Circular No. 73/2007/TT-BTC guides the management of investment capital from communal budget funds for communes and towns.

CIRCULAR

Guidelines for managing investment capital from communal budget funds of communes and towns

Pursuant to the State Budget Law No. 01/2002/QH11 dated December 16, 2002; Government Decree No. 60/2003/NĐ-CP dated June 6, 2003 detailing and guiding the implementation of the State Budget Law;

Pursuant to the Construction Law No. 16/2003/QH11 dated November 26, 2003; Government Decree No. 16/2005/NĐ-CP dated February 7, 2005 on project management for construction works and Government Decree No. 112/2006/NĐ-CP dated September 29, 2006 amending and supplementing certain articles of Government Decree No. 16/2005/NĐ-CP dated February 7, 2005 on project management for construction works;

Pursuant to Government Decree No. 52/1999/NĐ-CP dated July 8, 1999 on the Regulation on Investment and Construction Management, Government Decree No. 12/2000/NĐ-CP dated May 5, 2000 and Government Decree No. 07/2003/NĐ-CP dated January 30, 2003 amending and supplementing certain articles of the Regulation on Investment and Construction Management issued together with Government Decree No. 52/1999/NĐ-CP dated July 8, 1999;

The Ministry of Finance issues guidelines for managing investment capital from communal budget funds of communes and towns as follows:

Part I

GENERAL PROVISIONS

1. These guidelines apply to construction projects under the management and decision-making authority of the People's Committee of communes and towns (hereinafter referred to collectively as the People's Committee of communes) to construct, renovate, and upgrade works using communal budget funds (hereinafter referred to collectively as communal budget funds) for new construction, renovation, and upgrading of works.

These guidelines do not apply to projects and works under the management of communes and towns that have been guided by other documents of competent authorities.

For projects funded by sources other than communal budget funds, it is encouraged to apply these guidelines.

2. The Chairman of the Provincial People's Committee or the People's Committee of centrally governed cities shall base their decisions on actual conditions and the capacity and level of investment and construction project management of commune People's Committees to implement delegation of management authority and decentralization of decision-making authority for project approval in accordance with specific conditions of each locality.

3. Before approving the economic and technical report for construction projects or investment construction projects (hereinafter referred to collectively as investment projects), the investor must clearly define the source of funding to ensure the implementation of the investment project. Investment projects must be guaranteed sufficient funding to complete within two years.

In special cases requiring immediate commencement due to natural disasters or fires, the investment project must obtain the agreement of the Standing Committee of the Commune People's Council and written approval from the District People's Committee, town People's Committee, or city People's Committee directly under a province (hereinafter referred to as the District People's Committee). Such investment projects must have a plan for anticipated funding sources; they must be prioritized for funding allocation when available; and arrears must be avoided.

4. Investment projects approved by the People's Committee of communes for investment must be within the scope of planning approved by competent authorities and consistent with socio-economic development conditions; they must comply with current procedures and regulations for investment and construction projects set forth by the State.

If an investment project is not included in the approved planning, before approval, the project must obtain written approval from the District People's Committee regarding the planning.

5. The Chairman of the People's Committee of communes must ensure the proper, economical, effective, democratic, transparent, and open use of investment capital; compliance with financial management systems, investment, and construction regulations of the State, and specific provisions of this Circular.

6. The project investor or the Project Management Board established by the investor or the consulting firm hired by the investor to manage the project (hereinafter referred to collectively as the investor) must manage investment construction projects in accordance with current State regulations and specific provisions of this Circular.

7. Financial agencies at all levels and higher-level agencies responsible for investment and construction project management according to their assigned functions and tasks must guide investors in organizing the implementation of investment projects. The State Treasury has the responsibility to monitor and settle investment capital promptly, fully, and in accordance with regulations when the conditions for settling investment capital are met according to current State regulations and specific provisions of this Circular.

Part II

SPECIFIC PROVISIONS

PART II. SOURCES OF CAPITAL FOR INVESTMENT PROJECTS

1. Sources of capital for investment projects managed by the People's Committee of communes include:

a) State budget capital:

- Communal budget capital allocated for investment projects;

- Support capital from higher-level state budgets for investment projects within the approval authority of the People's Committee of communes;

- Voluntary contributions from residents in the commune for specific investment projects, approved by the Commune People's Council and incorporated into the commune budget revenue for management.

b) Voluntary contributions and non-repayable aid from domestic and foreign organizations and individuals for investment projects managed by the commune.

2. Management of voluntary contributions from residents and support capital from domestic and foreign organizations and individuals (Point b, Clause 1, Section I, Part II) for investment projects managed by the commune shall be carried out as follows:

a) In the case of monetary contributions: The People's Committee of communes shall collect and deposit the funds into the commune budget account opened at the State Treasury.

b) In the case of in-kind contributions:

- For voluntary contributions of materials and labor from residents in the commune: based on the quantity of materials and labor contributed by residents, the People's Committee of communes shall determine the value in monetary terms according to local material prices and daily labor rates to record the investment capital income and expenditure for the investment project.

- For contributions in kind from organizations and individuals outside the country for investment in the commune, the Commune People's Committee shall establish a Council to determine the value of the contributed assets in monetary terms to hand over to the Project Owner for management; at the same time, record the investment project revenue and expenditure. The Council to determine the value of contributed assets shall be established by the Chairman of the Commune People's Committee; its members shall include representatives of the local authority and mass organizations within the commune and the Investment Supervision Board of the community.

II. ESTABLISHING THE INVESTMENT CAPITAL PLAN, ANNOUNCING THE INVESTMENT CAPITAL PLAN, TRANSFERRING FUNDS FOR PAYMENT AND ADJUSTING THE PLAN

1. Establishing the investment capital plan:

- Annually, the establishment of the investment capital plan by the Commune People's Committee shall be carried out in accordance with Circular No. 60/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance on the management of commune budgets and other financial activities of communes, wards, towns. Specifically, based on the commune's investment policy, the Project Owner shall prepare the investment capital plan and submit it together with the annual budget draft to the Commune People's Committee. Based on the commune's budget revenue, the Commune People's Committee shall compile and review the investment capital plan for submission to the Commune People's Assembly for approval (in form number 01/BC-KHĐT). The investment capital plan must ensure the following contents:

+ Total investment capital for the year, divided by each investment project and each source of capital (capital from the commune budget; capital from higher-level state budget support; capital raised and contributed by domestic organizations and individuals; capital from foreign organizations and individuals' aid); Additionally, for projects and works that have been and are being implemented (if any), there are quantities under implementation but without payment sources;

+ Any recommendations (if any).

- After the Commune People's Assembly approves the commune's investment capital plan, it shall be sent to the District Financial Planning Office (hereinafter referred to as the District Financial Planning Office). The District Financial Planning Office shall compile and report to the District People's Committee, the Department of Finance, and the Department of Planning and Investment (in form number 02/BC-KHĐT).

2. Announcing the investment capital plan and transferring funds for payment:

Based on the annual investment capital plan approved by the Commune People's Assembly; based on the commune's budget revenue; support from the higher-level state budget; other raised capital and the quantity of implementation of investment projects, the Chairman of the Commune People's Committee shall decide and announce the investment capital plan and transfer funds to the State Treasury (where the account is opened) as the basis for controlling and paying investment capital for the project.

3. Adjusting the annual investment capital plan:

- Periodically, the Commune People's Committee reviews the progress and investment objectives of the investment projects in the year to adjust the plan within their authority, transferring capital from investment projects that cannot be implemented to those that are ahead of schedule, still owe quantities, and investment projects that can complete beyond the plan in the year. The adjustment of the plan must ensure that the adjusted plan for the investment project is not lower than the amount of capital paid by the State Treasury for that investment project.

- The deadline for adjusting the annual plan ends no later than December 31 of the planning year.

III. TEMPORARY ADVANCE AND PAYMENT OF INVESTMENT CAPITAL FOR CONSTRUCTION WORKS

1. Opening an account

- The Project Owner may open an account at the State Treasury where it is convenient for the control and payment of capital and convenient for the Project Owner's transactions.

- The State Treasury shall guide the opening of accounts for the Project Owner.

2. Initial documents and materials of the investment project:

- Decision approving the economic-technical report on construction works along with the economic-technical report; for investment projects with a total investment amount below 100 million dong, only the decision approving the design estimate or the detailed cost estimate decision is required (accompanied by the detailed cost estimate);

- Decision approving the construction investment project and the decision approving the design estimate accompanied by the detailed cost estimate (in case of establishing an investment project);

- Document selecting contractors according to the Law on Bidding (including bidding, direct assignment, direct purchase, competitive tendering, self-execution, and contractor selection in special cases);

- Contract between the Project Owner and the contractor (including accompanying documents of the contract: pre-bid forecast of the bid invitation letter; pre-bid pricing forecast attached with the contractor's detailed price list and conditions for price changes (if any), general and specific conditions of the contract). The contract model is stipulated in Circular No. 02/2005/TT-BXD dated February 25, 2005 of the Ministry of Construction guiding contracts in construction activities;

- Detailed cost estimates approved for each work and sub-project for directly assigned and self-executed tender packages.

3. Temporary advance of investment capital for construction works:

a) Advance level:

- For construction tender packages: the temporary advance capital equals 20% of the contract value, but does not exceed the annual investment capital plan allocated to the tender package.

- For equipment procurement tender packages: the temporary advance capital is agreed upon by the Project Owner and the contractor, but not exceeding the contract value and the annual investment capital plan allocated to the tender package.

- For other expenses:

+ For consulting contracts: the temporary advance capital is agreed upon by the Project Owner and the contractor; at least 25% of the contract value allocated for the consulting work.

+ For project management and construction costs: the temporary advance capital is based on the needs of project management work, but not exceeding the approved detailed cost estimate according to the regulations of the Ministry of Construction.

+ For other project costs: the temporary advance is made according to the requirements of the work and the approved detailed cost estimate.

+ For works serving land clearance: the temporary advance capital is carried out according to the progress of land clearance.

The total temporary advance capital for other expenses shall not exceed the annual allocation plan for these expenses and the approved detailed cost estimate.

b) Application for temporary advance: based on initial documents and materials and the temporary advance levels specified above; the Project Owner shall check and prepare the application for temporary advance including: payment request for investment capital and withdrawal of investment capital (accompanied by the documents stipulated in Clause 2, Section III, Part II of this Circular) to be submitted to the State Treasury.

c) Recovery of temporary advance capital:

- For construction works contracts: the advance payment shall be recovered when the investment project has completed construction work volume reaching 30% of the contract value; the entire advance payment shall be recovered when the investment project has been paid for completed work volume reaching 80% of the construction contract value.

- For equipment procurement contracts: the advance payment shall be recovered with each payment for completed equipment volume.

- For other expenses: the advance payment shall be recovered during the period of payment for completed work volume of this task. Specifically, for land clearance tasks, the recovery of advance payment ends after the completion of the land clearance work.

- The level of recovery of advance payments for various types of contracts may exceed the above regulations if the Investor and contractor agree to propose such a level.

4. Payment of investment capital for construction projects:

In addition to the basic documents and materials stipulated in Clause 2, Section III, Part II, the Investor shall submit supplementary documents and materials to the State Treasury as required by the nature of the work for the payment of investment capital as follows:

a) Payment for completed construction work volume:

- For contracts implemented through direct award: the value of the completed work volume eligible for payment under the contract is the quantity accepted according to the terms of the contract signed between the Investor and the contractor and must meet the following conditions:

+ The accepted quantity must comply with the approved construction drawings (or construction technical drawings) and included in the detailed budget approved in accordance with current national norms and unit prices;

+ Included in the annual investment plan assigned.

- For tendered contracts: the completed construction work volume eligible for payment under tendering is the quantity accepted according to the progress, included in the signed contract, and included in the annual investment plan assigned.

- Depending on the contract duration and nature, payment will be made according to the following methods:

+ Lump sum payment: the Investor pays the contractor the lump sum price in the contract when the contractor fulfills all obligations according to the contract.

+ Fixed unit price payment: the Investor pays the contractor for completed work according to the fixed unit price determined in the contract.

+ Adjustable price payment: applicable to contracts where at the time of signing the contract, it was not possible to accurately determine the quantity and volume or there were significant price fluctuations due to state changes and the contract duration exceeds 12 months.

- In cases where the volume increases or decreases compared to the contract volume but within the scope of the tender documents and not due to the contractor's fault, the increased or decreased volume must comply with specific conditions stipulated in the contract, have approval documentation, and be calculated based on the contract unit price. The adjusted contract value shall not exceed the budget estimate, total budget estimate, or tender package price in the approved tender plan, except with permission from the authorized person.

Volumes exceeding or outside the contract, beyond the scope of the tender documents, must have approval documentation (if the excess volume is tendered) or an approved additional budget (if the excess volume is directly awarded) by the authorized authority regarding both volume and unit price.

Based on the accepted volume, the Investor and contractor determine the implementation progress according to the contract to request payment.

When there is completed construction work volume meeting the payment conditions, the Investor checks and prepares a payment request form to send to the State Treasury. The payment request form includes:

+ Acceptance record of completed volume, accompanied by a calculation of the volume value; Contract termination record (in case of final payment);

+ Investment capital payment request form;

+ Advance investment capital payment request form (if there is advance payment);

+ Capital withdrawal form;

+ Documentation explaining the increase or decrease in volume compared to the contract (if applicable).

b) Payment for completed equipment volume:

The completed equipment volume eligible for payment must meet the following conditions: the equipment list must comply with the approved investment project decision; included in the assigned investment plan; included in the contract between the Investor and the equipment supplier; equipment must be warehoused (for non-installation equipment) or fully installed (for installation equipment).

When there is completed equipment volume meeting the payment conditions, the Investor checks and prepares a payment request form to send to the State Treasury. The payment request form includes:

+ Acceptance record, handover record between the Investor and the supplier; Contract termination record (in case of final payment);

+ Invoice (a certified copy with signature and stamp of the Investor) for directly awarded contracts;

+ Investment capital payment request form;

+ Advance investment capital payment request form (if there is advance payment);

+ Capital withdrawal form;

c) Payment for completed volume of other expenses:

The completed volume of other expenses eligible for payment is the quantity accepted, included in the contract (for construction consultancy services), included in the approved budget, included in the annual investment capital plan, and according to national standards (currently, construction consultancy fees are paid according to the standards set out in Decision No. 10/2005/QD-BXD dated April 15, 2005, issued by the Minister of Construction on the issuance of Project Management Standards for Construction Projects and Decision No. 11/2005/QD-BXD dated April 15, 2005, issued by the Minister of Construction on the issuance of Standards for Costs of Project Preparation and Design; cost standards for auditing final settlement reports of completed investment projects are implemented according to Clause 4, Section IV, Part II of this Circular).

- For construction consultancy services performed under construction consultancy contracts:

When there is completed consultancy work volume according to the contract, meeting the payment conditions, the Investor checks and prepares a payment request form to send to the State Treasury. The payment request form includes:

+ Acceptance record accompanied by a calculation of the completed volume value; contract termination record (if final payment);

+ Investment capital payment request form;

+ Advance investment capital payment request form (if there is advance payment);

+ Capital withdrawal form;

- Payment for completed volume of other expenses:

The costs for project investment appraisal, technical design review, construction drawing design, budget estimate review, total project budget estimate, final account report review of completed investment projects (conducted either by the Investor itself or by competent agencies of the People's Committee at the district level); land registration fees; compensation costs for land clearance; project management costs; community investment supervision board costs, and other related costs. Based on approved estimates and state regulations, the Investor shall check and prepare payment request files to send to the State Treasury. Payment request files include:

+ Investment capital payment request form;

+ Capital withdrawal form;

+ A detailed list of expenditure items (accompanied by relevant supporting documents such as demand notices for payment, receipts, invoices, income vouchers, expense vouchers... from authorized agencies).

The model of the Acceptance Certificate is stipulated in Decree No. 209/2004/NĐ-CP dated December 16, 2004 of the Government on construction quality management.

5. For packages implemented under the form of villagers undertaking the work themselves:

- For packages with simple technical designs, mainly involving manual labor that villagers can undertake, the Investor shall report to the Competent Authority to approve the project investment and assign it to the villagers to organize construction and bear responsibility themselves. The Investor directly signs contracts with the villagers through Construction Teams to facilitate their participation in labor and increase their income. Initial documentation and advance payment (or payment) documentation for the package shall be similar to those for direct award packages.

- Villagers undertaking the work themselves may receive an advance payment of up to 50% of the contract value without exceeding the annual investment capital allocation for the package.

- Based on the contract and the completed construction volume accepted upon inspection, the Investor shall prepare an advance payment (or payment) request file and submit it to the State Treasury to request an advance payment (or payment) for the Construction Teams. In cases where the Construction Teams do not have separate accounts, the Investor shall request the State Treasury to make cash payments directly to the villagers involved in the construction work; the Investor and the Community Investment Supervision Board shall strictly supervise the payment of wages to the villagers.

6. The amount paid for each item of work or sub-project shall not exceed the approved estimate or the approved tender price; the total amount paid for the investment project shall not exceed the approved total investment ceiling.

The amount paid for the investment project in a year (including both advance payments and payments for completed work) shall not exceed the annual investment capital allocation for the project.

7. Time limit for preparing payment request files and time limit for payment:

a) Time limit for preparing payment request files: within three working days from the date of receipt of valid payment (or advance) request files from the contractor; the Investor must complete the payment (or advance) request procedures and transfer the payment (or advance) files to the State Treasury (where the account is opened).

b) Time limit for payment: based on the payment (or advance) request files submitted by the Investor (as stipulated in Clause 2 and Clause 3, Section III, Part II of this Circular); within less than seven working days (from the date of receipt of all documents), the State Treasury shall carry out the payment (or advance) control process for the Investor and pay (or advance) to contractors and related units according to the Investor's request; simultaneously recovering any advance payments (if any).

IV. FINAL ACCOUNTING OF INVESTMENT CAPITAL FOR CONSTRUCTION PROJECTS.

1. All investment projects under the management and decision-making authority of the People's Committee of the commune, upon completion and handover for use, must prepare a final account report and have it reviewed and approved according to current financial management regulations and specific provisions in this Circular.

2. Documentation for the final accounting of completed construction investment projects includes:

- Final investment accounting report forms for completed projects according to Form 01/QTDA and 02/QTDA (guidelines for filling out final accounting report forms are provided in Appendix I attached to this Circular).

- Relevant legal documents including: Decision approving the economic-technical report on construction works or Decision approving the construction investment project, Decision approving the technical design and budget estimate or Detailed budget estimate approval Decision, Direct award or winning bid Decision (if applicable) and supplementary documents (if applicable).

3. Review of the final accounting report of completed investment projects:

- When the construction investment project is completed and handed over for use, the Investor must complete the final investment accounting report within two months at the latest. Within one month at the latest, the competent unit under the management of the Investment Decision Maker must complete the review of the final investment accounting report and submit it to the Investment Decision Maker for approval of the final investment accounting report.

- If the competent unit under the management of the Investment Decision Maker lacks the capacity to review the final investment accounting report, the Investor shall report to the Investment Decision Maker to choose one of the following options:

+ Engage an independent auditing organization to audit the final investment accounting report;

+ Request the District Finance and Planning Office to review the final investment accounting report;

- Contents of the review of the final investment accounting report (audit) and contents of the report on the results of the final investment accounting report review (audit report) are specified in Appendix II attached to this Circular.

4. Standards for reviewing costs of final accounting reports and audits of completed investment projects:

- Organizations and units reviewing and auditing final investment accounting reports of completed projects shall be entitled to receive review costs for final investment accounting reports according to the following standards:

The standard for reviewing the final settlement report on investment capital of completed projects shall be calculated at 0.32% of the total investment value of the project (with a minimum of 300,000 VND).

The standard for auditing the final settlement report on investment capital of completed projects shall be calculated at 0.50% of the total investment value of the project plus value-added tax (with a minimum of 500,000 VND).

The cost of reviewing the final settlement report on investment capital of completed projects shall be included in other costs in the total value of the final settlement of investment capital of the project.

5. Approving the final settlement of investment capital of completed projects:

Based on the report on the results of the review of the final settlement (audit report) of the investment capital of completed projects by the organizations and units conducting the review, the Project Owner shall check and submit to the Investment Decision Maker for issuance of the Decision approving the final settlement of investment capital of completed projects.

The Decision approving the final settlement of investment capital of completed projects must be publicly posted at the People's Committee Office of the commune and sent to the following agencies and units:

- Investor;

- State Treasury (where the account is opened);

- District Finance and Planning Department;

- Community Investment Supervision Board.

The final settlement report on investment capital of completed projects shall be prepared according to the file retention regulations and stored for 20 years from the date the final settlement report on investment capital of the completed project is approved.

V. MONITORING OF INVESTMENT PROJECTS.

All investment projects under the management and investment decision-making authority of the Commune People's Committee must be monitored during implementation. The monitoring of investment projects is assigned to the Community Investment Supervision Board to carry out.

The Community Investment Supervision Board is established and performs its functions and tasks in accordance with Decision No. 80/2005/QĐ-TTg dated April 18, 2005 of the Prime Minister on the promulgation of the Regulation on Community Investment Monitoring and Circular Joint Circular No. 04/2006/TTLT-KH&ĐT-UBTƯMTTQVN-TC dated December 4, 2006 of the Ministry of Planning and Investment, the Standing Committee of the Vietnam Fatherland Front Central Committee, and the Ministry of Finance guiding the implementation of the Regulation on Community Investment Monitoring.

The operating expenses of the Community Investment Supervision Board are implemented in accordance with Part IV of Joint Circular No. 04/2006/TTLT-KH&ĐT-UBTƯMTTQVN-TC dated December 4, 2006 of the Ministry of Planning and Investment, the Standing Committee of the Vietnam Fatherland Front Central Committee, and the Ministry of Finance.

In cases where small-scale investment projects (with a value below 100 million VND) have simple technical designs and the Project Owner lacks the capacity to self-monitor construction works and cannot hire a construction supervision consultant, the Project Owner shall request the Investment Decision Maker to assign the Community Investment Supervision Board to organize construction work supervision; in this case, the Community Investment Supervision Board shall be entitled to the standard cost of construction work supervision, not exceeding the maximum standard for construction work supervision set by the Ministry of Construction (currently Decision No. 10/2005/QĐ-BXD dated May 14, 2005 of the Minister of Construction).

VI. REPORTING AND INSPECTION REGIME

1. Reporting System:

- Every six months and annually, the Commune People's Committee shall prepare reports on the implementation of the volume and paid investment capital (according to Form No. 03/BC-THKH) and the final settlement of investment capital of completed projects within their management scope (according to Form No. 03/THQT) and send them to the Commune People's Council, the Community Investment Supervision Board, and the District Finance and Planning Department. The six-month report shall be submitted before July 10, and the annual report shall be submitted before January 15 of the following year.

The content of the report must analyze and evaluate the implementation situation, investment results during the period, capital usage, existing issues, and propose measures to address these issues.

- Based on the report on the implementation of investments by the Commune People's Committee, the District Finance and Planning Department shall be responsible for preparing a consolidated report to be submitted to the County People's Committee and proposing solutions to address existing issues (according to Form No. 04/BC-THKH).

2. Inspection: periodically or unexpectedly, the District Finance and Planning Department shall directly organize inspections or request the Community Investment Supervision Board to inspect, monitor, and evaluate investment projects managed by the Commune People's Committee regarding capital usage, project progress, and compliance with state financial policies and regulations for construction investment.

VII. RESPONSIBILITIES AND LIMITATIONS OF RELATED AUTHORITIES

1. Provincial and centrally-administered city People's Committees:

- Based on specific local conditions, implement the delegation of authority to approve investment projects to the Chairman of the Commune People's Committee in accordance with Article 11 of Decree No. 16/2005/NĐ-CP dated February 7, 2005 of the Government on project management for construction works;

- Direct the County People's Committees and functional agencies under their management to guide the Commune People's Committees to manage investment projects in accordance with state regulations and this Circular;

- Direct the finance sector to organize training to enhance the capacity of commune-level officials in managing construction investment projects.

2. District People's Committee:

Implement state management over the management of construction investment projects; direct functional agencies under their management to coordinate and assist the Commune People's Committees in managing construction investment projects in accordance with current state regulations and this Circular.

3. District Finance and Planning Departments:

- Guide the Project Owner to perform financial management functions for construction investment projects in accordance with prescribed regulations and guidance in this Circular.

- Review the final settlement report on investment capital of completed projects within the authority of the Commune People's Committee to decide on investment (upon written request from the commune).

4. Commune People's Committees:

- Manage construction investment projects in accordance with the provisions on project management for construction works and the directives of competent state authorities;

- Approve investment projects and approve the final settlement of investment capital of completed projects for those projects delegated, in accordance with the provisions on project management for construction works.

- Organize and implement tasks as prescribed in Part I of Circular No. 02/2007/TT-BXD dated February 14, 2007, issued by the Ministry of Construction guiding certain contents on: project investment planning, review, approval; construction permits and organization of project investment management as stipulated in Decree No. 16/2005/NĐ-CP dated February 7, 2005 and Decree No. 112/2006/NĐ-CP dated September 29, 2006 of the Government.

- Organize the receipt and use of investment capital for the intended purpose and target as prescribed.

- Implement reporting and final settlement of investment capital for projects as prescribed.

5. Project Investor:

- Organize and implement tasks as prescribed in Sections III and IV of Part I of Circular No. 02/2007/TT-BXD dated February 14, 2007, issued by the Ministry of Construction.

- Bear responsibility for organizing project investment construction management as prescribed in Part III of Circular No. 02/2007/TT-BXD dated February 14, 2007, issued by the Ministry of Construction.

- Bear responsibility for preparing the final settlement report on investment capital for completed construction works to submit to the Investment Decision Maker for approval of the final settlement of investment capital for completed projects (as prescribed in Section IV, Part II of this Circular).

- Within six months from the date of the decision approving the final settlement of the completed project, the Project Investor must complete the resolution of debts and finalize the settlement procedures for the project's investment account at the capital disbursement agency.

- The Project Investor bears responsibility for implementing project investment construction management in accordance with the provisions of the Law. In case the Project Investor violates regulations during the organization and implementation of project investment construction management, they will be subject to administrative penalties according to the provisions of Section I, Chapter II of Decree No. 126/2004/NĐ-CP dated May 26, 2004 of the Government on administrative penalties for violations in construction activities, infrastructure urban management, and housing management and use, depending on the severity and nature of the violation.

- Implement the reporting system for investment projects as prescribed.

6. Community Supervisory Board:

- Require the Project Investor and contractors to report, explain, and provide information to clarify issues that the community has opinions about.

- Compile the community's opinions, relevant state management agencies' opinions, reports from the Project Investor and contractors, propose solutions to address issues that the community has opinions about, and recommend them to competent authorities for consideration and decision.

- Inform the community and relevant agencies about the decisions made by competent authorities regarding issues that the community has opinions about.

7. For Contractors:

- Contractors are responsible for organizing and implementing their activities in accordance with signed contracts and legal regulations. In case of violations during the organization and implementation process, they will be subject to administrative penalties according to the provisions of Decree No. 126/2004/NĐ-CP dated May 26, 2004 of the Government on administrative penalties for violations in construction activities, infrastructure urban management, and housing management and use, and Decree No. 84/2006/NĐ-CP dated August 18, 2006 of the Government on compensation for damages, disciplinary measures, and administrative penalties for thrift and waste prevention.

- Together with the Project Investor, resolve remaining issues according to signed contracts. Fully and promptly refund the amount of capital paid by the Project Investor that exceeds the approved final settlement value.

8. State Treasury:

- Organize the implementation of capital disbursement control and payment in accordance with the prescribed State regulations and this Circular; confirm the amount of capital disbursed, evaluate the payment situation; annually settle the capital for each investment project according to the State budget settlement regulations.

- Coordinate with the Project Investor to recover the amount of capital paid to individuals and units exceeding the approved final settlement value; urge, guide, and coordinate with the Project Investor to resolve debts to complete the payment and final settlement of accounts for projects that have been approved for final settlement.

Part III

IMPLEMENTING PROVISIONS

This Circular takes effect fifteen days after its publication in the Official Gazette and replaces Circular No. 106/2003/TT-BTC dated November 7, 2003, issued by the Ministry of Finance guiding the management of basic construction investment capital at commune and town levels./.