Circular No. 56/2010/TT-BNNPTNT stipulates certain contents in the operation of organizations managing and operating water conservancy works.

CIRCULAR

Provisions on certain contents in the activities of organizations

managing and operating water conservancy works

______________________

Pursuant to Decree No. 01/2008/ND-CP dated January 3, 2008, and Decree No. 75/2009/ND-CP dated September 10, 2009 of the Government stipulating functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development;

Pursuant to Ordinance No. 32/2001/PL-UBTVQH10 dated April 4, 2001 on Exploitation and Protection of Water Conservancy Works;

Pursuant to Decree No. 143/2003/ND-CP dated November 28, 2003, and Decree No. 115/2008/ND-CP dated November 14, 2008 of the Government detailing implementation of certain provisions of the Ordinance on Exploitation and Protection of Water Conservancy Works;

Pursuant to Decree No. 31/2005/ND-CP dated March 11, 2005 of the Government on production and supply of public goods and services;

Pursuant to Decision No. 256/2006/QD-TTg dated November 9, 2006 of the Prime Minister on Issuing Procurement Regulations for Ordering, Assigning Orders, and Implementing Plans for Production and Supply of Public Goods and Services;

To manage and operate water conservancy works effectively when implementing policies on exemption and reduction of water conservancy fees, the Ministry of Agriculture and Rural Development hereby stipulates certain contents for performing management, operation, and protection tasks of water conservancy works as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope and Applicability

Article 1. This Circular stipulates certain contents in the activities of organizations managing and operating water conservancy works funded by state budget or originating from state budget. Water conservancy works funded from other sources are encouraged to apply this Circular.

Article 2. The subjects applying this Circular are agencies and organizations entrusted with the task of managing, operating, and protecting water conservancy works through ordering using state budget funds.

Article 2. Interpretation of Terms

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

1. Ordering the performance of management and operation tasks of water conservancy works: This refers to the act of the ordering agency selecting and designating units to perform management, operation, and protection tasks of water conservancy works to provide irrigation, drainage, and water supply services for production, livelihood, economy, and society, meeting requirements regarding quantity, quality of products, unit price, time, etc., as prescribed.

2. Ordering agency: These are agencies and units entrusted by competent authorities.

a) The Ministry of Agriculture and Rural Development or agencies authorized by the Ministry to order the performance of management, operation, and protection tasks of water conservancy work systems under its management.

b) Provincial People's Committees or units entrusted or authorized by provincial People's Committees are ordering agencies for the performance of management, operation, and protection tasks of water conservancy works under provincial management.

c) For water conservancy works already delegated to district-level People's Committees for management, the district-level People's Committee is the ordering agency.

3. Units receiving orders: These are organizations managing and operating water conservancy works as stipulated in Article 5 of Circular No. 65/2009/TT-BNNPTNT dated October 12, 2009 of the Ministry of Agriculture and Rural Development on Guidelines for Organizing Activities and Delegating Management and Operation of Water Conservancy Works (hereinafter referred to as Circular 65).

4. Ordered products: Ordered products are calculated based on area (hectares) or volume of water (cubic meters) for irrigation, drainage, and water supply, etc., upon completion of all management and operation tasks of water conservancy works as prescribed in Article 4 of Circular 65 and compliance with current procedures and regulations. For special projects where area (hectares) or volume of water (cubic meters) cannot be determined, specific tasks to be performed must be clearly defined.

5. Price, unit price, ordering contract, ordering dossier:

a) Ordered price: This is the financial amount that the ordering agency commits to pay to the receiving unit to complete the entire volume of ordered products, ensuring quality, progress, time, and other requirements stipulated in the ordering dossier and ordering contract under normal weather conditions. In case of natural disasters (drought, typhoons, floods, etc.), supplementary budgets or remediation plans are prepared and submitted for approval according to current regulations.

b) Unit price for ordering: The unit price for ordering is calculated per unit of ordered product. It is derived from the ordering budget, based on the application of economic and technical norms, cost standards issued by competent state management agencies; state policies; prices of raw materials, energy, labor, construction machinery, etc.

c) Ordering contract: An ordering contract for performing management and operation tasks of water conservancy works (hereinafter referred to as the ordering contract) is a legal document binding the rights and obligations of the parties involved in the contract. Disputes between the parties involved in the contract are resolved based on the signed and effective contract; disputes not resolved within the contract are settled according to the law and related regulations.

d) Ordering dossier: This includes all documents used for ordering, including request files, proposal files, ordering plans, ordering contracts, standards, regulations, procedures, and relevant legal documents.

Chapter II

PROVISIONS ON IMPLEMENTATION OF MANAGEMENT AND OPERATION TASKS OF WATER CONSERVANCY WORKS THROUGH ORDERING METHODS

Article 3. Establishing the ordering plan

1. Basis for establishing the ordering plan:

a) The socio-economic development tasks approved by the People's Council and People's Committee at provincial level;

b) The annual tasks assigned by competent authorities to the agricultural sector and rural development (agriculture, forestry, fisheries, salt production);

c) Annual report on the results of managing and operating waterworks (by units receiving orders within their jurisdiction);

d) Report on the current status of works, machinery, equipment, and operational capacity of works and systems (by units receiving orders);

đ) Other bases (if any).

2. Establishing the ordering plan: Each year, the ordering agency must establish an ordering plan for managing and operating waterworks to serve irrigation, drainage, water supply, etc., to be submitted to competent authorities for approval according to regulations. The ordering plan is established for each work or system of works (according to management units). The ordering plan must clearly specify the following contents:

2.1. Tasks of managing and operating waterworks to serve irrigation, drainage, water supply, salinity prevention, sweet water retention, etc. (main tasks)

a) Irrigation area;

b) Drainage area;

c) Combined irrigation and drainage area;

d) Water supply task;

đ) Other tasks.

2.2. Financial plan.

a) Revenue plan: Prepare revenue budget for specific objects:

- Revenue compensation due to exemption from water resource fees (for exempted objects)

- Water resource fee revenue from objects subject to payment (non-exempted)

- Other revenue (if any)

b) Expenditure plan: Budget for management and operation activities of waterworks in the planning year. The expenditure plan is compiled into three main categories of expenses:

- Depreciation and major repair costs for assets subject to depreciation and major repairs according to regulations (investment cost category).

- Costs for operating waterworks (wages, allowances, and other payments related to wages; fuel and energy costs for irrigation, drainage, and water supply operations; material and fuel costs for operation and maintenance of works; enterprise management costs and other costs).

- Regular maintenance costs for fixed assets.

c) Subsidy and price support plan (if revenue is insufficient to cover expenditures).

The consolidated ordering plan is prepared according to Model 1 in the Appendix and accompanied by supplementary tables to explain and clarify data in the table.

3. Approving the ordering plan: The ordering agency is responsible for submitting the ordering plan to competent authorities for review and approval, serving as the basis for consolidation in the annual budget plan.

a) The Ministry of Agriculture and Rural Development (or authorized agency) approves the ordering plan for managing, operating, and protecting waterworks under its management after obtaining the opinion of the Ministry of Finance.

b) The People's Committee at provincial level (or authorized agency) approves the ordering plan for managing, operating, and protecting waterworks within the province.

Article 4. Preparing Request Documents

After the ordering plan has been approved by competent authorities, the ordering agency prepares request documents. Based on the scale, nature, and characteristics of the works, the content and requirements for managing and operating waterworks are specified accordingly. The request documents should include the following main contents:

a) Overview of the ordering task (name of the work or system of works, ordering agency, time and location, source of funds, etc.);

b) Requirements regarding capability and experience;

c) Content and requirements for management work and quantity of ordered products (final products);

d) Scope of management;

đ) Product quality requirements;

e) Requirements regarding time and location of implementation;

g) Requirements regarding organization and technical management and operation plans for works;

h) Requirements regarding price and unit price of orders;

i) Requirements regarding preparation and submission time for proposal documents;

k) Other contents (as required by each work).

The request documents must achieve fairness, transparency, rationality, and select units with sufficient capability to effectively perform the management and operation tasks of waterworks according to state regulations and at the most reasonable order prices.

The request documents are sent to organizations managing and operating waterworks to prepare proposal documents.

Article 5. Preparation of Proposal Documents

The entity receiving the order shall be responsible for preparing proposal documents to submit to the ordering agency for review and approval. The contents of the proposal documents shall be prepared according to the requirements set forth in the request document, particularly detailing the organizational plan, technical management solutions for operation, exploitation, repair, and protection of the works (including in cases of natural disasters such as floods, storms, droughts), financial plans. The proposed plan includes the following main contents:

1. A comprehensive report on the implementation of the task of managing and exploiting waterworks.

The report summarizes the results of the tasks assigned and completed during the year, including:

a) Regarding organization and management structure for the exploitation of the works of the entity (organizational structure, professional capacity, leadership management work, direct management units for operation, repair, and protection; strengths and weaknesses)

b) Regarding the implementation of assigned tasks (assigned tasks, level of completion, reasons)

c) Regarding the current status of the works, machinery and equipment, and maintenance and protection work (assigned tasks, level of completion, reasons)

d) Regarding finance (assigned indicators, level of completion, reasons)

đ) Recommendations for corrective measures.

2. Plan for organization, technical management, operation, exploitation, repair, and protection of the works.

2.1. Organizational plan: Clearly describe the plan for arranging and deploying staff to perform tasks (leadership and command departments; technical management, irrigation, drainage, water supply management; financial management and direct management units at each work site, station cluster). The organizational plan is illustrated through diagrams and clearly describes the number, professional qualifications, and tasks assigned to each department and unit; relationships between departments and units and measures to respond to natural disasters such as droughts, floods, storms; methods of cooperation with organizations using water together and beneficiaries participating in the management, exploitation, and protection of the works. A summary table of the capabilities and experience of staff is compiled according to Appendix 2.

2.2. Technical management, operation, exploitation, repair, and protection plan for the works:

a) Management and regulation plan for water distribution for irrigation, drainage, water supply, saltwater intrusion prevention, sweet water retention, etc., serving production, livelihood, economy, and society according to the planned schedule, consistent with the mission of the works and achieving high efficiency; water resource management, regulation of water distribution throughout the area; monitoring, collecting data and information according to regulations; protecting water quality; preventing and combating water resource depletion and drying up, etc.

b) Technical operation plan for the works

- Operation plan for the works and system, and additional proposals to suit the current status of the works and the irrigation, drainage, and water supply tasks.

- Contents and methods for implementing inspection, monitoring, identifying, and promptly addressing any incidents in the works and system.

- Contents and methods for implementing maintenance; repair, dredging, and repairing of the works, machinery, and equipment, management houses (ensuring that the works do not deteriorate, operate safely). Inspection and repair of the works before and after the rainy season.

- Patrol and protection plan for the works and machinery and equipment (ensuring safe and effective operation of the works, preventing encroachment, even in case of natural disasters).

- Other proposals (as required by each work).

c) Financial management and utilization plan for effectively using allocated capital, assets, and all other resources and other integrated business activities as prescribed. Other business activities (outside the main tasks) must clearly explain the usage plans for the works, machinery and equipment, labor, technology, land, scenery, and capital mobilization, etc., without affecting the management and exploitation of waterworks.

3. Financial plan for implementing the tasks of managing, operating, exploiting, repairing, and protecting the works.

Based on the organizational management and exploitation plan for waterworks and the integrated business production plan already established, the entity prepares a financial plan including revenues and expenditures as prescribed.

3.1. Revenue and expenditure plan from service activities such as irrigation, drainage, water supply, etc. (main tasks).

From the organizational and technical management, operation, exploitation, repair, and protection plan for the works proposed by the entity, determine the contents of the work to be carried out as the basis for preparing the revenue and expenditure plan (budget for revenue and expenditure to implement the management, exploitation, and protection of waterworks). When preparing the budget, note:

a) Revenues and cost items are established according to the guidelines in Circular No. 11/2009/TT-BTC dated January 21, 2009, of the Ministry of Finance. Based on economic and technical norms, cost norms issued by competent authorities; wage and salary policies; prices of materials, raw materials, energy, machinery and equipment, etc., prepare a budget for costs for each task as the basis for proposing prices and unit prices for orders. A summary table of the revenue and expenditure budget is compiled according to the model in Appendix 3 and accompanied by sub-tables to explain and detail the figures.

b) For regular repair cost items, a rough estimate must be prepared for each work or specific project. A summary table of the regular repair cost budget is compiled according to the model in Appendix 3.

3.2. Revenue and expenditure plan from the exploitation of integrated business activities of waterworks. The entity prepares a detailed budget for revenues and expenditures according to current regulations, clearly explaining the activities, usage plans for the works, machinery and equipment, labor, technology, land, scenery, and capital, etc. Clearly separate the revenue and expenses from the exploitation of integrated business activities, ensuring that revenue from the main production and business activities is not used to subsidize integrated business activities.

The budget for revenue and expenditure to perform the tasks of managing, operating, and protecting water conservancy works serves as the basis for the ordering agency to submit the budget for ordering to the competent authority for approval, to determine the price and unit price for ordering, and the level of subsidy. The subsidy amount is the difference between the proposed ordering price and the value of water conservancy fees collected (including the portion subsidized by the state due to exemptions and reductions and the collection from liable payers) as stipulated in Decree No. 115/2008/NĐ-CP dated November 14, 2008 of the Government. The total shall be compiled according to Model 5 in the Appendix.

Article 6. Evaluation of proposal documents and submission for approval of plans, contents, products, and budgets for ordering.

1. Evaluation of proposal documents.

The ordering agency shall organize the evaluation of proposal documents and submit them to the competent authority for approval regarding the plan, content of management and operation tasks of water conservancy works, quantity of products, budget for ordering (price or unit price for ordering), and the entity accepting the order.

The ordering agency shall establish a Review Board with the participation of relevant state management agencies (finance, planning, etc.) to evaluate proposal documents, unify the plan, content of management and operation tasks of water conservancy works, quantity of products, and budget for ordering (price, unit price for ordering) and submit them to the competent authority for approval.

During the evaluation of proposal documents, the ordering agency may invite the entity managing and operating water conservancy works to explain or modify and supplement necessary information to clarify the proposal documents (compliance with requirements on capacity, experience, organizational and technical plans, financial plans, etc.) and may conduct on-site inspections if deemed necessary.

The main responsible entity shall bear responsibility for preparing the documents to be submitted to the competent authority for approval. Proposal documents shall only be submitted for approval when they fully meet the requirements stated in the request document and have a reasonable proposed ordering price that does not exceed the approved budget. If it exceeds the budget, a report explaining the reasons must accompany the documents submitted for approval.

2. Examination and approval of the content of management and operation tasks of water conservancy works, quantity of products, budget for ordering (price or unit price for ordering), and the entity accepting the order.

a) The Ministry of Agriculture and Rural Development shall approve the plan, content of management and operation tasks of water conservancy works, quantity of products, budget for ordering (price or unit price for ordering), and the entity accepting the order for water conservancy works under its management.

b) The People's Committee of the province shall approve the plan, content of management and operation tasks of water conservancy works, quantity of products, budget for ordering (price or unit price for ordering), and the entity accepting the order for water conservancy works under provincial management.

c) For water conservancy works delegated to the management of the People's Committee of the district, the People's Committee of the district shall approve the plan, content of management and operation tasks of water conservancy works, quantity of products, budget for ordering (price or unit price for ordering), and the entity accepting the order.

3. As for regular maintenance costs already approved in the ordering budget, the entity accepting the order must prepare design drawings and construction estimates before implementation (in accordance with regulations on investment cost management). The value of the regular maintenance estimate must not exceed the approved preliminary estimate (except for provisions in Clause 10, Article 9 of this Circular). If the entity accepting the order lacks the conditions and capacity to prepare design drawings and construction estimates, it may hire consulting organizations or individuals with sufficient qualifications and experience to prepare them. Consulting organizations or individuals shall be responsible under the law and to the entity accepting the order for the design drawings and construction estimates.

The authority to approve design drawings and construction estimates for regular maintenance of fixed assets and water conservancy works is as follows:

a) The Water Resources Administration (for entities under the Ministry's management), the Department of Agriculture and Rural Development (for entities under provincial management) shall examine and approve design drawings and construction estimates for projects (or project components) with a regular maintenance budget exceeding VND 300 million.

b) Entities accepting orders for the management and operation of water conservancy works shall examine and approve design drawings and construction estimates for regular maintenance of remaining projects (or project components) and send the results of approval to the Water Resources Administration (for entities under the Ministry's management), the Department of Agriculture and Rural Development (for entities under provincial management) for monitoring and management.

c) For water conservancy works delegated to the management of the People's Committee of the district, the People's Committee of the district shall examine and approve. However, for projects with a regular maintenance budget exceeding VND 300 million, prior to approval, opinions from the Department of Agriculture and Rural Development must be obtained.

If the entity accepting the order lacks the conditions and capacity for examination, it may hire consulting organizations or individuals with sufficient qualifications and experience to conduct examinations before approval. Consulting organizations or individuals shall be responsible under the law and to the entity accepting the order for the results of the examination.

Article 7. Negotiation, completion, and signing of procurement contracts

Based on the approval decision, the managing authority invites the service provider to negotiate and complete the procurement contract before implementation, based on the approved plan, management and operation tasks for waterworks projects, product quantities, procurement budget estimates.

Article 8. Procurement for medium and small-scale waterworks projects

For medium and small-scale waterworks projects (with less complex technical requirements for management and operation that can be entrusted to Water Cooperation Organizations under Article 16 of Circular 65), a simplified procurement process shall be applied as follows:

a) Based on the approved procurement plan, the procuring entity prepares the procurement budget estimate for the management, operation, and protection of the waterworks project, and drafts a procurement contract (draft) for the Water Cooperation Organization determined to have sufficient capacity and experience to perform the task. The content of the draft procurement contract is established according to Article 10 of this Circular.

b) Based on the procurement budget estimate and the draft procurement contract, the procuring entity negotiates with the Water Cooperation Organization to finalize the procurement budget estimate and complete the procurement contract.

c) After negotiation, the procuring entity finalizes the procurement budget estimate and completes the procurement contract for submission to the competent authority for approval (as stipulated in Clause 2, Article 6 of this Circular).

d) Within seven days from the date of approval by the competent authority, the procuring entity invites the service provider to sign the contract and implement it.

Chapter III

PROCUREMENT CONTRACTS AND ACCEPTANCE AND PAYMENT OF PROCUREMENT CONTRACTS FOR IMPLEMENTATION OF MANAGEMENT AND OPERATION TASKS

OF WATERWORKS PROJECTS

Article 9. Principles for Signing and Managing Implementation of Procurement Contracts

1. Principles for Signing Procurement Contracts.

Procurement contracts are signed on the principles of equality, cooperation, honesty, and compliance with the law. All agreements must be recorded in the contract. A procurement contract may only be signed after the procurement proposal has been approved by the competent authority and all parties have concluded negotiations.

The contract price (contract signing price) shall not exceed the value of the approved procurement budget estimate in the proposal, except in cases of additional volume and with permission from the competent authority.

The procuring entity (referred to as Party A) may enter into a procurement contract with one or more service providers (referred to as Party B). In cases where multiple Parties B are involved, the contents of these contracts must ensure consistency and synchronization during the implementation of management, operation, and protection tasks for the waterworks project, fully meeting the requirements for quantity, quality, unit price, and time as prescribed.

2. Management of Implementation of Procurement Contracts.

Both the procuring party and the service provider within their respective rights and obligations are responsible for planning and organizing the implementation of the contract according to the agreements signed in the contract. The management of contract implementation includes: quantity and quality management, progress management, contract price management, safety management of the works, labor safety, environmental hygiene, fire prevention and control, contract change and adjustment management, and other relevant matters (if any) as prescribed to achieve the objectives of the signed contract.

Article 10. Contents of the Order Contract

Depending on the scale, characteristics, technical management operation, maintenance, and protection requirements of each project, the order contract may include all or part of the following basic contents:

1. General information about the contract: Contract number, contract name, and bases for signing the contract;

2. Information about the parties involved in signing the contract including: Trading name of the party involved in signing the contract; representatives of both parties; registered business address or transaction address; tax code, business registration certificate, bank account number; telephone, fax, email; power of attorney (if signed by proxy); contract signing time; other related information;

3. Definitions and interpretations: Certain terms must be defined and interpreted to avoid misunderstanding and facilitate drafting, negotiation, and implementation of the contract;

4. Law and language used in the contract;

5. Payment currency: The contract must clearly specify the currency used for payment and the payment method;

6. Quantity and scope of work: The contract must clearly specify the quantity and scope of work to be performed. Among which, the following main contents need to be specified:

a) Content of water management, irrigation, drainage, water supply, salinity prevention, and sweetwater retention tasks; water source management and distribution regulation throughout the area; monitoring, tracking, collecting data and materials according to regulations; water quality protection; preventing and combating water resource degradation and depletion, etc.;

b) Content of project operation management such as: Project operation plan, system operation plan; inspection, monitoring, timely detection, and handling of project and system failures; maintenance, repair, and upkeep of projects, machinery, and equipment; patrol, protection, and anti-infringement work, ensuring safe and efficient project operation;

c) Quantity of ordered products: Irrigation area (ha/crop or m3/ha/crop, based on crop type, etc.); drainage area (ha/crop or m3/ha/crop); water supply volume (cubic meters of supplied water) and other products (if any). For areas exempted from water resource fees, the decision of the provincial People's Committee specifying exempted areas must be referenced.

d) Management scope of Party B, water delivery points.

When determining the workload, it is necessary to clearly define the number of irrigation and drainage sessions per crop season, the method of water delivery and acceptance for each session; the volume of repair, dredging, maintenance, and upkeep works.

7. Work Quality: The contract must clearly specify the method of evaluating work quality based on the approved management and exploitation plan of the water conservancy project, adhering to general regulations, specific regulations of each project, and clearly recorded in the contract.

8. Order Contract Price: The contract price is the amount that Party A commits to pay to Party B upon completion of the agreed workload, ensuring quality, schedule, and other requirements stipulated. The contract price should clearly define the responsibilities of both parties regarding the fulfillment of tax and fee obligations. The order contract price should apply a lump-sum pricing model (fixed package), remaining unchanged throughout the contract execution period for works within the agreed scope (except for cases with separate provisions allowing adjustments).

9. Advance Payment of the Order Contract:

Upon signing and the order contract becoming effective, Party A is responsible for providing Party B with a 50% advance payment of the contract value to implement the contract. At the end of the irrigation, drainage, water supply, etc., season (mid-year), Party B prepares a report on the contract implementation results, determines the completed workload and quality, and the value of completed works. If the completed product (or work) volume corresponds to 70% or more of the advanced payment value, the ordering agency will provide an additional 40% advance payment of the contract value.

10. Adjustment of the Order Contract Price: The order contract price can only be adjusted in the following circumstances:

a) The State adjusts economic and technical norms, changes in wage policies, energy, and fuel prices.

b) Supplementing works outside the scope already defined in the contract.

The order contract price can only be adjusted with permission from the competent authority. In cases where the adjusted contract price exceeds the approved budget estimate in the procurement plan, Party A must report to the authorized approver. If the adjusted contract price does not exceed the approved budget estimate in the procurement plan, Party A approves and bears responsibility for its decision.

11. Environmental Protection, Labor Safety, and Fire Prevention: Both parties must clearly define requirements, responsibilities, and obligations regarding environmental protection, labor safety, and fire prevention during the implementation of the work. Environmental protection and labor safety content shall comply with current state regulations on water conservancy project management.

12. Liability for Errors: The contract must clearly define the liability of both parties for errors during work implementation affecting the project or users' production activities; costs for repairing errors or failing to repair them.

13. Suspension and Termination of the Contract: Specific provisions must be made for certain situations requiring suspension or termination of the contract to ensure project safety and user benefits if Party B fails to fulfill commitments and agreements in the order contract. In these cases, immediate reports to the competent authority for resolution are required to avoid impacting production tasks.

14. Risks and Force Majeure: The contract specifies the responsibilities of both Parties A and B for risks such as typhoons, floods, droughts (unusual), whirlwinds, tsunamis, landslides.

15. Liability of the Parties for Breach of Contract: The contract must clearly define the liability of the parties for breach of contract and methods for resolving disputes.

16. Rights and Responsibilities of Party A and Party B.

a) Rights and responsibilities of Party A: Specify clearly the rights and responsibilities regarding inspection, supervision, acceptance, payment, provision of relevant documents, etc.

b) Rights and responsibilities of Party B: Clearly define the rights and responsibilities of Party B to ensure the implementation of the contract in accordance with the agreed commitments; provide full and timely information related to the management and operation of waterworks; cooperate and provide files and documents for inspection and supervision work; responsibility for payment and settlement in accordance with regulations.

Article 11. Acceptance and Payment of Order Contracts

1. Acceptance of project items: Upon completion of irrigation and drainage operations, Party B shall propose to Party A to accept and evaluate the quantity and quality of the completed project items as specified in the contract.

During acceptance, specific contents such as: Water management, distribution, supply, and drainage work ensuring fairness between regions, upstream-downstream areas; sufficient water volume (according to quotas), on time (according to plans) throughout the system; monitoring and data collection work (as prescribed); implementation of operational procedures and recording of operational logs; maintenance of works and machinery; observation, detection, and handling of minor incidents; inspection and protection work, handling encroachment (based on actual inspections at the worksites). The area for irrigation, drainage, and water supply must be based on the contract and the acceptance records of Party B with water users (for legal entities). If the water user is a cooperative or village represented by a representative, confirmation from the People's Committee of the commune is required. Party A is responsible for verifying the authenticity of these acceptance records and may organize actual inspections if necessary.

Party A organizes the acceptance and evaluation of the quantity and quality of completed project items under the order contract and bears responsibility before superior authorities and the law if the acceptance does not match reality, resulting in discrepancies in acceptance results (quantity, quality, progress, etc.) affecting production and the quality of the works. See Appendix 3 for the model acceptance record. For regular repair work, separate acceptance records must be established for each work (or project item).

2. Final acceptance of order contracts: At the end of the year, Party B prepares a report on the completed ordered products, accompanied by detailed supplementary tables indicating the number of completed ordered products and the proposed acceptance and payment value.

Party A organizes the acceptance and evaluation of the quantity and quality of completed project items for the entire year. See Appendix 5 for the model acceptance record.

After acceptance, Party A reviews, considers, approves the value of completed work quantities, and processes the request for payment with the funding authority (after deducting advance payment funds). During the payment process, if the funding authority discovers errors or inconsistencies in the proposed payment value, they must immediately notify Party A for explanation, supplementation, and completion of the documentation. If the value of completed work quantities accepted is lower than the advance payments already made, Party B must return the difference to Party A to pay into the state budget.

3. Settlement of order contracts: At the end of the year, Party A and Party B must complete the settlement and sign the settlement record of the order contract. The settlement record of the order contract serves as the basis for the ordering agency to settle and finalize the expenses for Party B and to settle expenses with the state budget management agency.

4. Documentation for payment of order contracts.

The documentation for payment of order contracts is prepared by Party B. The content of the payment documentation includes the main documents:

- The acceptance record of the order contract accompanied by the acceptance record of completed project items.

a) Table determining the value of completed work quantities according to the contract, summarized according to the model attached with Appendix 6. During implementation, if there are changes (increases or decreases) in the quantities of regular repair items, a table determining the changed quantities must be established with the confirmation of both Party A and Party B and approved by the competent authority.

b) Table calculating the proposed payment value according to the model in Appendix 8, which should include the following contents: Value of completed work quantities according to the contract, value of work quantities outside the contract (if any), discount on advance payments, payment value after offsetting the above amounts.

c) Settlement record of the order contract.

d) Other contents as required by Party A and stipulated in the contract.

Chapter IV

IMPLEMENTATION

Article 12. Implementation organization.

1. The Department of Water Resources is responsible for directing, guiding, and inspecting the implementation of regulations on the management and operation of waterworks as stipulated in this Circular.

2. The Provincial People's Committees direct the Departments of Agriculture and Rural Development and other relevant agencies to implement this Circular.

Article 13. Effective Date

This Circular takes effect forty-five days from the date of signature. Units that have been contracted or assigned plans to manage and operate waterworks prior to the effective date of this Circular shall continue to implement until the completion of the order contract or assigned plan.

In the course of implementation, if there are difficulties, please promptly reflect them to the Ministry of Agriculture and Rural Development (through the Department of Water Resources) for study, amendment, and supplementation to ensure compliance./.