Joint Circular No. 66/2003/TTLT-BTC-BNNPTNT guiding the management, allocation, and settlement of funds for the National Target Program on Rural Clean Water Supply and Environmental Sanitation.

JOINT CIRCULAR

Guidelines for managing, allocating, and settling accounts for the budget of the national target program

on rural clean water and environmental sanitation

______________________________

Implementing Decision No. 237/198/QĐ-TTg dated December 3, 1998 of the Prime Minister approving the National Target Program on Rural Clean Water and Environmental Sanitation.

Pursuant to Decision No. 71/2000/QĐ-TTg dated May 4, 2001 of the Prime Minister regarding National Target Programs for the period 2001-2005.

Pursuant to Decision No. 104/2000/QĐ-TTg dated August 25, 2000 of the Prime Minister approving the National Strategy on Clean Water Supply and Environmental Sanitation in Rural Areas until 2010.

Pursuant to Decision No. 42/2002/QĐ-TTg dated March 19, 2002 of the Prime Minister on the management and operation of National Target Programs.

Pursuant to the State Budget Law and current guiding documents.

I. GENERAL PROVISIONS:

1. The sources of funds for the Program include:

- State budget funds (including borrowed funds and aid)

- Other sources of funds: funds raised from the people, funds from other economic sectors.

2. Investment principles:

- The Program prioritizes investment in border areas, islands, ethnic minority regions, and other difficult rural areas.

- The allocation of funds for implementing the Program must be based on approved projects and follow the principle that both the state and the people participate.

- The annual allocation of funds for the Program shall be based on the capacity of the state budget and other sources of mobilization.

3. The national program budget for clean water and environmental sanitation in rural areas must be managed and expended according to its purpose, intended recipients, and regulations. Reports and settlements shall be made in accordance with current regulations.

Chapter II. SPECIFIC PROVISIONS:

A. CONTENT AND AMOUNT OF EXPENSES:

1. Expenses from operating funds:

1.1. Content of expenses:

- Support for building models of improved latrines.

- Support for building models of livestock waste treatment. - Communication and social mobilization expenses, training.

- Application of scientific and technological progress to the program (if applicable).

- Unexpected expenses as decided by the competent authority.

For management and guidance expenses of the Program Steering Committee, they shall be implemented in accordance with Circular No. 78/2000/TT-BTC dated July 27, 2000 of the Ministry of Finance on guiding the operating costs of steering committees of national target programs.

1.2. Amount of expenses:

a. Model project for improved latrines:

- The maximum support from the central budget for a commune to implement a model is 100 million VND. - Specific contents of expenses for a model include:

+ Costs for selecting construction sites, interviewing, and collecting data;

+ Maximum technical guidance staff costs at 200,000 VND/month (26 days) for direct supervision of the model (in cases where non-state civil servants are hired); For state civil servants, travel allowances shall be paid according to Circular No. 94/1998/TT-BTC dated June 30, 1998 of the Ministry of Finance on travel allowances for state officials traveling domestically;

+ Social mobilization and technical guidance expenses for the public;

+ Project inspection and acceptance expenses;

+ Material support expenses (cement, bricks, sand, etc.) for participants in the model, which account for approximately 70% to 80% of the total expenses for a model, specifically: For households in particularly difficult mountainous and remote areas and border communes as per decisions of

b. Model project for livestock waste treatment:

- The maximum support from the central budget for a commune to implement a model is 100 million VND.

- Contents of expenses for the model: Similar to the improved latrine model project at point a above. Specifically, the state support for participating households is as follows:

+ For sheds with up to 10 animals: The maximum support from the central budget is 200,000 VND/household. + For sheds with more than 10 animals: The maximum support from the central budget is 300,000 VND/household. If biogas is installed, an additional 100,000 VND/household will be provided.

For households in particularly difficult mountainous and remote areas and border communes as per decisions of the Prime Minister, an additional 20% support will be provided compared to the above levels.

If a commune implements integrated models of improved latrines and livestock waste treatment, the maximum central budget support for the integrated model is 100 million VND.

c. Social communication expenses include: Broadcasting news on mass media such as radio, television, newspapers, and other information means; Printing specialized materials, leaflets, posters, films. Specific amounts are based on current regulations.

d. Training expenses:

- Training material and textbook costs for classes;
- Payment for lecturers teaching theory at a maximum of 20,000 VND/session, and practical instructors at a maximum of 15,000 VND/session;
- Purchase costs for practical equipment and materials (if any);
- Class management costs: drinking water, rental of conference halls, transportation expenses for instructors and organizing staff;
Accommodation, food, and travel expenses for trainees during training sessions shall be supported according to Circular No. 93/1998/TT-BTC dated June 30, 1998 of the Ministry of Finance on meeting expense regulations.

e. Expenses for applying scientific and technological progress to the program (if applicable): Based on successful research results on solutions and technologies for rural environmental sanitation, the program applies advanced techniques through specific models to ensure economic feasibility for the people and suitability for each ecological region.

2. Expenses from construction investment funds:

2.1. Content of expenses:

- Support for constructing clean water supply facilities, including school, educational institution, kindergarten, hospital, health station, and rural market water supply facilities.

- Support for treating village industry wastewater.

- Planning and preparation for investment.

- Application of scientific and technological progress to the program (if applicable)

2.2. Specific amount of expenses:

2.2.1. Clean water supply facilities:

a. Centralized water supply facilities:

- The central budget supports a portion of cement, bricks, sand, and equipment for the upstream project components, water treatment stations, and main pipelines.

- The specific level of support is as follows:

+ For water supply projects serving one village (commune, ward): The central budget provides support at a rate not exceeding 40% of the value of the project approved by the competent authority.

Specifically, for highland areas, islands, border communes, the central budget supports projects serving one village (commune, ward) at a maximum rate not exceeding 60% of the value of the project approved by the competent authority. For particularly difficult communes in mountainous regions and remote areas, the provisions of Circular No. 416/1999/TTLT/BKH-UBDTMN-TC-XD dated April 29, 1999, jointly issued by the Ministry of Planning and Investment - the National Ethnic Minorities Commission (now the National Ethnic Minorities Commission) - the Ministry of Finance - the Ministry of Construction on guiding investment management and construction of infrastructure in particularly difficult communes in mountainous regions and remote areas pursuant to Decision No. 135/1998/QĐ-TTg dated July 31, 1998 of the Prime Minister on approving the program for economic and social development in particularly difficult communes in mountainous regions and remote areas shall apply. The Prime Minister on approving the Program for Developing Socio-Economic Conditions in Particularly Difficult Mountainous Communes and Remote Areas.

+ For centralized gravity-fed water supply projects (only implemented in highland areas): The central budget provides support not exceeding 90% of the value of the project approved by the competent authority.

Based on the support level for one village (commune, ward) as stated above, relevant ministries, sectors, provincial people's committees, and centrally-administered cities approve the support level for inter-village (inter-commune, inter-ward) projects, communes, and implement projects in accordance with their annual allocated funds.

b. Decentralized water supply projects:

- The central budget supports poor households and families of policy beneficiaries, householders in particularly difficult communes in mountainous regions and remote areas, border communes, highland areas, and islands.

- The central budget supports a portion of materials such as plastic pipes, hand pumps, cement, rainwater collection channels depending on the type of water supply system.

- The specific level of support is as follows:

+ Small-diameter drilled wells: The central budget provides maximum support of 300,000 VND per household.

+ Dug wells: The central budget provides maximum support of 200,000 VND per household.

+ Rainwater storage tanks (4 cubic meters): The central budget provides maximum support of 300,000 VND per household; Rainwater storage buckets (2 cubic meters) the central budget provides maximum support of 200,000 VND per household (for areas severely lacking water).

Specifically, for households of mothers awarded the title of Heroic Mothers of Vietnam,烈士母亲，烈属，和有功人员家庭确实困难的，除上述中央财政支持外，地方财政可以考虑支持剩余工程价值的部分。

2. 2.2. Waste Treatment Project:

- Content of Support: The central budget will support part of materials such as cement, bricks, sand for the cluster of waste treatment works or main channels, and equipment.

- Specific Level of Support: The central budget will support up to 40% of the value of the project approved by the competent authority for one village (hamlet, ward).

Based on the support level for one village (commune, ward) as stated above, relevant ministries, sectors, provincial people's committees, and centrally-administered cities approve the support level for inter-village (inter-commune, inter-ward) projects, communes, and implement projects in accordance with their annual allocated funds.

2. 2.3. Planning and Investment Preparation Funds: The state budget will be allocated according to the project and economic-technical feasibility study approved by the competent authority.

2. 2.4. Application of Scientific and Technological Progress in the Program (if applicable): Based on successful scientific research results regarding solutions and technologies for providing clean water and rural environmental sanitation, the program proposes applications of technological progress through specific models to ensure compatibility with the economic capacity of the people and the conditions of each ecological region.

For clean water supply projects funded by foreign aid with specific content and addresses, funding will be arranged according to the approved project.

B. FINANCIAL MANAGEMENT OF THE PROGRAM:

1. Preparation of budgets and allocation of funds:

- Annually, based on the Prime Minister's directives on developing socio-economic plans, the Ministry of Agriculture and Rural Development (the Program Management Agency) is responsible for planning tasks, objectives, and financial needs, proposing solutions to implement the program and submitting them to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and submission to the Government. Based on the total financial amount of the program announced by the competent authority, the program management agency will coordinate with the Ministry of Planning and Investment and the Ministry of Finance to estimate the allocation of program funds to ministries, central agencies, and provinces/cities directly under the central government in accordance with the approved objectives and tasks. The capital allocation table and program objectives and tasks will be sent to the Ministry of Planning and Investment and the Ministry of Finance for consolidation into the budgets of central ministries/agencies and provinces/cities for submission to the Prime Minister for decision.

- For ministries and central agencies: Based on the program funds assigned by the Prime Minister, ministries and central agencies will allocate tasks to subordinate units in line with the program's objectives and content, and submit them to the Ministry of Finance for issuance of funds according to regulations.

- For localities: Based on the total funds for all national target programs assigned by the Government to the locality, provincial/municipal People's Committees have the responsibility to proactively integrate these programs within their jurisdiction, allocate financial resources for the national target program on clean water supply and rural environmental sanitation, and submit the allocation plan to the Ministry of Finance, the Ministry of Planning and Investment, and the Ministry of Agriculture and Rural Development for monitoring and inspection.

2. Allocation of Funds:

- At the central level: The Ministry of Finance will directly allocate funds to project owners under ministries and central agencies according to current regulations on investment in construction (for basic construction investment) and provide quotas to ministries and central agencies participating in the program according to the budget and implementation schedule (for public service investment).

- At the local level: The Ministry of Finance will supplement targeted funds for provinces/cities directly under the central government to carry out the program tasks managed by the locality (including both public service investment and basic construction investment).

3. Inspection and Finalization of Financial Expenditures:

- Inspection work: The Ministry of Agriculture and Rural Development, the Steering Committee for the National Program on Clean Water and Environmental Sanitation in Rural Areas shall cooperate with financial agencies to conduct regular or surprise inspections regarding the implementation of state policies and regulations concerning the use of funds at both central and local levels.

- Regarding final accounts settlement: Units using funds from the National Target Program on Clean Water Supply and Environmental Sanitation in Rural Areas must report on the implementation situation (quarterly, annually) and settle the program's budget according to the accounting system for units issued together with Decision No. 999/TC-QĐ-CĐKT dated November 2, 1996, by the Minister of Finance, and the reporting and settlement regulations stipulated in Circular No. 103/1998/TT-BTC dated July 18, 1998, by the Ministry of Finance; For investment capital for construction works, final accounts settlement shall be conducted in accordance with Circular No. 45/2003/TT-BTC dated May 15, 2003, by the Ministry of Finance guiding the final accounts settlement of investment capital.

III. IMPLEMENTATION:

1. Units participating in the Clean Water Supply and Environmental Sanitation Program in Rural Areas shall be responsible for using funds for their intended purposes and target groups, in accordance with the provisions set forth in this Circular and other current regulations; they shall periodically (quarterly, annually) report on the use of funds to the project management agency and simultaneously send such reports to the corresponding financial agency.

2. Ministries, sectors, and central agencies participating in the Program shall be responsible for inspecting subordinate units to ensure full compliance with financial management regulations, and periodically (quarterly, annually) report to the Ministry of Agriculture and Rural Development (Central Steering Committee for the Program), the Ministry of Finance, and the Ministry of Planning and Investment on the progress of assigned tasks and the overall use of funds participating in the Program. At the local level: The provincial steering committees for the Program shall be responsible for urging and inspecting participating units to fully comply with financial management regulations, and periodically (quarterly, annually) report to the People's Committees of provinces and centrally-administered cities, the Ministry of Agriculture and Rural Development (National Steering Committee for Clean Water Supply and Environmental Sanitation in Rural Areas), the Ministry of Finance, and the Ministry of Planning and Investment on the progress of assigned tasks and the overall use of funds participating in the Program.

3. The Ministry of Agriculture and Rural Development (Central Steering Committee for the Clean Water Supply and Environmental Sanitation Program in Rural Areas) shall be responsible for urging and inspecting ministries, sectors, and localities participating in the Program to fully comply with financial management regulations, coordinating with the Ministry of Finance and the Ministry of Planning and Investment to conduct regular or surprise inspections on the results achieved by the Program in ministries, sectors, and localities regarding the content and progress of the Program, and periodically (quarterly, annually) report to the Ministry of Planning and Investment and the Ministry of Finance on the progress of implementation and the overall use of funds for the entire Program.

4. This Circular shall take effect fifteen days after its publication in the Official Gazette and shall replace Circular No. 103/1999/TTLT/BTC-NN&PTNT dated August 21, 1999, jointly issued by the Ministry of Finance and the Ministry of Agriculture and Rural Development, guiding the management, allocation, and final accounts settlement of funds for the National Program on Clean Water Supply and Environmental Sanitation in Rural Areas. During implementation, if any issues arise, units are advised to reflect them to the Joint Ministries for study and appropriate amendments.

During implementation, if any issues arise, units are advised to reflect them to the Joint Ministries for study and appropriate amendments.