Decision No. 171/2006/QD-TTg On the issuance and use of government bonds for the period 2003-2010

Pursuant to …;

On the issuance and use of government bonds for the period 2003-2010

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to Resolution No. 414/2003/NQ-UBTVQH11 dated August 29, 2003 of the Standing Committee of the National Assembly on the issuance of government bonds for the construction of important transportation and water conservancy projects in the country;

Pursuant to Document No. 507/UBTVQH11 dated May 25, 2006 of the Standing Committee of the National Assembly on the allocation and use of funds from government bonds for the period 2003-2010;

Pursuant to Decree No. 141/2003/NĐ-CP dated January 20, 2003 of the Government on the issuance of government bonds, government-guaranteed bonds, and local government bonds.

Considering the proposal of the Minister of Planning and Investment at Document No. 4649/BKH-TH dated June 23, 2006 regarding the use of funds from government bonds for the period 2003-2010,

Pursuant to …;

Article 1. Issuing government bonds to raise capital in Vietnamese dong and foreign currency for investment in certain important national projects according to the List of Projects Using Government Bond Funds for the Period 2003-2010 (Annex attached).

Article 2.

1. The total amount of government bonds issued during the period 2003-2010 is 110,000 billion VND.

2. The annual issuance amount and timing will be determined based on capital requirements and project implementation progress.

All raised capital from government bonds will be centralized at the State Treasury and disbursed according to project implementation progress.

Foreign currency obtained from issuing foreign currency-denominated bonds, after deducting direct foreign currency expenditures, will be sold to the State Bank of Vietnam to replenish the state's foreign exchange reserves; the Vietnamese dong paid by the State Bank of Vietnam to purchase this foreign currency will be transferred to the State Treasury.

Article 3. Priority order for allocating capital for investment projects funded by government bonds is as follows:

It is necessary to ensure priority allocation of capital for projects pursuant to Decisions No. 182/2003/QĐ-TTg dated September 5, 2003, No. 286/QĐ-TTg dated March 23, 2004, No. 252/QĐ-TTg dated March 8, 2004 of the Prime Minister and Resolution No. 33/2004/QH11 of the National Assembly, Session XI.

Article 4Principles for allocating government bond funds

1. Ensuring that capital allocation does not exceed the total amount announced and allocated by sector and field.

2. Concentrating capital investment in projects according to priority order, ensuring sufficient capital to complete projects and meet urgent project requirements.

Article 5. Responsibilities of Ministries, sectors, and People's Committees of provinces and centrally-administered cities:

1. The Ministry of Planning and Investment:

a) Announcing and allocating the plan for government bond capital to each Ministry and locality regarding the total amount of government bond capital, the total amount of government bond capital by sector and field managed by the Ministry and province or centrally-administered city; the list of projects using government bond funds (without specifying the specific capital amount for each project) as per the annex attached to Document No. 4649/BKH-TH;

b) Taking the lead and coordinating with the Ministry of Finance to review and aggregate the annual capital needs of projects listed in the catalog as the basis for issuing government bonds in the year, submitting to the Prime Minister for consideration and decision;

c) Reporting periodically every three months annually and at irregular intervals to the Prime Minister on the implementation of investments from government bond funds;

d) Taking the lead together with the Ministry of Finance and related agencies to monitor the allocation of capital by Ministries and localities to ensure compliance with purpose, target groups, and capital allocation principles; submitting to the Prime Minister for handling issues arising beyond their authority during implementation.

2. Ministry of Finance:

a) Organizing the issuance of government bonds according to the plan and the progress of projects using government bond funds;

b) Implementing accounting and settlement of capital raised from government bonds and its use; organizing management, distribution, payment, and settlement of investment capital for projects in accordance with regulations;

c) Reporting periodically every three months to the Prime Minister on the situation of raising capital and the distribution, payment of investment capital for projects;

d) Coordinating with the Ministry of Planning and Investment and related agencies to submit to the Prime Minister for handling issues arising during implementation.

3. The State Bank of Vietnam:

a) Cooperating with the Ministry of Finance to organize auctions for the issuance of government bonds through the banking system;

b) Organizing the purchase of foreign currency obtained from issuing foreign currency-denominated bonds to replenish the state's foreign exchange reserves and selling foreign currency to the Ministry of Finance to repay principal and interest on foreign currency-denominated bonds when due.

4. Ministries: Transport, Agriculture and Rural Development, Defense and People's Committees of provinces and centrally-administered cities:

a) After receiving the announcement of the allocation plan for government bond capital, implementing the allocation of these funds to individual projects according to the order and principles set out in Article 3 and Article 4 of this Decision.

- Only allocate capital to projects that have completed all required investment procedures in accordance with current investment and construction management regulations;

- In cases where there is insufficient funding to allocate to projects, delay the schedule after 2010 or use other sources of funding to proceed;

- Register the capital allocation plan with the Ministry of Planning and Investment and the Ministry of Finance for monitoring and disbursement;

- For roads connecting to the centers of communes without motor vehicle access, in addition to government bond funds, localities need to allocate local budgets and mobilize additional legitimate sources of funding, including community contributions, for investment.

b) Annually propose the demand for government bond capital in the report sent to the Ministry of Planning and Investment and the Ministry of Finance for consolidation of the capital needs of projects already included in the catalog as the basis for issuing government bonds submitted to the Prime Minister for consideration and decision.

c) Quarterly report on the implementation of plans for projects using government bond funds to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and reporting to the Prime Minister.

d) Ministries, localities using government bond funds must concentrate on directing the urgent and thorough implementation, ensuring quality, compliance with prescribed regulations, promptly putting projects into operation to maximize effectiveness, and preventing waste, loss, and corruption.

The Ministry of National Defense shall uniformly manage planning and investment capital for border patrol road projects, approve component projects according to each province's territory, with the implementation period of each component project not exceeding two years.

Article 6. Entrust the Ministry of Planning and Investment to take the lead, coordinate with the Ministry of Transport and the Ministry of Finance to review and consolidate the number of communes without automobile-accessible roads to commune centers, and submit a list of construction projects, investment sources from government bond issuance, and other funding sources to the Prime Minister for decision.

Article 7. All contents stipulated in Decisions No. 182/2003/QĐ-TTg dated September 5, 2003, Decision No. 286/QĐ-TTg dated March 23, 2004, and Decision No. 252/QĐ-TTg dated March 8, 2004 of the Government that conflict with this Decision are hereby abolished.

Article 8. This Decision shall take effect from the date of signing.

THE MINISTERS, HEADS OF GOVERNMENT-LEVEL MINISTRIES, HEADS OF GOVERNMENT-LEVEL AGENCIES, AND CHAIRMEN OF PROVINCE AND CITY PEOPLE'S COMMITTEES DIRECTLY UNDER THE CENTRAL GOVERNMENT SHALL BE RESPONSIBLE FOR ENFORCING THIS DECISION./.