Decision No. 255/2003/QĐ-TTg On the transfer of roads, power systems, irrigation works, schools, and health stations of forestry and farm enterprises to local management.

 DECISION OF THE PRIME MINISTER

Regarding the transfer of transportation roads, power systems,water conservancy works, schools, health stations,of agricultural and forestry farms to local managementTo the agricultural and forestry farms' management

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PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Based on the State Budget Law dated December 16, 2002;

Pursuant to Resolution No. 28/NQ-TW dated June 16, 2003 of the Politburo;

At the proposal of the Minister of Finance and the Minister of Agriculture and Rural Development,

DECISION:

Article 1. Transfer assets including: transportation roads, water conservancy works, schools, health stations invested in and currently managed and used by agricultural and forestry farms for common needs on the local area to the provincial People's Committee or units authorized by the provincial People's Committee to manage and use. Transfer the power system invested in and currently managed and used by agricultural and forestry farms to the Vietnam Electricity Corporation for management and use.

- The transportation road system includes: roads serving the common production and business activities of agricultural and forestry farms and the local population;

- Water conservancy works include: dams, reservoirs, canal systems serving the common activities of agricultural and forestry farms and the local population;

- Schools include: kindergartens, primary schools, junior high schools, secondary schools supported by the state with operating funds according to current regulations (excluding specialized vocational training schools);

- Health stations are medical units established by authorized agencies and provided with operational funding to serve staff, workers, and residents in the area.

- The power system includes medium and low voltage power lines and transformer substations previously invested in by agricultural and forestry farms to serve their common production and business activities and the common needs of the local population;

Article 2. The assets to be transferred as stipulated in Article 1 of this Decision shall be transferred in their original condition both in terms of assets and capital based on the accounting records at the time of transfer of the agricultural and forestry farms, and shall be handled as follows:

1. For assets invested using state capital, reduce capital for the transferring entity and increase capital for the receiving entity;

2. For assets invested using borrowed capital (bank loans, development support fund loans, loans from employees, other sources):

a/ In cases where the transferring entity has completed repayment of the loan by the time of asset transfer, reduce capital for the transferring entity and increase capital for the receiving entity;

b/ In cases where the transferring entity encounters difficulties and has not fully repaid the investment loan by the time of asset transfer, the state budget may consider providing partial funding to settle the remaining loan. The enterprise receiving the asset transfer shall record an increase in state capital for this asset.

3. Handling of borrowed capital for investment that remains unpaid at the time of asset transfer:

a/ For enterprises under local management, the local budget shall allocate funds to support the resolution.

The provincial People's Committee shall report to the Provincial People's Council to allocate funds to resolve investment loan debts for agricultural and forestry farms under provincial management. In cases where localities face difficulties in resolving investment loan debts at the time of asset transfer, based on reports from the provincial People's Committee on the implementation of asset transfers and the state budget's capacity, the Ministry of Finance shall aggregate and submit to the Prime Minister for consideration and decision to provide partial support from the central budget to the local budget.

b/ For enterprises under central management, the central budget shall allocate funds to support the resolution.

In managing the state budget, the Ministry of Planning and Investment shall coordinate with the Ministry of Finance to proactively seek sources to allocate funds from the central budget to resolve investment loan debts for agricultural and forestry farms under central management.

c/ The provision of support for settling borrowed capital for investment that remains unpaid at the time of asset transfer by the transferring entity shall only apply to loans with complete documentation in compliance with laws on basic construction investment and reflected in the settlement statements of the transferring enterprise.

Article 3. For agricultural and forestry farms maintained and constructed in particularly difficult areas due to security and defense requirements and public service tasks, the state budget shall allocate plans for investment, maintenance, repair, and social-economic infrastructure.

The Ministry of Agriculture and Rural Development shall lead and coordinate with relevant ministries, sectors, and provincial People's Committees to specifically identify agricultural and forestry farms subject to the provisions of this Article and report.

Article 4. The Ministry of Finance shall guide the financial mechanism for implementing the transfer and handling of borrowed capital for asset investment.

The provincial People's Committees, ministries, sectors with state-owned agricultural and forestry farms, and the Vietnam Electricity Corporation shall be responsible for guiding, directing, and supervising the implementation of the transfer and receipt of assets.

The completion of the asset transfer mentioned above shall be completed within the year 2004. Ministries, sectors, and localities shall report the results of the transfer to the Ministry of Finance for consolidation and reporting.

Article 5. This Decision shall take effect fifteen days from the date of publication in the Official Gazette.

Article 6. The Ministers of Agriculture and Rural Development, Finance, Planning and Investment, Defense, Industry, Health, Education and Training, Transportation, Public Security, the General Director of the Vietnam Electricity Corporation, and the Chairmen of the provincial People's Committees shall be responsible for enforcing this Decision.