Circular No. 55/2016/TT-BTC stipulates certain contents regarding financial management for public-private partnership investment projects and costs for selecting investors.

CIRCULAR

Regulations on certain contents regarding financial management for public-private partnership investment projects and costs for selecting investors
investment under the public-private partnership form and the cost of selecting the investor

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

Pursuant to the Law on Bidding dated December 9, 2013;

Pursuant to the Law on Public Investment dated June 18, 2014;

Pursuant to the Law on Construction promulgated on June 18, 2014;

On the basis of the Investment Law dated November 26, 2014;

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the State Budget Law No. 01/2002/QH11;

Pursuant to Decree No. 15/2015/NĐ-CP dated February 14, 2015 of the Government on public-private partnership investment;

Pursuant to Decree No. 30/2015/NĐ-CP dated March 17, 2015 of the Government detailing the implementation of certain provisions of the Bidding Law regarding the selection of investors;

Pursuant to Decree No. 32/2015/NĐ-CP dated March 25, 2015 of the Government on project cost management;

WHEREAS, Decree No. 59/2015/NĐ-CP dated June 18, 2015 of the Government on project management for investment in construction;

Pursuant to Decree No. 77/2015/NĐ-CP dated September 10, 2015 of the Government on medium-term and annual government investment plans;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Investment Department;

The Minister of Finance issues this Circular prescribing certain contents on financial management for investment projects under the public-private partnership form (hereinafter referred to as PPP) and selection costs of investors.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Circular stipulates certain contents:

a) Financial management for public-private partnership investment projects (hereinafter referred to as PPP projects), including:

- Management and use of investment preparation costs and project implementation costs of ministries, sectors, provincial People's Committees (hereinafter referred to as provincial People's Committees) in accordance with Decree No. 15/2015/NĐ-CP dated February 14, 2015 of the Government on investment under the public-private partnership model (hereinafter referred to as Decree No. 15/2015/NĐ-CP);

- Financial plan of PPP projects;

- Capital payment by the State participating in implementing PPP projects;

- Final settlement of completed PPP projects;

b) Costs in selecting investors as prescribed in Article 7 of Decree No. 30/2015/NĐ-CP dated March 17, 2015 of the Government detailing the implementation of certain provisions of the Bidding Law on selecting investors (hereinafter referred to as Decree No. 30/2015/NĐ-CP).

2. This Circular does not regulate:

a) Financial management of official development assistance funds, preferential loans from foreign sponsors, and other sources of capital decided by the Prime Minister for investment preparation as prescribed in Clause 1, Article 6 of Decree No. 15/2015/NĐ-CP;

b) Payment mechanism by land fund for investors of construction-transfer (BT) investment projects approved by the Prime Minister in Decision No. 23/2015/QĐ-TTg dated June 26, 2015.

Article 2. Applicability

1. State agencies with competent authority, investors, project enterprises, organizations, individuals related to investment preparation, project implementation, final settlement of completed PPP projects, operation, and exploitation of PPP projects.

2. Organizations and individuals participating in or related to the activity of selecting investors as prescribed in Article 7 of Decree No. 30/2015/NĐ-CP.

Article 3. Capital payment agency and account opening

1. The State Treasury Agency shall be assigned the task of supervising capital payment for investment preparation and State capital participation in implementing PPP projects of ministries, sectors, and provincial People's Committees.

2. Agencies assigned to manage investment preparation capital and State capital participation in implementing PPP projects of ministries, sectors, and provincial People's Committees shall open accounts at the State Treasury where transactions are convenient.

3. The State Treasury shall be responsible for guiding procedures for account opening in accordance with current regulations.

Article 4. Project Investor

The project investor of a PPP project is a project enterprise established by the investor in accordance with the law or the investor itself if no project enterprise is established.

Chapter II

MANAGEMENT AND USE OF INVESTMENT PREPARATION COSTS, MONITORING IMPLEMENTATION OF PPP PROJECT CONTRACTS, QUALITY OF CONSTRUCTION WORKS OF MINISTRIES, SECTORS, PROVINCIAL PEOPLE'S COMMITTEES

Article 5. Sources of funding and items of expenditure

1. The State budget adjusted in the annual regular expenditure plan of ministries, sectors, and provincial People's Committees allocated for investment preparation costs as prescribed in Points d, đ, e, g, h of Clause 1, Article 5 of Decree No. 15/2015/NĐ-CP.

2. The State budget adjusted in the annual investment development plan of ministries, sectors, and provincial People's Committees; revenue from selling bidding documents for selecting investors; capital from the selected investor for project implementation and other lawful sources allocated for items prescribed in Points a, b, c of Clause 1, Article 5 of Decree No. 15/2015/NĐ-CP.

Specifically, transportation works invested under the PPP model are permitted to supplement funds drawn from project management costs of project management boards according to Decision No. 1486/QĐ-BXD dated December 12, 2014 of the Ministry of Construction on announcing the cost standards for project management boards of competent state agencies implementing PPP projects to allocate for items prescribed in Points a, b, c of Clause 1, Article 5 of Decree No. 15/2015/NĐ-CP.

3. Other lawful sources of capital (if any).

4. Ministries, sectors, and provincial People's Committees establish or assign units to manage and implement activities within their responsibilities as stipulated in the project contract; at the same time, they are responsible for allocating funding for the project management unit to perform the rights and obligations assigned to them.

Article 6. Establishment, Approval, and Allocation of Budget Estimates

1. Basis for establishing budgets

a) The list of projects approved by the competent authority or investment project proposals submitted by investors and approved by the competent authority to be added to the PPP project list in accordance with Decree No. 15/2015/NĐ-CP;

b) Implementation plans for PPP projects approved by the competent authority;

c) Investor selection plans approved by the competent authority;

d) Policies, systems, standards, and norms as prescribed by current laws.

2. Principles for establishing budgets

a) The expenditure items specified in Clause 1, Article 5 of this Circular shall be implemented in accordance with the current regulations on establishing budget estimates for regular expenditures from the state budget;

b) The expenditure items specified in Clauses 2 and 3, Article 5 of this Circular shall be implemented in accordance with the current regulations on establishing budget estimates for development investment expenditures;

3. Establishment and Compliance with Budget Estimates

a) Ministries, sectors, provincial People's Committees, units assigned to perform tasks related to investment preparation, contract implementation supervision, and construction quality control shall establish budget estimates for each expenditure item and source of funds as stipulated in Article 5 of this Circular based on the provisions of the State Budget Law, Public Investment Law, and Clause 1 and Clause 2 of this Article, and consolidate them into their annual budget estimates according to each type of capital source, and submit them to the competent authority for approval in accordance with current regulations;

b) After the annual budget estimates have been approved by the competent authority, ministries, sectors, and provincial People's Committees shall allocate the budget estimates to the assigned units in accordance with the regulations;

c) In cases where new projects are approved by the competent authority during the year, the state agency with the authority to manage shall supplement the budget estimates, and submit them to the competent authority for approval in accordance with current regulations;

d) Competent state agencies shall be responsible for managing and using the allocated budget for its intended purpose in compliance with regulations.

Article 7. Final Accounts and Handling of Revenue Sources

1. Annually, the state agencies responsible for managing preparatory investment costs, contract implementation supervision costs, and construction quality costs shall prepare final accounts reports for each type of capital source and submit them to the competent authority for approval;

The value of final accounts for development investment costs shall be consolidated into the final accounts value of completed PPP projects;

2. All revenues from preparatory project costs repaid by selected investors, and revenues from unsold tender documents (after deducting expenses for organizing tenders as prescribed) shall be deposited into the state budget;

Article 8. Inspection and Reporting System

1. Annually, periodically, or at any time, ministries, sectors, provincial People's Committees, and financial authorities at all levels shall organize inspections of the management and use of preparatory investment funds by state agencies at the same level with the authority to manage such funds or by agencies entrusted with the management of preparatory investment costs, contract implementation supervision costs, and construction quality costs;

2. Every six months and annually, units using preparatory investment funds and project implementation funds of ministries, sectors, and provincial People's Committees shall report to the financial authorities under the same ministries, sectors, and localities about the situation of fund usage;

Chapter III

MANAGEMENT OF EXPENSES IN THE SELECTION OF INVESTORS

Article 9. Expenses During the Selection Process of Investors

Expenses during the selection process of investors include:

1. Expenses for preparing prequalification documents, tender documents, and request documents;

2. Expenses for reviewing prequalification documents, tender documents, and request documents;

3. Expenses for evaluating prequalification submissions, tender submissions, and proposal submissions;

4. Expenses for reviewing prequalification results and investor selection results.

Article 10. Standard for investment selection costs

The standard for investment selection costs shall be implemented in accordance with the provisions of Article 7 of Decree No. 30/2015/NĐ-CP.

Article 11. Management and utilization of investment selection costs

The management and utilization of investment selection costs shall be carried out in accordance with the regulations of the Ministry of Finance on managing and utilizing costs during the process of selecting contractors for projects funded by state budget capital and government bonds (currently Circular No. 190/2015/TT-BTC dated November 17, 2015).

Chapter IV

FINANCIAL PLAN OF PPP PROJECTS

Article 12. Principles for developing financial plans

1. All legitimate costs and revenues stipulated during the investment preparation phase, project implementation, and operation must be fully reflected in the project's financial plan in Vietnamese Dong.

2. Financial indicators of the project shall be calculated based on discounted cash flows using the weighted average discount rate.

3. For projects utilizing official development assistance funds and preferential loans from foreign sponsors, the financial plan shall be implemented according to the provisions of this Circular.

In cases where sponsors have different provisions in this Circular, the financial plan may be implemented according to the sponsor's regulations or according to the provisions of this Circular if the sponsor does not object.

The management and utilization of official development assistance funds and preferential loans participating in PPP projects shall be carried out in accordance with the current Government regulations on managing and utilizing official development assistance funds and preferential loans from sponsors.

Article 13. Contents of the financial plan

1. Total investment capital.

2. Capital structure:

a) Shareholders' equity;

b) State investment capital for construction support, construction auxiliary works, organization of compensation, land clearance, and resettlement as stipulated in Clause 2, Article 11 of Decree No. 15/2015/NĐ-CP;

c) Capital raised by the investor.

3. Capital raising plan:

a) Shareholders' equity:

- Total amount;

- Financing plan;

- Disbursement schedule.

b) State investment capital for construction support as stipulated in Clause 2, Article 11 of Decree No. 15/2015/NĐ-CP (if applicable):

- Total amount;

- Capital source;

- Content of support;

- Disbursement schedule.

c) Raised capital (commercial loans, preferential credit, foreign loans, other sources of capital):

- Total amount of raised capital (by each type of capital);

- Loan period, repayment period, grace period (by each type of capital);

- Interest rates for each loan source, average interest rate;

- Loan currency and exchange rate for payment;

- Conditions to ensure raised capital;

- Necessary costs related to financing (guarantee fees, commitment fees, credit insurance, brokerage fees);

- Disbursement schedule (by each type of capital);

- Debt repayment plan for raised capital (by each type of capital).

4. Proposals for preferential measures to ensure the financial plan of the project (if any).

5. Return on shareholders' equity of the investor.

6. Implementation period, operation period, capital recovery period, and profit period of the project.

7. Capital recovery and profit plan of the investor:

a) Anticipated legitimate sources of income;

b) Anticipated service charges and prices;

c) Anticipated revenue from each legitimate source of income;

d) For Build-Transfer-Lease (BTL) contracts and Build-Lease-Transfer (BLT) contracts, there must be a method for the State to pay the investor.

đ) For Build-Transfer (BT) contracts, a land fund equivalent to the payment to the investor must be anticipated.

8. Indicators to assess the feasibility of the financial plan:

a) The competent authority deciding to select investment projects based on the following criteria:

- Net Present Value (NPV);

- Internal Rate of Return (IRR);

- Benefit-Cost Ratio (B/C);

- Return on Equity (ROE);

- Duration of the project contract;

- Sensitivity of the aforementioned financial indicators due to changes in total investment capital, operating costs, revenue, and contract duration.

b) Based on the specific nature, the competent state management agency may specify additional financial indicators such as debt-to-equity ratio, solvency ratio, quick asset conversion rate, liquidity ratio, and capital preservation measures according to current laws to select effective investment projects.

Article 14. Total Investment Capital

1. For projects involving construction activities: The total investment capital is the total construction investment amount determined in accordance with laws on construction investment and the initial working capital to put the project into operation according to standards and technical specifications approved by competent authorities.

2. For projects without construction investment activities: The total investment capital is the entire investment costs to put the project into operation and the operating costs of the project in the first year approved by competent authorities.

3. State support capital for implementing the project as stipulated in Article 11 of Decree No. 15/2015/NĐ-CP shall not be included in the total investment capital when determining the equity ratio.

Article 15. Equity Capital

1. Equity capital of the project enterprise

a) The equity capital of the project enterprise is the equity capital that the investor commits to contribute in accordance with the charter of the project enterprise;

b) The investor must ensure the equity ratio of the project enterprise over the total investment capital as prescribed in Article 10 of Decree No. 15/2015/NĐ-CP and it must be stipulated in the project contract.

2. Equity capital of the investor

a) The equity capital of the investor is determined based on the most recent annual financial report of the investor audited by an independent auditing unit and the report on the use of the investor's equity capital at the time of participating in the project. In cases where the investor is a newly established organization within the year, the equity capital of the investor is determined based on the financial report audited from the date of establishment to the date of participation in the project; simultaneously, the representative of the owner, the owner, or the parent company must issue a written commitment to ensure sufficient equity capital according to the project's financial plan;

b) If the investor participates in multiple projects at the same time, they must ensure the total equity capital is sufficient for all committed equity investments in all projects as required;

c) The investor is responsible for submitting to the competent state authority the plan to ensure the source of equity capital as committed and bears full responsibility under the law for the accuracy and legality of data and documents related to equity capital, the list of ongoing projects, and the allocation of equity capital for ongoing projects up to the time of negotiating the project contract.

Article 16. Raised Capital

1. The raised capital as of the time of negotiating the project contract is determined based on the commitment or written agreement between the capital provider and the investor. The total committed capital provided by the capital provider must be at least equal to the capital the investor needs to raise.

2. The raised capital must be consistent with the implementation schedule of the project specified in the project contract.

3. The investor and the project enterprise have the responsibility to report to the competent state authority on the progress of raising capital as stipulated in the project contract.

Article 17. Interest on Borrowed Investment Capital

1. Interest on borrowed investment capital includes: Interest during the construction period included in the total project investment capital, interest during the business and exploitation period included in the project's financial plan. Interest on borrowed investment capital only applies to the portion of capital the investor must borrow; interest on the investor's committed equity capital in the project contract is not calculated.

2. The interest calculation period starts from the disbursement of the first loan; the maximum interest calculation period does not exceed the project implementation period specified in the project contract. Interest on borrowed capital is calculated based on the committed loan amount and the progress of raising various sources of capital in the project contract.

3. The interest rate on borrowed capital is calculated in specific cases as follows:

a) In the case of tendering to select investors: The interest rate on borrowed capital is determined based on the bidding documents of the selected investor;

b) In the case of appointing investors: The interest rate on borrowed capital is determined through negotiation and agreement between the competent state authority and the investor. The reference interest rate for negotiation and agreement shall not exceed 1.3 times the simple average yield of government bonds with a ten-year term issued through auction in the three months prior to the time of negotiating the project contract.

4. The determination of the interest rate on borrowed capital as stipulated in Point b Clause 3 of this Article serves as the basis for calculating the interest rate on borrowed capital in the Project Proposal and Feasibility Study Report for approval by competent authorities.

Article 18. Investor's Profit

1. In the case of bidding to select investors: The investor's profit shall be determined based on the results of selecting the investor.

2. In the case of appointing investors: The investor's profit shall be estimated based on the Feasibility Study Report of the project according to the principle of ensuring the effectiveness indicators of the project and the negotiation results between the competent state agency and the investor.

The competent state agency has the responsibility to refer to the average profit level of businesses operating in the corresponding field, the profit of similar projects compared to the market level of the project area, and the profit of other industries and fields to serve as a basis for negotiating with the investor.

3. If necessary, based on the specific characteristics of each industry, the Ministry in charge shall coordinate with the Ministry of Finance to establish a profit framework for PPP projects under its management scope.

Chapter V

PAYMENT OF THE STATE INVESTMENT CAPITAL PARTICIPATING IN IMPLEMENTING PPP PROJECTS

Article 19. State Investment Capital

1. The state investment capital and the use of state investment capital participating in implementing PPP projects shall be carried out in accordance with the provisions of Article 11 of Decree No. 15/2015/NĐ-CP .

2. The state investment capital participating in implementing the project must be specifically stipulated in the project contract regarding the content of support, sources of capital, and payment schedule.

3. The state investment capital shall only be paid after the completed construction volume has been inspected and accepted. The amount of capital to be paid shall be calculated based on the proportion of the sources of investment capital stipulated in the project contract relative to the value of the inspected and accepted completed construction volume.

Article 20. Payment of State Investment Capital Supporting Construction Works of the Project, Ancillary Works, Organization of Compensation, Land Clearance, and Resettlement

1. Payment Documents

1.1. Legal Documents to be submitted once

The agency entrusted to manage the state capital portion is responsible for submitting legal documents of the project to the Treasury where the account is opened before or at the same time as the first request for payment of state capital for the project implementation, including:

a) The project contract, supplementary agreements to the contract (if any), and accompanying legal documents of the project contract;

b) Contracts between the investor, project enterprise, and contractor or supplier, and accompanying documents such as: Contract appendices, special conditions, general conditions related to payment; task assignment documents or internal contracts for cases where the investor implements directly;

c) In cases where the investor, project enterprise implements directly without using contracts: Budget estimates and approval decisions by the competent authority for each work item or sub-project. For land clearance and resettlement activities, a compensation plan approved by the competent authority must also be attached.

1.2. Payment Documents

a) In cases where the project enterprise and investor form one party of the project contract as stipulated in Point a Clause 3 Article 31 of Decree No. 15/2015/NĐ-CP or the investor directly implements the BT project or Group C project as stipulated in Clause 2 Article 42 of Decree No. 15/2015/NĐ-CP:

- For works implemented through construction contracts with contractors or suppliers:

+ Completion acceptance certificate for the value of completed work volume, Value determination table for completed work volume proposed for payment prepared by the investor according to Appendix 01. In cases of additional work volumes outside the contract, the investor prepares the completion acceptance certificate for the value of additional work volume outside the contract, Value determination table for additional work volume outside the contract proposed for payment according to Appendix 02;

+ Request for payment of investment capital for completed work volume from the agency entrusted to manage the state investment capital participating in PPP project implementation according to Appendix 03;

+ Financial transfer documents issued in accordance with the accounting document system of the Ministry of Finance.

- For works implemented directly by the investor, project enterprise without using construction contracts:

+ Completion acceptance certificate for the value of completed work volume;

+ Approved budget estimate for each work item by the competent authority;

+ Request for payment of investment capital for completed work volume from the agency entrusted to manage the state investment capital participating in PPP project implementation according to Appendix 03;

+ Financial transfer documents issued in accordance with the accounting document system of the Ministry of Finance.

b) In cases where the competent state agency and investor issue a document allowing the project enterprise to take over and implement the rights and obligations of the investor as stipulated in the Investment Registration Certificate and project contract as stipulated in Point b Clause 3 Article 31 of Decree No. 15/2015/NĐ-CP:

- For works implemented through construction contracts with contractors or suppliers:

+ Completion acceptance certificate for the value of completed work volume, Value determination table for completed work volume proposed for payment prepared by the investor according to Appendix 01. In cases of additional work volumes outside the contract, the investor prepares the completion acceptance certificate for the value of additional work volume outside the contract, Value determination table for additional work volume outside the contract proposed for payment according to Appendix 02;

+ Request for payment of investment capital for completed work volume for the project enterprise from the agency entrusted to manage the state investment capital participating in PPP project implementation according to Appendix 03;

+ Financial transfer documents issued in accordance with the accounting document system of the Ministry of Finance.

- For works implemented directly by the project enterprise without using construction contracts:

+ Completion acceptance certificate for the value of completed work volume;

+ Approved budget estimate for each work item by the competent authority;

+ Request for payment of investment capital for completed work volume from the agency entrusted to manage the state investment capital participating in PPP project implementation according to Appendix 03;

+ Financial transfer documents issued in accordance with the accounting document system of the Ministry of Finance.

1.3. Time Limit for Payment of State Investment Capital

a) The annual capital plan allocated for the state investment capital participating in the project shall only be paid for the completed volume that has been inspected and accepted as stipulated (currently up to December 31 of the planning year); the payment deadline for the completed volume shall be implemented as stipulated (currently up to January 31 of the following year);

b) In cases where the state investment capital is not fully paid within the planning year, the competent state agency shall report to the competent authority for permission to extend the implementation and payment period according to regulations.

2. Advance Payment, Payment of State Investment Capital Supporting Construction Works as stipulated in Point c Clause 2 Article 11 of Decree No. 15/2015/NĐ-CP

a) In cases where the state investment capital implements all construction works of ancillary facilities, organization of compensation, land clearance, and resettlement:

The project's advance payment and settlement files, documents to serve the control and capital settlement work of the settlement agency; the content of advance payments and settlements for completed volumes; the State Treasury's principles for controlling settlements; the advance payment period and settlement deadlines shall be implemented according to the Ministry of Finance’s regulations on managing and settling investment capital (as amended and supplemented if applicable).

b) In cases where state investment participates in implementing part of the construction works, compensation organization, land clearance, and resettlement activities: The procedures, settlement files, and settlement deadlines shall be carried out in accordance with the provisions of Article 19 and Article 20 of this Circular.

Article 21. Settlement of Investment Capital by Investors under BOT, BT Contracts and Similar Contracts

1. Principles of Settlement

a) The settlement of state investment capital provided to investors for services under BOT contracts, BT contracts, and other similar contracts as stipulated in Point b, Clause 2, Article 11 of Decree No. 15/2015/NĐ-CP must comply with the contents of the project contract signed between the competent state agency and the investor and the regulations on managing and settling investment capital sourced from the state budget.

Conditions for settlement, amount of capital to be settled, time of settlement, settlement deadline, and settlement files must be specified in the project contract.

b) State investment capital will be settled from the date the service is provided as agreed upon in the project contract. Settlements will be made periodically based on the quantity and quality of services agreed upon in the project contract.

2. Payment Documents:

a) Legal documents submitted once

The agency entrusted with managing the state's portion of the capital has the responsibility to submit legal documentation to the State Treasury at the account opening location as the basis for settlement control, including: The project contract, supplementary contract appendices, and legal documents accompanying the project contract.

b) Settlement Files

- A record confirming the quantity and quality of services provided by the investor, project enterprise;

- A request for settlement of state investment capital (with confirmation from the unit entrusted with managing the project under the competent state agency);

- Financial transaction vouchers issued in accordance with the accounting voucher system of the Ministry of Finance.

c) Annual Settlement Deadline for State Investment Capital

The annual capital plan allocated for state investment settlement for the project shall be completed by December 31 of the planning year (except in cases where the competent authority permits an extension of implementation and capital settlement, which shall be carried out according to the competent authority's regulations).

Article 22. Final Settlement of State Investment Capital for Project Implementation

1. The state agency entrusted with managing state investment capital is responsible for preparing the final settlement report for the state-supported capital for constructing auxiliary works, organizing compensation, land clearance, and resettlement; submitting it to the competent authority for review and approval as the basis for final settlement of the completed project.

2. The state agency entrusted with managing state investment capital is responsible for consolidating the annual expenditures of state investment capital participating in the activities stipulated in Point a and b, Clause 2, Article 11 of Decree No. 15/2015/NĐ-CP into the final settlement of the completed project in accordance with the Ministry of Finance's regulations.

Article 23. Inspection and Reporting System

1. Annually, periodically, or at any time, ministries, sectors, provincial People's Committees, and financial agencies at all levels shall organize inspections on the management and use of state capital for PPP projects.

2. Quarterly, investors and project enterprises shall be responsible for reporting to the agency managing the state capital on the situation regarding the use of state capital participating in PPP projects.

Chapter VI

FINAL ACCOUNTING OF PPP PROJECTS COMPLETED

Article 24. Principles of Final Accounting

For PPP projects with construction components, after the completion and acceptance of the project for use, final accounting of the construction investment must be carried out according to the Circular of the Ministry of Finance on final accounting of completed projects funded by state capital (currently Circular No. 09/2016/TT-BTC dated January 18, 2016 of the Ministry of Finance) and this Circular.

Article 25. Preparation, Submission, and Approval of Final Accounting

1. The entity preparing the completion settlement report: The project sponsor or investor in cases where a project company is not established.

2. The dossier for approval of final accounting (one set sent to the authority for examination and approval of final accounting): dossier as prescribed in the Circular of the Ministry of Finance on final accounting of completed projects funded by state capital, project contract, and annexes to the project contract.

3. Authority to approve final accounting: Minister, Head of a ministry-level agency, Chairman of the Provincial People's Committee, Chairman of the District People's Committee when authorized by the Provincial People's Committee to sign and implement the project contract.

4. Entity reviewing the settlement:

a) For projects managed by ministries or sectors: Units under the management of ministries or sectors shall organize the examination.

b) For projects managed by provincial people's committees: The provincial Department of Finance shall conduct the review.

c) For projects where the District People's Committee signs and implements the project contract: The District Department of Finance and Planning shall conduct the examination.

5. Audit of final accounting report:

The competent state agency shall agree with the investor to select an independent auditing organization with capability and experience to audit the value of construction investment in the project.

6. Content of the settlement review shall be implemented in accordance with the provisions of the Ministry of Finance’s Circular on the settlement of completed projects funded by state capital.

Chapter VII

IMPLEMENTING PROVISIONS

Article 26. Effective date

This Circular takes effect from May 5, 2016, and replaces Circular No. 166/TT-BTC dated November 17, 2011 of the Ministry of Finance on the management and use of project preparation costs and operational funds of competent state agencies during the management of projects; certain financial indicators of project contracts; conditions and methods of payment to investors implementing projects under Build-Transfer contracts; final accounting of project values implemented under Build-Operate-Transfer, Build-Transfer-Operate, and Build-Transfer contracts.

Article 27. Transitional Provisions

1. For project proposals and feasibility studies approved before the effective date of this Circular: Competent state agencies shall base their review and adjustment of financial plans according to the provisions of this Circular to proceed with subsequent steps.

2. For project contracts currently being negotiated but not yet signed by the effective date of this Circular: Competent state agencies shall base their review and adjustment, updating relevant clauses in the project contract according to the provisions of this Circular.

3. For project contracts and annexes to project contracts signed before the effective date of this Circular shall continue to be implemented according to the signed project contract and annexes.

4. For other cases, ministries, sectors, and provincial People's Committees shall send documents to the Ministry of Finance for study and guidance./.