Circular No. 09/2009/TT-BXD detailing the implementation of certain contents of Government Decree No. 88/2007/NĐ-CP dated May 28, 2007 on urban and industrial zone drainage.

CIRCULAR

Providing detailed implementation of certain contents of Decree No. 88/2007/NĐ-CP dated May 28, 2007 of the Government on urban drainage and industrial zones

28/5/2007 of the Government on urban and industrial zone drainage

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Pursuant to Decree No. 17/2008/NĐ-CP dated February 4, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Construction;

Pursuant to Decree No. 88/2007/NĐ-CP dated May 28, 2007 of the Government on urban drainage and industrial zones,

The Ministry of Construction provides detailed implementation of certain contents of Decree No. 88/2007/NĐ-CP dated May 28, 2007 of the Government on urban drainage and industrial zones (hereinafter referred to as Decree No. 88/2007/NĐ-CP) as follows:

Article 1. Application of wastewater discharge standards as provided for in Clause 2, Article 6 of Decree No. 88/2007/NĐ-CP

Wastewater other than domestic sewage discharged into the drainage system must meet the wastewater discharge standards into the drainage system. In cases where such standards are not met, preliminary treatment must be carried out to meet the standards before discharging into the drainage system. While the Ministry of Construction has not issued wastewater discharge standards into the drainage system, the temporary application of column C of environmental standard TCVN 5945:2005 for industrial wastewater - discharge standards issued by the Ministry of Natural Resources and Environment shall apply.

Article 2. Determination and assignment of the project investor according to the provisions of Article 22 of Decree No. 88/2007/NĐ-CP

1. For investment projects for drainage works currently under construction where the assignment of the project investor does not comply with the provisions of Article 22 of Decree No. 88/2007/NĐ-CP, continue implementing until completion and handover to the owner which is the People's Committee of the city or immediately change the project investor according to the provisions of Article 22 of Decree No. 88/2007/NĐ-CP. Whether to change the project investor or not shall be decided by the Provincial People's Committee based on the actual implementation of the project and specific conditions of the locality to ensure that it does not affect the progress and quality of construction.

2. For investment projects for drainage works that are currently or have already implemented preparatory steps but have not yet organized bidding for construction, the project investor must be re-determined in compliance with the provisions of Article 22 of Decree No. 88/2007/NĐ-CP.

3. In cases where international commitments signed by Vietnam differ from the provisions of Article 22 of Decree No. 88/2007/NĐ-CP, before deciding to change the project investor, the Provincial People's Committee must consult and reach agreement with the international financier. If the financier disagrees, the project shall continue to be implemented according to the signed international commitment until completion and handover to the owner which is the People's Committee of the city.

4. For centrally-administered cities, the City People's Committee may delegate specialized agencies under its jurisdiction to act as the project investor.

5. Organizations assigned to develop infrastructure in new urban areas are the project investors for drainage works within their management area. After completing the project, these organizations must transfer ownership of the drainage works to the People's Committee of the city.

Article 3. Soliciting agreement of the Ministry of Construction as provided for in Clause 3, Article 26 of Decree No. 88/2007/NĐ-CP

For investment projects for drainage works with centralized characteristics, solving basic issues of stormwater drainage, collection and treatment of wastewater for cities of category 4 and above, during the review process, the agency responsible for reviewing the project must submit the project documents along with relevant files to solicit written agreement from the Ministry of Construction before submitting to the competent authority for approval.

Article 4. On management and operation contracts as stipulated in Article 28 of Decree 88/2007/NĐ-CP

1. People's Committees of cities shall be responsible for providing drainage services to the community and shall be the owners of the drainage system but shall not directly carry out the work of managing and operating the drainage system, instead entrusting such tasks to specialized units with sufficient capacity through management and operation contracts. The People's Committees of cities shall only manage according to objectives, supervise, support implementation, and ensure payment to the contractor managing and operating the system.

2. The owner of the drainage system shall engage consulting organizations or utilize subordinate specialized agencies to collaborate with drainage units in drafting the draft management and operation contract to serve as the basis for negotiation between both parties.

3. The basic contents of the management and operation contract shall be implemented in accordance with the provisions of Article 28 of Decree 88/2007/NĐ-CP and shall be detailed in Appendix 1 of this Circular. Depending on the nature, characteristics, and scale of the city, depending on whether the urban drainage network structure is common or separate for stormwater and wastewater, and whether there is currently a centralized wastewater treatment plant or not, the management and operation contract will be considered and examined on a case-by-case basis. Based on the guidance provided in Appendix 1 of this Circular, localities shall establish specific contracts suitable for their actual conditions to implement.

Article 5. Connection of individual drainage systems to the drainage system as stipulated in Article 41 of Decree 88/2007/NĐ-CP

1. When implementing new construction projects for drainage systems or expanding the coverage area of existing systems, the People's Committees of cities shall issue decisions regarding the connection of individual drainage systems to the centralized drainage system within the project scope. The content of the decision must clearly state the obligations and rights of the relevant parties, specify the service area for connections, and define the connection timeframe. The connection decision must be notified to the community within the project scope.

2. Drainage units shall provide written data on the location, elevation, and technical requirements of the connection points for individual drainage systems to the drainage system.

3. The construction of connection points must be carried out by drainage units or by contractors under the supervision of drainage units. Construction of connections must comply with design specifications. After completion of the connection, there must be a completion inspection record.

Article 6. Exemption from connecting individual drainage systems to the drainage system as stipulated in Clause 1, Article 45 of Decree 88/2007/NĐ-CP

1. Individual drainage systems within the service area of the centralized drainage system that wish to be exempted from connection and discharge directly into the environment must submit an application to the environmental management agency at the local level.

2. The environmental management agency at the local level shall organize inspections of wastewater quality and discharge methods; if they meet the legal regulations on environmental protection, it shall issue a written approval to the exempted individual drainage system and the drainage unit in the area.

3. The cost of inspecting wastewater quality shall be borne by the individual drainage system.

Article 7. On water drainage service contracts as stipulated in Article 46 of Decree 88/2007/NĐ-CP

1. A water drainage service contract is a document signed between the drainage unit and the drainage household, except for the following subjects:

a) Households using centralized water supply systems and only discharging domestic wastewater into centralized drainage systems.

b) Other drainage households using centralized water supply systems with similar scale and quality of wastewater to that of households.

2. The contents of the water drainage service contract must reflect basic information about the drainage household, connection details for building customer databases, facilitating management; clearly defining the rights and obligations of both parties involved in the contract; conditions regarding service quality, drainage fees, payment methods; conditions regarding wastewater quality and volume discharged into the drainage system; relevant legal provisions on drainage concerning the drainage unit and the drainage household. Based on the guidance in Appendix 2 of this Circular, taking into account actual conditions, the drainage unit shall develop a model drainage service contract suitable for application in its area.

3. Encourage organizations and individuals who are owners, managers, and users of large and complex works to hire drainage units to manage and operate stormwater drainage systems and treat localized wastewater within their own management boundaries, and include this content in the drainage service contract.

Article 8. Distinguishing and applying drainage fees under Decree 88/2007/NĐ-CP and environmental protection fees for wastewater under Decree 67/2003/NĐ-CP of the Government on environmental protection fees for wastewater and Decree 04/2007/NĐ-CP amending and supplementing certain articles of Decree 67/2007/NĐ-CP

1. The drainage fee prescribed in Clause 1, Article 48 of Decree 88/2007/NĐ-CP is an environmental protection fee for wastewater and applies to households discharging wastewater into centralized drainage systems of urban areas and industrial zones. Contents related to drainage fees such as establishment, adjustment, collection, and utilization of revenue from drainage fees are regulated in Articles 48 to 58 of Decree 88/2007/NĐ-CP.

2. Households discharging wastewater directly into the environment without discharging it into centralized drainage systems of urban areas and industrial zones shall apply the environmental protection fee for wastewater under Decree 67/2003/NĐ-CP and Decree 04/2007/NĐ-CP.

3. Households that have paid drainage fees under Decree 88/2007/NĐ-CP shall not be required to pay the environmental protection fee for wastewater under Decree 67/2003/NĐ-CP and Decree 04/2007/NĐ-CP.

Article 9. Establishing and submitting plans for drainage fees as stipulated in Clause 1, Article 55 of Decree 88/2007/NĐ-CP

1. The drainage unit is responsible for organizing the establishment and submission of drainage fee plans based on the provisions from Article 49 to 54 of Decree 88/2007/NĐ-CP.

2. The explanation of the drainage fee plan must reflect the following contents:

a) Evaluation of water usage and wastewater discharge in the area:

- Water usage by different groups of people;

- Clean water prices and the price increase schedule;

- Water usage from centralized water supply systems and non-centralized water supply systems;

- Evaluation of wastewater discharge volumes according to different types of wastewater and different drainage households.

b) Evaluation of demand and capacity for investment in developing drainage systems in the area.

c) Explanation of management and operation costs in each phase corresponding to drainage development investments and service quality improvement.

d) Forecast of revenue from drainage fees at different percentages relative to clean water prices, calculated based on three cost recovery levels as follows:

- Recovering all management and operation costs;

- Recovering all management and operation costs and costs of equipment invested from owner capital;

- Covering all management and operation costs, equipment investment costs, and construction costs of projects invested from owner capital.

đ) Assessment and forecast of economic and social development levels, living standards, and household incomes in the drainage area currently and projected for the next five years, including predictions about changes in living standards, inflation rates over a specific period, and residents' payment capabilities at different times. The assessment of residents' payment capabilities is based on:

- A payment ratio of 2% to 3% of monthly average income is appropriate;

- If the payment ratio exceeds 3% but is approved by more than 70% of the community, it can still be applied.

e) Balancing management and operation costs, loan repayment costs for investment (if any), with drainage fee revenues, and the owner's budget subsidy capability to propose specific fee levels and fee adjustment schedules. Prepare a proposed drainage fee calculation table corresponding to cost recovery levels and budget subsidy requirements.

f) Drainage fee adjustment schedule: anticipate adjustment points for drainage fees based on investment levels, service quality improvement capabilities, and local conditions, with drainage fees reviewed and adjusted at least every two years.

Article 10. Effective Date

This Circular is uniformly applicable nationwide and takes effect from July 14, 2009. During implementation, if there are any difficulties, please promptly report them to the Ministry of Construction for research and resolution.