Circular No. 133/2007/TT-BTC amends and supplements certain points of Circular No. 28/2007/TT-BTC dated April 3, 2007, issued by the Ministry of Finance, guiding the management, allocation, payment, and settlement of investment capital from government bond sources.

CIRCULAR

Amending and supplementing certain points of Circular No. 28/2007/TT-BTC dated April 3, 2007 of the Ministry of Finance guiding the management, allocation, payment, and settlement of investment capital from government bond sources Pursuant to Decrees No. 52/1999/NĐ-CP dated July 8, 1999 of the Government on the issuance of the Investment Management and Construction Regulation, No. 12/2000/NĐ-CP dated May 5, 2000 and No. 07/2003/NĐ-CP dated January 30, 2003 of the Government amending and supplementing certain provisions of the Investment Management and Construction Regulation, No. 16/2005/NĐ-CP dated February 7, 2005 of the Government on Project Management for Construction Investment, No. 112/2006/NĐ-CP dated September 29, 2006 of the Government amending and supplementing certain provisions of Decree No. 16/2005/NĐ-CP dated February 7, 2005, and Decree No. 99/2007/NĐ-CP dated June 13, 2007 of the Government on the management of construction investment costs; Pursuant to Decision No. 182/2003/QĐ-TTg dated September 5, 2003 of the Prime Minister on the issuance of government bonds for investment in important transportation and water conservancy projects, and Decision No. 171/2006/QĐ-TTg dated July 24, 2006 of the Prime Minister on the issuance and utilization of government bonds during the period 2003-2010;

______________________ 

Pursuant to the State Budget Law No. 01/2002/QH11 dated December 16, 2002;

The Ministry of Finance amends and supplements certain points of Circular No. 28/2007/TT-BTC dated April 3, 2007 of the Ministry of Finance guiding the management, allocation, payment, and settlement of investment capital from government bond sources as follows:

1. Amend Point 5 of Part I as follows:

“5. Capital disbursement agencies:

5.1. The State Treasury controls and disburses capital for projects managed by Ministries and provincial People's Committees.

5.2. The Ministry of National Defense controls and disburses capital for border patrol road projects pursuant to the Prime Minister’s Decision (excluding ongoing projects currently controlled and disbursed by the State Treasury).

2. Amend Points 1 (1.2, 1.3) of Part II as follows:

“1.2 Review of capital allocation:

- For projects under the management of Ministries and sectors:

Based on the registration of the government bond investment capital plan of the Ministries (according to Form 1/TPCP attached hereto), the Ministry of Finance reviews and provides comments to the Ministries regarding projects that lack necessary investment procedures and do not meet the conditions for capital allocation. These comments are also sent to the State Treasury. The Ministries are responsible for reallocating according to current regulations, sending to the Ministry of Finance and the State Treasury for allocation and payment. The registration and reallocation of investment capital by the Ministries in accordance with regulations are the basis for allocation and payment.

- For projects under local management:

Based on the registration of the government bond investment capital plan of the province (according to Form 1/TPCP attached hereto), the Ministry of Finance reviews and provides comments to the provincial People's Committee regarding projects that lack necessary investment procedures and do not meet the conditions for capital allocation. These comments are also sent to the Provincial Department of Finance. The provincial People's Committee is responsible for reallocating according to current regulations. Based on the registration of the province and the document of the Ministry of Finance, the Provincial Department of Finance notifies the provincial State Treasury to make payments.

1.3 Documents serving as the basis for reviewing capital allocation:

Project sponsors of projects managed by Ministries send relevant project documents to the Ministry of Finance, and sponsors of projects managed by provinces send relevant project documents to the Ministry of Finance and the Provincial Department of Finance (these documents are only submitted once until the end of the project, except in cases requiring supplementation or adjustment), including:

- For preparatory projects: approval documents for the budget of preparatory work expenses.

- For implementation projects: the construction project proposal (or economic-technical report for projects only preparing such reports) accompanied by the investment decision of the competent authority, and any adjustment decisions (if applicable)”.

3. Amend Point 3 of Part II as follows:

“3. Regarding advance capital payments and capital payments:

The mechanism for advance capital payments and capital payments shall be implemented similarly to projects funded by state budget capital”.

4. Amend Point 4 (4.1) of Part II as follows:

“4. Adjustment of capital payment plans:

4.1 If the actual progress and capital payment needs of projects during the year differ from the initial registered capital plan, Ministries and provincial People's Committees adjust the capital levels of projects that cannot be implemented, increasing the capital levels for projects that can exceed their planned progress. Adjustments must adhere to the principle of not exceeding the capital level of each project, not exceeding the sectoral level, and not exceeding the total government bond capital allocated by the Prime Minister for the 2003-2010 period. To align with the timing of government bond issuance, the deadline for annual capital investment adjustment is October 31.

Ministries and provincial People's Committees submit reports on adjusted project capital plans (if any) to the Ministry of Finance to proactively adjust government bond issuance levels”.

5. Amend Point 5 of Part II as follows:

“5. Regarding capital transfer, accounting, and capital settlement:

5.1 Capital transfer:

- For projects managed by Ministries and provinces:

+ Based on the annually registered government bond investment capital plan that has been reviewed by the financial agency and the actual quarterly capital payment needs of projects within their jurisdiction (including both Ministry-managed and province-managed projects), the provincial State Treasury prepares a quarterly capital payment plan and sends it to the central State Treasury, simultaneously sending a copy to the Provincial Department of Finance (for locally managed projects). The deadline for submitting the quarterly capital payment plan to the central State Treasury is the 15th day of the last month of each quarter.

+ Based on the quarterly capital payment plan of the provincial State Treasury, the central State Treasury aggregates, balances, allocates, and transfers capital to the provincial State Treasury for payment of projects within their jurisdiction. For locally managed projects, each payment, the provincial State Treasury sends a copy of the capital investment payment request form, which has been approved for payment by the State Treasury, to the Provincial Department of Finance to facilitate its management functions.

On the basis of the annual bond issuance plan registration that has been reviewed by the financial authority and the actual quarterly capital payment needs of projects within the jurisdiction (including projects managed by ministries and those managed by the province), the Provincial Treasury establishes a quarterly capital payment plan to send to the Central Treasury, simultaneously sending it to the Department of Finance (for locally-managed projects). The deadline for submitting the quarterly capital payment plan to the Central Treasury is the 15th day of the last month of each quarter.

Based on the quarterly capital payment plan of the Provincial Treasury, the Central Treasury consolidates, balances, allocates funds, and transfers capital to the Provincial Treasury for project payments within the jurisdiction. For projects managed by localities, with each payment, the Provincial Treasury sends one copy of the Capital Investment Payment Request Form, which has been approved for payment by the Treasury, to the Department of Finance to facilitate its management work.

- For border patrol road projects under the control of the Ministry of National Defense for settlement, based on the capital settlement needs of the projects, the Ministry of National Defense shall prepare quarterly capital settlement plans to send to the State Treasury (Central) and simultaneously send to the Ministry of Finance on the 15th day of the last month of each quarter. Based on the quarterly settlement plan and the actual results of the previous quarter's settlements by the Ministry of National Defense, the State Treasury (Central) will transfer funds to the Ministry of National Defense for settlement.

- The State Treasury shall promptly transfer funds to the Ministry of National Defense to ensure sufficient sources for settlement and avoid accumulation of funds at the end of the annual settlement period.

- The State Treasury (Central) shall report to the Ministry of Finance the issuance plan; the plan for transferring settlement funds.

5.2 Settlement and accounting of capital:

- Project sponsors shall settle the annual investment capital according to the current regulations on state budget investment capital but separately settle the government bond capital.

- Ministries and provincial People's Committees responsible for managing and implementing investment projects funded by government bonds shall consolidate and separately settle the investment capital from government bond sources with the Ministry of Finance (not consolidated into state budget capital).

- The State Treasury shall organize separate accounting and monitoring of government bond capital, annually settling with the financial authority as prescribed.

- The Ministry of National Defense shall settle with the Ministry of Finance regarding the government bond capital already paid out for assigned projects under its control and settlement.

- The settlement of investment project capital for completed projects shall be carried out according to the current regulations on the settlement system for investment capital funded by state budget capital.

6. Amend Point 6(6.2) of Part II as follows:

“6.2 Reporting System:

- For project sponsors, ministries, and provinces: implement the reporting system as stipulated in Decision No. 52/2007/QD-TTg dated April 16, 2007, of the Prime Minister on the Reporting System for the Implementation of State Investment Capital Plans, and Circular No. 05/2007/TT-BKH dated August 9, 2007, of the Ministry of Planning and Investment on the issuance of reporting forms and guidelines for implementing Decision No. 52/2007/QD-TTg dated April 16, 2007.

- For the State Treasury:

+ Implement the information reporting system as prescribed by the Ministry of Finance.

+ Monthly, the provincial State Treasury shall report to the Department of Finance the detailed settlement situation according to projects managed by the locality for the Department of Finance to compile and report to the Provincial People's Committee; simultaneously report to the State Treasury (Central) the detailed settlement situation according to projects managed by ministries and the total amount of settlement for projects managed by localities.

The State Treasury (Central) shall report to the Ministry of Finance the detailed settlement situation according to projects managed by ministries, the total amount of settlement for projects managed by localities (by province), and the situation of transferring funds to the Ministry of National Defense.

+ Quarterly, every six months, and annually, the provincial State Treasury shall report to the Department of Finance the detailed settlement situation according to projects managed by the locality for the Department of Finance to compile and report to the Provincial People's Committee, while simultaneously reporting to the State Treasury (Central) the detailed settlement situation according to projects managed by ministries and detailed settlement situations according to projects managed by localities.

The State Treasury (Central) shall report to the Ministry of Finance the detailed settlement situation according to projects managed by ministries and localities and the situation of transferring funds to the Ministry of National Defense.

(See Table 2/TPCP attached to this Circular)

- Quarterly, annually, or at any time, the Ministry of Finance and the Ministry of Planning and Investment shall compile and report to the Prime Minister according to Decision No. 171/2006/QD-TTg dated July 24, 2006, and Decision No. 52/2007/QD-TTg dated April 16, 2007, of the Prime Minister on the Reporting System for the Implementation of State Investment Capital Plans.”

7. Effective Date: This Circular shall take effect 15 days after its publication in the Official Gazette. The State Treasury shall provide guidance on handling related issues to implement this Circular.

For the Son La Hydropower Plant Resettlement Project, the management, allocation, settlement, and capital settlement (including provisions in Circular No. 28/2007/TT-BTC dated April 3, 2007, which are not adjusted by this Circular) shall be implemented according to specific guidance from the Ministry of Finance.

                                                                   CERTIFIED BY THE MINISTER
                                                                   VICE MINISTER

                                                                             SIGNED

                                                                     Nguyen Cong Nghia