Decision No. 82/2002/QD-TTg On the establishment, organization, and operation of the Vietnam Environment Protection Fund

Pursuant to …;

Regarding the establishment, organization, and operation of the Vietnam Environmental Protection Fund

__________________________

PRIME MINISTER

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

On the basis of the Environmental Protection Law dated December 27, 1993;

Pursuant to the Government Decree No. 175/CP dated October 18, 1994, guiding the implementation of the Law on Environmental Protection;

At the proposal of the Minister of Science and Technology and Environment.

DECISION:

Article 1. The Vietnam Environmental Protection Fund shall be established to mobilize capital from organizations and individuals both within and outside the country; to accept state investment funds aimed at supporting environmental protection programs, projects, activities, and tasks nationwide.

The Vietnam Environmental Protection Fund is a state financial organization under the Ministry of Science and Technology and Environment and is subject to state financial management by the Ministry of Finance.

Article 2. Legal status of the Vietnam Environmental Protection Fund

1. The Vietnam Environmental Protection Fund is a state financial organization performing the function of financial sponsorship in the field of environmental protection.

The Vietnam Environmental Protection Fund has legal personality, registered capital, its own balance sheet, seal, and bank accounts opened at the State Treasury and domestic and foreign banks.

2. Name: Vietnam Environmental Protection Fund. English name for transactions: Vietnam Environment Protection Fund (VEPF).

3. The headquarters of the Vietnam Environmental Protection Fund is located in Hanoi.

The Fund may establish representative offices in provinces and centrally administered cities as decided by the Fund's Management Board.

The Fund may set up overseas transaction offices when necessary in accordance with government regulations.

4. The Fund may co-sponsor financially with sectoral and local environmental funds and other types of funds for environmental protection activities.

Article 3. Activities of the Vietnam Environmental Protection Fund

The Vietnam Environmental Protection Fund operates without profit-making objectives but must ensure the return of the registered capital and cover management costs.

The Minister of Science and Technology and Environment is tasked with issuing the Regulations on the Organization and Operation of the Vietnam Environmental Protection Fund in accordance with this Decision and current state regulations.

Article 4. Tasks of the Vietnam Environmental Protection Fund

1. Mobilizing financial resources both domestically and internationally according to Vietnamese laws to create investment capital for environmental protection.

2. Providing financial support for national, inter-sectoral, inter-regional environmental protection programs, projects, activities to prevent, mitigate, and address environmental pollution, degradation, and emergencies, or to resolve localized environmental issues with significant impact through the following forms:

a) Offering loans at preferential interest rates;

b) Supporting interest rates on loans for environmental protection investment projects when borrowing from other credit institutions;

c) Sponsoring certain environmental protection activities and tasks as stipulated in the Regulations on the Organization and Operation of the Vietnam Environmental Protection Fund.

3. Accepting and managing entrusted capital from organizations and individuals both domestically and internationally to support investment or sponsor environmental protection activities and tasks.

4. Taking the lead and coordinating with relevant agencies to review and select environmental protection activities, tasks, and projects seeking sponsorship or investment support in accordance with legal provisions.

5. The Fund may use idle capital not sourced from the state budget and with the agreement of the capital providers to purchase government bonds in accordance with legal provisions.

Article 5. Rights of the Vietnam Environmental Protection Fund

1. Organizing administrative bodies and business units in accordance with the Regulations, goals, and assigned tasks.

2. Regularly and randomly inspect units using the Fund’s capital in implementing environmental protection activities, tasks, and projects. The Vietnam Environmental Protection Fund has the right to withdraw loaned capital, suspend sponsorship or interest rate support for borrowers who breach agreements with the Fund or violate state regulations, and to sue such borrowers before competent authorities as provided by law.

3. Inviting experts from relevant ministries, sectors, and organizations to participate in the Review Council for environmental protection activities, tasks, and projects seeking sponsorship or investment support and to serve other Fund activities.

4. Receiving salary, bonus, and welfare benefits as prescribed for state-owned enterprises.

5. Refusing any requests from organizations or individuals for information and other resources of the Vietnam Environmental Protection Fund if such requests contravene legal provisions and the Regulations on the Organization and Operation of the Vietnam Environmental Protection Fund.

6. Directly engaging with organizations and individuals both domestically and internationally to solicit, attract, and accept sponsorship or raise investment capital for environmental protection projects, activities, and tasks according to the Fund’s assigned operational plan.

7. Dispatching Fund staff abroad for work, study, observation, and survey missions in accordance with legal provisions.

Article 6. Capital sources of the Vietnam Environmental Protection Fund

The operating capital of the Vietnam Environmental Protection Fund is formed from the following sources:

1. The Fund's registered capital provided by the state budget is 200 billion VND. The state budget will fully provide the registered capital for the Vietnam Environmental Protection Fund within two years from the date of the establishment decision. Any changes to the Fund's registered capital shall be decided by the Prime Minister based on proposals from the Ministry of Science and Technology and Environment, the Ministry of Finance, and the Ministry of Planning and Investment.

2. Operating capital from other sources:

a) Compensation payments for environmental damage (revenue to the state budget) from organizations and individuals as prescribed by law;

b) A 50% allocation of environmental protection fees as prescribed by law;

c) A 10% allocation of annual funding for state management of environmental protection;

d) Voluntary contributions from organizations and individuals both domestically and internationally;

đ) Grants and sponsorships from organizations and individuals both domestically and internationally;

e) Other revenues as prescribed by law;

g) Entrusted capital from organizations and individuals both domestically and internationally for environmental protection purposes.

Article 7. Management and operational structure of the Vietnam Environmental Protection Fund

The management and operational structure of the Vietnam Environmental Protection Fund includes the Management Board, the Audit Board, and the operational administrative body.

1. The Management Board of the Vietnam Environmental Protection Fund shall consist of five members, including: a representative from the leadership of the Ministry of Science and Technology and Environment, an authorized representative from each of the Ministries of Finance, Planning and Investment, the State Bank of Vietnam, and a leader from the Environment Department under the Ministry of Science and Technology and Environment. The Chairman of the Management Board of the Vietnam Environmental Protection Fund shall be a Deputy Minister of the Ministry of Science and Technology and Environment. Based on the proposal of the Ministries of Finance, Planning and Investment, and the State Bank of Vietnam, the Minister of Science and Technology and Environment shall issue a decision to appoint the members of the Management Board of the Vietnam Environmental Protection Fund. Members of the Management Board shall operate on a part-time basis and shall enjoy benefits as prescribed by the State.

2. The Head of the Supervisory Board shall be appointed and relieved of duty by the Management Board of the Fund. Members of the Supervisory Board shall be decided by the Management Board based on the proposal of the Head of the Supervisory Board and shall operate on a part-time basis.

3. The operational agency of the Vietnam Environmental Protection Fund shall include a Director, an Assistant Director, a Chief Accountant, and a support department.

The Director of the Vietnam Environmental Protection Fund shall be concurrently held by a leader of the Environment Department, proposed by the Management Board and appointed by the Minister of Science and Technology and Environment.

The Assistant Director and Chief Accountant shall be proposed by the Director of the Vietnam Environmental Protection Fund, submitted by the Management Board to the Minister of Science and Technology and Environment for appointment or dismissal.

The support department shall be decided by the Management Board. In the initial stage, the Vietnam Environmental Protection Fund shall utilize the machinery of the Environment Department to manage its operations.

Article 8. The Minister of Science and Technology and Environment and the Minister of Finance shall be responsible for guiding the implementation of this Decision.

Article 9. Implementation Provisions

This Decision takes effect fifteen days after the date of signature.

The Minister of Science and Technology and Environment, the Ministers of Finance, Planning and Investment, the Governor of the State Bank of Vietnam, the Minister and Head of the Government’s Organization and Cadre Affairs Department, the Chairman of the Management Board, and the Director of the Vietnam Environmental Protection Fund shall be responsible for organizing the implementation of this Decision.

Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of People's Committees of provinces and centrally governed cities are responsible for implementing this Decision.