Circular No. 09/2003/TT-BGTVT guiding the preparation of budgets for the management and repair of inland waterway routes

CIRCULAR

Guidelines for preparing budgets for management and maintenance of inland waterways

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 Pursuant to Decision No. 1809/1998/QĐ-BGTVT dated July 19, 1998 of the Ministry of Transport promulgating economic and technical norms for regular maintenance of inland waterways and Circular Joint No. 57/2001/BTC-BGTVT dated July 10, 2001 of the Ministry of Transport and the Ministry of Finance on the regime for managing, allocating, and settling accounts for state budget funds for economic inland waterway activities;

Pursuant to Decree No. 52/1999/NĐ-CP dated July 8, 1999, Decree No. 12/2000/NĐ-CP dated May 5, 2000 of the Government stipulating the Management Regulations for Investment and Construction; Decree No. 07/2003/NĐ-CP dated January 30, 2003 of the Government amending and supplementing certain provisions of the Management Regulations for Investment and Construction issued together with Decree No. 52/1999/NĐ-CP dated July 8, 1999 and Decree No. 12/2000/NĐ-CP dated May 5, 2000 of the Government; and Circulars of the Ministry of Construction guiding the preparation and management of construction project costs and other costs of basic construction projects;

Pursuant to Document No. 153/LĐTBXH-TL dated January 17, 2000 of the Ministry of Labor, Invalids and Social Affairs regarding the supplementation of mid-shift meal allowance for workers and officials engaged in inland waterway management;

After receiving the agreement of the Ministry of Construction at Document No. 1821/BXD-VKT dated October 11, 2001 on the unified method of preparing budgets for management and regular maintenance of inland waterways; Document No. 1868/BXD-VKT dated October 18, 2001 supplementing prices for specialized machinery for inland waterways; and the agreement of the Ministry of Finance at Document No. 7540/TC-HCSN dated July 10, 2002;

To strengthen cost management for management and maintenance of inland waterways, the Ministry of Transport hereby provides guidelines for preparing budgets for management and maintenance of inland waterways as follows:

Chapter I. CLASSIFICATION OF WORKS FOR MAINTENANCE OF INLAND WATERWAYS

1. Regular maintenance of inland waterways, including: - Management and regular maintenance of inland waterways; - Surveying and monitoring changes for inland waterway management; - Minor repairs of buoys, signals, equipment, houses, and river course improvement works along the managed inland waterway route.

2. Irregular maintenance of inland waterways, including: - Dredging channels; - Major repairs of embankment systems, river course improvement works, light towers; - Major repairs, renovation, and upgrading of section houses, stations, means of transport, and equipment; - Procurement of means of transport, equipment, information, signaling, and communication systems; - Salvaging and removing obstacles from the riverbed.

3. Other types of inland waterway maintenance: Including emergency repairs to restore traffic following natural disasters or other causes to ensure traffic flow, and other works listed in Section 1.3 Part II of Circular Joint No. 57/2001/TTLT/BTC-BGTVT dated July 10, 2001 of the Ministry of Finance and the Ministry of Transport. This circular specifically guides the preparation of budgets for two types of maintenance works: regular and irregular maintenance of inland waterways. Other works shall be applied appropriately according to current state policies and regulations.

Chapter II. CONTENT OF EXPENSE ITEMS IN THE BUDGET

1. Works for regular maintenance of inland waterways:

1.1 Direct expenses:

1.1.1 Material costs (MC): including main materials, auxiliary materials, and circulating materials calculated based on material prices issued by central provinces and cities and adjustment documents for regional prices up to the project site. Material and equipment prices are enterprise production, trading, and import prices with full legal status and consistent with market prices at the time of purchase. For materials and equipment under state price control, the unit prices are based on those set by competent state authorities. In cases where materials are not included in the price notification, the project owner and units tasked with preparing the budget shall base their calculations on legitimate invoices and documents in accordance with the Ministry of Finance's regulations and consistent with market prices at the time of purchase. The quantity of materials and equipment is calculated based on the norms issued together with Decision No. 1809/QĐ-BGTVT dated July 19, 1998 of the Ministry of Transport.

1.1.2 Labor costs (LC): including basic wages according to Wage Scale A6 - Group II issued together with Decree No. 26/CP dated May 23, 1993 of the Government and additional allowances according to current state regulations. Labor norms apply the norms issued together with Decision No. 1809/1998/QĐ-BGTVT dated July 19, 1998 of the Ministry of Transport. For survey work monitoring changes serving channel management, labor costs apply the wage rate of level 4 as in regular maintenance work of inland waterways, and labor costs for travel to and from the site are calculated based on actual conditions.

1.1.3 Machinery operation costs (MO): machine shift rates are calculated based on the machinery rate table in Decision No. 1260/1998/QĐ-BXD dated November 28, 1998 of the Ministry of Construction. For specialized machinery (not listed in the machinery rate table in Decision No. 1260/1998/QĐ-BXD or listed but not suitable), the machinery shift rates apply the machinery rate table in Document No. 1868/BXD-VKT dated October 18, 2001 of the Ministry of Construction. For public institutions directly assigned tasks, machinery shift rates must deduct basic depreciation and major repair depreciation. For state-owned enterprises engaged in public services directly assigned tasks or contracted by the project owner, machinery shift rates are fully calculated based on current machinery shift rates. Survey machinery costs for detailed topographic surveys in the budget for survey work monitoring changes serving channel management are not included in machinery shift rates. Machinery and equipment usage norms for measurement purposes are calculated based on the norms issued together with Decision No. 1809/1998/QĐ-BGTVT dated July 19, 1998 of the Ministry of Transport.

1.2 Common expenses (CE): Common expenses are calculated at 64% of labor costs according to Document No. 1821/BXD-VKT dated October 11, 2001 of the Ministry of Construction.

1. 3. Pre-tax income (TL): - For public service units: calculated at 5.6% of total direct costs and common costs. - For state-owned enterprises engaged in public services: calculated at 6% of total direct costs and common costs. In the work of surveying common costs and pre-tax income to be included in the cost of a unit, follow the guidance provided in Circular 07/2000/TT-BXD dated July 12, 2000 of the Ministry of Construction.

1. 4. Value Added Tax (VAT): - For public service units: apply Document No. 1821/BXD-VKT dated October 11, 2001 of the Ministry of Construction. - For state-owned enterprises engaged in public services: apply current documents.

1. 5. Mid-shift meal expenses: - Management segments of inland waterways and traffic inspectors shall enjoy mid-shift meal expenses from the state budget funds according to Document No. 153/LĐTBXH-TL dated January 17, 2000 of the Ministry of Labor, Invalids and Social Affairs. - The amount for mid-shift meals: calculated based on actual number of people but not exceeding the approved establishment quota. - Mid-shift meal expenses shall be allocated into the annual economic inland waterway management budget for maintenance and regular repair works of the unit. Summary table of the budget for management, maintenance, and regular repair of inland waterways and traffic regulation to ensure safe inland waterway transportation for economic public service units (Annex 1).

A) State-owned enterprises engaged in public services (Annex 1)

B) Summary table of the budget for surveying and monitoring changes to serve management of inland waterways for economic public service units (Annex 2)

2. Non-regular maintenance work on inland waterways:

2. 1. Dredging channels to ensure inland waterway transportation:

2. 1.1. Direct costs: Calculated by multiplying the dredged volume (WNV) with the dredging unit price (Gnv) and site coefficient. The dredging unit price and site coefficient shall apply current documents of the Ministry of Transport. In cases where dredging is carried out using means, equipment, and conditions that do not conform to the scope of application of the dredging cost schedule for hydraulic projects issued by the Ministry of Transport, a separate estimate must be prepared according to current regulations.

2. 1.2. Other costs (K):

a. Supervision costs, project management board costs, design review costs: applied according to current documents of the Ministry of Construction and the Ministry of Finance.

b. Route design costs, preliminary plan preparation costs: calculated as a percentage of the construction installation budget value as stipulated by the Ministry of Construction. (For public service units implementing these tasks themselves, costs under points a and b above shall not be counted).

Chapter C. Costs for surveying and mapping work: calculated based on the approved survey area and the current unit price for surveying work.

Chapter D. Costs for ensuring safe inland waterway transportation during dredging: calculated at 1% of direct costs. In urgent cases requiring the establishment of traffic control posts to ensure safety, a separate file shall be prepared and estimated as traffic control work in regular maintenance and repair of inland waterways. . d. For dredge disposal sites requiring compensation for crops, land clearance, and embankment construction for dumping purposes, a separate estimate file shall be prepared according to current state policies and then consolidated into the dredging channel maintenance budget. g. Costs for moving construction equipment and machinery from the nearest location to the main site, including towing fees or self-moving costs of construction equipment, as well as waiting costs before commencement of work. (Summary table of dredging channel maintenance budgets for inland waterway transportation according to Annex 3 attached to this Circular).

2. 2. New construction and major repairs of watercraft The preparation of estimates for new construction, major repairs of watercraft, and related costs shall be carried out according to the guidelines of Circular No. 05/1996/TT-LB dated January 29, 1996 of the Ministry of Finance - Government Price Control Board and current state regulations. - Survey and preliminary plan preparation costs for repairs calculated at 1% of workshop costs. - Design costs for new watercraft construction applied according to Decision No. 25/VGCP-CVĐT-DV dated September 1, 1994 of the Chairman of the Government Price Control Board. - Value Added Tax: applied according to Circular No. 122/2000/TT-BTC dated December 29, 2000 of the Ministry of Finance. - Registration fee for new watercraft construction: + Not included in the summary estimate table. + This fee is borne by the owner of the watercraft and supplemented into the cost of the watercraft. (Summary table of estimates for new construction and major repairs of watercraft according to Annexes 4 and 5 attached to this Circular).

2. 3. Other works: Major repairs of retaining walls, river improvement works, signaling systems; major repairs, renovation, and upgrading of station houses, facilities, equipment; salvage and removal of obstacles from riverbeds; production and installation of signaling devices... shall be carried out according to the guidelines of Circular No. 09/2000/TT-BXD dated July 17, 2000 of the Ministry of Construction based on the basic construction cost norms issued together with Decision No. 1242/1998/QĐ-BXD dated November 25, 1998, and the repair work cost norms in basic construction issued together with Decision No. 29/2000/QĐ-BXD dated November 25, 2000 of the Minister of Construction; specialized norms issued by the Ministry of Transport; construction prices issued by provinces and centrally administered cities. Adjustments to the construction installation budget according to price fluctuations shall be based on the guidance documents of the Ministry of Construction. (Summary table of estimates for other works according to Annex 6 attached to this Circular).

Chapter III. IMPLEMENTATION

1. This Circular takes effect from January 1, 2003. All previous guiding documents for preparing and calculating budgets for regular and non-regular maintenance works on inland waterways that conflict with this Circular are abolished.

2. The list of cost items in the budget for regular and non-regular maintenance works on inland waterways as detailed in the attached annexes.

3. Any laws, regulations, and norms mentioned in this Circular will be replaced by new documents if they change.

4. During the implementation process, if there are any unsuitable points that need to be amended or supplemented, the units shall report to the Ministry of Transport for appropriate modification.