Circular No. 75/2004/TT-BNN guiding the establishment, consolidation, and development of water cooperation organizations.

CIRCULAR

Guidelines for the establishment, consolidation, and development of water usage cooperation organizations

Pursuant to the Waterworks and Protection Ordinance of Irrigation Works No. 32/2001/PL-UBTVQH10 issued by the Standing Committee of the National Assembly on April 4, 2001; and Decree No. 143/2003/NĐ-CP dated November 28, 2003 of the Government detailing the implementation of certain provisions of the Waterworks and Protection Ordinance of Irrigation Works.

The Ministry of Agriculture and Rural Development guides the establishment, consolidation, and development of water usage cooperation organizations.

A. GENERAL PROVISIONS

1. "Water usage cooperation organization" has been defined in the Waterworks and Protection Ordinance of Irrigation Works as a form of cooperation among individuals who benefit from irrigation works, tasked with operating and protecting such works, serving production and public life within a specific area.

2. Objectives of establishing, consolidating, and developing water usage cooperation organizations:

- Ensuring that irrigation works, particularly those at the commune and village levels, have genuine managers; implementing operation, maintenance, and repair of works to protect and enhance their effectiveness.

- Ensuring the consistency and completeness of management work, serving as a bridge between state-owned enterprises operating irrigation works and related services to help farmers effectively utilize water.

3. Water usage cooperation organizations are granted by the State or collective entities the right to manage and operate suitable-scale irrigation works to provide irrigation and drainage services for households, individuals, and organizations within the scope of villages, communes, or inter-commune areas. Such organizations can be structured as cooperatives, associations, or unions.

4. Principles of organization

4.1. Irrigation works and systems serving villages, communes, or inter-commune areas shall be managed by one organization.

4.2. Water usage cooperation organizations are established based on the principle of voluntary mutual benefit; procedures for establishment, organizational mechanisms, management, and operations of these organizations follow current laws corresponding to each organizational form and their respective charters and regulations.

4.3. Households utilizing irrigation water from different sources have the right to participate in multiple water usage cooperation organizations.

4.4. Water usage cooperation organizations manage and operate according to the system of works, independent of administrative boundaries, subject to state management by local authorities, technical and operational guidance from specialized agencies (county agricultural and rural development departments, irrigation works exploitation companies that the organization depends on), and diverse in scale and organizational forms, fitting specific conditions regarding works, management level, public awareness, and meeting local residents' needs.

4.5. For existing water usage cooperation organizations, specific cases must be reviewed to develop plans for consolidation and development based on current organizations to enhance operational efficiency.

4.6. Water usage cooperation organizations operate according to their bylaws or regulations approved by their congresses or meetings; they manage finances autonomously, democratically, and transparently following financial sector guidelines; maintain independent accounting; possess legal personality, separate bank accounts, and can borrow from banks; and have office premises.

4.7. In addition to irrigation and drainage services, water usage cooperation organizations may engage in other services as prescribed by law.

5. The tasks and powers of water usage cooperation organizations are specifically stipulated in Article 9 of Decree No. 143/2003/NĐ-CP dated November 28, 2003 of the Government.

B. STRUCTURE OF WATER USAGE COOPERATION ORGANIZATIONS

I. SCALE AND FORMS OF ORGANIZATION

1. Water usage cooperation organizations managing independent systems of works

Systems of works constructed within the territory serving irrigation and drainage confined within the scope of villages, inter-village, communes, or inter-commune areas (unrelated to systems managed by state-owned enterprises operating irrigation works) shall establish one organization to uniformly manage and operate the works under its jurisdiction in appropriate cooperative forms.

For water usage cooperation organizations managing systems of works within the scope of villages, inter-village: The Chairman of the People's Committee of the Commune issues a decision recognizing and approving the charter or operational regulations of this organization.

For water usage cooperation organizations managing systems of works within the scope of communes, inter-commune: The Chairman of the People's Committee of the District issues a decision recognizing and approving the charter or operational regulations of this organization.

If the water usage cooperation organization is a team or group under an Agricultural Cooperative, the organization's structure, functions, tasks, and operational regulations are stipulated in the Charter of the Cooperative in accordance with the Law on Cooperatives.

2. Water usage cooperation organizations managing works within systems of works operated by state-owned enterprises.

a) Small-scale irrigation works with less complex technology, related to systems managed by state-owned enterprises operating irrigation works, serving small irrigated areas, shall be managed by water usage cooperation organizations based on specific local conditions.

b) The scale of service and organizational forms of various types of water usage cooperation organizations in this system are specified as follows:

- Works and channels serving irrigation and drainage for villages, inter-village, or communes shall establish water usage cooperation organizations at the village, inter-village, or commune level (based on administrative boundaries) or teams directly under Agricultural Cooperatives.

- Works and channels serving two communes or more shall be organized for management along inter-commune channel scales (not based on administrative boundaries). The most suitable organizational form in this case is a Water Users Cooperative, association, or union of water users (specialized model).

The Chairman of the People's Committee of the District decides to recognize and approve the charter or operational regulations of this organization.

II. MANAGEMENT STRUCTURE

The management body (management board) is elected by members of the water usage cooperation organization through regular meetings or congresses of the organization.

Depending on the scale, large or small, and the organizational form established, the organizational structure shall be defined as follows:

For water usage cooperative organizations with a scale spanning multiple villages or communes, they shall organize their administrative structure as follows:

+ 1 director (chairman, association president) and 1 to 2 deputy directors (vice-chairman, vice-association president), who may establish specialized groups such as an economic group (with 1 treasurer and 1 accountant) and a technical group (for operation, repair, and water distribution...), or assign 1 person to oversee each function.

For water usage cooperative organizations with a small scale (village level), the organizational structure of this type includes a team leader (association chairman, team leader), working under a part-time system, which is streamlined, efficient.

For water usage cooperative organizations subordinate to other organizations such as Agricultural Cooperatives, depending on specific conditions, they may establish a water management team or squad directly under the Agricultural Cooperative's leadership, tasked with implementing irrigation and drainage service duties. The organizational structure of this type includes a team leader (squad leader) working part-time.

C. ASSETS AND FINANCE

I. ASSETS

The assets of water usage cooperative organizations include those managed by the cooperative organization and those whose management rights have been granted by the state or collective bodies to the cooperative organization for direct management.

1. Assets handed over to water usage cooperative organizations for direct management are valued at the time of transfer but still belong to the ownership of the State (assets from state investment funds) or to the collective (assets from contributions by collectives, individuals, state support, or direct sponsorship by other organizations).

2. Water usage cooperative organizations must bear responsibility before the State and community for preserving and enhancing the effectiveness of the assets they manage, and must take responsibility for losses, damage, or ineffective management.

II. FINANCE

1. Revenue sources of water usage cooperative organizations include water fees collected from households using water through irrigation and drainage services, from state budget support (for organizations entitled to such support according to regulations), and from other services (if applicable).

Based on the framework of fee levels set forth in Article 19 of Decree No. 143/2003/NĐ-CP dated November 28, 2003 of the Government "providing detailed implementation of certain provisions of the Ordinance on Exploitation and Protection of Irrigation Works," the Provincial People's Committee shall stipulate the water fee and water price levels within the scope of services provided by water usage cooperative organizations. Based on the framework of fee levels prescribed by the Provincial People's Committee, water usage cooperative organizations must negotiate with entities or individuals directly using water to determine specific fee levels that are appropriate.

2. Expenditure of water usage cooperative organizations must focus on maintenance, operation, and upkeep of works (expenditure for maintenance, operation, and upkeep of works must not be less than 80% of total expenditure) and must be approved by a general meeting of members (or a representative meeting) and comply with current financial regulations.

For water usage cooperative organizations managing works under the system managed by state-owned enterprises exploiting irrigation works, it is necessary to collect from households using water sufficient irrigation fees to cover the enterprise's costs according to current regulations. Misuse of irrigation fees for purposes other than intended is strictly prohibited.

3. Water usage cooperative organizations managing works or systems of irrigation works transferred by the State the right to manage are provided with funding according to Article 13 of the Ordinance on Exploitation and Protection of Irrigation Works and Article 11 of Decree No. 143/2003/NĐ-CP dated November 28, 2003 of the Government.

4. Annual funding allocation to water usage cooperative organizations is carried out according to Articles 12, 13, 14, 15, 16, 17, and 18 of Decree No. 143/2003/NĐ-CP dated November 28, 2003 of the Government.

D. IMPLEMENTATION ORGANIZATION

1. The Water Resources Department assists the Ministry of Agriculture and Rural Development in coordinating with relevant agencies to guide and direct localities in implementing this Circular.

2. Provincial People's Committees shall base on Article 6 of Decree No. 143/2003/NĐ-CP of the Government to specify the details of transferring irrigation works to water usage organizations or individuals for management, exploitation, and protection; formulate policies to address workforce issues of state-owned enterprises after the transfer, ensuring the rights of workers, and directing the training of staff for water usage cooperative organizations.

3. Departments of Agriculture and Rural Development of provinces have the following responsibilities:

- Coordinate with the Steering Committee for Enterprise Reform and related sectors to advise the Provincial People's Committee on building plans to consolidate, establish, and operate water usage cooperative organizations throughout the province; specific regulations on the delegation of works from state-owned enterprises to water usage cooperative organizations or individuals for management, exploitation, and protection.

- Direct state-owned enterprises exploiting irrigation works to develop plans to improve organizational structures and operations; establish and consolidate water usage cooperative organizations within their management scope; transfer works and irrigation fees within the transferred area to water usage cooperative organizations for management when regulations are in place.

- Coordinate with District People's Committees to direct state-owned enterprises exploiting irrigation works in their areas, and communes to assess the capacity of irrigation works in their areas; establish, consolidate, and develop water usage cooperative organizations; build and propose plans for transferring irrigation works to water usage cooperative organizations for management.

4. State-owned enterprises exploiting irrigation works develop plans for transferring works and irrigation fees to water usage cooperative organizations for management. They have the responsibility to consider supporting guidance and training for staff of water usage cooperative organizations to master professional knowledge about irrigation, operation, maintenance, and upkeep of irrigation works.

5. The People's Committee of the district is the agency responsible for directly performing state management functions over cooperative organizations using water. Approving the charter or operational regulations of cooperative organizations using water at the scale of the entire commune or higher.

6. The People's Committees of communes within the scope of the works (or systems of works) managed by cooperative organizations using water shall be responsible for coordinating and resolving any obstacles hindering the organization and operation of such cooperative organizations, ensuring their rights and responsibilities, professional activities, and creating all conditions to ensure that these cooperative organizations operate effectively.

In cases where disputes arise between communes and cannot be resolved by the Management Board of the cooperative organization using water, they must be referred to the People's Committee of the district for resolution.

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

During implementation, the Departments of Agriculture and Rural Development of the provinces, enterprises exploiting irrigation works, and cooperative organizations using water shall regularly report results to the Ministry of Agriculture and Rural Development (through the Water Resources Department), promptly reflecting any obstacles for research and appropriate amendments and supplements./.