Joint Circular No. 09/2016/TTLT-BGTVT-BTC guides the valuation method and management of prices for public goods products and services in the national railway management and maintenance sector implemented through ordering and plan allocation using central government budget funds.

JOINT CIRCULAR

Guidelines for pricing methods and price management of public goods and services in the national railway management and maintenance sector,implemented through procurement orders and plans funded by the central government budget,The Minister of Transport and the Minister of Finance shall issue a joint circular to guide

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Pursuant to the Railway Law No. 35/2005/QH11 dated June 14, 2005;

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003, promulgated by the Government detailing and guiding the implementation of the Law on State Budget;

Based on Decree No. 130/2013/NĐ-CP dated October 16, 2013 of the Government on production and supply of public goods and services;

Pursuant to Decree No. 149/2016/NĐ-CP dated November 11, 2016 of the Government amending and supplementing certain provisions of Decree No. 177/2013/NĐ-CP dated November 14, 2013 of the Government detailing and guiding the implementation of certain provisions of the Law on Prices;

||| The Minister of Transport and the Minister of Finance jointly issue this Circular guiding the valuation methods and price management of public goods and services in the field of inland waterway management and maintenance carried out under the government procurement method using central budget funds.

Pursuant to the Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government stipulating the functions, powers, and organizational structure of the Ministry of Finance;

the pricing methods method of valuation and price management of public goods and services in the national railway management and maintenance sector implemented through procurement orders and plans using central government budget funds.

Article 1. Scope of Regulation

This Circular guides the pricing methods and price management of public goods and services in the national railway management and maintenance sector implemented through procurement orders and plans using central government budget funds as stipulated in Government Decree No. 130/2013/NĐ-CP dated October 16, 2013 on the production and supply of public goods and services.

Article 2. Applicability

Article 1. This Circular applies to agencies, organizations, and enterprises related to the production and supply of public goods and services in the national railway management and maintenance sector implemented through procurement orders and plans using central government budget funds.

Article 2. Agencies, organizations, and individuals not covered under Clause 1 of this Article may apply the provisions of this Circular to prepare tender packages while complying with the legal regulations on bidding when tendering for regular maintenance services of railway infrastructure. For periodic repair works of railway infrastructure, they must follow the regulations of the Ministry of Construction on basic construction investment management.

Article 3. Principles for Determining Prices

The prices of public goods and services in the national railway management and maintenance sector must be determined to ensure:

Point 1. Covering actual reasonable and legitimate costs to complete a unit volume of public goods and services specified in national railway management and maintenance.

Point 2. Compliance with technical and economic standards set by competent state authorities and the technical condition of each project or specific work item.

Point 3. Suitability with market conditions at the construction site and the quantity and quality of products and services.

Point 4. Excluding from the price of products and services any costs already guaranteed by the State budget.

||| a) Raw material, fuel costs;

Article 4. Pricing structure for public goods and services in the national railway management and maintenance sector used for procurement orders and plans for units to implement according to the guidelines in Appendix No. 01 attached to this Circular includes:

||| c) Machinery, equipment, and construction vehicle costs;

||| d) Other direct costs;

Item c) Equipment, machinery, and vehicle costs;

||| e) Pre-tax income;

||| g) Value-added tax.

||| 2. The method for determining the price of public goods and services in the field of inland waterway management and maintenance carried out under the government procurement method as stipulated in Clause 1 of this Article shall be guided by Appendix No. 02 attached to this Circular.

||| 3. Any other related costs (if any) shall be implemented in accordance with Article 5 of this Circular.

Article 5. Pricing method for public goods and services in the national railway management and maintenance sector as mentioned above shall be carried out according to the guidelines in Appendix No. 02 issued together with this Circular.

Article 5. Costs outside the unit price of public goods and services

Point 1. Other costs in maintenance work

Monitoring, inspection, testing, review, audit, project feasibility study consultancy, design consultancy, supervision consultancy, auditing, final account settlement, and other consultancy costs (if required or necessary) for public goods and services in the national railway management and maintenance sector shall be calculated separately for each specific task and applied according to the regulations of the Ministry of Construction and the Ministry of Finance for basic construction investment projects.

Point 2. Project management costs

Project management costs: These are costs for the management work of the entity assigned the task of managing procurement orders and plans for public goods and services in the national railway management and maintenance sector. This cost is determined as a percentage (%) of the total annual state budget allocated for railway maintenance funding. This percentage is applied according to the project management cost standard set by the Ministry of Construction for basic construction investment projects.

Article 6. Utilization of Economic Norms - technical

The establishment of prices for public goods and services in the national railway management and maintenance sector must utilize the economic and technical norms issued by competent authorities.

Article 7. Pricing Authority

Costs outside the unit price, unit price, or product and service prices in the national railway management and maintenance sector implemented through state orders and plans for central budget usage shall be decided by the Ministry of Transport.

Article 8. Time of Price Determination

1. The determination of product and service prices shall be carried out after the state budget expenditure forecast for orders and plans for central budget usage has been assigned by the Ministry of Finance to the Ministry of Transport.

2. The period for reviewing and determining prices shall be conducted in accordance with the provisions of Clause 2, Article 9 of Decree No. 177/2013/ND-CP dated November 14, 2013, of the Government detailing and guiding the implementation of certain provisions of the Price Law and subsequent amendments and supplements (if any).

Article 9. Adjustment of Contract Prices; Subsidy Levels for Production and Supply of Public Goods and Services

The adjustment of contract prices; subsidy levels for production and supply of public goods and services under the procurement method shall be carried out in accordance with current laws.

Article 10. Inspection of Implementation of Price Management Regulations

1. The inspection of compliance with regulations on price management for public goods and services in the national railway management and maintenance sector shall be carried out in accordance with this Circular and relevant current laws.

2. Organizations and individuals who violate the provisions of this Circular shall be subject to administrative penalties or criminal prosecution, depending on the nature and severity of the violation, and shall be required to compensate for damages in accordance with the law if damage occurs.

3. The authority to impose penalties, procedures, and processes for penalties shall be carried out in accordance with the law on handling administrative violations.

Article 11. Rights and Responsibilities of Agencies and Units

1. The Ministry of Transport

a) Directing and guiding units and functional agencies to establish and manage prices according to their authority as stipulated in this Circular and related legal documents.

b) Issuing economic and technical norms within their authority; technical standards and specifications in the national railway management and maintenance sector as a basis for establishing prices.

c) Inspecting the implementation of public goods and service prices in the national railway management and maintenance sector in accordance with this Circular and other relevant legal provisions.

2. Ministry of Finance

a) Cooperating with the Ministry of Transport in managing prices in accordance with this Circular and related legal documents.

b) Allocating funds from the central budget annually to provide public goods and services in the national railway management and maintenance sector in accordance with the law.

c) Cooperating with the Ministry of Transport and related agencies to organize inspections and checks or to take the lead in organizing inspections and checks within their authority regarding the implementation of public goods prices in the national railway management and maintenance sector in accordance with this Circular and other relevant legal provisions.

Article 12. Implementation Organization

1. This Circular takes effect from July 1, 2016, replacing Joint Circular No. 76/TTLT-BTC-BGTVT dated June 6, 2011, of the Ministry of Finance and the Ministry of Transport on guidelines for establishing and managing prices for public goods and services in the national railway management and maintenance sector implemented through state orders and plans for state budget funding.

2. In case of difficulties during implementation, agencies and units are requested to report to the Ministry of Transport, which will take the lead and coordinate with the Ministry of Finance to examine and resolve them./.