Circular No. 08/2005/TT-BXD guiding certain contents on the preparation, examination, approval of investment construction project plans and handling the transition to implement Decree No. 16/2005/NĐ-CP dated February 7, 2005 of the Government.

CIRCULAR

Guidelines on certain aspects of project establishment, review, approval for construction investment projects and handling transitional implementation of Government Decree No. 16/2005/NĐ-CP

dated February 7, 2005

dated February 7, 2005 of the Government

Pursuant to Decree No. 36/2003/NĐ-CP dated April 4, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Construction;

Pursuant to Government Decree No. 16/2005/NĐ-CP dated February 7, 2005 on management of construction investment projects;

The Ministry of Construction provides guidelines on certain aspects of project establishment, review, approval for construction investment projects and handling transitional implementation from the implementation of the Investment Management and Construction Regulation issued together with Government Decrees No. 52/1999/NĐ-CP, No. 12/2000/NĐ-CP, and No. 07/2003/NĐ-CP (hereinafter referred to as Decree 52/CP, Decree 12/CP, Decree 07/CP) to the implementation of Government Decree No. 16/2005/NĐ-CP dated February 7, 2005 on management of construction investment projects (hereinafter referred to as Decree 16/CP) as follows:

Part I

GUIDELINES ON CERTAIN ASPECTS OF PROJECT ESTABLISHMENT, REVIEW,

APPROVAL FOR CONSTRUCTION INVESTMENT PROJECTS

I. On the preparation of the Investment Report for Construction Projects and Application for Investment Permission as stipulated in Article 4 of Decree 16/CP:

1. The investor shall organize the preparation of the Investment Report for Construction Projects or hire consultants with appropriate qualifications to prepare the Investment Report for Construction Projects and submit it to the competent authority for examination and permission to invest.

2. For national key projects and Group A projects comprising multiple component projects, if each component project can operate independently, in addition to the contents prescribed in Clause 2, Article 4 of Decree 16/CP, the Investment Report for Construction Projects must clearly define the independent operation and exploitation characteristics.

3. For construction projects requiring architectural design competitions, the Investment Report for Construction Projects must specify the form, time, and budget for organizing the competition.

4. Regarding application for investment permission for construction projects as stipulated in Point a, Clause 3, Article 4 of Decree 16/CP, the investor is responsible for submitting the Investment Report for Construction Projects to the relevant ministry. For example, cultural construction projects are submitted to the Ministry of Culture and Information; health care construction projects are submitted to the Ministry of Health; transportation construction projects are submitted to the Ministry of Transport; postal and telecommunications construction projects are submitted to the Ministry of Posts and Telecommunications; etc.

The minimum number of Investment Reports for Construction Projects to be prepared is nine copies.

The relevant ministry is the agency responsible for assisting the Prime Minister in soliciting opinions from related ministries, sectors, and localities regarding the project and compiling evaluations and recommendations to present to the Prime Minister.

In cases where construction investment projects involve multiple specialties, the ministry with decisive factors concerning the nature and objectives of the project is responsible for soliciting opinions from related ministries, sectors, and localities, compiling, evaluating, and recommending opinions to the Prime Minister.

II. On the basis for preparing the basic design in construction investment projects as stipulated in Article 7 of Decree 16/CP:

1. For construction projects that do not require preparation of the Investment Report for Construction Projects but fall under the category of architectural design competitions as stipulated in Clause 1, Article 26 of Decree 16/CP or for construction projects where the investor deems it necessary to hold an architectural design competition, the investor reports to the investment decision-maker for consideration and decision on the competition, its form, duration, and budget.

The architectural design competition is conducted in accordance with Circular No. 05/2005/TT-BXD dated April 12, 2005 of the Minister of Construction guiding architectural design competitions for construction projects.

The selected architectural design proposal serves as the basis for preparing the basic design of the construction investment project.

2. For construction projects that do not require an architectural design competition or have no architectural requirements, the consulting firm chosen to prepare the basic design must base it on the approved design tasks, develop several design proposals for the investor to select the optimal design proposal as the basis for preparing the basic design.

The costs for implementing these design proposals are included in the basic design cost of the project.

III. On the review of construction investment projects as stipulated in Article 9 of Decree 16/CP:

1. The investment decision-maker appoints a specialized unit subordinate to them to organize the review of the project before approval.

2. The investor submits the project dossier (including both the project description and the basic design) to the investment decision-maker for review. For projects decided by the Prime Minister, the investor submits the project dossier to the State Review Council for Investment Projects decided by the Prime Minister for review. For projects using state budget funds decided by the Chairman of the Provincial People's Committee, the investor submits the project dossier to the Department of Planning and Investment for review.

3. For projects decided by the Prime Minister; Group A projects using state budget funds decided by the Minister, Head of a ministry equivalent to a ministry, financial management agencies of the Party, central agencies of political-social organizations, and occupational political-social organizations (collectively referred to as Minister, Head of a ministry equivalent to a ministry), or the Chairman of the Provincial People's Committee, the lead unit reviewing the project sends the project dossier to related ministries, sectors, and localities for their opinions.

4. For construction investment projects of Groups B and C using state budget funds, the project review is carried out as follows:

a) For projects decided by the Minister, Head of a ministry equivalent to a ministry or delegated to a lower-level agency, the specialized unit assigned to organize the project review submits the dossier to the investment decision-maker for examination and decision.

b) For projects decided to be invested in, delegated or分级处理输入的文本以符合长度要求，直接翻译第三段：

5. For projects using other sources of funds, the investor shall organize the project review and approval on their own and bear full responsibility for their decision.

6. The lead unit organizing the project review shall be responsible for submitting the project dossier (including both the project description and the basic design) to the competent authority specified in Article 9 of Decree 16/CP for the review of the basic design in accordance with regulations; at the same time, submit the project dossier to relevant agencies and units to seek opinions on matters related to the project. The report on the review of the basic design shall follow the model set out in Appendix 1 of this Circular.

7. The lead unit reviewing the project shall be responsible for compiling the opinions of relevant agencies and units and the results of the basic design review to evaluate and propose recommendations for the investor to consider and decide upon.

The report on the results of the project investment construction review shall be prepared according to the model set out in Appendix 3 of this Circular.

8. Regarding the authority to review the basic design for Class A projects as stipulated in point a, d, đ Clause 4 Article 9 of Decree 16/CP:

- The Ministry of Industry shall organize the review of the basic design for projects investing in construction of mine tunnels, oil and gas facilities, power plants, transmission lines, substations, and specialized industrial works except for building materials industry works.

- The Ministry of Construction shall organize the review of the basic design for projects investing in construction of civil works, building materials industry works, urban technical infrastructure (including works such as pavements, urban roads, water supply, drainage, lighting, parks, green spaces, urban waste treatment, cemeteries, parking lots within cities), and other projects investing in construction works as required by the Prime Minister.

- For projects investing in construction works related to multiple specialties, if the content of the basic design is closely related to a specific ministry as stipulated in Clause 4 Article 9 of Decree 16/CP, that ministry shall be the lead unit organizing the review of the basic design of the project. The lead ministry for the review of the basic design shall be responsible for seeking opinions from the ministry related to the main technology, other ministries and sectors, and localities related to the content of the basic design review.

9. Regarding the authority to review the basic design for Class B and C projects as stipulated in point a, d, đ Clause 5 Article 9 of Decree 16/CP:

- The Department of Industry shall organize the review of the basic design for projects investing in construction of mine tunnels, oil and gas facilities, power plants, transmission lines, substations, and specialized industrial works except for building materials industry works.

- The Department of Construction shall organize the review of the basic design for projects investing in construction of civil works, building materials industry works, and other projects investing in construction works as required by the Chairman of the Provincial People's Committee.

Specifically, the basic design of urban technical infrastructure works at the local level (including works such as pavements, urban roads, water supply, drainage, lighting, parks, green spaces, urban waste treatment, cemeteries, parking lots within cities) shall be reviewed by the Department of Construction, the Department of Transportation and Public Works, or the Department of Transport, depending on the functions and tasks assigned by the Provincial People's Committee.

- For projects investing in construction works related to multiple specialties, if the content of the basic design is closely related to a specific department as stipulated in Clause 5 Article 9 of Decree 16/CP, that department shall be the lead unit organizing the review of the basic design of the project. The lead department for the review of the basic design shall be responsible for seeking opinions from the department related to the main technology and other departments, bureaus, and sectors related to the content of the basic design review.

- For projects investing in construction works with complex techniques, applying new technologies, high technologies, etc., the department with the authority to review the basic design may report to the Provincial People's Committee to request the corresponding ministry with the authority to review the basic design as stipulated in Clause 4 Article 9 of Decree 16/CP to organize the review of the basic design of the project.

10. The authority reviewing the basic design shall be responsible for sending the results of the basic design review to the lead unit reviewing the project within the time limit specified in Clause 8 Article 9 of Decree 16/CP; at the same time, send one copy to the local Department of Construction where the construction work is located.

The results of the basic design review shall be prepared according to the model set out in Appendix 2 of this Circular.

IV. On the content of the basic design review as stipulated in Article 10 of Decree 16/CP:

The content of the basic design review in projects investing in construction works includes:

1. The compatibility of the basic design with the industry development plan, construction plan. The rationality of land use, route of the works, connection points with technical infrastructure works,...

2. The compatibility of the basic design with the project description regarding the scale of construction, technology, designed capacity, grade of the works; data used in the design; standards applied.

3. The compatibility of the basic design with the architectural scheme selected through a competition for cases involving architectural design competitions.

4. Standards applied in design solutions.

5. The qualifications of the consulting organization and the professional qualifications of individuals preparing the project and the basic design as prescribed.

V. On the preparation, review, and approval of the Economic and Technical Report on Construction Works as stipulated in Article 12 of Decree 16/CP:

1. On the preparation of the Economic and Technical Report on Construction Works:

a) Construction works that do not require a project but only need to prepare an Economic and Technical Report on Construction Works to be submitted for approval by the investor include:

- Construction works for religious purposes;

- New office buildings with a total investment under 3 billion VND;

- Social infrastructure projects with a total investment amount under VND 7 billion using state budget funds not for business purposes, in accordance with socio-economic development plans, urban planning, and having investment proposals or being arranged in the annual investment plan;

- New construction, repair, and renovation projects using state budget funds, in accordance with socio-economic development plans, urban planning, having investment proposals, and clearly demonstrating investment effectiveness, with a total investment amount under VND 5 billion;

- Other construction projects not falling within the above cases, with a total investment amount under VND 5 billion, shall be subject to specific examination and decision by the investment decision-maker on whether to prepare an investment project proposal or an economic and technical report for construction projects, and clarify their effectiveness before making construction investment decisions;

b) The content of the economic and technical report for construction projects shall be established in accordance with Clause 4, Article 35 of the Construction Law;

When preparing construction drawings in the economic and technical report for construction projects, standard designs or typical designs issued by competent state agencies may be used. In cases where there are no standard or typical designs, the design contractor selected by the investor must develop several design options for the investor to choose the optimal option as the basis for implementing the construction drawings;

c) For projects that only establish an economic and technical report for construction projects without construction drawings being reviewed by the Departments specified in Clause 5, Article 9 of Decree 16/CP, the investor must apply for a construction permit in accordance with regulations, except for technical infrastructure projects (including waste treatment plants, landfill sites, water supply, drainage systems, roads, canals, ditches, etc.) with a total investment amount under VND 5 billion located in remote areas, not violating cultural heritage or historical-cultural relic protection zones;

d) For projects involving only the purchase of technology equipment chains without construction but with installation, the construction contractor must prepare construction drawings and installation cost estimates for submission to the investment decision-maker for review and approval. If the installation of equipment changes the structure and architecture of the approved construction project, the investor must apply for a construction permit in accordance with regulations;

2. Regarding the documentation for the economic and technical report for construction projects:

a) The investor is responsible for submitting the documentation for the economic and technical report for construction projects to the investment decision-maker for review and approval;

b) The documentation for the economic and technical report for construction projects submitted for review includes:

- A request for approval of the economic and technical report for construction projects according to the model in Appendix 4 of this Circular;

- The economic and technical report for construction projects including explanations and construction drawings;

- Relevant legal documents;

c) For construction projects using state budget funds with a total investment amount of VND 500 million or more, when submitting the documentation for the economic and technical report for construction projects to the investment decision-maker, the investor simultaneously submits the report to the Department authorized to review basic design as stipulated in Clause 5, Article 9 of Decree 16/CP for review of construction drawings;

A request for review of construction drawings according to the model in Appendix 5 of this Circular;

3. Regarding the organization of review of the economic and technical report for construction projects:

a) For construction projects using state budget funds, the investment decision-maker organizes the review of the economic and technical report for construction projects, and the Department authorized to review basic design as stipulated in Clause 5, Article 9 of Decree 16/CP reviews construction drawings for projects with a total investment amount of VND 500 million or more. The investment decision-maker will approve the economic and technical report for construction projects only after receiving the results of the review of the economic and technical report for construction projects and the review of construction drawings;

b) For construction projects using state budget funds with a total investment amount under VND 500 million or other sources, the investment decision-maker organizes the review of the economic and technical report for construction projects, and the investor organizes the review of construction drawings for approval by the investment decision-maker;

c) The content of the review of the economic and technical report for construction projects is carried out in accordance with the provisions of Clause 4, Article 35 of the Construction Law;

d) The content of the review of construction drawings includes:

- Compliance with construction standards and applicable standards;

- Suitability of construction drawings with the architectural scheme chosen through a competition in cases where an architectural design competition has been held;

- Rationality of design solutions, construction, and safety assessment of the project;

- Rationality of the selection of production lines and equipment (if any);

- Environmental protection; fire prevention and explosion control;

4. The time for reviewing the economic and technical report for construction projects and construction drawings corresponds to the time for reviewing Class C projects;

5. The reviewing agency is responsible for sending the review results to the investor for consolidation and evaluation, proposing opinions for the investment decision-maker to consider and decide;

The review results of construction drawings are established according to the model in Appendix 6 of this Circular;

VI. On the establishment, review, and approval of construction projects using ODA funds:

1. The content of establishing, reviewing, and approving construction projects using ODA funds is implemented in accordance with laws on investment and construction as for projects using state budget funds, supplemented with relevant contents related to ODA funds;

2. The procedures, formalities, authority for review, and approval of projects are implemented in accordance with laws on the management and use of official development assistance. The authority for reviewing basic design of projects and project management are implemented in accordance with the Construction Law and Decree 16/CP.

In cases where international treaties on ODA signed between the State or Government and the donor provide different provisions, such provisions shall be implemented according to the treaty.

Part II

GUIDANCE ON IMPLEMENTING THE TRANSITION FROM IMPLEMENTATION OF DECREE 52/CP,

DECREE 12/CP, DECREE 07/CP TO IMPLEMENTATION OF DECREE 16/CP

I. On the transition to implement project management regulations for construction investment projects under Decree 16/CP:

1. The investor decision-maker is responsible for deciding on the transition to implement project management for construction investment projects under Decree 16/CP, ensuring the following principles:

a) Not interrupting ongoing tasks.

b) Ensuring the consistency and effectiveness of the project.

2. For national key projects that have been approved by the National Assembly for investment and permitted to invest, and construction investment projects in Group A that have been permitted to invest by the Prime Minister before Decree 16/CP took effect, there is no need to prepare an Investment Report for Construction Projects as stipulated in Decree 16/CP. Subsequent tasks shall be carried out in accordance with the provisions of Decree 16/CP.

3. For national key projects and Group A projects that have been submitted to the competent authority for investment permission before Decree 16/CP took effect but have not yet been reviewed and permitted to invest, there is no need to re-submit or prepare reports; the review and permission process will be conducted according to the provisions prior to the effective date of Decree 16/CP. Subsequent tasks shall be carried out in accordance with the provisions of Decree 16/CP.

4. For projects that have been approved, projects currently undergoing review, projects that have been reviewed but not yet approved, and projects that are being implemented but are incomplete, subsequent tasks shall be carried out in accordance with the provisions prior to the effective date of Decree 16/CP.

If it is deemed necessary to implement unfinished tasks in accordance with the provisions of Decree 16/CP, the investor decision-maker shall consider and decide accordingly.

5. For projects that have not yet undergone review, the establishment, review, approval, and management of construction investment projects shall be carried out in accordance with the provisions of Decree 16/CP.

II. On the transition of qualification conditions in construction activities:

1. Qualification conditions for organizations and individuals engaged in construction activities shall be implemented according to the provisions of Decree 16/CP. For localities in remote areas, project management boards, and contractors who do not meet the qualification conditions specified in Decree 16/CP, the project owner shall prepare a report to submit to the investor decision-maker for consideration and handling, and then consolidate and send it to the Ministry of Construction.

2. Individuals engaging in construction activities must hold a professional practice certificate, which shall be implemented according to the Regulation on Issuing Professional Practice Certificates for Construction Supervision issued pursuant to Decision No. 12/2005/QD-BXD dated April 18, 2005, and the Regulation on Issuing Professional Practice Certificates for Architects and Engineers Engaged in Construction Activities issued pursuant to Decision No. 15/2005/QD-BXD dated April 25, 2005, of the Minister of Construction.

This Circular shall take effect fifteen days from the date of publication in the Official Gazette. Any issues encountered during implementation should be reported to the Ministry of Construction for examination and resolution./.