Joint Circular No. 50/2012/TTLT-BTC-BTNMT guiding financial mechanisms and budget levels for preparing strategic environmental assessment reports

JOINT CIRCULAR

Guidelines on financial mechanisms and budget for preparing strategic environmental assessment reports

lập báo cáo đánh giá môi trường chiến lược

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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. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 25/2008/NĐ-CP dated November 10, 2008 of the Government stipulating tasks, powers, and organizational structure of the Ministry of Natural Resources and Environment;

Pursuant to Decree No. 29/2011/NĐ-CP dated April 18, 2011 of the Government stipulating strategic environmental assessment, environmental impact assessment, and environmental protection commitments.

The Minister of Finance and the Minister of Natural Resources and Environment hereby issue this Joint Circular guiding financial mechanisms and budget for preparing strategic environmental assessment reports.

Article 1. Scope of Regulation

This Circular guides financial mechanisms and budget for preparing strategic environmental assessment reports for strategies, plans, and programs specified in Article 3 of Decree No. 29/2011/NĐ-CP dated April 18, 2011 of the Government stipulating strategic environmental assessment, environmental impact assessment, and environmental protection commitments.

Article 2. Sources of funds for preparing strategic environmental assessment reports

1. Funds for preparing strategic environmental assessment reports are allocated from the construction budget for strategies, plans, and programs guaranteed by the state budget from the public expenditure fund and other sources (if any).

2. Funds for preparing strategic environmental assessment reports for strategies, plans, and programs implemented by ministries, ministerial-level agencies, government agencies, and other central agencies (hereinafter referred to as ministries and central agencies) are guaranteed by the central state budget and are included in the annual state budget estimates of these ministries and central agencies.

3. Funds for preparing strategic environmental assessment reports for strategies, plans, and programs implemented by localities are guaranteed by the local state budget and are included in the annual state budget estimates of these localities.

Article 3. Contents of expenditures for preparing strategic environmental assessment reports

1. Drafting outlines; collecting materials and data on natural conditions, environment, and socio-economic factors related to the preparation of strategic environmental assessment reports.

2. Field investigations and surveys to serve the preparation of strategic environmental assessment reports (excluding sampling and sample analysis, if applicable).

3. Hiring consultants and outsourcing specialized work to implement the contents required for the preparation of strategic environmental assessment reports.

4. Organizing meetings, seminars, and consultations with relevant agencies and communities.

5. Analyzing, evaluating, and forecasting environmental impacts.

6. Other costs directly related to the preparation and revision of strategic environmental assessment reports (if any).

Article 4. Maximum cost for preparing strategic environmental assessment reports

1. The maximum cost for preparing detailed strategic environmental assessment reports in the form of separate reports:

Formula: G_{DMCT = DMCT standard x H} = G_{DMCT standard is the standard for implementing strategic environmental assessment for national master plans, national marine space plans, national land use plans, regional plans, provincial plans, and special administrative-economic units with a standard area of 5,000 km², as determined in Appendix I issued along with this Circular (excluding the standard for map establishment).} x H₁ x H₂ x H₃

Where:

of_{DMCT = DMCT standard x H} is the cost for preparing detailed strategic environmental assessment reports in the form of separate reports for strategies, plans, and programs under Clause 2, Article 3 of Decree No. 29/2011/NĐ-CP (in million VND).

of_{DMCT standard is the standard for implementing strategic environmental assessment for national master plans, national marine space plans, national land use plans, regional plans, provincial plans, and special administrative-economic units with a standard area of 5,000 km², as determined in Appendix I issued along with this Circular (excluding the standard for map establishment).} = 250 million VND, which is the cost for preparing strategic environmental assessment reports for comprehensive socio-economic development plans at the standard scale of 1,000 km².².

H₁ is the coefficient for the natural area size of the region where the strategic environmental assessment report is prepared, as determined in Appendix 1 issued together with this Circular.

H₂ is the coefficient for assessing the degree of environmental impact of the industry and sector, as determined in Appendix 2 issued together with this Circular.

H₃ is the special zone coefficient, as determined in Appendix 3 issued together with this Circular (coefficient H₃ only applies to strategic environmental assessment reports for provincial and regional comprehensive socio-economic development plans).

2. The maximum cost for preparing detailed strategic environmental assessment reports in the form of integrated reports:

of_{Integrated DMG} = 0.65 x G_{DMCT standard is the standard for implementing strategic environmental assessment for national master plans, national marine space plans, national land use plans, regional plans, provincial plans, and special administrative-economic units with a standard area of 5,000 km², as determined in Appendix I issued along with this Circular (excluding the standard for map establishment).} x H₁ x H₂

H₁, H₂ is determined similarly to the cost for preparing detailed strategic environmental assessment reports in the form of separate reports.

3. The maximum cost for preparing concise strategic environmental assessment reports:

of_{Concise DMG} = 0.3 x G_{DMCT standard is the standard for implementing strategic environmental assessment for national master plans, national marine space plans, national land use plans, regional plans, provincial plans, and special administrative-economic units with a standard area of 5,000 km², as determined in Appendix I issued along with this Circular (excluding the standard for map establishment).} x H₁ x H₂

H₁ is determined similarly to the cost for preparing detailed strategic environmental assessment reports in the form of separate reports.

H₂ the coefficient for assessing the degree of environmental impact of the industry and sector for concise strategic environmental assessment reports is calculated using a coefficient of 0.5.

4. The above costs do not include: Value-added tax; costs for sampling and analyzing current environmental conditions. In cases where strategic environmental assessment reports require sampling and analysis, the agency preparing the report shall determine the sampling and analysis costs based on specific requirements.

5. Determining the costs at Clause 1, 2, and 3 of this Article when the minimum wage changes:

The costs prescribed in Clauses 1, 2, and 3 of this Article are established based on a minimum wage of 830,000 VND/month (as stipulated in Decree No. 22/2011/NĐ-CP dated April 4, 2011 of the Government on the general minimum wage). Labor costs are determined as 60% of the total cost for preparing strategic environmental assessment reports.

When there is an adjustment to the minimum wage, the conversion formula shall be applied to calculate the cost for preparing strategic environmental assessment reports as follows:

Where:

of_{Adjusted DMG} is the cost for preparing strategic environmental assessment reports when the state adjusts the minimum wage coefficient;

of_{DMCT = DMCT standard x H} is the cost for preparing strategic environmental assessment reports corresponding to the current minimum wage;

L_{GROUP OF FIELDS AND OCCUPATIONS} is the adjusted minimum wage;

L_HT is the current minimum wage (830,000 VND).

Article 5. Establishment, Implementation, Payment, and Settlement of Budget Estimates

The establishment, implementation, payment, and settlement of budget estimates for economic public services shall be carried out in accordance with the provisions of the State Budget Law and current guiding documents; this Circular provides detailed guidance on certain matters as follows:

1. Preparing budgets

Annually, based on the Prime Minister's Directive on the development plan for socio-economic growth and state budget estimates; the Circular guiding the establishment of state budget estimates issued by the Ministry of Finance; the tasks of establishing strategic environmental assessment reports for strategic projects, plans, and programs assigned and the costs for establishing such reports as stipulated in Article 4 of this Circular; the current financial expenditure regulations; units responsible for establishing budget estimates for strategic environmental assessment reports shall establish their budget estimates as follows:

a) For budget estimates for strategic environmental assessment reports implemented by central ministries and agencies: Based on central strategies, plans, and programs as prescribed in Article 3 of Decree No. 29/2011/NĐ-CP dated April 18, 2011 of the Government, the budgetary units assigned to implement these tasks shall establish budget estimates for strategic environmental assessment reports together with the budget estimates for the strategies, plans, and programs, and report them to the respective ministries and agencies for consolidation into the state budget estimate to be submitted to the Ministry of Finance for review and consolidation before being reported to the Government for submission to the National Assembly for consideration as prescribed.

b) For budget estimates for strategic environmental assessment reports implemented by localities: Based on local strategies, plans, and programs as prescribed in Article 3 of Decree No. 29/2011/NĐ-CP dated April 18, 2011 of the Government, the budgetary units assigned to implement these tasks shall establish budget estimates for strategic environmental assessment reports together with the budget estimates for the strategies, plans, and programs, and report them to the superior management authorities for consolidation into the budget estimates of the management authorities to be submitted to the same-level finance authorities for reporting to the People's Councils for decision-making as prescribed.

2. Management, distribution, and payment

The management, allocation, and payment of funds for economic public services for the establishment of strategic environmental assessment reports shall be carried out in accordance with the guidelines of the Ministry of Finance regarding the management, allocation, and payment of state budget expenditures through the State Treasury.

3. Funds Carried Over to the Next Year

The handling of surplus funds for economic public services for the establishment of strategic environmental assessment reports shall be carried out in accordance with the provisions of the State Budget Law and the guidelines of the Ministry of Finance regarding year-end accounting closure and the preparation and reporting of annual state budget settlements.

4. Settlement Work

a) The settlement of funds for strategic environmental assessments shall be conducted concurrently with the settlement of funds for implementing the strategies, plans, and programs as stipulated in Article 3 of Decree No. 29/2011/NĐ-CP dated April 18, 2011 of the Government. Units assigned budget estimates for economic public services to establish strategic environmental assessment reports shall be responsible for preparing the settlement report to be submitted to the superior management authorities for consolidation into the overall settlement report of the superior management authorities, which will then be submitted to the same-level finance authorities for review and submission to the competent authorities as prescribed.

b) Review and Audit of Annual Settlement Reports: In accordance with the guidelines of the Ministry of Finance on the review, audit, and notification of annual settlements for administrative agencies, public service units, organizations supported by the state budget, and budgets at all levels.

Article 6. Implementation Organization

This Circular takes effect from May 20, 2012.

During the implementation process, if there are any difficulties, units are requested to reflect them to the Ministry of Finance and the Ministry of Natural Resources and Environment for research, amendment, and supplementation as appropriate./.