Circular No. 35/2019/TT-BGTVT on dredging activities in port water areas

a) The location for disposing of dredged material announced and approved by the provincial People's Committee to ensure acceptance of dredged material during the contractual maintenance period;

b) The maintenance standards of the channel route already approved by the Ministry of Transport in the plan for dredging and maintaining public maritime shipping channels funded from the state budget;

c) The volume of maintenance dredging to maintain channel standards is calculated as the average annual volume, determined based on sedimentation volume changes indicated in regular navigation survey data, handover survey data of the project site, and acceptance survey data of channel maintenance dredging over the minimum recent three-year period. The volume of dredging includes the initial dredging volume (based on the latest navigation survey data and confirmed by the handover survey) and the volume of maintenance dredging to maintain channel standards from after the initial dredging period to the end of the contractual maintenance period;

d) The budget estimate for maintenance dredging under the form of contractual maintenance standards is determined based on the corresponding volume of dredging according to the designed channel standard, the disposal location, and the maintenance period.

2. The enterprise providing public services is responsible for:

a) Based on the plan for dredging and maintaining public maritime shipping channels, the annual state budget expenditure estimate assigned by the Ministry of Transport, the service provision contract using state budget funds for channel maintenance dredging signed between the Vietnam Maritime Administration and the enterprise providing public services, and the disposal location approved by the competent authority, the enterprise providing public services selects and signs contracts with design consultants, review consultants, environmental protection consultants, and prepares submergence project plans (if necessary); organizes the preparation, review, and submission to the Vietnam Maritime Administration of construction drawing designs and project estimates for channel maintenance dredging under the form of contractual maintenance standards for a specified period, environmental protection budgets, submergence project plans, and sea area transfer fees (if necessary); reviews and submits technical survey and measurement handover task outlines and plans, emergency survey and measurement task outlines and plans, and acceptance survey and measurement task outlines and plans prepared by supervising and survey consultants;

b) Based on the approved disposal location for the channel and the infrastructure maintenance plan approved by the Ministry of Transport, it requests the consultant to prepare and complete environmental protection documents for approval by the competent authority as prescribed.

3. The Vietnam Maritime Administration is responsible for

a) Review and approve the contents provided by the Public Service Enterprise for public services under the provisions of point a, Clause 2 of this Article;

b) Approve the budget estimate for emergency survey, measurement, and inspection costs for the dredged and maintained channel sections performed on a maintenance standard contract basis with a maximum frequency of three times per channel section per year. The scope of each survey and inspection is designated by the project owner, with the maximum surveyed area being 30% of the surface area of the channel section to check the maintenance of the design standards of the construction contractor;

c) Approve the outline and budget estimate for consultancy fees related to environmental protection work;

Article 7. Preparation of Tender Selection Plan

The Public Service Enterprise prepares the tender selection plan and submits it to the Vietnam Maritime Administration for approval in accordance with the laws on bidding;

Article 8. Organization of Tender Selection

1. The Vietnam Maritime Administration shall be responsible for:

a) Reviewing and approving the tender documents and the results of the selection of contractors for dredging and maintaining maritime channels on a maintenance standard contract basis within a specified period;

b) Selecting and signing contracts with consulting units for survey, measurement, handover of construction sites, supervision, emergency survey, measurement, inspection, final survey, measurement, auditing of projects, and units providing management and operation services for AIS information according to the laws on bidding;

c) Approving the terms of the dredging and maintenance contract on a maintenance standard contract basis within a specified period in compliance with the laws;

2. The Public Service Enterprise shall be responsible for:

a) Selecting and signing contracts with bidding consulting units for dredging. Preparing tender documents for selecting contractors for dredging and maintaining maritime channels on a maintenance standard contract basis within a specified period and submitting them to the Vietnam Maritime Administration for approval;

b) Organizing the evaluation of tender documents for dredging and maintaining maritime channels on a maintenance standard contract basis within a specified period and submitting the results of the selection of contractors to the Vietnam Maritime Administration for review and approval according to regulations;

c) Selecting and signing contracts with consulting units for implementing environmental protection work according to the laws on bidding;

d) Negotiating the terms of the dredging and maintenance contract: scope, scale, standards, construction equipment, contract duration, advance payment, payment, performance bond, handling of violations, force majeure, and other necessary terms; submitting the contract terms to the Vietnam Maritime Administration for approval; proceeding to sign the dredging contract on a maintenance standard contract basis within a specified period with the contractor;

Article 9. Handover of Construction Site

The Vietnam Maritime Administration shall take the lead and coordinate with the Public Service Enterprise, supervisory consultants, and design consultants to organize the handover of the construction site to the contractor before the commencement of dredging work;

Article 10. Organization of Project Construction

1. The Contractor's Responsibilities

a) Implement environmental work requirements according to the approved environmental impact assessment report and relevant environmental protection laws;

b) Adhere strictly to the traffic safety measures approved throughout the construction process;

c) Ensure the implementation of the contract in accordance with the laws and the signed dredging and maintenance contract;

d) Carry out dredging work in accordance with the contract and laws, ensuring that the design standards (channel length, width, depth, slope, and other related items) of the entire channel are always maintained during the contract period;

đ) Within the latest two days from the discovery of shallow areas or reports and requests from relevant agencies and units regarding channel management, operation, and utilization, the contractor must conduct surveys and develop dredging plans; within the latest five days from the discovery of shallow areas or reports and requests from relevant agencies and units regarding channel management, operation, and utilization, the contractor must carry out dredging at shallow areas to ensure channel design standards, with completion time not exceeding twenty days from the start of dredging work to address shallow areas after receiving reports and requests; simultaneously notify the supervisory consultant to implement construction supervision according to regulations;

In cases where weather conditions prevent the survey and dredging of shallow areas (confirmed by the Port Authority in the area and accompanied by weather reports at the time of non-execution), the contractor must immediately report to the Public Service Enterprise for guidance and within the latest two days from the end of the force majeure event, must conduct surveys, develop dredging plans, and immediately carry out dredging at shallow areas to ensure channel design standards, with completion time not exceeding twenty days from the end of the force majeure event and the start of dredging work to address shallow areas;

e) Select survey and measurement units to internally verify the construction results at the site according to regulations. Conduct survey and measurement of dredging results at shallow sections using the contractor’s own funds as stipulated in point b, Clause 2 of this Article;

g) If the contractor fails to complete dredging to meet the channel design standards within the agreed time, progress, and quality in the contract and is reminded and reported but does not complete dredging at shallow areas to meet the channel design standards within the time specified in point đ of this clause, the Public Service Enterprise shall report to the Vietnam Maritime Administration to consider reducing costs in the contract corresponding to the period without meeting the standards (from the reporting date to the completion of rectification).

h) In case the contractor is reminded or reported for the second time but still fails to complete the dredging of shallow areas (which were previously reminded or reported for the first time) to meet the design standards of the channel route within the time specified in Point d Clause of this Article, the State-owned Enterprise providing public service shall report to the Vietnam Maritime Administration for consideration and decision on selecting another contractor with sufficient capacity to carry out dredging of shallow areas at a suitable unit price based on the construction conditions at the time of implementation. The original contractor will have to fully pay the selected replacement contractor. If the original contractor delays payment or fails to fully pay the selected contractor after completing all required payment procedures as stipulated, the State-owned Enterprise providing public service shall report to the Vietnam Maritime Administration for consideration and decision to take necessary measures according to relevant laws and the construction contract agreement to ensure payment to the selected replacement contractor.

i) In case the contractor fails to complete the dredging work to meet the design standards of the channel route ensuring project progress and quality as agreed in the contract, and is reminded or reported for the third time but still fails to complete the dredging of shallow areas to meet the design standards of the channel route within the time specified in Point d Clause of this Article, or engages in improper disposal of dredged materials, illegal subcontracting, and dredging activities causing maritime accidents, severe environmental pollution due to the contractor's negligence, the State-owned Enterprise providing public service shall report to the Vietnam Maritime Administration for consideration and approval to terminate the signed contract and select another contractor with sufficient capacity as prescribed to continue the project.

k) In addition to the measures prescribed in Points g, h, and i Clause of this Article, the contractor must also bear contractual penalties, remedy the consequences of violations, be responsible for incidents related to vessel operations caused by shallow channels, and bear other responsibilities as prescribed by law and agreed in the signed construction contract.

2. The enterprise providing public services is responsible for:

a) Regularly manage, inspect, and supervise the implementation process of the contractor's construction and the on-site survey and acceptance of the project.

b) Periodically conduct surveys and measurements to issue maritime notifications as prescribed to check the maintenance of the channel route design standards by the contractor. Upon discovering shallow areas, the State-owned Enterprise providing public service shall proactively notify the contractor to immediately carry out dredging of shallow areas to meet the channel route design standards, while simultaneously notifying the supervising consultant to implement construction supervision as prescribed.

c) Publish maritime notifications based on the results of surveys and measurements as prescribed.

d) Periodically report the results of surveys and measurements and the implementation of dredging maintenance work to the Vietnam Maritime Administration and the Port Maritime Office in the area according to the provisions of the public service provision contract using state budget funds for channel dredging maintenance.

đ) Report the results of environmental quality monitoring during the implementation of dredging and maintenance to the Ministry of Transport and related units as prescribed by environmental protection laws.

e) Organize inspections and supervision of the contractor's compliance with environmental protection regulations and traffic safety during the construction process. Propose the project owner to suspend construction to address the contractor's and related organizations' and individuals' violations (if any).

3. The Vietnam Maritime Administration is responsible for

a) Direct the State-owned Enterprise providing public service and related units to regularly conduct surveys and measurements to issue maritime notifications as prescribed to check the maintenance of the channel route design standards by the contractor and serve phased or final acceptance of the project for use.

b) Direct the consulting unit to conduct surveys and measurements for unscheduled checks to verify the maintenance of the channel route design standards by the contractor.

c) Review the quality, progress of dredging and maintenance work, maritime safety during construction; suspend construction and handle the contractor's and related organizations' and individuals' violations according to regulations.

4. Inspection and supervision work: carried out in accordance with the provisions of Article 5 of this Circular.

Article 11. Acceptance of Works

1. The acceptance work for dredging and maintenance of maritime channels under the form of contractual maintenance standards within a specified time period shall be carried out in accordance with Clause 1, 4, and 6 of Article 21 of Decree No. 159/2018/NĐ-CP and relevant laws.

2. Public service enterprises providing services have the responsibility to issue marine notices in accordance with regulations when the works are completed.

Article 12. Payment and Settlement of Works

The payment and settlement of works shall be carried out in accordance with the provisions of the law.

Section 3

ORGANIZATION AND IMPLEMENTATION OF URGENT DREDGING AND MAINTENANCE

OF PUBLIC MARITIME CHANNELS

Article 13. Cases of Urgent Dredging and Maintenance

Urgent dredging and maintenance of public maritime channels to ensure safe navigation is the dredging work carried out based on urgent tasks arising from unforeseeable causes that pose a risk of maritime safety or significantly affect maritime activities.

Article 14. Assignment of Organization Implementation

The Ministry of Transport authorizes the Vietnam Maritime Administration to exercise the authority of the investment decision-maker for urgent dredging and maintenance works of public maritime channels.

Article 14. Procedure for Implementation

Urgent dredging and maintenance of public maritime channels shall be carried out in the following steps:

1. Submitting and approving urgent tasks.

2. Organizing the selection of contractors.

3. Conducting site handover surveys, preparing designs, and budget estimates for the works.

4. Organizing construction and supervising the works.

5. Accepting the works.

6. Settling the works.

7. Allocating state budget estimates.

8. Paying for the works.

Article 16. Submission and Approval of Urgent Tasks

1. Public service enterprises shall take the lead and coordinate with the Port Maritime Office in the area to conduct initial surveys and report to the Vietnam Maritime Administration on urgent dredging and maintenance tasks of public maritime channels, including the location of dredged material disposal approved by the competent authority.

2. The Vietnam Maritime Administration shall review and assess the degree of sedimentation, silting, erosion of channels, and the risk of maritime safety or significant impact on maritime activities; assume the role of the investment decision-maker to approve urgent tasks and decide to implement urgent dredging and maintenance.

Article 17. Selection of Contractors

1. Public service enterprises shall be responsible for evaluating and proposing contractors (construction, supervision, survey, design with capacity and experience) to immediately undertake contracts caused by unforeseeable events, submit to the Vietnam Maritime Administration for approval before selecting contractors.

2. Within fifteen days from the date of awarding the contract, public service enterprises shall carry out:

a) Conducting site handover surveys, preparing designs, and budget estimates in accordance with regulations to submit to the Vietnam Maritime Administration for approval; completing tender designation procedures including: preparing and sending draft contracts to contractors specifying scope, content of work to be performed, duration, quality requirements, and corresponding value for negotiation and completion of the contract;

b) Based on the results of contract negotiations and the Vietnam Maritime Administration's approval of contractors, public service enterprises shall approve the tender designation results and sign contracts with designated contractors.

Article 18. Survey for handover of construction site, preparation of design and budget estimates for works

1. Survey for handover of construction site

a) The public service provision enterprise shall organize the land survey work for handover after the Vietnam Maritime Administration approves the proposal on selecting contractors (construction, supervision, survey, and design) to implement the measures to address force majeure events;

b) The public service provision enterprise, supervisory consultant, design consultant, and construction contractor shall conduct inspection and supervision of the land survey work carried out by the consulting survey contractor and accept the results of the land handover survey for the construction contractor.

2. Construction drawings and budget estimates for works shall be prepared based on the results of the land handover survey for dredging channels affected by siltation, filling, and erosion caused by force majeure events.

3. The public service provision enterprise shall organize the preparation, review, and submit to the Vietnam Maritime Administration for approval of the construction drawings and budget estimates for works; organize the review and submission of the project outline and technical solutions for land survey work, supervision outline, and acceptance survey project outline and technical solutions prepared by supervisory and survey consultants.

4. The Vietnam Maritime Administration shall organize the examination and approval of the contents submitted by the public service provision enterprise in accordance with Clause 3 of this Article.

Article 19. Organization of construction works and inspection and supervision

1. Organization of construction works

a) The public service provision enterprise shall be responsible for managing and inspecting the implementation process of the construction contractor and supervisory consultant during the construction works;

b) The Vietnam Maritime Administration shall organize spot checks (if necessary) to ensure the quality and progress of the works;

c) The public service provision enterprise shall organize the preparation of safety assurance plans for traffic control to be approved by the Port Maritime Office in the designated area in accordance with regulations.

2. Inspection and supervision: carried out in accordance with Article 5 of this Circular.

Article 20. Acceptance of works

1. Carried out in accordance with Clause 1 and Clause 4 of Article 21 of Decree No. 159/2018/NĐ-CP.

2. Public service enterprises providing services have the responsibility to issue marine notices in accordance with regulations when the works are completed.

Article 21. Payment and settlement of works

Payment and settlement of works shall be implemented in accordance with the provisions of the law.

Article 22. Allocation of budget estimate for state funds

The emergency dredging costs for public maritime channels shall be funded from the state budget allocated for economic maritime affairs (emergency tasks ensuring traffic safety).

Section 4

CONSTRUCTION CONTRACT

MAINTENANCE DREDGING OF MARITIME CHANNELS

Article 23. Construction Contract maintenance dredging of maritime channels

1. The construction contract for maintenance dredging of maritime channels carried out for actual volume (applicable to annual maintenance dredging and emergency maintenance dredging to ensure traffic safety) is a contract with a fixed unit price throughout the entire duration of the contract for all work items (fixed unit price contract).

2. The construction contract for maintenance dredging of maritime channels carried out based on the quality of performance (applicable to contracted maintenance dredging to maintain standards within a specified period) is a contract with a fixed total price throughout the entire duration of the contract for all work items (lump sum contract).

Article 24. Principles for Implementing Contracts

1. The Vietnam Maritime Administration shall be the project investor entrusting a public service provider enterprise with some tasks of the project investor regarding dredging and maintenance of maritime channels through a public service provision contract using state budget funds for dredging and maintenance of maritime channels, which is signed between the Vietnam Maritime Administration and the public service provider enterprise.

2. The public service provider enterprise shall negotiate the contents of the construction contract for dredging and maintenance of maritime channels with the construction contractor based on the public service provision contract using state budget funds for dredging and maintenance of maritime channels as stipulated in Clause 1 of this Article.

Article 25. Contents of Construction Contracts

The contents of construction contracts for dredging and maintenance of maritime channels shall be implemented in accordance with the regulations of the Government and the guidelines of the Ministry of Construction on managing construction project contracts. Additionally, the contents of the construction contract must include the following provisions:

1. In case the construction contractor fails to complete the construction work in accordance with the agreed progress and quality requirements after being reminded and urged in writing by the project investor for the third time, they will not be accepted for inspection and payment, and their contract will be terminated, and they will be held responsible for compensating the losses and damages to the project investor according to the contract and relevant laws.

2. In case the construction contractor transports and dumps dredged materials at unauthorized locations, causing environmental pollution, or improperly transfers the contract, they will be held responsible for remedying the damages caused by themselves and will be subject to violation handling according to relevant laws.

3. For construction contracts for dredging and maintenance based on performance quality:

a) The form of the contract must clearly state "no adjustment of implementation costs";

b) The contents of the contract must comply with the provisions of Article 10 of this Circular and must specify the scope, scale, standards, duration of the contract, advance payments, settlement, performance guarantee, violation handling, force majeure, and other necessary contents.

Chapter III

ORGANIZATION OF DREDGING IN PORT AND MARINE WATER AREAS MANAGED BY THE MINISTRY OF TRANSPORTATION COMBINED WITH PRODUCT RECOVERY

Article 26. Establishment and Publication of Dredging Area Catalogue

1. Annually, the Vietnam Maritime Administration shall organize the establishment or amendment of the dredging area catalogue based on the information specified in Clause 2, Article 4 of this Circular and the following information:

a) Name of location, technical specifications, design standards of the dredging area;

b) Estimated volume of recovered products, types of recovered products, implementation period;

b) Estimated investment preparation costs and project implementation costs.

2. The dredging area catalogue must contain the main contents as prescribed in Clause 3, Article 26 of Decree No. 159/2018/NĐ-CP.

3. Approval Procedure for the Dredging Area Catalogue

a) The Vietnam Maritime Administration shall compile and submit the dredging area catalogue to the Ministry of Transport before June 15 each year;

b) The Ministry of Transport shall organize the solicitation of opinions from the People's Committee of the province or city where the dredging area is located (if necessary) before July 1 each year;

c) The Ministry of Transport shall review and approve the dredging area catalogue.

4. The publication of the dredging area catalogue shall be carried out in accordance with Article 27 of Decree No. 159/2018/NĐ-CP.

Article 27. Investment Preparation Costs

Based on the dredging area list approved by the Ministry of Transport, the Vietnam Maritime Administration shall establish investment preparation costs including the costs specified in points a, b, and c, Clause 1, Article 25 of Decree No. 159/2018/NĐ-CP, to be submitted to the Ministry of Transport for review, examination, and consolidation of investment preparation costs into the annual maintenance plan for maritime works.

Article 28. Essential Contents of the Project Contract

The socialized dredging project contract in port waters shall be implemented according to the provisions of Article 35 of Decree No. 159/2018/NĐ-CP and the guidelines of the Ministry of Construction regarding construction contracts, in addition to including the following specific contents:

1. Information about the parties to the contract

Party A: The competent state agency as stipulated in Article 24 of Decree No. 159/2018/NĐ-CP.

Party B: Investor

Information about the parties includes: information about the legal representative, position, address, telephone number, bank account number, fax number, tax code of each party participating in the contract.

2. Objectives and location of the project implementation

a) Description of the project objectives;

b) Description of the project implementation location.

3. Time and progress of contract implementation

a) The contract implementation period includes land clearance time, commencement date, and progress of each component and area within the project, with completion times for each component and area detailed in an annex specifying the progress and time for each component and area;

b) Provisions for extension or shortening of the term under certain circumstances and conditions.

4. Scale and construction methods

a) Description of the project scale (components, standards, volume, scope, construction equipment, performance of construction equipment, monitoring equipment...);

b) Construction measures, construction sequence, construction plan.

5. Contract price including the following contents:

a) Dredging implementation cost (including the cost of compensation for state work as stipulated in points a, b, and c, Clause 1, Article 25 of Decree No. 159/2018/NĐ-CP; land clearance and compensation cost);

b) Value of recovered products;

c) Payment value of the difference between the dredging implementation cost and the value of recovered products;

d) Adjustment of dredging cost, value of recovered products, and payment value of the difference.

6. Handover of construction site

The Vietnam Maritime Administration shall organize the handover of the construction site to the investor before the start of dredging construction.

7. Technical requirements, quality of project construction, acceptance, and handover

a) Technical and quality requirements for project construction;

b) Acceptance conditions, acceptance basis, acceptance team composition;

c) Acceptance and handover documents.

8. Transfer and assignment of the project

The investor is not permitted to transfer or assign the project.

9. Prior to signing the construction contract, Party B must comply with the following regulations:

a) Issue a tendering regulation for consultants, suppliers, contractors, and other contractors to ensure fairness, transparency, and economic efficiency throughout the project implementation process;

b) Submit a list of contractors along with their capacity documents to Party A for approval;

c) Party B shall be responsible to Party A for the progress, quality, labor safety, environmental protection, and errors of its own and the contractors' work;

d) Party B shall not allocate contract work to contractors beyond the ratio specified in the tender documents for selecting investors and relevant laws.

10. Guarantee for contract execution

a) Before the contract becomes effective, Party B must submit a guarantee for contract execution to Party A, with the guarantee amount ranging from 01% to 03% of the total investment value of the project. The form of guarantee can be chosen among advance deposit, escrow, or bank or financial institution letter of guarantee in Vietnam.

If Party B is a joint venture, each member must submit a guarantee for contract execution to Party A, corresponding to the value of the contract they undertake. If the joint venture agrees that the lead investor will submit the guarantee for contract execution, the lead investor will submit the guarantee to Party A, and each member will submit a guarantee for contract execution to the lead investor corresponding to the value of the contract they undertake.

The guarantee for contract execution must have value and remain valid until Party B has completed the construction and project completion corresponding to the signed contract, which has been accepted by Party A. If the terms of the guarantee specify an expiration date and Party B has not fulfilled all contractual obligations ten days before the expiration date, Party B must extend the value of the guarantee until the work is completed and all errors are corrected.

Party B will not be entitled to reclaim the guarantee for contract execution if it refuses to execute an effective contract or in other cases agreed upon by both parties. Party A must refund Party B's guarantee for contract execution when Party B has completed all tasks according to the contract.

11. Rights and Obligations of Party A:

a) Organize the handover of boundary markers and construction sites for the works to Party B for construction purposes.

b) Organize inspection and supervision of the project implementation process in accordance with current laws.

c) Guide the investor to select independent supervisory units meeting the required conditions to supervise the project implementation process in accordance with construction management regulations and current laws.

d) Organize inspection, supervision, and evaluation of the investor's compliance with obligations regarding project scale, technical standards, quality, progress, environmental protection, fire prevention, and firefighting.

đ) Acceptance completion, handover of the project for use, and receipt of the project transferred by Party B.

e) Support Party B in contacting local authorities to resolve any arising issues (if any).

g) Consider reasonable proposals from Party B regarding the total investment capital, technical design, and other conditions to ensure the effectiveness of the Project and report to the competent authority for decision-making.

h) Other rights and obligations as prescribed by law.

12. Rights and Obligations of Party B:

a) Complete all procedures related to resources, environment, fire prevention and extinguishing, and other relevant procedures as required by law.

b) Prepare and submit for approval the Traffic Safety Assurance Plan in accordance with Article 6 of Decree No. 159/2018/NĐ-CP.

c) Select and sign a contract with an independent consulting supervision unit having the necessary capacity (at Party B's expense) after obtaining Party A's opinion to supervise the implementation process of the project, while conducting acceptance and settlement of accounts according to regulations on construction project management and current laws.

d) Organize the acceptance and transfer of boundary markers and construction sites for dredging.

đ) Organize management or select and enter into contracts with independent consulting units having the necessary capacity (at Party B's expense) to manage construction works, conduct regular surveys and measurements, and simultaneously carry out acceptance and handover of the project for use, and settlement of accounts, in accordance with regulations on construction project management and current laws.

e) Implement the project strictly in accordance with the contents of the Feasibility Study Report, Construction Design Drawings approved, and this Contract.

g) Fully comply with environmental protection, fire prevention and extinguishing, and maritime safety assurance plans during construction. Bear full responsibility for equipment and labor safety during the implementation of the project.

h) Fully comply with tax, fee, and financial obligations as prescribed by law.

i) Ensure the fulfillment of the Contract in accordance with Clause 10 of this Article.

k) Conduct periodic surveys and measurements of the project implementation results (based on the detailed construction schedule to specify the periodic survey and measurement time) with the participation of representatives from the Ministry of Transport, Vietnam Maritime Administration, Regional Maritime Port Authority, and other relevant agencies selected by the Vietnam Maritime Administration. After completing the periodic survey and measurement data, Party B must immediately send it to the competent authority to announce the maritime notice in accordance with Decree No. 58/2017/NĐ-CP dated May 10, 2017 of the Government.

l) Report weekly to the Regional Maritime Port Authority and monthly to the Vietnam Maritime Administration on the progress and results of the Project, accompanied by copies of the construction diary (for each week reported). The construction diary must be recorded according to the model specified in Appendix I issued together with this Circular. The supervising consultant is responsible for checking and urging the contractor to record the construction diary according to the model specified in Appendix I issued together with this Circular.

m) Require the supervising consultant to report monthly on the results of the Project implementation by the investor and the supervising consultant according to the model specified in Appendix II issued together with this Circular, accompanied by copies of the construction diary (for the reporting week) to the Regional Maritime Port Authority and the Vietnam Maritime Administration.

n) Other rights and obligations as prescribed by law.

13. Contract Violation Penalties

            a) If Party A breaches any clause of the contract leading to the premature termination of the contract, Party A shall be responsible for compensating Party B for reasonable costs incurred up to the date of contract termination, but not exceeding 3% (three percent) of the dredging expenses. The compensation amount will be reported by Party A to the competent authority for approval and payment to Party B.

            b) If Party B delays the project schedule (specific details based on each project), this amount will be deducted from the Performance Guarantee, and if insufficient, the investor must make up the difference.

            c) If Party B breaches any clause of the contract causing direct impact on the project's progress or quality, or due to Party B's fault leading to the premature termination of the contract (except for force majeure as stipulated in this Contract), Party B shall be subject to contract penalties (specific details based on each project), which will be deducted from the Performance Guarantee, and if insufficient, the investor must make up the difference.

            14. Termination of the Contract

            a) Terminate on the expiration date of the contract if there is no mutual agreement and approval for extension, or when Party B completes the project and transfers the project to Party A (whichever occurs first).

         b) Party A has the right to terminate the contract prematurely if: Party B fails to provide the performance guarantee; Party B abandons the project or fails to fulfill contractual obligations; Party B does not have a valid reason and continuously fails to perform work for 15 consecutive days; Party B subcontracts the entire project or transfers the contract without Party A's consent; Party B goes bankrupt, defaults, or has its business registration revoked, or is under asset management.

         c) Party B has the right to terminate the contract prematurely if: Party A fails to fulfill its contractual obligations; The suspension of the project due to Party A's fault or government regulations exceeds 45 days.

d) In the case of terminating the contract before the expiration date, the party requesting termination must notify the other party about the termination at least 10 days prior and proceed with the termination procedures, except in cases where one party is declared bankrupt or insolvent, has its business registration revoked, or is under asset management, in which cases immediate termination may be carried out.

đ) The termination of the contract shall not affect or release either party from any debt, obligation, or liability arising or occurring prior to the date of termination.

15. Settlement of the Contract

a) After the Completion Certificate for all work contents as stipulated in the contract signed by both parties is completed, Party B will submit to Party A the settlement dossier of the contract including: the Completion Certificate for all works within the scope of the contract; the calculation table of the contract settlement value (referred to as A-B settlement), specifying the actual dredging costs, the value of recovered products, and the contract payment value; completion files, construction project progress logs; other documents agreed upon in the contract (if any).

b) In the event that there is a change in the volume of dredging between the completion certificate and the volume specified in the contract, the financial plan in the Feasibility Study Report shall be used to calculate the adjustment of the contract payment value, and this must be approved by the Ministry of Transport before payment.

16. Liquidation of the Contract

a) The contract shall be liquidated in the following circumstances: both parties have fulfilled their obligations under the signed contract; the contract is terminated (cancelled) according to the provisions of Clause 14 of this Article.

b) The liquidation of the contract must be completed within thirty days from the date when the parties involved in the contract fulfill their obligations under the contract or the contract is terminated according to the provisions of Clause 13 of this Article. Except in cases where Party A or Party B is declared bankrupt, insolvent, or has its business registration revoked, the contract automatically becomes void without the need for liquidation.

17. When one party falls into force majeure, it must notify the other party in writing as soon as possible and be exempted from liability caused by such force majeure.

18. Documents attached to the contract

a) The documents attached to the contract are an inseparable part of the contract, including: the tender award notice or designation notice; specific conditions of the contract; general conditions of the contract; the tender invitation or request document of Party A; design drawings and technical instructions; tender submission or proposal document of Party B; contract negotiation minutes, contract amendment and supplement documents; contract appendices; other related documents.

b) Priority order of application of documents attached to the contract

The priority order of application of documents attached to the contract is agreed upon by the parties. If the parties do not agree, the order specified in point a of this clause shall apply.

19. Dispute Resolution

a) The contract shall be governed and interpreted according to Vietnamese law;

b) During the performance of the contract, if any issues arise, both parties must actively cooperate and prioritize resolving disputes through negotiation within thirty days from the date of dispute occurrence;

c) In the event that both parties cannot reach an agreement through negotiation, they shall report to the approving authority for the project to consider. If still unresolved, the dispute shall be resolved by arbitration at the Vietnam International Arbitration Center.

Chapter IV

IMPLEMENTATION

Article 29. Effective Date

1. This Circular takes effect from November 1, 2019.

2. The maintenance dredging of maritime channels on a fixed standard basis will be implemented starting from 2020.

3. The Circular No. 25/2013/TT-BGTVT dated August 29, 2013 of the Minister of the Ministry of Transport regarding the procedures and formalities for implementing dredging of maritime channels, areas, and waters in port waters combined with product recovery without using state budget and state management over maritime activities for mineral exploration and exploitation in port waters and maritime channels, and the Circular No. 28/2015/TT-BGTVT dated June 30, 2015 of the Minister of the Ministry of Transport amending and supplementing certain articles of Circular No. 25/2013/TT-BGTVT dated August 29, 2013 of the Minister of the Ministry of Transport are hereby abolished.

Article 30. Implementation

The Director of the Office of the Ministry, the Inspector General of the Ministry, the Heads of Departments, the Director of the Vietnam Maritime Administration, and relevant agencies, organizations, and individuals are responsible for implementing this Circular./.