Decision No. 62/2004/QD-TTg on credit for implementing the National Strategy on Clean Water Supply and Rural Sanitation

Pursuant to …;

VOn credit for implementing the National Strategy on Clean Water Supply and Rural Environmental Sanitation

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PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to Decree No. 78/2002/NĐ-CP dated October 4, 2002 on credit for the poor and other policy targets;

Pursuant to Decree No. 106/2004/NĐ-CP dated April 1, 2004 on State investment credit development;

Considering the proposal of the Minister of Agriculture and Rural Development at Circular No. 3879/BNN-KH dated December 19, 2003,

DECISION:

Article 1. Purpose of Credit

This credit mechanism aims to implement the National Strategy on Clean Water Supply and Rural Environmental Sanitation until 2020 as per Decision No. 104/2000/QĐ-TTg dated August 25, 2000 of the Government Prime Minister, including the following types of projects:

1. Projects for new construction or renovation and upgrading of clean water supply facilities in accordance with national standards for clean water;

2. Projects for new construction or renovation and upgrading of rural environmental sanitation facilities, including: latrines or latrines with biogas tanks, livestock and poultry sheds; wastewater and solid waste treatment in rural craft villages.

Article 2. Time Frame and Scope of Implementation

From now until 2005, pilot implementation will be carried out in ten provinces, namely Son La, Hai Duong, Nam Dinh, Ninh Binh, Nghe An, Khanh Hoa, Binh Thuan, Dak Lak, Tien Giang, and Kien Giang. From 2006 onwards, it will be expanded to all provinces and cities nationwide.

1. Households legally residing in rural areas without clean water or with existing water that does not meet standards and lacks sanitation, who have applied for loans to build new or renovate and upgrade clean water supply and environmental sanitation facilities, and who commit to using the loaned funds for their intended purpose, repaying the debt on time, and obtaining confirmation from the commune authorities shall:

a) Be eligible to borrow from the Social Policy Bank.

b) The maximum loan amount for each type of facility is VND 4 million per household.

c) Interest rates, terms, conditions, procedures for lending, collateral for loans, and risk management shall be implemented according to the provisions of Decree No. 78/2002/NĐ-CP dated October 4, 2002 on credit for the poor and other policy targets.

d) During the period when the debt has not been fully repaid, households may not sell, transfer, or pledge the facilities to others without permission.

In cases where households sell or transfer houses or land that share or individually own these facilities, they must provide a commitment to repay the debt, confirmed by the People's Committee of the commune and the Social Policy Bank, with the principle that the seller must be able to repay the debt or the buyer must assume the debt.

2. Economic organizations that are investors in new projects or upgrades and renovations of clean water supply facilities in rural areas shall be provided loans, interest rate subsidies after investment, or credit guarantees according to the provisions of Decree No. 106/2004/NĐ-CP dated April 1, 2004 on State investment credit development.

Article 4. Sources of Loan Funds

1. Capital raised according to the annual plan assigned by the Government Prime Minister.

2. ODA funds allocated for the Clean Water Supply and Rural Environmental Sanitation Program.

3. Other lawful sources of capital.

4. The Ministry of Planning and Investment shall take the lead, in coordination with the Ministry of Finance and the Ministry of Agriculture and Rural Development, to submit to the Government Prime Minister proposals to supplement tasks and funding for the Development Support Fund and the Social Policy Bank in 2004 to implement lending in accordance with regulations.

Article 5. Interest Rate Subsidy and Loss Compensation

The State Budget shall provide interest rate subsidies to the Development Support Fund and compensate losses for the Social Policy Bank according to the annual plan assigned.

Article 6. Implementation Organization

1. The Ministry of Agriculture and Rural Development shall coordinate with relevant agencies and the Development Support Fund, the Social Policy Bank to guide and direct the implementation of credit for clean water supply and rural environmental sanitation; compile credit demand for clean water supply and rural environmental sanitation and submit it to the Ministry of Planning and Investment and the Ministry of Finance; for the Ministry of Planning and Investment to report to the Government.

Every six months and annually, the Ministry of Agriculture and Rural Development shall report to the Prime Minister on the results of credit implementation under the National Strategy for Clean Water Supply and Rural Environmental Sanitation.

2. The Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Finance to prepare the state budget estimate and total credit limit, annual interest rate subsidy level and loss compensation amount for the Development Support Fund and the Social Policy Bank to lend according to this Decision; submit to the Prime Minister for the annual plan assignment to the two credit institutions in accordance with current regulations.

3. Provincial People's Committees and municipal people's committees directly under the Central Government shall, within their functions and duties, direct the implementation of credit for clean water supply and rural environmental sanitation in their respective areas in accordance with the prescribed regulations.

4. The Development Support Fund and the Social Policy Bank shall ensure lending to the correct target groups and policies; recover loans from borrowing entities.

Article 7. Effectiveness and Responsibility for Implementation

This Decision takes effect fifteen days from the date of publication in the Official Gazette.

Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial and municipal people's committees directly under the Central Government, General Directors of the Development Support Fund, and General Directors of the Social Policy Bank shall be responsible for implementing this Decision.