Circular No. 11/2017/TT-BKHCN stipulates the management and implementation of the "Pilot Mechanism for Public-Private Partnership and Co-Financing to Fulfill Science and Technology Tasks" Program.

CIRCULAR

Article 24Issuing regulations on the management and implementation of the Pilot Mechanism for Public-Private Partnership (PPP) Program and Joint Funding to Implement Science and Technology TasksNo.public-private partnership,

scientific and technological task co-funded,”

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 Pursuant to Decree No. 20/2013/NĐ-CP dated February 26, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Science and Technology;

Pursuant to Decree No. 08/2014/NĐ-CP dated January 27, 2014 of the Government detailing and guiding the implementation of certain provisions of the Law on Science and Technology;

Implementing Decision No. 1931/QĐ-TTg dated October 7, 2016 of the Prime Minister approving the Pilot Mechanism for Public-Private Partnership (PPP) Program and Joint Funding to Implement Science and Technology Tasks;No.public-private partnership, co-funded scientific and technological task;

At the proposal of the Director of the Institute of Science and Technology Strategy and Policy and the Head of the Legal Department;"b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."The Minister of Science and Technology issues this Circular to regulate the management and implementation of the Pilot Mechanism for Public-Private Partnership (PPP) Program and Joint Funding to Implement Science and Technology Tasks.

Circular No. 11/2017/TT-BKHCN regulates the management and implementation of the Pilot Mechanism for Public-Private Partnership (PPP) Program and Joint Funding to Implement Science and Technology Tasks approved by the Prime Minister under Decision No. 1931/QĐ-TTg dated October 7, 2016.No.This Circular applies to agencies, organizations, individuals engaged in science and technology activities, enterprises, financial institutions, and other related organizations and individuals.”.

 PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

A science and technology program implemented under the pilot public-private partnership (PPP) mechanism and joint funding (hereinafter referred to as the PPP program) is a science and technology task piloted and implemented in the form of a collection of scientific and technological research topics, experimental production projects, and science and technology projects (collectively referred to as research topics or projects) jointly determined and contracted by public and private partners to implement and exploit the results generated. The framework program of the PPP

is a comprehensive description of the PPP program developed by public partners, private partners, and other relevant parties.

Article 2. Interpretation of Terms

In this Circular, the following terms are understood as follows:

1. Public-private partnership agreement is a voluntary written agreement without legal binding force, concluded between public and private partners to establish a partnership relationship for the establishment and implementation of the PPP program.

2. Public partner refers to ministries, ministerial-level agencies, government agencies, provincial people's committees, and centrally-administered municipal people's committees (collectively referred to as ministries, sectors, and localities), and financial institutions primarily operating with state budget funds participating in the PPP program.

3. Private partner refers to enterprises, organizations, and individuals operating for profit-making purposes established in accordance with Vietnamese law.

4. Lead agency for professional management is the agency assigned by the Ministry of Science and Technology to take the lead and coordinate with relevant parties in drafting the framework program of the PPP and handling procedures for its approval; supporting relevant parties in developing and agreeing on the public-private partnership agreement.

5. Partner The leading organization of research topics and projects under the PPP program

6. (hereinafter referred to as the leading organization) is state agencies, enterprises, organizations, and individuals selected or directly assigned to undertake the development and implementation of research topics and projects under the PPP program. is the agency assigned by the Ministry of Science and Technology to take the lead and coordinate with relevant parties in drafting the framework program for PPP and completing procedures for approval of the PPP framework program; supporting relevant parties in developing and signing public-private partnership contracts;

7. Leading organization of the project under the PPP program (hereinafter referred to as the leading organization) are state agencies, enterprises, organizations, and individuals selected or directly assigned to develop and implement projects under the PPP program.

Article 3. Pilot mechanism for implementing the PPP program

1. Research topics and projects under the PPP program shall be jointly determined by public partners, private partners, and other relevant parties to form groups to coordinate in addressing scientific and technological issues of the PPP program.

2. Resources for implementing research topics and projects under the PPP program shall be mobilized from various sources managed by public and private partners within their respective authorities.

3. State budget funds for implementing research topics and projects under the PPP program shall be managed according to the regulations on the management of budget funds of ministries, sectors, localities, and financial institutions directly contributing resources to participate in the PPP program, applying the most favorable content, standards, and methods of expenditure as prescribed in corresponding regulatory documents.

Article 4. Criteria for building the PPP program

1. Addressing important issues that enhance the competitiveness of industries or industry groups; developing priority scientific and technological fields; contributing to solving urgent socio-economic issues.

2. Scientific and technological products generated from the PPP program shall serve one of the following major directions: prioritizing key technologies; developing national key and core products or serving national target programs; developing scientific and technological potential in one or several fields over a five-year or ten-year period. Expected results must demonstrate novelty, advancement, applicability, and alignment with the objectives of the PPP program.

3. The content of the PPP program includes research topics and projects related to each other and consistent with the scientific and technological resources of public and private partners.

4. Public and private partners contribute resources including human resources, finance, and other resources to implement research topics and projects under the PPP program, wherein the private partner commits to contributing at least 40% of the total resources committed by all parties for the implementation of the PPP program.

Article 5. Code for research topics and projects under the PPP program

The code for research topics and projects under the PPP program is recorded as follows:

PPPn.NC(NT/CT/QL).XX-YY. In which:

1. PPPn is the common symbol for the nth research topic or project under the PPP program;

2. NC is the symbol for research topics or projects implemented entirely with public partner resources;

3. NT is the symbol for research topics or projects implemented entirely with private partner resources;

4. CT is the symbol for research topics or projects implemented with joint resources of both public and private partners;

5. QL is the symbol for research topics or projects serving management, organization, and implementation of the PPP program;

6. XX is the two-digit symbol indicating the serial number of the research topic or project under the nth PPP program;

7. YY is the last two digits of the year when the research topic or project begins implementation.

Chapter II

DETERMINING THE PPP PROGRAM

Article 6. Building the framework proposal

1. Ministries, sectors, localities, financial institutions, enterprises, organizations, individuals engaged in science and technology, bilateral and multilateral cooperation organizations, and other entities (collectively referred to as the parties) shall exchange and agree to jointly propose a PPP program that the parties desire and commit to mobilizing resources to implement together. The proposal for the PPP program shall be carried out according to Model B1-DXCT-PPP attached to this Circular and submitted to the Ministry of Science and Technology.

2. The focal point of the Ministry of Science and Technology responsible for receiving proposals for the PPP program shall initially determine the content and field of the proposal and propose the Minister of Science and Technology to assign the competent specialized management agency to take the lead, coordinating with representatives of public partners, private partners, and other relevant parties as stipulated in Clause 1 of this Article to study and build the framework proposal for the PPP program according to Model B2-DAK-PPP attached to this Circular.

Article 7. Establishment of Advisory Board

1. The competent administrative agency shall carry out procedures to establish the Advisory Board for evaluating the PPP framework program proposal (hereinafter referred to as the Advisory Board), and submit it to the Minister of Science and Technology for consideration and decision.

2. The Minister of Science and Technology shall decide on the establishment of the Advisory Board for evaluating the PPP framework program proposal based on the recommendation of the competent administrative agency.

Article 8. Composition of the Advisory Board

1. The Advisory Board consists of nine members, including the chairman, vice-chairman, and other members. The composition of the Advisory Board includes four members who are experts in science and technology in relevant fields, five members who are economic experts and experienced management experts from state administrative agencies, enterprises, and other organizations in relevant sectors of the PPP program. The Advisory Board must have at least two members with deep expertise serving as reviewing experts.

2. In special cases due to the complexity or specific requirements of evaluating the PPP framework program proposal, the Minister of Science and Technology may decide on the number and composition of the Advisory Board differently from the provisions of Clause 1 of this Article.

Article 9. Working Method of the Advisory Board

1. A meeting of the Advisory Board must have at least two-thirds of its members present, including the chairman or the authorized vice-chairman if the chairman is absent, reviewing experts, and sufficient comments and evaluations of the PPP framework program proposal from absent members according to Model B1-ĐAK-TVHĐ attached as an appendix to this Circular. Representatives of public and private partners involved in developing the PPP framework program proposal may be invited to attend the Advisory Board meeting to exchange and discuss.

2. Members of the Advisory Board are responsible for:

a) Studying the PPP framework program proposal and related documents provided by the Ministry of Science and Technology, preparing comments and evaluations of the PPP framework program proposal according to Model B1-ĐAK-TVHĐ attached as an appendix to this Circular;

b) Reviewing experts are responsible for commenting, critiquing, contributing opinions, and proposing amendments and supplements to the content of the PPP framework program proposal for discussion at the Advisory Board meeting.

3. Documents must be sent to Advisory Board members at least five working days before the Advisory Board meeting, including:

a) The PPP framework program proposal and accompanying appendices (if any);

b) Extracts of provisions under Articles 4, 10, and 11 of this Circular;

c) Related forms issued together with this Circular to serve the Advisory Board meeting;

d) Other relevant professional documents (if any).

4. The Advisory Board operates on the principle of democratic centralism. The conclusions of the Advisory Board are adopted when at least three-quarters of its members agree through voting (absent members base their agreement on previously submitted comments and evaluations of the PPP framework program proposal).

5. The Ministry of Science and Technology assigns an administrative secretary to assist in preparing documents and organizing meetings of the Advisory Board. The administrative secretary is not a member of the Advisory Board.

Article 10. Procedure and formalities for the advisory council's work

1. The administrative secretary announces the decision to establish the advisory council and the number of absent members at the council meeting.

2. A representative from the Ministry of Science and Technology summarizes the requirements for the advisory council.

3. The chairman or vice-chairman authorized to chair the advisory council session presides over the meeting.

4. The advisory council elects one member to serve as the scientific secretary to record opinions during discussions and prepare minutes of the council meetings.

5. The advisory council elects a counting committee to compile the opinions of the council members.

6. Experts and advisory council members discuss according to the work content specified in this Circular. The administrative secretary reads out the comments and evaluations of absent members (if any).

7. Advisory council members conduct an assessment and vote on the PPP framework program proposal according to the provisions set forth in Form C1-DAK-PDG attached to this Circular.

a) For each evaluation form, the PPP framework program proposal is recommended for implementation if it is marked "recommend implementation" and not recommended for implementation if marked "do not recommend implementation."

b) The PPP framework program proposal is recommended for implementation when at least 3/4 of the total number of forms indicate "Recommend Implementation" (including both present members' evaluation forms and the comments and evaluations of absent members).

8. The counting committee conducts the ballot counting of the PPP framework program proposal and compiles the assessment results of the advisory council members according to the provisions set forth in Form C1-DAK-BBKP attached to this Circular; publicly announce the ballot counting results at the council meeting.

9. The scientific secretary prepares the minutes of the advisory council meeting assessing the PPP framework program proposal according to the provisions set forth in Form D1-BBH-DPP attached to this Circular.

Article 11. Content of the advisory council's work

Experts and advisory council members analyze, discuss, and evaluate the PPP framework program proposal on the following contents:

1. The necessity of implementing the PPP program;

2. Compliance with the criteria stipulated in Article 4 of this Circular;

3. The rationality and feasibility of the objectives, the rationality, coherence, and coordination among the components of the PPP program to achieve the set goals;

4. The capacity and committed resources of public and private partners to implement the PPP program;

5. The time frame and implementation plan for the PPP program;

6. Expected outcomes and impacts of the PPP program.

Article 12. Approval of the PPP framework program proposal

1. The lead agency coordinates with representatives of public and private partners and related parties to finalize the PPP framework program proposal after receiving the advisory council's assessment results.

2. The head of the lead agency reviews the procedure and formalities for the advisory council's work, considers the opinions of advisory council members regarding the PPP framework program proposal as stipulated in Article 11 of this Circular before submitting to the Minister of Science and Technology for approval.

In necessary cases, the head of the lead agency may propose the Minister of Science and Technology to seek advice from one to two independent domestic or foreign experts or establish a new advisory council (referred to as the second advisory council) to further assess the PPP framework program proposal. The experts of the second advisory council must be new experts. The procedures and formalities for establishing and operating the second advisory council shall be carried out in accordance with Articles 7, 8, 9, 10, and 11 of this Circular.

3. Based on the work results of the advisory council, independent experts (if any), and the recommendations of the lead agency head as stipulated in Clause 1 and Clause 2 of this Article, the Minister of Science and Technology will consider and approve the PPP framework program proposal.

Chapter III

CONSTRUCTION AND SIGNING OF PUBLIC-PRIVATE PARTNERSHIP CONTRACTS

Article 13. Construction of Public-Private Partnership Contracts

Within thirty days from the date the framework program PPP proposal is approved, the competent management agency shall be responsible for leading and coordinating with representatives of public partners, private partners, and related parties to exchange and agree on the construction of the content of the public-private partnership contract to establish the PPP program according to Model D2-HĐ-PPP attached as an appendix to this Circular.

Article 14. Signing of Public-Private Partnership Contracts

Based on the results of constructing the public-private partnership contract as stipulated in Article 13 of this Circular, authorized representatives of public partners and private partners shall jointly sign the public-private partnership contract to establish the PPP program. The head of the competent management agency represents the Ministry of Science and Technology to participate in signing the contract.

Article 15. Establishment of the PPP Program Steering Committee

1. Within fifteen days from the date the public-private partnership contract is signed, public partners and private partners shall exchange and agree on the number of suitable members in the steering committee, nominate representatives to join the PPP program steering committee (hereinafter referred to as the steering committee) for the Minister of Science and Technology to consider and decide (through the proposal of the competent management agency).

2. The competent management agency shall cooperate with the steering committee to develop the operational regulations of the steering committee for the Minister of Science and Technology to consider and decide.

3. The competent management agency shall be responsible for supporting the steering committee to conduct transactions in administrative activities of the PPP program.

Article 16. Adjustment of Steering Committee Members

During the implementation of the PPP program, public partners and private partners may propose adjustments to steering committee members to suit practical circumstances, to be submitted to the Minister of Science and Technology for consideration and decision (through the competent management agency).

Chapter IV

IMPLEMENTATION OF THE PPP PROGRAM

Article 17. Responsibilities of the Ministry of Science and Technology

1. The Ministry of Science and Technology shall be responsible for implementing the provisions of Articles 6, 7, 8, 9, 10, 11, and Article 12 of this Circular.

2. The competent management agency shall be responsible for assisting the Minister of Science and Technology in implementing the provisions of Clause 1 of this Article and directly performing the following tasks:

a) Organizing the determination of the responsibilities of the Ministry of Science and Technology participating as a partner in the public-private partnership contract; proposing to the Minister to assign relevant specialized units with corresponding functions and authorities to organize the implementation of the Ministry of Science and Technology's responsibilities in the detailed list of topics and projects implementing the PPP program;

b) Organizing the summary and evaluation of the PPP program;

c) Representing the Ministry of Science and Technology to cooperate with public partners and private partners in building and signing the public-private partnership contract; submitting to the Minister of Science and Technology for approval of the composition of the steering committee, the head, and the representative of the Ministry of Science and Technology participating in the steering committee; organizing the implementation of related tasks as stipulated in Article 15 and Article 16 of this Circular;

d) Preparing the budget for the funds specified in Clause 1 of Article 22 of this Circular and submitting them along with the framework program PPP proposal for the Minister of Science and Technology to consider and approve. During the implementation process, if there are any changes or adjustments to the budget, timely reports explaining the situation, along with the adjusted budget, shall be submitted to the Minister of Science and Technology for consideration and approval.

Article 18. Responsibilities of the Steering Committee

The Steering Committee is responsible for coordinating the general activities of the PPP program according to the operating regulations of the Steering Committee, the public-private partnership contract, and performing the following tasks:

1. Based on the provisions of this Circular, the PPP program framework proposal, and the public-private partnership contract, cooperate with public and private partners to develop detailed lists of research topics and projects to be implemented under the PPP program for each phase, coordinate with the competent management agency, project management units of public and private partners to conduct procedures to determine tasks, select, and directly assign organizations to implement research topics and projects under the PPP program according to the management regulations of each partner and corresponding management unit;

2. Nominate appropriate representatives of public and private partners to participate in task determination councils, selection councils, and directly assign organizations to build and implement research topics and projects under the PPP program as required;

3. Organize necessary activities and support public and private partners to implement research topics and projects under the approved PPP program according to the planned budget;

4. Coordinate with competent agencies and units of public and private partners to organize regular and spot inspections, evaluate implementation, and accept results of research topics and projects under the PPP program according to legal regulations. Timely identify difficulties and obstacles, propose solutions and resolutions to competent authorities;

5. Regularly report (every six months, annually) the results of implementing the PPP program to the public and private partners of the PPP program and the Ministry of Science and Technology. Coordinate with the competent management agency to organize summaries and evaluations of the PPP program.

Article 19. Responsibilities of Other Public Partners

Other public partners (excluding the Ministry of Science and Technology) participating in the PPP program shall have the responsibility to:

1. Proactively coordinate with other public and private partners to exchange and unify proposals for the PPP program; nominate representatives to participate and cooperate with the competent management agency to build the PPP program framework proposal;

2. Nominate representatives to participate in advisory council meetings as stipulated in Clause 1, Article 9 of this Circular;

3. Participate with other public and private partners in building and signing public-private partnership contracts, nominate representatives to participate in the Steering Committee as stipulated in Articles 13, 14, 15, and 16 of this Circular when requested;

4. Based on the detailed list of research topics and projects under the PPP program proposed by the Steering Committee within their respective management authority, organize implementation according to legal regulations;

5. Regularly submit reports every six months and annually on the status, progress, and results of implementing research topics and projects under their management authority to the Steering Committee for consolidation.

Article 20. Responsibilities of Private Partners

1. Proactively coordinate with other public and private partners to exchange and unify proposals for the PPP program, nominate representatives to participate and cooperate with the competent management agency to build the PPP program framework proposal;

2. Nominate representatives to participate in advisory council meetings as stipulated in Clause 1, Article 9 of this Circular;

3. Participate with other public and private partners in building and signing public-private partnership contracts, nominate representatives to participate in the Steering Committee as stipulated in Articles 13, 14, 15, and 16 of this Circular;

4. Based on the list of research topics and projects proposed by the Steering Committee, organize implementation of the relevant content of tasks consistent with the private partner's commitment to contribute resources to the PPP program according to legal regulations;

5. Conduct self-assessment of the results of implementing research topics and projects under the PPP program that do not use state budget funds according to legal regulations;

6. Implement legal regulations in cases where they are the main organizer or participant in implementing research topics and projects under the PPP program using state budget funds;

7. Nominate representatives to participate in task determination councils and selection councils, directly assigning organizations to implement tasks related to research topics and projects under the PPP program at the request of competent authorities;

8. Regularly submit reports every six months and annually on the status, progress, and results of implementing research topics and projects under the PPP program to the Steering Committee for consolidation.

Article 21. Responsibilities of the Organizing Body

1. To develop and protect detailed outlines, and enter into contracts with competent authorities to manage the implementation of research topics and projects under the PPP program.

2. To comply with legal regulations on the management and implementation of scientific and technological tasks:

a) To manage state budget funds allocated and ensure corresponding progress in funding from committed sources (if any) as stipulated in Clause 1 of this Article; organize bidding, procurement, and management of equipment for research topics and projects in accordance with legal provisions;

b) To implement reporting systems as prescribed according to the source of funding used. Facilitate and provide full information to supervisory agencies for inspection and verification during the implementation and after evaluation of research topics and projects;

c) To register, submit, and publish information on research topics and projects in accordance with Circular No. 14/2014/TT-BKHCN dated June 11, 2014, issued by the Minister of Science and Technology regarding the collection, registration, storage, and publication of information on scientific and technological tasks.

Article 22. Funding for the PPP Program

1. Funding for the development of the PPP program framework proposal; operational costs of the advisory board; costs related to organizing and signing public-private partnership contracts; costs for summarizing and evaluating the PPP program shall be sourced from the annual science and technology business expenditure fund of the Ministry of Science and Technology and shall follow the cost standards and methods applicable to national-level science and technology programs managed by the Ministry of Science and Technology.

2. Operational costs of the steering committee shall be specified in the public-private partnership contract agreed upon by the parties.

3. Funding for public partners implementing research topics and projects under the PPP program shall be mobilized from sources including: science and technology business expenditure budget; National Science and Technology Development Fund; National Technological Innovation Fund; science and technology development funds of ministries, sectors, and localities; Small and Medium Enterprise Development Fund; other programs and projects with compatible objectives; and other lawful sources of funding.

4. Funding contributed by private partners for implementing research topics and projects under the PPP program shall be self-balanced by the private partners in compliance with legal regulations and other lawful sources of funding.

5. Resources contributed by bilateral and multilateral development organizations, funds, and other entities (not falling within the scope of public or private partners) to implement the PPP program shall be aggregated into the contributions of public or private partners as agreed upon by these organizations with the respective public and private partners.

Chapter V

AMENDMENTS, CONCLUSION,

SUMMARIZATION EVALUATION OF THE PPP PROGRAM

Article 23. Adjustments During Implementation of the PPP Program

1. During the implementation of the PPP program, public and private partners may discuss and propose adjustments to the PPP program framework proposal to align with practical circumstances.

2. Any adjustment to the PPP program framework proposal must have the advisory board's opinion recommending the adjustment content and be submitted to the Minister of Science and Technology for consideration and decision.

Article 24. Termination of the PPP Program

1. The expiration of the public-private partnership contract term without an agreement to extend.

2. The completion of all acceptance, settlement procedures for projects under the PPP program, and the parties agree in writing to terminate the PPP program with confirmation from the Ministry of Science and Technology.

3. Public and private partners, after analyzing, evaluating, and agreeing to terminate the PPP program's activities.

4. The handling of assets and responsibilities related to the termination of the PPP program shall be carried out in accordance with the provisions of this Circular and relevant laws.

Article 25. Summary and Evaluation of the PPP Program

The competent authority will coordinate with the project management board, public and private partners to conduct a summary and evaluation of the implementation of the PPP program and submit the final report for approval by the Minister of Science and Technology.

Chapter VI

IMPLEMENTING PROVISIONS

Article 26. Effectiveness and Responsibility for Implementation

1. This Circular takes effect from October 15, 2017.

2. During the implementation process, if there are difficulties or obstacles, agencies, organizations, and individuals must promptly reflect these issues to the Ministry of Science and Technology in writing to receive guidance or research for necessary amendments and supplements.

3. Ministries, ministerial-level agencies, government-affiliated agencies, provincial/municipal people's committees, and related organizations and individuals are responsible for implementing this Circular.