Circular No. 93 - TC/DT GUIDELINES ON THE MANAGEMENT AND USE OF FUNDS FOR THE NATIONAL HIGHWAY 5 PROJECT (KM 47-KM 62) - 93

CIRCULAR

GUIDELINES FOR THE MANAGEMENT AND USE OF FUNDS FOR THE NATIONAL HIGHWAY 5 PROJECT (KM 47-KM 62 SECTOR)

Pursuant to Decree No. 385/HĐBT dated November 7, 1990 of the Council of Ministers on amending, supplementing, and replacing the regulations on construction management; Pursuant to Decree No. 58/CP dated August 30, 1993 of the Prime Minister on the regulations for managing borrowed funds and foreign debt repayment; Pursuant to the Decision of the Prime Minister at Announcement No. 1498-QHQT dated April 9, 1993 of the Government Office; Pursuant to the credit agreement signed on May 20, 1993 between the State Bank of Vietnam and the Bank ChiaoTung (Taiwan).

After reaching consensus with the State Planning Committee, the State Bank of Vietnam, the Ministry of Transport, and the Vietnam Development Bank.

The Ministry of Finance hereby guides the management and use of Taiwan's loan funds for the state investment in the National Highway 5 project (KM 47-KM 62 sector) as follows:

I/ SOURCES OF FUNDS FOR THE PROJECT:

1/ The investment funds for the National Highway 5 project from KM 47 to KM 62 (referred to as the project), including:

- Foreign loan funds from Taiwan under the credit agreement signed between the State Bank of Vietnam and the Bank ChiaoTung (Taiwan)

- Domestic funds allocated by the state budget into the annual construction investment plan of the state for the project.

2/ For foreign loan funds, the Ministry of Finance will record all loan amounts into the state budget to allocate to the project owner and arrange the budget to repay debts when due.

3/ The competent authority for investment (Ministry of Transport) and the project owner (Project Management Board) are responsible for preparing and submitting for approval the annual construction investment plan according to current regulations to ensure the allocation of funds for the project.

4/ The Ministry of Finance ensures the inclusion of the state budget plan annually and timely transfer of funds according to the schedule of principal and interest repayment to allow the bank to repay Taiwan on time for the 30 million USD loan and interest due.

II/ WITHDRAWAL OF LOAN FUNDS, ALLOCATION, AND PAYMENT:

1/ The Vietnam Development Bank is authorized by the Ministry of Finance and the State Bank of Vietnam to withdraw Taiwan loan funds under the signed credit agreement and to implement the allocation and payment of construction investment funds for the project in accordance with Decree No. 385/HĐBT.

2/ The Vietnam Development Bank shall withdraw foreign loan funds according to the withdrawal conditions stipulated in the credit agreement.

3/ Immediately after withdrawing the loan funds, the Vietnam Development Bank shall send the Ministry of Finance a statement of withdrawal (accompanied by a copy of the receipt from the lending bank) so that the Ministry of Finance can process the recording of revenue into the state budget and record expenditure for the Vietnam Development Bank to allocate and pay funds for the project.

4/ For domestic investment funds: The Ministry of Finance shall transfer funds to the Vietnam Development Bank according to the annual construction investment plan and in accordance with the signed credit agreement with foreign countries.

5/ Allocation and payment of funds for the project:

- For foreign funds: The Vietnam Development Bank shall allocate and pay in accordance with the signed credit agreement with foreign countries.

- For domestic funds: The Vietnam Development Bank shall allocate and pay in accordance with the construction management regulations, current regulations, and in accordance with the signed credit agreement with foreign countries.

III/ REGARDING THE LOAN AMOUNTS TO REPAY FUNDS ALREADY INVESTED IN THE PHU LUONG BRIDGE, TESTING EQUIPMENT FOR THE NORTHERN THANG LONG - NOIBAI ROAD, AND CONSTRUCTION EQUIPMENT FOR THE 12TH BRIDGE PROJECT UNDER THE CREDIT AGREEMENT:

1/ For the state budget funds already invested in the Phu Luong Bridge (design costs, materials), the Project Management Board is responsible for compiling relevant documents and vouchers that have been settled with the VSL Company and sending them to the Vietnam Development Bank to process the loan withdrawal and return the funds to the state budget.

2/ For the foreign loan amount to repay the cost of equipment for testing the Northern Thang Long - Noibai Road, it will be processed similarly to Point III/1 but must be tracked separately.

3/ For the loan amount to repay construction equipment for the 12th Bridge Company: After withdrawing the funds and processing the state budget revenue recording, the Ministry of Finance will record expenditure and transfer funds to the Vietnam Development Bank for the 12th Bridge Company to borrow according to the bank's regulations. The loan interest rate will be equal to the loan interest rate from Taiwan plus bank fees. The Vietnam Development Bank is responsible for collecting the debt (principal and interest) from the enterprise and returning it to the state budget after recovering the debt from the 12th Bridge Company.

IV/ MONITORING AND SETTLEMENT WORK:

- Quarterly, the Project Management Board reports to the Ministry of Finance, the competent ministry, and the Vietnam Development Bank on the progress of construction, fund usage by source, and contract contents.

- Regularly, the Ministry of Finance, the Ministry of Transport, and the Vietnam Development Bank will inspect the Project Management Board's fund usage.

- Annually and upon completion of the project, the Project Management Board will settle the investment funds according to current regulations.

V/ IMPLEMENTATION PROVISIONS:

This Circular takes effect from the date of signature. It is requested that the State Bank and the Ministry of Transport coordinate to guide and instruct subordinate units to organize implementation. Any issues encountered during implementation should be promptly reported to the Ministry of Finance for timely supplementation and amendment.