JOINT CIRCULAR No. 80/2007/TTLT/BTC-BNN GUIDING THE MANAGEMENT AND USE OF STATE BUDGET FUNDS FOR THE NATIONAL CLEAN WATER AND ENVIRONMENTAL SANITATION PROGRAM IN RURAL AREAS FOR THE 2006-2010 PERIOD

JOINT CIRCULAR

Guidelines on the management and use of state budget funds for the National Target Program to address environmental pollution and improve the environment for the period 2012-2015

for the National Target Program on Rural Clean Water and Environmental Sanitation

during the period 2006-2010

Pursuant to Decree No. 60/2003/NĐ-CP dated June 10, 2003 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 Rural Clean Water and Environmental Sanitation during the period 2006-2010;

Chapter I. GENERAL PROVISIONS

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

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

Provincial People's Committees (hereinafter referred to as 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 within their jurisdiction to effectively achieve the Program's objectives.

3. Principles of investment in the Program on Rural Clean Water and Environmental Sanitation:

- All rural areas throughout the country; priority will be given to remote, mountainous, ethnic minority regions, coastal areas, and regions frequently affected by drought and water scarcity, as well as regions with polluted water sources.

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

- The allocation of funds for implementing the Program is based on the state budget capacity and other mobilized resources, according to approved projects 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 construct new or upgrade public works must include water supply facilities and hygienic latrines; state budget funds under the Program on Rural Clean Water and Environmental Sanitation will not support such investments.

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 according to current regulations.

Chapter II. SPECIFIC PROVISIONS

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

1.1. Expenditure from operating funds:

a) Items of expenditure:

- Social mobilization and communication expenses, including: news dissemination through mass media such as central and local radio and television stations, newspapers, and other information means; printing and distributing specialized technical materials, leaflets, posters, films; other expenses (if any);

- Training expenses: costs for textbooks for classes; payment for lecturers teaching theory according to prescribed regulations; purchase of practical equipment and materials (if any); management expenses for classes: drinking water, rental of conference halls, transportation expenses for lecturers and organizing staff; support for food, accommodation, and travel expenses for trainees during training periods 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 and environmental sanitation in rural areas, the program implements advanced technology applications 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 Rural Clean Water and Environmental Sanitation;

- Expenses for building hygienic latrine models;

- Expenses for building hygienic latrines for rural health stations, schools (kindergartens, primary schools, secondary schools, high schools), and rural markets without hygienic latrines, where the environment is severely polluted in particularly difficult ethnic minority and mountainous regions, coastal lowlands, and islands, and border communes according to the Prime Minister's regulations; The level of state budget investment support is implemented according to paragraph (1) point b clause 1.2 Section II of this Circular;

- Expenses for pilot waste treatment models for livestock farming;

- Expenses for operation and maintenance of centralized water supply facilities according to technical standards: For facilities that have not yet recovered costs, the Provincial People's Committee decides to provide support but not exceeding three years after the facility is put into use;

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

- Unexpected expenses decided by the competent authority to approve;

b) Level of expenditure: Expenditure of the Program on Rural Clean Water and Environmental Sanitation is based on current expenditure regulations; This Circular guides certain specific levels of expenditure as follows:

(1) Expenses for supporting the construction of hygienic latrine 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 project sites, interviews, and data processing;

+ Technical guidance personnel costs: For contracted personnel, 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 expenses for the community;

+ Project inspection and acceptance expenses;

+ Support for part of the materials (steel, cement, bricks, sand, etc.) for people participating in the model, this expense 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 islands, and border communes as defined by the Prime Minister: The State budget will provide support not exceeding 75% of the total project estimate approved by the competent authority, but not more than 500,000 VND per household; for households in other regions, the maximum support is 300,000 VND per household.

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

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

- The maximum level of State budget support for one commune to implement the model is 200 million VND;

- Content of expenditure for the model: Similar to the model of hygienic latrines 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 400,000 VND per household;

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

In cases where biogas installation is carried out, an additional support of 200,000 VND per household is provided.

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

If a commune implements a combined model including hygienic latrines and livestock waste treatment, the maximum level of State budget support for the combined model is 200 million VND.

The selection of households to be supported and the level of support for each household shall be decided by the People's Committee of the province or authorized agencies based on the principle and priority order. The maximum level of support shall not exceed the total support level 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 the competent authority;

- Support for the construction of hygienic latrines, including school latrines (kindergartens, primary schools, secondary schools, high schools), health stations, markets, public facilities in rural areas, and commune-level People's Committees' offices;

- Support for the construction of clean water supply facilities, including school water supply facilities (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 commune-level People's Committees' 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 latrines:

- For household hygienic latrines: The ratio and level of support are implemented according to the provisions in item (1) of point b, Clause 1.1, Section II;

- For hygienic latrines 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 project estimate approved by the competent authority; 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 part of the 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 project estimate approved by the competent authority for plains, towns, townships, and coastal areas;

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

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

* For 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 support not exceeding 75% of the total project estimate approved by the competent authority; 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 project estimate approved by the competent authority.

Based on the above support levels, relevant ministries, sectors, and provincial People's Committees will approve the support levels for inter-village (inter-ward, inter-precinct) projects, communes, and implement projects in accordance with the annual allocated budget.

- Decentralized water supply facilities: The State budget will support part of the materials such as pipes, hand pumps, cement, rainwater collection channels, depending on the type of water supply for poor households, social policy households, households in particularly difficult communes in ethnic minority and mountainous areas, coastal areas and islands, and border communes as defined by the Prime Minister; in cases where the Prime Minister has decided on State budget investment in decentralized water supply facilities, the funding source and investment level will be implemented according to the Prime Minister's Decisions.

- The specific level of support is as follows:

+ Small diameter borehole wells: The State budget supports up to 600,000 VND/household;

+ Dug wells: The State budget supports up to 400,000 VND/household;

+ Rainwater storage tank (4m³): The State budget supports up to 600,000 VND/household; Rainwater storage container (2m³) the State budget supports up to 400,000 VND/household (for areas with water shortages);

For households of mothers honored with the title of Heroic Mother Vietnam, families of martyrs, and families with meritorious service to the revolution, the State budget provides full support for the value of the project approved by the competent authority; for households with disabled members who are truly in difficulty, the provincial People's Committee shall consider and decide on appropriate support;

(3) Funding for building models to treat village craft waste: The State budget supports up to 60% of the total estimated cost of the project for materials such as cement, bricks, sand for the cluster of treatment works or main drainage channels, and equipment. The specific level of support: The State budget supports not more than 60% of the total estimated cost of the project approved by the competent authority;

Based on the above levels of support, ministries, sectors, and provincial People's Committees shall approve funding levels for inter-village (inter-commune, inter-ward) projects, communes, and implement projects in accordance with their annual allocated financial capacity;

1. 3. For rural water supply and environmental sanitation works under foreign-funded projects with specific content and addresses, the source of funds, items of expenditure, and the level of expenditure shall be implemented according to the approved project;

2. Budget preparation, implementation, and settlement:

a) The preparation of the budget estimate, implementation, and settlement of state budget funds allocated to the Rural Water Supply and Environmental Sanitation Program shall be carried out in accordance with the provisions of the State Budget Law and related guiding documents;

The program's national target funding for rural clean water and environmental sanitation shall be reflected as follows:

- Clean water tasks: Type 21, Clause 03, code 0004 01;

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

b) The implementation of the Rural Water Supply and Environmental Sanitation Program, supplemented with targeted funds from the central budget to the local budget, shall be carried out in accordance with Circular No. 86/2006/TT-BTC dated September 18, 2006, issued by the Ministry of Finance, guiding the management of supplementary targeted funds from the central budget to the local budget;

Chapter III. IMPLEMENTATION ORGANIZATION:

1. The Ministry of Agriculture and Rural Development:

- Prepare the annual plan and funding requirements for the Rural Water Supply and Environmental Sanitation Program based on the proposals of ministries, sectors, mass organizations, and provinces, and submit them 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 the program's activities to sponsors 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 assistance agencies (Australian International Development Agency, 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 to sponsors according to signed agreements;

- Implement auditing work as required by sponsors;

2. Provincial People's Committees and centrally governed city People's Committees:

- Organize and direct 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 the approved local plan;

- Integrate resources from other programs and projects in the area to effectively implement the program; decide on investment projects to ensure compliance with the project list and tasks issued together with Decision No. 277/2006/QĐ-TTg; allocate sufficient funds within the responsibility of the local budget as stipulated;

- Mobilize various resources (community contributions and other lawful sources of capital), direct units to urge people in beneficiary areas to contribute as committed for the construction of rural clean water supply and environmental sanitation works; direct and organize the establishment, review, and approval of projects under the program according to regulations;

- Coordinate with the Ministry of Agriculture and Rural Development to report to sponsors according to signed agreements;

3. The Ministry of Planning and Investment and the Ministry of Finance, based on the content of the program, and on the proposal of the Ministry of Agriculture and Rural Development, ministries, sectors, and localities, shall balance and allocate annual plans according to 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' 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 the progress of work implementation and consolidated settlement of program implementation funding usage according to regulations;

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 Clean Water and Environmental Sanitation Program;

During implementation, if there are difficulties, units are requested to reflect them to the Joint Ministry for study and appropriate modification;