Circular No. 54/2013/TT-BTC on the management, use, and operation of centralized rural clean water supply works

CIRCULAR

Regulations on management, use, and operation of water supply works

 for centralized rural clean water

_____________________

Pursuant to the Law on Management and Use of State Property dated June 3, 2008;

Pursuant to Decree No. 52/2009/NĐ-CP dated June 3, 2009 of the Government detailing and guiding the implementation of certain provisions of the Law on Management and Use of State Property;

Based on Decree No. 117/2007/ND-CP dated July 11, 2007 of the Government on production, supply, and consumption of clean water; Decree No. 124/2011/ND-CP dated December 28, 2011 of the Government amending and supplementing certain articles of Decree No. 117/2007/ND-CP dated July 11, 2007 of the Government on production, supply, and consumption of clean water;

Pursuant to 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 Decision No. 131/2009/QĐ-TTg dated November 2, 2009 of the Prime Minister on some preferential policies, incentives for investment, and management and operation of centralized rural clean water supply works;

At the proposal of the Director of the State Asset Management Agency,

After reaching consensus with the Ministry of Agriculture and Rural Development, the Minister of Finance shall issue a Circular regulating the management, use, and operation of centralized rural clean water supply works.

Chapter 1

GENERAL PROVISIONS

Article 1. Scope of Regulation

Article 1. This Circular regulates the management, use, and operation of centralized rural clean water supply works, including:

a) Water supply works providing clean water to rural residents funded entirely or partially from the state budget, with a state budget origin; works established with state ownership.

b) Works simultaneously supplying clean water to urban and rural residents funded from the following sources:

- National Target Program on Clean Water and Environmental Sanitation in Rural Areas;

- Support Program for Production Land, Residential Land, Housing, and Domestic Water Supply for Poor Ethnic Minority Households with Difficult Livelihoods (abbreviated as Program 134);

- Socio-Economic Development Program for Particularly Difficult Communes in Ethnic Minority and Mountainous Areas (abbreviated as Program 135);

- National Target Program on New Rural Areas;

- National Strategy on Water Resources.

Article 2. Small-scale rural clean water supply works funded from the state budget, with a state budget origin, and rural clean water supply works funded from non-state budget sources without a state budget origin are not within the scope of regulation of this Circular.

Article 2. Applicability

Article 1. State agencies, public service units, enterprises, organizations, and individuals implement the management, use, and operation of centralized rural clean water supply works.

Article 2. Other entities related to the management, use, and operation of centralized rural clean water supply works.

Article 3. Explanation of Terms

In this Circular, the following terms are understood as follows:

Article 1. Centralized rural clean water supply works (hereinafter referred to as works) are a system comprising water extraction and treatment facilities, pipeline networks supplying clean water to multiple households or clusters of rural residents using water, and related auxiliary works; including types such as gravity-fed water supply, pump-driven water supply, and suspended reservoir technology.

Article 2. Small-scale rural clean water supply works are works supplying water to one or a few rural households; including types such as household water collection and storage facilities, shallow groundwater wells (dug wells, surface springs), small-diameter drilled wells.

Article 3. The work management unit is an agency, organization, or unit designated by the People's Committee of the province or centrally-administered city (hereinafter referred to as the Provincial People's Committee) to directly manage, use, and operate the works; including:

a) Public service units, including: Rural Water Supply and Environmental Sanitation Centers, Water Supply Management Boards, other public service units.

b) Enterprises, including: Limited Liability Companies, Joint Stock Companies, Limited Partnerships, Private Enterprises.

c) People's Committees of communes, wards, towns (hereinafter referred to as Commune-level People's Committees).

Article 4. Project Contract is an economic contract signed between the competent state authority and the investor to implement the investment project for constructing the works.

Article 5. Cost of clean water is the price calculated to cover all reasonable costs of the entire process of producing, distributing, and consuming clean water in rural areas approved by the competent state authority.

Article 6. Consumption price of clean water is the price that consumers must pay to the work management unit. The consumption price of clean water is decided by the competent state authority according to the provisions of the law on principles and methods for determining the consumption price of clean water in rural areas.

Article 7. Work maintenance is a set of activities including regular maintenance, periodic repairs, and emergency repairs aimed at maintaining the technical condition and normal operation of the works.

Article 4. Principles for managing, using, and operating works

1. The People's Committee of the province shall decide to transfer works to agencies, organizations, and units for direct management, use, and operation.

2. State management of works shall be carried out uniformly, transparently, and clearly, with clear delineation of authority and responsibility for each agency, organization, and unit.

3. The State encourages, creates conditions, and ensures legitimate rights and interests for all agencies, organizations, and units participating in the management, use, and operation of works.

4. Units managing works shall be responsible for ensuring that the works under their management operate sustainably and effectively; they shall implement full reporting and accounting of physical assets and value according to this Circular and relevant laws.

5. Any violation of the system for managing, using, and operating works must be dealt with promptly and strictly in accordance with the law.

Chapter 2

MANAGEMENT, USE, AND OPERATION OF WORKS FUNDED BY THE STATE BUDGET WITH A SOURCE

INVESTMENT FROM THE STATE BUDGET FUNDED BY SOURCES OF ORIGIN

NATIONAL BUDGET

Section 1: MANAGEMENT OF WORKS

Article 5. Documents of Works

1. Documents of works include:

a) Documents on the formation and transfer of works to management units as stipulated in Article 6 of this Circular;

b) Reports on the declaration of works as stipulated in Article 19 of this Circular;

c) Databases on works as stipulated in Articles 8, 9, and 10 of this Circular;

d) Other related documents during the process of managing, using, and operating works.

2. Management and storage of documents of works:

a) Management units of works shall manage and store documents of works as stipulated in points a, b, c, and d of Clause 1 of this Article;

b) The Department of Agriculture and Rural Development shall manage and store documents of works as stipulated in point b of Clause 1 of this Article;

c) The Department of Finance shall manage and store documents of works as stipulated in points b and c of Clause 1 of this Article;

d) The People's Committee of the province, the Ministry of Agriculture and Rural Development, and the Ministry of Finance shall manage and store documents of works as stipulated in point c of Clause 1 of this Article.

Article 6. Documents on the Formation and Transfer of Works to Management Units

1. Documents on the formation and transfer of works to management units include:

a) For works funded from the state budget with a state budget source:

- Documents related to investment construction of works as prescribed by laws on investment construction.

In cases where works have no documents or have incomplete documents as prescribed by laws on investment construction, the documents shall include: Inspection records and revaluation of the value of works according to Model No. 01 BB/CTNSNT issued together with this Circular and other related documents (if any).

- Decision of the People's Committee of the province regarding the transfer of works to management units;

- Handover record of works according to Model No. 02 BB/CTNSNT issued together with this Circular.

b) For works established with state ownership:

- Documents related to investment construction of works as prescribed by laws on investment construction (if any);

- Decision of the People's Committee of the province regarding the establishment of state ownership over works;

- Decision of the People's Committee of the province regarding the transfer of works to management units;

- Handover record of works according to Model No. 02 BB/CTNSNT issued together with this Circular.

2. Responsibilities for completing documents on the formation and transfer of works to management units:

a) For documents related to investment construction of works as prescribed by laws on investment construction:

- The investor shall complete the documents for works completed and put into use from the date this Circular takes effect.

- The Department of Agriculture and Rural Development shall take the lead and coordinate with relevant agencies to complete the documents before December 31, 2013, for works completed and put into use before the date this Circular takes effect.

b) For documents related to the Decision of the People's Committee of the province regarding the transfer of works to management units: The Department of Agriculture and Rural Development shall take the lead and coordinate with relevant agencies to implement as stipulated in Articles 11, 12, 13, 14, and 15 of this Circular.

c) For documents related to the Decision of the People's Committee of the province regarding the establishment of state ownership over works: The Department of Finance shall take the lead and coordinate with relevant agencies to implement as stipulated in Article 7 of this Circular.

d) For documents related to the Handover Record of works according to Model No. 02 BB/CTNSNT issued together with this Circular: Relevant units shall implement as stipulated in Article 12 of this Circular.

Article 7. Establishing State Ownership over Works

1. Cases for establishing State ownership over works:

a) Works invested from sources outside the state budget that have been transferred to the State without having a state budget origin;

b) Works invested under project contracts that are transferred to the State upon expiration of the contract term;

c) Works formed from different sources but with undetermined owners or unclear origins;

d) Other cases for establishing State ownership as prescribed by law.

2. The People's Committee of the province shall decide on establishing State ownership over:

a) Works received for transfer as stipulated in points a and b, Clause 1 of this Article;

b) Works within the management area as stipulated in points c and d, Clause 1 of this Article.

3. Procedures and formalities for establishing State ownership over works:

a) The agency, organization, unit, or individual owning the work (for works falling under the cases specified in points a, b, and d, Clause 1 of this Article), the Department of Agriculture and Rural Development (for works falling under the case specified in point c, Clause 1 of this Article) shall prepare a dossier requesting establishment of State ownership and submit it to the Department of Finance. The dossier includes:

- A document requesting establishment of State ownership;

- Relevant documents concerning the work requested for establishment of State ownership.

b) Within thirty days from the date of receipt of a complete and valid dossier, the Department of Finance shall take the lead and coordinate with relevant agencies to determine the value and actual operational status of the work, and report to the People's Committee of the province.

c) Within ten days from the date of receipt of the dossier submitted by the Department of Finance, the People's Committee of the province shall issue a decision on establishing State ownership. The decision shall include the following main contents:

- Name and address of the work;

- Year of construction and year of commissioning;

- Area (land, building floor space);

- Capacity (designed, actual);

- Actual operational status of the work (durable, average, inefficient, non-operational);

- Value of the work;

- Responsibility for organizing implementation.

Section 2: DATA ON WORKS

Article 8. Management and Utilization of Data on Works

1. Data on works is a component of the National Database on State Assets, built and managed uniformly throughout the country.

2. Information in the Data on Works has legal validity equivalent to paper files.

3. Information in the Data on Works serves as a basis for preparing budgets, reviewing final accounts, inspecting, auditing, supervising investment construction, upgrading, renovation, repair, reallocation, leasing exploitation rights, transferring, liquidating works, and reporting to competent state authorities according to prescribed regulations.

4. The Data on Works is a state asset and must be strictly secured for safety; all unauthorized access, destruction, or alteration of information in the Data on Works is strictly prohibited.

5. Utilization and use of information and data on works must comply with regulations; unauthorized utilization or use of information without permission from competent state authorities is not allowed.

6. Content, structure, data entry methods, and utilization of the Data on Works shall be carried out in accordance with the provisions of the Ministry of Finance.

Article 9. Responsibilities for Building, Managing, and Exploiting the Database on Works

1. The Ministry of Finance shall take the lead and coordinate with the Ministry of Agriculture and Rural Development to build, manage, and exploit the Database on Works.

2. Provincial People's Committees shall report and declare, update data on works in their localities to be integrated into the Database on Works system by the Ministry of Finance and have the right to exploit the Database on Works within their management scope.

Article 10. Inputting, Approving, and Standardizing the Database on Works

1. The inputting and approving of the Database on Works shall be carried out in accordance with the regulations on declaring reports on works as stipulated in Article 19 of this Circular.

2. The Department of Finance shall regularly or upon request of competent state agencies perform the tasks of inspecting and standardizing data that has been entered into the Database on Works.

Section 3: TRANSFERRING WORKS TO MANAGEMENT UNITS

Article 11. Management Units of Works

Depending on specific conditions regarding the scale of works, water supply technology, water treatment, and socio-economic characteristics of each locality, the Provincial People's Committee shall decide to transfer works to management units in the following priority order:

1. Public Service Organizations as prescribed in Article 13 of this Circular;

2. Enterprises as prescribed in Article 14 of this Circular;

3. Commune People's Committees as prescribed in Article 15 of this Circular.

Article 12. Transferring Works to Management Units

1. Based on the dossier and current status of the works, the Department of Agriculture and Rural Development shall take the lead and coordinate with relevant agencies to submit to the Provincial People's Committee a plan for transferring works to management units as prescribed in Article 11 of this Circular.

2. Within ten days from the date of receipt of the submitted dossier from the Department of Agriculture and Rural Development, the Provincial People's Committee shall issue a decision to transfer works to management units. The decision shall include the following main contents:

a) Name of the unit entrusted with managing the works;

b) Name and location of the transferred works;

c) Year of construction, year of commissioning;

d) Area (land, floor area);

đ) Capacity (design, actual);

e) Value of the works;

g) Term, value of debt, repayment date (for works transferred to enterprises not fully funded by the State as prescribed in Article 14 of this Circular);

h) Responsibilities for organizing implementation.

3. Within thirty days from the date of issuance of the decision to transfer works to management units by the Provincial People's Committee, related units shall carry out the handover and acceptance of the works. The handover of the works must be documented in a Protocol according to Model No. 02 BB/CTNSNT issued together with this Circular.

4. Reasonable costs directly related to the handover and acceptance of the works shall be borne by the unit entrusted with managing the works in accordance with the regulations.

Article 13. Transferring Works to Public Service Organizations for Management

1. Public Service Organizations entrusted with managing the works must meet the following conditions:

a) Being a public service organization as prescribed at point a, Clause 3, Article 3 of this Circular, granted the right to self-management, self-responsibility for performing tasks, organizational structure, staffing, and finance in accordance with the law;

b) Possessing the capacity to manage, operate, and exploit the works.

2. The transfer of works to public service organizations for management shall be carried out in accordance with the provisions of Article 12 of this Circular.

3. Public Service Organizations entrusted with managing the works shall have rights and obligations as prescribed in Article 16 of this Circular.

Article 14. Transfer of Works for Management by Enterprises

1. Enterprises entrusted with the management of works must ensure the following conditions:

a) Being an enterprise as specified in point b, Clause 3, Article 3 of this Circular, having business functions suitable for the management, operation, and exploitation of the works;

b) Possessing the capacity to manage, operate, and exploit the works.

2. The transfer of works for management by enterprises shall be carried out in accordance with the provisions of Article 12 of this Circular.

3. After completing the handover of the works, the enterprise entrusted with the management of the works shall have the responsibility to handle the value of the transferred works as follows:

a) For enterprises with 100% state capital: Increase the state capital at the enterprise in accordance with the provisions of the law;

b) For enterprises not having 100% state capital: Must recognize debt to the State and have the responsibility to repay the recognized debt according to the method and time limit stipulated in the Decision on transferring works to the managing unit of the provincial People's Committee.

After fully repaying the recognized debt to the State, the works will become the property of the enterprise; the enterprise shall manage, use, and exploit the works in accordance with relevant laws.

4. Enterprises entrusted with the management of works shall have rights and obligations as prescribed in Article 16 of this Circular.

Article 15. Transfer of Works for Management by Commune People's Committees

1. Conditions for transferring works for management by Commune People's Committees:

In cases where the transfer of works for management by public service units or enterprises as prescribed in Articles 13 and 14 of this Circular cannot be implemented, the provincial People's Committee shall decide to transfer the works for management by the Commune People's Committee.

2. The transfer of works for management by Commune People's Committees shall be carried out in accordance with the provisions of Article 12 of this Circular.

3. Commune People's Committees entrusted with the management of works shall have rights and obligations as prescribed in Article 16 of this Circular.

Article 16. Rights and Obligations of Work Managing Units

1. Work managing units have the following rights:

a) To be protected by the State in their lawful rights and interests during the process of managing, using, and exploiting the works;

b) To participate in opinions on the establishment of water supply planning in the area; to request competent state agencies to consider amending and supplementing relevant regulations related to the activities of managing, using, and exploiting the works;

c) To proactively implement management and maintenance measures in accordance with the law to operate and exploit the works according to design;

d) To collect water fees according to the approved rural clean water consumption price by competent state agencies;

đ) To receive from the provincial People's Committee a subsidy for the difference between the cost of clean water and the approved rural clean water consumption price as stipulated in Article 21 of this Circular;

e) To handle violations of laws on the management, operation, and exploitation of the works within their authority or report to competent authorities for handling;

g) Other rights as prescribed by law.

2. Work managing units have the following obligations:

a) To be responsible for the management, use, and exploitation of the works in accordance with the provisions;

b) To ensure the provision of water to customers, meeting technical standards and service quality requirements as stipulated;

c) To implement reporting, accounting, depreciation, and maintenance of the works in accordance with this Circular and relevant laws;

d) To compensate customers who suffer losses due to water usage in accordance with the law;

đ) Other obligations as prescribed by law.

Section 4: OPERATION AND EXPLOITATION OF WORKS

Article 17. Methods of operation and exploitation of works

The work management unit shall implement the operation and exploitation of works according to one of the following methods:

1. Self-operation and exploitation of works;

2. Assignment of works in accordance with Article 18 of this Circular.

Article 18. Assignment of works

1. Based on the management situation of each work, the work management unit decides to assign all or part of the tasks during the process of operating and exploiting works to other organizations, units, or individuals as appropriate.

2. Contents that can be assigned include:

a) Operation;

b) Maintenance;

c) Collection of water fees;

d) Other tasks related to the operation and exploitation of works.

3. Responsibilities of the work management unit:

a) Specifically determine the assignment price for each specific task in the operation and exploitation of works;

b) Select organizations, units, or individuals to undertake assignments, ensuring quality and effectiveness;

c) Sign an assignment contract in accordance with the provisions of the law;

d) Inspect, supervise the implementation of the contract, and accept and settle the assigned funds according to the signed contract.

Section 5: REPORTING, ACCOUNTING, DEPRECIATION, AND MAINTENANCE OF WORKS

Article 19. Reporting and declaration of works

1. Forms of reporting and declaration of works:

a) Initial reporting and declaration applies to works decided by the People's Committee of the province to transfer to the management unit after the effective date of this Circular.

b) Supplementary reporting and declaration applies in cases where there are changes to the works due to liquidation, transfer, transfer of ownership, change of name, division, merger, dissolution of the work management unit according to the decision of competent state agencies.

c) Reporting and declaration of changes in information about the exploitation of works apply in cases where there are changes in actual capacity, volume of clean water produced in a year, loss rate, average cost of clean water, average consumption price of clean water, and other relevant information.

2. Content of reporting and declaration of works: The work management unit prepares the report and declaration according to the Models issued together with this Circular; each work prepares a separate report and declaration. The specific form of the report and declaration of works is as follows:

a) Initial reporting and declaration according to Model number 01-BC/CTNSNT issued together with this Circular;

b) Supplementary declaration report includes:

- Change of information about the work management unit according to Model number 02-BC/CTNSNT issued together with this Circular;

- Change of information about the works according to Model number 03-BC/CTNSNT issued together with this Circular;

- Deletion of information from the database of works according to Model number 04-BC/CTNSNT issued together with this Circular.

c) Reporting and declaration of changes in information about the exploitation of works according to Model number 05-BC/CTNSNT issued together with this Circular.

3. Procedure and documents for reporting and declaration of works

a) The work management unit prepares three sets of documents according to the Model prescribed in Clause 2 of this Article, accompanied by copies of related documents; submit two sets of documents to the Department of Agriculture and Rural Development, retain one set of documents at the unit.

b) The Department of Agriculture and Rural Development checks the completeness and accuracy of the report and confirms it; send one set of documents to the Department of Finance, retain one set of documents at the agency.

c) Based on the report confirmed by the Department of Agriculture and Rural Development, the Department of Finance registers it into the database of works.

4. Deadline for reporting and declaration of works

a) For initial reporting and declaration: Within ten days from the date the People's Committee of the province decides to transfer the works to the management unit.

b) For supplementary reporting and declaration: Within thirty days from the date of change.

c) For reporting and declaration of changes in information about the exploitation of works:

- Work management unit: Before January 31 each year.

- Department of Agriculture and Rural Development: Within ten days from the date of receipt of the report from the work management unit.

- Department of Finance: Within ten days from the date of receipt of the report confirmed by the Department of Agriculture and Rural Development.

Article 20. Accounting of Works

1. The object of bookkeeping is all works satisfying both criteria below simultaneously:

a) With a usage period of one year or more;

b) With an original value of 30,000,000 VND (Thirty million dong) or more.

2. Responsibilities of the work management unit:

a) Open books and conduct accounting of works within its management scope in accordance with the law on statistical accounting and the provisions of this Circular;

b) Report annually on the increase and decrease of works.

3. Determining the original value of works for bookkeeping

a) Original value of works constructed through investment:

- For construction works with complete files as required by the law on construction investment: The original value of the works is the final settlement value of the completed project approved by the competent state authority. In cases where the works have not been settled, the original value is recorded based on provisional prices and adjusted after the completion settlement.

- For works without documents or with incomplete documents as required by the law on construction investment: The original value of the works is the value recorded in the Decision transferring the works to the management unit of the People's Committee of the province.

b) The original value of transferred works is determined by the remaining value of the works on the accounting books of the transferring unit or the reassessed value plus related costs incurred by the receiving unit until the works are ready for use.

c) The original value of works established as state property is the value recorded in the Decision establishing state ownership of the People's Committee of the province.

4. Accounting for increases and decreases in the original value of works

a) When the original value of the works changes under the circumstances specified in point b of this clause, the work management unit must account for the increase or decrease in the original value of the works.

b) Cases of increase or decrease in the original value of works:

- Revaluation of the original value according to the decision of the competent state authority;

- Upgraded or expanded according to a project approved by the competent state authority;

- Severely damaged due to natural disasters, unforeseeable incidents, or other sudden impacts.

Article 21. Depreciation of Works

1. Principles for Depreciation of Works

a) All works must be fully depreciated according to regulations. In special cases where full depreciation cannot yet be carried out as prescribed, the People's Committee of the province shall decide on reducing the depreciation rate for each work accordingly.

b) The depreciation costs of works shall be submitted to the state budget in accordance with the laws on the state budget, except in cases where permission is granted to retain such costs for reinvestment in the works as decided by the People's Committee of the province.

c) If the consumption price plan for clean water is lower than the cost price plan calculated correctly and sufficiently according to regulations, the People's Committee of the province may consider reducing the depreciation rate while still ensuring maintenance costs for the works. If the depreciation rate has been reduced to its minimum but still fails to cover the costs, the People's Committee of the province shall decide to subsidize the difference from the local budget as stipulated in Decision No. 131/2009/QĐ-TTg dated November 2, 2009, of the Prime Minister.

2. Determination of the Depreciation Period for Works

The People's Committee of the province shall determine the depreciation period for each work based on the proposal of the Department of Agriculture and Rural Development according to the following principles:

a) For works put into use from the date this Circular takes effect: At least five years and not more than twenty years.

b) For works already in use before the date this Circular takes effect: Based on the value recorded in the decision transferring the works to management units by the People's Committee of the province, the original cost, and the depreciation period of new works with equivalent technical standards.

3. Methods for Depreciation of Works Shall Be Implemented According to Prescribed Regulations.

Article 22. Maintenance of Works

1. Maintenance Costs of Works Shall Be Determined By One Of The Following Methods:

a) Determined According To Economic And Technical Norms Established By The Ministry Of Agriculture And Rural Development Or By The People's Committee Of The Province Based On Local Actual Conditions;

b) Determined Based On The Average Cost Of Work Maintenance Activities Over The Previous Three Years Plus Any Price Adjustment Factor (If Applicable);

c) Combining The Two Methods Specified In Points A And B Of This Clause.

2. Maintenance Costs of Works Shall Be Directly Recorded Or Gradually Allocated Into Clean Water Production And Business Costs During The Period.

Section 6: TRANSFER, LEASE, ASSIGNMENT, AND DISPOSAL OF WORKS

Article 23. Transfer of Works

1. Cases of Transfer of Works

a) To Achieve Higher Efficiency;

b) Other cases as prescribed by law.

2. The Transfer of Works May Only Be Carried Out Between State Agencies And Public Service Units.

3. The Provincial People's Council Shall Delegate Authority To Decide On The Transfer Of Works Between Agencies And Units Under Its Management.

4. Procedures And Formalities For Transferring Works

a) When There Is A Need To Transfer A Work, The Managing Unit Shall Prepare A Proposal For Transfer And Submit It To The Competent State Agency As Specified In Clause 3 Of This Article. The Proposal Includes:

- A Request For Transfer From The Unit With The Work;

- A Request For Acceptance From The Receiving Unit;

- A List Of Works To Be Processed According To Model Number 01-DM/CTNSNT Issued Along With This Circular.

b) Within Twenty Days From The Date Of Receipt Of Complete And Valid Documents, The Competent State Agency As Specified In Clause 3 Of This Article Shall Examine And Issue A Decision On The Transfer Of Works. The Decision Shall Include The Following Main Contents:

- The Unit With The Work To Be Transferred;

- The Unit Receiving The Transferred Work;

- The List Of Transferred Works;

- Responsibility for organizing implementation.

c) Within Thirty Days From The Date Of The Decision On The Transfer Issued By The Competent State Agency As Specified In Clause 3 Of This Article:

- The Unit With The Work To Be Transferred Shall Take The Lead And Coordinate With The Receiving Unit To Organize The Handover, Acceptance, Record Keeping, And Reporting According To This Circular And Relevant Laws.

- The Receiving Unit Shall Have The Responsibility To Complete Land Use Rights Documentation For The Received Work.

d) The Handover Of Works Must Be Recorded In A Protocol According To Model Number 02/BB-CTNSNT Issued Along With This Circular.

đ) Reasonable Costs Directly Related To The Handover And Acceptance Shall Be Paid By The Receiving Unit As Prescribed.

Article 24. Leasing the right to exploit works

1. Cases for leasing the right to exploit works

a) To manage and use more effectively;

b) Other cases as prescribed by law.

2. The leasing of the right to exploit works shall be carried out through public auction in accordance with the provisions of the law; in cases where the registration period for participating in the auction has expired and only one organization or individual has registered to participate and offered a price not less than the starting price, the lease may be designated.

3. The People's Council at the provincial level delegates the authority to decide on leasing the right to exploit works within the local management scope.

4. Procedures and formalities for leasing the right to exploit works

a) The managing unit of the work prepares a dossier to request leasing the right to exploit the work and submits it to the competent state agency as stipulated in Clause 3 of this Article. The dossier includes:

- A document requesting the leasing of the right to exploit the work;

- The price and term of leasing the right to exploit the work (determined based on criteria such as the revenue from water fees of the previous year before implementing the leasing of the right to exploit the work, the annual growth rate of households using water of the work, and other relevant criteria).

- A List Of Works To Be Processed According To Model Number 01-DM/CTNSNT Issued Along With This Circular.

b) Within thirty days from the date of receiving a complete and valid dossier, the competent state agency as stipulated in Clause 3 of this Article examines and issues a decision to lease the right to exploit the work. The decision includes the following main contents:

- The work being leased the right to exploit;

- The method of leasing the right to exploit (auction, designation);

- The price and term of leasing the right to exploit;

- Management and use of the proceeds from leasing the right to exploit;

- Responsibility for organizing implementation.

c) Within sixty days from the date of the decision to lease the right to exploit the work by the competent state agency as stipulated in Clause 3 of this Article, the managing unit of the work implements the leasing of the right to exploit in accordance with the provisions of the law.

5. Management and use of proceeds from leasing the right to exploit works:

a) The proceeds from leasing the right to exploit works, after deducting related costs as stipulated in point b of this clause, shall be managed and used as follows:

- For public service units: Supplement the Development Fund for Public Services;

- For enterprises, Commune People's Committees: Pay into the State budget in accordance with the provisions of the State Budget Law;

b) Reasonable costs related to leasing the right to exploit works include:

- Inventory costs;

- Costs for selecting lessees;

a) Quarterly, the Ministry of Public Security shall report the revenue, expenditure, and balance on the temporary account from the reorganization of houses and land to the Ministry of Finance for monitoring and consolidation.

Article 25. Transfer of Works

1. Cases for transferring works

a) To Achieve Higher Efficiency;

b) Other cases as prescribed by law.

2. The transfer of works shall be carried out through public auction in accordance with the provisions of the law; in cases where the registration period for participating in the auction has expired and only one organization or individual has registered to participate and offered a price not less than the starting price, the transfer may be designated.

3. The People's Council at the provincial level delegates the authority to decide on transferring works within the local management scope to the People's Committee at the provincial level.

4. Procedures and formalities for transferring works

a) The Department of Agriculture and Rural Development prepares a dossier to request the transfer and sends it to the People's Committee at the provincial level for consideration and decision. The dossier for requesting the transfer includes:

- A document requesting the transfer;

- A List Of Works To Be Processed According To Model Number 01-DM/CTNSNT Issued Along With This Circular.

b) Within thirty days from the date of receiving the dossier submitted by the Department of Agriculture and Rural Development, the People's Committee at the provincial level issues a decision to transfer the work. The decision includes the following main contents:

- List of works to be transferred;

- Method of transfer (auction, designation);

- Management and use of the proceeds from the transfer;

- Responsibility for organizing implementation.

c) Within sixty days from the date of the decision to transfer by the People's Committee at the provincial level, the Department of Agriculture and Rural Development organizes the transfer in accordance with the provisions of Clause 5 and Clause 6 of this Article.

5. Transfer of works by auction

a) Determination of the starting price:

The Department of Agriculture and Rural Development hires an organization with the necessary conditions to appraise the value of the work (excluding the value of land use rights) to send to the Department of Finance to chair the examination and report to the Chairman of the People's Committee at the provincial level to decide on the starting price. In case of inability to hire an organization with the necessary conditions to appraise the value, the Department of Finance chairs the coordination with relevant agencies to establish a Board to determine and submit to the Chairman of the People's Committee at the provincial level to decide on the starting price.

The starting price of the work must ensure consistency with the actual remaining value according to the revaluation results.

b) The Department of Agriculture and Rural Development hires an organization with the function of selling assets by auction to sell the work by auction; in case of inability to hire an organization with the function of selling assets by auction, a Board is established to sell the work by auction.

6. Transfer of works by designation

a) Determination of the transfer price by designation:

The Department of Agriculture and Rural Development hires an organization with the necessary conditions to appraise the value of the work (excluding the value of land use rights) to send to the Department of Finance to chair the examination and report to the Chairman of the People's Committee at the provincial level to decide on the transfer price. In case of inability to hire an organization with the necessary conditions to appraise the value, the Department of Finance chairs the coordination with relevant agencies to establish a Board to determine and submit to the Chairman of the People's Committee at the provincial level to decide on the transfer price.

The transfer price of the work must ensure consistency with the actual remaining value according to the revaluation results.

b) Based on the decision to transfer the work by the competent state agency and the transfer price stipulated in point a of this clause, the Department of Agriculture and Rural Development transfers the work to the buyer in accordance with the provisions of civil law.

7. Management and use of proceeds from transferring works

a) The proceeds from transferring works, after deducting related costs as stipulated in point b of this clause, are paid into the State budget in accordance with the provisions of the State Budget Law.

b) Reasonable costs related to the transfer include:

- Inventory costs;

- Cost of determining the price;

- Costs for organizing the auction;

a) Quarterly, the Ministry of Public Security shall report the revenue, expenditure, and balance on the temporary account from the reorganization of houses and land to the Ministry of Finance for monitoring and consolidation.

Article 26. Liquidation of Construction Projects

1. Cases for liquidating construction projects

a) Construction projects that are damaged and cannot be used or repairs are not effective.

b) Demolishing old construction projects to invest in new ones.

c) State agencies with authority adjust planning, making part or all of the construction project unusable for its original purpose.

d) Other cases as prescribed by law.

2. Methods of liquidating construction projects

a) Construction projects are liquidated through one of the following methods

- Sale.

- Demolition, cancellation.

b) The sale method of liquidating construction projects is conducted through public auction as prescribed by law, except in the following cases which can be sold by designation:

- The remaining value of the construction project, reassessed, is less than 50 million VND per project.

- After the registration period for participating in the auction has expired, only one organization or individual has registered to purchase at least the starting price.

3. Provincial People's Councils delegate authority to decide on the liquidation of construction projects within their jurisdiction

4. Procedures and formalities for liquidating construction projects

a) Units with construction projects as stipulated in Clause 1 of this Article prepare a proposal for liquidation and submit it to the state agency with authority as specified in Clause 3 of this Article. The dossier includes:

- A request for liquidation.

- A List Of Works To Be Processed According To Model Number 01-DM/CTNSNT Issued Along With This Circular.

b) Within twenty days from the date of receiving a complete and valid dossier, the state agency with authority as specified in Clause 3 of this Article examines and issues a decision on the liquidation of the construction project. The decision includes the main contents as follows:

- Unit with the construction project to be liquidated;

- List of construction projects to be liquidated;

- Method of liquidation;

- Management and use of funds obtained from liquidation;

- Responsibility for organizing implementation.

c) Within sixty days from the date of the liquidation decision issued by the state agency with authority as specified in Clause 3 of this Article, the unit with the construction project organizes the liquidation according to the provisions of Clause 5 of this Article.

d) After completing the liquidation process, the unit with the liquidated construction project performs accounting reduction and supplementary declaration according to this Circular and relevant laws.

5. Organizing the liquidation of construction projects

a) Organizing the liquidation of construction projects through the sale method:

- Determining the starting price and organizing the public auction of the liquidated construction project is carried out as follows:

+ The unit with the liquidated construction project establishes a Board to determine the starting price or hires an organization with the necessary conditions to appraise prices as the basis for determining the starting price. The starting price of the construction project must ensure consistency with the actual remaining value based on the reassessment results.

+ The unit with the liquidated construction project hires an organization with the function of selling assets through public auction or establishes a Board to conduct the public auction.

- Determining the selling price and organizing the designated sale of the liquidated construction project is carried out as follows:

+ The unit with the liquidated construction project establishes a Board to determine the selling price or hires an organization with the necessary conditions to appraise prices as the basis for deciding the selling price. The selling price of the construction project must ensure consistency with the actual remaining value based on the reassessment results.

+ Based on the sale decision of the state agency with authority and the selling price as prescribed above, the unit with the liquidated construction project sells to the buyer according to civil law regulations.

b) Organizing the liquidation of construction projects through demolition and cancellation:

- The unit with the liquidated construction project carries out the demolition and cancellation itself or hires another organization or individual to carry out the demolition and cancellation according to the law.

- Assets recovered from the demolition of the construction project are processed for sale according to the provisions of point a of this clause.

6. Management and use of funds obtained from the liquidation of construction projects

a) The funds obtained from the liquidation of construction projects, after deducting related costs as stipulated in point b of this clause, are deposited into the state budget according to the state budget law (for enterprises, People's Committees of communes), supplemented to the Development Fund for Public Services (for public service units). In case the funds obtained from the liquidation are insufficient to cover the costs, the shortfall is allocated from the state budget estimate (for enterprises, People's Committees of communes), from the Development Fund for Public Services (for public service units).

b) Reasonable costs related to the liquidation include:

- Inventory costs;

- Costs for demolition and cancellation;

- Cost of determining the price;

- Costs for organizing the auction;

a) Quarterly, the Ministry of Public Security shall report the revenue, expenditure, and balance on the temporary account from the reorganization of houses and land to the Ministry of Finance for monitoring and consolidation.

Article 27. Appraisal Board and Auction Sale Board for Construction Projects

1. Appraisal Board for Construction Projects

a) The Department of Finance shall establish the Appraisal Board for Construction Projects in cases where it is necessary to determine the initial price for transferring construction projects through auction or determining the transfer price under point a, Clause 5, point a, Clause 6, Article 25 of this Circular. The composition of the Board includes:

- The leader of the Department of Finance - Chair of the Board;

- Representatives from the Department of Agriculture and Rural Development, the Department of Natural Resources and Environment, the Department of Construction, the Department of Planning and Architecture (if applicable);

- Representatives from other relevant agencies.

b) The entity establishing the Appraisal Board for Construction Projects to determine the initial price for auction sale or to determine the liquidation selling price of construction projects as stipulated in Clause 5, Article 26 of this Circular. The composition of the Board includes:

- The leader of the entity - Chair of the Board;

- Representatives from the superior management agency;

- Representatives from the department directly managing the construction project;

- Representatives from the financial and accounting department of the entity;

- Representatives from the technical professional agency (if necessary);

- Other related members.

2. The Auction Sale Board for Construction Projects shall be established in cases where an organization with the function of conducting auctions cannot be hired. The agency or entity establishing the Auction Sale Board for Construction Projects shall follow the composition prescribed in point b, Clause 1 of this Article.

Chapter 3

MANAGEMENT, USE AND EXPLOITATION OF CONSTRUCTION PROJECTS FUNDED FROM MULTIPLE SOURCES

Article 28. Management, Use and Exploitation of Construction Projects Funded from Multiple Sources

For construction projects funded from multiple sources, including state budget funds, the management, use and exploitation shall be carried out as follows:

1. The People's Committee of the province shall assign the management unit of the construction project according to Articles 11, 12, 13, 14, and 15 of this Circular.

2. The management unit of the construction project and related units shall be responsible for implementing the regulations on management, use and exploitation of construction projects as stipulated in Chapter II of this Circular and organize separate monitoring according to each source of funding. Specifically, the depreciation and management of the proceeds from the processing and exploitation of construction projects funded from multiple sources shall be implemented according to the provisions of Articles 29 and 30 of this Circular.

Article 29. Depreciation of Construction Projects Funded from Multiple Sources

1. The principles of depreciation expense allocation, determination of useful life, and methods of depreciation for construction projects funded from multiple sources shall be implemented according to points a and c, Clause 1, Clauses 2 and 3, Article 21 of this Circular.

2. Depreciation expenses for construction projects shall be handled as follows:

a) For assets belonging to the state: The depreciation expenses shall be submitted to the state budget according to the laws on the state budget, except in cases where permission is granted to retain them for reinvestment in the construction project according to the decision of the People's Committee of the province.

b) For assets not belonging to the state: The depreciation expenses shall be refunded to the owner in the form of deductions from the clean water consumption price or other refund forms according to the decision of the People's Committee of the province.

Article 30. Management and Use of Proceeds from Processing and Exploitation of Construction Projects Funded from Multiple Sources

The proceeds from leasing rights for exploitation, transfer, and liquidation of construction projects after deducting related costs shall be managed and used as follows:

1. For assets belonging to the state

- For public service organizations: Supplement the Development Fund for Public Services.

- For enterprises and People's Committees at the commune level: Submit to the state budget according to the laws on the state budget.

2. For assets not belonging to the state: Refund to the owner in the form of deductions from the clean water consumption price or other refund forms according to the decision of the People's Committee of the province.

Chapter 4

IMPLEMENTATION

Article 31. Transitional Provisions

For construction projects that have decisions from competent state agencies regarding management, use, and exploitation before the effective date of this Circular, the People's Committee of the province shall instruct the Department of Agriculture and Rural Development to review again the construction projects within their jurisdictional management scope to decide on management, use, and exploitation in accordance with the provisions of this Circular.

Article 32. Effectiveness

1. This Circular takes effect from July 1, 2013.

2. The Ministry of Finance, the Ministry of Agriculture and Rural Development, and the People's Committee of the province shall be responsible for directing relevant agencies, organizations, and units to implement this Circular.

3. During the implementation process, if there are difficulties, agencies, organizations, units, and individuals are requested to promptly reflect them to the Ministry of Finance for research and resolution./.