Decision No. 211/1998/QĐ-BNN-QLN on the issuance of regulations on the management of expenses for regular maintenance of fixed assets of enterprises operating water conservancy works.

Pursuant to …;

REGARDING THE ISSUANCE OF REGULATIONS ON THE USE OF EXPENSES FOR REGULAR MAINTENANCE OF FIXED ASSETS OF ENTERPRISES OPERATING WATERWORKS

THE MINISTER OF AGRICULTURE AND RURAL DEVELOPMENT.

- BASED ON THE ORDINANCE ON THE OPERATION AND PROTECTION OF WATERWORKS ON AUGUST 31, 1994;

- BASED ON DECREE NO. 73/CP OF NOVEMBER 1, 1998 OF THE GOVERNMENT ON THE FUNCTIONS, TASKS, POWERS, AND ORGANIZATIONAL STRUCTURE OF THE MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT;

- BASED ON DECREE NO. 56/CP OF OCTOBER 2, 1996 OF THE GOVERNMENT ON STATE OWNED ENTERPRISES ENGAGED IN PUBLIC SERVICES;

- BASED ON JOINT CIRCULAR NO. 90/1997/TTLT/TC-NN OF DECEMBER 19, 1997 OF THE MINISTRIES OF FINANCE AND AGRICULTURE AND RURAL DEVELOPMENT GUIDING THE MANAGEMENT SYSTEM OF STATE OWNED ENTERPRISES ENGAGED IN PUBLIC SERVICES IN THE FIELD OF WATERWORKS OPERATIONS AND PROTECTION;

- AFTER CONSIDERING THE OPINION OF THE MINISTRY OF FINANCE AT LETTER NO. 2458/TC/TCDN OF JULY 7, 1998 ON SOME PARTICIPATORY OPINIONS ON THE REGULATION OF EXPENSES FOR REGULAR MAINTENANCE OF FIXED ASSETS OF ENTERPRISES OPERATING WATERWORKS;

- PURSUANT TO THE PROPOSAL OF THE DIRECTOR OF THE WATER MANAGEMENT AND WATERWORKS ENGINEERING DEPARTMENT,

Pursuant to …;

Article 1: NOW, THIS DECISION ATTACHES THE REGULATIONS ON THE USE OF EXPENSES FOR REGULAR MAINTENANCE OF FIXED ASSETS OF ENTERPRISES OPERATING WATERWORKS.

Article 2: THIS DECISION SHALL TAKE EFFECT FROM THE DATE OF ITS ISSUE. ALL PRIOR REGULATIONS CONTRARY TO THIS DECISION ARE ABOLISHED.

Article 3: THE HEAD OF THE MINISTRY'S OFFICE, THE DIRECTOR OF THE WATER MANAGEMENT AND WATERWORKS ENGINEERING DEPARTMENT; THE DIRECTOR OF THE PLANNING AND URBANIZATION DEPARTMENT; THE DIRECTOR OF THE FINANCE AND ACCOUNTING DEPARTMENT; THE HEADS OF THE UNITS UNDER THE MINISTRY; THE DIRECTORS OF THE PROVINCE AND CITY DEPARTMENTS OF AGRICULTURE AND RURAL DEVELOPMENT; AND THE DIRECTORS OF ENTERPRISES OPERATING WATERWORKS SHALL BE RESPONSIBLE FOR IMPLEMENTING THIS DECISION.

REGULATIONS

ON THE REGIME OF USING EXPENSES FOR REGULAR MAINTENANCE OF FIXED ASSETS OF ENTERPRISES OPERATING WATERWORKS
(ISSUED ACCOMPANYING DECISION NO. 211/1998/QĐ-BNN-QLN OF DECEMBER 19, 1998 OF THE MINISTER OF AGRICULTURE AND RURAL DEVELOPMENT)

PART I

GENERAL PROVISIONS

ARTICLE 1 - REGULAR MAINTENANCE OF FIXED ASSETS

REGULAR MAINTENANCE OF FIXED ASSETS OF ENTERPRISES OPERATING WATERWORKS (ABBR. ENTERPRISES OPERATING WATERWORKS) IS REPAIR, CLEANING, REINFORCEMENT, REPLACEMENT OF PARTS OF THE WORKS, CANALS, FACTORIES, MACHINES, AND EQUIPMENT OF THE ENTERPRISE THAT HAVE BEEN DAMAGED SLIGHTLY, FILLED ANNUALLY, WITHOUT SIGNIFICANT IMPACT ON OPERATIONAL CAPACITY BUT MUST BE REPAIRED IMMEDIATELY TO PREVENT DEGRADATION AND ENSURE THE WORKS FUNCTION NORMALLY, WITHOUT IMPACT ON PRODUCTION AND WITHOUT LEADING TO MAJOR DAMAGE.

REGULAR MAINTENANCE COSTS ARE A PORTION OF TOTAL OPERATING COSTS FOR IRRIGATION AND ARE APPROVED FROM WATERWORKS FEES. THE STATE BUDGET WILL ONLY SUPPORT ENTERPRISES OPERATING WATERWORKS WITH INSUFFICIENT REVENUE TO COVER COSTS AFTER MAXIMIZING THE ENTERPRISE'S RESOURCES AND LEGAL FUNDS.

ARTICLE 2 - CONTENTS OF REGULAR MAINTENANCE OF FIXED ASSETS

1 - REGULAR MAINTENANCE OF WORKS AND CANALS INCLUDES: REINFORCING THE DAM WALLS AND CANAL BANKS, CLEANING THE ENTRANCES OF WORKS AND CANALS ACCORDING TO TECHNICAL SPECIFICATIONS APPROVED; TREATING SEEPAGE, LEAKAGE, ANIMAL HOLES, TERMITE COLONIES; INSTALLING AND DISMANTLING TEMPORARY PUMP STATIONS; BUILDING AND DEMOLISHING BANKS TO PREVENT FLOODING AND DROUGHT; LAYING STONE, CONCRETE, AND PIPE LININGS; PATCHING AND SEALING CRACKS AND CHIPPED PARTS OF CAST CONCRETE COMPONENTS; REPLACING WEAR-AND-TEAR PARTS OF GATE OPERATING MACHINES; PAINTING AGAINST CORROSION (OVER 5 SQ.M.) ON FRAMEWORKS AND GATES; REMOVING ALGAE AND DEBRIS (OVER 10 SQ.M.) AND OTHER TASKS AS PER ARTICLE 1 ABOVE.

2 - REGULAR MAINTENANCE OF MACHINES AND EQUIPMENT INCLUDES: REPAIRING OR REPLACING PARTS SUCH AS BEARINGS, BRASS, SCREWS, SUCTION AND DISCHARGE PIPES, VALVE COVERS, CLIPS ON PUMPS; DRYING MECHANICAL UNITS; REPAIRING AND REPLACING ELECTRICAL EQUIPMENT SUCH AS AUTOMATS, FUSES, CIRCUIT BREAKERS, WIRES, CLEANING, TIGHTENING, REINFORCING BUBBLE HEADS, CABLES, LIGHTNING PROTECTION, LIGHTING, COMMUNICATIONS, AND OTHER EQUIPMENT AS PER ARTICLE 1.

3 - REGULAR MAINTENANCE OF HOUSES AND SHOPS INCLUDES: REPLACING ROOF TILES, SHEETING, WOODEN PARTS (REPLACING RAFTERS, RAFTERS, ...), CONCRETE CEILINGS (HANDLING CRACKS, STOPPING LEAKS), PLASTERING WALLS, LAYING FLOORS, WHITENING, VEGETATING, PAINTING DOOR WINGS.

4 - SURVEYING AND REGULAR CHECKING THE STABILITY OF WORKS ACCORDING TO DESIGN (ELEVATION OF PUMP STATIONS, DAMS, PERFORMANCE OF MECHANICAL AND ELECTRICAL EQUIPMENT); REPAIRING AND SETTING UP MONITORING MARKERS TO PROTECT THE WORKS.

5 - FIXED ASSETS THAT REQUIRE LARGE REPAIRS AS PROVIDED IN ARTICLE 4 BELOW BUT THE REPAIR COST IS LESS THAN 50 MILLION DONG (FOR EARTHWORKS), LESS THAN 20 MILLION DONG (FOR CAST CONCRETE WORKS), AND LESS THAN 10 MILLION DONG (FOR MACHINES AND EQUIPMENT) AND TECHNICAL REQUIREMENTS ARE NOT COMPLEX MAY BE TRANSFERRED TO REGULAR MAINTENANCE.

Article 3 - Maintenance of Fixed Assets

Maintenance is a daily or periodic task aimed at maintaining normal operation and extending the lifespan of construction works, machinery, and equipment, including maintenance of construction works such as reinforcing bamboo structures, handling leaks, and seepage; inspecting and detecting animal nests and termite colonies; filling potholes on roads and canal banks, removing displaced soil, arranging rock and concrete roofs, plastering cracks and damages; cutting grass, caring for and supplementing planted grass, replacing dead grass; removing algae and debris (less than 10 square meters), clearing water flow: these tasks are similar to regular repairs but with quantities less than 1 cubic meter for earthwork and less than 0.3 cubic meter for cast-in-place work under simple construction conditions that do not require complex technology, mainly using general labor; maintenance of machinery and equipment includes painting, rust prevention (less than 5 square meters), tightening screws, bolts, replacing nuts, drying engines, lubricating, cleaning, and testing machinery and equipment.

Maintenance is a task without a separate expense item in the total operating cost of irrigation services. The Enterprise must mobilize its own direct labor for self-maintenance and can only spend money on materials within the material expenses for operation and maintenance of construction works, machinery, and equipment.

Article 4 - Major Repairs of Fixed Assets

Major repairs (overhauls) of fixed assets are repair and dredging work carried out periodically or to handle major incidents with large volumes, or replacement of important parts severely damaged, if not repaired or dredged immediately, will cause serious damage, blockages, and significant reduction in capacity or collapse of construction works, machinery, and equipment.

Capital for major repairs of fixed assets is invested from various sources: State budget, financial assistance, loans, and irrigation fees, implemented according to the procedures for basic construction investment (as stipulated in Decree No. 42/CP dated July 16, 1996, and Decree No. 92/CP dated August 23, 1997 of the Government on the issuance of regulations on management of investment and construction). For major repair projects managed by localities and funded from irrigation fee revenues, they are approved by the People's Committee of the province or centrally-administered city, depending on the scale of the project, to review partial or full investment capital application procedures by the Department of Agriculture and Rural Development.

Chapter II

LEVEL OF EXPENSES FOR REGULAR REPAIRS OF FIXED ASSETS OF IRRIGATION AND DRAINAGE ENTERPRISES

Article 5 - Level of Regular Repair Expenses as a Percentage of Total Operating Costs for Irrigation

Based on actual requirements, the time of operation of each type of construction work in each region, the level of regular repair expenses for fixed assets of the Irrigation and Drainage Enterprise is set as a percentage below of the total costs for irrigation operations recorded in Point 2-1, Clause 2, Section III of Circular Joint No. 90/1997/TTLT/TC-NN dated December 19, 1997 of the Ministry of Finance and the Ministry of Agriculture and Rural Development guiding financial management systems for state-owned enterprises engaged in public welfare activities in the field of irrigation and water conservancy projects (referred to as total irrigation costs).

Article 6 - Framework for the ratio of regular maintenance costs to the value of fixed assets

The following framework for the percentage ratio on the value of fixed assets (original cost) applies to enterprises operating water conservancy works whose fixed asset values have been reassessed in accordance with reality or newly constructed infrastructure systems that have been put into use with values close to current reality:

Article 7 - Regular Maintenance Levels for Each Enterprise

Based on the framework for regular maintenance costs set forth in Article 5 or Article 6 and the specific conditions of each system of works and each enterprise operating water conservancy works, enterprises shall establish specific norms, submit them to the People's Committee of the province or centrally governed city (for enterprises under local management) or the Ministry of Agriculture and Rural Development (for enterprises under ministry management) for approval as a basis for planning regular maintenance and business production plans for the enterprise.

Chapter III

PROCEDURE FOR REGULAR MAINTENANCE OF FIXED ASSETS OF ENTERPRISES OPERATING WATER CONSERVANCY WORKS

Article 8 - Procedure for Implementing Regular Maintenance

Costs for regular maintenance of fixed assets are to be funded from sources specified in Article 1 of this regulation. The General Director of enterprises operating water conservancy works is responsible for implementing the entire process of regular maintenance, from planning, preparing project estimates to completing maintenance work ensuring safety and timely for the production season.

Article 9 - Annual Regular Maintenance Plan

1. The capital plan for regular maintenance is established according to the specific levels approved for each type of system of works for the enterprise. In cases where new systems of works are well protected and put into service, or where favorable years occur due to improved management organization or application of new scientific and technological advances, leading to actual regular maintenance requirements being lower than the approved capital, the remaining maintenance capital may be transferred to the reserve fund or development investment fund to enhance the capacity of the system to serve production.

2. Plan for materials and equipment for regular maintenance

3. Labor plan including public welfare labor and outsourced labor for regular maintenance.

Article 10 - Preparation of Project Estimates for Regular Maintenance

Enterprises operating water conservancy works must prepare project estimates for regular maintenance works or may delegate this task to member factories or irrigation stations capable of preparing project estimates for simple technical works. If a component of work cannot be documented in a project estimate, detailed technical explanations must be provided and confirmed in a record between the enterprise’s Technical Department and the member factory or irrigation station.

In cases where flooding caused by rain or other reasons prevents accurate and timely preparation of project estimates, the enterprise must request the superior management authority to send staff to the site to confirm the condition, volume of damage, and repair measures as a basis for preparing project estimates and construction, ensuring timely completion for the production season. For urgent repairs needed due to emergencies, the enterprise invites local authorities to prepare records, organize prompt construction, and report to the superior management authority.

Article 11 – The unit price for preparing the budget for regular maintenance shall be as follows:

1. For manual excavation, dredging, and channel construction works, the labor cost unit price shall be calculated based on the basic construction unit price or the public welfare labor cost unit price already stipulated at the local level and according to the approved plan of the locality.

2. For repair works of cast-in-place structures and mechanical dredging, the budget shall be calculated based on the current basic construction unit price.

3. The surveying unit price and design price for regular maintenance of water conservancy projects shall be applied in accordance with the current regulations on basic construction issued by the Ministry of Agriculture and Rural Development and the Ministry of Construction.

4. Regarding material and equipment prices purchased according to the approved budget, if there is a need to change the price, it must be agreed upon in writing by the budget approval authority.

Article 12 – Hierarchical Approval of Regular Maintenance Project Designs and Budgets.

The Department of Agriculture and Rural Development (for enterprises under the jurisdiction of the locality) and the Water Management and Irrigation Works Administration (for enterprises under the jurisdiction of the Ministry) shall be responsible for reviewing project designs with budgets of VND 50 million or more (for irrigation enterprises operating facilities of Class 2 or higher) and VND 30 million (for irrigation enterprises operating facilities of Class 3 or lower).

After receiving the project design, the reviewing authority must complete all review procedures.

Article 13 – Implementation Organization.

1. Irrigation Enterprises may implement construction organization methods suitable to actual conditions; they can hire units with construction equipment, enter economic contracts with cooperatives, water management service agencies, and must mobilize public welfare labor according to the approved plan to repair facilities in time for the production season.

2. For projects in remote areas, urgent construction projects, or difficult construction projects, enterprises may hire external contractors at higher rates but must submit a report for the budget approval authority's review.

3. Enterprises may assign their construction teams or subsidiaries to repair projects that match the capabilities of these teams or subsidiaries.

Article 14 – Hierarchical Approval of Final Accounts.

The budget approval authority is also the final accounts approval authority, which reviews after acceptance and obtains opinions from relevant authorities. The recording, tracking, and final accounting procedures when regular maintenance work is completed are carried out according to the provisions of Circular Joint No. 90/1997/TTLT/TC-NN of the Ministry of Finance and the Ministry of Agriculture and Rural Development and the current accounting regulations.

Chapter IV

IMPLEMENTATION

Article 15 - Irrigation Enterprises base the project design and budget on the cost level and current condition of the facility, submit them for review by the authorities designated in Article 12 above; prepare sufficient materials and labor to construct in time for the production season and ensure the safety of the facility.

Article 16 - The Department of Agriculture and Rural Development and the Water Management and Irrigation Works Administration (for enterprises under the jurisdiction of the Ministry) organize and direct implementation, creating favorable conditions for irrigation enterprises to complete regular maintenance plans; they are responsible for inspecting and auditing annual regular maintenance activities of irrigation enterprises, ensuring the proper and effective use of regular maintenance funds.

Article 17 This regulation applies to all irrigation enterprises nationwide. During implementation, if there are difficulties, irrigation enterprises should promptly reflect them to the Ministry of Agriculture and Rural Development (through the Water Management and Irrigation Works Administration) for research and appropriate amendments and supplements./.