Circular No. 77/2014/TT-BGTVT stipulates the procedures and formalities for dredging and maintaining the maritime channel routes of Haiphong and Sai Gon - Vung Tau under the pilot mechanism as provided in Decision No. 73/2013/QĐ-TTg dated November 27, 2013 of the Prime Minister on piloting the mechanism for dredging and maintaining maritime channel routes managed by the Ministry of Transport.

CIRCULAR

Regulations on the procedures and formalities for dredging and maintaining the maritime channels of Hai Phong and Saigon-Vung Tau under the pilot mechanism provided for in Decision No. 73/2013/QD-TTg dated November 27, 2013 of the Prime Minister regarding the pilot mechanism for dredging and maintaining maritime channels managed by the Ministry of Transport Pursuant to Decree No. 15/2013/ND-CP dated February 6, 2013 of the Government on construction project quality management; Pursuant to Decree No. 114/2010/ND-CP dated December 6, 2010 of the Government on maintenance of works; Pursuant to Decree No. 12/2009/ND-CP dated February 12, 2009 of the Government on construction project management; and Decree No. 83/2009/ND-CP dated October 15, 2009 amending and supplementing certain articles of Decree No. 12/2009/ND-CP;

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Pursuant to the Law on Bidding No. 43/2013/QH13 dated November 26, 2013;

Pursuant to Decree No. 107/2012/NĐ-CP dated December 20, 2012 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Transport;

Pursuant to Decree No. 21/2012/NĐ-CP dated March 21, 2012 of the Government on management of seaports and maritime channels;

Pursuant to Decree No. 112/2009/ND-CP dated December 14, 2009 of the Government on construction project cost management;

Pursuant to Decree No. 63/2014/ND-CP dated June 26, 2014 of the Government guiding the implementation of certain provisions of the Law on Bidding concerning the selection of contractors;

Pursuant to Decision No. 73/2013/QD-TTg dated November 27, 2013 of the Prime Minister on piloting the implementation of the mechanism for dredging and maintaining maritime channels managed by the Ministry of Transport;

The Minister of Transport hereby promulgates this Circular stipulating the procedures and formalities for dredging and maintaining the maritime channels of Hai Phong and Saigon-Vung Tau managed by the Ministry of Transport, using state budget funds, piloted under the open bidding mechanism with lump-sum contracts ensuring the design standards of the channel routes from 2015 to 2016 based on the dredging and maintenance plans for maritime channels and lump-sum contracts without adjusting the implementation costs.

Based on Decree No. 130/2013/NĐ-CP dated October 16, 2013 of the Government on production and supply of public goods and services;

This Circular applies to state administrative agencies, organizations, and individuals related to the activities of dredging and maintaining the maritime channels of Hai Phong and Saigon-Vung Tau managed by the Ministry of Transport, using state budget funds, piloted under the open bidding mechanism with lump-sum contracts ensuring the design standards of the channel routes from 2015 to 2016 based on the dredging and maintenance plans for maritime channels and lump-sum contracts without adjusting the implementation costs.

Article 3. Allocation of organizations to implement

At the proposal of the Director of the Infrastructure Department and the Director of the Vietnam Maritime Administration,

1. Agency responsible for planning and budget: Ministry of Transport.

Article 1. Scope of Regulation

2. Channel management agency: Vietnam Maritime Administration.

Article 2. Applicability

3. Representative of the channel management agency: General Companies Ensuring Marine Safety.

Article 4. Procedures and formalities for implementation

1. Preparation of construction plan and budget estimate.

2. Preparation of contractor selection plan.

3. Organization of contractor selection.

4. Handover of construction site.

5. Implementation of construction work.

6. Inspection of construction work and public goods and services products.

7. Settlement and finalization of construction work and supply contract for public goods and services.

4. Handing over the construction site.

5. Commencing construction of the project.

6. Inspecting the project and inspecting public goods and services products.

7. Settling and finalizing accounts for the project and contracts for supplying public goods and services products.

Article 5. Preparation of plans and construction budgets for projects

1. The Vietnam Maritime Administration selects and enters into contracts with consulting units to prepare dredging plans and construction budgets for the maintenance dredging channel of the Hai Phong and Sai Gon - Vung Tau pilot projects under the open tendering mechanism with lump-sum contracts.

2. The Vietnam Maritime Administration reviews and reports to the Ministry of Transport for approval of the dredging maintenance plan for the Hai Phong and Sai Gon - Vung Tau maritime channels for the years 2015 and 2016 under the open tendering mechanism with lump-sum contracts.

3. Consulting units base on the approved plan and related factors to determine detailed construction project budget values, submit to the Vietnam Maritime Administration for review and approval according to regulations.

4. The Marine Safety Assurance Corporations establish environmental protection cost budgets in accordance with regulations, submit to the Vietnam Maritime Administration for approval.

Article 6. Establishment of Tender Selection Plans

The Marine Safety Assurance Corporations establish tender selection plans, submit to the Vietnam Maritime Administration for approval in accordance with legal provisions.

Article 7. Organization of Tender Selection

1. The Vietnam Maritime Administration shall be responsible for:

a) Review and approve tender documents and results of selecting contractors for the maintenance dredging of the Hai Phong and Sai Gon-Vung Tau maritime channels.

b) Select and enter into contracts with supervising consulting units in accordance with legal provisions on tendering or assign supervision to subordinate Project Management Boards as prescribed.

c) Select and enter into contracts with consulting units to conduct sudden surveys and measurements (at least three times per channel per year at positions and survey areas selected by the investor with a probability at the construction site, survey area of at least 20% of the channel surface per survey) to check the contractor's ability to maintain the design standards of the channel.

d) Approve the contents of the dredging maintenance construction contract in the form of a lump-sum contract in accordance with legal provisions.

2. The Marine Safety Assurance Corporations are responsible for:

a) Selecting and entering into contracts with tender consulting units to prepare tender documents for selecting contractors for the maintenance dredging of the Hai Phong and Sai Gon-Vung Tau maritime channels, submit to the Vietnam Maritime Administration for approval.

b) Organizing the evaluation of tender documents for the maintenance dredging of the Hai Phong and Sai Gon-Vung Tau maritime channels and submitting to the Vietnam Maritime Administration for review and approval of the results of selecting construction contractors according to regulations.

c) Selecting and entering into contracts with consulting units to perform environmental protection work in accordance with legal provisions on tendering.

d) Negotiating the contents of the dredging maintenance contract: scope, scale, standards, duration of the contract being two years (2015 and 2016), advance payment, settlement, performance bond, handling of violations, force majeure cases, and other necessary contents; submit to the Vietnam Maritime Administration for approval of the contract contents; proceed to sign the dredging construction contract in the form of a lump-sum contract without adjusting costs with the construction contractor.

Article 8. Handover of Construction Site Grounds

1. The Vietnam Maritime Administration leads the organization of handover of the construction site grounds (including approved silt disposal locations) to the construction contractor. The handover time of the construction site grounds is carried out when measuring and accepting the dredging and maintenance of 2014 or before the start of dredging construction.

2. The Marine Safety Assurance Corporation, supervising consulting units, and planning and budgeting consulting units cooperate with the Vietnam Maritime Administration to hand over the grounds to the construction contractor.

Article 9. Implementation of construction works

1. The contractor shall be responsible for:

a) Ensuring the implementation of the contract in accordance with the provisions of the law and consistent with the signed lump-sum contract.

b) Implementing dredging work in accordance with the provisions of the contract and the law, ensuring that the design standards (length, width of channel, depth, slope of dredging...) of the entire channel route are always maintained throughout the contract period.

c) Within the latest two days from the date of discovering shallow areas or upon reflection or request of the competent authority, the contractor must conduct surveys and develop a dredging plan; within the latest five days from the date of discovering shallow areas or upon reflection or request of the competent authority, the contractor must carry out dredging at shallow areas to meet the design standards of the channel route, the completion time of construction shall not exceed twenty days from the date of receiving reflections or requests; simultaneously notify the supervising consultant unit to implement construction supervision according to regulations.

In case of force majeure events (natural disasters, typhoons, floods, earthquakes, tsunamis...) preventing the survey and dredging of shallow areas, the contractor must immediately report to the Vietnam Maritime Safety Assurance Corporation for guidance and within the latest two days from the end of the force majeure event, must conduct surveys, develop a dredging plan, and immediately carry out dredging at shallow areas to meet the design standards of the channel route, the completion time of construction shall not exceed twenty days.

d) Selecting a survey and measurement unit to internally inspect the construction results at the site according to regulations. Conducting measurements and surveys of the dredging results of shallow sections using the contractor's funds as stipulated in point b, Clause 2 of this Article.

đ) In case the contractor fails to complete the dredging work to meet the design standards of the channel route on time, progress, and quality agreed in the contract and has been reminded or reflected once but still fails to complete the dredging of shallow areas to meet the design standards of the channel route as stipulated in point c of this clause, the Vietnam Maritime Safety Assurance Corporation shall report to the Vietnam Maritime Administration for approval to select a contractor with sufficient capacity to construct at a suitable unit price at the time of implementation. The contractor shall have to fully pay the selected contractor within seven days from the date the contractor receives payment under the signed contract. If the contractor delays in payment or does not fully pay the selected contractor after completing all payment procedures as prescribed, the Vietnam Maritime Safety Assurance Corporation shall report to the Vietnam Maritime Administration to decide to take necessary measures according to relevant laws and the lump-sum contract agreement to ensure payment to the selected contractor.

e) In case the contractor fails to complete the dredging work to meet the design standards of the channel route on time, progress, and quality agreed in the contract and has been reminded or reflected three times or twice consecutively but still fails to complete the dredging of shallow areas to meet the design standards of the channel route as stipulated in point c of this clause or engages in improper disposal of dredged silt and mud or illegal subcontracting, the Vietnam Maritime Safety Assurance Corporation shall report to the Vietnam Maritime Administration for approval to terminate the signed contract and select another contractor with sufficient capacity as prescribed to continue implementing the project.

g) In addition to the measures prescribed in points đ and e of this clause, the contractor shall also bear contractual penalties, remedy the consequences of violations, be responsible for incidents occurring to vessels due to shallow channels, and bear other responsibilities as prescribed by law and agreed in the signed contract.

2. The Marine Safety Assurance Corporations are responsible for:

a) Regularly managing, inspecting, and supervising the implementation process of the contractor and the survey and measurement inspection process of the project at the site.

b) Organizing regular hydrographic surveys and measurements (every two months for the Hai Phong maritime channel, every six months for the Saigon-Vung Tau maritime channel) to check the contractor's ability to maintain the design standards of the channel route. In case of discovering shallow areas, the Vietnam Maritime Safety Assurance Corporation will proactively notify the contractor to immediately carry out dredging at shallow areas to meet the design standards of the channel route, while notifying the supervising consultant unit to implement construction supervision according to regulations.

c) Publishing hydrographic notices based on the results of surveys and measurements.

d) Reporting the results of surveys and measurements and the results of maintenance dredging every two months to the Vietnam Maritime Administration and the local maritime port administration.

e) Reporting the results of environmental quality monitoring during the implementation of dredging and maintenance to the Ministry of Transport and related units according to environmental protection laws.

3. The Vietnam Maritime Administration shall be responsible for:

a) Directing the Vietnam Maritime Safety Assurance Corporation and related units to regularly conduct surveys and measurements for hydrographic notices as prescribed to check the contractor's ability to maintain the design standards of the channel route and serve phased or final acceptance of the project.

b) Directing the consulting unit to conduct spot surveys and measurements to check the contractor's ability to maintain the design standards of the channel route.

c) Reviewing the quality, progress of dredging and maintenance of the project, maritime safety during construction; suspending construction and handling violations by the contractor and related organizations and individuals according to the law.

Article 10. Acceptance of works and products, public services

1. At the end of the first year (2015), based on the parameters and standards of the channel ordered, the Vietnam Maritime Administration shall organize the acceptance of dredging completion and maintenance of design standards during the construction phase of the project and the volume of dredging.

2. At the end of the second year (2016), the Vietnam Maritime Administration shall organize the acceptance of the completed dredging work and maintenance of the design standards of the channel.

Article 11. Payment and settlement of works and contracts for supplying products, public services

1. Annually, the Vietnam Maritime Administration shall carry out the settlement of works based on the results of completion as stipulated and the signed contracts; pay and settle with the General Corporations for Marine Safety and contractors according to the contracts signed by the Vietnam Maritime Administration.

2. Annually, the General Corporations for Marine Safety shall advance payments and settle with contractors based on the results of completion according to the contracts signed by the corporations.

3. The procedures and formalities for payment and settlement of the maintenance dredging work of the Hai Phong and Saigon-Vung Tau maritime channels shall be carried out in accordance with the Circular guiding the payment and settlement of maintenance dredging work of maritime channels managed by the Ministry of Transport, issued by the Ministry of Finance.

Article 12. Organization of supervision in implementing dredging and maintenance of the Hai Phong and Saigon-Vung Tau maritime channels

The content and organization of supervision in dredging and maintenance of the Hai Phong and Saigon-Vung Tau maritime channels shall be implemented in accordance with the provisions of Chapter 3 of Circular No. 28/2014/TT-BGTVT dated July 29, 2014, issued by the Minister of Transport, regarding the procedures and formalities for implementing dredging and maintenance of maritime channels managed by the Ministry of Transport using state budget funds.

Article 13. Responsibilities of organizations and individuals in implementing dredging and maintenance of the Hai Phong and Saigon-Vung Tau maritime channels

1. The responsibilities of organizations and individuals related to dredging and maintenance of the Hai Phong and Saigon-Vung Tau maritime channels shall be implemented in accordance with the provisions of Chapter 4 of Circular No. 28/2014/TT-BGTVT dated July 29, 2014, issued by the Minister of Transport, regarding the procedures and formalities for implementing dredging and maintenance of maritime channels managed by the Ministry of Transport using state budget funds.

2. In addition to the responsibilities stipulated in Clause 1 of this Article, contractors who fail to complete the signed contracts and have their contracts terminated must bear responsibility for remedying damages caused by themselves, be prohibited from participating in construction of dredging and maintenance channel projects for one to three years, and bear other responsibilities as prescribed by law.

Article 14. Effective Date

This Circular takes effect from February 5, 2015.

Article 15. Implementation Organization

1. The Director of the Ministry's Office, the Inspector General of the Ministry, the Heads of Departments, the Director of the Vietnam Maritime Administration, the General Directors of the Northern and Southern General Corporations for Marine Safety, and relevant agencies, organizations, and individuals are responsible for implementing this Circular.

2. During implementation, if there are difficulties, agencies, organizations, and individuals should report to the Ministry of Transport for timely consideration and resolution.