Decision No. 35/2008/QD-TTg On the organization and operation of the Vietnam Environment Protection Fund

Pursuant to …;

Regarding the organization and operation of the Vietnam Environmental Protection Fund

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PRIME MINISTER

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

The Prime Minister issues this Decision amending and supplementing certain provisions of the Regulation on Response Activities to Oil Spill Incidents issued together with Decision No. 02/2013/QĐ-TTg dated January 14, 2013 of the Prime Minister.

CONSIDERING THE PROPOSAL OF THE MINISTER OF NATURAL RESOURCES AND ENVIRONMENT,

DECISION:

Article 1. Functions of the Vietnam Environmental Protection Fund

The Vietnam Environmental Protection Fund has the function of receiving financial resources from the state budget; donations, contributions, and entrusted funds from organizations and individuals both domestically and internationally to financially support environmental protection activities nationwide.

Article 2. Legal Status of the Vietnam Environmental Protection Fund

1. The Vietnam Environmental Protection Fund is a state financial organization under the Ministry of Natural Resources and Environment and is subject to state management over finance by the Ministry of Finance.

The Vietnam Environmental Protection Fund is the National Environmental Protection Fund.

The Vietnam Environmental Protection Fund has legal personality, registered capital, its own balance sheet, seal, and bank accounts at the State Treasury and domestic and foreign banks as prescribed by law.

2. Name: Vietnam Environmental Protection Fund. English trading name: Vietnam Environment Protection Fund (VEPF).

3. The headquarters of the Vietnam Environmental Protection Fund is located in Hanoi.

The Fund may establish representative offices in provinces and centrally governed cities as decided by the Fund's Management Board.

The Fund may set up transaction offices abroad when necessary according to government regulations.

Article 3. Activities of the Vietnam Environmental Protection Fund

1. The Vietnam Environmental Protection Fund operates without profit motive but must preserve the registered capital and cover management costs.

2. The Minister of Natural Resources and Environment shall issue the Charter on the organization and operation of the Vietnam Environmental Protection Fund in accordance with this Decision and current state regulations.

Article 4. Tasks of the Vietnam Environmental Protection Fund

1. To receive financial resources as stipulated in Article 6 of this Decision to create operational capital for the Vietnam Environmental Protection Fund.

2. To provide financial support for programs, projects, natural conservation and biodiversity activities, national, inter-sectoral, inter-regional pollution prevention, mitigation, and environmental emergency response, or resolving localized environmental issues with significant impact in the following forms:

a) Providing loans with preferential interest rates;

b) Supporting interest rates on loans and guaranteeing loans for environmental projects borrowing from credit institutions as prescribed by law;

c) Funding the development and implementation of projects to mobilize fund sources for the Fund to address environmental pollution, respond to and mitigate environmental disasters; for programs, plans, and projects as decided by the Prime Minister; for organizing environmental awards and other forms of recognition for outstanding organizations and individuals in environmental protection as decided by the Minister of Natural Resources and Environment; for environmental protection projects and tasks as stipulated in the Charter on the organization and operation of the Vietnam Environmental Protection Fund.

3. Jointly funding and providing loans for environmental projects consistent with the criteria and functions of the Vietnam Environmental Protection Fund with financial organizations both domestically and internationally, the Global Environment Facility (GEF), foreign environmental funds, and local environmental funds to serve environmental protection activities as prescribed by law.

4. Organizing the assessment and approval of the level, time, and form of financial support for environmental protection projects and tasks using investment support funds from the Vietnam Environmental Protection Fund as stipulated in the Charter on the organization and operation of the Vietnam Environmental Protection Fund.

5. Using idle funds not sourced from the state budget and with the agreement of the organizations and individuals providing the funds to purchase government bonds as prescribed by law.

6. Organizing registration, monitoring, and managing certified emission reduction certificates (hereinafter referred to as CERs; 1 CER is equivalent to one ton of CO2); organizing registration, receipt, distribution, and sale of CERs to CER owners or receiving entities; collecting fees for CER sales to cover fee collection costs; supporting activities to promote and publicize clean development mechanisms (hereinafter referred to as CDM); preparing, building, reviewing, and approving investment project documents under the CDM mechanism (hereinafter referred to as CDM projects); managing and supervising the implementation of CDM projects and other purposes related to CDM as prescribed by law; implementing price subsidies for CDM project products as prescribed by law.₂ 7. Receiving environmental restoration guarantees from organizations and individuals permitted to extract minerals.

8. Participating in coordinating and managing finances for key environmental protection programs and projects as assigned by the Minister of Natural Resources and Environment and decided by competent authorities.

9. Performing other tasks assigned by the Minister of Natural Resources and Environment.

9. Perform other tasks assigned by the Minister of Natural Resources and Environment.

Article 5. Powers of the Vietnam Environmental Protection Fund

1. Organize management agencies and business units to operate in accordance with the Charter, objectives, and assigned tasks.

2. Regularly and randomly inspect units using the Fund's capital in implementing activities, tasks, and environmental protection projects. The Vietnam Environmental Protection Fund has the right to withdraw loaned capital, suspend funding, or support interest rates for loans from project sponsors who breach commitments to the Fund or violate state regulations, and to bring such sponsors to competent authorities as prescribed by law.

3. Invite experts from relevant ministries, sectors, and organizations to participate in the Evaluation Council for activities, tasks, and environmental protection projects seeking funding or investment support, and to serve other activities of the Fund.

4. Enjoy salary, bonus, and welfare benefits as prescribed for state-owned enterprises.

5. Refuse all requests from any organization or individual for information and other resources of the Vietnam Environmental Protection Fund if such requests contravene laws and the Charter on the organization and operation of the Vietnam Environmental Protection Fund.

6. Directly engage with domestic and foreign organizations and individuals to solicit, attract, and accept funding or additional capital mobilization for the Vietnam Environmental Protection Fund.

7. Dispatch staff members of the Vietnam Environmental Protection Fund abroad for work, study, observation, and survey in accordance with legal provisions.

Article 6. Capital Sources of the Vietnam Environmental Protection Fund

The operational capital of the Vietnam Environmental Protection Fund is formed from the following sources:

1. The charter capital of the Vietnam Environmental Protection Fund provided by the state budget is 500 billion (five hundred billion) Vietnamese dong and will be fully allocated within two years from the date this Decision takes effect. Annually, the Fund will receive supplementary capital from the state budget for environmental affairs to offset funding for environmental protection projects and tasks, ensuring that the Fund's operational capital from the state budget is at least 500 billion Vietnamese dong. Any change in the charter capital of the Vietnam Environmental Protection Fund shall be decided by the Prime Minister based on the proposal of the Minister of Natural Resources and Environment and the Minister of Finance.

2. Annual supplementary operational capital from other sources:

a) Environmental protection fees for wastewater, exhaust gases, solid waste, mineral extraction, and other types of environmental protection fees as prescribed by law;

b) Damages compensation payments for environmental harm collected into the state budget;

c) Administrative fines in the field of environmental protection;

d) Fees from selling Certified Emission Reductions (CERs);

đ) Donations, support, contributions, and entrusted investments from organizations and individuals both domestically and internationally;

e) Other supplementary capital sources as prescribed by law.

Article 7. Management and Operation Structure of the Vietnam Environmental Protection Fund

The management and operation structure of the Vietnam Environmental Protection Fund includes the Fund Management Board, the Audit Board, the Operational Management Agency, and the Fund's representative offices.

1. The Fund Management Board consists of the Chairman and members.

The Chairman of the Fund Management Board is a Deputy Minister of the Ministry of Natural Resources and Environment.

Members are department-level leaders from the following agencies: the Ministry of Natural Resources and Environment, the Ministry of Finance, the Ministry of Planning and Investment, and the State Bank of Vietnam.

Based on the proposals of the Ministry of Finance, the Ministry of Planning and Investment, and the State Bank of Vietnam, the Minister of Natural Resources and Environment issues a decision to appoint members of the Fund Management Board. Members of the Fund Management Board operate on a part-time basis and enjoy benefits according to current state regulations.

2. The Audit Board consists of the Head of the Audit Board and several members.

The Head of the Audit Board is appointed and relieved of duty by the Chairman of the Fund Management Board. Members of the Audit Board are decided by the Chairman of the Fund Management Board upon the recommendation of the Head of the Audit Board; the number of Audit Board members does not exceed five. The Audit Board operates on a full-time basis.

3. The Operational Management Agency of the Vietnam Environmental Protection Fund includes: the Director, several Deputy Directors, the Chief Accountant, and various business departments and representative offices under the Fund.

a) The Fund Director is appointed or relieved of duty by the Minister of Natural Resources and Environment based on the recommendation of the Chairman of the Fund Management Board;

b) Deputy Directors and the Chief Accountant are proposed by the Director, reviewed by the Chairman of the Fund Management Board, and then appointed or relieved of duty by the Minister of Natural Resources and Environment;

c) The organizational structure, functions, and tasks of the business departments assisting the Operational Management Agency of the Vietnam Environmental Protection Fund are decided by the Fund Director after obtaining approval from the Chairman of the Fund Management Board;

The Operational Management Agency of the Fund operates on a full-time basis.

Article 8. Implementation clause

This Decision takes effect fifteen days after its publication in the Official Gazette and replaces Articles 1 to 9 of Decision No. 82/2002/QĐ-TTg dated June 26, 2002, concerning the organization and operation of the Vietnam Environmental Protection Fund.

The Minister of Natural Resources and Environment, Ministers of Finance, Planning and Investment, Home Affairs, Governor of the State Bank of Vietnam, Chairman of the Fund Management Board, and Director of the Vietnam Environmental Protection Fund are responsible for organizing and implementing this Decision.

THE MINISTERS, HEADS OF GOVERNMENT-LEVEL MINISTRIES, HEADS OF GOVERNMENT-LEVEL AGENCIES, AND CHAIRMEN OF PROVINCE AND CITY PEOPLE'S COMMITTEES DIRECTLY UNDER THE CENTRAL GOVERNMENT SHALL BE RESPONSIBLE FOR ENFORCING THIS DECISION./.