Decision No. 53/2002/QĐ-BKHCNMT on the issuance of the Charter of Organization and Operation of the Vietnam Environment Protection Fund.

 

DECISION OF THE MINISTRY OF SCIENCE AND TECHNOLOGY

MINISTER OF THE MINISTRY OF SCIENCE AND TECHNOLOGY AND ENVIRONMENT

Regarding the issuance of the Charter on Organization and Operation of

the Vietnam Environment Protection Fund

MINISTER OF THE MINISTRY OF SCIENCE AND TECHNOLOGY AND ENVIRONMENT

Pursuant to the Environmental Protection Law dated December 27, 1993, environment on December 27, 1993, established the Ministry of Science, Technology and Environment,

WHEREAS EDUCATION Decree number Governmental Decision No. 175/CP dated October 18, 1994 guiding the implementation of the Environmental Protection Law,

Pursuant to the Government Decree number Governmental Decision No. 22/CP dated May 22, 1992 stipulating the functions, tasks, and organizational structure of the Ministry of Science, Technology, and Environment, 82/2002/QD-TTg on

Pursuant to Decision number and the operation of the Vietnam Environmental Protection Fund, Prime Minister's Decision No. 82/2002/QĐ-TTg dated June 26, 2002 establishing, organizing, and operating the Vietnam Environment Protection Fund, Organization and staff

At the proposal of the Director of the Environmental Protection Department, Accounting Director Accounting science, times to consider and decide matters within their authority. 

DECISION:

Article 1Issued herewith along with this Decision is the Charter on Organization and Operation of the Vietnam Environment Protection Fund.

Article 2This Decision shall take effect fifteen days from the date of signature.

Article 3The Director of the Environmental Protection Department, the Head of the Department of Organization and Scientific Personnel, the Chairman of the Management Board of the Fund, the Director of the Vietnam Environment Protection Fund, and related units shall be responsible for implementing this Decision.

 

CHARTER

Organization and Operation of the Vietnam Environment Protection Fund
(Issued together with Decision No. 53/2002/QĐ-BKHCNMT dated July 16, 2002 of the Minister of Science, Technology, and Environment).

PART I
GENERAL PROVISIONS

Article 1.

Article 1. The Vietnam Environment Protection Fund is a state financial organization established, organized, and operated pursuant to Prime Minister's Decision No. 82/2002/QĐ-TTg dated June 26, 2002. The Fund has legal personality, registered capital, separate balance sheets, its own seal, and bank accounts opened at the State Treasury and domestic and foreign banks.

Article 2. The Vietnam Environment Protection Fund has the English name "Vietnam Environment Protection Fund" abbreviated as "VEF".

Article 3. The headquarters of the Vietnam Environment Protection Fund is located in Hanoi. Representative offices of the Fund are located in provinces and centrally governed cities. Transaction offices of the Fund are located abroad as prescribed by the Government.

Article 2. The Vietnam Environment Protection Fund operates without profit-making objectives but must ensure the return of the registered capital and cover management costs.

The Fund receives various sources of capital from the state budget and mobilizes other sources of capital to provide financial support and sponsorship in the field of environmental protection.

Chapter II
TASKS AND POWERS OF THE VIETNAM ENVIRONMENT PROTECTION FUND

Article 3. The Vietnam Environment Protection Fund has the following tasks:

Clause 1. Mobilize domestic and foreign capital in accordance with the law to invest in environmental protection.

Clause 2. Provide financial support for national, inter-sectoral, inter-regional programs, projects, activities to prevent, control, and mitigate environmental pollution, degradation, and emergencies, or to resolve local environmental issues with significant impact.

Clause 3. Receive and manage entrusted capital from organizations and individuals both domestically and internationally to provide financial support for programs, projects, activities, and tasks related to environmental protection.

Clause 4. Organize guidance for the development, review, and selection of programs, projects, activities, and tasks related to environmental protection that are proposed for sponsorship or financial support in accordance with the law.

Clause 5. Utilize idle funds not sourced from the state budget and with the consent of the organizations or individuals providing the funds to purchase government bonds in accordance with the law.

Clause 6. Ensure the return of the registered capital based on balancing the mobilized and received funds with the financial support provided for environmental protection.

Clause 7. Manage the Fund's capital and assets in accordance with the law.

Article 4. The Vietnam Environment Protection Fund has the following powers:

Clause 1. Organize administrative bodies and business units to operate in line with the Fund's goals, tasks, and provisions of this Charter.

Clause 2. Regularly and ad hoc inspect units using the Fund's capital in the implementation of programs, projects, activities, and tasks related to environmental protection.

Clause 3. Mobilize experts from ministries, sectors, and related organizations to participate in the review boards for programs, projects, activities, and tasks related to environmental protection proposed for sponsorship or financial support by the Fund and to serve other related activities of the Fund.

Clause 4. Suspend financial support or interest rate subsidies, recover capital, and initiate legal proceedings against project sponsors who breach their commitments to the Fund or violate state regulations.

Clause 5. Refuse to provide information and other resources of the Fund to any organization or individual if such requests contravene the law and this Charter.

Clause 6. Directly engage with domestic and international organizations and individuals to promote, attract, and accept sponsorships for the Fund or to raise funds for the Fund according to assigned plans.

Clause 7. Dispatch staff of the Vietnam Environment Protection Fund abroad for work, study, research, observation, and survey in accordance with the law.

Chapter III
ORGANIZATION AND ADMINISTRATION OF THE VIETNAM ENVIRONMENTAL PROTECTION FUND

Article 5.

Article 1. The Vietnam Environment Protection Fund has a Management Board, a Supervisory Board, and a business administration body.

Article 2. The Management Board, Supervisory Board, and business administration body of the Fund operate in accordance with this Charter and are responsible for all their activities.

Article 3. The Vietnam Environment Protection Fund may establish specialized advisory boards to assist in reviewing programs, projects, tasks, and activities related to environmental protection proposed for financial support. Specialized advisory boards operate under regulations issued by the Fund's Management Board.

Article 6

Article 1. The Management Board of the Vietnam Environment Protection Fund has a Chairman who is a Deputy Minister of Science, Technology, and Environment, and four members representing the authorities of the Ministries of Finance, Planning and Investment, State Bank of Vietnam, and the leadership of the Environmental Protection Department. Members of the Management Board operate on a part-time basis.

Article 2. Working system of the Management Board:

Point a) The Management Board operates collectively, holding regular meetings every eight months to consider and decide matters within its jurisdiction. In some cases, the Chairman of the Management Board may request members of the Board to provide written opinions on decisions.

The Management Board may convene extraordinary meetings to address urgent matters. reason In certain cases, the Chairman of the Management Board may request members to provide written opinions and decisions.

a) Belongs to the objects specified in Clause 1 of this Article.

Point b) The Management Board decides matters based on the principle of majority rule.

Article 3. The Management Board has the following responsibilities:

Point a) Decide on the direction, plan of operations, capital mobilization, financial support, approval of financial plans, and final reports of the Fund.

b) Inspect and supervise the business management department of the Vietnam Environmental Protection Fund in its implementation of policies, regulations, and directives of the Council and the enforcement of legal provisions.

c) Issue guidelines on priority lists, selection criteria, and loan and funding review procedures for the Fund.

d) Submit to the competent authority proposals for amendments and supplements to the Charter of Organization and Operation of the Fund.

4. The Management Board of the Fund has the following powers and responsibilities:

a) Decide within its authority on financial support, loans, and grants for environmental programs, projects, activities, and tasks.

b) Resolve complaints from organizations and individuals who have borrowed funds or received support from the Fund in accordance with the law.

c) Appoint and dismiss the Head and members of the Supervisory Board. Propose to the Minister of Science and Technology and Environment for appointment and dismissal of the Director, Deputy Directors, and Chief Accountant of the Fund.

d) Decide on the establishment and organizational structure and operation of the Fund's representative offices in provinces and centrally-administered cities and transaction offices abroad in accordance with the law.

đ) Decide on the establishment of specialized advisory boards.

e) Utilize the administrative apparatus of the Fund’s management body and the Fund’s seal in performing its duties and exercising its powers as stipulated herein.

g) Operating expenses of the Management Board shall be included in the Fund's operational costs.

Article 7.

1. The Supervisory Board of the Vietnam Environmental Protection Fund consists of eight members. The Head of the Board is appointed and dismissed by the Management Board of the Fund. Members are appointed and dismissed by the Management Board upon recommendation of the Head.

Members of the Supervisory Board operate on a part-time basis.

2. The Supervisory Board has the following tasks and powers:

a) Inspect and supervise the activities of the Fund in accordance with the Charter and legal regulations and decisions of the Management Board.

b) Develop work plans to submit to the Management Board and implement them independently.

c) Carry out tasks assigned by the Management Board.

d) Review and recommend to the Management Board to resolve complaints from organizations and individuals regarding issues related to the Fund's operations.

3. The Head of the Supervisory Board or members authorized by the Head may attend and express opinions at Management Board meetings but cannot vote.

4. The Head of the Supervisory Board drafts the Operational Regulations of the Board and submits them to the Management Board for approval.

5. The operating expenses of the Supervisory Board are included in the Fund's operating costs.

Article 8.

1. The business management body of the Vietnam Environmental Protection Fund includes the Director, one Deputy Director, Chief Accountant, and supporting units.

2. The Director of the Vietnam Environmental Protection Fund is concurrently a leader of the Environment Department, proposed by the Management Board and appointed and dismissed by the Minister of Science and Technology and Environment.

3. Supporting units of the Vietnam Environmental Protection Fund include the Fund Office and other specialized units proposed by the Director and decided by the Management Board.

Article 9.

1. Staff concurrently working for the Fund shall enjoy concurrent employment benefits as prescribed.

2. Fund staff shall enjoy salaries, bonuses, and other welfare benefits as prescribed for state-owned enterprises.

Article 10

1. The Director of the Vietnam Environmental Protection Fund is the legal representative of the Fund in domestic and international legal relations, accountable to the Management Board and national laws for all business operations of the Fund.

2. The Director has the following tasks and powers:

a) Organize and manage the operations of the Fund's business management body in accordance with the Charter, Management Board decisions, and legal regulations.

b) Develop annual financial revenue and expenditure plans for the Fund to submit to the Management Board for approval and organize their implementation.

c) Report periodically on capital mobilization, financial support, and annual financial statements of the Fund to the Management Board.

d) Propose the establishment of specialized advisory boards and compile, process advisory opinions to submit to the Management Board for decision.

đ) Issue operational regulations for supporting units and submit procedural guidance documents to the Management Board for approval.

e) Propose Deputy Directors and Chief Accountants of the Fund for the Management Board to submit to the Minister of Science and Technology and Environment for appointment and removal.

g) Manage and utilize the Fund's capital, assets, and other resources in accordance with this Charter and legal regulations.

h) Participate in regular sessions of the Management Board and contribute to session content.

Article 11

1. Specialized advisory boards advise the Fund on evaluating and selecting environmental programs, projects, tasks, and activities that are proposed for financial support. environment on December 27, 1993, 2. Members of specialized advisory boards must possess the necessary qualifications, integrity, and expertise relevant to the proposed financial support.

3. Specialized advisory boards operate under regulations issued by the Management Board.

ACTIVITIES OF THE VIETNAM ENVIRONMENTAL PROTECTION FUND

4. Costs for the operations of the specialized advisory councils shall be included in the Fund's management expenses.

Chapter IV
The activities of the Vietnam Environmental Protection Fund are carried out through the following methods:

Article 12.

1. a) Providing loans with preferential interest rates,

b) Interest rate subsidies,

c) Grants and co-grants,

d) Entrusting and entrusted, .

đ) Purchasing government bonds.

2. The Fund's financial support targets are national, cross-sectoral, cross-regional environmental programs, projects, activities, and tasks, or local environmental issues with significant impacts in pollution prevention, remediation, degradation, and environmental emergencies.

3. Financial support recipients must meet the requirements specified for each method as provided in the Charter.

4. The method of providing loans with preferential interest rates by the Fund is defined as follows:

Article 13. 1. Borrowers.

Borrowers are environmental protection programs, projects, and activities as follows:

a) Pollution prevention, control, and remediation, waste treatment.

b) Environmental degradation prevention, control, and remediation, biodiversity conservation.

c) Environmental emergency prevention, control, and remediation, including those caused by natural disasters.

The annual list of priority loan recipients is decided by the Management Board.

2. Loan conditions:

a) Belonging to the categories specified in Clause 1 of this Article.

2. Conditions for receiving non-repayable funding: The activities and tasks specified in Clause 1

b) Having the actual ability to repay the loan principal.

c) Possessing complete loan application documents as prescribed by the Fund.

3. The amount of the loan and the authority to decide on granting loans:

a) The amount of the loan shall not exceed 70% of the investment costs for environmental protection contents of the borrower.

b) The Management Board of the Fund decides on the loan amount for each borrower. For loan amounts of 1 billion VND or more, the Management Board shall submit to the Minister of Science and Technology and Environment for consensus. tỷ đồng trở lên thì Hội đồng quản lý Quỹ trình Bộ trưởng Bộ Khoa học, Công nghệ và Môi trường xin ý kiến đồng thuận.

4. Loan period:

The loan period shall be determined in accordance with the production and business characteristics of each borrower and the borrower's ability to repay, but shall not exceed seven years at maximum.

5. Interest rate on loans:

a) The interest rate on loans from the Vietnam Environmental Protection Fund is 0% per annum.

b) Borrowers must pay management fees to the Fund at specific rates as prescribed by the Ministry of Finance.

6. Guarantee for loans:

a) Borrowers may use assets formed with borrowed funds to guarantee the loan or have third parties provide guarantees using assets.

b) During the period when the debt has not been fully repaid, the borrower or guarantor shall not transfer, sell, or mortgage or pledge the assets specified in Clause a of this Article to borrow elsewhere.

7. Establishment of the Risk Reserve Fund for project lending activities:

a) Annually, the Vietnam Environmental Protection Fund shall establish the Risk Reserve Fund at 0.1% of the total outstanding loan balance of the Fund to handle objective risks.

b) The establishment of the Risk Reserve Fund shall be recorded as part of the operational expenses of the Fund.

8. Risk handling:

Borrowers of the Fund who face risks due to force majeure reasons shall be considered for debt extension, debt write-off, partial or full debt cancellation.

The Management Board of the Fund decides on debt extension, debt write-off up to 1 billion VND. Debt write-offs of 1 billion VND or more for a borrower require the agreement of the Minister of Science and Technology and Environment and the Minister of Finance. The total amount of debt write-offs for borrowers shall not affect the preservation of the Fund's charter capital.

Article 14. The method of interest rate support for loans from the Fund is stipulated as follows:

1. The Fund decides on the list and specific level of interest rate support for loans for environmental protection investment projects from credit organizations.

2. Projects receiving interest rate support for loans must be projects defined in Article 12, Clause 2 of the Charter that are of particular importance to environmental protection work and have high risk.

3. The authority to decide on interest rate support for loans for environmental protection investment projects when borrowing from credit organizations is regulated as for the case of sponsorship under Article 15 of the Charter.

4. Interest rate support shall be provided once for each environmental protection investment project. Granting of interest rate support funding will be carried out when the project is completed and the results are put into use. The total amount of interest rate support funding in a year shall not exceed 20% of the Fund's annual supplementary capital.

Article 15. The method of sponsorship and co-sponsorship by the Vietnam Environmental Protection Fund is stipulated as follows:

1. The Fund sponsors necessary, urgent, newly emerging activities and tasks for environmental protection that are important to the cause of environmental protection and sustainable development of the country, which are not included in the plans of ministries, sectors, and localities, including:

a) Propaganda, education to raise environmental awareness; popularize environmental protection knowledge for the community.

b) Mobilizing community participation in the environmental protection cause; rewarding domestic and foreign organizations and individuals who have made significant contributions to the environmental protection cause and sustainable development.

c) Building, testing, promoting, and expanding environmental protection models.

d) Designing programs and projects to mobilize financial support from domestic and foreign organizations and individuals for environmental protection.

đ) Scientific research, technology transfer friendly to the environment, cleaner production, solutions to prevent, limit, and mitigate environmental incidents. environment on December 27, 1993, 2. Conditions for non-repayable sponsorship: Activities and tasks specified in Clause 1

2. Conditions for receiving non-refundable assistance: Activities and tasks specified in Clause 1

This shall be considered and funded on the condition that the applicant for funding must have at least 50% of the corresponding capital to implement the environmental protection activities and tasks.

3. The recipient of the grant must pay management fees to the Vietnam Environmental Protection Fund.

The specific fee level shall be prescribed by the Ministry of Finance.

4. Authority to decide the amount of non-repayable grants:

a) The amount of non-repayable grants shall not exceed 50% of the investment costs for environmental protection contents of the grant recipient.

b) The Management Board of the Fund decides the amount of non-repayable grants for each grant recipient. For grants of VND 1 billion or more, the Management Board shall submit to the Minister of Science and Technology and Environment for agreement.

5. The Fund may cooperate with organizations and individuals both within and outside the country to co-finance environmental protection tasks and activities according to this Charter and in accordance with the commitments of the co-financing party.

6. The Fund may only use up to 50% of its annual additional capital to implement grant and co-grant methods.

Article 16. The method of entrusting and being entrusted by the Vietnam Environmental Protection Fund is regulated as follows:

1. Entrusting:

a) The Fund may accept entrustment to lend, recover debts, and provide grants from domestic and foreign organizations and individuals according to the entrustment contract.

b) The Fund shall enjoy service fees for accepting entrustment. The service fee level for accepting entrustment shall be agreed upon by the parties and recorded in the entrustment contract.

2. Entrusting:

a) The Fund has the right to entrust financial institutions and credit organizations to implement loans and debt recovery according to the entrustment contract.

b) Organizations accepting entrustment shall enjoy service fees for accepting entrustment. The service fee level for accepting entrustment shall be agreed upon by the parties and recorded in the entrustment contract.

Article 17. The method of purchasing government bonds by the Vietnam Environmental Protection Fund is regulated as follows:

1. The Fund is permitted to use idle funds not originating from the state budget to purchase government bonds according to the provisions of the law and guidelines of the Ministry of Finance and with the consent of the organization or individual providing the funds.

2. The total funds for purchasing government bonds shall not exceed 50% of the idle funds specified in Clause 1 of this Article.

Chapter V
SOURCES OF FUNDS FOR THE ACTIVITIES OF THE VIETNAM ENVIRONMENTAL PROTECTION FUND

Article 18. The charter capital of the Vietnam Environmental Protection Fund is VND 200 billion, provided by the state budget from the science and technology operation fund and fully allocated within two years from the date of the decision to establish the Fund.

Article 19. Annually, the operating capital of the Vietnam Environmental Protection Fund is supplemented from the following sources:

1. Compensation payments for environmental damage (revenue into the state budget) of organizations and individuals as prescribed by law.

a) Compensation payments for environmental damage include compensation for environmental incidents, pollution, and past activities harmful to the environment as stipulated in Articles 7 and 53 of the Law on Environmental Protection.

b) The collection and payment system for compensation into the Environmental Protection Fund shall be implemented according to the guidance of the Ministry of Finance.

2. Deduct 50% of the environmental protection fees as prescribed by law.

a) Environmental protection fees include all types of fees related to the environment as prescribed in Decree No. 57/2002/ND-CP dated June 3, 2002, of the Government guiding the implementation of the Ordinance on Fees and Charges.

b) The collection, payment, and deduction system into the Vietnam Environmental Protection Fund shall be implemented according to the regulations of the Government.

3. Deduct 10% of the annual budget allocated for state management activities on environmental protection.

4. Voluntary contributions, aid, and grants to the Fund from organizations and individuals both within and outside the country.

5. Other revenues as prescribed by law.

6. Entrusted capital from organizations and individuals both within and outside the country for the environmental protection sector.

Chapter VI
FINANCIAL MANAGEMENT OF THE VIETNAM ENVIRONMENTAL PROTECTION FUND

Article 20. Annually, the Vietnam Environmental Protection Fund is responsible for:

1. Developing plans to mobilize and utilize capital for the Fund's financial support activities.

2. Preparing financial budgets for the Fund's operational expenses according to this Charter and the guidelines of the Ministry of Finance.

Article 21.

1. The fiscal year of the Vietnam Environmental Protection Fund begins on January 1 and ends on December 31.

2. Financial systems and accounting practices of the Fund shall be carried out according to the regulations of the Ministry of Finance.

3. Costs for management and operation of the Fund's machinery shall be taken from the Fund's revenue sources.

Article 22. The Vietnam Environmental Protection Fund organizes internal audits of the Fund's financial reports or hires independent auditors as deemed necessary.

Article 23. The Vietnam Environmental Protection Fund prepares and submits business reports, statistical reports, accounting reports, and periodic and ad hoc reports as required by current regulations.

Chapter VII
IMPLEMENTING PROVISIONS

Article 24. This Charter shall take effect fifteen days following the date of issuance of the Decision promulgating it.

Any amendment or supplementation to the Charter on the organization and operation of the Fund shall be submitted by the Management Board of the Fund for approval by the Minister of Science and Technology and Environment.

The Chairman of the Management Board of the Fund and the Director of the Fund are responsible for implementing this Charter./.