Circular No. 1500/TC/ĐT regarding the implementation of the plan and allocation of capital for basic construction investment in 2004

LETTER

OF THE MINISTRY OF FINANCE NO. 1500 TC/ĐT ON FEBRUARY 17, 2004
REGARDING THE IMPLEMENTATION OF THE PLAN AND CAPITAL INVESTMENT FOR CONSTRUCTION
IN 2004

Respected: - Ministries, ministerial-level agencies, government agencies,

General Company 91, central agencies of social organizations.

- People's Committees of provinces and centrally-administered cities.

To implement Decision No. 242/2003/QĐ-TTg dated November 17, 2003 of the Prime Minister on the allocation of the state budget for 2004, Resolution No. 01/2004/NQ-CP dated January 12, 2004 of the Government on key measures to focus on directing and managing the implementation of the plan and state budget for 2004, and Directive No. 29/2003/CT-TTg dated December 23, 2003 of the Prime Minister on improving investment and construction management with state capital, the Ministry of Finance guides certain points regarding the issuance of capital for construction investment in 2004 as follows:

I. REQUIREMENTS FOR IMPLEMENTING THE PAYMENT PLAN
CAPITAL FOR CONSTRUCTION INVESTMENT IN 2004

Based on the investment plan for construction in 2004 assigned by the Prime Minister in Decision No. 242/2003/QĐ-TTg dated November 17, 2003 and the indicators assigned by the Minister of Planning and Investment pursuant to the Prime Minister’s authorization in Decision No. 149/2003/QĐ-BKH dated November 27, 2003, ministries, ministerial-level agencies, government agencies, General Company 91, central agencies of social organizations (hereinafter referred to collectively as ministries), and People's Committees of provinces and centrally-administered cities (hereinafter referred to collectively as provincial People's Committees) shall prepare the capital investment plan for construction in 2004, detail the capital investment for each project (in accordance with Appendix No. 01 attached to Circular No. 44/2003/TT-BTC dated May 15, 2003 of the Ministry of Finance guiding the management and payment of investment capital and operational capital with investment characteristics from state budget sources) ensuring the following principles:

1. Not to change the total amount of centralized investment capital for construction, the structure of capital for implementing investment according to some important sectors and fields, the amount of capital for projects in Group A, the total amount of planning capital, and preparation capital as decided by the Prime Minister and the Minister of Planning and Investment.

For localities, based on the Prime Minister’s Decision, the Provincial People's Council decides the local budget estimate not lower than the level allocated by the Prime Minister in accordance with the provisions of the State Budget Law. In case it is necessary to change the indicators assigned by the Prime Minister, it must be approved by the Prime Minister; in case it is necessary to change the indicators assigned by the Minister of Planning and Investment, it must be approved by the Ministry of Planning and Investment.

Detail the structure of capital for construction works, equipment, and other costs for projects in Group A; allocate specific amounts of capital for planning and preparation projects; allocate amounts of capital and the structure of capital for construction works, equipment, and other costs for projects in Groups B and C. Projects preparing to start (if any) need to be noted separately in the project implementation capital structure.

2. Projects scheduled for 2004 must have complete investment and construction procedures as follows:

- Continuing projects must have complete investment decisions, technical design approval decisions, and general estimates as prescribed.

- New projects starting in 2004 must have investment decisions made before October 31, 2003, and technical design approval decisions and general estimates. For Group A projects, if there is no approved technical design and general estimate but there is a necessity to start construction, then there must be an approved technical design and estimate for the initial construction phase; at the latest, when 30% of the total investment has been completed, there must be an approved technical design and general estimate.

3. Firmly reduce or withdraw capital from projects (including continuing projects) that do not comply with approved planning, do not meet the actual needs of the sector or locality, or do not have complete investment and construction procedures as prescribed above to ensure the concentration and prioritization of the 2004 investment capital plan and its alignment with the ability to balance capital. Allocate part of the capital to settle outstanding volumes from previous years, repay preferential loans to implement the program of solidifying irrigation canals, rural transportation infrastructure, village craft infrastructure, and aquaculture infrastructure; allocate sufficient matching funds for ODA projects to ensure progress according to signed agreements, especially those to be completed in 2004; prioritize capital for urgent and important projects, projects to mitigate flood and natural disaster impacts, and projects capable of being put into use within the year.

Projects in Group C must be allocated sufficient capital to complete within two years from the start date, and projects in Group B within four years.

Ministries, sectors, and localities that have received advance allocations of capital from financial authorities must allocate the advanced capital into the 2004 plan to repay the state budget; if insufficient allocation is made, the Ministry of Finance will deduct from the total investment amount of the ministry, sector, or locality. Localities must allocate sufficient capital to repay advances from the state budget; if insufficient allocation is made, the Ministry of Finance will deduct from the supplementary allocation from the state budget for the locality.

After detailing the payment plan for investment capital in 2004 for projects, ministries and provincial People's Committees must send to the Ministry of Finance (Investment Department) before February 28, 2004, for monitoring, inspection, and as the basis for issuing investment capital in 2004. By the end of the first quarter of 2004, the Ministry of Finance will compile and report to the Prime Minister on the situation of allocating the 2004 investment capital plan.

II. ISSUANCE AND PAYMENT OF CAPITAL FOR CONSTRUCTION INVESTMENT IN 2004

1. Ministries and provincial People's Committees must instruct project sponsors to promptly complete investment and construction procedures, bidding, signing contracts, construction work according to schedule, and inspecting quantities to be eligible for immediate capital payment from the beginning of the year.

2. The issuance and payment of investment capital shall be carried out in accordance with the Investment and Construction Management Regulations and Circular No. 44/2003/TT-BTC dated May 15, 2003 of the Ministry of Finance guiding the management and payment of investment capital and operational capital with investment characteristics from state budget sources. Projects allocated capital to settle outstanding volumes from previous years must comply with the regulations of the Investment and Construction Management Regulations and the provisions in Directive No. 29/2003/CT-TTg dated December 23, 2003 of the Prime Minister.

3. The Financial Authority ensures sufficient funds for disbursement to projects scheduled in the plan for the year 2004 from the beginning of the year. Ministries and People's Committees of provinces closely direct the project sponsors to implement their tasks, while coordinating closely with the Ministry of Finance to promptly resolve any arising issues, ensuring that there are no delays in the disbursement of investment funds.