Circular No. 64/2005/TT-BTC guides the management and settlement of investment capital for the project to expand and complete the La Gia - Hoa Lac Road.

CIRCULAR

Guidelines for managing and settling investment capital

The project to expand and complete the Lang - Hoa Lac road

Pursuant to the State Budget Law No. 01/2002/QH11 dated December 16, 2002;

Pursuant to the Construction Law dated November 26, 2003;

Pursuant to Decree No. 16/2005/NĐ-CP dated February 7, 2005 of the Government on Managing Investment Projects for Construction Works;

Implementing Document No. 224/CP-CN dated March 1, 2003; Document No. 828/CP-CN dated June 18, 2003; Document No. 1726/CP-CN dated December 17, 2003 of the Prime Minister; Document No. 120/TB-VPCP dated June 14, 2004 of the Government Office on investing in the project to expand and complete the Lang - Hoa Lac road,

The Ministry of Finance issues guidelines for managing and settling investment capital for the project to expand and complete the Lang - Hoa Lac road as follows:

I. GENERAL PROVISIONS

1. The project to expand and complete the Lang - Hoa Lac road is invested with state budget capital, including:

- Central government budget capital allocated for investment preparation work, project management, and quality supervision consultancy, balanced according to the annual plan for basic construction investment of the Ministry of Transport.

- Capital from the city of Hanoi's budget (self-raised through land use rights auction) to implement the construction of the road section within the city limits.

- Capital raised from land funds in Ha Tay province to implement the construction of the road section within the provincial limits.

2. Management and settlement of investment capital for the project shall be carried out in accordance with current state regulations on managing and settling investment capital and the provisions of this Circular.

3. The project sponsor (Lang Management Board) and the main contractor (Vietnam Import-Export Construction Corporation - Vinaconex) shall ensure the implementation of the project in accordance with the schedule, quality, and intended purpose of the investment capital for the Lang - Hoa Lac road expansion and completion project, and shall not use it for other purposes.

4. The Department of Finance of Hanoi City and Ha Tay Province shall advise the People's Committee to manage and ensure the investment capital for the Lang - Hoa Lac road expansion and completion project in accordance with the State Budget Law.

5. The People's Committee of Hanoi City and Ha Tay Province shall be responsible for managing, directing, and guiding subordinate levels under their jurisdiction to implement in accordance with current state regulations and the guidance provided in this Circular.

6. The control and settlement of investment capital for the project shall be carried out at the State Treasury.

II. SPECIFIC PROVISIONS

1. Preparation of the annual state budget estimate for the project:

1.1. At the time of preparing the annual state budget estimate as prescribed, the main contractor shall base on the project implementation progress to prepare the annual capital investment plan, divided by each source of capital (capital from Hanoi City's budget and capital from Ha Tay Province's land fund) and send it to the Lang Management Board.

1.2. The Lang Management Board shall consolidate the annual capital demand plan of the project, divided by each source of capital (central government budget capital, capital from Hanoi City's budget, and capital from Ha Tay Province's land fund) and send it to the Ministry of Transport.

The Ministry of Transport shall consolidate the investment capital plan and send it to the People's Committee of Hanoi City and Ha Tay Province (corresponding to the investment capital of each province). The People's Committee of Hanoi City and Ha Tay Province shall consolidate and build the annual local state budget estimate and submit it to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and submission. The Prime Minister.

1.3. After the state budget is assigned, the Ministry of Finance shall consolidate the detailed plan for settling investment capital of the project, divided by each source of capital (central government budget capital of the Ministry of Transport, capital from Hanoi City's budget, and capital from Ha Tay Province's land fund) and send it to the State Treasury as the basis for controlling and settling the project, while sending it to the Ministry of Transport, the People's Committee of Hanoi City, and the People's Committee of Ha Tay Province for coordination in management and ensuring sufficient sources.

During the planning year, based on actual implementation and available capital sources of the project, the main contractor and the Lang Management Board may adjust the investment capital plan for the project and submit it to the competent authority for review and adjustment of the plan.

2. Management and Settlement of Capital:

2.1. For the volume of work guaranteed to be settled by central government budget capital and Hanoi City's budget capital, management and settlement shall be carried out in accordance with the Government Decrees on managing construction projects and Circular No. 44/2003/TT-BTC dated May 15, 2003 of the Ministry of Finance guiding the management and settlement of investment capital and public expenditure with investment characteristics and construction from state budget sources, or any amendments, supplements, or replacements thereof, based on the actual available capital for the portion guaranteed by Hanoi City's budget.

The Department of Finance of Hanoi City shall transfer capital to the State Treasury on a quarterly basis to ensure payment sources for the project.

2.2. For the volume of work settled by Ha Tay Province's land fund:

- Management and preparation of settlement documents shall be carried out in accordance with the Government Decrees on managing construction projects and Circular No. 44/2003/TT-BTC dated May 15, 2003 of the Ministry of Finance guiding the management and settlement of investment capital and public expenditure with investment characteristics and construction from state budget sources, or any amendments, supplements, or replacements thereof.

The Lang Management Board shall submit the project settlement documents to the State Treasury for control over expenditures;

- The State Treasury, based on the documents submitted by the Lang Management Board, shall check and confirm the value of the volume of work eligible for capital settlement, transferring the confirmation to the Lang Management Board and the main contractor.

- Based on the confirmation of the volume of work eligible for settlement by the State Treasury, the Lang Management Board and the main contractor shall proceed with the settlement for the project and directly settle with the beneficiary unit in accordance with regulations;

- The Lang Management Board shall aggregate and monitor the capital already settled for the project, prepare a consolidated report on a quarterly basis, and submit it to the People's Committee of Ha Tay Province (Department of Finance) for tracking, reconciliation, and as the basis for settling the project with Ha Tay Province's land fund for the main contractor.

- The accounting and management of funds derived from the use of land to create capital for the project to complete and expand the La Gia-Hoa Lac road shall be carried out as follows:

+ After transferring land to Vietnam Construction Import-Export Corporation - Vinaconex, the Department of Finance of Ha Tay Province shall record local budget revenue from the transfer of land use rights and record provisional payments for the project corresponding to the value of the actual area transferred.

At the end of each fiscal year (December 31 annually), based on the consolidated report of the Thang Long Project Management Board regarding the amount of capital already paid to the project, confirmed by the State Treasury agency, the People's Committee of Ha Tay Province (Department of Finance and Prices) shall process the accounting of budget expenditure for investment and transfer any remaining capital (if any) to the following year for continued payment to the project.

+ In cases where the value of the land fund provisionally paid to the General Contractor exceeds the value of the project works, the General Contractor must pay the difference in cash to the Ha Tay Provincial Budget. In cases where the value of the land fund provisionally paid to the General Contractor is less than the value of the project works, the Ha Tay Provincial Budget shall reimburse the General Contractor for the difference.

2. 3. The People's Committee of Hanoi City and the People's Committee of Ha Tay Province are responsible for ensuring sufficient funding for the project according to its implementation schedule so that the project sponsor (Ministry of Transport) can proceed with construction. In cases where the required capital is not available according to the schedule, the General Contractor must advance the investment capital, and the advance and repayment thereof shall be based on mutual agreement between the parties.

2. 4. For completed work volumes subject to delayed payment, they shall be implemented in accordance with Decree No. 16/2005/NĐ-CP.

3. Settlement:

- Annual settlement: The Thang Long Project Management Board shall report the annual settlement of each budget expenditure item to each locality according to the prescribed regulations, while also consolidating the entire project and reporting to the Ministry of Transport, the Ministry of Planning and Investment, and the Ministry of Finance in accordance with Circular No. 53/2005/TT-BTC dated June 23, 2005, of the Ministry of Finance on guidelines for preparing and reviewing final accounts of basic construction investment funded by the state budget on an annual basis or any subsequent amendments and supplements.

- The People's Committee of Hanoi City and the People's Committee of Ha Tay Province shall implement budget expenditure settlements in accordance with current regulations.

- Final project settlement: After the completion of the project, the project sponsor shall be responsible for settling the project investment capital in accordance with Circular No. 45/TT-BTC dated May 15, 2003, of the Ministry of Finance on guidelines for final project investment settlement or any subsequent amendments and supplements.

4. Reporting and Inspection:

- Regarding Reporting:

+ On a regular basis, within the first five days of each month, the Thang Long Project Management Board shall be responsible for reporting the progress and capital disbursement of the project to the Ministry of Transport, the Ministry of Planning and Investment, the Ministry of Finance, the People's Committee of Hanoi City, and the People's Committee of Ha Tay Province.

+ The State Treasury shall report to the Ministry of Finance according to the prescribed reporting system for investment capital.

+ Within the first ten days of each month, the Ministry of Finance and the Ministry of Planning and Investment shall consolidate and report to the Prime Minister as prescribed.

- Regarding Inspection: Ministries, the People's Committee of Hanoi City, and the People's Committee of Ha Tay Province shall inspect the project regularly or at random regarding the implementation of the investment plan, the use of capital, and compliance with financial investment policies and regulations.

- The Ministry of Transport, the People's Committee of Hanoi City, the People's Committee of Ha Tay Province, the General Contractor, and the Project Management Board shall strengthen management and inspection efforts to prevent waste, loss, and corruption.

III. IMPLEMENTATION PROVISIONS

This Circular takes effect fifteen days after its publication in the Official Gazette.

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