to Article 10 of Decree No. 56/CP dated October 2, 1996, of the Government.

3 – DISTRICT WATERWORKS CONSTRUCTION COMPANY MODEL

The District Waterworks Construction Company manages irrigation systems within the district. The organizational structure includes a Management Board and is organized with no more than four departments like the interdistrict company, but with fewer staffing quotas corresponding to assigned indicators and tasks, and only organizing Irrigation Management Clusters under the company.

The KTCTTL Company, from Class IV, does not establish a management department but sets up director assistance teams in each management field.

The KTCTTL County Company also organizes business and service units outside its public welfare tasks according to Article 10 of Decree 56/CP dated October 2, 1996, issued by the Government.

B – Specific Tasks and Operations of the KTCTTL Company's Organizational Structure are guided in Section I of the attached Appendix.

The KTCTTL Company bases its organizational structure on the general tasks assigned and the specific tasks of each Department and Division to suit the specific conditions of the system of works under its management.

III. STAFFING OF THE KTCTTL COMPANY

1 – Classification of Labor

Labor of the KTCTTL Company includes:

1-1. Direct production labor consists of technical labor, auxiliary labor, and service labor;

1-2. Indirect labor includes managerial labor.

Detailed classification of labor is specified in Section II of the attached Appendix.

2 – Staffing of the KTCTTL Company

2-1. Company Leadership

a – General Director of the Company

b – Deputy General Directors: Companies from Class 3 and above may be staffed with no more than three Deputy General Directors, while companies from Class 4 and below may be staffed with one Deputy General Director.

2-2. Supporting Machinery (Departments and Divisions)

a – Heads of Departments and Divisions: Each Department and Division shall be staffed with one Head and one Deputy Head.

b – Number of Workers in Departments and Divisions

Staffing of Departments and Divisions must ensure the following conditions:

- Based on approved manpower quotas and product output, ensuring completion of assigned tasks and workload;

- Reducing workforce and rationalizing staffing to meet actual needs for work, ensuring effective production support. The number of managerial workers (indirect) must not exceed 15% of the total number of public welfare workers.

2-3. Production Organization

a- Member Waterworks Enterprises: These are dependent accounting units of the Company comprising:

- General Director and Deputy General Director

- Supporting Machinery: Depending on the volume of management work, it should be organized into departments or teams, but the staffing must be streamlined;

b- Irrigation Stations and Main Works Management Stations

Both Stations are direct production units (equivalent to a workshop) consisting of:

- One Station Manager, one Assistant Station Manager assisting the Station Manager in managing irrigation and drainage, or organizing construction and repair of works.

- Station labor includes: 1-2 technical workers operating irrigation and drainage, measuring hydrology, 1-2 technical workers directing construction and repair of works, 1-2 accountants, 1 secretary and utility worker兼任文员、仓库保管员和出纳，1名行政管理人员、管理和服务人员、组织劳动工资。如果需要设计人员，则将部分指标从企业或公司转移到灌溉站。

- Direct production workers are staffed according to approved standards.

c- Irrigation Clusters: These are direct production units (equivalent to a production team) staffed with one Cluster Leader. For irrigation clusters managing 2,000 hectares or more, one Cluster Deputy Leader is arranged. Each cluster is staffed with one technical worker, and if the cluster manages over 2,000 hectares, two technical workers and the number of workers according to approved standards are arranged.

3 – Staffing Standards for Workers

3-1. Staffing of Primary Water Conservancy Workers (abbreviated as WCW). It includes three types:

a- Primary Water Conservancy Workers at Main Works: Arranged based on requirements and approved standards as follows:

- Number of workers and time required to operate reservoirs, sluices, dams, wharves, pumping stations;

- Daily or periodic inspection and monitoring of works including: water level, settlement, displacement, seepage, sedimentation, and activities of organisms affecting the works;

- Maintenance of works, machinery, and equipment: Excavating soil, cutting grass, rearranging stone slopes, handling seepage, landslides, animal burrows, removing aquatic plants obstructing flow, patching cracks and chips with a total volume of up to 2 cubic meters of earth and 0.5 cubic meters of concrete casting, cleaning and sanitizing technology, tightening bolts, greasing machines and equipment, painting against rust;

- Protection of main works;

- Flood prevention, drought relief, and urgent irrigation services within and beyond prescribed times;

- Other management requirements

For small reservoir, sluice, and dam systems, at least two primary WCW and one system WCW must be arranged to manage operations and alternate shifts for protecting works.

b- Staffing of Channel WCW: Also arranged based on the requirements and standards for primary WCW as mentioned above. Operation of main channels, first-level independent channels, or those disputed between localities with irrigation and drainage flows greater than 5 cubic meters per second, and main channels of the primary KTCTTL Company that have been classified down to the second-level channel network managed by localities. The management standard for channel irrigation and drainage works for one channel WCW is as follows:

- ≥ 2 km of channel arranges one channel WCW (for channels requiring maintenance);

- ≥ 6 km of channel arranges one channel WCW (for channels with little maintenance requirement);

c- Staffing of System WCW: Implements the tasks of irrigation clusters as directed in the Appendix.

The technical grade standards for WCW are stipulated in the Decision No. 75-QĐ/TCCB dated August 28, 1995, issued by the Minister of Water Resources (now the Ministry of Agriculture and Rural Development).

The management standard for water conservancy works systems for one system WCW is as follows:

- ≥ 200 hectares of cultivated land irrigated in the delta region;

- ≥ 150 hectares of cultivated land irrigated in the midland and coastal regions;

- ≥ 100 hectares of cultivated land irrigated in mountainous regions;

For independent irrigation or entire irrigation systems below the minimum levels mentioned, depending on the complexity of the terrain and works, one to two system WCW are arranged.

3-2. Staffing of Pump Operators and Maintainers

a- Pump Operators and Maintainers: Have duties according to current regulations on the standards for pump operators.

In addition to the main duties listed above, pump operators must combine the following tasks when not operating pumps:

- Guard duty at the pump station and the main works area;

- Maintenance of works (under the guidance of technical workers);

- Assist WCW in collecting water fees and supplying materials;

- Participate in flood prevention, drought relief, and urgent irrigation services outside regular hours

b- Framework for Pump Operators and Maintainers:

* For large electric pump stations (Pumps of 7,000 cubic meters per hour or more):

- At the central control station, no more than 2 workers shall operate one shift;

- At the pumping station with 1 to 5 pumps, no more than 3 workers shall operate one shift (including 3 workers for stations with multiple pumps and for pump types over 10,000 m³/h);

- At the pumping station with 6 to 12 pumps, no more than 4 workers shall operate one shift (including 4 workers for stations operating multiple pumps and for pump types over 10,000 m³/h);

- For stations with more than 12 pumps, 4 workers shall be arranged and for every additional 3 pumps, 1 additional worker shall operate one shift;

* For small electric pumping stations (pumps under 7,000 m³/h):

- Pumping stations with a central control station shall arrange 1 worker to operate one shift;

- Pumping stations with 1 to 8 pumps ranging from 2,500 to 6,000 m³/h shall arrange no more than 3 workers to operate one shift;

- Stations with more than 8 pumps ranging from 2,500 to 6,000 m³/h shall arrange 3 workers to operate and for every additional 4 pumps, 1 additional worker shall operate one shift;

- Pumping stations with 1 to 10 pumps under 2,500 m³/h shall arrange no more than 2 workers to operate one shift;

- Stations with more than 10 pumps under 2,500 m³/h shall arrange 2 workers to operate and for every additional 5 pumps, 1 additional worker shall operate one shift;

To ensure workplace safety, pumping stations that arrange 1 worker to operate shall mobilize workers within the company or hire an additional auxiliary worker to operate;

3 - 3. The staffing of security forces includes: At the company office, there shall be 1 Team Leader and 1-2 dedicated staff members under the Water Management and Construction Department. At construction sites, they shall be arranged according to necessary requirements and shifts;

- For large irrigation and drainage works of 5,000 hectares or more and important isolated works, dedicated security forces shall be arranged to protect the entire work's safety;

3 - 4. Staffing of the Construction Repair Team, Electrical and Mechanical Team, or Construction Enterprise:

a – The Construction Enterprise shall include: Director, 1-2 Deputy Directors, and organizational structure shall be determined commensurate with assigned tasks, ensuring completion of signed contracts and increasing income for the enterprise;

b – The Construction Repair Team, Electrical and Mechanical Team shall include: Team Leader, 1-2 Deputy Leaders, and the number of laborers in the Team shall also be determined as required for the Construction Enterprise;

4. Requirements for labor mobilization and overtime work

a – To reduce the number of staff, Water Resources and Irrigation Enterprises must mobilize labor from units within the company to support each other and can contract external labor management for maintenance of works during necessary periods;

b – For enterprises that have been delegated works to local management, they shall transfer labor to the local area and reduce staffing accordingly with the quantity of delegated works;

c – To ensure the safety of works and timely service production outside regular duties, during rainy, storm, flood, drought, water supply for irrigation, and equipment failure periods, Water Resources and Irrigation Enterprises must organize necessary labor throughout the company to work overtime (excluding unnecessary indirect labor without specific requirements and elderly workers), not exceeding 4 hours per day. Overtime pay shall be provided according to Article 61 of the Labor Law;

IV- IMPLEMENTATION

1 – Based on this Circular, Provincial Departments of Agriculture and Rural Development shall guide local Water Resources and Irrigation Enterprises to develop complete organizational plans, establish labor standards, and wage rates, and submit them for approval by the People's Committee of the province for implementation. For enterprises under the Ministry's management, the Water Management and Construction Bureau and the Cadre and Personnel Department shall guide enterprises to develop organizational plans, labor standards, and wage rates for submission to the Minister for decision;

2 – Water Resources and Irrigation Enterprises shall base this Circular to develop organizational plans, ensure a lean organizational structure, and submit for review and implementation by the competent authority;

Based on the labor staffing levels and organizational structure of the enterprise guided in this Circular and the method of establishing labor standards and wage rates for State-owned Enterprises as directed in Circular No. 14/LDTBXH-TT dated April 10, 1997 of the Ministry of Labor, Invalids, and Social Affairs, Water Resources and Irrigation Enterprises shall establish labor standards and wage rates for submission to the People's Committee of the province or centrally-administered city, or the Ministry of Agriculture and Rural Development (for enterprises under the Ministry's management) for approval and implementation;

3 – Specialized inspection agencies of the Ministry of Agriculture and Rural Development and provincial Departments of Agriculture and Rural Development shall be responsible for inspecting and supervising the organization of enterprises, implementation of labor standards, staffing levels, and wage rates of Water Resources and Irrigation Enterprises according to their functions, responsibilities, and authorities;

This Circular shall take effect 15 days after its issuance, replacing Circular No. 21-TT/TN dated November 26, 1977 of the Ministry of Water Resources guiding the organization of Water Resource Management Enterprises;

During implementation, provincial Departments of Agriculture and Rural Development and Water Resources and Irrigation Enterprises shall promptly report any issues to the Ministry of Agriculture and Rural Development for research, amendment, and supplementation as appropriate./.