Circular No. 104/2005/TT-BTC guides the management and settlement of investment capital for the compensation, relocation, and resettlement projects of the Son La Hydropower Project.

CIRCULAR

Guidelines for managing and settling investment capital

for the compensation, relocation, and resettlement project of the Son La Hydropower Project

Pursuant to Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government on the issuance of the Investment Management and Construction Regulation, Decree No. 12/2000/NĐ-CP dated May 5, 2000, and Decree No. 07/2003/NĐ-CP dated January 30, 2003 of the Government on amending and supplementing certain provisions of the Investment Management and Construction Regulation;

Pursuant to Decision No. 182/2003/QĐ-TTg dated September 5, 2003 of the Prime Minister on issuing government bonds for investing in some important transportation and irrigation works of the country;

Pursuant to Decision No. 92/QĐ-TTg dated January 15, 2004 of the Prime Minister on approving the investment project of the Son La Hydropower Plant;

Pursuant to Decision No. 459/QĐ-TTg dated May 12, 2004 of the Prime Minister on issuing regulations on compensation, relocation, and resettlement policies for the Son La Hydropower Project;

Pursuant to Decision No. 1251/QĐ-TTg dated November 23, 2004 of the Prime Minister on amending and supplementing certain provisions of the regulations on compensation, relocation, and resettlement policies for the Son La Hydropower Project attached to Decision No. 459/QĐ-TTg dated May 12, 2004 of the Prime Minister;

Pursuant to Decision No. 196/2004/QĐ-TTg dated November 29, 2004 of the Prime Minister on approving the overall relocation and resettlement planning for the Son La Hydropower Project;

Pursuant to Decision No. 207/2004/QĐ-TTg dated December 11, 2004 of the Prime Minister on issuing management mechanisms and implementation of the Son La Hydropower Project;

Pursuant to Circular No. 973/TTg-NN dated July 14, 2005 of the Prime Minister on implementing measures to accelerate the progress of relocation and resettlement for the Son La Hydropower Project;

Pursuant to Decision No. 1007/QĐ-TTg dated September 22, 2005 of the Prime Minister on allocating investment capital for construction projects serving relocation and resettlement for the Son La Hydropower Project;

The Ministry of Finance provides guidelines for managing and settling investment capital for the compensation, relocation, and resettlement project of the Son La Hydropower Project in three provinces: Son La, Lai Chau, Dien Bien as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

Article 1. Scope and subjects of application This Circular applies to compensation, relocation, and resettlement projects of the Son La Hydropower Project that meet the following conditions:

- Included in the overall relocation and resettlement planning for the Son La Hydropower Project approved by Decision No. 196/2004/QĐ-TTg dated November 29, 2004 of the Prime Minister;

- Within the scope, subject, and time frame applicable to the regulations on compensation, relocation, and resettlement for the Son La Hydropower Project issued with Decision No. 459/QĐ-TTg dated May 12, 2004 of the Prime Minister and subsequent decisions amending, adjusting, and supplementing these regulations by the Prime Minister;

- Within detailed planning for resettlement areas approved by the People's Committees of the provinces of Son La, Lai Chau, and Dien Bien;

- Implemented according to other relevant decisions of competent authorities concerning the execution of the compensation, relocation, and resettlement project of the Son La Hydropower Project.

Article 2. Sources of investment capital for the compensation, relocation, and resettlement project of the Son La Hydropower Project include:

- Capital from Vietnam Electricity Corporation and state budget capital for compensation, relocation, and resettlement;

The amount of capital allocated from the above sources is determined according to Decision No. 92/QĐ-TTg dated January 15, 2004 of the Prime Minister and transferred to the Development Support Fund (an agency assisting Vietnam Electricity Corporation in settling investment capital) to settle the compensation, relocation, and resettlement projects of the Son La Hydropower Project. The Development Support Fund does not charge settlement fees.

These two sources of capital are managed, settled, and finalized according to the current Investment Management and Construction Regulations and the provisions of this Circular.

- Other sources of capital as stipulated in Decision No. 459/QĐ-TTg dated May 12, 2004 of the Prime Minister on issuing regulations on compensation, relocation, and resettlement policies for the Son La Hydropower Project (hereinafter referred to as Decision No. 459/QĐ-TTg) are managed according to the current regulations corresponding to each source of capital.

Article 3. Compensation, relocation, and resettlement projects must ensure all necessary procedures for investment and construction according to the Investment Management and Construction Regulations, be included in the annual investment plan, and have the necessary conditions for capital allocation to be settled according to the provisions of this Circular.

Article 4. The People's Committees of the provinces of Son La, Lai Chau, and Dien Bien are responsible investors who bear responsibility for managing and organizing the execution of compensation, relocation, and resettlement projects in accordance with state policies and investment schedules approved by competent authorities.

The Provincial Project Management Board for Relocation and Resettlement (Provincial Project Management Board), the District Project Management Board for Relocation and Resettlement (District Project Management Board), and specialized Project Management Boards (if any) are responsible for organizing the execution, supervising, and managing projects within the resettlement area planning according to tasks assigned by the Provincial People's Committee.

Article 5. Organizations, households, individuals, and community residents (collectively referred to as households) benefiting from compensation, relocation, and resettlement policies are responsible for using capital for its intended purpose, in accordance with policy, ensuring the quantity and quality of work undertaken by the household.

II. ANNUAL PLAN FORMULATION

Article 1. Formulation and announcement of the annual plan:

- During the preparation of the state budget estimate for the year, based on the construction progress of the Son La Hydropower Plant, the overall relocation and resettlement planning for the Son La Hydropower Project within the province, the implementation status of compensation, relocation, and resettlement, and the compensation, relocation, and resettlement targets and schedule set by the State Steering Committee for the Son La Hydropower Project, the People's Committee of the province directs the Provincial Project Management Board to coordinate with relevant agencies to formulate the annual capital plan for compensation, relocation, and resettlement for the Son La Hydropower Project to be included in the provincial investment plan, submitted to the Provincial People's Council for approval, and sent to the Ministry of Finance, Vietnam Electricity Corporation, the Ministry of Planning and Investment, and the Ministry of Agriculture and Rural Development before July 20 of the previous year according to Appendix 1.

- BASED ON THE DECISION OF THE PRIME MINISTER GRANTING ANNUAL IMPLEMENTATION PLANS FOR THE RESIDENTS' COMPENSATION AND RELOCATION PROJECT OF THE SON LA HYDROPOWER PROJECT, THE PROVINCE PROJECT MANAGEMENT BOARD SHALL DISTRIBUTE THE CAPITAL INVESTMENT PLAN AND SUBMIT IT TO THE PROJECT OWNER (THE PROVINCIAL PEOPLE'S COMMITTEE) FOR APPROVAL, THEN SEND IT TO THE MINISTRY OF FINANCE, THE MINISTRY OF PLANNING AND INVESTMENT, THE MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT, AND VIETNAM ELECTRICITY CORPORATION.

- BASED ON THE GOVERNMENT BOND ISSUANCE PLAN, THE VIETNAM ELECTRICITY CORPORATION CAPITAL PLAN, AND THE DISTRIBUTION PLAN OF THE PROJECT OWNER, THE MINISTRY OF FINANCE SHALL REVIEW AND ANNOUNCE THE CAPITAL PAYMENT PLAN FOR THE RESIDENTS' RELOCATION PROJECT OF THE SON LA HYDROPOWER PROJECT.

THE CONTENT OF THE CAPITAL PAYMENT PLAN INCLUDES THE TOTAL CAPITAL FOR RESIDENTS' COMPENSATION AND RELOCATION IN THE YEAR; THE CAPITAL OF VIETNAM ELECTRICITY CORPORATION AND THE STATE BUDGET CAPITAL SUPPORTED FROM GOVERNMENT BONDS.

THE AMOUNT OF VIETNAM ELECTRICITY CORPORATION CAPITAL AND THE STATE BUDGET CAPITAL IS DETERMINED BY MULTIPLYING THE ANNUAL COMPENSATION AND RELOCATION CAPITAL PLAN BY THE PERCENTAGE OF EACH TYPE OF CAPITAL IN THE TOTAL COMPENSATION AND RELOCATION CAPITAL PLAN FOR THE SON LA HYDROPOWER PROJECT APPROVED BY THE PRIME MINISTER.

- THE DEVELOPMENT SUPPORT FUND SHALL ANNOUNCE THE CAPITAL PAYMENT PLAN TO THE PROVINCIAL DEVELOPMENT SUPPORT FUND BRANCH.

- THE PROVINCIAL PEOPLE'S COMMITTEE SHALL ASSIGN THE PLAN TO THE PROVINCE PROJECT MANAGEMENT BOARD, DISTRICTS, AND SPECIALIZED SECTIONS (IF ANY).

THE PROVINCE PROJECT MANAGEMENT BOARD, DISTRICTS, AND SPECIALIZED SECTIONS (IF ANY) SHALL REGISTER THE DETAIL INVESTMENT PLAN WITH THE PROVINCIAL DEVELOPMENT SUPPORT FUND BRANCH AS THE BASIS FOR CAPITAL PAYMENT.

2. PLAN ADJUSTMENTS:

IF THE IMPLEMENTATION PROGRESS AND ACTUAL CAPITAL NEEDS OF THE PROJECT DIFFER FROM THE INITIAL YEAR PLAN, THE PROVINCIAL PEOPLE'S COMMITTEE SHALL PREPARE AND SUBMIT THE ADJUSTED CAPITAL INVESTMENT PLAN TO THE MINISTRY OF FINANCE, THE MINISTRY OF PLANNING AND INVESTMENT, AND VIETNAM ELECTRICITY CORPORATION FOR THE MINISTRY OF FINANCE AND VIETNAM ELECTRICITY CORPORATION TO ADJUST THE CAPITAL RAISING PLAN. THE PLAN ADJUSTMENT SHALL NOT DELAY THE RESIDENTS' RELOCATION SCHEDULE OR IMPACT THE CONSTRUCTION SCHEDULE OF THE SON LA HYDROPOWER PLANT ALREADY APPROVED BY THE AUTHORIZED BODY.

THE CAPITAL INVESTMENT PLAN ADJUSTMENT TIME IS IN AUGUST OF EACH YEAR.

IF THE ENTIRE CAPITAL INVESTMENT PLAN ARRANGED FOR THE YEAR IS NOT COMPLETED, IT MAY BE TRANSFERRED TO THE NEXT YEAR FOR CONTINUOUS IMPLEMENTATION UNTIL THE END OF THE PROJECT.

III. CAPITAL TRANSFERS

1. BASED ON THE QUARTERLY DISTRIBUTION PLAN, IMPLEMENTATION PROGRESS, AND CAPITAL PAYMENT OF THE PROVINCES, THE DEVELOPMENT SUPPORT FUND SHALL ISSUE A LETTER REQUESTING CAPITAL TRANSFERS TO THE MINISTRY OF FINANCE AND VIETNAM ELECTRICITY CORPORATION ACCORDING TO ANNEX 5.

2. PROCEDURE FOR CAPITAL TRANSFERS:

- THE MINISTRY OF FINANCE SHALL TRANSFER CAPITAL TO THE DEVELOPMENT SUPPORT FUND FROM THE GOVERNMENT BOND DEPOSITS AT THE NATIONAL TREASURY.

- VIETNAM ELECTRICITY CORPORATION SHALL TRANSFER CAPITAL INTO THE DEVELOPMENT SUPPORT FUND ACCOUNT.

- THE DEVELOPMENT SUPPORT FUND SHALL TRANSFER CAPITAL TO THE PROVINCIAL DEVELOPMENT SUPPORT FUND BRANCHES AND SIMULTANEOUSLY NOTIFY THE PROJECT OWNER (THE PROVINCE PROJECT MANAGEMENT BOARD) AND THE PROVINCIAL FINANCE DEPARTMENTS TO MONITOR THE FUNDS TRANSFERRED.

3. THE AMOUNT OF CAPITAL TRANSFERRED IN EACH INSTANCE BY VIETNAM ELECTRICITY CORPORATION AND THE MINISTRY OF FINANCE SHALL BE BASED ON THE CAPITAL REQUEST OF THE DEVELOPMENT SUPPORT FUND AND THE CAPITAL SHARE OF VIETNAM ELECTRICITY CORPORATION AND THE MINISTRY OF FINANCE IN THE ANNUAL CAPITAL PLAN.

IV. CAPITAL PAYMENT

1. OPENING ACCOUNTS:

- THE PROVINCE PROJECT MANAGEMENT BOARD, DISTRICTS, MARKET TOWNS, AND SPECIALIZED SECTIONS (HEREINAFTER REFERRED TO AS THE PROJECT MANAGEMENT BOARD) SHALL OPEN AN ACCOUNT AT THE PROVINCIAL DEVELOPMENT SUPPORT FUND BRANCH.

- THE PROVINCIAL DEVELOPMENT SUPPORT FUND BRANCH SHALL GUIDE THE PROCEDURES FOR OPENING AN ACCOUNT.

2. CAPITAL PAYMENT DOCUMENTS:

2.1. FOR DETAIL PLANNING PROJECTS OF RELOCATION AREAS AND RELOCATION POINTS, AND PRE-INVESTMENT PROJECTS: AUTHORITY DOCUMENTS APPROVING THE FRAMEWORK OR TASKS OF THE PLANNING OR ALLOWING THE PREPARATION FOR INVESTMENT; ESTIMATES FOR PLANNING OR PRE-INVESTMENT WORK.

2.2. FOR CONSTRUCTION PROJECTS IN RELOCATION AREAS AND POINTS, THE CAPITAL PAYMENT DOCUMENTS SHALL BE IMPLEMENTED ACCORDING TO THE MINISTRY OF FINANCE'S CIRCULAR GUIDING THE MANAGEMENT AND PAYMENT OF CAPITAL INVESTMENT AND OPERATIONAL CAPITAL WITH INVESTMENT CHARACTERISTICS FROM THE STATE BUDGET (CURRENTLY CIRCULAR NUMBER 44/2003/TT-BTC OF MAY 15, 2003). 2.3. FOR LAND AND PROPERTY COMPENSATION FOR RELOCATED HOUSEHOLDS OR LOCAL HOUSEHOLDS LOST PRODUCTIVE LAND; SUPPORT FOR MOVEMENT, LIVING, PRODUCTION, TRAINING, AND SKILL DEVELOPMENT COSTS, AND OTHER EXPENSES: THERE SHALL BE A COMPENSATION AND SUPPORT PLAN AND ESTIMATE APPROVED BY THE AUTHORITY, AND ECONOMIC CONTRACTS WHEN PURCHASING MATERIALS, SEEDLINGS, BREEDS...WITH SUPPLYING ENTERPRISES OR ORGANIZATIONS, OR TRAINING CONTRACTS WHEN PROVIDING TRAINING AND SKILL DEVELOPMENT..

PRIOR TO THE PREPARATION, REVIEW, AND APPROVAL OF THE COMPENSATION AND SUPPORT PLAN AND ESTIMATE, THE PROJECT MANAGEMENT BOARD SHALL ORGANIZE THE INVENTORY AND EVALUATION OF THE ACTUAL DAMAGE TO LAND AND PROPERTY UNDER CURRENT REGULATIONS THROUGH THE RESIDENTS' COMPENSATION, RELOCATION, AND RELOCATION COMMITTEE.

2.4. PROJECT MANAGEMENT COSTS:

2.4.1. SOURCES OF FUNDS:

- ALLOCATED FROM THE ANNUAL CAPITAL INVESTMENT PLAN OF THE PROJECT.

- IMPLEMENTED ACCORDING TO THE MINISTRY OF FINANCE'S CIRCULAR GUIDING THE MANAGEMENT AND USE OF PROJECT MANAGEMENT COSTS FROM THE STATE BUDGET

(CURRENTLY CIRCULAR NUMBER 98/2003/TT-BTC OF OCTOBER 14, 2003), CIRCULAR NUMBER 116/2004/TT-BTC OF DECEMBER 7, 2003 GUIDING THE IMPLEMENTATION OF GOVERNMENT DECREE NUMBER 197/2003/NĐ-CP ON COMPENSATION, SUPPORT, AND RELOCATION WHEN THE STATE ACQUIRES LAND.- ANNUALLY, THE DISTRICT AND MARKET TOWN PROJECT MANAGEMENT BOARDS, AND THE SPECIALIZED PROJECT MANAGEMENT BOARDS SHALL SET ASIDE 10% OF THE PROJECT MANAGEMENT COSTS AND SUBMIT THEM TO THE PROVINCE PROJECT MANAGEMENT BOARD.

2.4.2. MANAGEMENT OF PROJECT MANAGEMENT COSTS:

2.4.2.a. IMPLEMENTED ACCORDING TO THE MINISTRY OF FINANCE'S CIRCULAR GUIDING THE MANAGEMENT AND USE OF PROJECT MANAGEMENT COSTS FROM THE STATE BUDGET

, CIRCULAR NUMBER 116/2004/TT-BTC OF DECEMBER 7, 2004 GUIDING THE IMPLEMENTATION OF GOVERNMENT DECREE NUMBER 197/2004/NĐ-CP OF DECEMBER 3, 2004 ON COMPENSATION, SUPPORT, AND RELOCATION WHEN THE STATE ACQUIRES LAND AND THE REGULATIONS OF THE MINISTRY OF CONSTRUCTION. CIRCULAR NUMBER 116/2004/TT-BTC OF DECEMBER 7, 2003 GUIDING THE IMPLEMENTATION OF GOVERNMENT DECREE NUMBER 197/2003/NĐ-CP ON COMPENSATION, SUPPORT, AND RELOCATION WHEN THE STATE ACQUIRES LAND.2.4.2.b. FOR THE PROVINCE PROJECT MANAGEMENT BOARD:

- PROJECT MANAGEMENT COSTS FOR DIRECTLY MANAGED CONSTRUCTION INVESTMENT: IMPLEMENTED ACCORDING TO THE MINISTRY OF FINANCE'S CIRCULAR GUIDING THE MANAGEMENT AND USE OF PROJECT MANAGEMENT COSTS FROM THE STATE BUDGET

- Project management costs for investment construction projects directly managed by the Provincial Project Management Board shall be implemented in accordance with the Circular of the Ministry of Finance guiding the management and use of project management costs from state budget funds CIRCULAR NUMBER 116/2004/TT-BTC OF DECEMBER 7, 2003 GUIDING THE IMPLEMENTATION OF GOVERNMENT DECREE NUMBER 197/2003/NĐ-CP ON COMPENSATION, SUPPORT, AND RELOCATION WHEN THE STATE ACQUIRES LAND..

- For the source of funds allocated 10% from the Project Management Board of the district, city town, and specialized project management boards:

+ The Provincial Project Management Board prepares the budget for expenses to implement the contents: consolidation of plans, guidance, inspection... of the District Project Management Boards, specialized project management boards, submit to the competent authority for approval, and settle accounts according to current regulations.

+ Do not allocate project management costs from this source of funds into the value of construction projects directly managed.

3. Payment of investment capital for construction works at resettlement areas:

3.1. Construction projects invested and built at resettlement areas shall be implemented according to the scale prescribed in Decision No. 459/QĐ-TTg.

3.2. Advance payments, recovery of advance payments, and payment of capital for construction works, project components shall be carried out as follows:

3.2.a. The basis documents of the project: shall be implemented according to the Circular of the Ministry of Finance guiding the management and payment of investment capital and capital with investment nature and construction from state budget sources. 2.3. FOR LAND AND PROPERTY COMPENSATION FOR RELOCATED HOUSEHOLDS OR LOCAL HOUSEHOLDS LOST PRODUCTIVE LAND; SUPPORT FOR MOVEMENT, LIVING, PRODUCTION, TRAINING, AND SKILL DEVELOPMENT COSTS, AND OTHER EXPENSES: THERE SHALL BE A COMPENSATION AND SUPPORT PLAN AND ESTIMATE APPROVED BY THE AUTHORITY, AND ECONOMIC CONTRACTS WHEN PURCHASING MATERIALS, SEEDLINGS, BREEDS...WITH SUPPLYING ENTERPRISES OR ORGANIZATIONS, OR TRAINING CONTRACTS WHEN PROVIDING TRAINING AND SKILL DEVELOPMENT..

3.2.b. For infrastructure construction projects:

- The contractor may receive an advance payment of 10% of the contract value according to the General Estimate approved by the competent authority.

- Recovery of advance payments:

+ When the value of the quantity paid reaches 20% of the contract value, recovery begins and the recovery amount equals 30% of the advance payment made;

+ When the value of the quantity paid reaches 40% of the contract value, recover another 20% of the advance payment made;

+ When the value of the quantity paid reaches 50% of the contract value, recover another 50% of the advance payment made.

+ Projects that conduct bidding: shall be implemented according to the Circular of the Ministry of Finance guiding the management and payment of investment capital and capital with investment nature and construction from state budget sources. 2.3. FOR LAND AND PROPERTY COMPENSATION FOR RELOCATED HOUSEHOLDS OR LOCAL HOUSEHOLDS LOST PRODUCTIVE LAND; SUPPORT FOR MOVEMENT, LIVING, PRODUCTION, TRAINING, AND SKILL DEVELOPMENT COSTS, AND OTHER EXPENSES: THERE SHALL BE A COMPENSATION AND SUPPORT PLAN AND ESTIMATE APPROVED BY THE AUTHORITY, AND ECONOMIC CONTRACTS WHEN PURCHASING MATERIALS, SEEDLINGS, BREEDS...WITH SUPPLYING ENTERPRISES OR ORGANIZATIONS, OR TRAINING CONTRACTS WHEN PROVIDING TRAINING AND SKILL DEVELOPMENT..

3.2.c. For agricultural, forestry production projects, processing projects, and projects producing planting and breeding materials serving relocation and resettlement:

- The contractor may receive an advance payment of 20% of the contract value according to the General Estimate approved by the competent authority.

- The advance payment amount will be recovered when the value of the quantity invested reaches 50% of the contract value and fully recovered when the value of the quantity invested reaches 80% of the contract value.

The advance payment amount specified in Points b and c shall not exceed the capital allocation in the annual plan for the project or the workload performed according to the contract.

3.2.d. Some special cases:

- In case the advance payment has not been fully recovered due to the tender package not being paid up to the stipulated ratio but the project or work component is not allocated an investment capital plan or is suspended: the Project Management Board shall explain to the Branch of the Development Support Fund about the situation of using the unrecovered advance payment, and report to the competent authority for handling.

- In case the advance payment has already been paid but the tender package does not comply with the time limit stipulated in the contract, the Project Management Board shall explain to the Branch of the Development Support Fund and is responsible for refunding the advance payment made.

4. Payment for housing construction and ancillary works (hereinafter referred to as housing) at resettlement areas:

4.1. In the case where housing in resettlement areas is constructed by the Project Management Board signing contracts with contractors to provide to households according to standards, scales (area), model designs (or apartment building design for urban resettlers) and approved housing estimates, the procedures, conditions, and advance payments, payments shall be regulated as provided in Sections 2 and 3, Part IV of this Circular.

4.2. In the case where housing is self-built by households:

4.2.a. Households constructing their own housing shall receive compensation for housing equivalent to the estimated value of newly constructed housing according to the standards, scales (area) of the household entitled to receive as stipulated in Point 4.1, Section 4, Part IV of this Circular and shall not have to pay taxes.

4.2.b. The payment process shall be as follows:

- For the Project Management Board and Branch of the Development Support Fund:

+ Advance payment: The Project Management Board sends to the Branch of the Development Support Fund: the payment request form, the household's housing estimate according to the approved regulations, the household's self-construction housing registration form, and a list of households self-building housing. The advance payment amount should meet the requirements of each household's housing construction but not exceed the annual capital plan allocated for households' self-construction housing.

+ Capital payment: The Project Management Board must prepare a list of housing value payments for households that have completed their housing along with the completion certificate signed by the Project Management Board and the household, and send it to the Branch of the Development Support Fund. The Branch of the Development Support Fund shall check and pay the capital to the Project Management Board, and simultaneously recover the advance payment.

- For households: The Project Management Board pays compensation to households constructing their own housing according to the regulations of the provincial People's Committee but not more than three times the payment. The Project Management Board must ensure capital for households to purchase construction materials and other conditions for housing construction when households are preparing to build; compensation money is paid to each household in subsequent installments based on the construction progress of each household. Households only receive the final compensation payment when they complete the construction of their housing and sign the completion certificate with a representative of the Project Management Board. Each time receiving housing compensation, each household must sign and have confirmation from the Land Compensation, Relocation, and Resettlement Council or local authorities.

4.3. In the case where housing is jointly constructed by households and the Project Management Board:

- The compensation value for housing is equal to the estimated value of newly constructed housing according to the standards, scales (area) of the entitled household; the procedures, conditions, and advance payments, payments are regulated as provided in Point 4.1, Section 4, Part IV of this Circular. The value of the construction volume undertaken by households does not need to pay taxes.

- The Project Management Board and households agree on the workload undertaken by each party through a contract or commitment. The Project Management Board allocates the advance payment and pays each party according to the proportion of capital each party undertakes. The procedure for advance payment and capital payment for housing undertaken by households is carried out as stipulated in Point 4.2, Section 4, Part IV of this Circular.

- The advance capital and payment for works undertaken by the contractor shall be settled by the Project Management Board in accordance with Point 4.1, Section 4, Part IV of this Circular.

4.4. If households have the need to build houses with structures and areas exceeding the prescribed standards, they must compensate for the additional value, and the Project Management Board will only settle the value of the constructed houses according to the specified standards for the households.

5. Compensation, relocation support, livelihood support, and other supports.

5.1. The content, level, and conditions for compensation for land value, assets, relocation support, livelihood support, and other supports shall be implemented in accordance with the provisions of Decision 459/QĐ-TTg.

5.2. Settlement of compensation and support funds:

5.2.a. For compensation and support with construction characteristics, such as compensating for damage to public works, infrastructure for affected households and communities that do not need to relocate, resettlement communities with mixed resettlements,... these projects must have complete investment procedures, advance payment and settlement documents in accordance with Section 2, Section 3, Part IV of this Circular.

5.2.b. Payments for land compensation, asset compensation, relocation support, stable livelihood support,... must have complete initial documentation in accordance with Section 2, Part IV of this Circular and included in the annual investment capital plan approved.

The settlement of capital shall be carried out as follows:

- For contractors and beneficiaries:

+ Advance capital: The Project Management Board sends the request for advance payment and detailed budget estimate for each compensation and support expenditure to the Branch Development Support Fund. The amount of advance capital for each compensation and support expenditure shall be based on the payment requirements but shall not exceed the annual capital plan allocated for the work, that expenditure. The Branch Development Support Fund shall review and pay the contractor and beneficiary according to the Project Management Board's request.

+ Capital settlement: The Project Management Board must prepare a price list or settlement statement accompanied by a determination of the completed compensation and support value of the contractors and beneficiaries or the compensation and support costs assigned to enterprises and relevant payment receipts, invoices. The Branch Development Support Fund shall review and pay the contractor and beneficiary according to the Project Management Board's request, while recovering the advance payment.

- For households:

+ The Project Management Board sends the request for advance payment and detailed budget estimate for each household's compensation and support expenditure to the Branch Development Support Fund. The amount of advance capital for each compensation and support expenditure shall be based on the payment requirements but shall not exceed the annual capital plan allocated for the work, that expenditure. When settling the capital, the Project Management Board must prepare a price list or settlement statement accompanied by a determination and acknowledgment of each household's compensation and support payments. The Branch Development Support Fund shall review, advance, and pay the Project Management Board.

+ The Project Management Board directly pays each household's compensation and support, and each household must sign for receipt, with confirmation from the local Resettlement Compensation Council (commune) or local authority. The Provincial People's Committee stipulates the method and number of payments suitable for each compensation and support item to avoid multiple payments.

- In cases where there is no approved compensation and support plan and budget but relocation must be carried out according to the schedule, the Project Management Board may temporarily advance up to 30% of the compensation and support cost within the total investment estimate of the detailed resettlement area planning scheme approved.

6. Settlement of production support capital:

6.1. The content, level, and conditions for production support (including vocational training) shall be implemented in accordance with the provisions of Decision 459/QĐ-TTg.

6.2. Settlement of production support capital:

6.2.a. For contractors and beneficiaries:

- Advance capital: The Project Management Board sends the request for advance payment to the Branch Development Support Fund; the approved production support budget estimate (including vocational training support) is based on the number of supported households, economic contracts for purchasing seedlings, livestock, fertilizers, pesticides... or training contracts (if any). The amount of advance production support capital is the amount required to be paid according to the economic contract, training contract, or necessary production requirements but shall not exceed the annual capital plan allocated for the work, that expenditure. The Branch Development Support Fund shall settle the advance capital for contractors and beneficiaries according to the Project Management Board's request.

- Capital settlement: The Project Management Board sends the price list or settlement statement to the Branch Development Support Fund along with the acceptance and handover minutes, relevant payment receipts, invoices according to the economic contract, training contract between the Project Management Board and enterprises, training institutions. The Branch Development Support Fund shall review and settle for contractors and beneficiaries according to the Project Management Board's request, while recovering the advance payment.

6.2.b. For households:

- The Project Management Board sends the request for advance payment and detailed budget estimate for each production support expenditure to the Branch Development Support Fund. The amount of advance production support capital shall be based on the payment requirements but shall not exceed the annual capital plan allocated for that expenditure. The Branch Development Support Fund shall review and advance to the Project Management Board.

- The Project Management Board directly pays each household's production support, and each household must sign for receipt, with confirmation from the local authority regarding the received capital. The Provincial People's Committee stipulates the method and number of payments suitable for each production support item to avoid multiple payments.

- When settling the capital, the Project Management Board sends the capital settlement statement to the Branch Development Support Fund along with relevant payment receipts, invoices and the signed acknowledgment of each household's production support expenditures. The Branch Development Support Fund shall review and settle for the Project Management Board, while recovering the advance payment.

7. Settlement of capital for other expenses:

7.1. Other expenses include project management costs, planning and investment preparation costs, insurance costs, land construction licensing fees...

7.2. The Project Management Board sends to the Branch of the Development Support Fund a request for advance payment, withdrawal vouchers, and notifications from specialized agencies requiring payment (if any). The amount of advance payment shall be based on the necessary requirements of the work, but not exceeding the annual plan allocated for that expense.

7.3. When settling other expenses, the Project Management Board sends to the Branch of the Development Support Fund a price list or settlement statement along with relevant vouchers, payment invoices (contracts, handover minutes, acceptance certificates). The Branch of the Development Support Fund will review, settle, and simultaneously recover any advances.

For the Project Management Board's expenses, in cases where the annual plan is delayed or the budget for the Project Management Board has not yet been approved, temporary advance payments for salaries and travel expenses, essential office supplies may be made.

8. Payment for voluntary relocation households:

8.1. Voluntary relocation households that do not move to resettlement sites shall be compensated for land, housing, ancillary structures, assets, and supported according to the content, level, and conditions stipulated in Decision No. 459/QĐ-TTg.

8.2. Settlement of expenses for voluntary relocation households.

8.2.a. For the Project Management Board:

- Advance payment: The Project Management Board sends to the Branch of the Development Support Fund a request for advance payment, settlement, relocation plans for voluntary relocation households (including obtaining confirmation at the intended destination), estimated costs for voluntary relocation households, and required documents for voluntary relocation households as specified in Decision No. 459/QĐ-TTg. The amount of advance payment for expenses for voluntary relocation households shall be based on the payment requirements but not exceeding the annual plan allocated for that expense. The Branch of the Development Support Fund will review and provide advance payment to the Project Management Board.

- Settlement: The Project Management Board sends a settlement statement for funds accompanied by confirmed and signed receipts for expenses for voluntary relocation households, related vouchers, and payment invoices. The Branch of the Development Support Fund will review and settle for the Project Management Board, while simultaneously recovering any advances.

8.2.b. For household residents:

- When making direct payments to households, each household must sign for receipt, with confirmation from the local Land Compensation and Relocation Committee (commune) or local authorities.

- Payments for voluntary relocation households are divided into two installments:

+ First installment: payment for obtaining confirmation at the intended destination.

+ Second installment: payment before the relocation date as registered with the Project Management Board. Voluntary relocation households are responsible for managing and using the entire compensation and support funds to ensure stable living conditions and production development at their new residence.

9. Payment deadline:

9.1. Based on the payment request documents sent by the Project Management Board (as stated in Sections 2, 3, 4, 5, 6, 7, and 8 above), within seven working days from the date of receiving all documents, the Branch of the Development Support Fund will review and allocate funds to the Project Management Board so that the Project Management Board can settle accounts with households or contractors and beneficiaries as requested by the Project Management Board.

9.2. The Project Management Board is responsible for settling accounts with households within seven working days from the date of receiving funds from the Branch of the Development Support Fund.

V. REPORTING, SETTLEMENT, AND INSPECTION REGULATIONS

1. Reporting System:

1.1. For the project sponsor, Project Management Board:

- Monthly, district, city Project Management Boards and specialized Project Management Boards are responsible for reporting on investment implementation and fund settlement to the Provincial Project Management Board.

- Monthly, the Provincial Project Management Board is responsible for reporting on investment implementation, fund receipt and usage in the month to the Provincial People's Committee and provincial consolidation agencies, and concurrently sending reports to the Ministry of Finance, Vietnam Electricity Corporation, and the Development Support Fund according to Appendix 2.

- Quarterly and annually, the Provincial People's Committee is responsible for reporting on investment plan implementation and fund settlement to the State Steering Committee for the Son La Hydropower Project, the Ministry of Finance, and the Ministry of Planning and Investment according to Appendix 2.

1.2. For the Development Support Fund:

- Monthly (quarterly), the Provincial Branch of the Development Support Fund reports on fund receipt, allocation, settlement, and completion project finalization and other necessary information to the provincial Department of Finance and the Development Support Fund.

- Quarterly, the Development Support Fund reports to the Ministry of Finance and Vietnam Electricity Corporation on received and settled funds. Quarterly, it reconciles with the Ministry of Finance and Vietnam Electricity Corporation on received and settled funds according to Appendix 4.

The fourth quarter report is replaced by an annual report submitted by January 20th of the following year.

2. Reconciliation of investment fund payments:

Quarterly, the Branch of the Development Support Fund and the Project Management Board reconcile investment fund payment data according to Appendix 3.

3. Investment fund settlement:

3.1. Settlement of completed project investment funds:

- Project management costs: settled according to current regulations issued by the Ministry of Finance regarding project management cost control.

- Investment costs executed by contractors: settled according to current regulations issued by the Ministry of Finance regarding completed project investment fund settlement (currently Circular No. 45/2003/TT-BTC dated May 15, 2003).

- For relocation compensation and support costs executed by relocated households: settled according to Appendix 6 attached to this Circular.

3.2. Fund source settlement: On January 31st each year, the Development Support Fund is responsible for reporting the settlement of project fund sources to the Ministry of Finance and EVN for the period up to December 31st of the previous year according to Appendix 7 attached to this Circular.

4. Accounting system:

The Project Management Board for compensation, relocation, and resettlement of the Son La Hydropower Project in Son La, Dien Bien, and Lai Chau provinces implements the accounting system applicable to sponsors as issued by the Minister of Finance (currently Decision No. 214/2000/QĐ-BTC dated December 28, 2000).

5. Inspection system:

- The Ministries of Agriculture and Rural Development, Finance, Planning and Investment, and the People's Committees of provinces shall organize inspections to check compliance with regulations on investment management and construction, progress implementation, management situation, and capital disbursement according to their respective functions and responsibilities.

- Financial agencies at all levels shall organize inspections of the Branch of the Development Support Fund regarding the implementation of capital disbursement and payment systems.

VI. RESPONSIBILITIES OF RELATED AUTHORITIES

1. Provincial People's Committees: Son La, Dien Bien, Lai Chau:

- Implement this Circular; based on its contents, provide specific and detailed guidance suitable for local conditions; direct the construction of centralized resettlement areas or interwoven areas within the province according to approved planning and projects in accordance with current regulations; allocate annual compensation, relocation, and resettlement plans.

- Inspect and urge the Project Management Boards for relocation and resettlement to implement investment plans, properly receive and utilize investment funds for their intended purposes in accordance with state regulations.

- Report on investment implementation as required and be responsible for their decisions according to assigned functions and responsibilities.

2. Project Management Board:

- Organize management and implementation of investment projects in accordance with current regulations on investment management and construction, bidding rules; properly receive and utilize funds for their intended purposes, for the correct beneficiaries, economically and efficiently.

- Regularly inspect and supervise the implementation of work volume and quality of construction works (including housing and workloads undertaken by households).

- Upon completion of basic construction works meeting payment conditions, promptly conduct acceptance procedures and process payments for contractors.

- Be responsible for the accuracy and legality of completed basic construction works subject to payment and data provided to the Development Support Fund and relevant state agencies.

- Timely report periodic information and complete final accounts of investment capital as prescribed.

3. Development Support Fund:

- Be responsible for inspecting and organizing timely, full, and accurate payments according to regulations when basic construction works meet payment conditions.

- Timely report periodic information and complete final accounts of investment capital as prescribed.

- Promptly report difficulties and obstacles encountered during the implementation of tasks related to the distribution and payment of compensation, relocation, and resettlement funds for the Son La Hydropower Project to the Ministry of Finance for consideration and resolution.

4. Organizations, households, individuals:

- Have the responsibility to move according to the project schedule.

- Properly receive, manage, and use compensation, relocation, and resettlement funds for their intended purposes, economically and efficiently.

- Regularly inspect and supervise the implementation of work volumes and quality carried out by the Project Management Board and contractors in relation to households and communities.

- Verify the accuracy and legality of received compensation and support amounts against state regulations.

VII. IMPLEMENTATION PROVISIONS

This Circular replaces Circular No. 70/2004/TT-BTC dated July 14, 2004, issued by the Ministry of Finance, guiding the management and payment of investment capital for the Son La Hydropower Project's compensation, relocation, and resettlement project and takes effect fifteen days after its publication in the Official Gazette.

Any difficulties encountered during implementation should be reported promptly to the Ministry of Finance for study, guidance, supplementation, and amendment./.