Circular No. 135/1999/TT-BTC guiding the management of capital investment and operational funds with investment characteristics for construction projects from state budget sources.

CIRCULAR

Guidelines for managing the payment of investment capital and operational funds with investment characteristics and construction from state budget sources

having investment characteristics and construction from state budget sources

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Pursuant to the State Budget Law promulgated on March 20, 1996;

Pursuant to Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government regarding the issuance of the Investment Management and Construction Regulation;

Pursuant to Decree No. 145/1999/NĐ-CP dated September 20, 1999 of the Government on restructuring the Investment Development General Department under the Ministry of Finance;

The Ministry of Finance guides the management and settlement of investment capital and operational capital with investment characteristics and construction from state budget funds as follows:

Part I

GENERAL PROVISIONS

1. State budget capital (including domestic capital at all levels of the state budget, foreign loans of the Government, and foreign aid to the Government, local authorities, and state agencies) shall only be allocated to investment projects that fall within the scope of state budget capital usage as stipulated by the State Budget Law and the Investment Management and Construction Regulation.

2. Investment projects using state budget capital must have complete investment and construction procedures, be included in the annual national investment plan, and meet the conditions for capital allocation according to the Investment Management and Construction Regulation and this Circular.

3. Financial agencies at all levels shall implement management of investment capital and operational funds with investment characteristics and construction from state budget sources and investment projects using other state capitals. The National Treasury agencies at all levels shall be responsible for strictly monitoring each stage of the payment process, ensuring timely, full, and correct payment of capital according to regulations for projects that meet the conditions for capital payment according to project progress; while also identifying and promptly preventing improper use of capital for purposes other than intended, causing waste and loss of state capital.

4. Ministries, ministerial-level agencies, government agencies, state-owned corporations, associations, and mass organizations (hereinafter referred to as ministries), provincial People's Committees under central cities (hereinafter referred to as provincial People's Committees), investors, and related agencies shall be responsible for implementing state regulations on investment and construction management, using investment capital for its intended purpose, economically, and effectively, and complying with state financial management policies and regulations for investment development.

Part II

SPECIFIC PROVISIONS

I. INVESTMENT PROJECTS USING STATE BUDGET CAPITAL AND OPERATIONAL FUNDS WITH INVESTMENT CHARACTERISTICS AND CONSTRUCTION

1. Infrastructure projects in economic and social sectors without the ability to recover capital include:

- Transportation, water resources, education and training, healthcare.

- Upstream forest planting, protective forests, national parks, nature conservation areas.

- Animal and plant quarantine stations, research centers for new breeds and breed improvement.

- Construction of cultural, social, sports, and public welfare facilities.

- State administration, science and technology.

- Environmental protection in regions and territories.

2. Defense and security projects without the ability to recover capital.

3. Supporting investment projects of enterprises in necessary fields involving state participation as prescribed by law.

4. Comprehensive planning projects for regional and territorial socio-economic development, industry development planning, overall urban and rural construction planning, detailed planning for central cities, and detailed land use planning.

5. Projects funded by operational expenditure in the state budget to repair, upgrade, expand, and improve existing facilities (with a value of 20 million dong or more) to restore or increase the value of fixed assets.

Operational funds shall not be allocated for new construction projects, except in cases decided by the Prime Minister.

6. Other investment projects as decided by the Government.

7. Investment projects funded by basic depreciation of fixed assets formed from state budget investment capital and retained earnings of state-owned enterprises for reinvestment, guided by separate documents.

II. ESTABLISHING AND ANNOUNCING THE INVESTMENT CAPITAL PLAN AND OPERATIONAL FUNDS WITH INVESTMENT CHARACTERISTICS AND CONSTRUCTION

1. Annual Plan:

1.1- During the preparation of the annual state budget estimate according to the State Budget Law, based on the project implementation progress and inspection results reported by ministries and provincial People's Committees, the investor builds the project's investment capital plan and submits it to the ministry (for centrally managed projects) and provincial People's Committee (for locally managed projects).

Based on the need for repair, upgrade, expansion, and improvement of existing facilities of agencies and units, the investor builds the investment expenditure plan using operational funds, consolidated in the state budget estimate, and submits it to the superior agency according to the State Budget Law and guiding documents of the State Budget Law.

1.2- Ministries and provincial People's Committees aggregate and prepare the investment capital plan and submit it to the Ministry of Finance and the Ministry of Planning and Investment.

1.3- Based on the national socio-economic development plans and major economic balances of the national economy, the Ministry of Finance coordinates with the Ministry of Planning and Investment to allocate the investment capital plan to each ministry, provincial People's Committee, and important state projects.

The Department of Finance and Price participates with the Department of Planning and Investment in allocating investment capital to each locally managed project.

1.4- After being assigned the budget by the Government, ministries and provincial People's Committees allocate investment capital to each project under their jurisdiction, ensuring alignment with the total investment target; domestic and foreign capital structure; economic sector structure; capital for important state projects; and compliance with the Government's guidance on socio-economic development plans and annual state budget estimates.

1.5- After allocating investment capital to each project, ministries and provincial People's Committees send the investment capital plan to the Ministry of Finance for review on the following aspects:

- Ensuring the conditions of the project allocated investment capital as stipulated in Point 1, Section III, Part II of this Circular.

- Alignment with the targets set by the Government for total investment, domestic and foreign capital structure, economic sector structure, and capital for important state projects.

- Compliance with the principles of plan allocation. Group C projects within the authority of ministries and provincial People's Committees to allocate plans must have investment decisions made before October of the previous year and must allocate sufficient capital to implement the project within two years.

After reviewing, if the implemented plan does not meet the above requirements, the Ministry of Finance shall issue a document requesting adjustments. In cases where ministries and provincial People's Committees do not make adjustments or have made adjustments but still do not comply with regulations, the Ministry of Finance shall report to the Prime Minister for decision, and at the same time, the financial agency shall not transfer funds to the State Treasury for payment.

The Department of Finance and Prices shall review the list of projects included in the local investment construction plan according to the provisions above, and in addition, projects funded by sources left over according to the National Assembly Resolution and Government Decision must comply with the investment target regulations and the usage regulations for each source of investment capital. If the implemented plan does not meet the regulations, the Department of Finance and Prices must issue a document reporting to the Provincial People's Committee for consideration and adjustment, and shall not transfer money to the State Treasury for payment.

1.6- Based on the allocated plan or after adjusting in accordance with the relevant regulations:

- Ministries and provincial People's Committees shall assign project targets to investors for implementation, and simultaneously send them to the State Treasury agency for monitoring, serving as the basis for controlling and paying capital.

- For projects managed centrally, the Ministry of Finance shall notify the central State Treasury about the investment capital plan for serving as the basis for paying capital to the projects.

- For projects managed locally, the Department of Finance and Prices shall notify the provincial State Treasury about the investment capital plan for serving as the basis for paying capital to the projects.

2. Quarterly Plan:

The content of the quarterly investment capital plan and the capital for public services with investment characteristics must reflect the value of the completed volume from the previous quarter and the cumulative total from the beginning of the year to the end of the previous quarter; the temporarily advanced capital, recovered temporarily advanced capital, and paid capital from the previous quarter and the cumulative total from the beginning of the year to the end of the previous quarter; the estimated value of the volume to be completed in the current quarter; the need for temporarily advanced capital and capital to be paid in the current quarter.

2.1- Based on the assigned investment capital plan and the project progress, the investor shall prepare a quarterly investment capital plan according to the above contents and send it to the State Treasury where the investor directly transacts by the 10th day of the last month of the previous quarter, and simultaneously send it to the Ministry or the provincial People's Committee.

2.2- The State Treasury agency has the responsibility to prepare a quarterly expenditure plan with the financial agency (Ministry of Finance, Department of Finance and Prices).

2.3- Based on the annual investment capital plan and budget capacity, the financial agency has the responsibility to allocate the quarterly expenditure level for the State Treasury and timely transfer capital to the State Treasury for paying capital to the investors.

2.4- For capital for public services with investment characteristics, based on the annual state budget estimate announced, the investor shall prepare a quarterly expenditure plan and send it to the State Treasury where the investor directly transacts for serving as the basis for controlling and paying capital.

III. CONDITIONS FOR PAYING INVESTMENT CAPITAL AND CAPITAL FOR PUBLIC SERVICES WITH INVESTMENT CHARACTERISTICS

Projects will be paid state budget capital when they meet the following conditions:

1. Having complete investment and construction procedures as follows:

1.1- Investment preparation:

- Document from the competent authority allowing the commencement of investment preparation.

- Budget for investment preparation costs approved by the competent authority.

1.2- Project implementation preparation:

- Feasibility study report and investment decision by the competent authority.

- Budget for project implementation preparation costs approved by the competent authority.

1.3- Implementation of investment:

- Feasibility study report and investment decision by the competent authority.

- Technical design and general budget, decision approving technical design and general budget. For group A and B projects that have not yet been approved for technical design and general budget, the investment decision must specify the capital amount for each project component and must have the design and budget for construction components to be implemented in the year approved by the competent authority.

2. Being allocated an investment capital plan as stipulated in point 1, Section II, Part II of this Circular.

3. Decision assigning the investor's task, establishing the Project Management Board (if required), appointing the Board Chair, Chief Accountant, or accounting supervisor.

4. Having organized bidding to select consultants, purchase equipment, and construction works in accordance with the Tendering Regulation (except for projects or tenders permitted to be direct award).

5. Meeting the conditions for temporary advance capital and having completed work volume meeting the conditions for payment capital as stipulated in Sections IV and V, Part II of this Circular.

6. For capital for public services with investment characteristics:

6.1- For repair, renovation, expansion, and upgrade projects with a value of 1 billion VND or more, the following conditions must be met:

- Included in the annual state budget estimate.

- Having an investment project and approval decision for the investment project.

- Having a document approving the tender result (for projects organizing bidding) or approval decision for the design budget (for projects permitted direct award).

- Having an economic contract signed between the investor and the contractor.

6.2- For repair, renovation, expansion, and upgrade projects with a value of 20 million VND to less than 1 billion VND, the following conditions must be met:

- Included in the annual state budget estimate.

- Having an investment report and approval decision for the investment report.

- Having a document approving the tender result (for projects organizing bidding) or approval decision for the design budget (for projects permitted direct award).

- Having a task assignment contract or economic contract between the investor and the contractor.

7. The investor must open an account at the State Treasury convenient for payment control and transaction convenience for the investor.

IV. TEMPORARY ADVANCE CAPITAL ISSUANCE AND RECOVERY

1. Eligible recipients for temporary advance capital:

- Investment projects organizing bidding under turnkey contracts.

- Construction works packages organizing bidding.

- Equipment procurement (including imported equipment and domestic equipment).

- Consulting contracts.

- Land clearance and compensation work.

- Certain other project expenses, such as project management body costs, land tax, or land use right transfer tax.

Investment projects or work volumes outside the aforementioned categories can only receive temporary advance capital upon Prime Minister's approval.

2. Conditions for receiving temporary advance capital:

2.1- For projects that implement bidding under turnkey contracts (bidding for all design, equipment supply, and construction works through a single contractor) and construction works packages that implement bidding:

- There must be a document approving the bidding results from the competent authority.

- There must be an economic contract between the project owner and the contractor.

- There must be a performance bond issued by the contractor.

2.2- For equipment procurement (including imported and domestic equipment):

- There must be a document approving the bidding results from the competent authority (for the portion of equipment subject to bidding).

- There must be an economic contract between the project owner and the supplier or manufacturer of the equipment. For imported equipment, there must also be a document approving the contract from the competent authority as stipulated by current regulations.

- There must be a performance bond issued by the contractor (for the portion of equipment subject to bidding).

2.3- For consultancy services that require hiring:

- There must be a document approving the bidding results from the competent authority (for consultancy work subject to bidding).

- There must be an economic contract between the project owner and the consultancy contractor.

2.4- For certain works included in other project costs:

- Land compensation and clearance work must have a compensation plan and approved cost estimate.

- Land acquisition fees, land taxes, or land use rights transfer fees must have a notice from the relevant authority requiring the project owner to pay.

- Project management team operating costs must have an approved cost estimate.

3. Temporary Funding Amount:

3.1- For projects implementing bidding under turnkey contracts:

- Advance payments for equipment procurement shall be based on payment progress (as specified in paragraph 3.3 below).

- The remaining advance payment shall be 15% of the tender value, but not exceeding the annual capital plan allocated for these works.

3.2- For construction works:

- For tenders valued under 10 billion VND, the advance payment level is 20% of the contract value, but not exceeding the annual capital plan of the tender.

- For tenders valued from 10 billion VND to less than 50 billion VND, the advance payment level is 15% of the contract value, but not exceeding the annual capital plan of the tender.

- For tenders valued at 50 billion VND or more, the advance payment level is 10% of the contract value, but not exceeding the annual capital plan of the tender.

In cases where the annual capital plan for the tender is lower than the advance payment level prescribed above (the tender has not been allocated sufficient advance payment according to the prescribed ratio), the State Treasury will continue to provide advance payment within the next year's plan until the advance payment ratio reaches the prescribed level.

3.3- For equipment procurement:

- The advance payment amount is the sum that the project owner must pay according to the contract, but not exceeding the annual capital plan. If the capital plan does not meet the funding needs for contract payments, the project owner is responsible for finding additional funding sources.

- Advance payments are made according to the payment progress of the project owner to the equipment supplier or manufacturer as stipulated in the economic contract and continue until the equipment is stored in the project owner's warehouse (for non-installation equipment) or installed and accepted (for installation equipment).

3.4- For consultancy contracts, the advance payment level ranges from 25% to 50% of the tender value, but not exceeding the annual capital plan allocated for consultancy work.

3.5- For land compensation and clearance work, the advance payment level is based on the necessary funds for compensation work, but not exceeding the annual capital plan allocated for land compensation and clearance work.

3.6- For certain works included in other project costs that receive advance payments, the State Treasury will consider the project owner's need for advance payments (notification requesting payment, project management team cost estimates) to provide advance payments, but not exceeding the annual capital plan allocated for such works.

4. Recovery of advance payments:

4.1- Advance payments for construction contracts are gradually recovered during each period of payment for completed construction volumes as follows:

- The start time for recovering advance payments:

+ Procurement packages valued under 10 billion VND: when payments reach 30% of the contract value.

+ Procurement packages valued from 10 billion VND to under 50 billion VND: when payments reach 25% of the contract value.

+ Procurement packages valued at 50 billion VND or more: when payments reach 20% of the contract value.

- All advance payments are recovered when the tender is paid for 80% of the completed construction volume value.

- The amount of advance payment recovered in each period is determined as follows:

+ When the payment for completed volume reaches 50% of the contract value, the advance payment recovery reaches 40% of the total advance payment.

+ When the payment for completed volume reaches 70% of the contract value, the advance payment recovery reaches 80% of the total advance payment.

+ When the payment for completed volume reaches 80% of the contract value, the advance payment recovery reaches 100% of the total advance payment.

In cases where advance payments have not been fully recovered due to the tender not reaching the prescribed percentage but the project is not continued or suspended, the project owner must explain to the State Treasury about the use of unrecovered advance payments and report to the competent authority for handling.

In cases where advance payments have been provided but the tender has not commenced construction within the time limit stipulated in the contract, the project owner must explain to the State Treasury and is responsible for refunding the advance payments already received.

4.2- Advance payments for equipment procurement are recovered with each payment for completed equipment volume.

For non-installation equipment, once the equipment has been accepted and stored in the project owner's warehouse, the project owner must immediately submit documentation to the State Treasury to process payment for completed equipment volume and recover the advance payments.

For installation equipment, once the equipment arrives at the project owner's warehouse, the project owner must report to the State Treasury for monitoring; once the equipment is installed and accepted, the project owner must immediately submit documentation to the State Treasury to process payment for completed equipment volume and recover the advance payments. The State Treasury will recover all advance payments for equipment upon completion of the installation payment.

In cases where advance payments have been provided but the equipment has not been received within the time limit stipulated in the contract, the project owner must explain to the State Treasury and is responsible for refunding the advance payments.

4.3 The advance capital for consultancy contracts shall be recovered in installments upon payment for completed consultancy work volumes according to the following principles:

- The recovery of the advance payment shall occur at the start of payment for completed work volumes.

- The amount recovered equals the payment amount multiplied by (x) the provisional advance ratio.

4.4 The advance capital for land compensation and clearance works and other project costs shall be recovered once during the period of payment for completed work volumes.

4.5 The level of recovery of advance capital for various types of contracts may exceed the above regulations if the project owner and contractor agree on such a proposal.

5 For certain construction materials that are components or semi-finished products with significant value, which need to be produced in advance to ensure the progress of construction projects and special materials that require seasonal storage, if it is necessary to temporarily allocate more capital than stipulated above, the project owner must report to the Ministry of Finance for decision-making or report to the State Treasury agency for decision-making when authorized by the Ministry of Finance. The advance capital will be recovered upon payment for completed construction work volumes that include these materials.

6 For public expenditure funds with investment characteristics and construction:

- Projects with a capital scale of 1 billion VND or more, the allocation and recovery of advance capital shall be carried out according to the current management system for investment capital.

- Projects with a capital scale under 1 billion VND shall be allocated temporary advance capital equivalent to 50% of the annual plan of the project. The advance capital will be gradually recovered in installments during each payment period for completed work volumes and fully recovered within the planned year. The amount of advance capital recovered in each period equals the amount of capital paid multiplied by the ratio of advance capital allocation.

7 For investment projects with foreign capital or international tender packages where the Credit Agreement signed between the Government of Vietnam and the financier specifies different provisions regarding advance capital (the recipient of advance capital, conditions and levels of advance capital, recovery of advance capital) from those stated above, such provisions shall be implemented according to the terms of the signed Credit Agreement.

V. PAYMENT FOR COMPLETED VOLUME

1 Payment for completed construction and installation work:

1.1 Completed construction and installation work under direct award shall be paid based on the actual volume executed, accepted according to the prescribed procedures, contract, included in the assigned investment plan, detailed design and budget approved according to state norms and unit prices.

1.2 Completed construction and installation work under tendering shall be paid based on the actual volume executed, accepted according to the contract, included in the assigned investment plan.

1.3 To be eligible for payment for completed construction and installation work, the project owner must submit the following documents to the State Treasury:

1.3.1 In case of direct award:

- Approval document for the detailed design and budget of the project component.

- Economic contract between the sponsor and the contractor.

- Acceptance record of completed construction and installation work volume accompanied by the calculation of the value of the accepted volume.

- Price list and payment vouchers.

1.3.2 In case of tendering:

- Approval document for the tender results.

- Economic contract between the sponsor and the contractor.

- Acceptance record of completed construction and installation work volume accompanied by the calculation of the value of the accepted volume.

- Price list and payment vouchers.

Any additional work outside the tender price must have an approval document for the tender results (if the additional work was tendered) or an approved supplementary budget (if the additional work was directly awarded).

1.4 Based on the project owner's request and the submitted payment documents, within seven working days from the date of receiving complete valid documents, the State Treasury has the responsibility to review and pay the project owner and contractors and recover the advance capital according to the regulations.

2 Payment for completed equipment:

2.1 Completed equipment volume to be paid is the volume of equipment already stored in the project owner's warehouse (for non-installation equipment) or installed and accepted (for installation equipment) and must meet the following conditions:

- The equipment list must comply with the investment decision and be included in the assigned investment plan.

- Included in the economic contract between the project owner and the contractor.

- Already stored in the project owner's warehouse (for non-installation equipment) or installed and accepted (for installation equipment).

2.2 To be eligible for payment for completed equipment, the project owner must submit the following documents to the State Treasury:

- Contract.

- Invoice and warehouse release form (for domestically purchased equipment) or import documentation set (for imported equipment).

- Warehouse receipt (for non-installation equipment) or payment price list for installed equipment volume (for installation equipment).

- Transportation, insurance, storage tax and fee documents.

- Price list and payment vouchers.

2.3 Based on the project owner's request and the submitted payment documents, within seven working days from the date of receiving complete valid documents, the State Treasury has the responsibility to review and pay the project owner and contractors and recover the advance capital according to the regulations.

3 Payment for completed consultancy work:

3.1 The volume of completed consultancy work to be paid is the volume executed and accepted in accordance with the economic contract and included in the assigned investment plan.

3.2 To be eligible for payment, the project owner must submit the following documents to the State Treasury:

- Acceptance record of completed consultancy work volume.

- Purchase invoices (if the enterprise selling the vehicle is an enterprise purchasing imported vehicles from another enterprise).

3.3 Based on the project owner's request and the submitted payment documents, within seven working days from the date of receiving complete valid documents, the State Treasury has the responsibility to review and pay the contractors and recover the advance capital according to the regulations.

4. Payment for other costs volume:

4.1 In addition to consultancy services, other types of work under other project costs shall be paid when there are sufficient grounds to prove that the work has been completed as follows:

- For land construction fees, land taxes, or land transfer rights taxes, there must be valid invoices and receipts from the revenue collection agency.

- For compensation and clearance costs, there must be approved compensation plans and budgets, confirmation records of completed compensation volumes.

- For demolition costs of architectural structures and site clearance, there must be budgets, contracts, acceptance records.

- For project management costs, there must be budgets, cash flow plans, expense lists, related documents.

- For design preparation, design review, and budget costs, there must be contracts, acceptance records.

- For commencement, acceptance, trial operation, and completion costs, there must be budgets and expense lists.

- Expert fees, technical worker training costs, and production management staff costs must be based on economic contracts and cost estimates.

- For construction insurance costs, there must be insurance contracts.

- For costs related to investment preparation work and project implementation preparation, there must be approved cost estimates, economic contracts, quantity acceptance reports, or completion result reports.

4.2- Based on the investor's proposal and payment documentation submitted, within seven working days from the date of receiving complete valid documentation, the State Treasury is responsible for reviewing and paying contractors and recovering advance payments according to regulations.

5. The amount paid for each project component shall not exceed the budget estimate or the bid price; the total amount paid for the project shall not exceed the total budget estimate and the approved total investment ceiling.

The amount allocated to the project in a year (including both advance payments and payments for completed work volumes) shall not exceed the annual capital plan allocated for the project.

6. In the documents sent by the investor to the State Treasury agency, there are types of documents that are only sent once for the entire project and types of documents sent each time when requesting payment. Documents sent once include: feasibility study report, investment decision, technical design approval and total budget estimate decision, budget documents, tender result approval documents, and economic contracts between the investor and the contractor.

7. For projects with foreign capital or international tenders where the Credit Agreement signed between the Government of Vietnam and the financier specifies different payment terms from those mentioned above, such projects shall be implemented according to the provisions of the signed Credit Agreement.

8. The investor must allocate sufficient funds annually to purchase construction project insurance. The State will not reimburse the investor for losses and risks covered by insurance if the investor does not purchase construction project insurance as stipulated.

9. Regarding public service capital with investment and construction characteristics:

- For projects with a capital scale of 1 billion VND or more, the payment for completed work volume shall be carried out according to the current investment capital management system.

- For projects with a capital scale under 1 billion VND, when the completed work volume is accepted, the investor shall prepare payment request documentation to send to the State Treasury, including:

+ Acceptance record of completed work volume.

+ Detailed calculation table of the value of the work volume to be paid.

+ Price list or itemized statement (for other expenses not using a price list) and payment vouchers.

Based on the financial limit provided by the finance authority, the State Treasury shall verify the validity and legality of the payment documentation and vouchers, process payment for the beneficiary unit, and recover any previously advanced funds (if applicable).

10. During the project implementation period, if the investor's subjective reasons lead to delayed payments to contractors, the investor shall bear legal responsibility for damages caused by delayed payments. Conversely, if the contractor fails to fully fulfill the commitments in the contract, causing economic damage to the project, the investor shall impose penalties according to the law. The responsibilities of both parties regarding this issue must be clearly defined in the economic contract.

VI. REPORTING, SETTLEMENT, AND INSPECTION REGIME

1. On the 20th of each month and the 10th of the first month of each quarter, the investor is responsible for reporting on the implementation of investment, receipt of capital, and use of capital in the previous month or quarter to the State Treasury agency, and simultaneously sending it to the Ministry or Provincial People's Committee. Specifically, for Group A projects, the investor sends the report to the State Treasury agency, the Ministry, the Provincial People's Committee, the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Construction, and the General Statistics Office for compilation and reporting to the Prime Minister.

At the end of the planning year, the investor is responsible for preparing accounting reports according to the current regulations on the accounting system of the investor unit; upon completion of the investment project, the investor is responsible for preparing final accounts reports on investment capital according to the regulations on final accounts of investment capital.

If the final accounts of a completed investment project are approved and the final account amount is lower than the amount already paid to the project, the investor is responsible for reclaiming the excess payment from the contractor or deducting from the construction warranty fund to repay the State.

2. Quarterly and at the end of the planning year, Ministries and Provincial People's Committees are responsible for compiling the implementation status of the investment plan, receipt of capital, and payment of capital for projects under their management and submitting them to the Ministry of Finance, the Ministry of Planning and Investment, the Ministry of Construction, and the General Statistics Office as prescribed.

3. Regularly monthly and ad hoc, the State Treasury agency is responsible for reporting to the finance authority on the receipt of capital, disbursement of state budget capital, and other necessary information to serve the leadership and management of the Ministry of Finance and the Provincial People's Committee.

At the end of the planning year, the State Treasury settles with the finance authority on the amount received from the state budget, the amount disbursed according to the regulations on state budget settlement.

4. Ministries, Provincial People's Committees, finance authorities, and State Treasury agencies have regular and ad hoc inspection systems for investors regarding the use of advance payments, payments for completed work volumes, and compliance with state financial policies and systems for development investment.

VII. RESPONSIBILITIES AND LIMITATIONS OF RELATED AUTHORITIES

1. For project sponsors:

- Implement functions and tasks assigned according to the Investment and Construction Management Regulation.

- Be responsible for the accuracy and legality of the project volume when making payments (the volume must follow the construction drawing design or construction technical design, quality meeting design requirements); ensure the accuracy, legality, and validity of the data and documents provided to the State Treasury and relevant state agencies.

- Provide complete documentation, situations, and information as required to the State Treasury and finance authority to serve management and payment of capital; accept inspections by the State Treasury, finance authority, and superior authorities of the investor regarding the use of investment capital and compliance with state financial policies and systems for development investment.

- To receive and use capital for the intended purpose, target, economically and effectively. To comply with the current regulations on financial management systems for investment and construction.

- To conduct accounting for receiving and using investment capital according to the current regulations on accounting for the main investor units.

- To report and settle investment capital according to the regulations.

- To request disbursement of capital when all necessary conditions are met, and to seek explanations from the State Treasury regarding any unsatisfactory points in the disbursement of capital.

2. For Ministries and People's Committees of provinces:

- To perform state management functions for investment and construction according to the Investment and Construction Management Regulations.

- Guide, inspect, and urge project investors under their management to implement the investment plan, receive and use investment capital for the intended purpose and according to State regulations.

- To report on the implementation of investment plans and construction works according to the regulations.

- Within the scope of their authority, to be responsible before the Government and national laws for their decisions (investment decisions, approval of design and budget estimates, land allocation, tendering, direct award, approval of final settlement).

3. For the State Treasury:

- To pay capital promptly and fully to projects when all necessary conditions are met.

- To provide clear opinions to investors regarding reductions or refusals in payments, and to respond to investors' queries regarding capital disbursements.

- In cases where decisions made by authorized levels are found to contravene current regulations, they must submit a written request for reconsideration and clearly state their proposed opinion. If there is no response within the stipulated time frame, they have the right to proceed according to their proposal; if the response is deemed unsatisfactory, they must still follow the decision of the authorized level while simultaneously reporting to higher authorities for review.

- To implement reporting and settling of investment capital and operational funds with investment characteristics from state budget sources according to the State Budget Law.

- To have the right to request investors to provide files, documents, and information to serve management and control activities.

- To have the authority to temporarily suspend capital disbursements or recover capital that has been misused by investors, not in accordance with the target, or used contrary to the state's financial management system, and to report to the Ministry of Finance for handling; to refuse to disburse capital to projects where investors do not strictly adhere to quarterly investment capital planning requirements, reporting regulations under the Investment and Construction Management Regulations and this Circular.

- Not to participate in completion acceptance boards for construction works; not to be responsible for the quantity and quality of completed construction works.

- To organize management and control, and capital disbursement procedures uniformly, ensuring strict capital management, timely and full disbursements, and convenience for investors.

- To be responsible before the Minister of Finance and national laws for receiving and using state budget capital for payment in investment and construction.

4. For financial agencies at all levels:

- To ensure sufficient state budget capital and transfer it promptly to the State Treasury for disbursement to projects.

- To report and settle development investment capital according to the State Budget Law.

- To inspect compliance with management and policy systems for investment and construction, the management and use of investment capital by investors, and the disbursement of investment capital by the State Treasury.

- To have the right to request investors to provide necessary information to serve state financial management of development investments.

Part III

IMPLEMENTING PROVISIONS

1. This Circular shall take effect fifteen days from the date of signature and replace previous guiding documents issued by the Ministry of Finance on managing, allocating, and disbursing investment capital and operational funds with investment characteristics from the state budget.

The National Investment Development Administration will continue to manage and allocate state budget investment capital until December 31, 1999. The State Treasury will manage, control, and disburse state budget investment capital and operational funds with investment characteristics from January 1, 2000.

2. For other state budget development expenditures (national reserve expenditures, working capital support for enterprises, joint venture share capital contributions, foreign loans and aid, development fund expenditures), they shall be implemented according to separate guiding documents for each type of expenditure.

3. Management, control, and disbursement of county and commune-level budgets; management, control, and disbursement of state budget capital for planning projects, overseas investment projects by Vietnamese representative offices, projects requiring confidentiality for security and defense, and projects purchasing copyright ownership shall be carried out according to specific regulations.

4. For investment projects funded from other state sources, the principles of disbursement as stipulated in this Circular shall also be applied.

During implementation, if any difficulties arise, ministries, provincial people's committees, and relevant entities should promptly report to the Ministry of Finance for study and supplementary amendments.