Decision No. 78/2004/QD-TTg On adjusting and supplementing certain mechanisms and policies to accelerate the progress of building residential clusters and housing in flood-prone provinces in the Mekong Delta

Pursuant to …;

Regarding the adjustment and supplementation of certain mechanisms and policies

to accelerate the progress of building residential clusters and housing

in provinces frequently flooded in the Mekong Delta

___________________

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to Decision No. 173/2001/QĐ-TTg dated November 6, 2001 of the Government on economic and social development in the Mekong Delta region for the period 2001-2005;

Pursuant to the conclusions of the Prime Minister at the meeting held on March 17, 2004; opinions of ministries, sectors, and provincial people's committees at the conference discussing measures to accelerate the implementation of the program to build residential clusters and housing in Ho Chi Minh City on April 20, 2004;

At the proposal of the Minister of Construction,

 DECISION:

Article 1. The People's Committees of provinces and cities in the Mekong Delta region frequently affected by flooding (provincial-level People's Committees) shall closely coordinate with relevant ministries and sectors:

- In 2004, focus on directing resolutely, addressing promptly difficulties and obstacles within their authority to complete all work of raising the ground level and constructing embankments for residential clusters and lines;

- Accelerate the progress of construction of essential infrastructure projects (water supply, drainage, internal roads...) and housing construction, arranging residents to live stably and safely according to the set goals and tasks;

- Strive to complete the program of building residential clusters and housing before December 31, 2005.

Article 2. On sources of funding and financial mechanisms:

1. The total investment amount for raising the ground level and constructing embankments for existing residential areas (including central budget funds and loans from the Development Support Fund) has been approved by the Prime Minister in Decision No. 173/2001/QĐ-TTg dated November 6, 2001 and Decision No. 216/2002/QĐ-TTg dated March 25, 2002.

2. Financial mechanism:

a) Regarding funds for raising the ground level and constructing embankments:

The Ministry of Finance and the Development Support Fund are responsible for transferring sufficient funds to localities from the central budget and loans as prescribed to implement the raising of the ground level for residential clusters and lines and the construction of embankments.

b) Regarding funds for constructing essential infrastructure:

- Localities proactively allocate local budgets to invest in essential infrastructure. In cases where localities face difficulties, the Ministry of Finance will increase budget subsidies according to the annual budget plan for the provinces to implement;

- Prioritize the use of integrated funds from target programs to invest in essential infrastructure, especially the Rural Clean Water and Environmental Sanitation Program and Rural Roads Program;

- Allow localities to actively adjust and sell up to 30% of the land in residential clusters and lines to invest in essential infrastructure; simultaneously, allow provinces to apply the advance payment method for contractors;

- Provinces may borrow state credit funds from the Development Support Fund to construct essential infrastructure in residential clusters and lines. The maximum loan term is 24 months. Loan interest rates follow current regulations. The Development Support Fund will guide localities in implementing this.

c) Regarding loan funds for housing construction:

- To accelerate the progress of housing construction sold on installment to residents, allow the Social Policy Bank to provide loans to enterprises for housing construction sold on installment to residents through contracts signed between enterprises and localities. The Social Policy Bank will direct the completion of procedures (handover, acceptance of houses, debt recognition, agreements...) and provide guidance on implementation.

- The Development Support Fund will implement lending to enterprises with projects to produce components and materials for housing sold on installment to residents. Loan interest rates and terms follow the provisions of Clause 5, Article 1 of Decision No. 128/2002/QĐ-TTg dated September 30, 2002 of the Prime Minister.

In cases where projects producing components and materials for housing using commercial loans have been completed and put into production, the Development Support Fund will implement post-investment support policies for enterprises.

3. The Ministry of Finance, the Development Support Fund, and the Social Policy Bank will guide specific procedures for localities to implement.

Article 3. For Projects Constructing Embankments for Existing Residential Areas:

1. Projects constructing embankments for existing residential areas under the program to build residential clusters and housing that comply with local and regional water resource planning and flood control planning can use up to 80% of the central budget funds allocated to localities according to Decision No. 216/QĐ-TTg dated March 25, 2002 of the Prime Minister; the remaining funds must be arranged from local budgets and contributions from households benefiting from the project.

2. Households permanently residing in the locality who currently live scattered and now move into projects constructing embankments for existing residential areas can purchase land and housing on installment according to the mechanisms and policies stipulated in Article 1 of Decision No. 105/2002/QĐ-TTg dated August 2, 2002 of the Prime Minister.

Article 4. Enterprises (regardless of enterprise type) investing in factories producing components and materials for housing to implement the policy of selling housing on installment to households, if they submit applications and ensure housing standards and quality (area of 32 square meters, reinforced concrete frame, brick walls, metal roof, septic tank) with a cost not exceeding 7 million VND per unit and are confirmed by the provincial-level People's Committee (where the factory is located), will enjoy preferential policies as prescribed in Decision No. 128/2002/QĐ-TTg dated September 30, 2002 of the Prime Minister.²- Direct the immediate integration and allocation of funds from various programs and targets, particularly the Rural Clean Water and Environmental Sanitation Program and Rural Roads Program, for residential clusters and lines.

Article 5. Implementation

1. Provincial People's Committees shall be responsible for:

- Direct project investors to have specific plans to ensure timely completion (raising the ground level, constructing technical infrastructure, housing) to arrange residents to live in clusters, lines, and embankments according to the program's goals and plans, while being responsible for guiding investors to complete loan repayment procedures according to regulations for lending institutions.

- Direct the project investors to have specific plans to ensure completion according to schedule (foundation leveling, construction of technical infrastructure, housing) for resettling the population into clusters, lines, and dike enclosures in accordance with the objectives and plans set forth in the program, and at the same time be responsible for directing the project investors to complete the procedures for repaying loans in accordance with regulations to the lending agencies.

- Approve the list of households eligible to purchase houses on installment as prescribed; promptly determine housing requirements, quantity, types, installation locations, and place specific orders with production enterprises; at the same time, direct the establishment of specialized teams responsible for transporting and assembling houses sold on installment to residents.

- Approve the list of enterprises producing components and materials for housing as stipulated in Article 4 of this Decision.

2. The Ministry of Agriculture and Rural Development, the Ministry of Education and Training, the Ministry of Health, and other relevant ministries and sectors shall cooperate closely with provincial People's Committees to consider and prioritize funding for the Clean Water and Environmental Sanitation Program in rural areas; the School Construction and Upgrade Program; the Health Program, and other programs to enable localities to complete infrastructure within residential clusters and lines.

3. The Ministry of Finance, the Development Support Fund, and the Social Policy Bank shall be responsible for closely coordinating to ensure sufficient funding as prescribed for the program; simultaneously, provide guidance and resolve necessary procedures as stipulated in this Decision to expedite the implementation progress of the Residential Cluster and Housing Construction Program in flood-prone areas of the Mekong Delta.

4. The Ministry of Construction shall guide localities on investing in essential infrastructure within residential clusters; technical specifications for constructing embankments around existing residential areas; lead and coordinate with relevant ministries and sectors to guide, urge, and inspect localities to ensure timely and effective completion of the program, and regularly report to the Prime Minister.

Article 6. This Decision takes effect fifteen days from the date of publication in the Official Gazette.

Article 7. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, and Chairpersons of People's Committees of An Giang, Dong Thap, Long An, Kien Giang, Hau Giang, Vinh Long, Tien Giang provinces, and Can Tho city are responsible for implementing this Decision./.