Decision No. 43/2009/QD-TTg on the issuance of mechanisms to support central government budget capital for the construction of technical infrastructure in industrial zones in localities with difficult socio-economic conditions.

Pursuant to …;

Regarding the issuance of mechanisms to support state budget capital for investment in infrastructure construction in industrial zones at localities with difficult socio-economic conditions

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PRIME MINISTER

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

Pursuant to the Law on State Budget dated December 16, 2002;

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decree No. 29/2008/NĐ-CP dated March 14, 2008 of the Government on industrial zones, export processing zones, and economic zones;

Considering the proposal of the Minister of Planning and Investment in the report No. 8352/TTr-BKH dated November 14, 2008,

DECISION:

Article 1. Conditions for localities eligible for support

1. Localities meeting one of the following conditions shall be considered for targeted capital investment from the central state budget to invest in technical infrastructure construction in industrial zones:

a) The ratio of additional balance transferred from the central state budget to the local budget compared to local budget expenditure exceeds 60%;

b) The proportion of industry in the locality's GDP is lower than the national industry share in GDP by at least 10 percentage points. The above conditions are determined based on data from the year preceding the annual planning period.

2. The number of projects for constructing and operating technical infrastructure in industrial zones (hereinafter referred to collectively as infrastructure construction projects in industrial zones) that will be considered for support:

a) Localities in the Northern Midland and Mountainous Region and the Central Highlands meeting the provisions of Clause 1 of this Article shall be considered for support of capital investment from the central state budget for one infrastructure construction project in an industrial zone.

b) Other localities meeting the provisions of Clause 1 of this Article shall be considered for support of capital investment from the central state budget for two infrastructure construction projects in industrial zones.

Article 2. Conditions for infrastructure construction projects in industrial zones eligible for support

Infrastructure construction projects in industrial zones in localities meeting the provisions of Clause 1 of Article 1 of this Decision must meet the following conditions to be considered for support of capital investment from the central state budget:

1. The industrial zone is included in the overall plan for the development of industrial zones nationwide approved by the Prime Minister or has been permitted to be added to the plan during each period and has been established in accordance with government regulations.

2. The investment in infrastructure construction in the industrial zone plays a significant role in attracting investment to transform the economic structure, promote local economic growth, develop industries with comparative advantages and strengths of the locality, positively impact job creation and improve the living standards of local residents, and ensure effective environmental protection in the industrial zone.

3. The infrastructure construction project in the industrial zone is undertaken by an economic organization wholly funded by a Vietnamese investor.

Article 3. Level of support capital and management of support capital

1. Level of support capital:

a) The maximum level of support for capital investment from the central state budget for infrastructure construction in industrial zones in localities specified in Point a, Clause 2, Article 1 of this Decision is not more than 100 billion VND per project.

b) The maximum level of support for capital investment from the central state budget for infrastructure construction in industrial zones in localities specified in Point b, Clause 2, Article 1 of this Decision is not more than 70 billion VND per project.

2. Management and utilization of support capital:

a) Capital investment from the central state budget under this Decision shall be prioritized for the following items and works in the industrial zone:

- Compensation, land clearance, and resettlement assistance for people whose land is expropriated for the industrial zone;

- Wastewater and solid waste treatment systems in the industrial zone (including drainage systems, centralized wastewater treatment plants, and solid waste treatment systems).

b) In cases where capital investment from the central state budget has been used for its intended purpose, and the items and works in the industrial zone specified in Point a, Clause 2 of this Article have been completed or other sources of capital have been mobilized for these items and works, localities may use the remaining funds to invest in other technical infrastructure items and works in the industrial zone (including internal roads, bridges leading to the industrial zone), or for items and works in the technical infrastructure of the second industrial zone for localities specified in Point b, Clause 2, Article 1 of this Decision. The remaining funds shall be used for the following priority items and works:

- Technical infrastructure within the fence of the first industrial zone;

- Internal roads, bridges leading to the first industrial zone;

- Technical infrastructure within the fence of the second industrial zone for localities specified in Point b, Clause 2, Article 1 of this Decision.

c) Support for capital investment from the central state budget for the second industrial zone for localities specified in Point b, Clause 2, Article 1 of this Decision shall only be implemented after the following conditions are met:

- The first industrial zone has completed the items and works specified in Point a, Clause 2 of this Article or has completed the support for capital investment from the central state budget for the first industrial zone;

- The total area of industrial land in the first industrial zone allocated to registered investment projects and granted investment certificates for land lease and sublease is at least 60%.

d) In cases where capital investment from the central state budget is used for purposes other than those intended, it shall be recovered to the central state budget.

đ) Any remaining funds not fully utilized after completing the items and works specified in Points a and b, Clause 2 of this Article must be returned to the central state budget.

3. The management and utilization of capital investment from the central state budget for infrastructure construction projects in industrial zones shall be carried out in accordance with the Law on Investment and the Law on State Budget.

Article 4. Authorities and responsibilities of the Ministry of Planning and Investment and the Ministry of Finance

1. Annually, based on the ability to balance capital investment in the central state budget, demand, and the implementation status of projects, the Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Finance and relevant agencies to propose plans for support from the central state budget for infrastructure construction projects in industrial zones. On this basis, they shall compile them into the annual state budget estimate, report to the Government for submission to the National Assembly for consideration and decision in accordance with the Law on State Budget.

2. Annually, the Ministry of Planning and Investment shall take the lead and coordinate with relevant ministries, sectors, and localities to compile and assess the implementation situation and effectiveness of financial support from the central budget for infrastructure construction projects in industrial zones, and report to the Prime Minister.

Article 5. Powers and responsibilities of provincial people's committees and municipal people's committees under the Central Government

1. Decide on the allocation of investment capital from the central budget for infrastructure construction projects in industrial zones within their respective localities.

2. Decide on the use of surplus funds for constructing infrastructure components and works in industrial zones in accordance with Point b, Clause 2, Article 3 of this Decision.

3. Direct, urge, and inspect agencies and units using investment capital from the central budget to ensure that such capital is utilized for its intended purposes, effectively, and in compliance with this Decision and current laws.

4. Report on the management and utilization of investment capital from the central budget for infrastructure construction in industrial zones within their respective localities, including the situation of management and use, the effectiveness of utilizing central budget investment capital, and the need for central budget investment capital in the next planning year, to be submitted to the Ministry of Planning and Investment before July 31 each year so that the Ministry can implement tasks stipulated in Article 4 of this Decision.

Article 6. Effectiveness of the Decision

1. This Decision shall take effect from May 18, 2009.

2. This Decision replaces the investment support policies for industrial zones specified in:

a) Point c, Clause 2, Article 2 of Decision No. 24/2008/QĐ-TTg dated February 5, 2008, issued by the Prime Minister regarding the issuance of certain mechanisms and policies to support economic and social development in the North Central and Central Coast regions until 2010;

b) Clause 3, Article 2 of Decision No. 25/2008/QĐ-TTg dated February 5, 2008, issued by the Prime Minister regarding the issuance of certain mechanisms and policies to support economic and social development in the Central Highlands region until 2010;

c) Clause 5, Article 2 of Decision No. 26/2008/QĐ-TTg dated February 5, 2008, issued by the Prime Minister regarding the issuance of certain mechanisms and policies to support economic and social development in the Mekong Delta region until 2010;

d) Point a, Clause 1, Article 2 of Decision No. 27/2008/QĐ-TTg dated February 5, 2008, issued by the Prime Minister regarding the issuance of certain mechanisms and policies to support economic and social development in the Midland and Northern Mountainous regions until 2010.

3. This Decision replaces Decision No. 183/2004/QĐ-TTg dated October 19, 2004, issued by the Prime Minister concerning the mechanism for supporting central government budget capital for the construction of technical infrastructure in industrial zones in localities facing difficult socio-economic conditions.

Article 7. Responsibility for Implementation

Ministers, heads of ministerial-level agencies, heads of agencies under the Government, and Chairpersons of provincial people's committees and municipal people's committees under the Central Government are responsible for implementing this Decision.