Directive No. 11/2001/CT-TTg on Promoting the Settlement of Construction Investment Capital

DIRECTIVE
On Strengthening the Settlement of Investment Capital for Construction Projects

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In recent years, the settlement of investment capital for completed projects has made progress. However, there are still many completed projects that have been put into use but have not yet been settled, which has had negative impacts on the monitoring and management of state investment capital; the implementation of regulations on the settlement of investment capital according to the Investment Management and Construction Regulations has not been strict enough. As of December 2000, throughout the country, there were over 16,000 projects with a total capital exceeding 17 trillion VND that had not been settled.

To strengthen and enhance the settlement of investment capital, the Prime Minister issues the following directive:

1. Ministries, sectors, localities, and supervising investors must focus on resolving the following issues immediately:

Improve and rectify the operation of the machinery responsible for auditing the settlement of investment capital, prioritizing the arrangement and deployment of staff who possess moral integrity and professional expertise to perform audit and settlement tasks, ensuring the quality, effectiveness, and timely completion of settlements.

Organize and direct the management of investment capital settlement strictly in accordance with procedures suitable for the characteristics of each project, ensuring that all completed works and projects put into operation are settled in compliance with regulations.

Conduct regular and thorough supervision and inspection of investors, investment consulting organizations, and contractors regarding their compliance with regulations on the settlement of investment capital within their respective areas of management; at the same time, take measures to prevent, detect, and strictly handle collectives and individuals who violate regulations.

Regularly evaluate the settlement of investment capital based on management responsibilities and report the situation of investment capital settlement to the Ministry of Finance as prescribed.

2. Investors are responsible for organizing and managing projects; urging Project Management Boards to settle and report investment capital settlement in accordance with current state regulations, while coordinating with agencies responsible for auditing and settling investment capital when projects are completed as stipulated.

In cases where the settlement of investment capital for a project has not been completed, the Project Management Board has been dissolved, or project management staff have been transferred to other positions, the investor must be responsible for settling investment capital with the state.

3. To resolve specific existing issues and difficulties in the settlement of investment capital, ministries, sectors, and localities must urgently report to the Ministry of Finance by August 31, 2001, on the situation, results, and remaining issues and difficulties in investment capital settlement so that the Ministry of Finance can compile and propose solutions to be submitted to the Prime Minister for consideration and resolution by September 30, 2001.

4. The Ministry of Finance, in collaboration with the Ministry of Planning and Investment and the Ministry of Construction, will review the existing financial management system from temporary advances, payments to final settlement of investment capital to eliminate provisions that are no longer appropriate or impede current settlement work; supplement necessary provisions suitable for the development conditions and requirements of each field, sector, and level, aiming to accelerate the disbursement and settlement of investment capital.

Conduct inspections in some ministries, sectors, and localities currently having many unsettled investment capital projects to identify causes and develop measures to address difficulties and obstacles for units.

Assign the Minister of Finance responsibility for guiding, monitoring, and inspecting compliance with regulations on investment capital settlement by ministries, sectors, and localities. Annually, provide summaries, evaluations, and reports to the Prime Minister to take corrective actions against units violating investment capital settlement regulations.

Request Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, and Chairmen of People's Committees of centrally governed cities and provinces to promptly organize and direct subordinate units under their jurisdiction to implement this Directive effectively.