Circular No. 2068-TC/DTPT on accelerating the disbursement of investment capital for construction projects

LETTER

OF THE MINISTRY OF FINANCE NUMBER 2068 TC/ĐTPT ON JUNE 20, 1997
REGARDING THE ENHANCEMENT OF CAPITAL DISBURSEMENT FOR INVESTMENT
BASIC CONSTRUCTION

RESPECTFULLY SUBMITTED TO: - Ministries, ministerial-level agencies, government agencies,

State Corporation 91, Associations, Mass Organizations,

- People's Committees of provinces and centrally governed cities,

To enhance the progress of implementing plans and disbursing investment capital for construction and development projects, from the beginning of 1997, the Ministry of Finance has implemented several measures such as advance payments according to Circular No. 63-TC/ĐTPT, and since April 1997, advance payments have been made to projects with completed work volumes but lacking some investment procedures. However, due to insufficient coordination among ministries, localities, investors, and funding agencies, the situation of implementing plans for disbursement of investment capital for construction and development projects in the first five months of 1997 still fell short of requirements. Implementing Resolution No. 49/CP-m dated May 5, 1997 of the Government at its regular session in April 1997 on accelerating the implementation of the 1997 construction and development investment plan, the Ministry of Finance supplements guidance on the disbursement and advance payment of construction and development investment capital as follows:

I. FOR THE 1996 PLAN:

- Projects allocated plans from the beginning of the year, with completed work volumes before December 31, 1996, completing settlement procedures after March 31, 1997, will be settled completely in June 1997.

- Projects supplemented to the 1996 plan according to Notifications No. 4418 BKH/TH dated September 4, 1996, No. 5685 BKH/TH dated November 2, 1996, and No. 6755 BKH/TH dated December 21, 1996, with completed work volumes and settlement invoices prepared before March 31, 1997, will be settled completely by June 30, 1997.

- Specifically, projects supplemented in 1996 for National Highway 5, National Highway 51, National Highway 14, Lang-Hoa Lac Road, Northern Radio and Television Relay Station, Southern Radio and Television Relay Station, Hanoi National University, and National Highway 1A Project, with completed work volumes and settlement invoices prepared before June 30, 1997, will be settled by July 15, 1997.

Beyond these deadlines, if investors do not complete settlement procedures, the Ministry of Finance will not be responsible for settling with 1996 funds; ministries, localities, and State Corporation 91 are responsible for arranging funds to settle these projects using 1997 plan funds or planning for 1998 to settle.

II. FOR THE 1997 PLAN:

The Ministry of Finance has arranged sufficient funds to allocate to investment projects according to the 1997 construction and development investment plan. Based on the annual investment plan and progress, investors should prepare quarterly funding plans divided by month and submit them to the funding agency in accordance with established regulations to arrange funds closely aligned with progress.

The temporary advance, provisional settlement, and settlement of completed construction and development investment volumes will be carried out as follows:

- For projects implementing tendered construction and installation volumes, temporary advances can be up to 10 to 20% of the annual plan for each tender package; temporary advances for purchasing equipment under economic contracts can be up to the planned amount for the equipment list within the year; consultancy contracts can be temporarily advanced by at least 25% of the annual plan; for projects fully tendered, land clearance funds can be temporarily advanced by at least 20% of the annual plan according to Circular No. 63 TC/ĐTPT dated November 2, 1996 of the Ministry of Finance. For projects with planned temporary advances, this amount must be guaranteed by 25% of the annual plan for the project implementation contract according to Circular No. 64 TC/ĐTPT dated November 2, 1996 of the Ministry of Finance.

- For projects that have been allocated investment plans for 1997 but lack some procedures (unapproved budgets, missing land use rights certificates, construction permits...), when there is completed work volume, investors should promptly organize acceptance, prepare settlement invoices, and send them to the funding agency for provisional settlement of 80% of the completed work volume within the plan. When investors complete all procedures, they will be settled for the remaining funds.

- For projects that have been allocated investment capital plans for 1997 and have completed all investment procedures, when there is completed work volume, investors should accept the work, prepare settlement invoices, and be settled for 100% of the value of the completed work volume within the plan.

- For new projects started in 1997 but lacking investment and construction procedures as stipulated by Decree No. 42/CP dated July 16, 1996 of the Government by September 30, 1997, the Ministry of Finance will report to the Prime Minister to transfer the plan funds of these projects to other projects already included in the 1997 investment plan that are short of funds.

To implement the spirit of the State Budget Law, in 1997, the Ministry of Finance will only settle for work volumes completed within the 1997 plan before December 31, 1997; work volumes completed after December 31, 1997 must be planned for 1998 for settlement.

It is requested that ministries, ministerial-level agencies, government-affiliated agencies, State Corporation 91, associations, and People's Committees of provinces and centrally governed cities instruct investors to strictly follow the above guidance. During implementation, any difficulties should be reported promptly to the Ministry of Finance for resolution.