Joint Circular No. 147/2009/TTLT-BTC-BCT stipulates the management and use of state budget funds for implementing the Biofuel Development Program.

JOINT CIRCULAR

Regulations on the management and use of state budget funds for implementing the Biofuel Development Program

implement the Biofuel Development Program

_________________________________________ 

Pursuant to Decree No. 60/2003/NĐ-CP dated June 10, 2003 of the Government detailing and guiding the implementation of the State Budget Law;

Pursuant to Decree No. 189/2007/ND-CP dated December 27, 2007, issued by the Government, detailing the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 177/2007/QĐ-TTg dated November 20, 2007 of the Prime Minister approving the Biofuel Development Program until 2015 with a vision to 2025;

The Ministry of Finance and the Ministry of Industry and Trade hereby issue regulations on the management and use of state budget funds for implementing the Biofuel Development Program until 2015 with a vision to 2025, as follows:

Article 1. General Provisions

1. These Circulars regulate the management and use of state budget funds for implementing the Biofuel Development Program until 2015 with a vision to 2025 (referred to as the Biofuel Development Program) according to the provisions stipulated in Decision No. 177/2007/QĐ-TTg dated November 20, 2007 of the Prime Minister.

2. The entities eligible to receive state budget funds for implementing the Biofuel Development Program include all economic sectors that meet the conditions set forth in these Circulars.

3. Sources of funding for implementing the Biofuel Development Program include: annual state budget capital; capital from domestic and foreign enterprises, organizations, and individuals; foreign economic cooperation capital (ODA, FDI, etc.); international cooperation capital related to biofuel development in Vietnam; and other lawful sources of capital.

Article 2. Contents of expenditures for implementing the Biofuel Development Program include:

1. Expenditures from investment capital:

a) Investment in constructing some advanced laboratories for researching raw materials, production technology, and blending biofuels according to projects approved by competent authorities;

b) Investment in modernizing and equipping advanced equipment for existing laboratories of scientific research institutions under public service units according to projects approved by competent authorities;

c) Construction of websites, networking, and operation of national databases and information systems on biofuels to provide and share information on technology, equipment, and biofuel products according to projects approved by competent authorities.

2. Expenditures from operating funds:

a) Expenditures from scientific research operating funds:

- Implementation of scientific and technological projects on biofuel development: basic research, applied research, scientific research and technological development, technological improvement and innovation aimed at increasing production volume, quality, and competitiveness of biofuels (including procurement of additional equipment directly serving the research of projects under the Biofuel Development Program if necessary, in accordance with current regulations);

- Support for trial production projects of developed biofuel products;

- Support for technology transfer to produce biofuel-related products on an industrial scale (supporting training and guidance for new technology transfer).

b) Expenditures from training operating funds:

- Overseas training: Short-term training from six months to one year for science and technology professionals specializing in biofuel production in countries with advanced biofuel industries;

- Domestic training of engineers and technical workers in biofuel production technology;

- Continuing education and enhancing management capacity for officials at the ministry, sector, local, and enterprise levels regarding biofuel development and application.

c) Economic operating expenses:

- Activities of the national database and information system on biofuels to provide information on biofuel development;

- Regional raw material planning;

- Activities of the Steering Committee for the Biofuel Development Program: procurement of equipment; information dissemination and publicity; international cooperation with advanced countries in biofuels; seminars, conferences, mid-term reviews, final evaluations; appraisal, inspection, acceptance, and assessment of projects under the Program and other expenses (if any).

Article 3. Levels of expenditure.

1. Entities using state budget funds for implementing the Biofuel Development Program must comply strictly with the current financial expenditure standards and regulations established by competent state agencies.

2. The maximum level of support for trial production projects of developed products shall not exceed 30% of the necessary new investment capital required to implement the project as approved by the competent authority, in accordance with the guidelines issued by the Ministry of Finance and the Ministry of Science and Technology on financial management for scientific and technological projects supported by the state budget and subject to recovery of funds; the specific level of support for each project shall be decided by the Minister of Industry and Trade.

Article 4. Conditions for financial support.

Conditions for financial support to implement technology transfer to produce biofuel products on an industrial scale include:

1. The technology must be consistent with the objectives of the Project.

2. Feasibility of the project: (a) The transferred technology, (b) The ability to ensure competitiveness of the product produced using the new technology compared to the transferred project, (c) The capability of the entity receiving the technology (in terms of capital, technical expertise, implementation location).

3. The project has not received financial support from any state budget source.

Article 5. Recovery of funds.

1. For research topics and projects implemented from scientific research funding sources that have recoverable products, they shall be carried out according to current regulations applicable to scientific and technological projects funded by the state budget.

2. For pilot production projects of biofuel products, the recovery of funds shall be carried out according to the provisions of the Ministry of Finance and the Ministry of Science and Technology regarding financial management for scientific and technological projects supported by the state budget and having recoverable funds. The time for recovering funds for each project shall be decided by the approving authority, but not exceeding 24 months after the completion of the project.

In cases where a project must be suspended due to objective reasons causing damage to the project, such as typhoons, floods, fires, and other objective reasons, the recovery of funds may be exempted or reduced. When encountering such situations, the main units of the project shall report in writing to the competent ministry (for central units) or the People's Committee of the province or centrally-administered city (for local units) for inspection and confirmation of the implementation process and the reason for suspending the project; the ability to repay the state budget support funds. After inspection and confirmation, the competent ministry or the People's Committee of the province or centrally-administered city shall report to the Ministry of Industry and Trade for consideration and decision on the level of exemption or reduction of recovered funds after obtaining a written agreement from the Ministry of Finance.

The Ministry of Industry and Trade shall monitor and urge the recovery of funds; annually compile and report together with the final settlement of the Project Development Biofuel Fund.

Article 6. Establishment, execution, and final settlement of the state budget.

The establishment, execution, and final settlement of scientific research funding, vocational training funding, economic service funding, and investment capital of the Project for Developing Biofuels shall be carried out according to current regulations. This Circular supplements some points as follows:

Based on the content of the Project, guidelines from the Ministry of Industry and Trade, relevant ministries, sectors, localities, and organizations wishing to participate in implementing the contents of the Project for Developing Biofuels shall establish tasks (research topics, projects, component tasks) and register with the Ministry of Industry and Trade to organize the determination of tasks, selection, and recruitment of organizations and individuals responsible for implementation, review, and approval according to current regulations.

Annually, based on the tasks approved and announced by the Ministry of Industry and Trade, units shall prepare budgets and submit them to their superior managing authorities for consolidation into the budgets of central ministries and localities, and send them to relevant ministries and agencies according to current regulations; simultaneously sending them to the Ministry of Industry and Trade. Individuals preparing the budget shall send it to the Ministry of Industry and Trade. The Ministry of Industry and Trade shall consolidate this with the annual budget preparation period and send it to the Ministry of Finance and the Ministry of Planning and Investment for consolidation and submission to the competent authority for decision-making; specifically:

1. For vocational science and technology funding: Annually, the Ministry of Industry and Trade shall cooperate with the Ministry of Science and Technology to determine the scientific and technological tasks and the budget for implementing the Project, which will be submitted to the Ministry of Science and Technology for consolidation and submission to the competent authority for examination and approval, to be assigned to the Ministry of Industry and Trade (including funding for research topics and projects implemented by localities and enterprises), and central ministries and agencies shall implement according to current regulations. For funding for research topics and projects implemented by localities and enterprises, the Ministry of Industry and Trade shall sign contracts according to regulations.

2. For vocational training funding:

a) For domestic training: The Ministry of Industry and Trade shall cooperate with the Ministry of Education and Training to determine the need for human resource training and vocational training funding for the Project, and submit it to the competent authority for examination and decision.

b) For overseas training: According to Decision No. 356/QĐ-TTg dated April 28, 2005 of the Prime Minister on adjusting the Project "Training cadres, scientists, and technicians at foreign institutions using the state budget", the Ministry of Industry and Trade shall determine the training needs and work with the Ministry of Education and Training to implement it.

3. For investment capital and economic service funding: The Ministry of Industry and Trade shall prepare the budget concurrently with the annual budget preparation period and send it to the Ministry of Finance and the Ministry of Planning and Investment for examination and consolidation, and submission to the competent authority for decision-making, to be assigned to relevant ministries, sectors, localities for implementation.

Article 7. Management and use of assets.

Management and use of assets invested in and purchased under the Project for Developing Biofuels using state budget funds shall be carried out according to current regulations.

Article 8. Reporting, auditing, and inspection work.

1. Units tasked with implementing the Project for Developing Biofuels shall regularly report every six months and at year-end on the implementation status according to the guidelines of the Ministry of Industry and Trade.

2. The Ministry of Industry and Trade shall be responsible for coordinating with relevant ministries and agencies to conduct regular annual or ad hoc inspections on the implementation status and use of funds for the Project for Developing Biofuels to ensure proper and effective use.

3. At year-end, the Ministry of Industry and Trade shall compile the implementation status of the Project for Developing Biofuels and report to the Prime Minister, while also reporting to the Ministry of Finance, the Ministry of Planning and Investment, the Ministry of Science and Technology, and the Ministry of Education and Training.

Article 9. Implementing organization.

1. This Circular takes effect 45 days from the date of signature.

2. The Ministry of Industry and Trade shall guide the registration dossier and procedures; review research topics, projects, and tasks registered by ministries, sectors, localities, organizations, and individuals to implement the Project for Developing Biofuels.

3. During the implementation process, if there are any difficulties, units are requested to report to the Ministry of Finance and the Ministry of Industry and Trade for review and appropriate amendments./.