Circular No. 15/2019/TT-BNNPTNT guiding certain contents on the management of public investment forest engineering projects

CIRCULAR

Guidelines on certain aspects of managing public investment in forest engineering works

Pursuant to Decree No. 15/2017/NĐ-CP dated February 17, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development;

Based on the Law on Legislative Acts of the State number 80/2015/QH13 dated June 22, 2015;

Pursuant to the Forestry Law No. 16/2017/QH14 dated November 15, 2017;

Pursuant to the Government Decree No. 136/2015/NĐ-CP dated December 31, 2015 guiding the implementation of certain provisions of the Public Investment Law;

WHEREAS, Decree No. 59/2015/NĐ-CP dated June 18, 2015 of the Government on project management for investment in construction;

Pursuant to the Government Decree No. 68/2019/NĐ-CP dated August 14, 2019 on management of construction investment costs;

Pursuant to the Government Decree No. 156/2018/NĐ-CP dated November 16, 2018 detailing the implementation of certain provisions of the Forestry Law;

At the proposal of the Director General of the Forest Administration;

The Minister of Agriculture and Rural Development issues this Circular guiding certain aspects of managing public investment in forest engineering works,

PART I
GENERAL PROVISIONS

This Circular guides certain aspects of managing public investment in forest engineering works, including protection of forests, comprising: preparation, review, approval of design and budget estimates, and acceptance; handling risks due to force majeure causes.

1. This Circular applies to organizations, households, individuals within the country, and community groups related to the implementation of forest engineering works in investment projects using public funds (state budget funds, lawful revenues of state agencies and public service units allocated for investment according to the law). related to the implementation of forest protection activities and forest engineering works using state budget funds.

2. Encouragement is given to investors to utilize other lawful sources of funding in applying the provisions of this Circular.

1. Forest engineering work is agricultural and rural development infrastructure created from the implementation of forest engineering investment activities according to design and budget estimates, including: natural regeneration promotion enclosures; natural regeneration promotion enclosures with supplementary planting; nurturing natural forests; enriching natural forests; rehabilitating natural forests; planting new forests; caring for planted forests; nurturing planted forests.

2. Acceptance of components is the activity of evaluating and concluding on the results of component construction compared to the approved design.

3. Final acceptance is the activity of evaluating and determining the area of forest formation at the end of the investment phase for forest engineering works, including: planting new forests; rehabilitating natural forests; natural regeneration promotion enclosures; natural regeneration promotion enclosures with supplementary planting.

Chapter II
PREPARATION, REVIEW, APPROVAL OF DESIGN AND BUDGET ESTIMATES

Article 4. Principles for preparing design and budget estimate documentation

1. For forest engineering works that have been approved for investment projects, the investor prepares the design and budget estimate for the forest engineering works. For projects only requiring economic and technical reports, the preparation of the design and budget estimate for the forest engineering works is carried out concurrently with the preparation of the economic and technical report.

2. For natural regeneration promotion enclosures and forest protection works using state budget funds: the unit utilizing state budget funds prepares the design and budget estimate once for multiple years or annually according to the assigned budget plan.

3. The investor or the unit utilizing state budget funds hires consultants to prepare the design and budget estimate documentation or prepares it themselves when they have the necessary conditions and capacity equivalent to consulting firms.

Article 5. Budget Estimate

The budget estimate is calculated based on current economic and technical standards. The cost items include:

1. Construction Costs:

a) Direct costs, including:

Labor costs: site preparation, planting, care, inspection, supervision, protection of forests, and other related costs;

Machinery and equipment construction costs: land preparation, transportation of seedlings by machinery; leveling, smoothing the surface, firebreak road construction, and other related costs;

Material costs: seeds, fertilizers, plant protection chemicals, and other related materials.

b) Common costs: calculated at 5.0% of direct costs, including:

Costs for protective gear, labor safety, and environmental protection for workers and surrounding environment;

Transportation costs for machinery, equipment, and workforce to and from the construction site;

Traffic safety assurance costs during construction (if applicable).

c) Pre-tax income: anticipated profit in the construction project budget, calculated at 5.5% of total direct costs and common costs;

d) Value-added tax is implemented according to state regulations.

2. Equipment Costs: purchasing and equipping technological devices (including devices that need production and processing), installation and testing, calibration of equipment, transportation, insurance of equipment, training and technology transfer.

3. Management Costs: calculated at 3.0% of the total construction and equipment costs, including: management organization costs from the preparatory stage until completion, acceptance, and operation.

4. Investment and Construction Consulting Costs: determined by detailed budget estimates, including: surveying; design and budget preparation; supervision, and other related consulting costs.

5. Other Costs:

a) Demining and explosive clearance;

b) Temporary housing construction at the site for living and construction management; restoration and recovery costs of infrastructure affected during construction;

c) Project insurance during implementation. In cases where projects are encouraged to purchase insurance, insurance costs are included in the total investment construction amount;

d) Audit, verification, approval of final accounts;

đ) Inspection and acceptance during construction and upon completion by competent state management agencies;

e) Scientific and technological research related; interest during construction period (excluding recoverable product value);

g) Resource taxes, fees, and charges as prescribed;

h) Costs for other work.

6. Contingency Costs:

a) Contingency costs for additional work volume are calculated at 5.0% of total construction costs, equipment costs, management costs, investment and construction consulting costs, and other costs;

b) Contingency costs for price escalation are determined based on the construction period of the project (in months, quarters, years), domestic and international price fluctuation potential.

7. For natural regeneration promotion enclosures and forest protection carried out through household, individual, and community contracts: the contracted value for the contracting parties, documentation preparation costs, and other costs apply national support standards according to current policies.

Article 6. Documents for Approval of Design and Budget Estimate

1. A request for approval of design and budget estimate according to Model No. 01 in Appendix III attached hereto.

2. A detailed description of the design prepared according to the Model in Appendix I attached hereto.

3. The budget estimate prepared in accordance with Article 5 of this Circular.

4. Design map: constructed on the basis of topographic maps under the VN 2.000 reference system at a scale of 1/5,000 or 1/10,000. Presentation and content of the map shall comply with Technical Regulation TCVN 11566:2016 on forestry planning maps.

5. A copy of the decision approving the investment project or the assigned capital plan for activities using state budget funds and other related documents.

Article 7. Approval of Design and Budget Estimate for Forestry Engineering Works Using Public Investment Funds

1. Authority responsible for reviewing the design and budget estimate of forestry engineering works:

a) For projects decided to be invested in by the Minister of Agriculture and Rural Development: The Forest Administration shall lead the review of the design and budget estimate of forestry engineering works;

b) For projects decided to be invested in by other central ministries and sectors: the specialized agency under direct jurisdiction shall lead the review of the design and budget estimate of forestry engineering works;

c) For projects decided to be invested in by the Chairman of the Provincial People's Committee: The Department of Agriculture and Rural Development shall lead the review of the design and budget estimate of forestry engineering works;

d) For forestry engineering works within projects decided to be invested in by the Chairman of the District People's Committee or Commune People's Committee: The functional department at the district level or the local forest protection agency shall lead the review of the design and budget estimate of forestry engineering works.

2. Authority responsible for approving the design and budget estimate of forestry engineering works:

a) The authority approving the design and budget estimate of forestry engineering works is the authority deciding to invest in the project. The investor decision-maker may delegate or authorize the lower-level authority to approve according to regulations;

b) For projects decided to be invested in by the Prime Minister, the investor is the agency, organization, or unit entrusted by the Prime Minister. The investor shall exercise the powers of the investor decision-maker, approving the design and budget estimate of forestry engineering works.

3. Procedure for Reviewing the Design and Budget Estimate of Forestry Engineering Works:

a) The investor shall submit directly or through postal services or via online environment (national public service portal, ministry-level public service portal, provincial public service portal) one set of documents as prescribed in Article 6 of this Circular to the leading review authority;

b) The leading review authority shall check the validity of the documents; issue a receipt or refuse acceptance immediately for direct submissions; within two working days for submissions through postal services or online environment;

c) Within twelve working days from the date of receiving valid documents, the leading review authority shall organize the review and prepare a report on the review results according to Model No. 02 in Appendix III, draft decision on approval according to Model No. 03 in Appendix III attached hereto, and submit to the competent authority for approval;

d) Within five working days from the date of receiving the report on the review results, the competent authority shall decide on the approval of the design and budget estimate of forestry engineering works and return the result to the investor within three working days from the date of signing the decision. In case of non-approval, the competent authority shall notify in writing the reviewing authority and the investor within three working days.

Article 8. Approval of design and budget for natural regeneration promotion and forest protection projects funded by state budget

1. The approval dossier for design and budget shall be prepared in accordance with Article 6 of this Circular.

2. Units using state budget funds shall approve their own design and budget in accordance with the State Budget Law.

Article 9. Adjustment of design and budget

1. Design and budget adjustments shall be made in the following cases:

a) When the investment project requires adjustment of the design and budget of forestry works;

b) When there is a change in annual funding allocated to natural regeneration promotion and forest protection projects funded by state budget;

c) During implementation, if it is necessary to adjust the design to ensure quality.

2. The adjustment dossier for design and budget shall be prepared in accordance with Article 6 of this Circular; the adjustment of design and budget shall be reviewed and approved in accordance with Articles 7 and 8 of this Circular.

3. In cases where only the structure of cost items is adjusted without changing the approved budget value including contingency costs, the investor or unit using state budget funds shall organize the adjustment and report to the investment decision-maker or the agency allocating funds on the content of the budget adjustment.

4. The investor or unit using state budget funds shall determine the adjusted budget as the basis for adjusting the contract value.

Article 10. General Provisions on Acceptance

1. The investor or unit using state budget funds shall conduct acceptance upon completion of individual items or at the end of the investment phase. The acceptance time must be clearly defined to ensure the accuracy of the acceptance results.

2. Acceptance Team Composition:

a) Representatives of the investor or unit using state budget funds: Leaders, technical staff, supervisors;

b) Representatives of the construction unit or individual;

c) Other related parties:

Representative of the design consulting unit participating at the request of the project investor (if any);

Representative of the supervision consulting unit (if any);

Representative of the management and user units of the works (in cases where the project investor is not the management and user of the works);

Representative of organizations, local authorities, village communities, cooperatives participating at the request of the project investor.

3. Acceptance Dossier:

a) Decision to establish the acceptance board (if applicable);

b) Approved design and budget by competent authority;

c) Contract;

d) Implementation result report;

đ) Acceptance record according to Model No. 04 Appendix III attached to this Circular;

e) Related documents.

4. Forms of Acceptance:

a) Item acceptance: applied to forestry works and forest protection to determine the volume and quality of completed work as the basis for interim payment and final settlement;

b) Completion acceptance: applied to forestry works requiring determination of the area of forest formation for management in accordance with the Forest Management Regulation stipulated in Government Decree No. 156/2018/NĐ-CP dated November 16, 2018 detailing certain provisions of the Forestry Law.

5. Responsibilities of the investor or unit using state budget funds during acceptance:

a) Provide documents as prescribed in Clause 3 of this Article;

b) Verify the legality of representatives of participating parties;

c) Guide related parties on acceptance methods, contents, and sign the acceptance record.

Article 11. Inspection of Forest Planting

1. Inspection time points:

a) Item inspection: carried out after technical measures have been implemented;

b) Completion inspection: carried out after the investment phase ends.

2. Inspection criteria: implemented according to the provisions in Section I of Appendix II attached hereto.

3. Quantity inspection includes: on-site inspection of the entire area, determination of boundary positions, comparison with design maps, marking and determining the implementation ratio through direct measurement.

4. Quality inspection: conducted according to the technical planting standards specified in the approved technical design, specifically:

a) For pure species concentrated forest plantations: establish circular standard plots with a minimum area of 100 m² along the representative line of the inspected plot, the number of minimum standard plots is defined as follows:² on the representative line of the lot for acceptance, the minimum number of standard plots is specified as follows:

Plot area under 3 hectares: 10 standard plots;

Plot area from 3 to less than 5 hectares: 15 standard plots;

Plot area 5 hectares or more: minimum 20 standard plots.

b) For mixed concentrated forest plantations: establish square standard plots with a minimum area of 500 m²;² on the representative line of the lot for acceptance, the minimum number of standard plots is specified as follows:

Plot area under 3 hectares: 3 standard plots;

Plot area from 3 to less than 5 hectares: 5 standard plots;

Plot area 5 hectares or more: 10 standard plots.

c) For mixed forest plantations by bands: use random sampling methods to inspect at least 10% of the planted forest bands within the plot; count the number of trees across the entire planted band. In cases where the number of bands in the plot is less than 10, at least one band must be inspected;

d) For mixed forest plantations by clusters: use random sampling methods to inspect at least 10% of the planted forest restoration clusters within the plot. In cases where the cluster planting area is less than 1000 m², count the number of trees across the entire planted cluster. In cases where the cluster planting area exceeds 1000 m², establish standard plots according to the provisions of point a and point b of this clause. In cases where the number of planted clusters in the plot is less than 10, at least one cluster must be inspected.² conduct a count of the number of trees throughout the entire planting area. In cases where the planting area exceeds 1000 m²,² establish standard plots in accordance with the provisions of points a and b of this clause. In cases where the number of plantings within the lot is less than 10, at least one planting must be inspected.

Article 12. Inspection of Natural Forest Restoration

1. Inspection time points:

a) Item inspection: carried out after technical measures have been implemented;

b) Completion inspection: carried out after the investment phase ends.

2. Inspection criteria: implemented according to the provisions in Section I of Appendix II attached hereto.

3. Method of implementation: carried out according to the provisions of Clause 3 and Clause 4 of Article 11 of this Circular.

Article 13. Inspection of Natural Regeneration Promotion with Ringing

1. Inspection time points:

a) Item inspection: carried out after technical measures have been implemented;

b) Completion inspection: carried out after the investment phase ends.

2. Inspection criteria: carried out according to the provisions in Section IV of Appendix II attached hereto.

3. Method of implementation:

a) Quantity inspection: carried out according to the provisions of Clause 3 of Article 11 of this Circular;

b) Quality inspection: according to the technical standards specified in the approved technical design, establish standard plots to evaluate inspection criteria, specifically:

Standard plot has a minimum area of 1000 square meters² on the representative line of the lot for acceptance, the minimum number of standard plots is specified as follows:

Plot area under 3 hectares: 1 standard plot;

Plot area from 3 to less than 5 hectares: 3 standard plots;

Plot area 5 hectares or more: 5 standard plots.

Article 14. Inspection of Natural Regeneration Promotion with Ringing and Supplementary Planting

1. Inspection time points:

a) Item inspection: carried out after technical measures have been implemented;

b) Completion inspection: carried out after the investment phase ends.

2. Inspection criteria: carried out according to the provisions in Section V of Appendix II attached hereto.

3. Method of implementation:

a) Quantity inspection: carried out according to the provisions of Clause 3 of Article 11 of this Circular;

b) Quality inspection:

For additional forest planting area, implement in accordance with the provisions of Clause 4 Article 11 of this Circular;

For non-additional forest planting area, implement in accordance with the provisions of point b Clause 3 Article 13 of this Circular.

Article 15. Inspection of Forest Plantation Care

1. Item inspection time point: carried out annually after technical measures have been implemented.

3. Inspection criteria: carried out according to the provisions in Section II of Appendix II attached hereto.

2. Method of implementation: carried out according to the provisions of Clause 3 and Clause 4 of Article 11 of this Circular.

Article 16. Inspection of Forest Protection

1. Item inspection time point: carried out at the end of the plan year.

2. Inspection criteria: carried out according to the approved design and contractual assignment agreement.

3. Method of implementation: on-site inspection of the entire area, based on the design map to determine position, boundaries, and the implementation ratio, specifically:

a) In cases where 100% of the forest area is not affected by destruction: the completion of 100% of the work volume is accepted;

b) In cases where the forest is destroyed (cutting, encroachment, burning, converting forest land use illegally...), based on specific circumstances, the actual value of contract performance will be determined according to the ratio, specifically:

The person assigned to protect the forest, the person receiving support funding for forest protection, upon discovering forest damage and immediately reporting to the competent authority (the assigning party or local government or forestry authority): completes the forest protection task and receives payment according to the contract.

The person assigned to protect the forest, the person receiving support funding for forest protection, who fails to discover forest damage or discovers but does not report to the competent authority: will not be paid for protecting the damaged forest area, depending on the severity, will be handled according to the law.

Article 17. Inspection of Forest Nurture Planting

1. Item inspection time point: carried out annually after technical measures have been implemented.

2. Inspection criteria: carried out in accordance with the provisions of Section III Appendix II attached to this Circular.

3. Method of implementation: carried out according to the provisions of Clause 3 and Clause 4 of Article 11 of this Circular.

Article 18. Inspection of Forest Nurture Natural

1. Item inspection time point: carried out annually after technical measures have been implemented.

2. Inspection criteria: carried out according to the provisions in Section IV of Appendix II attached hereto.

3. Method of implementation: carried out according to the provisions of Clause 3 and Clause 4 of Article 11 of this Circular.

Article 19. Inspection of Enrichment of Natural Forests

1. Item inspection time point: carried out annually after technical measures have been implemented.

2. Inspection criteria: carried out according to the provisions in Section V of Appendix II attached hereto.

3. Method of implementation:

a) Quantity inspection: carried out according to the provisions of Clause 3 of Article 11 of this Circular;

b) Quality inspection: carried out in accordance with point c and point d Clause 4 Article 11 of this Circular;

Article 20. Handling Risks Due to Force Majeure Causes

1. Handling risks due to natural disasters:

a) The project investor or the unit using state budget funds shall prepare a record assessing damage, determine the cause, report to the competent authority for consideration and decision on adjusting the investment project or adjusting the allocated capital plan; adjust design and estimate according to the provisions of Article 9 of this Circular;

b) The statistics, assessment, and reporting of damage caused by natural disasters shall be carried out in accordance with the Inter-Ministerial Circular No. 43/2015/TTLT-BNNPTNT-BKHĐT dated November 23, 2015 of the Ministry of Agriculture and Rural Development and the Ministry of Planning and Investment guiding the statistics, assessment of damage caused by natural disasters and related documents.

2. Handling risks due to other causes:

Depending on the scale and degree of damage, the project investor or the unit using state budget funds shall prepare a record assessing damage, determine the cause, report to the competent authority for handling according to regulations.

Chapter IV
IMPLEMENTATION

1. Organizing the review of design and estimate of forest engineering works of projects decided to invest by the Ministry of Agriculture and Rural Development.

2. Periodic or spot checks on the implementation of work on preparation, review, approval, and execution by relevant agencies and units.

3. Advising and assisting the Minister of Agriculture and Rural Development in handling difficulties and issues during the implementation of this Circular.

The investment decision-making authority, design approval decision-making authority as stipulated in Articles 7 and 8 of this Circular shall be responsible for:

1. Deciding on the delegation and authorization of the review and approval of designs and budgets in accordance with the provisions of the law and specific conditions.

2. Exercising the rights and responsibilities of the investment decision-making authority as prescribed by law for projects decided upon by themselves.

3. Inspecting the review work of subordinate specialized agencies, promptly addressing any difficulties encountered.

1. Organizing the review of designs and budgets for forest engineering works of projects decided upon by the provincial People's Committee for investment.

2. Advising and assisting the Chairman of the provincial People's Committee and reporting to the Minister of Agriculture and Rural Development to handle any difficulties and issues arising during the implementation of this Circular by agencies and units within the province.

Article 24. Effective Date

1. This Circular shall take effect from January 1, 2020.

2. Circular No. 23/2016/TT-BNNPTNT dated June 30, 2016, guiding certain aspects of forest engineering project management issued by the Ministry of Agriculture and Rural Development ceases to be effective from the date this Circular takes effect.

3. In cases where regulatory legal documents and standards cited in this Circular are amended, supplemented, or replaced by other documents, the amended, supplemented, or replacing documents shall apply.

4. During the implementation process, if there are any difficulties or obstacles, relevant agencies and units are requested to promptly report to the Ministry of Agriculture and Rural Development for research and resolution.

1. Designs and budgets for forest engineering works that have been reviewed by competent authorities before the effective date of this Circular but not yet approved do not need to be reviewed again.

2. Adjustments to designs and budgets for forest engineering works after the effective date of this Circular shall be carried out in accordance with the provisions of this Circular./.