Circular No. 39/1999/TT-BTC guides the issuance and payment of additional construction works beyond the plan for the years 1996-1997.

CIRCULAR

OF THE MINISTRY OF FINANCE NUMBER 39/1999/TT-BTC ON APRIL 13, 1999
GUIDELINES FOR ISSUING AND PAYING EXCESS VOLUME
OF BASIC CONSTRUCTION IN 1996-1997     

Pursuant to Decree No. 42/CP dated July 16, 1996 of the Government on the issuance of the Investment and Construction Management Regulation and other guiding documents issued by the State for implementing Decree No. 42/CP;

Pursuant to Decision No.  Decision No. 224/QĐ-TTg dated March 23, 1999 of the Prime Minister on payment of excess construction volume in 1996-1997;

Pursuant to Circular No. 1888 BKH/TH dated March 26, 1999 of the Ministry of Planning and Investment  regarding notification of payment  of excess investment construction volume  1996 - 1997;

The Ministry of Finance guides the issuance and payment of excess investment construction volume in 1996-1997  as follows:

I. CONDITIONS FOR ISSUING FUNDS FOR PAYMENT:

- Projects and works funded from the state budget for basic construction (hereinafter referred to as "BC") that have been implemented beyond the plan for 1996-1997 and have been notified of the funding index for payment at Circular No. 1888 BKH/TH dated March 26, 1999 of the Ministry of Planning and Investment.

- The excess volume of projects and works mentioned above must be within the total approved budget estimate and total investment cost, completed and accepted before December 31, 1997 but not yet paid for.

- Full payment vouchers in accordance with current regulations.

II. PRINCIPLES FOR ISSUING FUNDS FOR PAYMENT:

1. For projects and works managed centrally, the Ministry of Finance will transfer funds through the General Department of Investment Development to issue and pay for the projects and works.

For projects and works managed locally, the Ministry of Finance will provide targeted grants to local budgets, which the Provincial Departments of Finance and Prices will transfer sufficient funds to the Investment Development Cục and Chi cục to issue and pay for the projects and works.

2. The maximum amount of funds issued for payment for projects and works shall not exceed the funding index announced by the Ministry of Planning and Investment according to the following principles:

- Projects and works that have been completed and put into use, and have been approved by the competent authority for final settlement, will be issued and paid 100% of the announced funding within the approved settlement limit.

- Projects and works that have been completed and put into use but have not yet been approved for final settlement can only be paid up to 95% of the announced funding. The Investment Development Cục and Chi cục will temporarily retain 5%, which will be paid out once the final settlement is approved by the competent authority.

- Projects and works carried over to 1999 and subsequent years will be issued and paid 100% of the announced funding.

If contractors still owe the State Treasury (taxes) or banks, the funds allocated for project and work payments to contractors must first be used to settle these debts. The remaining funds will then be paid to the beneficiary units.

3. In cases where the actual value of the volume to be paid is lower than the announced funding, funds will be issued and paid based on the actual value. If the actual value exceeds the announced funding, funds will only be issued and paid up to the announced funding level.

4. The deadline for completing payments is June 30, 1999. hạn chót thanh toán là ngày 30 tháng 6 năm 1999.

III. ISSUANCE AND PAYMENT:

1. Notification of Funding Index for Payment:

- For centrally managed projects and works: Based on the funding index for excess volume announced by the Ministry of Planning and Investment, the General Department of Investment Development will notify the list and funding amounts of central projects in the area for the Investment Development Cục and Chi cục to base their issuance and payment on.

- For locally managed projects and works: Based on the list and funding amounts announced by the Ministry of Planning and Investment, the People's Committees of provinces and centrally-administered cities will notify the Investment Development Cục and Chi cục to base their issuance and payment on.

2. Payment Documents:

The project owner must prepare complete files to send to the Investment Development Cục and Chi cục (where the Project Management Board has an account) to obtain issuance and payment, including:

- Acceptance records of the excess volume of completed BC works in 1996 and 1997 (accepted before December 31, 1997).

- Detailed calculation table of the volume value.

- Payment request form accompanied by a payment authorization.

- A letter from the contractor requesting the Investment Development Cục and Chi cục to pay the bank the amount owed by the contractor (for contractors who owe the bank) or to process payment to the State Treasury (for contractors who owe the State Treasury).

3. Issuance and Payment:

The Investment Development Cục and Chi cục (where the Project Management Board has an account) are responsible for reviewing and issuing funds for payment for projects and works within the assigned total funding and the aforementioned principles.

- For contractors who owe the bank or the State Treasury: The Investment Development Cục and Chi cục will review the amount owed by the contractor to the bank or the State Treasury at the time of payment, and based on the reviewed payment file, they will process issuance and payment of funds according to the method: The Investment Development Cục and Chi cục will issue funds to the project owner, who will then pay the contractor, while simultaneously paying the bank the amount owed by the contractor or processing payment to the State Treasury (in the case of contractors who owe the State Treasury).

- The remaining funds after repaying the bank and paying the State Treasury will then be paid to the beneficiary unit.

IV. RESPONSIBILITIES OF RELATED AUTHORITIES:

1. After receiving the funding index for excess volume in 1996-1997 decided by the Prime Minister, ministries, sectors, and provincial people's committees under the central government must inform the project owners and instruct them to promptly complete the payment files and cooperate with the Investment Development authorities to implement the issuance and payment of funds.

2. The project owner and their superior authority are responsible to the State for the value of the excess volume proposed for funding and payment, and are responsible for settling this funding into the final settlement of completed works and projects and consolidating it into the 1999 budget settlement of the ministry or locality.

3. The Investment Development Department and Provincial Investment Development Branches under centrally administered cities must strictly monitor and ensure timely disbursement of funds according to the State regulations, and aggregate the amount of funds disbursed for the excess volume beyond the plan into the 1999 investment capital settlement report (in accordance with the format prescribed by the General Department of Investment Development).

On July 5, 1999, the Investment Development Department and Provincial Investment Development Branches shall report on the situation of fund disbursement for the excess volume beyond the plan to the General Department of Investment Development for consolidation and reporting to the Ministry of Finance and the Government (in accordance with the attached form).

4. Tax authorities (General Department of Taxation, Provincial Tax Departments under centrally administered cities) are responsible for coordinating and providing the tax arrears of contractors to the investment development agencies, urging contractors to promptly settle outstanding taxes into the State budget.

VI. IMPLEMENTATION PROVISIONS:

- This Circular applies to the settlement of the excess construction volume beyond the plan for the years 1996-1997 pursuant to Decision No. 224/QĐ-TTg dated March 23, 1999 of the Prime Minister and takes effect from the date of issuance.

- In the course of implementation, if there are any difficulties, the relevant ministries, sectors, and People's Committees of centrally administered provinces and cities are requested to promptly reflect them to the Ministry of Finance for research and resolution.

General Department of Investment Development

Investment Development Department, Branch...

Number:

 REPORT ON THE SITUATION OF DISBURSEMENT AND SETTLEMENT OF EXCESS VOLUME 1996-1997

MONTH    /1999 

Unit: million dong

* Note: Column (3) is based on the notified capital amount in Document No. 1888 BKH/TH dated March 26, 1999 of the Ministry of Planning and Investment.

Place of Receipt:                                                                                                                                   ..., day... month... year 1999

* General Department of Investment Development                                                                                                                             Director of the Investment Development Department

* To be filed:                                                                                                                                                    (Signatures, stamp)