Decision No. 78/2014/QD-TTg On the organization and operation of the Vietnam Environment Protection Fund

 Pursuant to …;

Organization and Operation of the Vietnam Environment Protection Fund

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

Pursuant to the Environmental Protection Law on June 23, 2014;

Pursuant to the Law on Biodiversity dated November 13, 2008;

Pursuant to Decree No. 21/2013/NĐ-CP dated March 4, 2013, promulgated by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Natural Resources and Environment;

At the proposal of the Minister of Natural Resources and Environment,

The Prime Minister issues this Decision on the organization and operation of the Vietnam Environment Protection Fund,

Article 1. Scope of Regulation

This Decision stipulates the organization and operation of the Vietnam Environment Protection Fund (hereinafter referred to as the Fund), including: position and functions, principles of operation, tasks and powers, management machinery, sources of operating capital, and the responsibilities of relevant ministries and sectors regarding the organization and operation of the Fund.

1. Inland waterway port inspection service is the agency implementing specialized state management functions in inland waterway transport at ports, inland waterway wharfs (hereinafter referred to as ports, wharfs), anchorage areas; on channels and routes when assigned by the Minister of Transport to ensure compliance with laws on inland waterway traffic order and safety and environmental protection.

1. The Vietnam Environment Protection Fund is the National Environmental Protection Fund, a state financial organization under the Ministry of Natural Resources and Environment; it has legal personality, registered capital, seal, and separate balance sheets, and is allowed to open accounts at the State Treasury and credit organizations in accordance with the law. The headquarters of the Fund is located in Hanoi City.

2. The Vietnam Environment Protection Fund has the function of providing preferential interest loans, sponsoring, and subsidizing interest rates for programs, projects, activities, and tasks related to environmental protection and climate change adaptation that are not included in the national budget throughout the country.

3. The English name of the Fund is Vietnam Environment Protection Fund, abbreviated as VEPF.

Article 3. Principles of Operation

1. The Vietnam Environment Protection Fund operates without profit-making objectives but must preserve the registered capital and cover its own management costs, be exempt from taxes and other payments to the state budget for activities in the field of environmental protection according to tax laws and state budget laws.

2. The Fund is subject to inspection, audit, and financial supervision of its activities by state financial management agencies and the State Audit Office.

3. The Fund operates openly, transparently, and impartially.

Article 4. Tasks of the Fund

1. To receive, manage, and utilize various sources of funds from the state budget, sponsorships, contributions, and entrusted funds from domestic and foreign organizations and individuals to financially support environmental protection and climate change adaptation activities nationwide.

2. To provide preferential interest loans for environmental protection projects nationwide.

3. To subsidize interest rates for environmental protection projects borrowing from credit organizations in accordance with the law.

4. To sponsor and co-sponsor environmental protection activities: pollution control and remediation, response and recovery from environmental accidents and natural disasters, dissemination and promotion of resource and environmental management and exploitation, implementation of programs, projects, plans, and tasks as decided by the Prime Minister; awarding environmental prizes and honors to exemplary organizations and individuals in environmental protection; implementing environmental protection projects and tasks as specified in the Fund's Charter.

5. To accept environmental restoration guarantees from organizations and individuals permitted to extract minerals.

6. To accept import waste guarantee deposits from organizations and individuals involved in importing waste.

7. To implement certain financial mechanisms and policies for Clean Development Mechanism (CDM) investment projects, including:

a) To monitor, manage, and collect fees for certified emission reduction certificates (CERs) issued by the CDM Executive Board to CDM projects implemented in Vietnam;

b) To fund activities to disseminate and promote awareness about CDM investment projects; review and approve CDM project documentation; manage and oversee CDM projects;

c) Subsidizing products from CDM projects.

8. To support electricity prices for grid-connected wind power projects according to the Prime Minister's Decision and current laws.

9. To provide financial support for climate change adaptation activities in accordance with the law.

10. To assess and approve levels, times, and forms of financial support for environmental protection projects and tasks using Fund support according to the Fund's Charter.

11. To submit to the Minister of Natural Resources and Environment for consideration and decision on new support contents and forms arising during operations.

12. To carry out programs, projects, and tasks assigned by the Prime Minister and the Minister of Natural Resources and Environment.

Article 5. Powers and Duties

1. To organize administrative bodies and business units in accordance with the Fund's Charter and assigned goals and tasks.

2. To periodically and randomly inspect organizations utilizing Fund resources in implementing environmental protection and climate change activities, projects, and tasks. The Fund has the right to withdraw loaned funds, suspend sponsorship or interest rate subsidies for borrowers who breach agreements with the Fund or violate state regulations; to initiate legal proceedings against violators according to the law.

3. To use idle Fund capital to deposit in commercial banks for the purpose of preserving and developing Fund capital while ensuring safety.

4. To implement and receive technical assistance activities from domestic and foreign organizations and individuals to enhance the Fund's capacity.

5. To refuse requests from organizations or individuals for Fund information if such requests contravene the law and the Fund's Charter.

6. To directly engage with domestic and foreign organizations and individuals to solicit, attract, and receive sponsorships or additional funding for the Fund in accordance with the law.

7. To send Fund staff abroad for work, study, observation, and survey missions in accordance with the law.

Article 6. Organizational Structure, Management and Operation System

The organizational structure, management and operation system of the Fund includes the Management Board, Supervisory Board, and Business Operation Department.

1. The Management Board of the Fund consists of the Chairman and members.

a) The Chairman of the Management Board of the Fund is a Deputy Minister of the Ministry of Natural Resources and Environment;

b) Members include the Director of the Fund and leaders at the department level from the Ministries and agencies: Natural Resources and Environment, Finance, Planning and Investment, and the State Bank of Vietnam;

c) Based on the proposal of the Ministries and agencies: Finance, Planning and Investment, State Bank of Vietnam, Natural Resources and Environment, the Minister of Natural Resources and Environment shall consider and decide the list of members of the Management Board of the Fund.

The Director of the Fund is a member working under a full-time regime of the Management Board; other members of the Management Board work under a part-time regime and enjoy benefits according to current regulations;

d) Annually, the Management Board of the Fund stipulates preferential mechanisms, scope of preferences, preferential interest rates, support for environmental protection products and projects;

đ) The tasks, powers, and working regimes of the Management Board of the Fund are implemented according to the provisions of the Charter on organization and operation of the Fund.

2. The Supervisory Board consists of the Head of the Supervisory Board and some members.

The Head of the Supervisory Board and the Supervisors are appointed and relieved of duty by the Minister of Natural Resources and Environment based on the proposal of the Chairman of the Management Board. The number of members of the Supervisory Board does not exceed five people.

The Supervisory Board operates under a full-time regime.

3. The Business Operation Department of the Fund includes: the Director, Deputy Directors, Chief Accountant, and various business departments, centers, branches, and Representative Office in the Southern region and Central region.

a) The Director is the legal representative of the Fund, appointed or relieved of duty by the Minister of Natural Resources and Environment based on the proposal of the Chairman of the Management Board;

b) Deputy Directors and Chief Accountants are proposed by the Director of the Fund, reviewed by the Chairman of the Management Board, and submitted to the Minister of Natural Resources and Environment for appointment or relief of duty;

c) The organizational structure, functions, and tasks of the business departments, centers, branches, and Representative Office of the Business Operation Department of the Fund are defined by the Director of the Fund after obtaining approval from the Chairman of the Management Board;

d) The Business Operation Department of the Fund works under a full-time regime.

Employees working at the Fund enjoy salary, bonus, welfare, and other benefits according to regulations applicable to a limited liability company with state ownership.

Article 7. Capital of the Fund

1. Increase the registered capital of the Fund from 500 (five hundred) billion to 1,000 (one thousand) billion VND over three years (2015-2017); by 2017, it will be fully funded with 1,000 (one thousand) billion VND.

The increase in the registered capital of the Fund is decided by the Prime Minister based on the proposal of the Ministry of Natural Resources and Environment after reaching consensus with the Ministry of Finance.

2. Annual supplementary capital from the following sources:

a) The state budget allocates funds for environmental public services to cover the costs of financing environmental protection projects and tasks completed annually and to supplement the operating capital of the Fund.

Annually, the Ministry of Natural Resources and Environment compiles the demand for using funds from the state budget for environmental public services of the Fund and submits it to the Ministry of Finance for consideration and decision;

b) Compensation payments for environmental damage and biodiversity losses collected into the state budget;

c) Fees from the sale and transfer of certified emission reduction certificates (CERs) obtained from Clean Development Mechanism projects implemented in Vietnam;

d) Donations, contributions, voluntary donations, entrusted investments from organizations and individuals both domestically and internationally dedicated to environmental protection and climate change response.

đ) Other legitimate sources of capital as prescribed by law;

Article 8. Responsibilities of Relevant Ministries and Agencies

1. The Ministry of Natural Resources and Environment is the state management agency for the Fund's activities and shall be responsible for:

a) Issuing the Charter on the organization and operation of the Fund in accordance with this Decision and current laws;

b) Deciding on the establishment of the Management Board of the Fund, appointing and dismissing leadership personnel of the Fund within its authority;

c) Directing and guiding the Fund to cooperate with the Global Environment Facility (GEF) and international organizations in providing financial support for environmental protection and climate change response activities;

d) Taking the lead in implementing financial management compliance checks; approving the annual financial settlement report of the Fund;

đ) Serving as the focal point for resolving common issues and inter-ministerial issues of the Fund before submitting them to the Prime Minister for decision and approval;

2. The Ministry of Finance shall be responsible for guiding the implementation of financial management regulations for the Vietnam Environmental Protection Fund.

3. The Ministry of Planning and Investment shall be responsible for guiding the Fund in raising, managing, and implementing grants, ODA, and preferential loans from donors and international organizations in accordance with Vietnamese Government regulations and donor requirements.

4. Relevant ministries and agencies shall perform their functions and tasks within their assigned authorities.

Article 9. Implementation Provisions

1. This Decision takes effect from February 20, 2015. It replaces Decision No. 02/2014/QĐ-TTg dated January 13, 2014 of the Prime Minister regarding the organization and operation of the Vietnam Environmental Protection Fund.

2. Ministers of ministries, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial People's Committees under central cities, Chairpersons of the Management Board, and Directors of the Vietnam Environmental Protection Fund are responsible for implementing this Decision./.