Joint Circular No. 32/2013/TTLT-BCT-BTC guiding the transfer, receipt, and repayment of investment capital for rural low-voltage distribution network assets.

JOINT CIRCULAR

Guidelines for transferring, receiving, and returning

investment capital for rural low-voltage distribution network assets

_______________________

Pursuant to the Electricity Law No. 28/2004/QH11 dated December 3, 2004; Law No. 24/2012/QH13 dated November 20, 2012 amending and supplementing certain articles of the Electricity Law;

Pursuant to Decree No. 95/2012/NĐ-CP dated November 12, 2012 on the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 21/2009/QĐ-TTg dated February 12, 2009 of the Prime Minister on electricity prices for 2009 and the years 2010-2012 under the market mechanism;

To implement the guidance of Deputy Prime Minister Hoang Trung Hai in Official Letter No. 1287/VPCP-KTN dated March 2, 2009 regarding the implementation of the transfer, receipt, and return of capital for rural low-voltage distribution networks;

To implement Decision No. 854/QĐ-TTg dated July 10, 2012 of the Prime Minister approving the production, business, and investment plan for the period 2011-2015 of Vietnam Electricity Corporation (EVN);

The Minister of Industry and Trade and the Minister of Finance issue this Joint Circular guiding the transfer, receipt, and return of investment capital for rural low-voltage distribution network assets.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

Article 1. This Joint Circular stipulates matters related to the transfer and receipt of rural low-voltage distribution network assets (hereinafter referred to as "LĐHANT"), including: methods for determining the value of LĐHANT assets in transfers and receipts; transfer and receipt documents; procedures for transfer and receipt; methods for returning capital; sources of capital for return; and responsibilities of parties involved in the transfer and receipt of LĐHANT assets.

Article 2. This Joint Circular applies to asset owners of LĐHANT (hereinafter referred to as "the Transferor"), Vietnam Electricity Corporation (EVN) subsidiaries or power companies authorized by EVN subsidiaries (hereinafter referred to as "the Recipient"); Vietnam Electricity Corporation and organizations and individuals related to the activities of transferring, receiving, and returning investment capital for LĐHANT projects as guided by this Joint Circular.

Article 3. The objects to be transferred are LĐHANT projects that have been approved for investment by competent authorities before the effective date (February 12, 2009) of Decision No. 21/2009/QĐ-TTg of the Prime Minister dated February 12, 2009 on electricity prices for 2009 and the years 2010-2012 under the market mechanism.

LĐHANT projects invested after February 12, 2009, if the asset owner of LĐHANT wishes to transfer them to units under Vietnam Electricity Corporation shall negotiate the transfer and receipt according to the provisions of the law.

Article 2. Interpretation of terms

In this Circular, the following terms shall be understood as follows:

1. Transferred rural low-voltage distribution network assets include parts of the distribution network with voltage up to 0.4 kV, comprising trunk lines and branch lines determined from the secondary side of the circuit breaker or transformer substation (circuit breaker, transformer) of the 6-35/0.4 kV transformer supplying electricity to villages and towns to the meter measuring the energy consumption of rural households, which are part of the assets managed by rural electricity management organizations as owners or authorized by the owners to manage and operate, now transferred to subsidiaries of Vietnam Electricity Corporation (EVN) for management and direct sale of electricity to rural households.

2. Transferor refers to the owner or the legal representative of the owner of LĐHANT assets such as: Limited Liability Company, Joint Stock Company, Private Enterprise, organizations authorized by the owner of LĐHANT assets to carry out the transfer (local rural electricity management organization (referred to as LDU); Rural Energy Project Management Board II; Project and Construction Management Boards at local levels); cooperatives; individuals voluntarily transferring or subject to mandatory transfer according to the decision of the provincial/municipal People's Committee due to not meeting the conditions for retail electricity sales under the tiered residential electricity price schedule prescribed in Article 4 of Decision No. 21/2009/QĐ-TTg dated February 12, 2009 of the Prime Minister on electricity prices for 2009 and the years 2010-2012 under the market mechanism and current regulations of the Ministry of Industry and Trade on electricity prices and implementation guidelines.

In cases where the owner of LĐHANT assets cannot be identified, the Chairman of the Provincial/Municipal People's Committee shall designate relevant agencies or organizations to act as representatives of the Transferor.

3. Transferee refers to subsidiaries of Vietnam Electricity Corporation or power companies authorized by subsidiaries of Vietnam Electricity Corporation.

Chapter II

TRANSFER AND RECEIPT DOCUMENTS AND METHODS FOR DETERMINING THE VALUE OF

RURAL LOW-VOLTAGE DISTRIBUTION NETWORK ASSETS IN TRANSFERS AND RECEIPTS

Article 3. Transfer Documents

The transfer documents for rural low-voltage power grid assets (LĐHANT) include original documents as prescribed and documents prepared at the time of transfer and receipt. Specifically as follows:

1. Original documents include:

a) Investment decision, technical design, approved budget estimate, completion acceptance record for the project or project component.

For LĐHANT assets transferred from the Rural Energy Project II (REII), in addition to the above documents, the original documents also include: technical documents; As-built drawings; current land status plan for LĐHANT; land-related documents concerning land allocation or land transfer for investment in the project and other related documents (if any).

b) Accounting records related to determining the original cost and remaining value of the transferred LĐHANT assets, capital structure of the invested project, approved final settlement report of the project by the competent authority.

c) Loan contracts with domestic and foreign financial institutions, other economic organizations (including loans from construction units); proof of other liabilities; reconciliation statements with confirmed debts from financial institutions or lenders, creditors; settlement documents (related to transferred power grid assets) with confirmed amounts paid and outstanding debts at the time of transfer (if any).

d) Debt certificates issued to villagers based on commitment letters for repayment provided by the transferring party for construction such as: Resolution of the People's Council or People's Committee of the commune or Resolution of the Commune Cooperative Member Congress; accounting records reflecting the amount repaid and outstanding debt at the time of project transfer and other related documents (if any).

đ) Proof of individual capital (receipts, contribution certificates to joint-stock companies and other documents (if any)), cooperative member capital used for construction.

2. Documents prepared at the time of transfer and receipt

In addition to the documents stipulated in Clause 1 of this Article, the transferring party shall cooperate with the receiving party to prepare documents at the time of transfer and receipt according to the following contents:

a) Prepare the current land status plan for rural low-voltage power grids; Current land status plan for LĐHANT (if not yet available) and other relevant documents as prescribed in Decision No. 34/2006/QĐ-BCN dated September 13, 2006 of the Ministry of Industry on Technical Safety Regulations for Rural Low-Voltage Power Grids.

Based on the current land status plan for LĐHANT prepared, the transferring party shall cooperate with the receiving party to submit it to the People's Committee of the district for confirmation as a legal basis for future operation and management.

b) Prepare the Transfer and Receipt Record of LĐHANT assets according to the model prescribed in Appendix 1 of this Joint Circular, including:

- Original transfer documents of LĐHANT assets according to the model prescribed in Appendix 1.1 of this Joint Circular;

- Prepare a summary table of quantities and analysis of the remaining value of LĐHANT assets according to the model prescribed in Appendix 1.2 or Appendix 1.3 of this Joint Circular;

- Prepare a list identifying the capital structure of LĐHANT investments according to the model prescribed in Appendix 1.4 of this Joint Circular.

c) Prepare the Record Determining the Remaining Value of LĐHANT Assets according to the model prescribed in Appendix 2 of this Joint Circular.

3. For projects that have been transferred and completed the transfer procedures before the effective date of this Circular, the documents shall be kept intact and supplemented with a Record Determining the Capital Amount for Organizations and Individuals to be Refunded According to the Remaining Value of LĐHANT Assets according to the model prescribed in Appendix 3 of this Joint Circular.

Article 4. Method for Determining the Remaining Value of Assets to be Transferred

Based on the actual management situation of the LĐHANT assets of the Transferor, the remaining value of the LĐHANT assets to be transferred shall be determined according to one of the following methods:

1. Valuation method based on accounting records: applicable to assets that are managed and depreciated in accordance with current legal regulations.

2. Valuation method based on actual value: applicable to assets that have been put into management and use but have not been monitored and depreciated in accordance with current legal regulations.

The remaining value of the asset to be transferred is determined based on the actual quality of the asset being transferred, specifically as follows:

 Where:

a) The actual quantity of the asset is determined based on the actual inventory data of the LĐHANT assets being transferred;

b) The unit price of each asset is taken from the unit price specified at the time of transfer by each locality (determined by the provincial level) or according to the specialized electricity unit prices;

c) The remaining quality of each asset is determined by the Transferor and Transferee based on the actual quality of the asset.

3. Valuation method for newly invested LĐHANT assets:

For projects completed within three years from the date of completion to the date of the decision to transfer: the value of the assets to be transferred is determined based on the project settlement value (or settlement value of the project component) approved by the competent authority.

In cases where the project has been completed but not yet approved by the competent authority but has been put into use, at the time of handover, the temporary value of the assets to be transferred is calculated as the total bid price for construction and equipment approved as the basis for the Asset Valuation Committee to submit to the People's Committee of the province/city for a decision on the temporary value of the assets transferred to the Transferee. The official value of the LĐHANT assets to be transferred will be adjusted after the project settlement is approved by the competent authority.

4. In cases where the Transferor and Transferee cannot agree on the remaining quality ratio of the assets to be transferred, both parties shall agree to select and sign a contract with valuation organizations announced annually by the Ministry of Finance to determine the remaining value of the LĐHANT assets as the basis for handover. If the two parties cannot agree on selecting valuation organizations to determine the remaining value of the assets to be transferred, the Transferor is responsible for submitting to the People's Committee of the province/city for consideration and decision on the selection of valuation organizations to determine the remaining value of the LĐHANT assets to be transferred.

In cases where the cost of hiring a valuation organization exceeds the remaining value recorded in the accounting books of the assets to be transferred, the Asset Valuation Committee shall submit to the People's Committee of the province/city for a decision on the remaining value of the assets to be transferred.

Valuation organizations are responsible for the accuracy and legality of the valuation results in accordance with the law. Based on the valuation results of the aforementioned valuation organizations, the Department of Finance shall take the lead in coordinating with the Department of Industry and Trade to review and report to the People's Committee of the province/city for approval. The cost of hiring a valuation organization shall be borne equally by the Transferor and Transferee.

5. For LĐHANT assets that do not meet current technical standards such as low-voltage power lines constructed with self-made poles; electricity meters that do not comply with approved models, usage periods, and quality standards; and assets with a remaining quality ratio lower than 20%, the Transferor shall temporarily transfer these assets in their original condition to the Transferee to maintain power supply to residents in the short term.

After receiving them, the Transferee must plan to allocate funds to upgrade and replace them to meet technical standards as required for safe and efficient operation of the power facilities. At the same time, the Transferee is responsible for cooperating with the Transferor to recover assets that do not meet technical standards or have a remaining quality ratio below 20% and return them to the Transferor (the Transferee does not increase capital or repay capital for these assets). In cases where the Transferee returns recovered assets to the Transferor at the designated time but the Transferor no longer exists, these assets will be returned to the unit designated by the People's Committee of the province/city.

For electricity meters that have been approved by the competent authority for models and still have usage periods, after re-evaluation and adjustment to meet technical standards, both parties shall agree based on consensus on the remaining quality and market price of such assets.

Article 5. Determining the structure of capital sources for construction projects

Based on the asset handover dossier as stipulated in Clause 1, Article 3 and accounting books and related documents of the investment project, determine the total amount of invested capital, classify each source of capital to serve as the basis for handling capital and assets upon handover according to the following regulations:

1. Capital with origins from the State budget includes: central budget, local budget, capital from national programs, capital from agricultural tax exemptions for investment in electricity construction projects, capital from state-owned enterprises holding 100% equity, and untraceable capital.

2. Capital from organizations and individuals: capital from joint-stock companies, limited liability companies, private enterprises, cooperatives, capital raised from the public, and individual contributions.

3. Borrowed capital from domestic and foreign credit institutions and other units (including outstanding loans from construction units) shall be determined based on loan agreements (loan contracts) at the time of construction and confirmed by credit institutions or lenders, reconciliation statements of receivables and payables up to the handover date.

4. For joint investment projects where LĐHANT is only a component of the project, the determination of the structure of LĐHANT investment capital shall correspond to the proportion of the overall investment capital structure of the entire project approved by the competent authority when constructing the project.

Chapter III

SOURCES OF CAPITAL FOR REIMBURSEMENT AND METHODS OF REIMBURSEMENT OF CAPITAL FOR RURAL LOW-VOLTAGE ELECTRICITY NETWORKS

Article 6. Principles for handling and reimbursing capital

The value of the LĐHANT project handed over, as determined in the handover record and confirmed by each source of capital, shall be handled according to the following principles:

1. For assets invested using capital with origins from the State budget: increase the assets and capital belonging to the State budget for the Receiving Party according to the actual remaining value of the handed-over assets and decrease the assets and capital belonging to the State budget for the Delivering Party according to the book value.

2. For capital from organizations and individuals, the Receiving Party shall reimburse according to the actual remaining value of the handed-over assets. If the Delivering Party is a business entity, it may account for the difference between the remaining book value and the actual remaining value of the handed-over assets as revenue or other operating expenses.

3. In cases where LĐHANT is handed over using borrowed capital or other payable amounts with repayment commitments: if the required documents as specified in point c, Clause 1, Article 3 of this Circular are complete and approved by the provincial/municipal People's Committee, the Receiving Party shall reimburse the Delivering Party the outstanding loan amount to the credit institution or other entities according to the loan agreement or promissory note (maximum not exceeding the actual remaining value of the handed-over assets), while increasing business capital from the State budget for the difference between the actual received asset value (after revaluation) and the amount to be reimbursed to the Delivering Party (if applicable).

If the actual remaining value of the assets is lower than the outstanding loan/debt balance, the Delivering Party shall account for the difference as operating expenses of the entity (if it is a business entity) or the provincial/municipal People's Committee shall subsidize from the local budget (if the LĐHANT project was invested by the People's Committee) to have funds to repay the debt.

4. In cases where the project is funded by multiple sources of capital, based on the initial value and structure of the investment capital, both Parties shall determine the corresponding proportion of each source of capital in the total remaining value of the handed-over project as recorded in the handover record and handle and reimburse capital according to the guidance provided in Clauses 1, 2, and 3 of this Article.

To be eligible for reimbursement according to the above guidance, the owner or representative of the LĐHANT project must prepare all required documents as stipulated in Clause 1, Article 3 of this Circular. The documents for capital reimbursement must absolutely not be duplicated, altered, or erased from borrowing and debt documents.

In cases where there are no or insufficient documents as stipulated in Clause 1, Article 3 above, the Delivering Party and the Receiving Party need to prepare a record describing the specific status of the asset handover documents (especially borrowing and fundraising documents from organizations and individuals), conduct an assessment of the actual remaining value of the handed-over assets according to the methods specified in Article 4 of this Circular, report to the Appraisal Board for review and approval by the provincial/municipal People's Committee.

6. Time of determining the handover of LĐHANT projects and capital reimbursement

a) LĐHANT projects handed over from the date this Circular takes effect shall follow the handover and capital reimbursement procedures as stipulated in this Circular.

b) LĐHANT projects that have been handed over before the effective date of this Circular shall follow the content of the Decision or Handover Record. In cases where the Delivering Party and the Receiving Party have agreed in the Handover Record or Decision about capital reimbursement upon guidance from the competent authority, they shall implement capital reimbursement according to the guidance in this Circular.

c) For LĐHANT projects that have completed handover and acceptance documents before the effective date of this Circular but have not yet received a decision approving the remaining asset value and capital reimbursement from the competent authority, there is no need to reprepare the handover and acceptance documents. Based on the already prepared handover documents, the Delivering Party and the Receiving Party shall submit to the provincial/municipal People's Committee for approval of the remaining asset value and implementation of capital reimbursement according to this Circular.

d) For power transmission and distribution projects (LĐHANT) invested after the Prime Minister's Decision No. 21/2009/QĐ-TTg dated February 12, 2009 on electricity prices for 2009 and the years 2010-2012 under the market mechanism, where localities self-fund the investment according to their objectives, if there is a need to transfer LĐHANT assets to the electricity sector for management, the investor shall be responsible for concluding a written agreement with the Electricity Corporation or a Power Company authorized by the Electricity Corporation regarding the transfer and repayment of the transferred asset capital before making the investment decision.

Article 7. Capital sources, time frame, and method of capital repayment

1. Capital source for repayment

Power companies may use annual depreciation funds to repay capital to the transferring party or the People's Committee of the commune, or organizations (for LĐHANT projects funded by public contributions). The repayment of capital shall be completed within a maximum period of 36 months from the effective date of the People's Committee's decision approving the value of the transferred assets.

Specifically, for LĐHANT assets received under the REII project financed by World Bank (WB) loans, power companies shall use annual depreciation funds from the date of receiving the LĐHANT assets to repay capital to the People's Committees of provinces/cities so that these committees have funds to repay the Ministry of Finance according to the loan agreement conditions.

2. Method of repayment

Based on decisions by the People's Committees of provinces/cities, power companies receiving LĐHANT projects shall directly repay the transferring party according to the handover documents. For LĐHANT projects funded by public contributions, power companies shall transfer money to the People's Committee of the commune where the LĐHANT project is located for the commune to repay each contributing individual.

Chapter IV

RESPONSIBILITIES, PROCEDURES FOR HANDOVER, MANAGEMENT, AND CAPITAL REPAYMENT OF RURAL LOW-VOLTAGE DISTRIBUTION NETWORK ASSETS

Article 8. Responsibilities of the Transferring Party and the Receiving Party

1. Responsibilities of the Transferring Party

The responsibilities of the transferring party include:

a) Preparing complete documents and certificates as stipulated in Article 3 of this Joint Circular, jointly with the receiving party to conduct inventory and assess the remaining value of LĐHANT; determine the structure of investment capital for LĐHANT.

b) In cases where LĐHANT assets transferred belong to the REII project formed from WB loans, written approval from the lender is required.

c) For newly transferred LĐHANT projects without final settlement approval, the transferring party (project management boards assigned to manage the transferred LĐHANT projects in provinces/cities) shall prepare final settlement documents and submit them to competent authorities for approval according to the procedures and deadlines specified in Circular No. 19/2011/TT-BTC dated February 14, 2011 of the Ministry of Finance guiding final settlement of completed projects funded by state budget, to serve as the basis for determining the value of transferred LĐHANT assets and preparing the asset transfer documents as stipulated in Article 3 of this Joint Circular.

d) Appointing representatives to participate in the Asset Valuation Council as prescribed in Article 9 of this Joint Circular.

đ) Implementing the transfer of LĐHANT assets and related documents as prescribed in this Joint Circular; facilitating the acceptance, management, and operation by the receiving party.

e) Publicly announcing to the people and relevant parties the accepted and repaid loan capital, raised capital, and investment capital according to regulations; simultaneously, they are responsible for repaying capital to the people (in cases of public contributions) and other relevant parties according to the decisions of competent authorities.

2. Responsibilities of the Receiving Party

The responsibilities of the receiving party include:

a) Jointly with the transferring party, conducting inventory and assessing the remaining value of transferred assets; determining the structure of investment capital for transferred power network assets and preparing handover documents as stipulated in Article 3 of this Joint Circular;

b) Appointing representatives to participate in the Asset Valuation Council as prescribed in Article 9 of this Joint Circular.

c) Implementing the acceptance, management of the power network, and related documents for asset handover. After accepting the transferred LĐHANT assets, they shall record the increase in assets and capital from state-owned funds or repay the capital.

d) Cooperating with the transferring party to recover assets not meeting technical standards or with a remaining quality ratio below 20% and return them to the transferring party (after replacement and new investment to ensure operational conditions and electricity sales).

đ) Organizing the management and operation of the power network according to legal provisions. Preparing and implementing plans for capital repayment as stipulated in Articles 6 and 7 of this Joint Circular.

Article 9. Establishment of the Asset Valuation Council for State-owned Enterprises' Assets Transfer (LĐHANT)

1. The Asset Valuation Council for LĐHANT at provincial/city level shall be established by the Chairman of the People's Committee of the province/city. In cases of necessity, the Chairman of the Provincial People's Committee may delegate to the People's Committee of the district with sufficient capacity (where the LĐHANT assets are transferred) to establish the Asset Valuation Council for LĐHANT.

2. Members of the Asset Valuation Council for LĐHANT include:

a) The Chairperson of the Asset Valuation Council for LĐHANT shall be held by the leader in charge of the Industry and Trade sector at the provincial/city level or the Chairman of the District People's Committee if delegated.

b) Other members shall be representatives from the Finance and Industry and Trade departments at the same level, and representatives from the transferring party and the receiving party.

Additionally, the Chairperson of the Asset Valuation Council for LĐHANT may invite representatives from relevant agencies and departments at the local level to participate in the Asset Valuation Council.

3. The Asset Valuation Council for LĐHANT shall be responsible for organizing the assessment, preparing the minutes on the remaining value of the transferred LĐHANT assets, and confirming the structure of investment capital according to Article 5 of this Joint Circular; submitting to the Provincial People's Committee for approval as the basis for capital repayment or increased capital for Electricity Joint Stock Companies under the Vietnam Electricity Corporation.

Article 10. Costs for the Transfer and Acceptance of LĐHANT Assets

1. For costs related to work associated with the transfer and acceptance of LĐHANT assets (travel expenses, accommodation, working expenses), units sending staff to participate shall be responsible for settling these costs according to prescribed regulations and accounting them as part of production and business operation expenses.

In cases where the transferring party is an individual: costs related to work associated with the transfer and acceptance of LĐHANT assets (travel expenses, accommodation, working expenses) shall be settled by the individual themselves.

2. Costs for printing documents and meetings shall be borne by the receiving party and accounted for as part of the business operation expenses of the enterprise.

Article 11. Procedures for the Transfer and Acceptance of LĐHANT Assets and Capital Repayment

1. Based on the Decision of the Provincial People's Committee approving the list of units implementing the transfer of LĐHANT assets to the management of the receiving party or the agreement between the transferring party and the receiving party, the transferring party shall be responsible for preparing the dossier in accordance with Clause 1 of Article 3 of this Joint Circular and sending it to the receiving party.

2. Within the latest 15 days from the date the receiving party receives the dossier sent by the transferring party, both parties shall conduct an inventory of the quantity and assess the remaining quality of each transferred asset according to the above guidance; prepare the minutes of the transfer of LĐHANT assets and complete the transfer and acceptance dossier in accordance with Article 3 of this Joint Circular, and submit it to the Asset Valuation Council for review.

3. On the basis of the transfer and acceptance dossier prepared by both parties, the Asset Valuation Council shall be responsible for assessing the remaining value of the assets, determining the structure of investment capital, outstanding loan value, and the amount of capital to be repaid, and submitting it to the Provincial People's Committee for approval.

4. Within the latest 15 days from the date of the Decision of the Provincial People's Committee approving the value of the transferred assets, both parties shall proceed with the transfer and acceptance of LĐHANT assets.

The implementation of accounting for increases or decreases in assets and capital or capital repayment between the two parties shall be carried out from the date of the Decision of the Provincial People's Committee approving the value of the transferred assets.

The time frame for the receiving party to repay capital to the transferring party shall be implemented according to Articles 6 and 7 of this Joint Circular. The receiving party shall be responsible for accepting LĐHANT assets, accounting and tracking, managing operations, and organizing direct electricity sales to households in accordance with current regulations.

Chapter V

ORGANIZATION AND IMPLEMENTATION

Article 12. Responsibilities of the People's Committee of Provinces and Cities

The Chairperson of the People's Committees of provinces and cities shall be responsible for:

1. Issuing a Decision to approve the list of rural electricity business organizations on their territory that will transfer assets of the Rural Low Voltage Distribution Network (LĐHANT) to the Electricity Total Companies under the Vietnam Electricity Group for management (including: rural electricity business organizations that do not meet the conditions for retail electricity sales according to the tiered residential electricity tariff prescribed in Article 4 of Decision No. 21/2009/QĐ-TTg dated February 12, 2009 of the Government on electricity selling prices in 2009 and the years 2010-2012 under the market mechanism and current regulations of the Ministry of Industry and Trade on electricity selling prices and implementation guidelines; rural electricity business organizations voluntarily transferring assets of the LĐHANT).

2. Based on the agreed asset transfer plan of the LĐHANT with the Electricity Company under the Electricity Total Companies within EVN, directing rural electricity business organizations on their territory that must transfer assets to the power industry for management and rural electricity business organizations voluntarily transferring assets to implement the transfer of LĐHANT assets according to the guidance provided in this Circular to the Electricity Total Companies under EVN.

3. Issuing a Decision to establish an Asset Valuation Council of the LĐHANT province or authorizing the People's Committee of the district with sufficient capacity to establish an Asset Valuation Council of the LĐHANT at the district level (in case of necessity).

4. Designating a suitable organization to represent the Transferor in cases where the owner of the transferred LĐHANT assets cannot be identified.

5. Issuing a Decision to select an appraisal organization to determine the remaining value of the transferred assets when the Transferor and the Transferee cannot agree on the remaining quality ratio of the transferred assets.

6. Directing the Project Management Board on their territory assigned to manage investment projects of the LĐHANT (including LĐHANT projects under the REII project) to complete all procedures, prepare completion settlement documents for completed projects, and carry out final settlement of completed projects (for projects without final settlement) in accordance with Circular No. 19/2011/TT-BTC dated February 14, 2011 of the Ministry of Finance on guiding the settlement of completed projects funded from the state budget and hand over all project files to the Transferee.

7. Issuing a Decision to approve the settlement of LĐHANT projects that have been completed to serve as the basis for determining the value of assets transferred to the power industry for management.

8. Approving the value of transferred assets, the structure of investment capital, the outstanding loan value, and the amount of capital to be refunded to serve as the basis for the Transferor and the Transferee to adjust assets and capital or refund capital in accordance with this Joint Circular.

Article 13. Responsibilities of the Vietnam Electricity Group

The Vietnam Electricity Group shall be responsible for:

1. Directing and guiding the Electricity Total Companies to cooperate with the Transferor to develop plans to continue implementing the Program of transferring and repaying investment capital for assets of the Rural Low Voltage Distribution Network (LĐHANT) of the remaining communes in accordance with Decision No. 854/QĐ-TTg dated July 10, 2012 of the Prime Minister approving the production and business operation and investment plan for the period 2011-2015 of the Vietnam Electricity Group; Organizing the acceptance, management, and direct sale of electricity to rural households; Developing plans to allocate funds for repayment, investment, upgrading, and improving the LĐHANT to ensure safe operation and long-term electricity sales.

2. Annually (no later than March 31), compiling and reporting to the Ministry of Industry and Trade and the Ministry of Finance on the results of transferring and accepting LĐHANT assets, increased capital, and capital repayment for the previous year.

3. After completing the program of transferring and accepting LĐHANT assets, submitting a comprehensive report to the Ministry of Finance and the Ministry of Industry and Trade on the overall results of transferring and accepting assets, increased capital, and capital repayment of the LĐHANT transfer and acceptance program.

Article 14. Effective Date

1. This Circular takes effect from January 1, 2013. This Circular replaces Joint Circular No. 06/2010/TTLT/BCT-BTC dated February 3, 2010 of the Ministry of Industry and Trade and the Ministry of Finance guiding the transfer, acceptance, and repayment of investment capital for the rural low voltage distribution network.

2. During the implementation process, if there are any difficulties, units and localities are requested to report to the Ministry of Industry and Trade and the Ministry of Finance for timely coordination and resolution.