Decision No. 131/2009/QD-TTg On certain preferential policies, incentives for investment and management, operation of rural clean water supply works

Pursuant to …;

ON CERTAIN PREFERENTIAL POLICIES AND INCENTIVES FOR INVESTMENT IN AND MANAGEMENT AND EXPLOITATION OF RURAL CLEAN WATER INFRASTRUCTURE

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;
Pursuant to Decree No. 117/2007/NĐ-CP dated July 11, 2007 of the Government on production, supply, and consumption of clean water;
Pursuant to Decree No. 69/2008/NĐ-CP dated May 30, 2008 on policies to encourage socialization in education, healthcare, vocational training, culture, sports, and environmental activities;
Considering the proposal of the Minister of Agriculture and Rural Development,

Pursuant to …;

Article 1. Scope of Regulation

1. This Decision stipulates preferential policies, support, and incentives for investment projects in constructing rural clean water infrastructure (including new construction or renovation and upgrading) and management and exploitation of centralized clean water infrastructure serving community needs in rural areas.

2. Small-scale water supply facilities not covered by this Decision.

Article 2. Applicability

This Decision applies to enterprises operating under the Law on Enterprises, public service units, cooperatives, cooperative groups, and individuals engaged in investment, technology transfer, management and exploitation, production and business, and services related to rural clean water.

Article 3. Conditions and Principles for Implementation

1. Conditions:

Organizations and individuals must have plans for organizing production, business, and services, technology transfer; possess management and exploitation capabilities, and commit to providing clean water services to rural communities according to approved projects by competent authorities.

Clause 2. Implementation principles:

a. Rural clean water projects and facilities must comply with planning and meet criteria regarding scale and standards as prescribed to improve community living standards.

b. Assets formed from state budget funds, ODA funds, community contributions, and donations for building rural clean water facilities can only be used for community benefit purposes and cannot be divided or used for other purposes.

Article 4. Encouragement and Support Policies in Rural Clean Water Activities

1. Land Preferential Policies:

a. Projects and facilities for rural clean water serving communities shall be granted land with payment for land use rights and exempted from land use fees, or leased land with exemption from land use fees by the State.

b. Land granted or leased by the State shall not be included in the project's asset value, nor shall it be converted, transferred, gifted, leased, mortgaged, or pledged as collateral for loans, or contributed as capital for joint production and business ventures.

c. The use of granted or leased land must comply with its intended purpose and relevant laws on land; if used improperly or inefficiently, the State will reclaim it.

2. Tax Preferential Policies:

a. Organizations and individuals deriving income from managing and exploiting rural clean water projects and facilities shall enjoy corporate income tax preferences as stipulated in Article 8 of Decree No. 69/2008/NĐ-CP dated May 30, 2008 of the Government on policies to encourage socialization in education, vocational training, healthcare, culture, sports, and environmental activities.

b. For entities engaging in multiple types of business activities, apart from those specified in point a, Clause 2, of this Article, they must fulfill their tax obligations as prescribed by law.

3. Support from the State Budget and Capital Mobilization:

Organizations and individuals investing in rural water projects and facilities:

a. Shall receive support from state budget funds up to the total approved project budget estimate by competent authorities:

+ Not exceeding 45% for townships and market towns;

+ Not exceeding 60% for plains and coastal regions;

+ Not exceeding 75% for other rural areas;

+ Not exceeding 90% for particularly difficult communes, ethnic minority and mountainous regions, coastal and island regions, and border communes.

Part on state budget funds for investment in building rural clean water supply projects in localities not classified as economically and socially disadvantaged areas, with the ability to cover costs accurately and sufficiently according to regulations, must be repaid to the state budget through basic depreciation of fixed assets. The People's Committee of provinces and centrally governed cities shall decide the level of charges, the objects of charges, and the use of such revenues.

b. Shall be entitled to borrow preferential credit in accordance with current regulations.

c. Shall be prioritized to refinance from sources of capital lent to the Government of Vietnam by international organizations on preferential terms.

d. Shall be permitted to raise capital in the form of share contributions, capital contributions from workers within the unit, community; to mobilize other lawful sources of capital through cooperation, joint ventures, and associations with enterprises, economic organizations, financial institutions, individuals both domestically and internationally.

4. Price subsidy support for rural clean water:

In cases where the price of clean water sold, as decided by the People's Committee of provinces and centrally governed cities, is lower than the cost calculated accurately and sufficiently according to regulations, then annually the People's Committee of provinces and centrally governed cities shall examine and subsidize from the local budget to ensure the rights and legitimate interests of water supply units.

Article 5. Management and operation models for rural clean water supply projects:

1. Depending on specific conditions regarding project scale, water supply technology, water treatment, and socio-economic characteristics of each locality, one of the following models may be applied:

a. Private management and operation.

b. Cooperative management and operation.

c. Public service organization management and operation, including: Rural Clean Water and Environmental Sanitation Centers, Water Supply Management Boards...

d. Enterprise management and operation, including: Joint Stock Companies, Limited Liability Companies, State-owned Limited Liability Companies, Waterworks Management and Exploitation Enterprises...

2. Organizations and individuals meeting the required conditions may manage, operate, and exploit rural clean water supply projects according to agreed-upon forms, bidding, or ordering services as stipulated by current regulations.

Article 6. Handling of assets when changing organizations or individuals providing rural clean water supply services

1. For assets and projects funded by the state budget or originating from the state budget:

a. When changing the management and exploitation of rural clean water supply facilities, an inventory and revaluation of assets must be conducted to recover and transfer them to other organizations or individuals for management, exploitation, and provision of services.

b. The transfer or leasing, renting, or selling of state-owned assets shall be decided by the People's Committees of provinces and centrally governed cities and in accordance with current regulations.

Organizations and individuals entrusted with managing and exploiting rural clean water supply facilities funded by the state budget or originating from the state budget shall be responsible for paying depreciation of fixed assets invested by the state budget or originating from the state budget into the local budget to create funding for clean water supply projects and expand beneficiaries. The People's Committees of provinces and centrally governed cities shall decide the level of charges, methods of collection, submission, and use of these revenues.

c. In cases where there is no organization or individual willing to lease, rent, or purchase the assets or projects, the People's Committees of provinces and centrally governed cities shall consider and decide to entrust them to public service organizations or village People's Committees, community residents at that location for management, exploitation, and operation, without allocating them to any other organizations or individuals.

d. In cases where assets or projects are no longer usable, the People's Committees of provinces and centrally governed cities shall direct competent agencies to organize the liquidation of state-owned assets according to current regulations.

2. For assets and projects formed from sources outside the state budget or without origins from the state budget, when transferring ownership, reselling, or restructuring into other types of enterprises, they shall be carried out in accordance with relevant laws.

Article 7. Implementation Organization

1. The Ministry of Agriculture and Rural Development shall be responsible for performing state management functions over clean water supply activities in rural areas nationwide.

2. Ministries: Planning and Investment, Finance, Education and Training, Health, Construction, Natural Resources and Environment, and related agencies according to their functions, tasks, and authorities shall be responsible for coordinating with the People's Committees of provinces and centrally governed cities to implement policies under this Decision.

3. Provincial People's Committees directly under the Central Government shall have the responsibility:

a. Coordinate with ministries and sectors to establish comprehensive planning for rural clean water supply within the scope of the locality as a basis for developing support projects, plans, and investment promotion plans.

b. Implement state management over activities in the field of rural clean water supply according to approved planning, ensuring continuous clean water supply operations, sustainable environmental protection; specify detailed division of responsibilities among specialized agencies and lower-level People's Committees to perform tasks.

c. Issue mechanisms, policies, and incentives to attract investors to implement projects in the province within their authority, in accordance with relevant laws.

d. Regularly and urgently inspect the operation of clean water supply projects, water quality; promptly address complaints, reports about water quality or operational situations of organizations and individuals providing rural clean water services.

đ. Regularly and urgently inspect the operation of clean water supply projects, water quality; promptly address complaints, reports about water quality or operational situations of organizations and individuals providing rural clean water services.

e. Direct provincial functional agencies and lower-level People's Committees to implement measures to ensure social order and safety, and create favorable conditions for investors throughout the investment and exploitation process, while ensuring the rights of users and the community.

g. Direct the lower-level People's Committees to implement the procedures for community participation and supervision in the process of building and organizing the implementation of rural clean water supply services in accordance with the provisions of the law.

h. Develop plans and organize the implementation of support for training human resources serving the field of rural clean water supply, ensuring the needs of this field are met, prioritizing implementation in difficult and particularly difficult areas.

Article 8. This Decision takes effect from January 1, 2010.

Article 9. Ministers, heads of ministerial-level agencies, heads of government agencies, and Chairpersons of Provincial People's Committees and Municipal People's Committees directly under the Central Government shall be responsible for enforcing this Decision.