Circular No. 23/2016/TT-BNNPTNT guiding certain contents on the management of forestry engineering works.

CIRCULAR

Guidelines on certain aspects of management of forestry works.

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Pursuant to Decree No."Article 1. Amending and supplementing some articles of Circular No. 48/2013/TT-BNNPTNT dated November 12, 2013 on inspection and certification of food safety for aquatic products for export:" November 26, 2013 Government Decree stipulating functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development;

Pursuant to the Law on Public Investment No. 49/2014/QH13 dated June 18, 2014;

Pursuant to the Construction Law No. 50/2014/QH13 dated June 18, 2014;

Pursuant to Decree No.23/2006/ND-CP March 3, 2006 Government Decree on the implementation of the Law on Protection and Development of Forests;

Pursuant to Decree No.32/2015/ND-CP March 25, 2015 Government Decree on management of construction investment costs;

Pursuant to Decree No.Decree No. 46/2015/NĐ-CP May 12, 2015 Government Decree on management of quality and maintenance of construction works;

Pursuant to Decree No.59/2015/ND-CP June 8, 2015 Government Decree on management of construction investment projects;

Pursuant to Decree No.136/2015/ND-CP December 31, 2015 Government Decree guiding the implementation of certain provisions of the Law on Public Investment;

At the proposal of the Director General of the Forest Administration;

The Ministry of Agriculture and Rural Development issues this Circular to guide certain aspects of management of forestry works.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides certain aspects of management of forestry works including: Preparation, review, approval of design and budget estimates for forestry works; acceptance of forestry works; handling risks due to natural disasters for forestry works.

Article 2. Applicability

1. This Circular applies to organizations, households, individuals within the country, and communities related to the implementation of forestry works in projects using public investment funds, including: state budget funds, national treasury bonds, government bonds, local government bonds, official development assistance (ODA) and preferential loans from foreign sponsors, state investment development credit funds, retained revenue for investment but not included in the state budget, other local government loan funds for investment.

2. It is encouraged that project investors use other legitimate sources of funding and apply the provisions and guidelines set forth in this Circular.

Article 3. Explanation of Terms

1. Forest engineering work is a rural construction work, formed from the implementation of forestry investment activities according to design and budget estimates, including: Planting, caring for, protecting forests; enclosing and natural regeneration, enclosing and supplementary planting of forest trees; forest improvement and related activities.

2. Annual acceptance is an activity of inspection, evaluation, confirmation of quantity and quality of completed forestry works annually, serving as the basis for provisional payment, settlement, and final accounting of the value of forestry works, which may be conducted more than once a year depending on specific job characteristics.

Chapter II

PREPARATION, REVIEW, APPROVAL OF DESIGN AND BUDGET ESTIMATES FOR FORESTRY WORKS

Article 4. Design and budget estimate for forestry works

1. After the investment project has been approved by the competent authority, the investor prepares the design and budget estimate for forestry works. For projects requiring only the preparation of economic and technical reports, the preparation of the design and budget estimate for forestry works is carried out concurrently with the preparation of the economic and technical report.

2. The investor prepares the design and budget estimate for forestry works when having sufficient capacity conditions or hiring consultants to prepare the design and budget estimate documents for forestry works.

3. Components of the design and budget estimate documents for forestry works.

a) The design description for forestry works is prepared according to the model attached as Appendix I to this Circular.

b) The design for forestry works, including: Land use status map, forestry works design map at scale 1/5,000 or 1/10,000, prepared based on topographic maps according to the VN 2.000 reference system, with coordinate grid, plot number, sub-plot number, lot number; showing contour lines, current status, standard objects (rivers, streams, roads, firebreaks, forest protection stations, etc.) and contents guided in Appendix II of this Circular.

c) The budget estimate for forestry works is prepared in accordance with Article 5 of this Circular.

Article 5. Budget for forestry works

The budget for forestry works is calculated based on current economic and technical norms, including the following cost items:

1. Construction Costs

a) Direct costs, including:

Labor costs: seedling preparation in nurseries and at sites, planting, care, inspection, supervision, forest protection, and other related costs.

Machinery and equipment construction costs: land preparation, transporting seedlings by machinery; leveling, clearing the site, firebreak road construction, and other related costs.

Material costs: seedlings, fertilizers, plant protection chemicals.

b) Common costs: calculated at 5.0% of direct costs, including:

Costs for labor safety equipment, occupational health and environmental protection.

Transportation costs for machinery, equipment, and workforce to and from the construction site.

Traffic safety assurance costs during construction (if applicable). Costs for restoring infrastructure affected by construction (if applicable).

c) Pre-tax income: anticipated profit in the construction project budget, calculated as 5.5% of total direct and common costs.

d) Value-added tax is implemented according to state regulations.

2. Equipment costs, including: purchasing technological equipment (including equipment that needs to be produced or processed), installation and testing, calibration of equipment, transportation, insurance of equipment, training and technology transfer.

3. Management costs: calculated as 3.0% of the total construction and equipment costs, including: management organization costs from the preparatory stage to completion and acceptance of the forestry work for exploitation and use.

4. Construction investment consulting costs: determined by detailed budget estimates, including: surveying; design and budget preparation; construction supervision and other related consulting costs.

5. Other costs

a) Demining and explosive ordnance disposal.

b) Common items: costs for constructing temporary housing at the site for living and managing construction; costs for labor safety and environmental protection for workers on the construction site and surrounding environment; costs for moving workforce within the construction site; costs for moving construction machinery, equipment, and workforce to and from the construction site; costs for restoring infrastructure affected by construction.

c) Project insurance during the implementation period of the forestry work. In cases where the forestry work falls under the category encouraged to purchase insurance, the insurance costs are included in the total investment construction amount.

d) Auditing, verification, and approval of final accounts.

đ) Inspection and acceptance during the construction process and upon completion of the forestry work by competent state management agencies.

e) Scientific and technological research related to forestry works; initial working capital for forestry works with business purposes; interest on loans during the construction period (excluding recovered product value).

g) Resource taxes, fees, and charges as prescribed.

h) Costs for other work.

6. Contingency costs

a) Contingency costs for additional work volume are calculated as 5.0% of the total construction costs, equipment costs, management costs, construction investment consulting costs, and other costs.

b) Contingency costs for price escalation are determined based on the construction period of the project (in months, quarters, years), funding plan, and domestic and international price fluctuation potential.

7. For forest protection activities and natural regeneration carried out through household, individual, and community contracts: the contracted value for the contracting parties, documentation preparation costs, and management costs apply state support standards according to current policies.

Article 6. Documents for requesting approval of forest engineering project design and budget estimate

1. A request for approval of design and budget estimate according to Model No. 01 in Appendix IV issued together with this Circular.

2. Forest engineering project design and budget estimate documents prepared in accordance with Clause 3 of Article 4 of this Circular.

3. Decision on investment project approval and related documents.

Article 7. Authority and procedures for reviewing and approving forest engineering project design and budget estimate

1. Authority to approve forest engineering project design and budget estimate: The investment decision-maker. In specific cases, the investment decision-maker may delegate or authorize subordinate agencies to approve.

For projects decided on investment by the Prime Minister, the investor is the agency, organization, or unit assigned by the Prime Minister. The investor shall exercise the authority of the investment decision-maker to approve the forest engineering project design and budget estimate.

2. Agency responsible for reviewing forest engineering project design and budget estimate

a) For projects decided on investment by the Ministry of Agriculture and Rural Development: The Forestry General Department shall be responsible for reviewing the forest engineering project design and budget estimate.

b) For projects decided on investment by other central ministries and sectors: The specialized agency of the central ministry or sector shall be responsible for reviewing the forest engineering project design and budget estimate.

c) For projects decided on investment by the Chairman of the Provincial People's Committee (People's Committee): The Department of Agriculture and Rural Development shall be responsible for reviewing the forest engineering project design and budget estimate.

d) For forest engineering projects within projects decided on investment by the Chairman of the District People's Committee or Commune People's Committee: The department at the district level with relevant functions shall be responsible for reviewing the forest engineering project design and budget estimate.

3. Procedures for reviewing forest engineering project design and budget estimate

a) The investor shall submit five sets of documents for requesting approval of forest engineering project design and budget estimate as stipulated in Article 6 of this Circular directly or through postal service to the main reviewing agency.

b) Within fifteen working days from the date of receiving complete valid documents, the main reviewing agency shall organize the review and issue a report on the review results according to Model No. 02 in Appendix IV, draft decision on approval according to Model No. 03 in Appendix IV issued together with this Circular, and submit it to the competent authority for approval.

c) If the documents are not valid, the agency receiving the documents shall be responsible for responding to the investor within three working days from the date of receipt of the documents.

d) Within five working days from the date of receiving the report on the review results, the competent authority shall decide on the approval of the forest engineering project design and budget estimate and transfer the result to the investor within three working days from the date of signing the decision.

Article 8. Adjustment of forest engineering project design and budget estimate

1. Adjustment of forest engineering project design in the following cases:

a) When the investment project requires adjustment of the forest engineering project design.

b) During the implementation of the forest engineering project, there is a need to adjust the design to ensure the quality of the project and the effectiveness of the investment.

2. Adjustment of forest engineering project budget estimate in the following cases:

a) Adjustment of the total investment amount of the project in accordance with regulations.

b) Adjustment of the design.

3. Design and budget estimate documents for adjusted forest engineering projects under Clause 1 and Clause 2 of this Article shall comply with Clause 1 and Clause 2 of Article 6; authority and procedures for reviewing and approving shall comply with Article 7 of this Circular.

4. In case only the structure of cost items is adjusted without changing the approved value of the forest engineering project budget estimate including contingency costs, the investor shall organize the adjustment and report to the investment decision-maker about the content of the budget estimate adjustment.

5. The investor shall organize the determination of the adjusted forest engineering project budget estimate as the basis for adjusting the contract value.

Chapter III

ACCEPTANCE AND HANDLING OF NATURAL DISASTER RISKS FOR FOREST ENGINEERING PROJECTS

Article 9. General Provisions on Acceptance of Forestry Works

1. Annually and upon completion of forestry works activities, the Project Owner shall establish a committee and conduct acceptance in accordance with the provisions of this Circular. The membership of the acceptance committee includes:

a) Representatives of the Project Owner: Leaders, technical staff, accountants, and supervisors of forestry works.

b) The party receiving the contract.

c) Representatives of organizations, commune authorities, village associations, cooperatives (if any).

2. Documents for Acceptance

a) Decision to establish the Acceptance Committee.

b) Design and budget estimate of forestry works approved by the competent authority.

c) Contract for implementing forestry works.

d) Report on the results of implementing forestry works.

đ) Minutes of acceptance in accordance with the model prescribed in Appendix IV of this Circular.

3. Requirements for Acceptance of Forestry Works

a) Annual acceptance aims to determine the quantity and quality of work items completed based on reviewing the report on results, serving as the basis for interim payment of the value of quantities provisionally accepted or completed.

b) Final acceptance

Determining the quantity and quality of work items completed based on reviewing the report on results and annual acceptance documents, serving as the basis for final payment and settlement of the project.

Determining the investment value forming assets based on actual costs invested in the project and the asset value formed after investment of forestry works in accordance with the Government's regulations on principles and methods for determining forest values and other implementing guidelines.

c) Procedures, contents, methods, and acceptance criteria for each type of forestry works shall be carried out in accordance with the provisions of Articles 10, 11, 12, 13, 14, and Article 15 of this Circular.

Article 10. Acceptance of Reforestation

1. The time for acceptance shall be conducted after the implementation of forestry techniques.

2. Quantity acceptance includes: inspecting the entire area on-site, determining boundary positions, comparing with design maps, marking and determining the implementation ratio through direct measurement.

3. Quality acceptance according to the technical standards for reforestation stipulated in the reforestation contract, specifically:

a) For comprehensive reforestation: measuring the entire area or measuring the indicators within standard plots with an area of 100 m² established along the representative line of the forest plot, the minimum number of standard plots is specified as follows:

Plot area under 3 hectares: 10 standard plots.

Plot area from 3 to less than 5 hectares: 15 standard plots.

Plot area 5 hectares or more: 20 standard plots.

b) For strip reforestation: using random sampling methods to check at least 10% of the reforestation strips in the plot; measuring and counting the number of trees on the entire reforestation strip. In cases where the number of strips in the plot is less than 10, at least one strip must be checked.

4. Acceptance criteria and measures for handling: carried out in accordance with the guidance provided in Section I, Appendix III of this Circular.

Article 11. Acceptance of Forest Improvement

1. The time for acceptance shall be implemented in accordance with the guidance provided in Clause 1 of Article 10 of this Circular.

2. Content and method of implementation shall be carried out in accordance with the guidance provided in Clauses 2 and 3 of Article 10 of this Circular.

3. Acceptance criteria shall be carried out in accordance with the guidance provided in Section III, Appendix III of this Circular.

Article 12. Inspection of Reforestation with Supplementary Planting in Encircled Areas

1. The inspection time shall be carried out immediately after completing all technical interventions as stipulated in the contract and approved design.

2. Content and methods of implementation shall follow the guidance provided in Clause 2 and Clause 3 of Article 10 of this Circular.

3. Inspection criteria shall be implemented according to the guidance provided in Section IV, Appendix III of this Circular.

Article 13. Inspection of Natural Reforestation in Encircled Areas

1. The inspection time shall be conducted immediately after completing all technical interventions as stipulated in the contract and approved design.

2. Content and methods of implementation

a) Quantity inspection shall be carried out according to the provisions of Clause 2 of Article 10 of this Circular.

b) Quality inspection includes: on-site inspection of the entire area, determining location, boundaries, and area completed, comparing with technical standard regulations, evaluating the quality of the results achieved.

3. Inspection criteria shall be implemented according to the guidance provided in Section V, Appendix III of this Circular.

Article 14. Inspection of Forest Care

1. The inspection time shall be conducted immediately after completing all care activities as stipulated in the contract and approved design.

2. Content and methods of implementation

a) Quantity inspection shall be carried out according to the guidance provided in Clause 2 of Article 10 of this Circular.

b) Quality inspection shall be carried out according to the technical care standards as guided in Section II, Appendix III of this Circular.

Article 15. Inspection of Forest Protection

1. The inspection time shall be conducted at the end of the planning year, to be completed no later than January of the following year.

2. Content and methods of inspection: on-site inspection of the entire area, based on the design map to determine location, boundaries, and completion ratio, specifically:

a) In cases where 100% of the forest area is not affected by destruction: inspection and payment of 100% of the contract value shall be made.

b) In cases where the forest is destroyed (cutting, encroachment, burning for shifting cultivation, illegal conversion of forest use...), based on specific circumstances, the actual contract performance value will be determined for payment according to a ratio, specifically:

The person responsible for forest protection under contract, or the person receiving financial support for forest protection, upon discovering forest damage must report immediately to the competent authority (the contracting party or local government or forestry rangers): completion of forest protection tasks and receipt of payment for protection services according to the contract.

The person responsible for forest protection under contract, or the person receiving financial support for forest protection, who fails to discover forest damage, or discovers but does not report to the competent authority: shall be paid for protection services for undamaged forest areas; for damaged forest areas, depending on the extent, they will be handled according to the provisions of the law.

Article 16. Handling Risks Due to Natural Disasters for Forestry Works

1. In cases where forestry works are not insured, when encountering risks due to natural disasters, the project investor shall prepare a dossier to submit to the investment decision-making agency requesting support for losses from self-funded activities or handling and supporting losses from state budget-funded activities.

2. The statistics, assessment, and reporting of losses caused by natural disasters shall be carried out according to the guidance provided in Joint Circular No. 43/2015/TTLT-BNNPTNT-BKHĐT dated November 23, 2015 of the Ministry of Agriculture and Rural Development and the Ministry of Planning and Investment guiding the statistics, assessment of losses caused by natural disasters and any subsequent amendments, supplements, or replacements (if any).

3. In cases where the locality lacks the ability to balance and allocate funds to address losses, it may request central budget support for disaster recovery costs, the funding support process shall be applied according to Decision No. 01/2016/QĐ-TTg dated January 19, 2016 of the Prime Minister regarding the mechanism and process for providing financial support to localities for disaster recovery and any subsequent amendments, supplements, or replacements (if any).

Chapter IV

IMPLEMENTATION

Article 17. Responsibilities of the Forestry General Department

1. Take the lead and guide the implementation of forest engineering management work by relevant ministries, sectors, and localities.

2. Organize the review of design and budget estimates for forest engineering projects decided to be invested in by the Ministry of Agriculture and Rural Development.

3. Regularly or randomly inspect the implementation of work related to the establishment, approval, and execution of forest engineering projects by forestry specialized agencies at all levels.

4. Advise and assist the Minister of Agriculture and Rural Development in handling difficulties and issues arising during the implementation of this Circular by relevant agencies and units.

Article 18. Responsibilities of the Investment Decision Authority

The person responsible for approving the design and budget estimate of forest engineering projects as stipulated in Clause 1, Article 7 of this Circular shall have the responsibility to:

1. Decide on the delegation and authorization of tasks related to the review and approval of design and budget estimates for forest engineering projects within their jurisdiction in accordance with the law and specific conditions.

2. Exercising the rights and responsibilities of the investment decision-making authority as prescribed by law for projects decided upon by themselves.

3. Inspect the review work of subordinate specialized agencies, promptly address and resolve issues regarding procedures and formalities.

Article 19. Transitional Provisions and Effective Date

1. Regarding the review and approval of design and budget estimates for forest engineering projects

a) Design and budget estimates for forest engineering projects submitted for review to competent authorities before the effective date of this Circular do not need to be resubmitted for review; the project owner shall implement the review according to regulations prior to the effective date of this Circular.

b) Adjustments to design and budget estimates for forest engineering projects after the effective date of this Circular shall be carried out in accordance with the provisions of this Circular.

2. Effective Date

a) This Circular takes effect from January 1, 2017.

b) This Circular replaces Circular No. 69/2011/TT-BNNPTNT dated October 21, 2011 of the Ministry of Agriculture and Rural Development guiding the implementation of certain contents of the Forest Engineering Management Regulation issued together with Decision No. 73/2010/QĐ-TTg dated November 16, 2010 of the Prime Minister; Decision No. 06/2005/QĐ-BNN dated January 24, 2005 of the Minister of Agriculture and Rural Development on the issuance of regulations on forest planting acceptance, forest enclosure for regeneration promotion, forest plantation care, forest protection, natural forest enclosure for recovery; Decision No. 59/2007/QĐ-BNN dated June 19, 2007 of the Minister of Agriculture and Rural Development amending and supplementing Decision No. 06/2005/QĐ-BNN. Previous regulations issued by the Ministry of Agriculture and Rural Development that conflict with this Circular are hereby abolished.

3. During the implementation process, if there are difficulties or obstacles, relevant agencies and units are requested to promptly report to the Ministry of Agriculture and Rural Development for research and resolution./.