Circular No. 18/2006/TT-BNN guiding certain contents for implementation of Government Decree No. 16/2005/NĐ-CP dated February 7, 2005 on management of investment projects for construction works (using state budget funds) under the Ministry of Agriculture and Rural Development.

CIRCULAR

Guidelines for Implementing Certain Provisions of Decree No. 16/2005/NĐ-CP

dated February 7, 2005 of the Government on Managing Investment Projects for Construction Works (Using State Budget Funds) under the Management of the Ministry of Agriculture and Rural Development

construction works (financed by state budget funds) under the management of the Ministry of Agriculture and Rural Development

July 2003 Government Decree on the functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development;

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Pursuant to Decree No. 86/2003/NĐ-CP dated July 18, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development; Pursuant to the Government Decree No. 209/2004/NĐ-CP dated December 16, 2004 on the management of construction project quality;

Pursuant to Decree No. 16/2005/NĐ-CP dated February 7, 2005 of the Government on Managing Investment Projects for Construction Works;

Pursuant to the Government Decree No. 209/2004/NĐ-CP dated December 16, 2004 on the management of construction project quality;

Pursuant to Circular No. 04/2005/TT-BXD dated April 1, 2005 of the Minister of Construction guiding the preparation and management of project investment costs for construction works;

Pursuant to Circular No. 08/2005/TT-BXD dated May 6, 2005 of the Minister of Construction guiding certain contents regarding the preparation, review, approval of investment projects for construction works, and handling transitional implementation of Decree No. 16/2005/NĐ-CP dated February 7, 2005 of the Government;

Pursuant to Circular No. 12/2005/TT-BXD dated July 12, 2005 of the Minister of Construction guiding certain contents regarding the management of construction quality and the conditions of capacity of organizations and individuals in construction activities;

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. Purpose: The Ministry of Agriculture and Rural Development guides certain contents for implementing the management of investment projects for construction works according to Decree No. 16/2005/NĐ-CP dated February 7, 2005 of the Government (hereinafter referred to as Decree No. 16/CP) to ensure effective management, ensuring the quality of construction works, construction progress, safety of construction works, and ensuring economy and preventing waste and loss in construction investment activities.

Article 2. Scope of Regulation This Circular applies to investment projects for construction works using state budget funds managed by the Ministry of Agriculture and Rural Development and to investment projects for construction works using state budget funds managed by provincial and centrally-run city People's Committees related to the agriculture and rural development sector.

It does not apply to investment projects without construction works.

II. TASKS AND POWERS OF INVESTMENT CONSTRUCTION PROJECT MANAGEMENT

1. Tasks and Powers of the Investment Decision-Maker for Construction Works:

To implement Articles 39 and 44 of the Construction Law.

To implement Article 11 of Decree No. 16/CP.

- For projects where the Government decides on investment and assigns the Ministry as the investor, the Ministry may delegate (with detailed decisions) specific project management tasks to project management boards.

- The Minister decides on the investment policy and determines the investor for all construction investment projects (using state budget funds) managed by the Ministry of Agriculture and Rural Development.

- The Minister decides on investment for Group A, B, and C projects of the Ministry (referred to as investment projects).

- Based on the scale, content, nature of each project, and the capacity of the investor, the Minister will decide to choose one of the following project management forms:

+ Hiring consulting organizations to manage projects: When the investor lacks the necessary conditions and capacity for project management.

+ Directly managing projects: When the investor has the necessary conditions and capacity for project management.

- The Minister approves tender plans, tender documents, and tender results for packages using state budget funds managed by the Ministry of Agriculture and Rural Development.

- Issuing guidance documents for organizations and individuals to implement regulations on construction quality management for specialized construction works managed by the Ministry nationwide.

- Regularly and randomly inspect compliance with construction quality management regulations for specialized construction works and recommend measures when violations are detected.

2. Tasks and Powers of the Investor for Construction Works:

To implement Articles 41, 50, 57, 68, 89, and 104 of the Construction Law.

To implement Articles 5, 7, 8, 13, 16, 17, 36, and 37 of Decree No. 16/CP.

- The investor for construction works must be decided by the Minister before preparing the investment project for construction works and must be reflected in the decision allowing the preparation of the investment project in accordance with Article 3 of Decree No. 16/CP.

- Depending on the specific characteristics of each project, the investor may delegate some or all of their tasks and powers to project management boards.

- If the investor directly manages the project, they can establish a Project Management Board and follow Article 36 of Decree No. 16/CP.

- If the investor hires a consulting organization to manage the project, they must comply with Article 37 of Decree No. 16/CP.

- The investor who directly manages the project must have the necessary conditions and capacity as stipulated in Articles 55 and 56 of Decree No. 16/CP.

- The investor organizes the preparation or hires consultants with the necessary conditions and capacity to prepare the Investment Report, Construction Project, and Economic and Technical Report for submission to the competent authority for approval in accordance with Articles 4, 5, 8, 9, and 12 of Decree No. 16/CP.

- The investor organizes the review and approval of technical design, construction drawings, total estimates, and detailed estimates for construction works that require project preparation and bears legal responsibility for the results of the review and approval.

- Construction drawings for individual construction works before being put out for construction must be reviewed and approved by the investor and the investor is responsible for the construction drawings handed over to the contractor.

- If the investor lacks the necessary conditions and capacity for review, they may hire qualified organizations and individuals to review the design and estimate to serve as the basis for approval.

- The investor implements adjustments to the Technical Design - Total Estimate, Construction Drawing Design - Project Estimate but does not change from the basic design and project already approved according to Article 13 of Decree 16/CP, specifically as follows:

+ If the adjustment of the design and estimate leads to exceeding the Total Investment Ceiling or changing the objectives, tasks, level of the project or changing the structure but not exceeding the total investment ceiling, then the investor must prepare an investment supervision report and submit it to the investment decision-maker for consideration and decision.

+ If the adjustment of the design and estimate leads to exceeding the approved Total Estimate but not exceeding the Total Investment Ceiling, then the investor must organize a review and re-approval; report in writing to the Ministry and bear responsibility for their approval.

III. IMPLEMENTATION

1. In the case of projects that are being implemented:

a) If the project has been approved by the Ministry but has not yet approved the Technical Design - Total Estimate or Technical Construction Design - Estimate, then the investor must organize a review and approval.

- If the investor needs to adjust the project (due to exceeding the total investment ceiling), they must prepare an investment supervision report and submit it to the investment decision-maker for consideration and decision.

- If the Technical Design - Total Estimate has been approved, now the investor needs to adjust due to changes in policy (taken from the contingency reserve of the Total Estimate) and not exceeding the Total Investment Ceiling, then the investor organizes a review and approval themselves. For other contents of the adjustment different from the Technical Design - Total Estimate before the adjustment, the investor must obtain the agreement of the investment decision-maker.

b) For projects where the Ministry is the investment decision-maker (except for projects assigned by the Government to the Ministry of Agriculture and Rural Development as the investor, in which case the Ministry will issue a separate delegation decision), which have been approved at the stage prior to the issuance of Decree 16/CP. The Ministry assigns the Project Management Boards "to perform some of the investor's tasks", now adjusts to assign the Project Management Boards as investors.

c) For the Central Project Management Board for Water Resources Projects (CPO) which has been delegated by the Ministry to be the investor for Water Resources Projects using Official Development Assistance (ODA) funds, now assigns the Central Project Management Board for Water Resources Projects as the investor for the project.

2. For new projects: Implement in accordance with the Construction Law, Decree 16/CP, Decree 209/CP, and guiding circulars.

3. For construction projects invested in by the Ministry but delegated to localities as investors (on a project-by-project basis), the organizations entrusted as investors must also implement the contents of this Circular and current State regulations.

4. For construction projects invested in and decided upon by localities, they must implement in accordance with the Construction Law, Decree 16/CP, Decree 209/CP, and current State regulations. The Ministry of Agriculture and Rural Development coordinates with the Ministry of Construction in managing the quality of specialized construction works. The People's Committee of the province is responsible for State management of construction work quality within its administrative boundaries.

5. For dike and flood control projects involving two or more provinces, before approving the Technical Design - Total Estimate, technical solutions for the works must be agreed upon (through the Dike Management and Flood Control Bureau).

6. Monthly, before the 20th day, the investor reports on the implementation of the project in writing to the Ministry (through the Planning Department and relevant Bureaus).

7. In addition to the specific provisions mentioned above, related agencies and units must fully implement the contents stipulated in Decree No. 16/2005/NĐ-CP dated February 7, 2005 of the Government on project management for construction investment, Decree No. 209/2004/NĐ-CP dated December 16, 2004 of the Government on construction work quality management, and current regulations.

This Circular takes effect 15 days after its publication in the Official Gazette and replaces the contents of documents issued by the Ministry of Agriculture and Rural Development that conflict with these provisions. During implementation, if there are difficulties, agencies, units, organizations, and individuals must promptly report in writing to the Ministry of Agriculture and Rural Development for consideration and resolution./.