Circular No. 64-TC/ĐTPT on guiding the management and allocation of funds for sectoral planning, territorial planning, urban construction, and rural construction.

 

CIRCULAR

Guidelines for managing and allocating planning capital

 for industries, territories, urban and rural construction planning

__________________

Pursuant to the State Budget Law issued on March 20, 1996;

Pursuant to Decree No. 42/CP dated July 16, 1996 of the Government on the Charter for Investment Management and Construction;

 Pursuant to Circular No. 04/TTLB dated September 10, 1996 of the Ministry of Construction - Ministry of Planning and Investment - Ministry of Finance guiding the implementation of the Investment and Construction Regulations promulgated together with Decree No. 42/CP dated July 16, 1996 of the Government;

After reaching consensus with the Ministry of Planning and Investment, the Ministry of Construction, and the Ministry of Finance, guidelines for managing and allocating planning capital for industries, territories, and urban and rural construction planning are as follows:

 

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. Planning capital for industries, territories, and urban and rural construction planning is balanced within the annual investment plan for basic construction projects of the Government and is primarily guaranteed by state budget capital.

2. Planning projects for industries, territories, and urban and rural construction planning (hereinafter referred to as planning projects) must have complete investment and planning procedures, be recorded in the national basic construction investment plan, and meet all conditions stipulated in the Investment and Construction Regulations and this Circular.

3. The Investment Development System under the Ministry of Finance (General Department of Investment Development, Investment Development Bureau, Investment Development Sub-bureau hereinafter referred to as the Investment Development Authority) is the direct authority responsible for managing and allocating state budget capital for planning projects using state budget capital and other state capital sources according to the decision of the Minister of Finance, and has the responsibility to strictly monitor and control during the allocation process to ensure timely and full allocation of capital to projects that meet the conditions for capital allocation according to the project planning progress.

4. Ministries, agencies equivalent to ministries, government agencies, state-owned corporations established pursuant to Decision No. 91/TTg dated March 7, 1994 of the Prime Minister, provinces, centrally governed cities (hereinafter referred to as ministries and provincial People's Committees) and investors are responsible for implementing state regulations on investment and construction of planning projects, using investment funds for planning purposes efficiently, economically, and effectively, and strictly adhering to state financial management policies regarding basic construction investment.

II. SPECIFIC PROVISIONS

1. Allocation of planning project capital management levels

 Capital for basic construction investment allocated to planning projects is managed at different levels as follows:

1.1 Central-level planning projects

 - Regional and territorial economic and social development planning.

 - Industry and social economic development planning programs.

 - Regional construction planning and overall urban construction planning at provincial level and above.

 - Detailed urban planning in cities from type 2 and above, cities (city districts) with national highways passing through them, and new urban areas.

 - Rural planning projects and programs through national-level planning projects and programs.

1.2 Local-level planning projects

- General and detailed urban planning below provincial level, detailed urban planning in provincial capitals below type 2.

- Economic and social development planning for counties, clusters of villages... New residential area planning projects and industrial zone planning projects may use state budget capital or capital from economic organizations and enterprises according to the decision of the competent authority.

In cases where planning projects involve foreign investment capital, the management and use of foreign capital in such projects must also comply with state regulations on the management of foreign capital for development investment.

2. Costs for planning work: Costs for planning work include all expenses to implement planning projects, including the following costs:

2.1 Costs for establishing planning tasks of the project:

 - Technical surveys (if applicable), investigations, and collection of materials.

 - Establishing the planning project task.

2.2 Costs for implementing the planning project:

 - Technical surveys.

 - Investigations, collection of materials, current data, and forecasts related to the planning project.

 - Planning design:

+ Sectoral and regional planning design costs include costs for economic and social sector planning, program costs, processing and synthesis work costs, and planning design option costs.

+ Urban planning design: Regional construction layout plans, general and detailed urban planning designs. + Economic and social planning design for counties and clusters of villages.

+ Design for industrial zones and new residential areas.

- Model making for construction planning projects (if applicable).

2.3 Costs for reviewing and approving planning projects:

 - Reviewing planning projects: Workshops, critiques, hiring consultants (if applicable), printing, and transfer.

 - Other costs.

Planning project costs are determined based on national standards, unit prices, norms, and regulations for planning work.

3. Establishment and announcement of planning capital plans:

Planning capital is an indicator of the investment capital plan for basic construction. The establishment and announcement of planning capital plans are carried out according to Circular No. 63 TC/ĐTPT dated November 2, 1996 of the Ministry of Finance on guidelines for managing and allocating state budget capital for basic construction investment.

4. Provisional capital allocation:

4.1 Conditions for provisional capital allocation for planning:

 - Decision of the competent authority approving the planning project task.

 - Approved planning project cost estimate.

 - Recorded in the planning capital plan for the year.

 - Economic contract between the investor and the contractor with legal personality.

4.2 Level of provisional capital allocation for planning work:

 The annual provisional capital allocation amount equals the percentage of provisional allocation specified below multiplied by the value of the planning workload implemented in the planning year. The provisional capital allocation amount in the planning year always ensures a provisional capital allocation ratio relative to the remaining value of the planning workload to be completed.

The provisional capital allocation for planning projects is guaranteed at 25% of the annual planning capital of the contract implementing the planning project.

4.2 Recovery of provisional capital allocation:

The advance funding shall be guaranteed according to the prescribed ratio and implemented annually for the entire cost of implementing the planning project mentioned in Point 2 of Chapter II of this Circular and recovered gradually from the amount of capital disbursed for completed planning work according to the following principles:

- The recovery period for advance funding begins with the first payment for completed planning work.

- The amount of advance funding recovered in each payment shall be determined as follows:

- The amount of advance funding recovered each period = Value of accepted planning work x Advance funding ratio (25%).

- The remaining advance funding will be fully recovered in the final payment for completed planning work of the planning year.

Example:

Planning Project A, with a total approved budget of 1,000 million VND, has a planning capital of 800 million VND recorded in the first year's plan. The project receives advance funding at a rate of 25%.

Thus, the advance funding for the planning year is 200 million VND.

- The value of planning work paid in the first installment: 200 million VND.

- The amount of advance funding recovered in the first installment:

200 million VND x 25% = 50 million VND

- The remaining advance funding:

200 million VND - 50 million VND = 150 million VND

- The value of planning work paid in the second installment: 350 million VND.

- The amount of advance funding recovered in the second installment:

350 million VND x 25% = 87.5 million VND

- The remaining advance funding:

150 million VND - 87.5 million VND = 62.5 million VND

The remaining advance funding corresponds to the prescribed advance funding ratio is 62.5 million VND (25%). The value of planning work paid in the final installment is 250 million VND, including the recovery of 62.5 million VND in advance funding, and the planning capital disbursed for payment is 187.5 million VND.

In cases where the advance funding is not fully recovered within the planning year due to insufficient completed planning work eligible for payment, the remaining advance funding will be carried over to the next year and included in the advance funding of the next year's plan.

If the remaining advance funding is carried over to the next year but the project is not included in the plan, the investor must explain to the funding authority about the use of the unrecovered advance funding to report to the competent authority for handling.

In cases where the project must be suspended, if it is due to the subjective responsibility of the investor, the investor is responsible for returning the unrecovered advance funding; if it is due to objective reasons, the investor must explain to the funding authority to report to the competent authority for handling.

In cases where the project does not proceed as stipulated in the contract after being granted advance funding, the investor must explain to the funding authority and be responsible for returning the advance funding.

5. Capital disbursement for completed planning work.

5.1. Projects that are eligible for capital disbursement must meet the following conditions:

- The planning project must be decided by the competent authority: Sector planning, territorial planning, urban and rural construction planning, detailed planning, industrial zone planning, new urban area planning.

- The budget for planning costs must be approved.

- Decision of the competent authority establishing the project management board, appointing the head of the project management board, and appointing the chief accountant (or head of the accounting department); the investor opens a capital disbursement account at the General Department of Investment Development system.

- There must be a detailed plan for the volume of planning work to be implemented in the planning year, approved by the competent authority.

 - Economic contract between the investor and the contractor with legal personality.

- There must be completed planning work sufficient for payment, consistent with the approved budget based on the planning norms and unit prices issued by the competent authority and guidelines.

5.2. To be eligible for capital disbursement, the investor must submit the following documents to the investment development agency:

- Completion certificate for the volume and quality of work.

- Detailed calculation of costs (as mentioned in Point 2 of Chapter II of this Circular) accompanied by a summary cost sheet.

- Payment price list.

- Relevant invoices and receipts.

5.3. Volume of completed planning work eligible for capital disbursement:

- The volume of completed planning work eligible for payment includes all planning tasks performed according to the planning cost items mentioned in Section 2 of Part II of this Circular.

- For completed planning work eligible for payment with a volume of 100 million VND or more, monthly or quarterly payments may be made according to progress.

6. Reporting, settlement, inspection, and handling procedures:

6.1. Monthly on the 25th and quarterly on the 10th of the first month, the investor is responsible for reporting the implementation of investment, receipt of funds, and fund usage for the previous month or quarter to the direct capital disbursement agency and send copies to the main ministry or local people's committees.

At the end of the planning year and when the planning project is completed, the investor is responsible for preparing a final settlement report and submitting it to the competent authority for approval according to the regulations on final settlement of basic construction investment capital by the Ministry of Finance.

6.2. Quarterly, the investment development agency (General Department of Investment Development, Investment Development Bureau, Investment Development Sub-bureau) is responsible for reporting to the financial agency (Ministry of Finance, Department of Finance - Price Control) on the situation of receiving and using state budget funds and other state sources (if any) for planning work.

At the end of the planning year, the investment development agency settles accounts with the financial agency regarding the received planning capital from the state budget, the disbursement and payment situation according to the regulations on final settlement of state budget capital.

6.3. Quarterly, at the end of the planning year, ministries and provincial people's committees are responsible for summarizing the implementation of the planning capital plan together with the comprehensive report on the implementation of the basic construction investment plan under their management and sending them to the Ministry of Finance and the Ministry of Planning and Investment.

6. 4. Ministries, People's Committees of provinces, direct management agencies of investors, investment development agencies shall have regular and spot-checking systems to monitor investors on the use of planning capital. If investors misuse planning capital for purposes other than intended, the investment development agency has the right to temporarily suspend or recover the improperly used capital. Additionally, depending on the severity of the violation, investors may be subject to economic penalties, administrative disciplinary actions, or criminal liability as prescribed by law.

7. Responsibilities of relevant agencies.

7. 1. Investors shall be responsible for:

- Implementing planning projects according to tasks assigned by supervisory agencies, ensuring compliance with stipulated deadlines and quality standards.

- Providing complete files, documents, and information to the investment development agency to facilitate inspection, disbursement, and settlement processes.

- Receiving and utilizing allocated funds for their intended purpose, target group, economically and effectively. Adhering strictly to state regulations on the management system for basic construction investment capital.

- Reporting and settling planning capital in accordance with state regulations.

- Requesting disbursement of funds when all necessary conditions are met and requesting clarification from the investment development agency regarding unresolved issues in disbursement and settlement of planning capital.

7. 2. Direct management agencies of investors, ministries, and People's Committees of provinces shall be responsible for:

- Implementing investment and construction management according to their functions and tasks assigned by the Government.

- Guiding, inspecting, and urging investors under their jurisdiction to implement investment plans, properly receiving and managing capital for its intended purpose and in accordance with state regulations.

- Reporting on the implementation of planning work as prescribed above.

7. 3. The investment development agency shall be responsible for:

- Based on the state plan and investor proposals, promptly and fully disbursing funds for projects that meet payment conditions.

- Having the authority to request investors to provide files, documents, and information to support inspection and disbursement activities.

- Being permitted to temporarily suspend or recover funds allocated to projects if it is found that investors misuse funds for unintended purposes, incorrect recipients, or contrary to state financial management regulations.

- Supplementally providing investors with funds that meet disbursement conditions but were not yet provided, or not fully provided, and issuing written responses to investors regarding reductions or denials of disbursements.

- Carrying out capital reporting and settlement as prescribed.

The investment development agency shall manage and disburse, settle planning capital according to a unified business process, ensuring strict control, timely and full disbursement, and minimizing inconvenience for investors.

(Issued together with Decision No. 206/1998/QĐ-NHNN6 dated June 11, 1998 of the Governor of the State Bank of Vietnam)

1. This Circular takes effect from the date of issuance and replaces previous guiding documents on the management and disbursement of planning capital from the state budget issued by the Ministry of Finance.

2. Any difficulties encountered during implementation shall be promptly reported to the Ministry of Finance for study, supplementation, and amendment.