Decision No. 159/1998/QĐ-TTg on amending certain provisions of the Regulation on management and use of credit capital for projects to build new and renovate fishing vessels and offshore fishing service vessels issued together with Decision No. 393/TTg dated June 9, 1997 of the Government Prime Minister.

Pursuant to …;

Decision on Amending Certain Articles of the Regulation on Management and Utilization of Credit Funds for Projects to Build New and Renovate Fishing Boats and Service Boats Operating in Distant Waters Issued Together with Decision No. 393/TTg dated June 9, 1997 of the Prime Minister

PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

At the proposal of the Minister of Fisheries,

DECISION:

Article 1. Amend and Supplement Certain Articles of the Regulation on Management and Utilization of Credit Funds for Projects to Build New and Renovate Fishing Boats and Service Boats Operating in Distant Waters Issued Together with Decision No. 393/TTg dated June 9, 1997 of the Prime Minister as follows:

"The Ministry of Education and Training is the state management agency and has overall and comprehensive authority over universities, colleges, and secondary vocational schools nationwide regarding admissions work.

"- Article 2: Temporary distant fishing is defined as fishing in areas limited by the 30-meter depth contour line outward, for the Gulf of Tonkin, East and West South China Sea, and the Gulf of Thailand, and the 50-meter depth contour line outward, for the Central Vietnam coastal waters.

Distant water fishing boats are those equipped with main engines of at least 90 horsepower; registered for operation at their place of residence or hold a distant water fishing permit issued by the aquatic resource protection authority."

2. Article 3 shall be amended as follows:

"Article 3: Projects to build distant water fishing boats using part of the credit investment funds according to the State plan shall enjoy the following preferential treatments:
1. Feasibility studies and project approval do not require preliminary feasibility studies.
2. Competitive bidding is not mandatory for implementing the projects.
3. The loan interest rate is the preferential rate of credit investment funds according to the State plan prescribed annually by the Prime Minister. 4. The project investor (project owner) borrowing credit investment funds according to the State plan does not need to provide collateral and can use assets formed from borrowed funds to secure the loan. During the period before the loan is fully repaid, the investor may not transfer, sell, or pledge assets financed by credit investment funds according to the State plan.

5. The maximum loan term shall not exceed seven years, with interest calculated from the date the loan debt arises; the interest payment starts one month after the boat officially begins production, and principal repayment commences twelve months after the boat officially begins production.

6. State-owned enterprises suffering losses in previous years but not yet resolved, if they have an effective business plan approved and guaranteed by the competent ministry or provincial people's committee, may still be eligible for loans. Households of fishermen who have encountered difficulties due to unforeseen circumstances and are unable to repay old debts, if confirmed by the provincial people's committee, may be granted extended old debt repayment and considered for new loans to build boats if they meet the loan conditions stipulated."

3. Article 4 shall be amended as follows:

"- Article 4: Procedures for establishing, reviewing, and allocating credit investment plan indices for projects to build distant water fishing boats:

1. Based on the guidelines of the Ministry of Fisheries, entities (project owners) eligible for loans under this Regulation shall prepare projects to build distant water fishing boats and submit them for approval by the provincial people's committee (for projects managed by localities) or by the competent ministry (for projects managed by ministries).
2. On the basis of proposals from localities and ministries regarding projects to build distant water fishing boats, the Ministry of Fisheries will compile and send to the Ministry of Planning and Investment for balancing and presenting to the Prime Minister the annual credit investment plan for building distant water fishing boats.
3. Based on the approved plan, the Ministry of Planning and Investment will allocate the total amount of loan funds to provincial people's committees and ministries with projects. 4. Provincial people's committees and ministries with projects are responsible for approving projects within the allocated total amount of loan funds and distributing loan funds to specific projects, registering with lending organizations, and simultaneously compiling and reporting the allocation of loan plans to the Ministry of Planning and Investment and the Ministry of Fisheries."

4. Article 5 shall be amended as follows:

"- Article 5: Capital investment for projects to build distant water fishing boats shall be raised from multiple sources, including a portion from annual State plan credit investment funds. Interest rate subsidies for lending organizations for projects to build distant water fishing boats from raised capital shall be implemented according to the Decision of

To enhance the effectiveness of projects and the responsibility of investors, when borrowing funds, investors must ensure a minimum of 15% self-funded capital of the total investment amount for the project. Lending organizations shall advance funds based on signed credit agreements and contracts for shipbuilding, machinery, equipment, and fishing gear procurement. The advance amount shall not exceed 25% of the total project investment and shall be transferred to shipyards and suppliers upon the investor's request."

"Article 12: Provincial People's Committees and ministries managing projects to build distant water fishing boats shall have the following responsibilities: The Prime Minister.

1. Identify individuals capable of managing and operating fishing businesses to serve as investors, direct investors to establish projects, form a Project Appraisal Board, and allocate credit investment indices to each project.

5. Article 12 is amended as follows:

The Project Appraisal Board shall be chaired by the Chairman of the provincial people's committee (for projects managed by localities) or by the Minister (for projects managed by ministries). Members of the Board shall be selected and appointed by the Chairman, including representatives of lending organizations (Investment Development General Department, Development Bank) as mandatory members.
The Project Appraisal Board shall be responsible for appraising projects to build distant water fishing boats according to the contents specified in the feasibility study before the Chairman of the provincial people's committee or the Minister considers and decides to approve the project.

When participating in the Project Appraisal Board, lending organizations must carefully review the project's ability to recover capital and repayment period to make recommendations to the Chairman of the provincial people's committee or the Minister to approve or not approve the project, and refrain from re-appraising the project once it has been approved by the Chairman of the provincial people's committee or the Minister.

Based on the results of the project appraisal and the recommendations of the Board, the Chairman of the provincial people's committee or the Minister shall consider and decide to approve the project and bear responsibility for its effectiveness."

When participating in the Project Appraisal Board, the lending organization must carefully examine the project's ability to recover capital and repayment period to make recommendations to the Chairman of the Provincial People's Committee or the Minister to approve or not approve the project, and not to re-appraise the project once it has been approved by the Chairman of the Provincial People's Committee or the Minister.

Based on the results of the project appraisal and the recommendations of the Board, the Chairman of the People's Committee of the province or centrally governed city, or the Minister shall consider and decide to approve the project and bear responsibility for the effectiveness of the project.
2. Monitor, inspect, urge the project sponsors regarding the implementation status of the projects, production organization, and debt repayment, report to the Prime Minister on cases of project risks due to force majeure causes to propose remedial measures. This Decision takes effect from the date of signing. The Minister of Fisheries and the Ministers of Planning and Investment, Finance, and the Governor of the State Bank shall guide and inspect the implementation of this Decision.

"The Chairperson of the People's Committees of provinces with forests shall direct the logging of wood for building distant fishing vessels according to the assigned plan."

Article 2. This Decision takes effect from the date of signing. The Minister of Fisheries and the Ministers of Planning and Investment, Finance, and the Governor of the State Bank shall guide and inspect the implementation of this Decision.

Article 3. The Ministers of Fisheries, Planning and Investment, Finance, Transport, Agriculture and Rural Development, the Governor of the State Bank of Vietnam, the Heads of relevant Ministries and sectors, and the Chairpersons of the People's Committees of provinces and centrally governed cities are responsible for implementing this Decision.