Circular No. 102/2004/TT-BTC guides the management of rental fees and the payment of repair costs for the infrastructure of Cai Lan wharf structures.

CIRCULAR

Guidelines for managing rental fees and payment of repair costs

for the infrastructure of Cái Lân port wharf

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 228/2003/QĐ-TTg dated November 6, 2003 of the Government on piloting the leasing and management of the infrastructure of Cái Lân port wharf;

The Ministry of Finance provides guidelines for managing rental fees and payment of repair costs for the infrastructure of Cái Lân port wharf as follows:

I - GENERAL PROVISIONS:

1. The subjects to which this Circular applies are the lessor (Vietnam Maritime Administration), the lessee (Quảng Ninh Port) and other organizations and individuals related to the management and exploitation of the infrastructure of Cái Lân port wharf.

2. Scope of regulation: This Circular stipulates the management of rental fees for the infrastructure of Cái Lân port wharf and the payment of repair costs for the infrastructure of Cái Lân port wharf (hereinafter referred to as leased assets) carried out by Vietnam Maritime Administration in accordance with Article 6 of Decision No. 228/2003/QĐ-TTg; it also stipulates the determination of losses of leased assets.

3. The leased infrastructure of Cái Lân port wharf includes all assets specified in Article 3 of Decision No. 228/2003/QĐ-TTg, including: Wharf No. 5, Wharf No. 6, Wharf No. 7, the water area in front of the port, offices, warehouses, workshops, electrical and water systems, and internal roads within the port.

4. Vietnam Maritime Administration represents the owner of the leased assets. The operating expenses of Vietnam Maritime Administration are allocated from the State Budget in the annual budget of the Ministry of Transport, including the operating expenses for managing the infrastructure of Cái Lân port wharf.

5. Sources of repair funds for leased assets:

The source of funds for repairing leased assets for which the lessor is responsible shall be guaranteed by the State Budget.

II - SPECIFIC PROVISIONS:

1. Management of rental fees for the infrastructure of Cái Lân port wharf:

Rental income from the infrastructure of Cái Lân port wharf is a revenue of the State Budget. Vietnam Maritime Administration shall open an account at the Treasury to monitor and manage rental fees paid by the lessee to be remitted to the State Budget.

Periodically, the lessor has the responsibility to urge the lessee to pay the full rental fees for the infrastructure of Cái Lân port wharf according to the time and rental price stipulated in the lease management and operation contract for the infrastructure of Cái Lân port wharf.

2. Provisions on repair of leased assets according to the responsibility of the lessor:

2.1. The lessor shall only carry out repairs of leased assets in the following cases:

Emergency repairs of damage to leased assets caused by force majeure or hidden defects such as natural disasters or damage due to technical issues during the construction process.

Carrying out other work to repair and rectify damage to leased assets where the cause is not due to the fault of the lessee, except for the cases specified in point d, point d, Clause 2, Article 7 of Decision No. 228/2003/QĐ-TTg.

In case the asset is damaged due to the fault of a third party in the lease contract, the lessee shall be responsible for repairing the asset.

2.2. Losses of leased assets:

When an incident occurs causing damage to leased assets, both the lessee and the lessor must prepare a record as follows:

 Determine the cause and extent of the loss of the asset.

 Determine the responsibility of the relevant collective and individual, and the extent of compensation (if any).

If the loss falls under the responsibility of the lessor to repair, based on the extent of the loss of the asset, Vietnam Maritime Administration will develop a plan and estimate for remediation and repair, and decide or submit to the competent authority for decision in accordance with laws on investment and construction.

2.3. When carrying out repairs of leased assets, Vietnam Maritime Administration has the responsibility to hire units that meet the conditions for construction and repair.

The process of preparing estimates and repairing assets must comply with regulations on basic construction investment.

After completing the repair work, Vietnam Maritime Administration will settle accounts for the project in accordance with current regulations.

3. Payment of repair costs:

The Ministry of Finance will make payments for repair costs of the infrastructure of Cái Lân port wharf based on the actual amount settled.

In cases where the repair project requires advance funding before completion, upon request from Vietnam Maritime Administration, the Ministry of Finance will provide advance funding equal to 50% of the estimated amount; after the project is settled, the actual expenditure will be reimbursed.

Documents for allocating repair funds include:

A letter requesting allocation of repair funds from Vietnam Maritime Administration.

An approved budget estimate for repair costs.

Settlement documents for completed projects (for projects already settled).

Based on the application for allocation of repair funds from Vietnam Maritime Administration, the Ministry of Finance (Enterprise Financial Department) will issue "payment orders" to the Treasury to allocate advance funding from the next year's state budget for basic construction investment of the Ministry of Transport to pay Vietnam Maritime Administration, while informing the Ministry of Transport to aggregate the next year's state budget estimate.

Upon receipt of the competent authority's decision on the next year's budget estimate of the Ministry of Transport, the Ministry of Finance will recover the advance funding in accordance with the Law on State Budget.

4. Preparation, implementation, and settlement of funds:

The preparation, implementation, and settlement of funds for managing and repairing the infrastructure of Cái Lân port wharf shall be carried out in accordance with Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance guiding the implementation of Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget. Specifically:

Annually, Vietnam Maritime Administration is responsible for preparing a report on the settlement of state budget funds used for repairing the infrastructure of Cái Lân port wharf in accordance with regulations.

The Ministry of Transport, in collaboration with the Ministry of Finance (Enterprise Financial Department), will organize inspections and approve the settlement of repair costs for the infrastructure of Cái Lân port wharf.

III - IMPLEMENTATION:

This Circular takes effect fifteen days after its publication in the Official Gazette.

During the implementation process, if there are difficulties, Vietnam Maritime Administration and related units should reflect them to the Ministry of Finance for research and appropriate amendments and supplements./.