Decree No. 144/2016/ND-CP on certain special mechanisms regarding investment, finance, budget, and management delegation for Da Nang City

DECREE
Regulations on certain special mechanisms regarding investment, finance, budget, and decentralization management for the city of Can Tho
The Government promulgates this Decree amending and supplementing certain articles of Decree No. 144/2016/NĐ-CP dated November 1, 2016 of the Government stipulating certain special mechanisms on investment, finance, state budget, and decentralization management for Da Nang City.

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to the Law on Public Debt Management dated June 17, 2009;

Pursuant to the Construction Law dated June 18, 2014;

Pursuant to the Law on Housing dated November 25, 2014;

Pursuant to the Law on Land dated November 29, 2013;

Pursuant to the Urban Planning Law dated June 29, 2009;

Pursuant to the Law on Public Investment dated June 18, 2014;

At the proposal of the Minister of Finance;

The Government promulgates the Decree stipulating certain special mechanisms regarding investment, finance, budget, and decentralization management for Da Nang City.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates certain special mechanisms regarding investment, finance, budget, and decentralization management for Da Nang City (hereinafter referred to as the City).

Article 2. Principles for building special mechanisms

1. These special mechanisms aim to promote rapid and sustainable economic and social development of the City, creating conditions for the City to leverage its advantages to become one of the major cities in the country, a significant economic and social center with the role of an industrial, commercial, and service center in Central Vietnam by 2020; providing a strong impetus to promote the development of provinces in the Central and Central Highlands regions.

2. The decentralization management must be linked to enhancing the responsibility of the People's Council and People's Committee of the City; at the same time, promoting proactiveness, creativity, and effectively utilizing the potential and strengths of the City in implementing local economic and social development goals.

Chapter II
MECHANISMS FOR RAISING FUNDS FOR INVESTMENT AND DEVELOPMENT

Article 3. Mobilizing investment capital and financial support from the central budget

1. The City is allowed to borrow domestic funds for investment through forms such as issuing local government bonds and other forms of raising funds according to the law; borrowing again from the central government's loans allocated for local government borrowing. The level of debt (including domestic borrowing from issuing local government bonds, borrowing again from the central government's loans for re-lending, and other domestic borrowings according to the law) of the city budget shall not exceed 40% of the local budget revenue received according to the decentralization and within the annual fiscal deficit limit of the state budget decided by the National Assembly.

2. The Government prioritizes supporting part of the capital from the central budget for the City's budget to participate in implementing projects under the Public-Private Partnership (PPP) model with regional significance on the city's territory.

3. The Government prioritizes allocating additional targeted capital for the City's budget to implement economic and social development projects of the City and projects with regional significance in the Central and Central Highlands regions.

Article 4. Mechanisms for raising Official Development Assistance (ODA) and preferential loans from foreign donors

1. The Government prioritizes raising Official Development Assistance (ODA) for the City to implement important infrastructure investment projects under the City's budget expenditure responsibilities. The allocation of counterpart funding domestically for these projects shall be guaranteed by the City's budget.

2. The Government prioritizes allocating preferential loans through the mechanism of lending to localities for re-lending to implement PPP projects on the City's territory.

3. The People's Committee of the City is authorized to approve project lists and decide on receiving non-repayable aid (ODA, non-governmental foreign aid) for projects and programs regardless of the scale of aid, except for technical assistance related to institutional, religious, policy and legal reforms, administrative reform, defense, and security matters decided by the Prime Minister.

The Chairman of the People's Committee of the City is responsible for receiving, managing, and using these aids efficiently, implementing accounting and auditing systems according to the law; annually reporting to the Ministry of Finance and the Ministry of Planning and Investment for monitoring and consolidating reports to the Prime Minister.

Chapter III
FINANCIAL AND BUDGET MECHANISMS

Article 5. Special Features Regarding the Budget

1. The central budget supplements the Da Nang City budget with 70% of the increase in revenue compared to the approved estimate by the Prime Minister from revenues shared between the central and local budgets (after applying the excess revenue bonus according to the State Budget Law No. 83/2015/QH13) and revenues that the central budget enjoys 100% (excluding VAT revenue from imported goods; revenues not generated on the City's territory but only recorded there; revenues recorded as both income and expenditure and revenues retained by units under the state budget according to the law); however, it shall not exceed the increase in the central budget revenue on the City's territory compared to the approved estimate by the Prime Minister.

Based on the total excess revenue of the central budget and overall balance, the Government reports to the Standing Committee of the National Assembly for consideration and decision on the amount of targeted supplementation for the Da Nang City budget according to the State Budget Law No. 83/2015/QH13 and the special mechanism for Da Nang City stipulated in this Article.

2. The City uses the targeted supplementary funds from the increased revenue stipulated in Clause 1 of this Article: Prioritizing the repayment of outstanding construction debts; investing in infrastructure projects; investing in science and technology; allocating counterpart funds for ODA projects; repaying loan debts; implementing important tasks for economic and social development; ensuring national defense, public order, and social safety in the City; and other tasks as prescribed. The People's Committee of the City reports to the People's Council of the City for deciding specific amounts for each goal and task and rewarding the lower-level budget.

Article 6. The City may implement a mechanism to support a portion of interest rates for organizations and individuals when borrowing funds for important economic and social development projects capable of recovering capital within the scope and capacity of the City's budget.

Article 7. The City may sell social housing funded by the state budget through a one-time payment method to reinvest in building other social housing on the City's territory. The People's Committee of the City shall develop a proposal to report to the Ministry of Construction for written approval before implementation.

Chapter IV
DECENTRALIZATION MANAGEMENT MECHANISMS

Based on consensus with relevant ministries and agencies; the People's Committee of the City shall organize the preparation, review, seek opinions from the Municipal People's Council, and approve partial adjustments to the comprehensive plan for economic and social development that has been approved by the Prime Minister, to be consistent with the local development situation at each stage, and report the implementation results to the Prime Minister.

1. The City shall take the lead in reviewing technical design and construction cost estimates for three-stage designs, reviewing construction drawings and construction cost estimates for two-stage designs, and inspecting the acceptance and commissioning of civil works and technical infrastructure projects specified in Appendix I and Appendix II attached to this Decree, which are constructed within the City's territory (excluding projects assigned by the Prime Minister to specialized agencies under the Ministry of Construction and sectoral construction management agencies; projects decided upon investment by the Ministry of Construction and sectoral construction management agencies; projects decided upon investment by state-owned corporations and holding companies within their own management scope).

Chapter V
IMPLEMENTING PROVISIONS

Article 10. Effective Date

This Decree takes effect from January 1, 2017. The Decision No. 13/2006/QĐ-TTg dated January 16, 2006 of the Government on certain preferential financial and budget mechanisms for Da Nang City is hereby repealed.

Article 11. Implementation Organization

1. The Minister of Finance shall be responsible for coordinating with relevant ministries to guide the special financial and budget mechanism for Da Nang City as stipulated in this Decree.

2. Matters concerning investment, finance, budget, and decentralization management not provided for in this Decree shall be implemented in accordance with current regulations.

3. Ministers, heads of ministerial-level agencies, heads of government agencies, Chairmen of the People's Councils, and Chairmen of the People's Committees of Da Nang City are responsible for implementing this Decree./.