Decision No. 132/2001/QD-TTg On the financial mechanism for implementing the program to develop rural transportation roads, aquaculture infrastructure, and rural craft villages

Pursuant to …;

Regarding the financial mechanism for implementing the program to develop rural transportation infrastructure, aquaculture infrastructure, and village craft infrastructure in rural areasin rural areas

PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to Resolution No. 05/2001/NQ-CP dated May 24, 2001 of the Government;

At the proposal of the Minister of Finance,

DECISION:

Article 1. The State encourages localities to mobilize all resources and effectively implement the program to develop rural transportation infrastructure, aquaculture infrastructure, and village craft infrastructure in rural areas.

Article 2. The Chairman of the People's Committee of provinces and centrally governed cities shall be responsible for reviewing and approving investment projects for rural transportation infrastructure, aquaculture infrastructure, and village craft infrastructure in rural areas in accordance with current regulations.

Article 3. Regarding the financial mechanism:

1. Sources of capital contributions from the people and state budget support:

Investment projects for constructing rural transportation infrastructure, aquaculture infrastructure, and village craft infrastructure in rural areas must be implemented primarily through the mobilization of contributions from the people (in cash, in kind, labor days...), the state will consider providing partial support; provincial and centrally governed city people's committees have the responsibility to balance the local budget annually to address this (from centralized construction investment funds, from funds returned for investment according to the National Assembly Resolution...); specific investment levels are determined by the provincial and centrally governed city people's committees and submitted to the provincial and centrally governed city People's Councils for decision.

For mountainous provinces and provinces with limited local revenue sources for investment, the central government will provide partial support through the annual construction investment plan of the locality.

2. Regarding credit capital:

In addition to the people's contribution and state budget support as stipulated in Clause 1, Article 3, the State will allocate preferential credit capital with zero interest rate (0%) for provinces and centrally governed cities to borrow for implementing projects on rural transportation development, aquaculture infrastructure, and village craft infrastructure in rural areas. This preferential credit capital will be balanced within the national credit capital for development investment and allocated according to the annual plan.

a) Loan mechanism: If the local budget does not ensure sufficient capital to implement the aforementioned programs in the annual plan, it can borrow from the preferential credit capital as prescribed for investment.

b) Repayment period: After one year of starting repayment, the repayment period is four years; for mountainous provinces and provinces with difficult local revenue, the repayment period for each loan does not exceed five years.

c) Source of loan repayment: From retained investment revenue according to the National Assembly Resolution, economic service funds balanced in the local budget, and annual centralized construction investment funds recorded in the plan for loan repayment.

Provincial and centrally governed city people's committees shall commit in writing to allocate sufficient funds for loan repayment in the annual local budget estimate.

Article 4. Implementation organization:

1. Provincial and centrally governed city people's committees shall be responsible for:

a) Approving investment projects for rural transportation infrastructure, aquaculture infrastructure, and village craft infrastructure in rural areas within their jurisdiction; balancing various sources of investment capital to implement these projects;

b) Determining the total investment capital and allocating specific sources of capital for each area of investment in rural transportation infrastructure, aquaculture infrastructure, and village craft infrastructure in rural areas. Among them: Balancing local self-raised capital; requesting loans for the shortfall from the local budget; preparing plans for borrowing and repaying loans and submitting them to the Ministry of Planning and Investment, the Ministry of Finance, and the Development Support Fund.

2. The Ministry of Planning and Investment, in collaboration with the Ministry of Finance and relevant agencies, shall coordinate to balance and submit to the Prime Minister for approval the level of support for investment capital from the budget and the amount of credit capital for annual loans to localities to implement the plan for rural transportation development, aquaculture infrastructure, and village craft infrastructure in rural areas;

3. Annually, the Ministry of Finance, based on the approved total investment capital and loan capital for rural transportation infrastructure, aquaculture infrastructure, and village craft infrastructure in rural areas, and considering the local budget's ability to repay debt, shall decide on the amount of credit capital for loans to each province and centrally governed city; allocate funds to cover the interest rate differential and loan fees for the Development Support Fund according to the prescribed regulations.

4. The Development Support Fund shall implement lending to provinces and centrally governed cities (not directly lending to individual projects), and shall be responsible for recovering borrowed capital when due; calculating the need for subsidized interest rates and fees according to the prescribed regulations and sending them to the Ministry of Finance. Regularly reporting to the Prime Minister on implementation results and sending reports to relevant ministries and sectors.

5. In 2001, the State will allocate 10,000 billion VND from the investment credit fund (outside the 5,000 billion VND allocated according to Decision No. 41/2001/QĐ-TTg dated March 26, 2001 of the Prime Minister) for localities to borrow under the provisions of this Decision and the project implementing the program to reinforce irrigation channels according to Decision No. 66/2000/QĐ-TTg dated June 13, 2000 of the Prime Minister.

Article 5. The Ministry of Transport, the Ministry of Agriculture and Rural Development, and the Ministry of Fisheries shall cooperate with provinces and centrally governed cities to guide the implementation of building rural transportation infrastructure, village craft infrastructure in rural areas, and aquaculture infrastructure according to their assigned functions and tasks.

Article 6. THIS DECISION SHALL TAKE EFFECT 15 DAYS AFTER THE DATE OF SIGNATURE.

Article 7. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial and centrally-administered city People's Committees are responsible for implementing this Decision.