CONSOLIDATED DOCUMENT JOINT CIRCULAR NO. 18/2016/TTLT-BGTVT-BTC GUIDING THE VALUATION METHODS AND PRICE MANAGEMENT OF PUBLIC SERVICES PRODUCTS AND SERVICES IN THE FIELD OF INTERNAL WATERWAY MANAGEMENT AND MAINTENANCE IMPLEMENTED THROUGH THE GOVERNMENT PROCUREMENT METHOD USING THE STATE BUDGET

JOINT CIRCULAR

||| Guidelines for valuation methods and price management||| of public goods and services in the field of inland waterway management and maintenance carried out under the government procurement method using central budget funds

||| Pursuant to the Law on Inland Waterway Traffic Safety No. 23/2004/QH11 dated June 5, 2004;

______________________

||| Pursuant to the Government's Decree No. 107/2012/NĐ-CP dated December 20, 2012 stipulating the functions, powers, and organizational structure of the Ministry of Transport;

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003, promulgated by the Government detailing and guiding the implementation of the Law on State Budget;

Based on Decree No. 130/2013/NĐ-CP dated October 16, 2013 of the Government on production and supply of public goods and services;

Pursuant to Decree No. 177/2013/ND-CP dated November 14, 2013 of the Government detailing and guiding the implementation of certain provisions of the Law on Prices;

Pursuant to the Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government stipulating the functions, powers, and organizational structure of the Ministry of Finance;

||| The Minister of Transport and the Minister of Finance jointly issue this Circular guiding the valuation methods and price management of public goods and services in the field of inland waterway management and maintenance carried out under the government procurement method using central budget funds.

||| This Circular stipulates the methods for determining prices and managing prices of public goods and services in the field of inland waterway management and maintenance carried out under the government procurement method using central budget funds according to the provisions of the Government's Decree No. 130/2013/NĐ-CP dated October 16, 2013 on the production and supply of public goods and services. ||| Article 1. This Circular applies to agencies, organizations, and enterprises related to the production and supply of public goods and services in the field of inland waterway management and maintenance carried out under the government procurement method using central budget funds.

Article 1. Scope of Regulation

||| Article 2. Agencies, organizations, and individuals not falling within the scope of Article 1 shall apply the provisions of this Circular to prepare tender packages, while complying with the legal regulations on bidding when bidding for the provision of public goods and services in the field of inland waterway management and maintenance.

Article 2. Applicability

||| Article 3. The price of public goods and services in the field of inland waterway management and maintenance (hereinafter referred to as the price of public goods and services) shall be determined to ensure:

||| 1. Covering actual reasonable and legitimate costs to complete a unit volume of public goods and services consistent with technical and economic standards and norms in inland waterway management and maintenance issued by competent state authorities and the technical condition of each project or specific work item.

Article 3. Principles for Determining Prices

||| 2. Being consistent with market conditions at the construction site and the quantity and quality of products and services.

||| 3. Not including in the price of public goods and services expenses already covered by the state budget.

||| 4. For emergency repair work to address the aftermath of typhoons, floods, and natural disasters in the field of inland waterways carried out under the government procurement method, it shall be implemented in accordance with Circular No. 37/2010/TT-BGTVT dated December 1, 2010 of the Minister of Transport on flood prevention, typhoon response, disaster mitigation, and rescue operations on inland waterways, and any subsequent amendments, supplements, or replacements thereof (if any).

||| Article 4. Structure and Method for Determining the Price of Public Goods and Services

||| 1. The structure of the price of public goods and services in the field of inland waterway management and maintenance carried out under the government procurement method for units implementing such activities shall be guided by Appendix No. 01 attached to this Circular, including:

||| a) Raw material, fuel costs;

||| b) Labor costs;

||| c) Machinery, equipment, and construction vehicle costs;

||| d) Other direct costs;

||| đ) Common costs;

||| e) Pre-tax income;

||| g) Value-added tax.

||| 2. The method for determining the price of public goods and services in the field of inland waterway management and maintenance carried out under the government procurement method as stipulated in Clause 1 of this Article shall be guided by Appendix No. 02 attached to this Circular.

||| 3. Any other related costs (if any) shall be implemented in accordance with Article 5 of this Circular.

||| Article 5. In cases where laws require the occurrence of other related costs such as: project feasibility study consultancy fees, design consultancy fees, supervision consultancy fees, and other consultancy fees related to investment construction activities; traffic safety assurance costs during construction and repair works; auditing and settlement costs, these costs shall be calculated separately for each specific task based on the legal regulations on construction cost management and the regulations on final settlement of completed projects funded by state capital.

||| Article 6. Management costs for ordering the supply of public goods and services (if any):

Article 5. Other related costs

||| a) Management costs for ordering the supply of public goods and services (if any) are costs for the management work of the unit assigned the task of managing the ordering of public goods and services in the field of inland waterway management and maintenance.

||| For management costs for ordering the supply of public goods and services for regular and emergency repair work; regular dredging sufficient to meet the construction project requirements under the Construction Law, the costs shall be determined according to the project management cost norms set by the Ministry of Construction for construction investment projects.

||| For management costs for ordering the supply of public goods and services for regular management and maintenance work (excluding regular dredging work already specified above), the costs shall be determined as a percentage of the total regular maintenance management budget (excluding the regular dredging budget mentioned above) as decided annually by the Ministry of Transport in the state budget allocation decision. This percentage shall be applied according to the project management cost norms set by the Ministry of Construction for construction investment projects.

||| b) The unit assigned the task of managing the ordering of public goods and services may only use these costs when they are not covered by the state budget for the ordering work.

The management costs for ordering the supply of public utility products and services for management and regular maintenance work (excluding regular dredging work already specified above) shall be determined as a percentage (%) of the total management and regular maintenance budget (excluding funds for regular dredging work mentioned above) as set forth in the annual state budget allocation decision of the Ministry of Transport. This percentage (%) shall be applied according to the project management cost standards prescribed by the Ministry of Construction for investment construction projects.

The unit assigned the task of managing the ordering of public utility products and services may only use these costs when such activities are not covered by the state budget.

Article 6. Use of economic and technical norms

The construction of prices for public goods and services in the field of inland waterway management and maintenance must use the system of economic and technical norms issued by competent authorities.

Article 7. Pricing Authority

The unit price or price of public goods and services in the field of inland waterway management and maintenance, implemented through the State's procurement using central government budget funds, shall be decided by the Ministry of Transport and bear responsibility for such decisions.

Article 8. Time of Price Determination

1. The determination of prices for public goods and services in the field of inland waterway management and maintenance shall be carried out after the State budget expenditure plan has been assigned to the Ministry of Transport by the Ministry of Finance.

The time limit for reviewing and determining prices shall be carried out in accordance with Clause 2, Article 9 of Decree No. 177/2013/ND-CP dated November 14, 2013 of the Government detailing and guiding the implementation of certain provisions of the Law on Prices and any subsequent amendments, supplements, or replacements thereof.

Article 9. Adjustment of Contract Prices; Subsidy Levels for Production and Supply of Public Goods and Services

The adjustment of contract prices; subsidy levels for production and supply of public goods and services under the procurement method shall be carried out in accordance with current laws.

Article 10. Inspection of Implementation of Price Management Regulations

1. The inspection of compliance with regulations on price management of public goods and services in the field of inland waterway management and maintenance shall be carried out in accordance with this Circular and relevant current laws.

2. Organizations and individuals who violate the provisions of this Circular shall be subject to administrative penalties or criminal prosecution, if damage is caused, they must compensate according to the law.

3. Specific authority to impose penalties, procedures, and formalities for imposing penalties shall be carried out in accordance with the law on handling administrative violations.

Article 11. Rights and Responsibilities of Agencies and Units

1. The Ministry of Transport

a) Direct units and functional agencies to establish and manage prices for public goods and services within their authority as stipulated in this Circular and related laws;

b) Issue economic and technical norms within their authority; technical standards and specifications in the field of inland waterway management and maintenance as a basis for establishing prices for public goods and services;

c) Inspect and supervise the implementation of prices for public goods and services in the field of inland waterway management and maintenance in accordance with this Circular and other relevant laws.

2. Ministry of Finance

a) Coordinate with the Ministry of Transport in managing prices for public goods and services in accordance with this Circular and related laws;

b) Annually allocate funds from the central government budget to implement the provision of public goods and services in the field of inland waterway management and maintenance in accordance with the law.

c) Coordinate with the Ministry of Transport and related agencies to organize inspections and supervision or take the lead in organizing inspections and supervision in accordance with authority over the implementation of prices for public goods and services in the field of inland waterway management and maintenance in accordance with this Circular and other relevant laws.

Article 12. Organization to implement currently

1. This Circular takes effect from August 15, 2016, replacing the guidelines on setting and managing prices for public goods and services in inland waterway management and maintenance implemented through procurement using state budget funds as stipulated in Joint Circular No. 75/2011/TTLT-BTC-BGTVT dated June 6, 2011, issued by the Ministry of Finance and the Ministry of Transport regarding guidelines on setting and managing prices for public goods and services in road and inland waterway management and maintenance implemented through procurement and allocation plans using state budget funds.

2. In case of difficulties during implementation, agencies and units are requested to report to the Ministry of Transport, which will take the lead and coordinate with the Ministry of Finance to examine and resolve them./.