Joint Circular No. 90/2001/TTLT-BTC-BGTVT guides the management and settlement of State budget capital and toll revenue from road bridges for repaying loans from state credit investment for development projects.

CIRCULAR

JOINT CIRCULAR ON FINANCE - TRANSPORT
NO. 90/2001/TTLT-BTC-BGTVT OF SEPTEMBER 9, 2001
GUIDELINES FOR MANAGING AND PAYING STATE BUDGET FUNDS AND REVENUE FROM ROAD BRIDGE FEES TO REPAY LOANS FOR INVESTMENT IN TRANSPORTATION PROJECTS
TO DEVELOP BY THE STATE
DEVELOPMENT OF THE STATE TOWARDS TRANSPORTATION PROJECTS

WHEREAS, Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government on the issuance of the Investment Management and Construction Regulation, and Decree No. 12/2000/NĐ-CP dated May 5, 2000 of the Government on amending and supplementing certain provisions of the Investment Management and Construction Regulation issued together with Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government;

Pursuant to Decree No. 43/1999/NĐ-CP dated June 29, 1999 of the Government on State Investment Credit for Development;

WHEREAS, the Prime Minister's documents No. 441/TTg dated July 2, 1996, No. 1316/CP-CN dated November 4, 1998, No. 1183/CP-CN dated October 6, 1998, No. 86/TB-VPCP dated April 18, 1998, No. 5198/VPCP-CN dated December 18, 1998, Decision No. 953/QĐ-TTg dated September 29, 2000, and other decisions of the Prime Minister approving investment projects in transportation using development credit funds, repaying debts from state budget funds and revenue from road bridge fees;

The Ministry of Finance and the Ministry of Transport issue guidelines for managing and paying state budget funds and revenue from road bridge fees to repay loans for investment in transportation projects developed by the State as follows:

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

1. Scope of application: transportation projects decided to be invested in using state development credit funds (state development credit funds), repaid by state budget funds (state budget funds) or revenue from road bridge fees.

2. Project sponsors shall manage project investments until completion and handover to the management and usage units, and bear responsibility for final settlement of project investment costs. Management and payment of funds during project implementation shall be carried out according to current regulations. This Circular only specifies management and payment from when the project begins to repay debt until the end of repayment of state development credit loans.

3. The Vietnam Highway Administration (VHA), project sponsors have the responsibility to manage state budget funds and revenue from road bridge fees to repay loans for state investment in projects; provincial People's Committees have the responsibility to allocate sufficient state development funds to repay interest on loans for projects where the state development fund pays interest; the Ministry of Transport has the responsibility to allocate sufficient investment funds from state budget funds and revenue from road bridge fees to repay loans for state development credit.

4. For groups of projects repaying principal and interest or only interest using revenue from road bridge fees, the repayment source from the revenue of the projects themselves, after deducting costs for collection work approved by the competent authority. In cases where the revenue from road bridge fees of the projects themselves is insufficient to repay the debt, these projects will be allocated revenue from the group of projects to arrange repayment when due.

Specifically, the projects La Phuong - Hoa Lac, National Route 14, National Route 51 shall be implemented according to Joint Circular No. 69/2000/TTLT-BTC-BGTVT dated July 14, 2000 of the Ministry of Finance and the Ministry of Transport.

5. Repayment of state development credit loans shall be conducted at the State Treasury (ST). The ST shall be responsible for timely and full payment of funds to transfer repayment to lending organizations.

II. SPECIFIC PROVISIONS

1. Authority responsible for managing and repaying loan principal:

- Project sponsor:

+ Projects repaying both principal and interest using state budget funds.

+ Projects repaying principal using state budget funds, repaying interest using local government budget funds.

- Vietnam Highway Administration:

+ Projects repaying both principal and interest using revenue from road bridge fees.

+ Projects repaying principal using state budget funds, repaying interest using revenue from road bridge fees.

2. Handover of financial documents:

For projects managed by the VHA, the handover of financial documents between the project sponsor and the VHA shall be carried out as follows:

2.1- When the project is completed and fully settled using state development credit funds, the project sponsor shall settle the project investment costs, hand over to the management and usage unit according to regulations, and hand over all loan documents, value of the loan (principal, interest) up to the handover date, the approved settlement of project investment costs for the VHA to manage and track repayment. The handover must be recorded in a protocol signed by three parties including the project sponsor, the VHA, and the lending organization. The handover documents serve as the basis for the VHA to prepare plans and make annual repayments of loan principal.

2.2- At the time of loan repayment, if the project falls under the following circumstances:

- Unspent funds: the project sponsor is responsible for completing procedures with the lending organization to complete disbursement for the project;

- Ongoing investment projects that have not been completed and handed over but have reached the loan repayment period or due to early repayment of the project;

- Completed projects but not yet approved for final settlement of project investment costs;

The project sponsor still hands over all loan documents (certified copies), value of the loan (principal, interest) up to the repayment date to the VHA for management and tracking repayment. After the project is completed and approved for final settlement of project investment costs, continue to hand over loan documents as stipulated in point 2.1, Part II of this Circular. The project sponsor, the VHA, and the lending organization agree on the handover date for remaining loan principal.

3. Preparation and submission of annual plans:

3.1- Plan preparation:

During the annual budget estimate period, based on the credit contract and repayment plan of the project, the project sponsor and the VHA prepare investment capital plans from state budget funds and revenue from road bridge fees according to current regulations for each project to be submitted to the Ministry of Transport and the provincial People's Committee (for projects where local government budget funds pay interest).

- For projects repaying both principal and interest using state budget funds or repaying principal using state budget funds, repaying interest using local government budget funds:

+ The project sponsor prepares a plan with the Ministry of Transport to repay principal and interest from state budget funds.

+ The project sponsor prepares a plan with the provincial People's Committee to repay interest from local government budget funds.

- For projects repaying both principal and interest using revenue from road bridge fees or repaying principal using state budget funds, repaying interest using revenue from road bridge fees:

+ The Vietnam Highway Administration shall prepare plans with the Ministry of Transport to repay principal from the State budget funds and pay interest from toll revenues on highways and bridges.

+ The Vietnam Highway Administration shall prepare plans with the Ministry of Transport to repay both principal and interest on loans from toll revenues on highways and bridges.

- The Ministry of Transport shall compile and prepare investment capital plans for projects repaid using State budget funds and send them to the Ministry of Finance and the Ministry of Planning and Investment. For projects repaid using toll revenues on highways and bridges, it shall prepare investment capital plans and send them to the Ministry of Finance.

- The People's Committee of the province shall compile the investment capital plan for projects where the provincial budget pays the interest within the annual construction investment plan and report it to the Standing Committee of the Provincial People's Council, while sending it to the Ministry of Finance and the Ministry of Planning and Investment.

3.2- Notification of Plans:

- After receiving the State plan, the Ministry of Transport shall implement the investment capital and toll revenue plans for each project and submit them to the Ministry of Finance for review and notification of the investment capital payment plan for each project to the State Treasury.

- For projects where the provincial budget pays the interest on loans, the People's Committee of the province shall allocate the investment capital plan for each project and assign it to the implementing units.

3.3- Encouragement of Early Debt Repayment: Investors and the Vietnam Highway Administration shall agree with lending organizations on early debt repayment.

4. Settlement:

4.1- Opening Accounts:

- For projects repaying both principal and interest from State budget funds or repaying principal from State budget funds and interest from the provincial budget, investors shall open transaction and settlement accounts for each project at the provincial State Treasury where they have borrowed development credit funds from the State.

- For projects repaying both principal and interest from toll revenue on highways and bridges or repaying principal from State budget funds and interest from toll revenue on highways and bridges, the Vietnam Highway Administration shall open transaction and settlement accounts for each project at the Central State Treasury; simultaneously, the Vietnam Highway Administration shall open an account at the Central State Treasury to receive debt repayment funds from toll revenue on highways and bridges.

4.2- Documentation and Payment Control:

4.2.1- Payment Documentation:

Investors and the Vietnam Highway Administration shall submit payment documentation to the State Treasury (where the project has opened a settlement account) as follows:

- First submission: all initial project documents including the Investment Decision, Approval Decision on the Final Account (copies certified true by the investor and the Vietnam Highway Administration), loan contract (including any supplements if applicable), promissory note (certified copy stamped by the lending organization), approved final account of the completed project, handover record (in cases where the project repays using State budget funds and toll revenue on highways and bridges).

- Submission each time for capital withdrawal to repay debt: the investor’s or the Vietnam Highway Administration’s payment request, notice of principal and interest repayment from the lending organization (if applicable).

- Submission of supplementary handover documentation (if applicable) as stipulated in point 2.2 of Part II of this Circular.

In cases where the project has not yet been approved for the final account of the completed project at the time of debt repayment to the lending organization, the State Treasury shall base its payment on the above documentation (excluding the approved final account of the completed project) to make payments to the project and transfer funds to the lending organization; however, the final payment for debt repayment must be accompanied by the approved final account of the completed project.

For ongoing projects that have not yet been completed and handed over but have reached their repayment deadline or projects with early repayment, the procedures for opening accounts, planning, payment, final accounting, handling issues arising during and after the repayment process, and handing over documentation for debt repayment (if applicable) shall be carried out as for completed projects starting debt repayment on development credit.

The value of the project according to the approved final account of the completed project and the amount of interest payable during the repayment period is the maximum capital that the investor or the Vietnam Highway Administration can be paid to repay the lending organizations.

In cases of early repayment, the payment documentation only needs to include the investor’s or the Vietnam Highway Administration’s payment request and the agreement of the lending organization.

4.2.2- Payment Control:

- The State Treasury shall only check the legality and validity of the payment documentation and the amount of each payment, without controlling the value of completed construction works already monitored by the lending organization when disbursing funds. The responsibility for monitoring the value of completed construction works lies with the lending organization.

- Based on the request of the investor or the Vietnam Highway Administration, payment documentation, and available resources (for toll revenue on highways and bridges), within two working days from receipt of complete valid documentation, the State Treasury shall be responsible for reviewing and making payments to the project, and transferring funds to the lending organization.

5. Toll Revenue Collection on Highways and Bridges after Completion: Toll revenue collection for projects after completion shall be carried out according to current regulations. Projects deciding to repay debts using toll revenue on highways and bridges shall prioritize repayment of loans after deducting costs for the toll collection department. If toll revenue from these projects is insufficient even after adjustment, the Ministry of Transport and the Ministry of Finance shall consider and report to the Government for decision.

6. Final Accounting of Investment Capital, Handling Issues Arising During and After Debt Repayment:

6.1- Final Accounting of Completed Projects:

After the completion and commissioning of projects funded by State development credit, the investor shall be responsible for preparing the final accounting report of the completed project and submitting it to the competent authority for approval according to current regulations on final accounting of investment capital.

6.2- Handling Issues Arising During and After Debt Repayment:

- If the total debt exceeds the project value according to the approved final account, the investor shall be responsible for recovering the excess capital to repay the lending organization.

- Interest accrued during the debt repayment period shall continue to be tracked by the investors and the Vietnam Highway Administration until full repayment and included in the project's investment value for handover to the management and usage unit.

After the project has fully repaid its debt, the investors and the Vietnam Highway Corporation shall be responsible for preparing a report on the debt repayment situation and recommendations for handling any subsequent issues to be submitted to the Ministry of Transport for post-settlement processing of the project (transfer of the project's capital source) to hand over the remaining investment capital to the managing and using entity.

7. Responsibilities of relevant agencies:

7.1- Ministry of Transport:

Shall be responsible for compiling and implementing specific debt repayment plans for each project within the annual state investment in construction plan assigned, and from toll revenue for road bridges to ensure funds for debt repayment to lending organizations; approve final settlement of completed investment projects according to regulations and handle post-settlement matters for completed projects.

7.2- People's Committees of provinces and centrally governed cities (for projects repaying interest with state budget funds):

Shall be responsible for compiling and implementing specific interest repayment plans for each project according to the annual state budget investment in construction plan to ensure funds for interest repayment to lending organizations.

7.3- Investors:

Shall be fully responsible throughout the implementation process of the project, directly handling loan procedures to implement the project; after the investment project is completed, they shall carry out the handover and final settlement of investment capital according to regulations; prepare a capital repayment plan; make payments to repay debts to lending organizations; regularly report on the project's repayment situation to the Ministry of Transport and the People's Committees of provinces and centrally governed cities where projects repay interest with state budget funds; after completing debt repayment, they shall be responsible for preparing a report to submit to the Ministry of Transport for final settlement processing of the project.

For projects repaying debts with central government funds and toll revenue from road bridges, investors shall be responsible for handing over the debt repayment files of the project to the Vietnam Highway Corporation for management and repayment according to regulations.

7.4- Vietnam Highway Corporation:

Shall accept the handover of debt repayment files of each project; prepare a capital repayment plan; make payments to repay debts to lending organizations; regularly report on the project's repayment situation to the Ministry of Transport; after completing debt repayment, they shall be responsible for preparing a report to submit to the Ministry of Transport for final settlement processing of the project.

7.5- State Treasury:

Shall be responsible for supervising and making payments to repay debts to lending organizations; coordinate and guide investors and the Vietnam Highway Corporation in making payments to repay debts.

III. IMPLEMENTATION PROVISIONS

This Circular takes effect from the date of issuance.

During the implementation process, if there are any difficulties, units are requested to reflect them to the Ministry of Finance and the Ministry of Transport for timely review and amendment.