Decision No. 1196/QD-TTg Approves the Scheme "Mobilizing Resources for Investment in Water Supply and Sewage Systems and Solid Waste Management"

Pursuant to …;

Approving the Project "Stimulating Various Resources for Investment in Building Water Supply and Sewage Systems and Solid Waste Treatment" cấp, thoát nước và xử lý chất thải rắn sinh hoạt" ||| water supply, drainage, and solid domestic waste treatment"

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PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to Resolution No. 16/NQ-CP dated June 8, 2012 of the Government on the Program of Action of the Government to Implement Resolution No. 13-NQ/T.Ư dated January 16, 2012 of the Central Committee of the Communist Party of Vietnam, Tenure XI, on building a synchronous infrastructure system to basically transform our country into an industrialized nation with modern orientation by 2020;

Considering the proposal of the Minister of Construction,

DECISION:

Article 1. Approving the Project "Stimulating Various Resources for Investment in Building Water Supply and Sewage Systems and Solid Waste Treatment" (hereinafter referred to as the Project) with the following main contents:

I. VIEWS AND OBJECTIVES

Clause 1. Views

- Developing water supply and sewage systems and solid waste treatment is both a right and a duty of the whole society. The State plays a leading role and all citizens have the responsibility to participate and contribute to ensure the sustainable development of water supply and sewage systems and solid waste treatment.

- Investment in building water supply and sewage systems and solid waste treatment must take into account climate change factors; exploit and use water efficiently, sustainably, and economically; minimize waste and wastewater that do not meet discharge standards from being released into the environment.

- Sustainable development of water supply and sewage systems and solid waste treatment must be based on the principle that service users and polluters must pay, whereby organizations and individuals using water services, generating waste, and causing environmental pollution must bear the cost of treatment.

- The State encourages economic sectors to participate in investment, management, and operation of water supply and sewage systems and solid waste treatment; ensuring harmony between the interests of the State, investors, and the people.

Clause 2. Objectives

- By 2020, achieve the goals set out in the Orientation for Development of Water Supply and Sewage Systems and the Comprehensive Solid Waste Management Strategy approved by the Prime Minister.

- Mobilize maximum resources for investment in developing water supply and sewage systems and solid waste treatment; prioritizing the exploitation of private sector investment capital to reduce state budget investment and enhance investment efficiency.

II. MAIN SOLUTIONS

1. Improving planning work

- Reviewing, adjusting, and supplementing specialized plans or water supply, sewage, and solid waste treatment components within local construction master plans.

- Based on water supply, sewage, and solid waste treatment plans, develop investment plans and identify priority projects to concentrate investment funds.

2. Improving mechanisms and policies

a) General Mechanisms and Policies

- Reviewing, amending, and supplementing investment mechanisms and policies, incentives, and support in the field of water supply, sewage, and solid waste treatment to encourage private economic sectors to participate in investment, management, and operation of water supply and sewage systems and solid waste treatment facilities.

- Studying the application of management and operation leasing models for some water supply, sewage, and solid waste treatment facilities invested by the State to generate investment capital for other facilities.

- Reviewing, amending, and supplementing mechanisms and policies related to the commitments and responsibilities of local authorities during the organization of investment in water supply, sewage, and solid waste treatment projects.

- Reviewing, amending, and supplementing technical standards, economic and technical indicators applicable in the fields of water supply, sewage, and solid waste treatment.

- Reviewing, amending, and supplementing guidance on managing and implementing programs and projects funded by ODA to ensure timely and effective implementation. Guidance on mechanisms allowing private enterprises to access and use ODA funds through loan schemes.

- Accelerating research and promulgation of investment mechanisms and policies under public-private partnership models in the fields of water supply, sewage, and solid waste treatment. - Reviewing, amending, and supplementing land use fee exemption and reduction policies to ensure consistency between land finance policies and laws on investment and taxation in the fields of water supply, sewage, and solid waste treatment.

- Completing mechanisms and policies to incentivize domestic technology research and advanced technology application; training and developing human resources in the fields of water supply, sewage, and solid waste treatment.

- Completing mechanisms for efficient exploitation and utilization of environmental protection funds.

b) Specific Mechanisms and Policies

- For urban water supply

+ Studying and adjusting the framework of clean water consumption prices towards eliminating government subsidies for clean water consumption from the state budget by 2020.

+ Reviewing, amending, and supplementing economic and technical indicators for production, management, and operation to serve the calculation of clean water prices, ensuring reasonable costs are covered and transparency maintained.

- For urban sewage

+ Studying the application of sewage service fees and the adjustment schedule towards gradually covering the costs of management, operation, and construction of sewage systems.

+ Reviewing, amending, and supplementing economic and technical indicators for management and operation to determine sewage service fees and management and operation costs of sewage systems.

- For solid waste treatment

+ Studying the application of solid waste treatment fees with an adjustment schedule towards gradually covering the costs of management, operation, and construction.

+ Studying and amending sanitation fees towards meeting the costs of collecting and transporting solid waste in urban areas and partially covering these costs in rural areas by 2020.

+ Specific guidelines on the conditions for subsidies, subsidy levels, and duration of subsidies for products from solid waste treatment processes.

+ Study, amend, and supplement regulations regarding investment projects to construct Group C solid waste treatment facilities included in the list of projects eligible for state credit loans.

+ Review, amend, and supplement economic and technical standards related to the collection, transportation, and treatment of household solid waste to determine costs for these activities.

c) Other solutions

+ Develop training and human resource development plans in the field of water supply and drainage and solid waste treatment.

+ Implement public awareness campaigns to enhance community understanding during the construction and development of water supply and drainage systems and solid waste treatment facilities.

d) Regarding the use of funds

+ State capital prioritizes being used as counterpart funding for programs and projects utilizing ODA; interest rate support for projects borrowing state credit investment; price compensation for services and product consumption; support for research and technology transfer programs, domestic equipment manufacturing; human resource development and public awareness campaigns.

+ ODA funds are used to invest in large-scale projects in the fields of drainage and solid waste treatment.

+ Other sources of capital are prioritized for projects: technology transfer suitable for Vietnam's conditions; technology researched domestically; investment in water supply systems to prevent water loss; investment in drainage systems; investment in solid waste treatment facilities and the collection and transportation of household solid waste.

Article 2. Implementation

1. Responsibilities of the Ministry of Construction

- Guide and inspect the review, adjustment, and supplementation of specialized planning or water supply and drainage and solid waste treatment planning content within local urban planning.

- Lead and coordinate with relevant ministries and sectors to study, amend, and supplement mechanisms and policies in the construction, management, and operation of water supply and drainage facilities and solid waste treatment.

- Lead and coordinate with the Ministry of Finance to study the application of drainage service prices and solid waste treatment prices to gradually meet the requirements of cost recovery for management, operation, and construction of drainage systems and solid waste treatment areas. - Study, amend, and supplement technical standards and economic and technical indicators applicable in the fields of water supply and drainage and solid waste treatment.

- Develop training and human resource development plans in the field of water supply and drainage and solid waste treatment.

2. Responsibilities of the Ministry of Finance

- Lead and coordinate with relevant ministries and sectors to study and improve credit investment mechanisms for activities in the fields of water supply and drainage and solid waste treatment to encourage private sector participation in the construction, management, and operation of water supply and drainage facilities and solid waste treatment.

- Lead and coordinate with relevant ministries and sectors to study adjustments to the clean water consumption price framework until 2020 to eliminate the need for government budget subsidies for clean water consumption; establish a mechanism for managing the revolving fund for water supply.

- Lead and coordinate with the Ministry of Natural Resources and Environment to provide specific guidelines on the conditions for subsidies, subsidy levels, and duration of subsidies for products from solid waste treatment processes.

3. Responsibilities of the Ministry of Planning and Investment

Lead and coordinate with relevant ministries and sectors to study investment mechanisms under public-private partnership models and other investment forms; improve mechanisms and policies for allocating, managing, and implementing ODA programs and projects; mechanisms allowing private sector enterprises to access and utilize ODA funds.

4. Responsibilities of the Ministry of Natural Resources and Environment

- Lead and coordinate with relevant ministries and sectors to study amendments and supplements to Decree No. 04/2009/NĐ-CP dated January 14, 2009, of the Government on incentives and support for environmental protection activities.

- Lead and coordinate with relevant ministries and sectors to review, amend, and supplement land use fee exemption and reduction policies to ensure consistency between land finance policies and laws on investment and taxation in the fields of water supply, drainage, and solid waste treatment.

5. Responsibilities of the Ministry of Science and Technology

Lead and coordinate with relevant ministries and sectors to study the development and application of advanced technology in the fields of water supply, drainage, and solid waste treatment.

6. Responsibilities of the People's Committees of Provinces and Central Cities

- Organize reviews, adjustments, and supplements to specialized planning or water supply and drainage and solid waste treatment planning content within local urban planning.

- Develop a schedule for adjusting clean water consumption prices consistent with the national clean water consumption price framework set by the Ministry of Finance.

- Study and amend sanitation fees for submission to the Provincial People's Council for consideration and decision.

- Organize the preparation and approval of investment plans and priority project lists in the fields of water supply, drainage, and solid waste treatment for each phase.

- Direct the synchronized implementation of projects developing water supply networks, drainage systems, source waste sorting, and solid waste collection systems alongside construction projects.

- Organize and promote public awareness and responsibility among organizations and individuals about the importance of the fields of water supply, drainage, and solid waste treatment.

Article 3. This Decision takes effect from the date of issuance.

Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of provincial People's Committees, and Chairpersons of municipal People's Committees directly under the central government shall be responsible for implementing this Decision.