Joint Circular No. 236-TT-LB provides guidance on regulations regarding the management and allocation of funds for managing and repairing road bridges.

JOINT CIRCULAR

Guidelines on the regulations for management, allocation of capital for road bridge management and repair

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 Pursuant to Decree No. 10-HĐBT dated January 20, 1982 of the Council of Ministers on the classification of investment capital and the decentralization of management of the road system. To strengthen economic financial management to meet production requirements in accordance with Decision No. 166-HĐBT dated September 24, 1982 of the Council of Ministers on the initial rectification of organizational management and production organization in the Transport Industry, after exchanging with the Vietnam Investment and Construction Bank, the Ministry of Transport and Finance guide and stipulate the management regime and allocation of capital for road bridge management and repair as follows:

1- Combating counterfeit goods is the responsibility of all ministries, sectors, People's Committees at all levels, political and social organizations, enterprises, business households, and the entire population.

1. In order to strengthen management, promptly and effectively utilize capital, now the sources of medium and major repair and maintenance capital for roads are combined into one source called capital for road bridge management and repair.

However, regarding the nature of work, there are two different types of tasks: Regular repairs (maintenance) and major repairs (major renovation) carried out according to technical standards prescribed. The Ministry of Transport will specify and provide detailed guidance on managing these two types of tasks after reaching agreement with the Ministry of Finance.

For projects, project components on routes or sections requiring large-scale repairs such as: Combined reconstruction and upgrading of roads, restoration or construction of new wooden bridges, pontoon bridges, semi-permanent bridges, permanent bridges with spans under 12 meters, ferry terminals, pontoon bridge terminals (as stipulated in the management and repair regime for automobile roads in 1963), design estimates must be approved by competent authorities before being included in the plan.

2. Capital for road bridge management and repair (including ferry tolls and pontoon bridge tolls) shall be transacted through the Vietnam Investment and Construction Bank.

3. Ferry tolls and pontoon bridge tolls shall be used for repairing ferry terminals, pontoon bridges, motorboats, ferries. Any surplus may only be used for road bridge repairs according to plans reviewed by the Ministry of Transport.

II- ESTABLISHING THE PLAN FOR CAPITAL FOR ROAD BRIDGE MANAGEMENT AND REPAIR

Annually, based on the technical condition of roads and bridges and transportation requirements on each route, the state's ability to balance and supply materials, equipment capacity, labor used for road bridge management and repair work, and determining the economic-technical criteria applicable to the road bridge management and repair industry, the principal agencies of road bridge projects shall establish plans for capital requirements for road bridge management and repair (divided by quarter for each route, section, etc.) and plans for surveying, designing, and preparing estimates for projects that need to be prepared from the previous year (surveying, designing, and preparing estimates must precede by one step) to serve as the basis for establishing the next year's repair plan. The Ministry of Transport will guide the establishment of hierarchical planning and review of capital requirement plans for road bridge management and repair. This plan needs to be compiled and submitted to the financial authority, the Vietnam Investment and Construction Bank at the same level according to the current financial management hierarchy and the national planning schedule. The financial authority is responsible for immediately notifying the transport authority after the plan has been approved and sufficient funds have been allocated and disbursed according to the plan. The transport authority must ensure the bases for capital allocation as stipulated below in this Circular.

When establishing the plan for capital requirements for road bridge management and repair.

- For projects, project components on routes or sections where repair work is on a large scale as mentioned in Point 1 of Section I above, design estimates or cost calculations must be reviewed and approved by competent authorities before being included in the plan.

- For projects, project components on routes or sections where repair work is on a smaller scale as mentioned in Point 1 of Section I above, plans can be recorded even without approved estimates. But they can only be allocated capital when approved estimates are available.

Before requesting investment capital for the following year, the principal agency must report the quantity and quality of completed projects during the year (divided by route, project, or component, etc.), the changes in road categories as specified by the Ministry of Transport to evaluate the effectiveness of investment capital and to serve as the basis for establishing the next year's investment capital plan.

Projects exceeding the budget estimate or the budget estimate exceeding the planned index by more than 5%, the unit must request adjustment of the budget estimate and supplementary planned index approval before receiving allocation and payment for the adjusted and supplementary parts.

During the implementation of the plan, if there are new demands for capital for road bridge management and repair, the transport authority must immediately discuss with the financial authority, the Vietnam Investment and Construction Bank at the same level to find solutions. The financial authority and the Vietnam Investment and Construction Bank at the same level are permitted to refuse expenditures not included in the approved plan.

In cases of natural disasters, enemy attacks, fires causing traffic congestion, units must urgently establish a committee to determine damage values, report to the Ministry. The Ministry of Finance, the Central Vietnam Investment and Construction Bank (for centrally managed projects) for the Provincial Department of Transport, Provincial Finance Department, Provincial Vietnam Investment and Construction Bank (for locally managed projects) and promptly report to the superior supervisory agency, financial authority, Vietnam Investment and Construction Bank at the same level and use the capital of other projects already allocated or borrowed from the bank to promptly restore traffic order and safety. Afterwards, complete all procedures to apply for full compensation for the damage value to repay the used capital according to current regulations.

III- ALLOCATION OF CAPITAL FOR ROAD BRIDGE MANAGEMENT AND REPAIR

The capital for managing and repairing road bridges is a source of economic public funds issued by the Ministry of Finance and Provincial Finance Departments to the Ministry of Transport and Provincial Transport Departments twice every quarter through the Vietnam Investment and Construction Bank and its local branches according to budget item 1, sub-item 14, category 15.

The Ministry of Transport issues the economic fund limit to Provincial Transport Departments and Regional Construction Enterprises Associations through the Project Management Board twice every quarter (bridges, roads, and projects under central management).

1. The bases for financial authorities to issue capital are:

- Annual and quarterly plans for capital needs for managing and repairing road bridges approved by competent authorities.

- Budget estimates for projects divided by each route, each mileage... approved by competent authorities.

- Reports on volume implementation and annual and quarterly settlement reports as prescribed:

 + For the first issuance of the quarter plan, there must be a quick report on the implementation of the previous quarter's volume plan and indicators.

+ For the second issuance of the quarter plan, there must be a formal settlement report of the previous quarter.

+ The plan and results of revenue from the previous quarter's public service activities.

2. The bases for the Vietnam Investment and Construction Bank to settle capital for managing and repairing road bridges for project owners and management units.

For units engaged in managing and repairing road bridges that have implemented economic accounting systems, the issuance of capital by the Vietnam Investment and Construction Bank for these units shall be based on the principle of acceptance of completed works' volume (divided by each route, mileage, project, budget estimate approved by competent authorities) based on the economic contract signed between the project owner and the contractor.

During production and business operations, between two settlement periods, the contractor (Party B) may use the approved working capital quota (according to Circular 06-TT/LB dated July 14, 1983 of the Ministry of Finance and State Bank. Production and business units must urgently prepare plans for working capital quotas to submit to their direct superior management authority for approval.

In cases where the working capital quota cannot be resolved, the construction unit can temporarily borrow the management and repair capital for road bridges already issued by the Ministry of Transport for that project from the Project Management Board and the Vietnam Investment and Construction Bank. This amount will be recovered upon settlement of the accepted completed works' volume.

For units engaged in managing and repairing road bridges that have not yet implemented economic accounting systems, the Vietnam Investment and Construction Bank will issue capital to these units based on planned and budgeted indices approved.

These units need to urgently prepare necessary conditions to soon implement economic accounting systems.

IV- SETTLEMENT AND REPORTING

1. General principles for the settlement of capital for managing and repairing road bridges.

Any unit or entity receiving capital must be responsible for submitting reports and settlements to the issuing authority.

Provincial Transport Departments must report settlements to the Ministry of Transport for national highway systems managed by the Ministry of Transport and transferred to local management, and also report settlements to the Provincial Finance Department and the local Vietnam Investment and Construction Bank for provincial highway systems managed locally.

Project owners managing centrally allocated capital must submit reports to the Ministry of Transport (for national highway systems directly managed by the central government).

The Ministry of Transport compiles settlement reports for national highway systems and submits them to the Ministry of Finance and the Central Vietnam Investment and Construction Bank.

2. Content of settlement reports.

Settlement reports must fully and truthfully reflect all activities related to managing and repairing road bridges, with explanations and accompanying tables and data, summarizing the issued capital, toll revenues from ferries and floating bridges, other revenues (if any), and the management and use of capital.

Settlement reports for capital for managing and repairing road bridges must reflect the costs per route, mileage, and type of project, costs for ferry and floating bridge facilities, compared to the plans and budgets approved by competent authorities.

3. Time for submission of settlement reports.

a) Provincial Transport Departments and grassroots units.

Monthly quick reports are submitted on the 25th of each month, including estimated figures for the reporting month and actual figures for the previous month.

Quarterly settlement reports are submitted to superiors before the 10th of the first month of the next quarter.

Annual settlement reports are submitted to superiors before February 15 of the following year.

b) Ministry of Transport.

Quarterly settlement reports are compiled and submitted to the Ministry of Finance and the Central Vietnam Investment and Construction Bank within 45 days after the end of the quarter.

Annual settlement reports are compiled and submitted before March 31 of the following year.

V- IMPLEMENTATION PROVISIONS

This Circular takes effect from the date of signature. Previous regulations contrary to this Circular are abolished. Based on the content of this Circular, the Ministry of Transport and the Ministry of Finance will issue separate guidance documents for specialized operations under their respective jurisdictions. During the implementation of this Circular, any level, sector, or agency encountering difficulties should promptly reflect them for the Joint Ministries to study and consider amendments for better alignment, contributing to improving the system further and meeting the requirements for better management of road bridge repair work.