Decree No. 161/2016/ND-CP on special mechanisms for managing investment and construction for certain projects under national target programs during the period of 2016-2020

DECREE

SPECIAL MECHANISM IN MANAGING INVESTMENT AND CONSTRUCTION FOR CERTAIN PROJECTS UNDER NATIONAL TARGET PROGRAMMES FOR THE 2016-2020 PERIOD

||| Pursuant to the Law on Organization of the Government dated June 19, 2015;

Pursuant to the Law on Bidding dated November 26, 2013;

Pursuant to the Law on Public Investment dated June 18, 2014;

Pursuant to the Law on Construction promulgated on June 18, 2014;

Pursuant to Resolution No. 100/2015/QH13 of the National Assembly, Session XIII dated November 12, 2015 on approving the investment orientation for national target programmes for the 2016-2020 period;

At the proposal of the Minister of Planning and Investment,

The Government promulgates this Decree on the special mechanism in managing investment and construction for certain projects under national target programmes for the 2016-2020 period.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

Article 1. This Decree stipulates the special mechanism in managing investment and construction for certain projects under national target programmes for the 2016-2020 period with small scale and uncomplicated technology, where the State supports part of the investment and the remaining part is contributed by the people (referred to as small-scale Group C projects).

Article 2. This Decree applies to agencies, organizations, and individuals involved in implementing national target programmes for the 2016-2020 period.

Article 2. Criteria for Small-Scale Group C Projects

Small-scale Group C projects as defined in Clause 1, Article 1 of this Decree must meet the following criteria:

1. They fall within the scope of investment of national target programmes for the 2016-2020 period.

2. The total investment cost is less than five billion dong.

3. The project is located within the territory of one commune and managed by the People's Committee of that commune.

4. The technology is not complicated, with standard designs available.

5. They utilize part of the State budget, with the remaining funds contributed by the people and other sources, with the participation and supervision of the people. The people's contribution can be in cash or in kind, with labor days converted into cash.

6. They belong to the list of projects eligible for special mechanisms issued by the provincial People's Committee.

Chapter II

SPECIFIC PROVISIONS

Article 3. Review of Capital Sources and Ability to Balance Central Budget Funds, Government Bonds, National Treasury Bills, and ODA (referred to as central budget funds) for Small-Scale Group C Projects

Clause 1. Based on the notification from the central level regarding medium-term or annual capital, the provincial People's Committee organizes the review of capital sources and the ability to balance central budget funds for the list of small-scale Group C projects, without reviewing each individual project. Based on the report on the review of capital sources and the ability to balance funds by the Provincial Department of Planning and Investment, the provincial People's Committee decides on the investment orientation for the entire list of projects.

Clause 2. The allocation of capital for new projects must comply with the requirements set out in Clause 5, Article 54 of the Law on Public Investment.

Clause 3. The provincial People's Committee sends a consolidated report on the results of the review of capital sources and the ability to balance central budget funds for new projects of each national target programme (referred to as the consolidated report on the results of the review) to the Ministry of Planning and Investment, the Ministry of Finance, and the Programme Director for monitoring and supervision. The time for reporting shall not exceed thirty days from the date when the provincial People's Committee allocates central budget funds for new projects in the annual plan. The contents of the consolidated report on the results of the review include the following:

a) Regarding capital sources: The suitability of the projects with the investment capital, objectives, and target groups of the programme;

b) Regarding capital balancing: The ability to allocate capital for the projects within the total planned medium-term or annual investment capital of the programme, prioritizing according to legal provisions;

c) List of reviewed projects: Project name, location, scale, total investment cost (central budget, local budget, people's contributions, other sources...), implementation time and form.

Article 4. Preparation of construction project files

1. Projects applying special investment mechanisms shall prepare simplified construction project files (referred to as construction project files) instead of economic-technical investment construction reports.

2. Contents of construction project files:

a) Project name, investment objectives, construction location, investor, scale, technical standards according to model designs and typical designs issued by competent state agencies, implementation time;

b) Total investment amount, including state support funds (central budget, local budgets at all levels), people's contributions, other mobilized funds. A list of costs, prioritizing the use of local materials and construction project file unit prices allowed to be applied according to market prices;

c) Construction drawings (if any) according to model designs and typical designs;

d) People's self-execution capacity and beneficiary community's capacity.

3. The management board implementing the National Target Program (referred to as the Management Board) of the commune has the responsibility to prepare construction project files to submit for review and approval by the Commune People's Committee. In cases where the Commune People's Committee entrusts the village to implement the project, the village-level Management Board (or equivalent organizations recognized by the Commune People's Committee) has the responsibility to prepare construction project files to submit for review and approval by the Commune People's Committee.

Article 5. Review of construction project files

1. The review file includes: Construction project files with contents as prescribed in Clause 2, Article 4 of this Decree; minutes of community meetings and relevant legal documents related to construction (if any).

2. Reviewing bodies:

a) The Commune People's Committee is responsible for reviewing construction project files. The Chairman of the Commune People's Committee establishes a review team consisting of: The leader of the Commune People's Committee as Team Leader, representatives from the community investment supervision board, financial-accounting department, experts or persons with professional qualifications selected by the community;

b) If the Commune People's Committee lacks the capacity, the District People's Committee assigns the specialized agency of the district to conduct the review.

3. Review contents:

a) Evaluation of the project's compliance with local construction planning, land use planning, construction plans, and new rural area development programs at the commune level;

b) Evaluation of the suitability of model designs and typical designs with the actual conditions of the construction site;

c) Technical feasibility and people's and community's self-execution capacity assigned to carry out the construction;

d) Investment policy and capital mobilization capacity (state, people's contributions, other resources) according to the decision approving the investment policy and report on capital assessment and state budget funding level (for projects funded from state budget funds not directly invested by the commune budget);

e) Reasonableness of costs compared to the local price level (market prices) and similar ongoing and completed projects (if any).

4. Review period and reporting results: The reviewing body shall submit a written report on the review results to the Commune People's Committee; the time limit does not exceed 10 working days from the date of receiving complete valid files.

Article 6. Approval of Construction Project Documents

Based on the review opinions, the People's Committee of the commune directs to complete and approve the construction project documents.

The condition for approving the construction project documents for new projects to be initiated and allocated annual capital: Before the detailed capital plan is assigned to the project.

Article 7. Selection of Contractors through Community Participation Form

1. The form of selecting contractors for packages implemented by the community approved in the contractor selection plan is: community participation.

2. Legitimacy of the community, mass organizations, groups, and teams at the local level implementing the package:

a) The community, mass organizations, groups, and teams at the local level shall be considered legitimate to participate in the implementation of the tender packages specified in Article 27 of the Bidding Law when the residents of the community or group/team members, mass organizations live and reside within the area where the package is being implemented and benefit from it.

b) The representative of the community, mass organizations, groups, and teams must have full civil capacity according to the law, not be under criminal prosecution, and be chosen by the community, mass organizations, groups, and teams to sign contracts on their behalf.

3. The process of selecting contractors as the community, mass organizations, groups, and teams:

a) The commune management board drafts the contract including requirements regarding the scope, content of work to be performed, quality and progress targets, contract price, rights and obligations of the parties.

b) The commune management board publicly announces (at least three working days) the invitation to participate in the implementation of the package at the People's Committee office and on communal media outlets and community activity venues so that communities, mass organizations, and groups/teams in the area are aware. The announcement must clearly state the time for discussing the implementation plan.

c) The community, mass organizations, groups, and teams interested in reviewing the draft contract and preparing an application to implement the package/project including: Names, ages, capabilities, and relevant experience of the participants; bid price and progress schedule.

d) The commune management board reviews and selects the best community or organization and invites representatives for negotiation and signing the contract. Only assign local groups/teams to implement when there is no application from the community or organization or they do not meet the requirements.

e) The maximum time from public announcement of the invitation to participate in the implementation of the package to signing the contract is thirty days.

Article 8. Organization, Supervision of Construction, and Acceptance of the Project

1. Based on the approved construction project documents, the results of the contractor selection, and the detailed capital allocation plan for the project, the commune management board proceeds to sign a contract with the representative of the community or organization assigned to organize the construction.

2. The district People's Committee (for projects implemented by the commune People's Committee) and the commune (for projects implemented by the village) are responsible for assigning specialized staff to support construction; the commune management board and the community investment supervision board are responsible for supervising during the construction process.

3. The commune management board organizes the acceptance of the project, consisting of: representatives of the commune People's Committee, the commune management board; the community investment supervision board; representatives of the community, mass organizations, groups, and teams implementing the project; other related components decided by the commune People's Committee.

Article 9. Project preparation and management implementation costs

The contents and support standards shall be issued by the People's Committee of the province for approval by the Provincial People's Council in accordance with current regulations and specific conditions of the locality, but not exceeding the cost standards under the normal investment mechanism.

Article 10. Implementation Organization

1. People's Committees of provinces and centrally-administered municipalities:

a) Issuing model designs and typical designs;

b) Issuing a list of projects eligible to apply the special mechanism;

c) Reviewing sources of funding and the ability to balance central government budget funds according to Article 3 of this Decree;

d) Providing guidance on implementing mechanisms suitable to the specific characteristics and circumstances of the locality.

2. The Ministry of Finance shall provide guidance on the special simplified settlement mechanism for projects applying this mechanism.

For projects implemented under the form of state budget support for construction materials, the People's Committee of the province shall specify the management and settlement procedures for the state budget support funds in accordance with the actual conditions of the locality.

3. The Ministry of Planning and Investment shall take the lead and coordinate with relevant agencies to monitor, inspect, review, and summarize the implementation of this Decree; report to the Government for consideration of amendments and supplements to the Decree if necessary.

Chapter III

EFFECTIVE DATE

Article 11. Effective Date

1. This Decree takes effect from the date of issuance.

2. Repeal Decision No. 498/QD-TTg dated March 21, 2013 of the Prime Minister approving the supplementary investment mechanism for the National Target Program on New Rural Development for the period 2010-2020.

3. As for other contents related to investment and construction management not provided for in this Decree, they shall be implemented in accordance with current laws.

Article 12. Responsibility for Implementation

Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of provincial People's Committees, municipal People's Committees directly under the Central Government, and related organizations and individuals are responsible for enforcing this Decree.