Circular No. 84/2011/TT-BNNPTNT stipulates certain contents regarding the management of investment projects for construction works funded by state budget under the Ministry of Agriculture and Rural Development.

CIRCULAR

Regulations on certain contents regarding the management of investment construction projects using state budget funds managed by the Ministry of Agriculture and Rural Development.

Using state budget funds managed by the Ministry of Agriculture and Rural Development.

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Pursuant to the Government Decree No. 01/2008/NĐ-CP dated January 3, 2008, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development, and Decree No. 75/2009/NĐ-CP dated September 10, 2009, amending Article 3 of Decree No. 01/2008/NĐ-CP dated January 3, 2008, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development;

Pursuant to the Construction Law No. 16/2003/QH11 dated November 26, 2003;

Pursuant to the Law on Bidding No. 61/2005/QH11 dated November 29, 2005;

Pursuant to the Law Amending and Supplementing Certain Provisions Related to Investment in Construction Projects No. 38/2009/QH12 dated June 19, 2009;

The Ministry of Agriculture and Rural Development hereby stipulates certain contents regarding the management of investment construction projects using state budget funds managed by the Ministry as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates the procedures, formalities, and responsibilities and authorities of the General Departments, Bureaus, and Departments under the Ministry and organizations and individuals related to the management of investment construction projects (hereinafter referred to as projects) using state budget funds (concentrated budget funds, government bonds) managed by the Ministry of Agriculture and Rural Development.

This Circular does not apply to ODA projects and forest production projects pursuant to Decision No. 73/2010/QĐ-TTg dated November 6, 2010 of the Prime Minister on the issuance of regulations on the management of investment in forest production construction projects.

Article 2. Applicability

General Departments, Bureaus, and Departments under the Ministry and organizations and individuals related to the management of investment construction projects using state budget funds managed by the Ministry of Agriculture and Rural Development.

Chapter II

PROCEDURES AND FORMALITIES FOR IMPLEMENTING INVESTMENT CONSTRUCTION PROJECTS

Article 3. Investment Policy

1. Formulating the investment policy: Based on approved industry development plans and construction plans, the Planning and Synthesis Department proposes investment requirements from units, solicits opinions from relevant units and the Deputy Minister responsible, and submits to the Minister for approval of the investment policy.

2. Authority to approve the investment policy: The Minister of Agriculture and Rural Development approves the investment policy.

3. Contents of the decision approving the investment policy include: Project name; investor's name; proposed construction site; mission; project scale; project investment capital; lead department for review and assignment of leadership responsibility.

Article 4. Investor and Project Management Organization

1. The investor of the project is decided by the Minister when approving the investment policy. A project may have one or more investors.

2. For projects with multiple investors, the Ministry assigns one investor to be the lead entity responsible for consolidating the entire project. Investors are fully responsible within their assigned management scope and are responsible for coordinating with the lead investor during the implementation of the project. In cases where the lead investor completes the final settlement and handover ahead of schedule, the Ministry will designate another unit among the remaining investors as the lead entity.

3. During the project planning phase, the lead investor assigned by the Ministry is responsible for providing project documentation (various options, land usage scope, construction progress of individual works) to local authorities as a basis for formulating compensation, support, and resettlement plans.

Article 5. Preparation of Investment Projects and Economic-Technical Reports

1. The investor shall organize the preparation of the outline (or assignment) for consultancy survey and design work during the project investment preparation phase or economic-technical report, which must have the written agreement of the lead reviewing unit before approval.

2. The contents of the investment project and economic-technical report must ensure the requirements stipulated by current laws and the following requirements:

a) Compliance with socio-economic development plans, industry development plans, construction plans, and the Environmental Protection Law No. 52/2005/QH11 dated November 29, 2005. In cases where the project is not included in the approved industry plan, it shall be implemented according to Clause 3, Article 6 of Decree No. 12/2009/NĐ-CP; design and technology options must be established to select the optimal option; safety in construction, operation, exploitation, and use of facilities, flood prevention, fire, explosion prevention, and environmental protection; ensuring economic and social efficiency;

b) Having compensation, support, and resettlement plans approved in accordance with the law;

c) Establishing flood prevention plans for the works and incorporating them into other costs within the total investment cost of the construction project (if necessary).

Article 6. Authority to Review and Approve Investment Projects and Economic-Technical Reports

1. The General Departments, Bureaus, and Directorates, which are the lead review units assigned by the Minister through the Decision approving the investment proposal.

The lead review unit proposes the consulting unit to review (if necessary) during the project preparation stage to review part or all of the project content, submit to the investment decision-maker for decision, serving as the basis for the investor to proceed with subsequent steps.

2. The investor organizes the review of technical design drawings and estimates for economic-technical reports before submitting to the investment decision-maker for approval.

3. Authority to approve investment projects and economic-technical reports: The Minister approves Group A projects and important projects for industry development, and delegates approval authority for the remaining projects to Deputy Ministers responsible.

Article 7. Adjustment of Investment Projects

1. Adjustment of construction investment projects.

An investment project may only be adjusted under one of the following circumstances: affected by natural disasters such as earthquakes, typhoons, floods, tsunamis, enemy attacks, or other force majeure events; the emergence of factors that bring higher efficiency to the project; changes in the construction planning directly affecting the location, scale, nature, and objectives of the project.

If the construction project or its components change from the approved basic design or if the volume exceeds the contingency percentage of the project's total investment, the investor must report to the investment decision-maker for consideration and decision.

2. When adjusting an investment project, the investor must implement the Investment Monitoring and Evaluation Report (except for projects not required to conduct monitoring and evaluation).

Article 8. Authority to Review and Approve Design and Estimates

1. The investor organizes the review and approval of technical designs, construction drawing designs, and estimates consistent with the approved basic design and implements the following provisions:

a) For issues noted in the project approval decision, the investor must report design solutions to the lead review unit for comments before approval. For complex technical projects or those applying new technologies, the investor must report to the investment decision-maker before approving the design.

b) For economic-technical reports, the estimate is also the total investment amount. The estimate includes compensation, support, and resettlement costs (if applicable) and is approved by the investment decision-maker. If adjustments to the estimate are needed without exceeding the approved estimate value, the investor can organize self-review and approval; if the adjustment exceeds the estimate value or changes the construction drawings altering the project's objectives, tasks, scale, or location already approved, the investor must report to the investment decision-maker for consideration and decision.

2. Cost Estimate for the Project Preparation Phase:

The investor is responsible for organizing the preparation, review, and approval of cost estimates together with the assignment (or outline of survey and design) for the project preparation phase in accordance with the approved investment policy by the Minister and the law. This assignment and cost estimate serve as the basis for the investor to select consulting contractors to prepare the construction project investment in accordance with the Bidding Law.

Before approval, the investor must report to the Ministry (through the lead review unit) on the assignment or outline of survey and design.

3. After approval, the investor sends the approval decision along with the review report and all review reports to the Ministry (through the lead review unit) within seven working days for consolidation and monitoring.

Chapter III

PROCUREMENT WORK

Article 9. Tender Plan

1. The project owner, when dividing tender packages, must base on the technical nature, implementation sequence, ensuring the synchronization of the project, while also ensuring that the tender package has a reasonable scale, suitable for the capacity conditions of domestic contractors, ensuring maximum competitive conditions for domestic enterprises to obtain contracts, creating employment opportunities for domestic labor.

2. International tenders shall only be organized when domestic goods, materials, equipment, or domestic contractors cannot meet the requirements of the tender package or when domestic production capability is insufficient. International tenders for EPC packages (which include all design, supply of equipment and materials, and construction works) shall not be organized for projects where many parts of the work can be provided by Vietnamese contractors.

The project owner shall not use foreign labor when domestic labor is capable of meeting the requirements of the tender package.

3. For tender packages with values within the limit designated for direct assignment according to government regulations, when proposing direct assignment, the project owner must clearly state the urgency, specific industry characteristics, and ensure that direct assignment is more effective than open tendering through quantification of factors such as progress, economy, quality, and other economic-social factors.

4. In cases where it is necessary to adjust the content of the tender package in the tender plan, the project owner must proceed with the procedures to adjust the tender plan according to the provisions of the law.

Article 10. Tender Preparation

1. The project owner establishes and approves tender documents, request documents:

a) The tender document must include important requirements (preconditions) serving as grounds for rejecting tender proposals; tender documents and request documents must be stamped before issuance; tender documents and request documents shall not stipulate conditions aimed at limiting the competitive participation of contractors; detailed instructions must be provided regarding the format and sealing of tender proposals; the tender proposal must be typed or printed in non-erasable ink, numbered consecutively, and stamped by the contractor or their authorized representative between adjacent pages, copies of tender proposals must be made from the original tender proposal;

b) In the tender document and request document, there must be a requirement to bid in Vietnamese dong for domestic costs; bidding in foreign currency is only allowed for cost items (goods, services) originating from abroad when domestic requirements cannot be met and must be imported from abroad;

c) In the decision approving the tender document and request document, the project owner must detail the criteria for evaluating tender proposals and submission documents.

2. The project owner must send the approval decision along with the Review Report (including the file of the document in Times New Roman font) to the Ministry (through the lead review unit) for consolidation and monitoring within three working days after approval.

Article 11. Tender Organization and Contract

1. The project owner shall not organize a tender without having the construction site ready according to schedule and without the funding source for implementing the tender package.

2. At the time of organizing the tender, the project owner must approve the budget estimate of the tender package as prescribed. If the budget estimate of the tender package (excluding contingency) increases higher than the approved tender price in the tender plan, this estimate will replace the tender price as the basis for tender evaluation without needing to go through the procedure to adjust the tender price in the approved tender plan, provided that the excess amount falls within the limit percentage value of the contingency reserve for the item in the total investment ceiling (including quantity contingency and price escalation contingency). If it exceeds the value of the contingency reserve for the item, the project owner must submit to the investment decision-maker for examination and approval before implementation.

3. The project owner must send the minutes of the bid opening to the Ministry (through the lead review unit) for consolidation and monitoring within one working day after the bid opening.

4. The project owner must send the Decision Approving the Tender Results, Direct Assignment Results accompanied by the Evaluation Report of the Tender Proposals, Submission Documents, and the Review Report of the Tender Results to the Ministry (through the lead review unit) for consolidation and monitoring within three working days after approval.

5. The contract signed between the project owner and the contractor must specifically agree on the circumstances under which the contract may be adjusted, the contract price may be adjusted, the contract schedule may be adjusted, the procedures, scope, methods, and bases for adjusting the contract price.

During the contract execution process, if it is necessary to adjust the design and budget estimate to match the actual site conditions and market prices, before signing the supplementary contract adjustment agreement, the project owner must approve the budget estimate for the additional work volume and the adjusted unit price; if the contract price after adjustment is higher than the tender package budget plus the percentage value of the contingency reserve for the corresponding item in the total investment ceiling (including quantity contingency and price escalation contingency), then the project owner must report to the investment decision-maker for examination and approval before implementation.

6. The project owner is responsible for compiling a list of contractors and related entities violating laws on tendering and contracts in construction activities and reporting to the Ministry periodically.

Article 12. Inspection and Handling of Bidding Complaints

1. Bidding inspection: The leading unit responsible for examination shall be in charge of inspecting the bidding work of the project owner in terms of compliance with bidding regulations.

2. Handling of bidding complaints:

a) The tenderer and the project owner shall be responsible for handling bidding complaints within their jurisdiction.

b) The leading unit responsible for examination shall be in charge of handling bidding complaints within the jurisdiction of the investment decision-maker.

Chapter IV

QUALITY MANAGEMENT, PROJECT SCHEDULE AND CONSTRUCTION SAFETY

Article 13. Management of Construction Survey Quality

1. Before conducting construction survey work, the project owner must organize the establishment and approval of: construction survey tasks, technical construction survey plans in accordance with regulations. For the project proposal preparation stage or Economic and Technical Report, the project owner shall comply with the provisions of Clause 1, Article 5 of this Circular.

2. The project owner must implement supervision of construction survey work in accordance with regulations:

a) Organize regular supervision forces to oversee construction surveys and manage records from the start of the survey until completion according to regulations;

In cases where the terrain and geology are complex, requiring additional surveys beyond the approved outline, the project owner must report to the investment decision-maker for review and decision;

b) Organize acceptance of construction survey results in accordance with regulations. After accepting the construction survey, the project owner is responsible for managing the survey records and organizing the preservation of topographic boundary markers; soil samples and drill cores for subsequent use.

Article 14. Management of Construction Design Quality

1. The project owner organizes the establishment, examination, and approval of construction design in accordance with regulations and bears legal responsibility for the quality of construction design, including:

a) The results of the examination and approval of technical designs and construction drawings must be documented in writing (examination reports, approval decisions), including the following contents: the consistency of technical design with basic design, the consistency of construction drawings with previous designs; the rationality of structural solutions; compliance with applicable construction standards and regulations; safety assessment of the structure; the rationality of selecting production lines and equipment for projects with technological requirements; compliance with environmental regulations, fire prevention and control, flood prevention regulations;

b) If the project owner hires consultants to review part or all of the above contents as a basis for examination, then the review report must include all required contents. The lead reviewer of the design and the organization providing design review services must ensure capability and bear legal responsibility to the project owner for the review results;

c) Regarding the design selection of equipment, production lines, or plant seeds (collectively referred to as goods):

During the technical design and construction drawing design phase, quality standards for goods, conditions for certifying goods quality, quality management systems, and quality inspections during use must be established;

The selected goods list, in addition to meeting the project objectives and being compatible with existing production lines (for renovation and upgrade projects), must also meet current standard requirements;

d) In the technical design and construction drawing design documentation, it includes: design descriptions, design drawings, related survey documents, maintenance procedures, construction cost estimates. For water storage structures, the project owner must establish water regulation procedures and gate operation procedures before reservoir filling to ensure safe and efficient operation and compile them into the handover documentation.

2. The project owner organizes the establishment, examination, and approval of technical designs or construction drawings that align with approved basic designs. If technical designs or construction drawings differ from the basic design, they shall comply with the provisions of Clause 1, Article 7 of this Circular.

Article 15. Management of Construction Quality of Projects

1. The project owner shall be responsible for organizing the management of the entire construction quality of all project components from the start of construction to the acceptance and handover for operation and use, ensuring quality, effectiveness, and compliance with current regulations; shall bear legal responsibility for damages caused by non-compliance with the full requirements for construction project quality management.

2. The entity managing and using the project shall be responsible for appointing personnel to participate with the project owner in the organization of project planning, design, monitoring, management, supervision, acceptance, and receipt for operation and use of the project. The appointed participant shall be someone who will manage and use the project later or a person with expertise suitable for the nature of the project. In cases where new construction projects have not yet been officially assigned a management entity, the project owner must report to the People's Committee (PC) of the province or centrally governed city where the project is located, so that the PC of the province or centrally governed city can designate the management entity and appoint staff to participate in management and supervision.

3. Safety management during construction:

The project owner shall lead and coordinate with the construction contractor to implement and maintain safety measures for the project and adjacent structures during construction in accordance with current regulations.

Annually before the rainy season, the project owner must organize the preparation and approval of flood prevention plans for the project and ensure the implementation of safety measures for the project. The costs for implementing flood prevention measures for the project shall be carried out according to Article 5 of this Circular.

Article 16. Management of Construction Progress of Projects

1. Based on the completion schedule of the project, the schedule in the bidding documents, the minutes of contract negotiations, the capital plan allocated, and the land clearance schedule after signing the contract, the project owner shall approve detailed construction schedules for each component and tender package.

a) For new components and tender packages, the project owner shall organize the approval of detailed construction schedules prepared by the contractor immediately after signing the contract.

For components and tender packages with implementation periods extending into subsequent years, the project owner shall organize the approval of detailed construction schedules for remaining components and volumes in January of each year.

b) Within no more than seven working days after approval, the project owner shall send the decision approving the progress schedule along with the progress charts (including detailed construction schedule, manpower mobilization schedule, equipment and material mobilization schedule) to the Ministry (through the central unit for review) for consolidation, monitoring, inspection, and guidance.

2. The project owner shall be responsible for supervising the construction progress of the project in accordance with the approved detailed construction schedule.

If the contract schedule adjustment extends the project completion schedule, the project owner must report to the investment decision-maker for consideration and decision.

Article 17. Handover for Operation and Use of Projects

1. After completing construction and ensuring quality, the project or project component must be handed over to the management entity for effective use and to prevent damage and deterioration. The project owner shall be responsible for handing over to the management entity for use in accordance with regulations.

2. The management and usage entity shall be responsible for receiving and operating the project effectively. Specifically, for main water storage components of irrigation projects, the project owner shall organize the acceptance at the grassroots level and hand over to the management and usage entity, and prepare documentation to submit to the Ministry for acceptance and handover to the provincial People's Committee (where the project is located) for management according to Article 8 of Decree No. 72/2007/NĐ-CP dated May 7, 2007 of the Government on Dam Safety Management.

Chapter V

PAYMENT AND SETTLEMENT

Article 18. Payment of Investment Capital for Construction Projects

1. The investor shall be responsible for organizing the acceptance and payment of completed quantities (including additional quantities) to contractors according to the contract and compiling monthly reports on the implementation results and disbursement of the project to the investment decision maker.

2. The investor shall implement advance payments under the contract to contractors and recover such advance payments in accordance with regulations. In other cases, the investor must report to the investment decision maker for consideration and decision.

Article 19. Final Settlement of Investment Capital for Construction Projects

1. Authority to settle final accounts for projects decided upon by the Ministry: The Minister authorizes approval of final settlement for completed projects:

Deputy Ministers in charge approve final settlement for Class A projects and Class B projects with total investment exceeding 200 billion VND.

Heads of the Finance Department approve final settlement for Class B projects with total investment below 200 billion VND and Class C projects decided upon by the Ministry (excluding projects authorized by the Minister for General Directors to approve final settlement for projects where units under the General Director are the investors).

General Directors of General Departments approve final settlement for Class B projects with total investment below 200 billion VND and Class C projects where units under the General Department are the investors.

2. Agency responsible for auditing final settlement of completed projects

For projects decided upon by the Ministry, the Finance Department is the lead unit responsible for auditing final settlement of completed projects (with participation from lead units for project evaluation and the Planning Department) before submitting to the Ministry for approval of final settlement (excluding projects authorized by the Minister for General Directors to approve final settlement for projects where units under the General Director are the investors).

 General Directors of General Departments organize the auditing of final settlement of completed projects for projects authorized by the Minister for General Directors to approve final settlement.

Chapter VI

IMPLEMENTING PROVISIONS

Article 20. Implementation

1. Department of Planning

Guide units in preparing proposals for investment projects, consolidating investment policies and annual budget allocation plans to submit to the Minister for approval; coordinate with lead units for project evaluation to submit investment projects to the Ministry for approval (including new and adjusted projects); take the lead in preparing reports on monitoring and overall assessment of investment every six months and annually to the Ministry of Planning and Investment as prescribed.

2. Construction Management Department

a) Guide procedures and processes for basic construction investment, including tasks such as project preparation and evaluation; tendering (consultancy, construction, procurement of goods); management of construction investment costs; management of construction quality and related regulations;

b) Lead unit for project evaluation and tender plan; inspect and urge investors regarding progress and quality of construction works; carry out supervision and assessment of investment; coordinate with General Departments, Departments, and Bureaus in the acceptance and handover of completed works put into operation for construction projects assigned by the Minister;

c) Take the lead and coordinate with units under the Ministry to provide opinions on the basic design of Class A projects assigned by the Ministry;

d) Assist the Minister in managing construction quality within the scope of the Ministry's administrative management;

đ) Guide and inspect the implementation of economic-technical norms in basic construction investment; organize reviews, development, and evaluation to submit to the Ministry for publication or issuance of systems of economic-technical norms related to basic construction applicable in the industry;

e) Consolidate tendering work and construction quality management work as prescribed for construction projects managed by the Ministry.

3. General Departments, Departments, and Bureaus assigned by the Ministry as lead units for management and guidance in implementing projects shall be responsible:

a) Lead unit for project evaluation and tender plan; inspect and urge investors regarding progress and quality of construction works; carry out supervision and assessment of investment; accept and hand over completed works put into operation for construction projects assigned by the Minister;

b) Take the lead and coordinate with units under the Ministry to organize provision of opinions on the basic design when assigned by the Ministry;

c) Guide and inspect the implementation of economic-technical norms related to basic construction investment within their specialized field; organize reviews, development, and evaluation to submit to the Ministry for publication or issuance of special systems of economic-technical norms applicable in the industry;

d) Report to the Ministry (through the Planning Bureau) the implementation results and monthly disbursements of construction projects assigned by the Minister;

đ) Report tendering work and construction quality management work as prescribed for construction projects assigned by the Ministry to the Ministry (through the Construction Management Department for consolidation);

e) General Directors of General Departments organize the review and approval of final settlement for completed projects authorized by the Minister.

4. Cadre and Civil Service Organization Department: take the lead and guide together with General Departments, Departments, Bureaus, and units under the Ministry to establish Project Steering Committees for Class A projects (if necessary) and organizations to assist the Minister in managing projects as prescribed by law.

5. Science, Technology, and Environment Department: guide investors on the application of national technical standards and regulations as prescribed; take the lead and coordinate with General Departments, Departments, Bureaus, and units under the Ministry to establish Scientific Councils and Technical Councils for construction projects (if necessary).

Take the lead in reviewing the compliance and rationality with current regulations on technology and environment for projects investing in purchasing equipment, science and technology.

Guide and take the lead in reviewing environmental impact assessment reports for construction projects.

6. The Finance Department has the responsibility to organize guidance on the final settlement of basic construction investment from state budget funds according to the fiscal year and the final settlement of completed projects; organize the implementation of audit and approval of final settlement for completed projects authorized by the Minister.

7. Investors shall be responsible for implementing the provisions of this circular and current regulations.

a) Implement the reporting regime on progress, results, and disbursement according to monthly, quarterly, semi-annual, and annual periods in accordance with state regulations and those of the Ministry;

b) Conduct monitoring and evaluation investment reports: Monthly reports and reports when adjusting projects for the Ministry; Quarterly, semi-annual, and annual reports for projects classified as Group A or higher for both the Ministry and the Ministry of Planning and Investment as prescribed;

Periodically report on tendering activities; compile lists of contractors and related entities violating laws on tendering and contracts in construction activities; regarding the quality of construction works: every six months, annually, and upon completion of construction works.

Article 21. Effective Date

1. This Circular takes effect 45 days from the date of signature. Previous regulations of the Ministry of Agriculture and Rural Development that conflict with this Circular are hereby abolished.

2. During implementation, if any difficulties arise, units shall promptly report them to the Ministry in writing (through the Construction Management Department) for review and resolution./.