Decision No. 13/2006/QĐ-TTg On Certain Financial and Budgetary Incentive Mechanisms for Da Nang City

Pursuant to …;

On certain preferential financial mechanisms for Da Nang City

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PRIME MINISTER

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

Pursuant to the State Budget Law number 01/2002/QH11 dated December 16, 2002;

Pursuant to the Government Decree number ` dated June 6, 2003 detailing and guiding the implementation of the State Budget Law;

Considering the proposal of the Minister of Finance,

DECISION:

Article 1. Issuing certain preferential financial mechanisms for Da Nang City as follows:

1. Regarding the mechanism of support from the state budget:

a) To support Da Nang City in implementing important projects that are significant for the city and the Central Coastal Economic Zone, based on the approved state budget estimate, project progress, the city's budget allocation capacity, and the central government's budget balance, during the period from 2006 to 2010, the Ministry of Planning and Investment and the Ministry of Finance shall report to the Government to submit to the National Assembly for allocation from the central budget through relevant ministries and central agencies or provide partial funding according to objectives to the city budget to implement important projects, specifically as follows:

- Upgrading the Da Nang - Quang Ngai expressway; the Da Nang - Hoi An road.

- Upgrading and expanding the international airport of Da Nang.

- Studying the preparation for building the Lien Chieu port and the two-way railway from Da Nang to Quang Ngai.

- Building the Da Nang University Town.

- The Sports Complex Project.

- The High-Tech Park Project.

- Building specialized research institutes.

- Relocating the railway station, oil storage tanks, and weapons depots out of the city, residential areas, and tourist sites.

- Thuan Phuoc Bridge.

- A 600-bed high-quality general hospital serving the entire Central Coast region.

b) Annually, in cases where there is an increase in central government revenue compared to the assigned budget estimate from revenues shared between the central and city budgets as stipulated by the State Budget Law, the Da Nang City budget will be rewarded with 30% of this increased revenue, but not exceeding the increase compared to the previous year's actual performance.

c) For the increase in revenue from revenues fully allocated to the central budget, annually, based on the results of tax collection, the Ministry of Finance will coordinate with the Ministry of Planning and Investment to report to the Government to submit to the Standing Committee of the National Assembly for prioritized supplementary funding with specific objectives for the city budget in accordance with the State Budget Law.

The excess revenue rewards and annual targeted supplementary funds as specified in points b and c, Clause 1 of this Article, the city will use for: investing in infrastructure projects; allocating matching funds for ODA projects; paying off loans for investment and executing important tasks of the city budget; implementing important tasks aimed at developing the economy and society, ensuring security, public order, and social safety of the city, and rewarding lower-level budgets. The People's Committee of Da Nang City will report to the People's Council at the same level to decide on specific capital for each goal and task and reward lower-level budgets.

2. Regarding policies for mobilizing financial resources for development investment:

a) Da Nang City is organized to raise domestic investment capital through the issuance of local government bonds, urban construction bonds, and other forms of fundraising as prescribed by law. The city budget is responsible for allocating sources to repay debts and related costs as prescribed.

b) Da Nang City can raise foreign loans to implement important projects based on the principle: on the basis of projects approved by the Municipal People's Council and written opinions from the Ministry of Finance, the Ministry of Planning and Investment, and the State Bank of Vietnam, the People's Committee of Da Nang City will submit to the Prime Minister for consideration and decision under the mechanism of the Government borrowing and lending back to the city to implement projects and works as proposed by the Municipal People's Committee. The city is responsible for allocating local budget funds to repay according to the law.

The total debt amount raised for projects and works within the city budget's responsibilities as stipulated in points a and b above shall not exceed 30% of the total basic construction investment capital of the city budget as decided annually by the Municipal People's Council (excluding funds raised for investment in projects as prescribed by law and stable supplementary funds from the central budget to the city budget).

c) Da Nang City may implement a mechanism to partially subsidize interest rates for organizations when they borrow funds to invest in important projects capable of recovering capital (industrial park development, environmental services, public sanitation, drainage...), within the scope and capacity of the city budget and in accordance with the law.

d) Prioritize allocating Official Development Assistance (ODA) funds to Da Nang City for projects without the ability to recover capital, to invest in important infrastructure projects within the city budget's responsibilities. The city budget must ensure the matching funds for these projects.

đ) Regarding the effective mobilization and utilization of land use fees for economic and social development in Da Nang City: based on the approved planning, the city can use the local budget and other sources of fundraising according to regulations to invest in land clearance projects, compensation and resettlement, housing projects for resettlement, and technical infrastructure projects to create land reserves, thereby conducting land use rights auctions according to regulations, generating capital for development and repaying previously advanced funds and other raised funds.

3. Regarding the acceptance of aid:

Da Nang City can accept non-reimbursable foreign aid regardless of the size of the aid, except for aid related to institutions, policies, laws, administrative reform, and information culture as stipulated in Article 6 of Decision No. 64/2001/QD-TTg dated April 26, 2001 of the Prime Minister on the Management and Use of Non-Governmental Aid Funds.

Article 2. Except for the provisions of this Decision, other contents regarding the financial system and state budget for Da Nang City shall still be implemented in accordance with the current State Budget Law and Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the State Budget Law.

The Ministry of Finance shall take the lead and coordinate with relevant agencies to organize the implementation and provide specific guidance on the contents prescribed in this Decision, ensuring compliance with the provisions of the law.

Article 3. This Decision takes effect fifteen days from the date of publication in the Official Gazette.

Article 4. The Minister of Finance, the Minister of Planning and Investment, the Governor of the State Bank of Vietnam, the Chairman of the People's Committee of Da Nang City, and the Heads of relevant agencies are responsible for enforcing this Decision./.