Circular No. 241/2009/TT-BTC guiding the management and settlement of investment capital for the project to expand and complete La Gia - Hoa Lac Road

CIRCULAR

Guidelines for managing and settling investment capital for the project to expand and complete the La Gia - Hoa Lac road

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Pursuant to the State Budget Law number 01/2002/QH11 dated December 16, 2002;

Pursuant to the Construction Law dated November 26, 2003;

Pursuant to Decree No. 12/2009/NĐ-CP dated February 12, 2009 of the Government on project management for construction works; Decree No. 83/2009/NĐ-CP dated October 15, 2009 amending and supplementing certain articles of Decree No. 12/2009/NĐ-CP dated February 12, 2009 of the Government on project management for construction works;

Pursuant to Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government on the Regulation on Investment Management and Construction; Decree No. 12/2000/NĐ-CP dated May 5, 2000 and Decree No. 07/2003/NĐ-CP dated January 30, 2003 of the Government amending and supplementing certain articles of the Regulation on Investment Management and Construction issued together with Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government;

Pursuant to Resolution No. 15/2008/QH12 dated May 29, 2008 of the National Assembly on adjusting administrative boundaries of Hanoi city and related localities;

Implementing Circular No. 224/CP-CN dated March 1, 2003; Circular No. 828/CP-CN dated June 18, 2003; Circular No. 1726/CP-CN dated December 17, 2003 of the Government; Circular No. 1042/TTg-CN dated August 1, 2007 of the Prime Minister on adjusting the Project to Expand and Complete the La Gia - Hoa Lac Road; Official Letter No. 120/TB-VPCP dated June 14, 2004 of the Government Office on investing in the Project to Expand and Complete the La Gia - Hoa Lac Road,

The Ministry of Finance hereby provides guidelines for managing and settling investment capital for the Project to Expand and Complete the La Gia - Hoa Lac Road as follows:

PART I

GENERAL PROVISIONS

Article 1. The Project to Expand and Complete the La Gia - Hoa Lac Road is invested using state budget funds, including:

- Central government budget funds to ensure allocation of financial resources for investment preparation work, project management, and quality supervision consultancy services, for additional items and adjusted scale of the project included in the annual plan for basic construction investment of the Ministry of Transport.

- Hanoi city budget funds (self-raised through land auction) and land funds within Hanoi city to implement the construction of the road.

Article 2. The management and settlement of investment capital for the project shall be carried out in accordance with current State regulations on management and settlement of investment capital and the provisions of this Circular.

Article 3. Responsibilities of parties during the implementation of the project.

1. The representative of the investor (La Gia - Hoa Lac Project Management Board), the main contractor (Vietnam Import-Export Joint Stock Corporation) shall, according to their assigned functions and tasks, ensure the implementation of the project in accordance with schedule, quality, and proper use of investment capital for the Project to Expand and Complete the La Gia - Hoa Lac Road, without diverting it to other purposes.

2. The People's Committee of Hanoi city shall be responsible for managing, directing, and guiding subordinate levels under its jurisdiction to implement in accordance with current State regulations and the guidelines provided in this Circular.

3. The Department of Finance of Hanoi city shall be responsible for advising the People's Committee of Hanoi city to manage and ensure investment capital for the Project to Expand and Complete the La Gia - Hoa Lac Road in accordance with the provisions of the State Budget Law.

4. The State Treasury shall be responsible for supervising and settling investment capital for the project in a timely manner and in accordance with regulations.

Chapter II

SPECIFIC PROVISIONS

Article 4. Annual investment capital planning for the project.

1. At the time of preparing the state budget estimate annually as prescribed, based on the progress of the project, the La Gia - Hoa Lac Project Management Board shall prepare an investment capital demand plan divided by each source of capital (central government budget funds, Hanoi city budget funds, and land funds) and submit it to the Ministry of Transport.

2. The Ministry of Transport shall consolidate the investment capital plan and submit it to the People's Committee of Hanoi city (for the local budget portion). The Ministry of Transport and the People's Committee of Hanoi city shall prepare the annual investment expenditure budget and submit it to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and submission to the competent authority for decision-making in accordance with the State Budget Law and guiding documents.

3. After the state budget is allocated by the competent authority, the Ministry of Transport and the People's Committee of Hanoi city shall implement the allocation of investment capital and send the investment capital plan to the corresponding financial authorities and the State Treasury at the transaction location as the basis for supervision and settlement of capital.

4. Financial authorities at all levels shall carry out the review of capital allocation in accordance with regulations.

5. During the planning year, based on actual implementation and available sources of capital for the project, the main contractor and the La Gia - Hoa Lac Project Management Board may adjust the project's investment capital plan if necessary and submit it to the competent authority for consideration and adjustment.

Article 5. Management and settlement of capital.

1. For work volumes guaranteed to be settled by central government budget funds and Hanoi city budget funds, management and settlement shall be carried out in accordance with Circular No. 27/2007/TT-BTC dated April 3, 2007 of the Ministry of Finance guiding the management and settlement of investment capital and capital for public services with investment characteristics from the state budget; Circular No. 130/2007/TT-BTC dated November 2, 2007 of the Ministry of Finance amending and supplementing certain points of Circular No. 27/2007/TT-BTC dated April 3, 2007; Circular No. 88/2009/TT-BTC dated April 29, 2009 of the Ministry of Finance amending and supplementing certain points of Circular No. 27/2007/TT-BTC dated April 3, 2007 and Circular No. 130/2007/TT-BTC dated November 2, 2007 of the Ministry of Finance and any subsequent amendments or replacements (if applicable).

2. For work volumes settled by land funds.

- The management and preparation of payment files shall be carried out in accordance with the provisions of Government Decrees on project investment construction management and Circular No. 27/2007/TT-BTC dated April 3, 2007 of the Ministry of Finance guiding the management and payment of investment capital and operational funds with investment characteristics from state budget sources, Circular No. 130/2007/TT-BTC dated November 2, 2007 of the Ministry of Finance amending and supplementing certain points of Circular No. 27/2007/TT-BTC dated April 3, 2007, Circular No. 88/2009/TT-BTC dated April 29, 2009 of the Ministry of Finance amending and supplementing certain points of Circular No. 27/2007/TT-BTC dated April 3, 2007 and Circular No. 130/2007/TT-BTC dated November 2, 2007 of the Ministry of Finance, and other amended, supplemented, or replaced documents (if any).

- The Thang Long Project Management Board sends the payment file of the project to the State Treasury Agency for expenditure control;

- The State Treasury Agency, based on the file sent by the Thang Long Project Management Board, checks and performs the confirmation of the quantity value meeting the conditions for capital payment transfer to the Thang Long Project Management Board and the General Contractor.

- Based on the confirmed quantity value meeting the payment conditions by the State Treasury Agency, the Thang Long Project Management Board and the General Contractor proceed with the payment for the project while directly paying to the beneficiary unit in accordance with regulations, reporting the amount paid to the Thang Long Project Management Board;

- The Thang Long Project Management Board compiles and monitors the capital already paid for the project according to each source of capital, quarterly preparing a consolidated report to send to the People's Committee of Hanoi City (Department of Finance) for tracking, verification, and serving as the basis for payment work and accounting by land fund for the General Contractor.

Article 6. Accounting and managing the money received from using the land fund to create investment capital for the project to complete the expansion of La Gia - Hoa Lac Road.

- After having the decision approving the land fund value and the decision allocating land to the General Contractor, the Department of Finance of Hanoi City implements accounting entries recording local revenue from land use rights transfer payments and recording expenditures as advance payments for the project corresponding to the received revenue value.

- At the end of the annual budget period (December 31 each year), based on the consolidated report of the Thang Long Project Management Board regarding the cumulative capital paid for the project during the year with confirmation by the State Treasury Agency, the People's Committee of Hanoi City (Department of Finance) processes accounting entries for budget expenditures on investment and transfers remaining capital (if any) to the next year for continued payment to the project.

- In case the advance payment land fund value for the General Contractor exceeds the value of the project portion completed and paid for by the land fund, the General Contractor must pay the difference in cash to the Hanoi City Budget. In case the advance payment land fund value for the General Contractor is less than the project value, the Hanoi City Budget will pay the difference to the General Contractor in the form of additional land fund allocation or in cash.

- Specifically for the Bac Ankhanh area, the new project sponsor, the Joint Stock Company for New Urban Development Ankhanh, has the responsibility to fulfill financial obligations as prescribed to create a source of payment for the completed project volume.

Article 7. Principle of advance funding by the General Contractor.

The People's Committee of Hanoi City is responsible for ensuring sufficient funding for the project for the volume undertaken according to the project implementation schedule to allow the sponsor to implement the project. In case the funding source cannot meet the progress requirements, if the General Contractor must pre-fund the investment, the advance funding and repayment of such funding shall be based on mutual agreement between the parties.

Article 8. Principle for calculating the interest on advance funding provided by the General Contractor for land clearance work.

- Interest rate: According to the actual interest rate recorded in the General Contractor's loan contract but not exceeding the average interest rate of four commercial banks including the Vietnam Agricultural and Rural Development Bank, the Vietnam Joint Stock Commercial Bank for Foreign Trade, the Vietnam Joint Stock Commercial Bank for Industry and Trade, and the Vietnam Joint Stock Investment and Development Bank at the time of advance funding.

- The interest calculation period starts from the actual advance funding date (agreed upon by both parties) until the People's Committee of Ha Tay Province (former) issues a decision allocating the Bac Ankhanh area land to the investor to implement the project in accordance with the law on land to create capital for the Láng - Hòa Lạc Expansion and Completion Project.

- This interest amount is accounted for and settled within the public investment project for the Láng - Hòa Lạc Expansion and Completion.

Article 9. Settlement.

1. Annual settlement: Annually, the Thang Long Project Management Board reports the settlement of each type of capital source according to the prescribed system, simultaneously compiling all project settlements to report to the Ministry of Transport, the Ministry of Planning and Investment, and the Ministry of Finance in accordance with Circular No. 53/2005/TT-BTC dated June 23, 2005 of the Ministry of Finance guiding the preparation and review of annual budget settlement reports for basic construction investment capital from state budget sources, Circular No. 108/2008/TT-BTC dated November 18, 2008 of the Ministry of Finance guiding the handling of the annual budget and preparation of annual state budget settlement reports, and any amended, supplemented, or replaced documents.

2. The People's Committee of Hanoi City implements budget settlement in accordance with current regulations.

3. Project completion settlement: After the project is completed, the sponsor is responsible for completing the project investment capital settlement in accordance with Circular No. 33/2007/TT-BTC dated April 9, 2007 of the Ministry of Finance guiding the settlement of completed projects from state capital, Circular No. 98/2007/TT-BTC dated August 9, 2007 amending and supplementing certain points of Circular No. 33/2007/TT-BTC dated April 9, 2007, and any amended, supplemented, or replaced documents.

Article 10. Reporting and inspection

1. Regarding Reporting: The General Contractor and the Thang Long Project Management Board are responsible for reporting the implementation and investment capital payment situation of the project to the Ministry of Transport, the Ministry of Planning and Investment, the Ministry of Finance, the People's Committee of Hanoi City; the State Treasury Agency reports to the Ministry of Finance according to the prescribed capital reporting system.

2. Regarding Inspection:

- The relevant Ministries and the People's Committee of Hanoi City shall periodically or at random inspect the project regarding the implementation of investment plans, the use of capital, and compliance with financial investment policies and regulations.

- The Ministry of Transport, the People's Committee of Hanoi City, the General Contractor, and the Project Management Board shall enhance management and inspection work to prevent wastage, loss, and corruption.

Article 11. Implementing organization.

This Circular takes effect 45 days from the date of signature and replaces Circular No. 64/2005/TT-BTC dated August 15, 2005, issued by the Ministry of Finance, guiding the management and settlement of investment capital for the Láng - Hòa Lạc Road Widening and Improvement Project.

Any difficulties or obstacles encountered during implementation should be promptly reported to the Ministry of Finance for study and resolution./.