Circular No. 76/2017/TT-BTC Amending and Supplementing Certain Articles of Circular No. 54/2013/TT-BTC dated May 4, 2013 of the Ministry of Finance on the Management, Use, and Exploitation of Centralized Rural Clean Water Supply Works

 CIRCULAR

Amending and supplementing certain Articles of Circular No. 54/2013/TT-BTC

dated May 4, 2013 of the Ministry of Finance on management, use, and operation of centralized rural clean water supply works

Centralized rural clean water supply works

Pursuant to the Law on Management and Use of State Property dated June 3, 2008;

Pursuant to Decree No. 52/2009/NĐ-CP dated June 3, 2009 of the Government detailing and guiding the implementation of certain provisions of the Law on Management and Use of State Property;

Pursuant to Decree No. 117/2007/NĐ-CP dated July 11, 2007 of the Government on production, supply, and consumption of clean water; Decree No. 124/2011/NĐ-CP dated December 28, 2011 of the Government amending and supplementing certain provisions of Decree No. 117/2007/NĐ-CP dated July 11, 2007 of the Government on production, supply, and consumption of clean water;

Pursuant to Decision No. 131/2009/QĐ-TTg dated November 2, 2009 of the Prime Minister on some preferential policies, incentives for investment, and management and operation of centralized rural clean water supply works;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Implementing Directive No. 35/CT-TTg dated December 27, 2016 of the Prime Minister on strengthening management, enhancing efficiency of exploitation and sustainable use of centralized rural clean water supply works;

At the proposal of the Director of the State Asset Management Agency,

The Minister of Finance promulgates This Circular amends and supplements certain Articles of Circular No. 54/2013/TT-BTC dated May 4, 2013 of the Ministry of Finance on management, use, and operation of centralized rural clean water supply works.

Article 1. Amending and supplementing certain Articles of Circular No. 54/2013/TT-BTC dated May 4, 2013 of the Ministry of Finance on management, use, and operation of centralized rural clean water supply works (hereinafter referred to as Circular No. 54/2013/TT-BTC)

1. Amend Article 11 as follows:

"Article 11. Managing Unit of the Work

Depending on specific conditions regarding the scale of the work, water supply technology, water treatment, economic and social characteristics of each locality, the People's Committee of the province shall decide on the method of transferring the work as follows:

1. Transfer the work to the managing unit in the following priority order:

a) State-owned enterprises holding 100% of the charter capital;

b) Publicly funded institutions;

c) The People's Committee of communes.

2. Organize the selection of enterprises to transfer the work."

2. Supplement Article 12a as follows:

"Article 12a. Determination of the Actual Remaining Value of the Work

1. Works that must determine their actual remaining value include:

a) Works transferred to the managing entity (including publicly funded institutions, People's Committees at the commune level, Cooperatives, enterprises using without state investment according to regulations, enterprises assigned but not yet recognized debt with the state according to regulations) but have not been operated effectively;

b) Works up to the date this Circular takes effect but have not been transferred to the managing entity;

c) Works received for transfer from the date this Circular takes effect without documentation or with incomplete documentation according to laws on investment construction.

2. The Department of Agriculture and Rural Development shall hire organizations with the necessary conditions to appraise value or take the lead in coordinating with the Department of Finance and relevant agencies to establish a Valuation Board to determine the actual remaining value of the work and the remaining period of use (excluding land use value) and send it to the Department of Finance for review and submit to the Chairman of the People's Committee of the province for decision on the actual remaining value of the work and the remaining period of use."

3. Amend point e Clause 2 Article 12 as follows:

"e) The value of the work or the actual remaining value of the work shall be determined in accordance with the provisions of Article 12a."

4. Amend point g Clause 2 Article 12 as follows:

"g) The term and progress of payment for the work under the form of organizing the selection of enterprises to transfer the work in accordance with the provisions of Article 14a of this Circular."

5. Supplement Clause 4 into Article 13 as follows:

"4. The transfer of works to publicly funded institutions shall be carried out in the form of placing orders or setting plans as stipulated in Decree No. 130/2013/NĐ-CP dated October 16, 2013 of the Government on production and supply of public goods and services and other amended and supplemented documents (if any)."

6. Supplement Article 14a as follows:

"Article 14a. Organizing the Selection of Enterprises to Transfer the Work

1. The selection of enterprises to transfer the work shall be carried out in accordance with the laws on bidding and the provisions of Clause 4 of this Article.

2. Enterprises participating in the bidding as stipulated in point b Clause 3 Article 3 of this Circular must have business functions suitable for the management, operation, and exploitation of the work.

3. Based on the actual situation of local budget balance, the People's Committee of the province shall consider and decide on the payment of the value of the work in the following forms (this content is stipulated in the Invitation to Bid and Contract for transferring centralized rural clean water supply works):

a) Payment immediately after winning the bid and receiving the handover of the work;

b) Payment in stages or corresponding to the actual remaining period of use of the work.

4. The Invitation to Bid shall be implemented in accordance with the laws on bidding and must meet the following contents:

a) Method of operating and exploiting the work;

b) The value of the work to be transferred: original cost of new construction or the actual remaining value of the work (determined in accordance with the provisions of Article 12a of this Circular). This price is the tender package price for enterprises to bid at or above the tender package price;

c) Form of payment of the winning bid value as stipulated in Clause 3 Article 14a of this Circular."

7. Amend point a, point b Clause 3 Article 14 as follows:

"a) For state-owned enterprises holding 100% of the charter capital transferred according to the provisions of point a Clause 1 Article 11 of this Circular: Carry out the handover and acceptance of the work; record the value of the transferred work according to the method of increasing state capital at the enterprise in accordance with the law.

b) For enterprises winning the bid for the work:

- Sign a contract for transferring the work with the competent state agency;

- Accept and organize the operation and exploitation of the work according to the signed contract;

- Pay the value of the work at the signed contract with the bid price according to the form stipulated in Clause 3 Article 14a of this Circular."

"8. Supplement Clause 4 of Article 15 as follows:"

"4. The transfer of works to the management and implementation by the People's Committee at the commune level shall be carried out in the form of placing orders and implementing plans as stipulated in Decree No. 130/2013/NĐ-CP dated October 16, 2013 of the Government on production and supply of public goods and services and other amended and supplemented documents (if any)."

9. Add Point d and Point e of Clause 3, Article 20 as follows:

“d) The original cost of transportation works transferred through bidding is the winning bid price.

e) The original cost of works transferred in cases where the remaining actual value of the works is determined according to the provisions of Article 12a of this Circular.”

10. Amend Point c of Clause 1, Article 21 as follows:

“c) In cases where the clean water consumption pricing plan decided by the competent state agency is lower than the clean water production cost pricing plan calculated correctly and sufficiently according to regulations, the Provincial People's Committee shall consider and decide to subsidize from the local budget or the Target Program fund (if available) to ensure the rights and legitimate interests of the water supply enterprises (through the volume of clean water consumed by the enterprise measured in cubic meters).”³).”

11. Add Point c of Clause 2, Article 21 as follows:

“c) For works transferred in cases where the remaining actual value is determined, the depreciation period of the works is the remaining usage period determined according to the provisions of Article 12a of this Circular.”

Article 2. Implementation

1. The Provincial People's Committee shall direct the Department of Agriculture and Rural Development to coordinate with relevant departments to review and assess the implementation of work transfers and classify them as follows:

a) Works that have been transferred and are currently operating effectively;

b) Works that have been transferred to enterprises for use under the form of state investment capital for enterprises, which enterprises have already implemented debt repayment to the State according to regulations;

c) Works that have been transferred to management entities (including public service units, People's Committees at the commune level, Cooperatives, enterprises using without state investment capital into enterprises, enterprises assigned but not yet implemented debt repayment to the State according to regulations), but are not yet operating effectively;

d) Works that have not yet been transferred to management entities before the effective date of this Circular; works received for transfer from the date this Circular takes effect.

2. Based on the review and assessment of the works specified in Clause 1 of this Article, the Department of Agriculture and Rural Development shall coordinate with relevant departments to submit to the Provincial People's Committee proposals for handling the works according to the following principles:

a) Continue transferring works to management and usage entities for the works mentioned in Points a and b of Clause 1 of this Article;

b) Implement the recovery of works transferred to management entities for the works mentioned in Point c of Clause 1 of this Article according to the laws on state asset management and usage, business laws, and related laws;

c) After determining the remaining actual value of each work, implement the transfer of works specified in Points c and d of Clause 1 of this Article in groups within a region or area (commune, inter-commune, district) according to planning (hereinafter referred to as works) to ensure overall operational efficiency, not transferring individual works.

Article 3. Effectiveness

1. This Circular takes effect from September 10, 2017.

2. Ministries, ministerial-level agencies, government agencies, provincial people's committees, and heads of agencies, units, organizations managing, using, and exploiting centralized rural clean water supply works shall be responsible for organizing the implementation of this Circular.

3. During the implementation process, if there are difficulties, agencies, organizations, units, and individuals are requested to promptly reflect to the Ministry of Finance for research and resolution./.