Joint Circular No. 80/2007/TTLT-BTC-BNN guiding the management and use of state budget funds for the National Target Program on Rural Clean Water and Environmental Sanitation from 2006 to 2010.

JOINT CIRCULAR

Regarding guidance on the management and use of state budget funds forgrant to

the National Target Program on Clean Water Supply and Environmental Sanitation in Rural Areas

for the period 2006-2010

________________________________

Pursuant to Decree No. 60/2003/NĐ-CP dated June 10, 2006 of the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decision No. 104/2000/QĐ-TTg dated August 25, 2000 of the Prime Minister approving the National Strategy on Clean Water Supply and Environmental Sanitation in Rural Areas until 2020;

Pursuant to Decision No. 277/2006/QĐ-TTg dated December 11, 2006 of the Prime Minister approving the National Target Program on Clean Water Supply and Environmental Sanitation in Rural Areas for the period 2006-2010;

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. This Circular guides the management and use of state budget funds for the National Target Program on Clean Water Supply and Environmental Sanitation in Rural Areas (hereinafter referred to as the Program) for the period 2006-2010 as approved by Decision No. 277/2006/QĐ-TTg dated December 11, 2006 of

2. The sources of capital for implementing the Program include: annual state budget funds (central budget, local budget, and ODA funds), contributions from people in beneficiary areas, and other lawful sources of funding;

Provincial People's Committees (hereinafter referred to as the Provincial People's Committee) shall allocate local budget funds annually, together with additional targeted funds from the central budget (including ODA funds) for the Program, integrating these funds with other sources available in their respective regions to effectively implement the Program's objectives.

3. Principles for investing in the Program on Clean Water Supply and Environmental Sanitation in Rural Areas:

- Rural areas throughout the country; priority will be given to remote areas, ethnic minority areas, coastal areas, areas frequently affected by drought, areas with water shortages, and areas with polluted water sources.

- The Program supports poor households, policy families, ethnic minority areas, and particularly difficult areas regarding clean water supply and environmental sanitation in rural areas.

- The allocation of funds for implementing the Program shall be based on the state budget capacity and other mobilized resources, according to projects approved by competent authorities and following the principle that both the state and the people participate.

- Ministries, sectors, and all levels of People's Committees when deciding to invest in new construction or upgrading public works must include water supply facilities and hygienic toilets; state budget funds under the Program will not support investments in such facilities.

4. Units responsible for using Program funds must use them for their intended purposes and in accordance with regulations; they are subject to inspection and supervision by competent authorities; at the end of the year or upon completion of the project, they must settle accounts for the funds used in accordance with current regulations.

II. SPECIFIC PROVISIONS

1. Contents and levels of expenditure of the Program on Clean Water Supply and Environmental Sanitation in Rural Areas:

1.1 Expenditure from operating funds:

a) Items of expenditure:

- Social mobilization and communication expenses, including: broadcasting news on mass media such as: Central and local radio and television stations; newspapers and other means of communication; printing and distributing specialized technical materials, leaflets, posters, films; other expenses (if any).

- Training expenses: Costs of textbooks for training courses; payment for lecturers teaching theoretical subjects according to prescribed regulations; purchase of practical equipment and materials (if any); management costs of training courses: drinking water, rental of conference halls, transportation expenses for lecturers and course organizers; support for food, accommodation, and travel expenses for trainees during training according to current regulations.

- Expenses for applying scientific and technological advancements to the Program (if any): Based on successful research results about solutions and technologies related to clean water supply and environmental sanitation in rural areas, the Program implements technological advancements through specific models suitable for the economic capabilities of the people and the conditions of each region.

- Expenses for monitoring and evaluating the Program on Clean Water Supply and Environmental Sanitation in Rural Areas;

- Expenses for supporting the construction of hygienic toilet models;

- Expenses for supporting the construction of hygienic toilets for rural health stations, schools (kindergartens, primary schools, secondary schools, high schools), rural markets without hygienic toilets, and polluted environments in particularly difficult ethnic minority and mountainous areas, coastal and island areas, border communes according to the provisions of the Prime Minister; The level of investment support from the state budget shall be implemented in accordance with Clause (1) Point b Item 1.2 Section II of this Circular.

- Expenses for supporting pilot projects for livestock waste treatment;

- Expenses for operating and maintaining centralized water supply facilities according to technical standards: For facilities that have not yet collected sufficient fees, the Provincial People's Committee decides to provide support but not exceeding three years after the facility is completed and put into operation;

- Office expenses, translation services, driver expenses serving foreign experts advising the Program of the Program Office and relevant ministries and provinces with foreign experts advising the program;

- Unexpected expenses as decided by the competent authority.

b) Level of expenditure: Expenditures of the Program on Clean Water Supply and Environmental Sanitation in Rural Areas are based on current expenditure regulations; This Circular guides some specific levels of expenditure as follows:

(1) Expenses for supporting the construction of hygienic toilet models:

- The maximum support from the state budget for one commune to implement a model is 200 million VND;

- Specific contents of expenditure for one model include:

+ Costs for selecting construction sites, interviews, data collection;

+ Technical guidance staff costs: For contracted staff, the maximum is 2.5 times the minimum wage/month (22 days) for direct model guidance days; for civil servants and state employees, travel allowances are paid according to current regulations;

+ Social mobilization and technical guidance costs for the community;

+ Project inspection and acceptance costs;

+ Support costs for part of the materials (steel, cement, bricks, sand...) provided to people participating in the model, this cost constitutes at least 80% of the total cost of the model for one commune.

The level of support for each household in a specific model is as follows: For households classified as poor, those in particularly difficult communes in ethnic minority and mountainous areas, coastal areas, and border communes as defined by the Prime Minister: The State budget will provide support not exceeding 75% of the total approved project estimate, but capped at VND 500,000 per household; for households in other regions, the maximum support is VND 300,000 per household.

The selection of households and the level of support for each household shall be decided by the Provincial People's Committee or delegated to lower-level committees based on the target group and priority order, but not exceeding the total support amount for one commune.

(2) Expenditure for supporting the construction of models for livestock waste treatment:

- The level of State budget support for one commune to implement the model shall not exceed VND 200 million.

- Content of expenditure for the model: Similar to the model of hygienic toilets as specified in point (1) above.

The level of State budget support for farmer households participating in the model is as follows:

+ For pigsties accommodating up to 10 animals: The maximum level of State budget support is VND 400,000 per household.

+ For pigsties accommodating more than 10 animals: The maximum level of State budget support is VND 600,000 per household.

In cases where biogas installation is implemented, an additional support of VND 200,000 per household will be provided.

For households classified as poor, those in particularly difficult communes in ethnic minority and mountainous areas, coastal areas, and border communes as defined by the Prime Minister, an additional 20% support will be provided compared to the aforementioned support levels.

If a commune implements a combined model including hygienic toilet facilities and livestock waste treatment, the maximum level of State budget support for the combined model shall not exceed VND 200 million.

The selection of households eligible for support and the level of support for each household shall be decided by the Provincial People's Committee or authorized agencies based on the principle and priority order. The maximum level of support shall not exceed the total support amount for one commune.

1.2 Expenditure from investment development funds:

a) Items of expenditure:

- Construction of national planning for clean water supply and rural environmental sanitation, ecological zones, provinces, and districts; according to projects and investment reports approved by competent authorities.

- Support for the construction of hygienic toilet facilities, including those for schools (kindergartens, primary schools, secondary schools, high schools), health stations, markets, public facilities in rural areas, and communal offices.

- Support for the construction of clean water supply facilities, including those for schools (kindergartens, primary schools, secondary schools, high schools, vocational schools in rural areas), health stations, markets, public facilities in rural areas, border guard posts, and border communities; and communal offices.

- Support for the construction of models for handling craft village waste;

- Application of scientific and technological progress in the program: Based on successful research results about solutions and technologies for clean water supply and rural environmental sanitation that have been piloted through effective models, the program aims to develop these models in other regions and areas.

b) Specific expenditure levels:

(1) Hygienic toilet facilities:

- For household hygienic toilet facilities: The ratio and level of support shall be implemented according to the provisions in item (1) of point b, Clause 1.1, Section II.

- For hygienic toilet facilities of health stations, schools (kindergartens, primary schools, secondary schools, high schools), rural markets, the State budget will provide support not exceeding 75% of the total approved project estimate; for units without revenue sources, the Provincial People's Committee will consider and decide on the appropriate level of investment from the State budget.

(2) Clean water supply facilities:

- Centralized water supply facilities: The State budget will support a portion of steel, cement, bricks, sand, and equipment for the upstream section, water treatment plant, and main pipeline. The specific level of support is as follows:

+ For centralized water supply facilities: The State budget will support:

* Not exceeding 45% of the total approved project estimate for plains, towns, urban areas, and coastal regions;

* Not exceeding 90% of the total approved project estimate for particularly difficult communes in ethnic minority and mountainous areas, coastal areas, and border communes as defined by the Prime Minister; in cases where the Prime Minister has decided on State budget investment for water supply projects, the funding source and investment level will be carried out according to the Prime Minister's Decisions;

* Not exceeding 60% of the total approved project estimate for other rural areas;

* For clean water supply facilities of health stations, schools in rural areas (kindergartens, primary schools, secondary schools, high schools, vocational schools in rural areas), rural markets, the State budget will provide support not exceeding 75% of the total approved project estimate; for units without revenue sources, the Provincial People's Committee will consider and decide on the appropriate level of investment from the State budget.

+ For gravity-fed centralized water supply facilities (only implemented in highland areas): The State budget will support not exceeding 90% of the total approved project estimate.

Based on the above support levels, relevant ministries, sectors, and provincial people's committees shall approve support levels for inter-village (inter-ward, inter-hamlet) projects, communes, and implement projects in accordance with the annual allocated budget capacity.

- Dispersed water supply works: The State budget supports part of materials such as pipes, hand pumps, cement, rainwater collection channels for households in poverty; social policy families; households in particularly difficult communes of ethnic minority and mountainous areas, coastal and island areas, border communes according to the provisions of the Prime Minister; in cases where the Prime Minister has decided that the State budget will support investment in dispersed water supply works, the sources of funding and levels of investment support shall be implemented in accordance with decisions of the Prime Minister.

- The specific levels of support are as follows:

+ Small diameter drilled wells: The State budget supports up to 600,000 VND per household.

+ Dug wells: The State budget supports up to 400,000 VND per household.

+ Rainwater storage tanks (4 cubic meters): The State budget supports up to 600,000 VND per household; Rainwater containers (2 cubic meters) the State budget supports up to 400,000 VND per household (for water-scarce areas).

For households of mothers awarded the title of Heroic Mother Vietnam,烈士母亲，烈士家庭，以及为革命作出贡献的家庭，国家预算将全额支持经有权机关批准的工程价值；对于有残疾成员且确实困难的家庭，由省级人民政府决定适当的支持。

(3) Funding for the construction of models for waste treatment in craft villages: The State budget supports part of materials such as cement, bricks, sand for clusters of waste treatment facilities or main channels, equipment. The level of support is specifically: The State budget supports not more than 60% of the total project budget approved by the competent authority.

Based on the above levels of support, relevant ministries, sectors, provincial people's committees approve the levels of support for inter-village projects (inter-commune, inter-ward), communes to implement projects in line with their annual allocated funds.

1.3 For water supply and rural environmental sanitation works under foreign-funded projects with specific contents and addresses, the sources of funding, items of expenditure, and levels of expenditure shall be carried out in accordance with the approved project.

2. Budget preparation, implementation, and settlement:

a) The preparation, implementation, and settlement of state budget funds for the Rural Water Supply and Sanitation Program shall be carried out in accordance with the provisions of the State Budget Law and guiding documents.

The program budget for national target programs on rural water supply and sanitation is reflected as follows:

- Water supply tasks: Type 21, Clause 03 code source 0004 01;

- Rural environmental sanitation: Type 21, corresponding clause code source 0004 02;

b) Supplementary budget funds from the central government to local budgets for implementing the Rural Water Supply and Sanitation Program shall be implemented in accordance with Circular No. 86/2006/TT-BTC dated September 18, 2006, issued by the Ministry of Finance, guiding the management of supplementary budget funds from the central government to local budgets.

III. IMPLEMENTATION:

1. The Ministry of Agriculture and Rural Development:

- Prepare plans and financial needs for the annual implementation of the Rural Water Supply and Sanitation Program based on proposals from relevant ministries, sectors, mass organizations, and provinces, sent to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and reporting to the competent authority for consideration and decision; take the lead in providing plans and budgets for the year and program activities to donors according to signed agreements;

- Take the lead in coordinating with the Ministry of Health, the Ministry of Planning and Investment, the Ministry of Finance, and development partners (Australian Agency for International Development, Danish Ministry of Foreign Affairs, Dutch Ministry of Development Cooperation) to evaluate the implementation of the Program; consolidate and report to the Prime Minister, and send reports to the Ministry of Planning and Investment and the Ministry of Finance; provide implementation reports of the Program to donors according to signed agreements;

- Implement audit work as required by donors.

2. Provincial People's Committees directly under the Central Government:

- Organize effective implementation of the Program's content at the local level in accordance with guidelines from the Ministry of Agriculture and Rural Development, relevant ministries, and sectors, and according to approved local plans;

- Integrate funds from other Programs and projects within the locality to effectively implement the Program; decide on investment projects ensuring compliance with the project list and tasks issued with Decision No. 277/2006/QĐ-TTg; allocate sufficient funds from the local budget as stipulated;

- Mobilize resources (community contributions and other lawful capital sources), direct units to urge residents in beneficiary areas to fulfill their commitments for investment in building clean water supply and rural environmental sanitation works; direct and organize the preparation, review, and approval of projects under the Program in accordance with regulations;

- Coordinate with the Ministry of Agriculture and Rural Development to report to donors according to signed agreements.

3. The Ministry of Planning and Investment, the Ministry of Finance shall base on the content of the Program, and in accordance with proposals from the Ministry of Agriculture and Rural Development, relevant ministries, sectors, and localities, balance and allocate annual plan funds in accordance with the State Budget Law to implement the Program.

4. Ministries, sectors, and central agencies participating in the Program shall be responsible for inspecting subordinate units' full compliance with financial management regulations and regularly (quarterly, annually) report to the Ministry of Agriculture and Rural Development (Program Management Board), the Ministry of Planning and Investment, and the Ministry of Finance on progress in implementing tasks and consolidating final accounts of Program implementation expenditures as prescribed.

5. This Circular takes effect 15 days after its publication in the Official Gazette and replaces Joint Circular No. 66/2003/TTLT/BTC-NN&PTNT dated July 3, 2003, issued by the Ministry of Finance and the Ministry of Agriculture and Rural Development, guiding the management, allocation, and settlement of funds for the National Rural Water Supply and Sanitation Program.

During implementation, if there are difficulties, units are requested to reflect them to the Joint Ministries for study and appropriate amendments.