Circular No. 81/2010/TT-BTC guides the ordering mechanism in the field of providing public utility information services for coastal areas.

CIRCULAR

Guidelines on the mechanism for ordering services in the field of providing public utility information services in coastal areas

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Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decree No. 31/2005/NĐ-CP dated March 11, 2005 of the Government on production and supply of public goods and services;

Pursuant to Decree No. 75/2008/NĐ-CP dated June 9, 2008 of the Government amending and supplementing certain articles of Decree No. 170/2003/NĐ-CP dated December 25, 2003 of the Government detailing the implementation of certain provisions of the Price Ordinance;

Pursuant to Decision No. 256/2006/QĐ-TTg dated November 9, 2006 of the Prime Minister promulgating the Bidding, Ordering, and Allocation Plan Implementation Regulations for Public Utility Products and Services;

After receiving the unified opinion of the Ministry of Transport in Circular No. 2378/BGTVT-TC dated April 15, 2010, the Ministry of Finance provides guidelines on the mechanism for ordering services in the field of providing public utility information services in coastal areas as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of regulation and applicable subjects:

1. Scope of regulation: This circular guides the mechanism for ordering services in the field of providing public utility information services in coastal areas.

2. Applicable subjects include:

- The Vietnam Maritime Electronics Information Corporation established by the Minister of Transport, which is the entity providing public utility information services in coastal areas.

- The Vietnam Maritime Administration representing the State to place orders for the provision of public utility information services in coastal areas;

Article 2. Telecommunications network infrastructure at sea:

The telecommunications network infrastructure of Vietnam (which includes assets, structures, equipment directly serving the operation of maritime information stations) is invested in by the State and managed and operated by the Vietnam Maritime Electronics Information Corporation, including:

- The system of Coastal Information Stations;

- The Inmarsat Ground Station in Haiphong (LES);

- The Cospas-Sarsat Ground Station (LUT);

Article 3. Public utility information services in coastal areas ordered by the State according to current regulations include:

- Providing maritime distress and safety communication services under GMDSS: Monitoring, processing, and transmitting distress, emergency, and search and rescue communications 24/7;

- Providing maritime safety information under GMDSS;

- Connecting maritime industry information.

Article 4. Pricing of public utility information services in coastal areas:

Based on the economic and technical standards for operating, managing, and maintaining maritime information stations and the pricing plan developed by the Ministry of Transport, the Ministry of Finance sets the price for public utility information services in coastal areas for the State to order the provision of such services from the Vietnam Maritime Electronics Information Corporation.

Procedures for establishing, reviewing, and deciding on the price of public utility information services in coastal areas shall be carried out in accordance with Decree No. 75/2008/NĐ-CP dated June 9, 2008 of the Government amending and supplementing certain articles of Decree No. 170/2003/NĐ-CP dated December 25, 2003 of the Government detailing the implementation of certain provisions of the Price Ordinance.

Article 5. Funding for ordering the provision of public utility information services in coastal areas:

The funding for ordering the provision of public utility information services in coastal areas is guaranteed by the central budget from the allocation of expenditure for economic affairs within the central budget in accordance with the State Budget Law.

Chapter II

FINANCIAL MECHANISM FOR ORDERING SERVICES IN THE FIELD OF PROVIDING PUBLIC UTILITY INFORMATION SERVICES IN COASTAL AREAS

Article 6. Preparation and allocation of state budget estimates for ordering:

1. Establishment of budget projections:

Annually, based on the capacity to provide public utility services and the prices of public utility information services in coastal areas set by the Ministry of Finance, the Vietnam Maritime Electronics Information Corporation prepares a plan for providing public utility information services in coastal areas for the following year and sends it to the Vietnam Maritime Administration as the basis for preparing the budget estimate. The Ministry of Transport compiles this together with the annual state budget preparation process and submits it to the Ministry of Finance for review and consolidation to be submitted to the competent authority for decision.

Article 16. Settlement of State Budget Funds for Support

Based on the annual budget estimate for expenditures on providing public utility information services in coastal areas assigned by the competent authority, the Ministry of Transport implements the steps for allocating the budget estimate in accordance with the State Budget Law.

After receiving the comments of the Ministry of Finance on the budget revenue and expenditure plan, the Ministry of Transport allocates the budget estimate for expenditures on providing public utility information services in coastal areas to the Vietnam Maritime Administration to sign the order contract for providing public utility information services in coastal areas; simultaneously sending it to the Ministry of Finance and the State Treasury where the Vietnam Maritime Administration has its account for coordination in implementation.

If the budget estimate for expenditures on providing public utility information services in coastal areas is allocated and reviewed later than the prescribed time, the Ministry of Transport may temporarily allocate the budget estimate to allow the Vietnam Maritime Administration to have a basis for signing the order contract for providing public utility information services in coastal areas.

Article 7. Signing the order contract for providing public utility information services in coastal areas:

1. Based on the budget estimate for expenditures on ordering public utility information services in coastal areas that has been allocated, the Vietnam Maritime Administration signs the order contract for providing public utility information services in coastal areas with the Vietnam Maritime Electronics Information Corporation according to the price set by the Ministry of Finance in accordance with current regulations.

2. Contents of the order contract.

The order contract must include the following main contents:

- Quantity of public utility information services in coastal areas. - Quality of performance;

- Price of public utility information services in coastal areas;

- Contract value;

- Duration of the contract;

- Advance payment and recovery procedures;

- Acceptance and payment procedures;

- Responsibilities and obligations of the Vietnam Maritime Administration and the Vietnam Maritime Electronics Information Corporation;

- Liability of the parties for breach of contract.

- Other related contents concerning the provision of public utility information services in coastal areas but not contrary to the provisions of the law.

Article 8. Acceptance of completed quantity of public utility information services in coastal areas:

Quarterly, the Vietnam Maritime Administration organizes the acceptance of the quantity and quality of public utility information services in coastal areas provided according to the signed order contract with the Vietnam Maritime Electronics Information Corporation (as detailed in the attached annex) as the basis for settling the ordering expenses in accordance with Clause 2, Article 9 of this circular.

Article 9. Supervision of expenditures by the State Treasury:

Pursuant to the state budget estimate for funding the provision of maritime public service information services assigned, the Vietnam Maritime Administration shall withdraw the budget estimate from the State Treasury to temporarily advance and pay to the Vietnam Marine Electronics Information Corporation according to the service procurement contract; the State Treasury where the Vietnam Maritime Administration conducts transactions shall examine the documents and implement pre-payment control before temporarily advancing and paying according to the service procurement contract.

1. Temporary advance of funds for the procurement of maritime public service information services:

1. 1. After signing the service procurement contract for maritime public service information services, the Vietnam Marine Electronics Information Corporation may be temporarily advanced up to 30% of the value of the signed service procurement contract with the Vietnam Maritime Administration.

1. 2. Documents for temporary advance:

 - The withdrawal request form (temporary advance) of the Vietnam Maritime Administration.

 - The service procurement contract signed between the Vietnam Maritime Administration and the Vietnam Marine Electronics Information Corporation.

 - Decision on the allocation of expenditure budget issued by the Ministry of Transport.

2. Payment of funds for the procurement of maritime public service information services:

2. 1. The Vietnam Maritime Administration is responsible for recovering the temporary advance amount starting from the first payment and must recover the entire temporary advance amount before the final payment of the planning year.

2. 2. Documents for payment:

 - Quantity and quality acceptance report for completed maritime public service information service supply (as attached in this Circular).

- Payment request form (for cases involving temporary advances).

 - The withdrawal request form (actual expenditure) of the Vietnam Maritime Administration.

2. 3. In cases where, by December 31 each year, the quantity of maritime public service information services supplied and accepted according to the service procurement contract has been completed but the settlement documentation procedures have not been finalized, such payments will continue during the adjustment period for final settlement in accordance with current regulations and will be consolidated into the previous fiscal year's settlement.

Article 10. Handling surplus or shortage of funds for the procurement of maritime public service information services.

1. In cases where there is an increase in the quantity of maritime public service information services supplied (due to the ordering agency's requirements), leading to an increase in the amount payable compared to the signed contract, the annual budget estimate for the procurement of maritime public service information services in the following year will be used to address this. When allocating the annual budget estimate for the procurement of maritime public service information services, the Vietnam Maritime Administration will proactively reserve funds to settle the increased quantity supplied in the previous year, and the remaining funds will be allocated to place orders for the current year's tasks.

2. Adjusting the contract value according to Article 14 of the Bidding, Procurement, and Plan Implementation Regulation for Production and Supply of Public Goods and Services issued together with Decision No. 256/2006/QĐ-TTg dated November 9, 2006 of the Prime Minister.

Article 11. Inspection and settlement of the provision of maritime public service information services by the Vietnam Marine Electronics Information Corporation:

Annually, the Vietnam Marine Electronics Information Corporation prepares the Annual Financial Report (which includes the settlement of the implementation of the task of providing maritime public service information services); it organizes for an independent auditing company to audit the Annual Financial Report in accordance with regulations. The annual financial report is sent to the Vietnam Maritime Administration, the Ministry of Transport, and the Ministry of Finance.

The Vietnam Maritime Administration takes the lead in coordinating with relevant units under the Ministry of Transport and the Ministry of Finance to inspect and settle the procurement of public services according to Article 15 of the Bidding, Procurement, and Plan Implementation Regulation for Production and Supply of Public Goods and Services issued together with Decision No. 256/2006/QĐ-TTg dated November 9, 2006 of the Prime Minister.

Expenses that do not comply with enterprise accounting regulations or are improperly charged must be reversed and recovered and submitted to the state budget; anyone who orders improper expenditures must reimburse them and bear legal responsibility.

Article 12. Settlement of the source of funds allocated for the procurement of maritime public service information services:

1. The Vietnam Maritime Administration implements the procurement of maritime public service information services within the scope of the funds allocated by the state budget, in accordance with the purpose and effectively. The Vietnam Maritime Administration is responsible for preparing the settlement report on the funds allocated by the state budget for procurement in accordance with the State Budget Law; it consolidates this into the Vietnam Maritime Administration's settlement report and sends it to the Ministry of Transport.

2. The Ministry of Transport reviews the Vietnam Maritime Administration's settlement report and consolidates it into the Ministry of Transport's settlement report, which is then sent to the Ministry of Finance for review in accordance with the State Budget Law and guiding documents.

Chapter III

RESPONSIBILITIES OF THE VIETNAM MARINE ELECTRONICS INFORMATION CORPORATION

Article 13. The Vietnam Marine Electronics Information Corporation receives state investment in capital, assets, and necessary human resources to continuously and stably provide maritime public service information services. In addition to fulfilling the task of providing public services ordered by the state, the Vietnam Marine Electronics Information Corporation can utilize capital, assets, and other resources to organize business activities in accordance with the law without affecting the assigned public service tasks and is responsible for the effectiveness of the use of state capital and assets.

Article 14. Management and use of funds for the procurement of services:

1. The Vietnam Marine Electronics Information Corporation provides maritime public service information services strictly in accordance with the signed contract and the laws, international agreements, and practices regarding maritime safety information work.

2. The state funding source for ordering the provision of marine public service information services is the revenue from the company's operation of providing such public services, which the Vietnam Maritime Electronics Information Corporation uses to offset costs incurred in fulfilling its mission of providing marine public service information; Accounting for business results from operating public services, declaring and paying taxes in accordance with regulations; Implementing financial management in compliance with current laws applicable to the type of enterprise registered for operation.

Article 15. Management of the state maritime telecommunications network infrastructure:

1. The Vietnam Maritime Electronics Information Corporation is responsible for managing and utilizing the maritime telecommunications network infrastructure mentioned in Article 2 of this Circular in accordance with current regulations on the management and utilization of fixed assets in enterprises.

2. In principle, the state pricing for ordering services shall be calculated to cover all costs according to economic and technical norms issued by competent authorities and current financial expenditure regimes (including full depreciation costs of fixed assets). In cases where the state order price does not fully cover 100% of the depreciation costs of the enterprise due to budget constraints, the non-depreciated assets will be tracked for wear and tear and reduced from sources in accordance with current regulations.

The Vietnam Maritime Electronics Information Corporation is responsible for managing and utilizing the depreciation funds of fixed assets to invest in and replace telecommunications network equipment funded by the state according to a schedule.

Article 16. The Vietnam Maritime Electronics Information Corporation is subject to inspection, audit, and supervision by financial agencies, asset owner representatives, and tax authorities regarding the use of state funding for orders and the company's production and business activities in accordance with current laws.

Chapter IV

ORGANIZATION AND IMPLEMENTATION

Article 17. EFFECTIVE DATE

This Circular takes effect from August 1, 2010. During implementation, if there are any difficulties, they should be reported to the Ministry of Finance by the Ministry of Transport and relevant units for consideration and resolution./.