Circular No. 16-TC/NHKT on the issuance, lending, and financial management for key national projects

CIRCULAR

Regarding the allocation, lending, and financial management for key national projects

To implement the Government Council's Decision No. 54-CP dated March 27, 1974, which issued the list of key national projects in the 1974 construction plan and stipulated certain centralized management regulations to effectively oversee key national projects, the Ministry of Finance advises the Financial Departments under the Ministry of Finance, the Central Construction Bank, and the Construction Banks and Financial Departments at provincial levels on the following matters:  1- In cases where key national projects listed annually exceed planned state budget expenditures but remain within the project design and do not exceed the capital approved in the project design by the Prime Minister, simultaneously with the relevant project management agencies reporting such over-budget situations to the Government and the Ministry of Finance, the Construction Bank may continue to allocate funds to cover the actual completed construction work that exceeds the state budget plan.

In cases where the state provides key projects with early supplies such as wood, steel, cement, based on the quantity provided, the Construction Bank will negotiate with the implementing units to adjust loan quotas for these key projects and provide loans for material reserves according to the adjusted quota (this case does not apply the excess quota lending method). For materials managed uniformly by the state, if unused or surplus, the unit must return them to the state supply agency and cannot use them for other projects or sell them off. When returning surplus materials, payment must be made to repay the Construction Bank's loans.

2- Financial agencies and Construction Banks must assist and urge project management agencies to develop annual and quarterly financial plans to ensure sufficient funding and efficient use of funds, completing key national projects; pay attention to conditions allowing some sections or parts to be put into operation ahead of schedule when possible; assist and promote ministries and units to quickly improve organization and review construction project budgets. All budgets must be prepared and reviewed based on construction designs and state price standards suitable for the specific project.

Budgets must be reviewed by the Construction Bank before allocation. The Central Construction Bank is responsible for organizing effective budget reviews for key projects. Allocation for completed work volumes at key projects must follow the agreed phased allocation method.

Construction Banks will lend to contracting units undertaking key projects for material reserves and unfinished construction costs according to Circular 91/TTg.

Financial agencies and Construction Banks must assist and encourage construction units of key projects to manage economic, technical, and financial aspects well, establish plans to reduce construction costs based on specific and practical economic and technical measures, aiming to increase labor productivity and save all costs. Construction Bank agencies must have dedicated staff or personnel closely monitoring sites to inspect and urge implementation of plans and cost reduction measures, participating in quarterly economic and financial performance analysis of units, promptly proposing measures to accelerate construction progress, and strengthening management of labor, equipment, materials, and capital.

4- The Central Construction Bank shall study and issue work regulations for Construction Banks regarding key national projects. Dedicated Construction Bank staff managing key projects must maintain project records according to a unified model of the Central Construction Bank, recording fully and promptly, and strictly adhering to the reporting system specified in the Construction Bank's work regulations for key projects.

The Financial Departments and the Central Construction Bank are responsible for organizing oversight, summarization, reflection, periodic on-site inspections, and reporting every ten days and monthly to the Minister of Finance about the construction, management, allocation, lending, and issues requiring resolution for key projects.

MINISTER OF FINANCE