Decision No. 66/2000/QĐ-TTg On Certain Policies and Financial Mechanisms for Implementing the Program to Reinforce Canals and Ditches

DECISION OF THE PRIME MINISTER

On Certain Policies and Financial Mechanisms for Implementing the Program to Reinforce Irrigation Canals

PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to Resolution No. 08/1999/NQ-CP of the Government dated July 9, 1999;

At the proposal of the Ministers of the Ministries of Planning and Investment, Finance, Agriculture and Rural Development,

DECISION:

Article 1. The State encourages localities to mobilize all resources and create favorable mechanisms to accelerate the progress of reinforcing irrigation canals. Priority shall be given to using funds for implementing new investment projects in water-scarce areas, areas irrigated by electric pump stations, reservoirs, and dams; channels with high seepage rates, channels passing through poor soil prone to landslides or constant siltation; and channels passing through urban fringes, villages, and hamlets.

Article 2. Procedures for establishing and reviewing investment projects to reinforce irrigation canals.

Type I canals shall be reviewed by the Ministry of Agriculture and Rural Development in conjunction with water conservancy projects, consistent with the development plans of the agricultural sector and localities.

Type II canals shall be reviewed by the provincial People's Committees in accordance with current regulations.

For Type III canals, only design and budget estimates need to be prepared, approved by the district People's Committee, without tendering, and implemented by the commune People's Committee under community supervision.

The Ministry of Agriculture and Rural Development shall provide detailed guidance on the classification of canal types.

Article 3. On Financial Mechanisms:

1. Regarding Investment Capital:

a) Type I canals shall be funded by the central government budget, allocated into the annual construction investment budget of the Ministry of Agriculture and Rural Development.

b) Type II canals shall be funded by the local government budget, allocated within the annual construction investment budget of the locality.

c) Type III canals shall primarily rely on the labor contributions of the benefiting population.

The People's Committees of provinces and centrally-administered cities shall, depending on their capacity, consider and decide on the level of support for materials, cement, steel, and technical assistance.

Localities shall allocate at least 40% of agricultural land use tax, part of irrigation fees, and other sources of revenue (direct aid, economic development funds, etc.) to reinforce irrigation canals managed by localities (Type II and Type III).

For mountainous provinces and provinces with low revenue from taxes and irrigation fees, the central government shall provide partial funding through the annual construction investment plan of the locality.

2. Regarding credit capital:

In addition to the state budget and people's labor contributions stipulated in Clause 1 of this Article, the State shall allocate preferential credit funds with zero interest (0%) annually for provinces and centrally-administered cities to borrow:

a) For Type II canals: If the local government budget cannot ensure sufficient capital in the planning year, it may borrow from the preferential credit fund for investment, with the local government budget allocating repayment in subsequent years.

b) For Type III canals: If the local government budget cannot provide adequate support (in materials, cement, steel, and technical assistance) in the planning year, it may also borrow from the preferential credit fund for support, with the local government budget allocating repayment in subsequent years.

Sources and levels of credit funds for borrowing: These credit funds shall be allocated within the total annual credit fund of the State; the maximum loan amount for a project shall equal the remaining capital required to complete the project within the approved budget estimate.

Repayment period: After one year of commencement, the repayment period shall be four years; for mountainous provinces and provinces with difficult financial conditions, the repayment period shall not exceed five years for each loan.

Source of loan repayment: From the agricultural land use tax revenue and other revenues balanced in the local government budget. The People's Committees of provinces and centrally-administered cities must commit in writing to allocate sufficient funds for loan repayment in the annual local government budget.

Article 4. Implementation organization:

1. The People's Committees of provinces and centrally-administered cities shall be responsible:

a) To approve plans for reinforcing irrigation canals (Type II and Type III) within their jurisdiction; to balance investment capital from the budget to implement these plans.

b) To determine the total investment capital and allocate various sources of capital, including balancing local resources; requesting loans for insufficient capital; preparing loan and repayment plans to submit to the Ministry of Planning and Investment, the Ministry of Finance, and the Development Support Fund.

c) To direct the provision of credit funds for Type II and Type III canals.

2. The Ministry of Agriculture and Rural Development shall prepare plans for reinforcing irrigation canals (Type I) to be submitted to the Ministry of Planning and Investment and the Ministry of Finance for capital allocation; monitor and supervise the implementation of the canal reinforcement program nationwide, and report periodically on results.

3. The Ministry of Planning and Investment shall coordinate with the Ministry of Finance to balance investment capital from the budget and credit funds for lending.

4. The Ministry of Finance, based on the approved annual investment capital for canal reinforcement (all types), the ability to balance investment capital from the budget, and the local government budget's ability to repay debt, shall decide on the level of credit funds for lending to each province and centrally-administered city.

5. The Development Support Fund shall lend funds to provinces and centrally-administered cities according to the decision of the Ministry of Finance (not directly lending to individual districts or specific projects) and shall be responsible for recovering borrowed funds when due; calculating the need for interest subsidy and fee reimbursement to submit to the Prime Minister for consideration and decision; reporting periodically on implementation results to relevant ministries, sectors, and the Prime Minister.

The Ministry of Finance shall allocate funds to cover the difference in interest and fees for the above loans.

6. In 2000, the State shall allocate 500 billion VND from the national investment development credit fund already assigned for localities to borrow according to the provisions of this Decision.

Article 5. This Decision takes effect from the date of signature.

Article 6. The Ministers, Heads of ministerial-level agencies, Heads of government-attached agencies, Chairpersons of provincial People's Committees under the central city authorities are responsible for implementing this Decision./.