Joint Circular No. 78/TTLT stipulates and guides the management and allocation of funds for regular maintenance and repair of road bridges.

CIRCULAR

JOINT MINISTRY OF FINANCE - TRANSPORTATION AND POSTAL SERVICES
JOINT CIRCULAR NO. 78/TT-LB DATED DECEMBER 26, 1991 REGULATING
AND GUIDING THE MANAGEMENT SYSTEM, DISTRIBUTION, AND MAINTENANCE FUND FOR ROUTINE MAINTENANCE OF ROADS AND BRIDGES
AND FREQUENT REPAIRS OF ROADS AND BRIDGES

On January 7, 1983, the Joint Ministry of Finance - Transportation issued Circular No. 236/TT-LB "guiding regulations on the management system, distribution, and maintenance fund for major repairs and routine maintenance of roads and bridges," applicable to both major repair works and routine maintenance of roads and bridges. Upon implementation in practical management, it has positively contributed to units managing and repairing roads and bridges; building plans, organizing unified distribution and settlement throughout the country. However, due to the different economic and technical characteristics of major repairs and routine maintenance, applying a single management mechanism has sometimes led to formalistic management affecting road quality and capital utilization efficiency. To address these issues, the Joint Ministry of Finance - Transportation and Postal Services now regulates and guides the management and distribution system specifically for routine maintenance of roads and bridges (SCTX) as follows:

1- Combating counterfeit goods is the responsibility of all ministries, sectors, People's Committees at all levels, political and social organizations, enterprises, business households, and the entire population.

1. Funds for bridge and road repairs are invested from the following sources:

a) Traffic fee revenue

b) Bridge and ferry tolls

c) State budget allocation

The above repair funds are allocated to the following items:

- Major repair costs for bridges and roads

- Management and routine maintenance costs for bridges and roads (SCTX)

- Traffic assurance costs (5% of the total repair fund for roads)

Annually, the allocation of funds for routine maintenance of bridges and roads using traffic tolls, bridge fees, ferry fees, or direct state budget allocations will be agreed upon by financial authorities at the same level with transportation authorities.

The scope of SCTX funds includes: funds ensuring small-scale repair work and regular management tasks for bridges and roads throughout the year to maintain smooth and safe traffic flow, extend the service life of roads, and prevent minor damages to bridges and roads.

2. Road sections (under central road management) or local road segments (under local road management by provincial transportation departments) referred to as units responsible for SCTX are economic public service organizations that operate on a cost-saving basis with incentives. Routine maintenance of bridges and roads must pay various business taxes, income taxes, and capital taxes. Each year, the state budget invests in purchasing equipment and constructing facilities for these units.

3. Annual repair funds for bridges and roads are used for bridge and road repair work consistent with investment classification and administrative levels of road management.

- For national highways, the central government budget covers the expenses.

- For provincial roads managed by local governments, the local government budgets cover the expenses.

SCTX funds are distributed, temporarily allocated, and settled through the National Treasury System.

4. The execution of SCTX work is organized under a lump-sum contract based on comprehensive cost rates per kilometer of road, meter of bridge, ferry landing, and floating bridge for each unit responsible for SCTX according to a one-year plan cycle.

Units responsible for SCTX can apply for monthly funds to implement their SCTX tasks and undergo quarterly and annual inspections and settlements. Based on the results of quarterly inspections and settlements of units, the SCTX unit responsible for the contract will base its final annual inspection and settlement procedures on the given indicators and submit them to the SCTX unit for approval.

The Ministry of Transportation and Postal Services, after consulting with the Ministry of Finance, will provide specific guidelines for the quarterly and annual contract inspection system for this work.

II- ESTABLISHING AND ASSIGNING PLANS FOR MANAGEMENT AND ROUTINE MAINTENANCE FUNDS FOR ROADS AND BRIDGES

1. Establishing routine maintenance expenditure plans.

Annually, road management units base on the technical condition, damage level of bridges and roads, and economic-technical standards, guidance on preparing cost estimates, prices... to establish comprehensive cost rates per kilometer of road, meter of bridge, and river-crossing repair costs for units to send to the Ministry of Transportation and Postal Services for national highway routine maintenance plans or to the People's Committee of provinces/cities for local road routine maintenance plans for review and consolidation to submit to competent authorities for approval.

For routine maintenance funds of centrally-managed road systems, the Ministry of Transportation and Postal Services, after reviewing the needs of grassroots units, consolidates the routine maintenance expenditure plan (along with major repair plans and traffic assurance reserves) and sends it to the Ministry of Finance for inclusion in the budget revenue and expenditure plan for submission to the State for approval. Financial authorities are responsible for promptly notifying the transportation authority providing the plan once the expenditure plan is officially approved.

2. Assigning routine maintenance expenditure plans.

Based on the approved routine maintenance expenditure plans, the Ministry of Transportation and Postal Services (for national highways), Provincial Transportation Departments (for local roads) implement the assignment of routine maintenance expenditure plans to management and routine maintenance units.

Based on the approved comprehensive cost rates for routine maintenance work per kilometer of road (by type), meter of bridge, ferry landing... road management units and Provincial Transportation Departments proceed to sign contracts assigning routine maintenance targets with units responsible for routine maintenance in accordance with assigned indicators. In cases where the total amount of funds assigned for routine maintenance is insufficient compared to the established comprehensive cost rates, road management units and Provincial Transportation Departments will consider adjusting and reducing some non-essential and urgent projects to align with the officially assigned budget indicators for routine maintenance work, serving as the standard for maintaining and managing bridges and roads over the entire planned year.

During the implementation process, if there are changes in state policies on wages or material prices... as prescribed by the State, significantly affecting the approved cost standards, then the Ministry of Transport - Posts and Telecommunications and the Ministry of Finance shall handle the situation based on the general regulations of the State (for national highways), while the provincial Department of Transport and the provincial Department of Finance shall handle the situation for local roads.

In cases where natural disasters such as typhoons and floods, or enemy actions occur on bridges and roads under the management units responsible for regular maintenance, causing damage to transportation infrastructure leading to traffic congestion and safety issues, these management units and maintenance units may use allocated funds or borrow from banks to promptly restore traffic order and safety. At the same time, they must prepare complete documentation regarding the extent of damage and report it to relevant authorities with the appropriate authority to confirm the volume of post-disaster recovery work. The reports should be submitted to the Ministry of Transport - Posts and Telecommunications, the provincial Department of Transport, and the financial department at the same level for consideration and resolution of the post-disaster recovery work to reimburse the expenses incurred by the unit.

III- ISSUANCE OF FUNDS FOR MANAGEMENT AND REGULAR MAINTENANCE OF BRIDGES AND ROADS
PERMANENT ROAD CROSSING

For the central-managed bridge and road system, the Ministry of Finance shall issue funds to the Ministry of Transport and Posts and Telecommunications through the State Treasury Office.

For the locally-managed bridge and road system, the provincial Department of Finance shall issue funds to the provincial Department of Transport through the Provincial State Treasury Office.

1. Basis for financial authorities to issue funds.

- Notification of the regular maintenance budget plan of the Ministry of Transport and Posts and Telecommunications (for national highways) and the provincial Department of Transport (for locally managed roads) consistent with the financial authority's notification of funds.

- Implementation status: Report on the implementation status, quarterly and annual settlement reports.

2. Basis for the State Treasury Office (or provincial State Treasury Office) to issue funds to management units using regular maintenance funds.

- Approved regular maintenance fund plan for the regular maintenance work unit.

- Report on the implementation status of the issued funds.

3. Basis for provincial State Treasury Offices to advance or settle regular maintenance funds for regular maintenance work units.

- Regular maintenance fund plan index assigned by the Ministry or provincial Department of Transport to regular maintenance fund management units.

- Contract between the management unit and the regular maintenance work unit.

- Application for advance or settlement of regular maintenance funds from the entrusting agency to the receiving regular maintenance work unit. Advance funds are provided when preparing for regular maintenance, and settlement occurs upon completion and acceptance of the contract.

During the execution of the regular maintenance fund entrustment contract, the entrusting unit must organize regular or spot inspections if necessary. After each quarter's inspection of bridges, ferry terminals, pontoon bridges, the project owner must prepare a record evaluating the condition and smoothness of the bridges and ferry terminals. At the end of the year, which is also the end of the regular maintenance plan and contract, the project owner must cooperate with the entrusted unit in final acceptance and settlement for each route according to the plan objectives and signed contract.

If, during periodic inspections, the entrusted unit fails to meet the required bridge and ferry terminal condition standards, it will face deductions or be required to make up the shortfall. If not made up, unused funds will be transferred to other better-performing routes or units, and penalties for breach of contract will apply.

These tasks serve as the basis for the entrusting party to establish and submit applications for treasury advances or settlements of regular maintenance funds.

IV- SETTLEMENT REPORTS FOR FUNDS FOR MANAGEMENT AND REGULAR MAINTENANCE OF BRIDGES AND ROADS

1. Responsibility for settlement and approval of settlements.

Units receiving regular maintenance funds are responsible for quarterly and annual settlements to the funding units as stipulated. Funding units must approve settlements for directly receiving units.

Upon receipt of annual settlements from highway management units or provincial Departments of Transport, the Ministry of Transport and Posts and Telecommunications will review and approve settlements for each unit (with participation from the Ministry of Finance). Simultaneously, they will compile the settlements and send them to the Ministry of Finance (Department of Transportation and Construction) for review and submission to the Department of State Budget Management for consolidation of the state budget revenue and expenditure settlements.

2. Content of Settlements.

The content of regular maintenance fund settlements applies the settlement forms of public institutions according to current regulations. Additionally, due to the special nature of regular maintenance work, the settlement content must include the following indicators:

- Total funds received, including other sources such as traffic fees, bridge tolls, ferry pontoon tolls...

- Actual regular maintenance funds spent, analyzing reasons for surplus or shortage.

- Summary of various types of regular maintenance work, reflecting planned and approved indices, actual value executed, and settled amounts.

3. Time for submitting settlement reports.

- Units receiving regular maintenance funds from the Ministry of Transport and Posts and Telecommunications must submit annual settlement reports within 45 days and quarterly settlement reports within 30 days after the end of the year or quarter.

- The Ministry of Transport, after receiving and approving the settlement reports of regular maintenance fund receiving units, must submit consolidated annual settlement reports to the Ministry of Finance within 60 days and quarterly settlement reports within 45 days.

- Provincial Departments of Transport must submit regular maintenance fund settlement reports for local roads to the provincial Department of Finance within 45 days for annual reports and 30 days for quarterly reports.

V- IMPLEMENTATION PROVISIONS

This Circular applies to the management and regular maintenance of bridges and roads, taking effect from January 1, 1992. For the management and issuance of large-scale maintenance funds for bridges and roads, the provisions of Circular No. 236-TT/LB dated December 7, 1983 of the Joint Ministries shall continue to apply. During implementation, all levels, sectors, and bridge and road management units encountering difficulties or unclear issues should promptly reflect them to the two ministries for research and appropriate amendments.