JOINT CIRCULAR No. 12-TT-LB ON THE IMPLEMENTATION OF THE CONSTRUCTION PROCEDURE AT HYDROELECTRIC CONSTRUCTION SITES

JOINT CIRCULAR No. 12-TT-LB stipulates the construction procedure at hydroelectric construction sites, emphasizing that there must be sufficient design, budget estimate, and commencement order before construction begins. At the same time, it sets out measures to handle violations.

Document No.12-TT-LB
Document typeJoint Circular
Issuing authorityMinistry of Finance
Signed byĐào Thiện Thi Cơ Quan Ban Hành Bộ Tài Chính Chức Danh Thứ Trưởng Người Ký Phan Mỹ — Thứ trưởng
Updated02/07/2026
SectorFinance
FieldBudget Management
Issued date12/06/1964
Effective date12/06/1964
Expiry date—
StatusIn effect
✦ Smart summary

JOINT CIRCULAR No. 12-TT-LB stipulates the construction procedure at hydroelectric construction sites, emphasizing that there must be sufficient design, budget estimate, and commencement order before construction begins. At the same time, it sets out measures to handle violations.

Scope of application

Provincial and municipal administrative committees, water conservancy bureaus, finance departments, construction supply offices, basic construction distribution offices, construction bank branches

Key points

  • Localities may not commence construction before having sufficient design, budget estimate, and approved site plan, especially the order from the Ministry of Water Resources.
  • If a locality commences construction in violation of regulations, the Construction Supply Office shall not provide funds or loans. The local administrative committee shall also not issue orders for improper allocation or lending.
  • In cases where a project does not have fully approved design and budget estimates but wishes to take advantage of time, the Ministry of Water Resources will endeavor to rearrange the basic construction plan to approve designs and budgets for some project components.
  • Projects under the management of local administrative committees must ensure compliance with the basic construction procedures and balance of materials and labor between central and local projects.
  • If insufficient funds are not received from the Construction Supply Office, the local administrative committee must request the Ministry of Finance to lend funds from the central government budget.

🌐 Social impact of this document

  • Positive impact: Reduces waste of human and material resources, ensuring state planning management.
  • Negative impact: May cause difficulties for urgent hydroelectric projects requiring immediate commencement.

❓ Frequently asked questions

When can localities commence construction?

Localities may not commence construction before having sufficient design, budget estimate, and approved site plan, especially the order from the Ministry of Water Resources.

If a locality commences construction in violation of regulations, how will it be handled?

The Construction Supply Office shall not provide funds or loans. The local administrative committee shall also not issue orders for improper allocation or lending.

In cases where a project does not have fully approved design and budget estimates but wishes to take advantage of time, what should be done?

The Ministry of Water Resources will endeavor to rearrange the basic construction plan to approve designs and budgets for some project components.

What must projects under the management of local administrative committees ensure?

These projects must ensure full compliance with the basic construction procedures and balance of materials and labor between central and local projects.

If insufficient funds are not received from the Construction Supply Office, what can the local administrative committee do?

The local administrative committee must request the Ministry of Finance to lend funds from the central government budget.

Full text

MINISTRY OF FINANCE-MINISTRY OF WATER RESOURCES
------------

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
-----------------------------

Number: 12-TT-LB

Hanoi, June 12, 1964

 

JOINT CIRCULAR

Regarding the implementation of basic construction procedures at irrigation sites

 

Respectfully submitted to:
Respectfully submitted to

- Administrative Committees of provinces and cities,
- Irrigation Departments,
- Financial Departments,
- Construction Management Offices,
- Basic Construction Supply Office,
- Construction Bank Branches (hereinafter referred to collectively as Branches),

The initiative to launch the two-year irrigation campaign for 1964-1965 by the Party and the State is being actively and urgently implemented under the leadership of local Party committees and administrative committees. However, some regions have started construction without adequate preparation, leading to a sudden influx of labor onto construction sites before having complete designs, approved budgets, and site plans, and without the commencement order from the Ministry of Irrigation (such as Thanh Hoa, Nghe An, Nam Dinh, Ninh Binh, Vinh Phuc, etc.).

The serious violation of the basic construction procedures stipulated in Circular 354-TTg dated August 5, 1957, issued by the Prime Minister, and Decree 64-CP dated November 19, 1960, issued by the Council of Ministers, has resulted in waste of human and material resources and created many difficulties for relevant sectors in managing state plans across various aspects.

Therefore, the Ministries jointly request that local administrative committees pay utmost attention to leading the full implementation of the prescribed basic construction procedures. Below, the Ministries reiterate several points that require special attention:

A. FOR IRRIGATION PROJECTS FUNDED BY THE CENTRAL GOVERNMENT.

1. Localities shall not commence construction until they have complete designs, approved budgets, and site plans, and especially until they receive a commencement order (in writing) from the Ministry of Irrigation.

In case of disagreement with the Ministry of Irrigation, localities may report to the Prime Minister for decision.

2. If localities unilaterally commence construction contrary to the above regulations, Construction Bank Branches shall not provide funds or loans. In such cases, local administrative committees shall not issue orders to Construction Bank Branches to provide funds or loans outside the established procedures, nor shall they instruct Financial Departments to temporarily allocate local budget funds for central government-funded projects.

3. In cases where a project does not yet have fully approved overall designs and budgets but can take advantage of time and local workforce arrangements, it may propose to the Ministry of Irrigation to commence certain project components immediately. The Ministry of Irrigation will rearrange the basic construction plan and financial plan, and quickly approve designs and budgets for certain project components to allow commencement according to local requirements. Specifically regarding budgets, if timely approval is not possible, the Ministry of Irrigation may still issue a commencement order while requesting the Ministry of Finance to instruct Construction Bank Branches to temporarily provide funding based on draft budgets, which will be settled later according to the approved budget prices.

In this situation, localities must also wait for a written commencement order from the Ministry of Irrigation before commencing work.

B. FOR IRRIGATION PROJECTS FUNDED BY LOCAL GOVERNMENTS OR WITH CENTRAL GOVERNMENT ASSISTANCE

1. These projects are under the management of local administrative committees, but when issuing commencement orders, local administrative committees must ensure full compliance with basic construction procedures and maintain balanced relationships between central and local projects and between basic construction and agricultural production within the locality.

2. Furthermore, local administrative committees (Financial Departments) must promptly transfer sufficient funds to Construction Bank Branches for disbursement purposes. If insufficient funds are received, Construction Bank Branches shall not provide funds or loans. In such cases, if truly necessary, local administrative committees must request the Ministry of Finance to provide loans using central government budget funds.

The Ministries request that provincial and municipal administrative committees study this circular and thoroughly disseminate it to relevant sectors and levels for strict implementation.

DEPUTY MINISTER OF IRRIGATION
DEPUTY MINISTER
(Signed)

 

Phan My

MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT
DEPUTY MINISTER
(Signed)

 

Dao Thien Thi

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