Circular No. 39/2002/TT-BTC guides the management and settlement of state budget capital and state credit investment development capital for the construction of residential clusters and flood-resistant lines in the Mekong Delta.

CIRCULAR

Guidelines for managing and settling state budget capital and state development credit capital for constructing flood-resilient residential clusters and lines in the Mekong Delta region

 development of State investment in constructing flood-resisting residential clusters and corridors in the Mekong Delta region

 Mekong Delta

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Pursuant to Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government on the issuance of the Investment Management and Construction Regulation, and Decree No. 12/2000/NĐ-CP dated May 5, 2000 of the Government amending and supplementing certain provisions of the Investment Management and Construction Regulation issued together with Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government;

Pursuant to Decree No. 43/1999/NĐ-CP dated June 29, 1999 of the Government on State Investment Credit for Development;

Pursuant to Decision No. 173/2001/QĐ-TTg dated November 6, 2001 on economic and social development in the Mekong Delta region for the period 2001-2005, Decision No. 1548/QĐ-TTg dated December 5, 2001 on investment in flood-resilient land construction for residential clusters in the Mekong Delta region in 2002, and other decisions of the Prime Minister on investment in residential clusters in the Mekong Delta region;

The Ministry of Finance guides the management and settlement of state budget capital, state development credit capital, and other sources of mobilization for constructing residential clusters in the Mekong Delta region in seven provinces including An Giang, Dong Thap, Long An, Vinh Long, Kien Giang, Tien Giang, and Can Tho as follows:

Part 1:

GENERAL PROVISIONS

1. The Circular applies to projects and construction works of residential clusters in the Mekong Delta region in the aforementioned seven provinces, including land raising (construction of housing for residents and infrastructure facilities) and investment in infrastructure facilities (referred to collectively as residential cluster projects and construction works).

2. Residential cluster projects and construction works are decided upon for investment using state budget capital (NSNN) and state development credit capital (ĐTPT).

State budget capital: includes central government budget capital (NSTW) allocated with specific purposes to localities and local government budget capital (sources included in the annual local government budget plan (NSĐP) and other mobilized sources).

State development credit capital from the Development Support Fund (HTPT) is transferred to the provincial budget.

3. Provincial People's Committees (UBND) direct the proper use of all sources of capital (state budget capital, state development credit capital) invested in residential cluster projects and construction works, and shall not divert them to other purposes.

4. Residential cluster projects and construction works that have been approved by competent authorities for planning do not need to prepare and submit preliminary feasibility studies, feasibility reports, but only need to prepare and submit Technical Design-General Budget Estimates (TKKT-TDT), and are permitted to designate contractors. The management and settlement of investment capital for residential cluster projects and construction works shall be carried out according to current regulations of the State and the provisions of this document.

5. Project Management Boards (QLDA) are responsible for managing investment capital for the construction of residential cluster projects and construction works from the stage of preparing and submitting Technical Design-General Budget Estimates (TKKT-TDT), implementing investments, and finalizing investment capital for operation.

6. Settlement of investment capital for residential cluster projects and construction works shall be conducted at the National Treasury (KBNN).

Part II:

SPECIFIC PROVISIONS

I/ ON ORGANIZING LOANS AND REPAYING THE DEVELOPMENT SUPPORT FUND (HTPT):

1. Based on the annual loan amount planned by the State regarding state development credit capital for investing in flood-resilient residential clusters in the Mekong Delta region, the Provincial People's Committee authorizes the Department of Finance-Price to sign Loan Agreements, manage and use loan funds, and allocate repayment sources.

2. The loan interest rate is zero (0%), with a maximum loan term of ten years from the date of receiving the loan until full repayment, including a grace period of five years during which no repayment is required. Starting from the sixth year from the date of loan withdrawal, the Provincial People's Committee is responsible for allocating funds from the local government budget (NSĐP) to repay the Development Support Fund (HTPT), ensuring full repayment by the end of the loan term.

4. Method of transferring loan funds: Based on signed Loan Agreements, project implementation progress, the Department of Finance-Price requests the Development Support Fund (HTPT) to transfer funds to the provincial budget.

5. After completing the land raising construction for housing, the Provincial People's Committee issues decisions and organizes the allocation of residential land to individual households, prioritizing policy beneficiaries and poor households, signing contracts with each household regarding their debt obligations, and is responsible for collecting loan repayments from households receiving land to repay the Development Support Fund (HTPT).

6. The Development Support Fund (HTPT) receives a management fee of 1% per annum on the outstanding loan balance.

II/ IMPLEMENTATION OF INVESTMENT CAPITAL FOR RESIDENTIAL CLUSTER PROJECTS AND CONSTRUCTION WORKS:

1. Implementation Plan and Capital Transfer:

1.1- Based on the investment capital plan assigned by the Prime Minister (including state development credit capital, central government budget capital allocated with specific purposes to the local government budget (NSĐP)), the local government budget capital allocation, technical design-general budget estimates (TKKT-TDT) of residential cluster projects and construction works approved by competent authorities, and the progress of each project annually (starting from 2002), the Provincial People's Committees assign investment capital plans to projects (according to form number 1a), while simultaneously compiling the investment capital plan by source and sending it to the Ministry of Finance (according to form number 1b) as the basis for transferring funds to the local government budget (NSĐP).

1.2- Based on the total amount of central government budget capital allocated with specific purposes for the project, the annual plan, and quarterly reports from the Provincial People's Committee on the progress and settlement of capital for residential cluster projects and construction works, central government budget capital allocated with specific purposes is supplemented to the local government budget (NSĐP) quarterly.

1.3- Based on the decision assigning the plan by the Provincial People's Committee, the Department of Finance-Price notifies detailed capital plans for each project and construction work to the provincial National Treasury (KBNN), and simultaneously transfers capital to the KBNN for settlement control according to regulations (according to capital plan notification form number 02).

1.4- The amount of central government budget capital allocated with specific purposes for the provinces is the capital assigned by the Prime Minister for investing in flood-resilient residential clusters in the Mekong Delta region. This capital is used for residential cluster projects and construction works until completion and commissioning, and cannot be reallocated to other investment objectives. If unused at the end of the plan year, it can be carried over to the next year.

2. Issuance and Settlement:

2.1 - Opening an account: The Construction Management Boards assigned by the Provincial People's Committee to manage investment capital for projects and community infrastructure construction projects shall open accounts at the State Treasury where it is convenient for payment settlement and transaction monitoring.

2.2 - Initial documentation submission: The Construction Management Boards must submit the following initial documents to the State Treasury where the account is opened:

- Approved Detailed Technical Estimate (TKKT-TDT) by the competent authority.

- Tender designation permit document (as required by the work).

- Economic contract between the Construction Management Board and the contractor.

- Detailed volume plan of the project or construction within the year.

2.3 - Advance payments and recovery of advance payments:

a/ Advance payments and recovery of advance payments for construction works:

- Construction contracts may be advanced by 50% of the contract value when there is a tender designation permit document from the competent authority and an economic contract between the Construction Management Board and the contractor.

- Advance payments will be recovered upon completion payment. Each recovery amount equals the completed volume payment multiplied by (X) the advance payment ratio. All advance payments will be fully recovered upon completion of the contract value payment.

b/ Advance payments and recovery of advance payments for equipment:

- Equipment contracts may be advanced when there is a tender designation permit document from the competent authority and an economic contract. The advance payment level is stipulated in the signed contract.

- Advance payments for equipment procurement will be recovered with each completed equipment volume payment.

c/ Advance payments and recovery of advance payments for other costs:

- After signing, consultancy contracts may be advanced by 50% of the contract value; advance payments will be recovered immediately upon completion payment. Each recovery amount equals the completed volume payment multiplied by (X) the advance payment ratio.

- Advance payments for land clearance compensation costs can be made when there is a compensation plan and approved cost estimate; other costs such as Construction Management Board operating costs must have approved estimates. The advance payment level is based on the necessary requirements of the work. Advance payments for land clearance compensation and other project costs will be recovered once upon completion payment of the respective work.

2.4 - Payment for completed volumes:

a/ Payment for completed construction works:

- Completed construction works volume payment is the actual monthly executed volume that has been accepted according to the investment plan, design, and detailed budget approved in accordance with state norms and unit prices.

- Payment documentation includes the detailed budget approval document, volume acceptance record, price list, and related documents.

- Based on the Construction Management Board's request, the State Treasury responsible for the project payment must promptly control and pay the capital and recover advance payments as prescribed.

b/ Payment for completed equipment volumes:

- Completed equipment volume payment is the quantity of equipment stored in the warehouse (for non-installation equipment) or installed and accepted (for installation equipment).

- Payment documentation includes the economic contract, invoice with warehouse release form (for domestically purchased equipment) or import documents (for imported equipment), warehouse receipt (for non-installation equipment), installation volume acceptance record (for installation equipment), transportation, insurance, storage tax, price list, and other related documents.

- Based on the Construction Management Board's request, the State Treasury responsible for the project payment must promptly control and pay the capital and recover advance payments as prescribed.

c/ Payment for other costs:

- Consulting services: completed consulting service volume is considered finished and payable based on the accepted executed volume consistent with the economic contract. Payment documentation includes the tender designation decision, economic contract, volume acceptance record, payment vouchers.

- Other costs: Land clearance compensation costs must have a plan and approved compensation estimate, confirmed volume of compensation implemented; Construction Management Board costs must have an estimate, expense statement, and related documents; costs for design preparation and review must have a contract, acceptance record...

- Based on the Construction Management Board's request, the State Treasury responsible for the project payment must promptly control and pay the capital and recover advance payments (if applicable) as prescribed.

d/ The payment amount for each project component cannot exceed the budget estimate, and the total payment amount for the project cannot exceed the approved total budget. The annual payment amount for the project (including both advance payments and completed volume payments) cannot exceed the allocated investment capital plan.

3. Accounting, periodic reporting, and final settlement:

3.1 - Budget accounting:

- Investment capital for the project (state budget capital, state development credit capital) shall be accounted for in accordance with current regulations; simultaneously, separate tracking is conducted to prepare reports to be submitted to competent authorities.

- Accounting for borrowing and repayment of borrowing funds from the HTPT Fund:

+ When receiving loan funds transferred by the HTPT Fund branch to the provincial budget, the Department of Finance-Price shall account for it as state budget revenue (Chapter 160B Type 10 Item 05 Subitem 086 Item 10).

+ When repaying loans using state budget funds, account for state budget expenditure (Chapter 160B Type 10 Item 05 Subitem 158 Item 10).

+ When residents repay loan payments, account for state budget revenue (Chapter 160B Type 10 Item 10 Subitem 062 Item 02).

3.2 - Reporting:

- Monthly on the 20th day, the first 10 days of the first month of each quarter, and at the end of the planning year, the Construction Management Board is responsible for reporting the implementation and capital payment status of the project to the Provincial People's Committee for consolidation and submission to the Ministry of Finance, Ministry of Construction, and consolidated report to the Prime Minister.

- Monthly on the 20th day and the first 10 days of the first month of each quarter, the provincial State Treasury reports to the Department of Finance-Price and the Central State Treasury on the capital payment status of the project. At the end of the planning year, the provincial State Treasury settles the use of investment capital with the Department of Finance-Price for consolidation into the state budget expenditure settlement according to current regulations.

3.3 - Final settlement of completed investment capital: The final settlement is carried out according to the current final settlement system for investment capital.

3.4- At the end of the plan year, the branch of the HTPT Fund must compile the situation of loan transfers and debt collections to report to the HTPT Fund, and simultaneously send to the People's Committee of the province. The HTPT Fund and the People's Committee of the province must compile the report to submit to the Ministry of Finance and the Ministry of Construction for reporting to the Prime Minister.

III. RESPONSIBILITIES OF THE RELATED AUTHORITIES:

1- The People's Committees of the provinces are responsible for:

- Managing investment and construction of cluster community projects according to the current regulations and guidance provided in this Circular.

- Borrowing and repaying state credit capital for investment and development; organizing land allocation and capital repayment to each household, recovering each household's debt to repay the HTPT Fund.

2- The State Treasury is responsible for organizing the control and payment of capital for projects and reporting on the capital payment situation as prescribed.

3- The HTPT Fund is responsible for signing loan contracts, transferring capital, and collecting debts according to signed contracts; not conducting project appraisals.

Part 3:

IMPLEMENTING PROVISIONS

This Circular takes effect from the date of issuance.

During implementation, if there are difficulties, units are requested to reflect them to the Ministry of Finance for timely review and amendment.