Circular No. 27/TC guiding the provision of capital for payment of completed basic construction products, stipulates necessary conditions and procedures for investors when applying for capital. This document applies from the date of issuance and abolishes previous regulations inconsistent with its content.
Scope of application
Investment management agencies, project investors, financial authorities at all levels
Key points
- The provision of capital for payment of completed basic construction products can only be carried out when there are sufficient conditions for the completion of construction work and acceptance handover (Article 1).
- Investors must submit necessary documents such as investment plans, construction contracts to apply for capital (Point 3).
- When there are completed construction products, investors must establish acceptance certificates and product lists requesting capital for payment (Point 4).
- Financial authorities must review and approve capital within five to seven days from receiving the investor's documents (Article 5).
- The requested capital for payment of completed basic construction products needs to be analyzed according to sources of investment capital, including budget, credit, and self-funding (Point 4).
🌐 Social impact of this document
- Facilitate investors in applying for capital for payment of completed construction products.
- Strengthen financial authority control over the capital provision process, ensuring transparency and efficient use of funds.
- It may cause difficulties for investors if they are not familiar with the procedures for applying for capital.
- Help the investment and construction bank have grounds to provide timely capital for projects.
❓ Frequently asked questions
What documents must investors submit when applying for capital?
Investors must submit to the financial authority directly responsible for approving capital the investment construction plan, payment capital plan for completed products, decision on establishment of the project management board, and construction contract.
What is the maximum time for financial authorities to review and approve capital?
Financial authorities must conduct the review and approval of capital within five to seven days from receiving the investor's documents.
What contents should the analysis of requested capital for payment of completed basic construction products include?
The requested capital must be analyzed according to sources of investment capital, including budget, credit, and self-funding.
What will financial authorities do upon receipt of the investor's documents?
Financial authorities will conduct the review and approval of capital within five to seven days from receiving the investor's documents.
What should be done if there is disagreement between financial authorities and the investment bank?
Disagreements will be reported to higher-level financial authorities and banks for study and resolution, while agreed-upon matters must proceed immediately with the payment capital provision.
Full text
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MINISTRY OF FINANCE No.: 27 DT/TC |
SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ------------------------------ |
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Hanoi, September 13, 1983 |
CIRCULAR
GUIDELINES FOR THE ISSUANCE OF FUNDS TO PAY FOR COMPLETED BASIC CONSTRUCTION PRODUCTS
To facilitate the implementation of Circular No. 06-TT/LB dated July 4, 1983 issued jointly by the Ministry of Finance and the State Bank, the Ministry of Finance provides the following main guidelines for the issuance of funds to pay for completed basic construction products in basic construction investment:
1. The issuance of funds to pay for completed basic construction products shall only be carried out when the following conditions are met:
a) All construction and installation works according to the scale, volume, and quality specified in the approved technical design and budget have been completed, ensuring readiness for use in accordance with the construction progress plan and the plan for mobilizing production capacity and services.
b) They have been inspected and handed over in accordance with the state regulations on inspection and handover of completed projects.
2. Depending on the nature, characteristics, and scale of each type of project, the determination of completed basic construction products eligible for fund disbursement is differentiated for each type of product concerning construction and installation, equipment, and basic construction as stipulated in points 8, 9, and 10, Section III of Joint Circular No. 06-TT/LB dated July 14, 1983.
3. To provide a basis for financial authorities to allocate sufficient funds and be ready to issue funds to pay for completed basic construction products, the investors (regardless of the source of investment funds) must submit the following documents to the financial authority directly responsible for approving fund disbursements:
a) The annual basic construction investment plan approved by the state.
b) The plan for issuing funds to pay for completed basic construction products (investment capital plan).
c) Decision on establishing the project management board.
d) Contract for construction and installation work.
4. When there are completed basic construction products, the following tasks must be performed:
a) The investor must organize inspections and handovers in accordance with state regulations and prepare the following documents to send to the financial authority directly responsible for approving fund disbursements:
+ Inspection and handover record of completed basic construction products for production and use.
+ List of completed basic construction products requesting fund disbursement in accordance with the conditions stated in points 1 and 2 above and according to the prescribed form (three copies).
+ Other related documents (if any).
b) The list of completed investment products requesting fund disbursement is prepared based on the approved total investment amount of the project and the detailed budget of each sub-project or major work item that has been completed, according to the structure of construction and installation capital, equipment, and other basic construction costs, and analyzed by the source of investment funds (state budget, credit, self-owned, and raised capital).
In the section analyzing the requested capital for disbursement to pay for completed basic construction products by source of capital, it must clearly indicate:
+ The amount of capital requested for this period's payment for completed basic construction products is determined according to the list of completed basic construction products requesting fund disbursement (point 3, columns 7, 8, 9, 10 in the list of completed investment products).
+ The reduction in the amount of raised capital includes the value of labor days, materials, and funds contributed by cadres, workers, employees, and people participating in the construction project under the principle of "State and People Together".
+ The remaining capital to be disbursed for this period is the amount after deducting other types of capital already raised and used for the project. (Subtract index 2 from index 1 at point 4 in the list of completed investment products).
In the capital to be disbursed for this period, for projects invested with self-owned capital and bank loans, it is divided into:
+ Self-owned capital portion.
+ Credit capital portion.
For projects invested with state budget capital, there are no two portions mentioned above.
From the capital to be disbursed for this period, the investor must first repay any advance payments (if any), pay off debts and interest on various loans from the Investment and Construction Bank, and then pay the contractors for construction and installation work.
5. The procedure for issuing funds to pay for completed basic construction products is as follows:
Upon receiving the documents from the investor requesting fund disbursement, the financial authority directly responsible for issuing funds must immediately conduct verification and approval within 5 to 7 days (counted from the date the financial authority receives the request for fund disbursement).
To ensure that the financial authority and the Investment and Construction Bank can issue funds for the second part of the agreed-upon amount, the financial authority records its acceptance of the fund disbursement request and sends one copy to the Investment Bank, one copy to the investor, and retains one copy at the financial authority. The financial authority will only settle accounts with the Investment Bank for the agreed-upon amount.
If there is disagreement between the financial authority and the Investment and Construction Bank regarding fund disbursement, unresolved issues must be reported to higher-level financial authorities and banks for resolution, while the agreed-upon amount should be immediately disbursed.
6. Financial authorities must strictly review payment documents, especially delving deeply into the quantity, quality, and completed basic construction products requesting fund disbursement.
This circular takes effect from the date of signature. Previous regulations on the issuance of funds to pay for completed basic construction products that conflict with this circular are no longer valid.
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Place of Receipt: - Office of the Government Council (Departments V4, V5) - Central Party Propaganda Department (signed) - Ministries, General Departments, and State Committees - Provincial People's Committees, City People's Committees, and Special Administrative Regions directly under the Central Government - Provincial Finance Departments - Departments and Bureaus under Ministries File: Investment and Financial Affairs Department |
THE MINISTER OF FINANCE
Chu Tam Thuc |
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