Circular No. 41/2013/TT-BTC guiding the implementation of certain provisions of Decree No. 67/2012/NĐ-CP dated September 10, 2012 amending and supplementing some articles of Decree No. 143/2003/NĐ-CP dated November 28, 2003 of the Government detailing the implementation of certain provisions of the Ordinance on Exploitation and Protection of Irrigation Works.

CIRCULAR

Guidelines for implementing certain provisions of Decree No. 67/2012/ND-CP dated September 10, 2012, amending and supplementing some articles of Decree No. 143/2003/ND-CP dated November 28, 2003 of the Government detailing the implementation of certain provisions of the Ordinance on Exploitation and Protection of Irrigation Works.

Decree No. 67/2012/ND-CP dated September 10, 2012, amending and supplementing some articles of Decree No. 143/2003/ND-CP dated November 28, 2003 of the Government detailing the implementation of certain provisions of the Ordinance on Exploitation and Protection of Irrigation Works.

The Ordinance on Exploitation and Protection of Irrigation Works.

 of the Ordinance on Exploitation and Protection of Irrigation Works.

__________________

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

Pursuant to Decree No. 67/2012/ND-CP dated September 10, 2012 of the Government amending and supplementing some articles of Decree No. 143/2003/ND-CP dated November 28, 2003 of the Government detailing the implementation of certain provisions of the Ordinance on Exploitation and Protection of Irrigation Works (hereinafter referred to as Decree No. 67/2012/ND-CP);

The Minister of Finance hereby issues this Circular amending and supplementing certain Articles of Circular No. 133/2015/TT-BTC dated August 31, 2015, issued by the Minister of Finance guiding the financial management mechanism for the Vietnam Chamber of Commerce and Industry (hereinafter referred to as Circular No. 133/2015/TT-BTC).

The Ministry of Finance issues this Circular guiding the implementation of certain provisions of Decree No. 67/2012/ND-CP dated September 10, 2012, amending and supplementing some articles of Decree No. 143/2003/ND-CP dated November 28, 2003 of the Government detailing the implementation of certain provisions of the Ordinance on Exploitation and Protection of Irrigation Works.

PART I

WATER CHARGES AND WATER FEES

Article 1. Water charges and water fees

1. The levels of water charges and water fees for irrigation works are prescribed in Clause 1 and 2, Article 19 of Decree No. 143/2003/ND-CP which have been amended and supplemented in Clause 1, Article 1 of Decree No. 67/2012/ND-CP dated September 10, 2012.

Provincial People's Committees shall decide specific levels of collection based on the approved provincial irrigation system planning, specific conditions of each irrigation work, and related activities of each irrigation system for the objects using water specified in Item 5, Item 7, and Item 8 of the Water Fee Collection Schedule at Point d, Clause 1, Article 19 of Decree No. 143/2003/ND-CP which have been amended in Clause 1, Article 1 of Decree No. 67/2012/ND-CP.

Provincial People's Committees shall base on the approved provincial irrigation system planning, the structure of the irrigation system, and guidance from the Ministry of Agriculture and Rural Development to stipulate the position of the head canal gate and irrigation and drainage methods for cooperative organizations using water. The position of the head canal gate of cooperative organizations using water serves as the basis for determining the scope of irrigation charges payable according to state regulations and internal irrigation service fees, while also serving as the basis for delineating management responsibilities and operational, maintenance, and repair costs of irrigation works between management organizations operating irrigation works and cooperative organizations using water.

2. Setting irrigation charge levels: Provincial People's Committees shall base on the approved provincial irrigation system planning, the structure of the irrigation system, irrigation and drainage procedures and methods, and the area of cultivated land being irrigated and drained to issue decisions on the collection levels of irrigation charges for each area and irrigation method as the basis for preparing budgets for subsidizing exempted irrigation charges.

3. Based on local socio-economic conditions and characteristics of each irrigation system, Provincial People's Committees shall stipulate the ceiling level of internal irrigation service fees charged by cooperative organizations using water from the head canal gate to the field surface (field canals) agreed upon by cooperative organizations using water and users (referred to as internal irrigation service fees). The internal irrigation service fees charged by cooperative organizations using water shall not exceed the ceiling level set by Provincial People's Committees.

Chapter II

OBJECTS ELIGIBLE FOR EXEMPTION FROM IRRIGATION CHARGES AND

SOURCES OF FUNDS FOR SUBSIDIZING EXEMPTED IRRIGATION CHARGES

Article 2. Objects Exempt from Water Resource Fees

1. Exemption from water resource fees for the entire area of agricultural land used for research, experimental production, areas of annual crop cultivation that include at least one rice crop per year; areas for salt production.

Areas of annual crop cultivation that include at least one rice crop per year include land planned or scheduled to plant at least one rice crop per year or areas of land planned or scheduled for annual crops but actually planted with at least one rice crop per year.

2. Exemption from water resource fees for the entire area of agricultural land assigned by the State; agricultural land assigned by the State to poor households.

The determination of poor households is based on the poverty standard issued pursuant to the Prime Minister's Decision.

3. Exemption from water resource fees for the area of agricultural land within the quota allocated for agricultural land to the following subjects:

a) Households and individuals recognized by the State as having been assigned or acknowledged land for agricultural production, including inherited, donated, or transferred land.

Households and individuals engaged in agriculture include: those with permanent residence registration in the locality; those whose main source of livelihood is agricultural production, aquaculture, salt production confirmed by the People's Committee of communes, wards, towns as long-term residents in the locality without permanent residence registration; households and individuals previously engaged in non-agricultural professions and have permanent residence registration in the locality who are now unemployed; state officials, civil servants, employees, workers, and soldiers who have retired due to loss of working capacity or job restructuring and reduction of staff receiving one-time or several years' allowances living permanently in the locality; children of officials, civil servants, employees, and workers residing in the locality reaching working age but without employment.

b) Households and individuals who are members of agricultural production cooperatives that have received stable land allocation from cooperatives, state farms (or agricultural companies converted from state farms) for agricultural production in accordance with the law.

The allocation of land by cooperatives and state farms for agricultural production shall be carried out in accordance with Decree No. 135/2005/NĐ-CP dated November 8, 2005 of the Government on the allocation of agricultural land, forest land for production, and land with water surfaces for aquaculture in state farms and state forestry farms.

c) Households and individuals who are state farm members that have received stable land allocation from state farms for agricultural production in accordance with the law.

State farm members include: officials, workers, and employees currently working for state farms; households with members currently working for state farms or who have retired or are receiving benefits due to loss of working capacity and reside in the area; households directly engaged in agricultural production and aquaculture residing in the area.

d) Households and individuals engaged in agricultural production that have the right to contribute their agricultural land to establish agricultural production cooperatives in accordance with the Law on Cooperatives.

Cases not falling under the exemption from water resource fees must pay water resource fees as prescribed in Decree No. 67/2012/NĐ-CP dated September 10, 2012 of the Government.

Article 3. Scope of Exemption from Water Conservancy Fees

The scope of exemption from water conservancy fees shall be calculated from the position of the headgate of the canal of the cooperative organization using water to the main works of the water conservancy project.

Article 4. Organizations Reimbursed by the Budget for Implementing the Exemption of Water Conservancy Fees

Units performing the task of managing and operating water conservancy works constructed according to approved planning (hereinafter referred to as water management units) shall implement the task of supplying, irrigating, and draining water for areas exempted from water conservancy fees, which shall be reimbursed by the budget for implementing the exemption of water conservancy fees, including:

1. State-owned single-member limited liability companies with 100% state capital contribution, joint-stock companies, and businesses participating in the management and operation of water conservancy works that have business registration licenses in accordance with the law.

2. Public institutions assigned by the State to manage and operate water conservancy works, including: Water Management and Operation Centers, Water Conservancy Project Management Boards, Water Conservancy Project Management Stations.

3. Cooperative organizations using water: Water Management Boards, Water Path Groups, Irrigation Teams, Water Usage Associations, Water Usage Cooperatives, Agricultural Production Cooperatives, Cooperative Groups established or permitted to be established by competent authorities, or having business registration licenses, or approved by member assemblies through their operational regulations and charters.

4. Other organizations assigned by competent authorities to manage and operate water conservancy works.

Article 5. Level of Exemption from Water Conservancy Fees, Level of Reimbursement for Exempted Water Conservancy Fees

The level of exemption from water conservancy fees shall be implemented in accordance with paragraph b point 5 Clause 1 Article 19 of Decree No. 143/2003/ND-CP, amended by Clause 1 Article 1 of Decree No. 67/2012/ND-CP.

The level of reimbursement for exempted water conservancy fees shall be implemented in accordance with point a Clause 2 Article 19a of Decree No. 143/2003/ND-CP, amended by Clause 2 Article 1 of Decree No. 67/2012/ND-CP.

Article 6. Tasks of Central and Local Government Budgets level, local budget

1. Central budget

a) Ensuring 100% of the water conservancy fees exempted for central water management and operation units.

b) Supporting 100% of additional expenses for exempted water conservancy fees compared to the annual budget allocation of exempted water conservancy fees as decided by Decision No. 59/2010/QD-TTg dated September 30, 2010 of the Prime Minister on the issuance of the standard for allocating the regular budget expenditure plan of the state budget for 2011 for localities receiving supplementary balance from the central budget.

c) Supporting 50% of additional expenses for exempted water conservancy fees compared to the annual budget allocation of exempted water conservancy fees as decided by Decision No. 59/2010/QD-TTg dated September 30, 2010 of the Prime Minister on the issuance of the standard for allocating the regular budget expenditure plan of the state budget for 2011 for localities with a transfer rate to the central budget below 50%.

"1. For funding allocated in the regular expenditure budget: the process of preparing the budget, managing, using, and settling accounts for funding shall be carried out in accordance with the Law on State Budget and guiding documents thereof. Agencies and units assigned the task of conducting vocational training at the primary level and under three months for urban women must prepare detailed budgets and send them to the finance authorities at the same level. The budget must include detailed explanations of the number of female workers expected to be trained and the training costs for each profession in the planning year, along with reports on the results and effectiveness of vocational training linked to employment targets for the current year to serve as the basis for allocating the budget."

a) Ensuring the portion of exempted water conservancy fees already allocated in the annual budget as stipulated in Decision No. 59/2010/QD-TTg dated September 30, 2010 of the Prime Minister on the issuance of the standard for allocating the regular budget expenditure plan of the state budget for 2011.

b) For localities with a transfer rate to the central budget of 50% or more, the local budget shall ensure 100% of additional exempted water conservancy fees for local water management and operation units.

c) For localities with a transfer rate to the central budget below 50%, the local budget shall ensure 50% of additional exempted water conservancy fees for local water management and operation units.

Chapter III

PROCEDURES, FORMS, FILES, DECISION-MAKING AUTHORITY

 AREA OF LAND EXEMPT FROM WATER CONSERVANCY FEES.

Article 7. Procedures for confirming the objects and areas of land exempt from water resource fees

1. The water management unit shall coordinate with the People's Committee of communes, wards, towns based on the cadastral map, water supply form, irrigation, drainage, water supply, irrigation, drainage contracts between the water management unit and water users (including: People's Committee of communes, wards, towns, cooperatives, water user organizations, experimental station directors, farm directors or directly signed with households and individuals) to prepare a list of objects and areas of land for irrigation and drainage that are exempt from water resource fees according to the model specified in Appendix 1 attached to this Circular.

In cases where water users are the People's Committee of communes, wards, towns, cooperatives, water user organizations, experimental station directors, farm directors, a list of household water users must be attached to serve the monitoring of irrigated and drained areas, contract settlement, and final accounting of exempt water resource fees.

2. The People's Committee of the district where the object exempt from water resource fees resides shall inspect, review the area and confirm the exempt water resource fee area in the list prepared by the water management unit.

3. After preparing the list, the water management unit shall prepare an application for exemption from water resource fees to submit to the competent authority for consideration and decision.

4. The determination of the area exempt from water resource fees under Decree No. 67/2012/ND-CP is based on the area exempt from water resource fees approved by the Provincial People's Committee under Decree No. 115/2008/ND-CP plus the additional area reviewed and increased from the agricultural farm contracted area under Decree No. 135/2005/ND-CP dated November 8, 2005 of the Government and experimental station land, which must be completed before June 30, 2013.

5. The determination of the area exempt from water resource fees under Decree No. 67/2012/ND-CP in mountainous regions is determined according to the Prime Minister's Decision and the National Ethnic Minorities Commission's zoning decision.

Annually, if there are changes in the area of land and water bodies exempt from water resource fees, the People's Committee of provinces and centrally governed cities shall issue decisions to adjust and supplement.

Article 8. Authority to decide the area exempt from water resource fees

1. The Ministry of Agriculture and Rural Development decides the area exempt from water resource fees for irrigation, drainage, and water supply for central water management units.

2. The People's Committee of provinces and centrally governed cities decides the area exempt from water resource fees for irrigation, drainage, and water supply for local water management units.

Article 9. Documents to submit to the competent authority for deciding the area exempt from water resource fees Documents to submit to the competent authority for deciding the area exempt from water resource fees include (the documents are original copies):

1. For State-owned Limited Liability Companies for Water Works Management with 100% state capital belonging to the Ministry of Agriculture and Rural Development:

1.1. A request from State-owned Limited Liability Companies for Water Works Management with 100% state capital proposing approval of the area exempt from water resource fees;

1.2. A list of areas for irrigation, drainage, and water supply of State-owned Limited Liability Companies with 100% state capital with local water management units;

1.3. Contracts for irrigation, drainage, and water supply between State-owned Limited Liability Companies with 100% state capital and local water management units.

2. For local water management units:

2.1. A request from the Department of Agriculture and Rural Development proposing approval of the area exempt from water resource fees for each water management unit;

2.2. A list of areas for irrigation, drainage, and water supply for each water user according to the locality confirmed by the People's Committee of districts, counties, or towns;

2.3. Contracts (or ledgers) for irrigation, drainage, and water supply between water management units and water users (including: People's Committee of communes, wards, towns, cooperatives, water user organizations, experimental station directors, farm directors, or households and individuals) to prepare the list.

The list of areas for irrigation, drainage, and water supply attached to the decision of the Ministry of Agriculture and Rural Development, the People's Committee of provinces, and centrally governed cities serves as the basis for tendering, allocating plans, or placing orders for water management units; it serves as the basis for state agencies to monitor the provision of irrigation, drainage, and water supply services by water management units; it serves as the basis for preparing the budget for subsidizing exempt water resource fees for water management units.

ESTABLISH AND TRANSFER PROPOSAL.

Chapter IV

ESTABLISH, ASSIGN PROJECTIONS.

Article 10. Budget Preparation

1. Subjects for budget preparation:

Includes water management units specified in Article 4 of this Circular, specifically as follows:

a) Water management units that are state-owned limited liability companies with 100% capital contribution, public service organizations with income established by competent authorities: Prepare plans for irrigation, drainage, and water supply according to each area and method, budget for subsidies due to exemption from water resource fees, and other support costs to be reported to the competent authority for allocation plans. The budgets of these units must have detailed explanations according to each irrigation and drainage method, each rate for each area suitable to the characteristics of each unit.

For water management units under provincial management, send the budget to the Department of Agriculture and Rural Development and the Department of Finance; the Department of Finance compiles the local government budget expenditure report to the People's Committee of the province or centrally-administered city for submission to the Provincial People's Council for decision.

For central-level water management units, report to the Ministry of Agriculture and Rural Development and the Ministry of Finance; the Ministry of Finance compiles the central government budget expenditure.

b) For water management units under district management, joint-stock companies: Prepare plans for areas of irrigation, drainage, and water supply according to each method and areas exempt from water resource fees, and budget for state subsidies for exempted water resource fees to be sent to the District Finance Office. The District Finance Office takes the lead in coordinating with the District Agriculture Office to review and compile the budget report to the District People's Committee.

c) For cooperative organizations using water, public service organizations with income established by the State to manage part of the works within the watershed of the water conservancy system owned by state-owned limited liability companies with 100% capital contribution, the budget of the cooperative organization using water and the public service organization with income is sent to the state-owned limited liability company with 100% capital contribution for inclusion in the overall plan. The state budget allocates funds to the state-owned limited liability company with 100% capital contribution (including both the company and the cooperative organization using water and the public service organization with income). The state-owned limited liability company with 100% capital contribution is responsible for managing, using, and settling the allocated subsidy funds for exempted water resource fees according to current regulations.

2. Budget for subsidies due to exemption from water resource fees:

The method of preparing the budget for financial support due to exemption from water resource fees is based on the provisions of the State Budget Law and guiding documents of the State Budget Law.

Some notes when preparing the budget:

a) When preparing the budget, it must be based on the area (or m3 of water), the rate according to each irrigation and drainage method in accordance with the approved exemption from water resource fees by the People's Committee of the province or centrally-administered city.

b) The budget for subsidies due to exemption from water resource fees is a part of the financial plan of water management units. Depending on the organizational model of water management units, the financial plan is prepared according to current national regulations.

2. The training and insurance budgets shall be submitted to the superior management agency mentioned in Clause 3 of this Article for consolidation.

3.1. The District Finance Office compiles the budget for subsidies due to exemption from water resource fees of units under district management to report to the District People's Committee. The District People's Committee reviews and sends to the Department of Finance and the Department of Agriculture and Rural Development for inclusion in the local government budget.

3.2. For cooperative organizations using water, public service organizations with income managing part of the works within the watershed of the water conservancy system owned by state-owned limited liability companies with 100% capital contribution, the state-owned limited liability company with 100% capital contribution sends to the Department of Finance and the Department of Agriculture and Rural Development for inclusion in the overall compilation.

3.3. The Department of Finance leads in coordinating with the Department of Agriculture and Rural Development to compile the budget for subsidies due to exemption from water resource fees of local water management units including the budget for subsidies due to exempted water resource fees of cooperative organizations using water managed by districts. (according to the attached annexes number 2, 3, and 4 of this Circular) to report to the People's Committee of the province or centrally-administered city.. The budget for subsidies due to exemption from water resource fees is divided according to guaranteed central government budget sources, guaranteed local government budget sources, balanced local government budget sources, and additional budget sources.

a) For regions receiving full or 50% subsidies for exemptions from water resource fees from the central government, the People's Committee of the province or centrally-administered city compiles and reports to the Ministry of Finance and the Ministry of Agriculture and Rural Development to request central government support, clearly stating the total subsidy amount for exempted water resource fees, the locally-balanced budget amount according to Decision No. 59/2010/QĐ-TTg dated September 30, 2010 of the Prime Minister on the issuance of the standard allocation of regular state budget estimates for 2011, and additional support amounts according to Decree No. 67/2012/NĐ-CP.

b) For regions not receiving or partially receiving subsidies for exemptions from water resource fees from the central government, the budget for subsidies due to exempted water resource fees from the local government is compiled together in the local government budget for approval by the Provincial People's Council and simultaneously reported to the Ministry of Finance.

3.4. The Ministry of Agriculture and Rural Development compiles the budget of central-level water management units and sends it to the Ministry of Finance for overall compilation.

3.5. The Ministry of Finance compiles the budget for subsidies due to exempted water resource fees of central-level water management units and local regions into the central government budget to report to the Government for submission to the National Assembly for approval.

3.6. After the state budget is approved by the National Assembly, the Ministry of Finance allocates the subsidy levels and support levels to the Ministry of Agriculture and Rural Development and local regions.

Article 11. Allocation of Budget Estimates to Agricultural Water Management Units

1. Based on the local budget estimates approved by the Provincial People's Council and the level of financial support for water resource fees announced by the Ministry of Finance, the People's Committee of provinces and centrally-administered cities shall allocate budget estimates to agricultural water management units and exempt water resource fees to district-level budgets.

The Department of Finance shall take the lead and coordinate with the Department of Agriculture and Rural Development to compile and submit to the People's Committee of the province for allocation of exempt water resource fees to each agricultural water management unit and districts.

2. Based on the decision of the provincial People's Committee regarding financial support for exempt water resource fees, the People's Committee at the district level shall allocate budget estimates to agricultural water management units under their jurisdiction based on the proposal of the District Finance Office and the District Agriculture Office.

3. Based on the state budget estimates approved by the National Assembly and the announcement of the Ministry of Finance, the Ministry of Agriculture and Rural Development shall allocate plans to central-level agricultural water management units.

The allocation of budget estimates must be completed before December 31 of the year preceding the planning year.

Article 12. Ordering Agricultural Water Services

For agricultural water management units that provide ordered agricultural water services, the People's Committee of provinces and centrally-administered cities or authorized agencies shall sign service ordering contracts with these units in accordance with the law. The signing of service ordering contracts must be completed before December 31 of the year preceding the planning year.

In cases where a company manages and operates water conservancy works and cooperatives jointly manage a water conservancy work, if the company is responsible for generating revenue, the company shall enter into contracts with the cooperatives to manage part of the system of works managed jointly by the company and the cooperative.

Article 13. Tendering Agricultural Water Services

For agricultural water management units that participate in tendered agricultural water services, the People's Committee of provinces and centrally-administered cities or authorized agencies shall organize tenders and sign contracting contracts with these units in accordance with the law. The signing of contracting contracts must be completed before December 31 of the year preceding the planning year.

Article 14. Reporting System

1. For units allocated budget estimates

At the end of the year, the unit allocated budget estimates must report on the implementation of the budget estimate to the allocating agency and the finance department (the Ministry of Finance for central-level agricultural water management units, the Department of Finance for provincial-level agricultural water management units, and the District Finance Office for district-level units allocated budget estimates).

The report on the implementation of the budget estimate serves as the basis for settling accounts for the financial support provided to exempt water resource fees for agricultural water management units.

2. For units receiving orders

At the end of the year, the ordering agency and the unit receiving the order must prepare a settlement record for the service ordering contract. The settlement record for the service ordering contract serves as the basis for the ordering agency to settle accounts for the unit receiving the order and for settling accounts for the state budget financial support for exempt water resource fees.

3. For units receiving tenders

At the end of the year, the agency tasked with organizing the tender and the unit receiving the tender must inspect the tendered agricultural water services, prepare a settlement record for the tendering contract. The settlement record for the tendering contract serves as the basis for the tendering agency to settle accounts for the unit receiving the tender and for settling accounts for the state budget financial support for exempt water resource fees.

Chapter V

ISSUANCE, PAYMENT, SETTLEMENT OF FUNDS

SUBSIDY FOR EXEMPT WATER RESOURCE FEES

Article 15. Issuance and payment of compensation funds due to exemption from water resource fees for agricultural irrigation units subject to plan allocation

Issuance of funds exempting water resource fees for agricultural irrigation management units:

1. Based on the approved budget estimate, the agricultural irrigation management unit allocates the annual budget estimate according to the expenditure items and sends it to the financial authority as the basis for issuance. The central-level agricultural irrigation management unit sends to the Ministry of Finance, the provincial-level agricultural irrigation management unit sends to the Provincial Department of Finance, and the district-level agricultural irrigation management unit sends to the District Finance Office.

2. The issuance of funds shall be carried out in accordance with the State Budget Law, Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the State Budget Law, and related guiding documents. Specifically, as follows:

The additional compensation fund for the exemption of water resource fees from the central budget for localities and from the provincial budget for the district budget is determined as a targeted support amount.

Issuing compensation funds for the exemption of water resource fees to agricultural irrigation management units subject to plan allocation: Based on the approved state budget estimate and the budget estimate of the agricultural irrigation management unit, the financial authority issues funds to the agricultural irrigation management unit twice a year, issuing 60% of the total funds at the beginning of the first quarter and 40% of the remaining funds at the beginning of the third quarter based on the report on the implementation situation of the first six months, the forecast for the last six months, and the estimated completion of the annual plan of the agricultural irrigation management unit. The issuance is carried out by payment order.

Article 16. Issuance and payment of funds exempted from water resource fees for agricultural irrigation management units subject to ordering

Payment of funds exempted from water resource fees for agricultural irrigation management units subject to ordering is based on the ordering contract signed between the ordering agency and the receiving unit. The financial authority pays the funds to the receiving unit and implements the issuance and payment by payment order. Specifically, as follows: Immediately after the ordering contract is signed, the ordering agency temporarily advances 50% of the contract funds to the receiving unit. After receiving a report on the contract implementation reaching 60% of the contract value, the ordering agency advances an additional 40% of the contract funds, and the remaining 10% of the funds are paid after the contract is accepted and settled.

For cooperative groups using water that are managed to operate part of the works in the watershed system managed by the company, the company implements temporary advances and payments of funds to the cooperative groups using water according to the contract signed between the two parties. The level of temporary advance and payment is proportional to the level of temporary advance and payment received from the state budget.

Article 17. Issuance and payment of funds exempted from water resource fees for agricultural irrigation management units subject to tendering

Payment of funds exempted from water resource fees for agricultural irrigation management units subject to tendering is based on the tendering contract signed between the tendering organizing agency and the contractor. The financial authority pays the funds to the contractor and implements the issuance and payment by payment order. Specifically, as follows: Immediately after the tendering contract is signed, the tendering organizing agency temporarily advances 50% of the contract funds to the contractor. After receiving a report on the contract implementation with the completed volume reaching 60% of the tender value, the tendering organizing agency advances an additional 40% of the contract funds, and the remaining 10% of the funds are paid after the contract is accepted and settled.

Article 18. Settlement of Subsidy Costs for Exempt Water Conservancy Fees

Financial settlement of subsidy costs for exempt water conservancy fees shall be carried out in accordance with current regulations. Management units must have all necessary documents to serve as the basis for settlement of financial support (certified copies of original documents from the management unit): Irrigation, drainage, and water supply contracts between the management unit and water users; acceptance records for irrigated, drained, and supplied areas; contract termination records for irrigation, drainage, and water supply; acceptance records for each irrigation period; final acceptance records for irrigation, drainage, and water supply.

The district level shall settle with the provincial budget the subsidy expenses for exempt water conservancy fees in the form of targeted supplementary funding as stipulated by the State Budget Law.

For localities that receive subsidies from the central government budget, provinces and centrally-administered cities must submit financial settlement reports to the central government budget for the subsidies provided in the form of targeted supplementary funding as prescribed by the State Budget Law and related guiding documents.

Annually, the Ministry of Agriculture and Rural Development shall coordinate with the Ministry of Finance to organize the inspection and approval of subsidy amounts due to the exemption of water conservancy fees for central-level water management units. Provincial People's Committees are responsible for organizing the inspection and approval of financial settlement reports for subsidy amounts due to the exemption of water conservancy fees for local water management units as specified in Article 4 of this Circular. Such inspections and approvals shall be conducted concurrently with the annual financial report approvals of water management units. Specifically, the Department of Finance of each province shall take the lead in coordinating with the Department of Agriculture and Rural Development to inspect financial reports and submit them to the provincial People's Committee for approval. Water management units must bear responsibility for the accuracy and honesty of the reported data.

Article 19. Handling Surplus and Shortfall of Subsidy Costs for Exempt Water Conservancy Fees

1. For funds allocated based on plan distribution:

After the annual settlement has been approved by the competent authority, if the amount of funds allocated during the year exceeds the amount supported according to the settlement, the difference will be transferred to the allocation of the following year; if the allocation is less than the amount supported according to the settlement, it will be supplemented.

2. For funds allocated through bidding or ordering:

Based on the approved settlement of funds by the bidding or ordering agency, if the funds allocated in the previous year have not been fully utilized, the contractor or order recipient must return the unused portion to the state budget.

If the funds allocated in the previous year are insufficient to pay the contractors or order recipients, the shortfall will be covered from the budget estimate of the current year.

Chapter VI

IMPLEMENTATION

Article 20. Effective Date

1. This Circular takes effect from May 26, 2013, and replaces Circular No. 36/2009/TT-BTC dated February 26, 2009, issued by the Ministry of Finance regarding guidance on implementing certain provisions of Decree No. 115/2008/NĐ-CP dated November 14, 2008, amending and supplementing certain articles of Decree No. 143/2003/NĐ-CP dated November 28, 2003, promulgating detailed regulations on the implementation of certain provisions of the Water Conservancy Works Exploitation and Protection Ordinance.

2. During implementation, if there are any difficulties, they should be reported to the Ministry of Finance by relevant ministries, sectors, provincial people's committees, centrally-administered cities, and water management units for study and appropriate amendments and supplements./.