Circular No. 96/2000/TT-BTC guides the management of operational funds with investment characteristics and construction from state budget resources.

CIRCULAR

Guidelines for managing and settling investment capital

and investment and construction funds with the nature of investment and construction

from state budget funds

 

Pursuant to the State Budget Law promulgated on March 20, 1996 and Decree No. 87/CP dated December 19, 1996 of the Government detailing the division of management, preparation, implementation, and settlement of the state budget;

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

The Ministry of Finance guides the management and payment of investment capital and public service funds with the nature of investment and construction from state budget funds as follows:

 

Part I

GENERAL PROVISIONS

1. State budget capital (including domestic capital at all levels of the state budget, foreign loans of the Government, and foreign aid to the Government, local authorities, and state agencies) shall only be paid out for investment projects eligible to use state budget capital (NSNN) in accordance with the State Budget Law and the Management Regulations for Investment and Construction.

2. Investment projects using state budget capital must have complete investment and construction procedures, be included in the annual national investment plan, and meet the conditions for capital payment under the Management Regulations for Investment and Construction and this Circular.

3. Financial agencies at all levels shall implement the management of investment capital and public service funds with the nature of investment and construction from state budget capital and investment projects using other sources of state capital. The State Treasury has the responsibility to strictly monitor and control each stage of the payment process to ensure timely, full, and correct payment according to regulations for projects that meet the conditions for capital payment; if the project owner misuses capital for improper purposes causing waste and loss of state funds, measures must be taken to prevent and promptly address the issue.

4. This Circular applies to investment projects funded by state budget capital and public service funds with the nature of investment and construction managed by Ministries, government agencies, political organizations, political-social organizations, social organizations, social-professional organizations, state-owned corporations (hereinafter referred to as Ministries), provinces directly under the central government (hereinafter referred to as provinces), and districts, counties, towns, and cities directly under provinces (hereinafter referred to as counties).

The management, supervision, and payment of commune-level budget investment capital; the management, supervision, and payment of state budget capital for planning projects, investment projects of Vietnamese representative offices abroad, projects requiring confidentiality for security and defense, and projects purchasing ownership rights shall be regulated by separate documents.

Part II

SPECIFIC PROVISIONS

I. OBJECTS OF INVESTMENT PROJECTS USING STATE BUDGET CAPITAL AND PUBLIC SERVICE FUNDS WITH THE NATURE OF INVESTMENT AND CONSTRUCTION

1. Infrastructure projects in economic and social sectors without the ability to recover capital include:

Transportation, water resources, education and training, health care;

Forest reserves, protective forests, national parks, natural conservation areas;

Animal and plant quarantine stations, research centers for new breeds and breed improvement;

Cultural, social, sports, and public welfare facilities;

State administration, science and technology;

Environmental protection in regions and territories.

2. National defense and security projects without the ability to recover capital.

3. Supporting investment projects in essential sectors where the state participates according to the law.

4. Projects allocated by expenditure on public services within the state budget estimate to repair, upgrade, expand, and improve existing facilities with a value of 100 million dong or more, aimed at restoring or increasing the value of fixed assets (including the construction of new components within existing facilities of agencies and administrative units).

Public service funds shall not be allocated for new construction projects except with a decision from the Prime Minister.

5.Other investment projects as decided by the Government.        

II. PREPARATION AND ANNOUNCEMENT OF INVESTMENT CAPITAL PLANS AND PUBLIC SERVICE FUNDS WITH THE NATURE OF INVESTMENT AND CONSTRUCTION

1. Annual Plan:

1.1 During the preparation of the annual state budget estimate, based on the progress of project implementation and the notified inspection results, the project owner prepares the investment capital plan for the project to submit to the superior management agency to be incorporated into the state budget estimate in accordance with the State Budget Law.

Based on the need for repairs, upgrades, expansions, and improvements of existing facilities of agencies and units, the project owner prepares the investment expenditure plan using public service funds, to be incorporated into the state budget estimate and submitted to the superior agency in accordance with the State Budget Law.

1.2 Ministries and provincial People's Committees aggregate and prepare the investment capital plans to submit to the Ministry of Finance and the Ministry of Planning and Investment.

1.3 Based on the socio-economic development plan and the main economic balances, the Ministry of Finance, in coordination with the Ministry of Planning and Investment, allocates the investment capital plan for each Ministry, provincial People's Committee, and important state projects.

Provincial Departments of Finance and Prices participate with Provincial Departments of Planning and Investment to advise the provincial People's Committee on investment development policies during each period and each year of the plan, allocating investment capital for each project managed by the province.

County Finance Departments participate with county functional agencies to advise the county People's Committee on investment development policies during each period and each year of the plan, allocating investment capital for each project managed by the county.

1.4 After being assigned the budget by the Government, Ministries and provincial People's Committees allocate investment capital for each project within their management scope, ensuring alignment with the total investment target, domestic and foreign capital structure, economic sector structure, key state project capital amounts, and the Government's guidance on managing socio-economic development plans and annual state budget estimates.

1.5 After allocating investment capital for each project, Ministries and provincial People's Committees send the investment capital plans to the Ministry of Finance for review on the following aspects:

Ensuring that the conditions for projects allocated investment capital plans comply with the provisions of Point 1, Clause III, Part II of this Circular.

Compliance with the investment ceiling assigned by the Government regarding the total investment amount, domestic capital structure, foreign capital structure, economic sector structure, and the level of capital for important State projects.

Adherence to planning principles; investment projects must have an investment decision made before October of the previous year; Group B and Group C projects must allocate sufficient funds to implement the project as prescribed by the Government.

After inspection, if the implemented plan does not meet the above requirements, the Ministry of Finance will issue a document proposing adjustments. In cases where ministries and provincial People's Committees do not make adjustments or have adjusted but still do not comply with regulations, the Ministry of Finance will report to the Prime Minister for a decision, and at the same time, the financial agency will not transfer funds to the State Treasury for payment.

The Department of Finance and Prices (or the County Financial Office) will review the list of projects included in the local construction and investment plan according to the provisions mentioned above. For projects funded by sources left over according to the National Assembly Resolution and the Government Decision, they must also comply with the regulations on investment targets and the use of each source of investment funds. If the implemented plan does not meet the regulations, the Department of Finance and Prices (or the County Financial Office) must issue a report to the provincial People's Committee (or county) for consideration and adjustment, and refrain from transferring money to the State Treasury for payment.

1.6 Based on the allocated plan or after adjustment to comply with the regulations:

Ministries and provincial People's Committees assign plan targets to investors for implementation, simultaneously sending the agency to the State Treasury for monitoring, serving as the basis for control and payment of funds.

For projects managed by ministries, the Ministry of Finance will notify the State Treasury of the plan for fund disbursement to serve as the basis for fund payment to the projects.

For projects managed by provinces, the Department of Finance and Prices will notify the State Treasury of the province about the plan for fund disbursement to serve as the basis for fund payment to the projects.

For projects managed by counties, the County Financial Office will notify the State Treasury of the county about the plan for fund disbursement to serve as the basis for fund payment to the projects.

2. Quarterly Plan:

The content of the quarterly investment capital plan and the operational capital with investment characteristics and construction must reflect the value of the completed volume in the previous quarter and the cumulative value from the beginning of the year to the end of the previous quarter; the temporarily advanced funds, recovered temporary advances, and payments of the previous quarter and the cumulative value from the beginning of the year to the end of the previous quarter; the estimated value of the volume to be completed in the current quarter; the need for temporarily advanced funds and payment capital in the current quarter.

2.1 Based on the assigned annual investment capital plan and the project progress, the investor will establish a quarterly investment capital plan according to the above contents and send it to the State Treasury where the investor directly transacts, simultaneously sending it to the Ministry or provincial People's Committee by the 10th day of the last month of the previous quarter (for the first quarter, the investor sends it five days after receiving the annual investment capital plan assigned by the Ministry or provincial People's Committee).

2.2 Based on the annual investment capital plan and budget capacity, the financial agency is responsible for allocating the quarterly expenditure level and notifying the State Treasury; based on the need for payment capital, timely transfer funds to the State Treasury for payment to the projects.

2.3 For projects managed by counties, the investor will establish a quarterly funding plan and send it to the County Financial Office. Based on the annual capital plan and budget capacity, the County Financial Office will allocate the quarterly expenditure level for each project, notify the investor, and simultaneously send it to the State Treasury of the county; based on the need for payment capital, timely transfer funds to the State Treasury for payment to the projects.

2.4 For operational capital with investment characteristics and construction, based on the approved state budget estimate for the year, the investor will establish a quarterly expenditure plan and send it to the State Treasury where the investor directly transacts to serve as the basis for control and payment.

III. CONDITIONS FOR PAYMENT OF INVESTMENT CAPITAL AND OPERATIONAL CAPITAL WITH INVESTMENT CHARACTERISTICS AND CONSTRUCTION

Investment projects will be paid state budget capital when meeting all of the following conditions:

1. Having complete procedures for investment and construction, specifically as follows:

1.1 Investment preparation:

Document from the competent authority allowing the commencement of investment preparation.

Budget for investment preparation costs approved by the competent authority.

1.2 Project implementation preparation:

Feasibility study report (or investment report) and investment decision by the competent authority.

Budget for project implementation preparation costs approved by the competent authority.

1.3 Investment Implementation:

Feasibility study report (or investment report) and investment decision by the competent authority.

Technical design and general budget, decision approving technical design and general budget. For Group A and B projects that have not yet had approved technical design and general budget, the investment decision must specify the capital for each component and must have the technical design and budget for the construction component approved by the competent authority.

2. Being allocated investment capital plan as stipulated in Point 1, Clause II, Part II of this Circular.

3. Decision assigning investor tasks, establishing the Project Management Board (if required), appointing the Board Chair, Chief Accountant, or accounting supervisor.

4. Conducting bidding or direct assignment for consulting services, equipment procurement, and construction in accordance with the Bidding Regulations.

5. Meeting the conditions for advance payment and payment of completed work volume as stipulated in Clause IV and V, Part II of this Circular.

6. For operational capital with investment characteristics and construction:

Feasibility study report (or investment report) and investment decision.

Approval document for bidding results (for tender packages organized through bidding) or approval decision for design budget (for tender packages organized through direct assignment).

Contract for assignment of work or economic contract between the investor and the contractor.

Included in the annual state budget estimate.

7. The investor has opened an account at the State Treasury convenient for payment control and transaction convenience for the investor.

IV. TEMPORARY ADVANCE AND RECOVERY OF TEMPORARY ADVANCE FUNDS

1. Eligible recipients for temporary advance funds:

Investment projects organizing bidding under turnkey contracts.

Construction and installation tender packages organized through bidding.

Procurement of equipment (including imported equipment and domestically purchased equipment).

Consulting contracts.

Land acquisition and clearance work.

Certain works under other project costs, such as project management machinery costs, land tax, or land use right transfer tax.

Investment projects or investment project works outside the aforementioned scope can only be temporarily funded upon approval by the Prime Minister.

2. Conditions for temporary funding:

2.1 For investment projects implementing tendering under turnkey contracts (tendering all design, equipment supply, and construction works through a single contractor) and construction tenders:

There must be an approval document on the tender results from the competent authority.

There must be an economic contract between the investor and the contractor.

There must be a performance bond issued by the contractor.

2.2 For equipment procurement (including imported and domestic equipment):

There must be an approval document on the tender results from the competent authority (for the portion of equipment that is tendered) or a tender designation document (for the portion of equipment that is not tendered).

There must be an economic contract between the investor and the equipment supplier or manufacturer. For imported equipment, there must also be an approval document on the contract from the competent authority as stipulated.

There must be a performance bond issued by the contractor (for the portion of equipment that is tendered).

2.3 For consultancy services that need to be hired:

There must be an approval document on the tender results from the competent authority (for the work that is tendered) or a tender designation document (for the work that is not tendered).

There must be an economic contract between the investor and the consultancy contractor.

2.4 For certain works under other project costs:

Land compensation and clearance work must have a compensation plan and approved budget estimate.

Land allocation costs, land tax, or land use right transfer tax must have a notification from the relevant authority requiring the investor to pay the money.

Project management machinery activity costs must have an approved budget estimate.

3. Temporary Funding Amount:

3.1 For investment projects implementing tendering under turnkey contracts:

The temporary funding for equipment procurement is based on the payment schedule (as specified in Section 3.3 below).

The remaining amount is temporarily funded at 15% of the tender value, but not exceeding the annual capital plan allocated for these works.

3.2 For construction:

Tenders with a value under 10 billion VND, the temporary funding amount is 20% of the contract value but not exceeding the annual capital plan of the tender.

Tenders with a value from 10 billion VND to under 50 billion VND, the temporary funding amount is 15% of the contract value but not exceeding the annual capital plan of the tender.

Tenders with a value of 50 billion VND or more, the temporary funding amount is 10% of the contract value but not exceeding the annual capital plan of the tender.

In cases where the annual capital plan of the tender is lower than the temporary funding amount according to the regulations above (the tender has not been paid the full temporary funding amount according to the prescribed ratio), the State Treasury continues to provide temporary funding in the following year until the temporary funding ratio is reached.

3.3 For equipment procurement:

The temporary funding amount is the amount the investor must pay according to the contract but not exceeding the annual capital plan. If the capital plan does not meet the funding needs to pay according to the contract, the investor is responsible for finding additional funding sources.

The temporary funding is paid according to the payment progress of the investor to the equipment supplier or manufacturer as stipulated in the economic contract and implemented until the equipment is stored in the investor's warehouse (for non-installation equipment) or installed and accepted (for installation equipment).

3.4 For consultancy contracts, the minimum temporary funding amount is 25% of the tender value, but not exceeding the annual capital plan allocated for the consultancy work.

3.5 For land compensation and clearance work, the temporary funding amount is based on the required amount for the work but not exceeding the annual capital plan allocated for land compensation and clearance work.

3.6 For certain works under other project costs that are provided temporary funding, the temporary funding amount is based on the required amount but not exceeding the annual capital plan allocated for those works.

4. Recovery of Temporary Funding:

4.1 Temporary funding for construction contracts is gradually recovered during each period of payment for completed construction volume as follows:

Start date of recovery:

+ Tenders with a value under 10 billion VND: when payment reaches 30% of the contract value.

+ Tenders with a value from 10 billion VND to under 50 billion VND: when payment reaches 25% of the contract value.

+ Tenders with a value of 50 billion VND or more: when payment reaches 20% of the contract value.

All temporary funding is recovered when the completed construction volume payment reaches 80% of the total volume value.

The amount of temporary funding recovered each period is determined as follows:

+ When payment for completed volume reaches 50% of the contract value, the recovered temporary funding reaches 40% of the total temporary funding.

+ When payment for completed volume reaches 70% of the contract value, the recovered temporary funding reaches 80% of the total temporary funding.

+ When payment for completed volume reaches 80% of the contract value, the recovered temporary funding reaches 100% of the total temporary funding.

In cases where the temporary funding has not been fully recovered due to the tender not reaching the prescribed percentage but the project is not recorded in the plan or suspended, the investor must explain to the State Treasury about the use of unrecovered temporary funding and report to the competent authority for handling.

In cases where temporary funding has been paid but the tender does not commence construction within the time frame stipulated in the contract, the investor must explain to the State Treasury and is responsible for refunding the temporarily funded amount.

4.2 Temporary funding for equipment procurement is recovered during each payment for completed equipment volume.

For non-installation equipment, when the equipment is accepted and stored in the investor's warehouse, the investor is responsible for immediately sending the documentation to the State Treasury to process the payment for completed equipment volume and recover the temporarily funded amount.

With regard to equipment that needs installation, when the equipment has arrived atthe investor's warehouse, the investor shall notify the State Treasury for monitoring; upon completion of installation, the investor shall immediately submit relevant documents to the State Treasury to process payment for the completed equipment volume and recover the temporarily advanced funds. The State Treasury shall recover all temporarily advanced funds for the equipment when processing payment for the completed installation volume.

In cases where the temporarily advanced funds have been paid but the equipment has notbeen received within the time limit stipulated in the contract, the investor must explain to the State Treasury and be responsible for refunding the temporarily advanced funds.

4.3The recovery of temporarily advanced funds for consulting contracts shall be made ineach payment for the completed consulting work volume according to the principle:

The recovery point starts from the beginning of payment for the completed volume.

The amount recovered equals the payment amount multiplied by (x) the ratio of temporarilyadvanced funds.

4.4The temporarily advanced funds for land clearance compensation work and other projectcosts shall be recovered once during the period of payment for the completed workvolume.

4.5The level of recovery of temporarily advanced funds for various types of contracts maybe higher than the above regulations if agreed upon by both the investor and the contractor.

4.6In cases where the temporarily advanced funds have not been fully recovered by the endof the budget year due to the non-payment reaching the specified ratio, the recoveryshall continue in the following year's plan without being deducted from the nextyear's budget.

5. For certain materials that are components or semi-finished products in constructionwith high value that need to be produced in advance to ensure the progress ofconstruction projects and special materials that require seasonal storage, if it isnecessary to temporarily advance more than the prescribed temporarily advancedfunds, the investor shall report to the Ministry of Finance (for projects managedby Ministries), Provincial Department of Finance and Price Control (for projectsmanaged by provinces), District Finance Office (for projects managed by counties)for decision. These temporarily advanced funds shall be recovered when paying forthe completed construction volume that includes the aforementioned materials.

6. Regarding public expenditure with investment characteristics and construction:

Projects with capital scale of 1 billion VND or more, temporary advances and the recovery of temporarily advanced funds shall be carried out as for investmentconstruction capital.

Projects with capital scale under 1 billion VND can temporarily advance 50% of theproject's annual plan. The temporarily advanced funds shall be gradually recoveredin each payment for the completed volume and fully recovered within the planningyear. The amount recovered in each period equals the payment amount multiplied by(x) the ratio of temporarily advanced funds.

7. Investment projects with foreign capital or international tender packages where theCredit Agreement signed between the Government of Vietnam and the financier specifiesdifferent provisions on temporarily advancing funds (eligible recipients, conditionsand levels of temporarily advanced funds, recovery of temporarily advanced funds)from the above regulations shall be implemented according to the provisions in thesigned Credit Agreement.

V. PAYMENT FOR COMPLETED VOLUME

1. Payment for completed construction installation volumes:

1.1The completed construction and installation volume paid under direct award shall bethe monthly accepted volume performed in accordance with the contract, included inthe assigned investment plan, designed and detailed estimated cost approved inaccordance with state norms and unit prices.

1.2The completed construction and installation volume paid under tendering shall bethe volume performed and accepted in accordance with the contract, included in theassigned investment plan.

1.3To be eligible for payment for the completed construction and installation volume, theinvestor shall submit to the State Treasury the following documents:

1.3.1In case of direct award:

Documents approving the design and detailed estimated cost of the project component.

Decision on direct award.

Economic contract between the investor and the contractor.

Acceptance certificate for completed construction and installation volumeaccompanied by a calculation of the accepted volume value.

Invoice and payment vouchers.

1.3.2In case of tendering:

Documents approving the tender results.

Economic contract between the investor and the contractor.

Acceptance certificate for completed construction and installation volumeaccompanied by a calculation of the accepted volume value.

Invoice and payment vouchers.

Any additional volumes outside the tender package must have supplementary tenderresult approval documents (if the additional volume was tendered) or approvedsupplementary estimates (if the additional volume was directly awarded).

1.4Based on the investor's request and the submitted payment documents, within sevenworking days from receiving complete valid documents, the State Treasury shallreview, pay the investor and contractors, and recover temporarily advanced fundsaccording to regulations.

2. Payment for completed equipment volumes:

2.1The completed equipment volume to be paid is the equipment volume received by theinvestor's warehouse (for equipment that does not require installation) or installedand accepted (for equipment that requires installation) and meets the followingconditions:

The equipment list must comply with the investment decision and be included in theassigned investment plan.

Included in the economic contract between the investor and the contractor.

Received by the investor's warehouse (for equipment that does not requireinstallation) or installed and accepted (for equipment that requires installation).

2.2To be eligible for payment for the completed equipment volume, the investor shallsubmit to the State Treasury the following documents:

Economic contract between the investor and the contractor.

Invoice and warehouse release form (for domestically purchased equipment) or importdocuments (for imported equipment).

Warehouse receipt (for equipment that does not require installation) or installationwork volume settlement form (for equipment that requires installation).

Transportation, insurance, storage tax, and fee documents.

Invoice and payment vouchers.

2.3Based on the investor's request and the submitted payment documents, within sevenworking days from receiving complete valid documents, the State Treasury shallreview, pay the investor and contractors, and recover temporarily advanced fundsaccording to regulations.

3. Payment for completed consulting work volume:

3.1The completed consulting work volume to be paid is the accepted volume performed inaccordance with the economic contract and included in the assigned investment plan.

3.2To be eligible for payment, the investor shall submit to the State Treasury thefollowing documents:

Tender acceptance decision or direct award decision.

Economic contract between the investor and the contractor.

Acceptance report for completed consulting work volume.

Payment voucher.

3.3Based on the investor's request and the submitted payment documents, within sevenworking days from receiving complete valid documents, the State Treasury shallreview, pay the contractors, and recover temporarily advanced funds according toregulations.

4. Payment for other costs volume:

4.1Apart from consulting services, other types of works belonging to other project costsare payable when there are sufficient bases to prove that the work has beenperformed as follows:

As for land registration fees, construction land tax, or land transfer tax, there must be valid invoices or receipts issued by the revenue collection agency.

For compensation costs and clearance expenses, there must be approved compensation plans and budgets, along with confirmation documents of completed compensation volumes.

For demolition costs of architectural structures and site cleanup, there must be approved budgets, contracts, and acceptance records.

For project management team costs, there must be approved budgets, cash flow plans, detailed expense lists, and related documentation.

For design preparation and review costs, there must be contracts and acceptance records.

Commencement, acceptance, trial operation, and completion ceremony costs must have approved budgets and detailed expense lists.

Expert fees, technical worker training, and production management staff training costs must have economic contracts and approved cost budgets.

For construction project insurance costs, there must be insurance contracts.

For investment preparation and implementation project costs, there must be approved budgets, economic contracts, and acceptance records of completed work volumes or reports on completed work results.

4.2 Based on the investor's proposal and payment documents submitted, within seven working days from receiving complete and valid documents, the State Treasury will inspect and pay to contractors and recover advance payments according to regulations.

5. The amount paid for each project component shall not exceed the budget estimate or winning bid price; the total amount paid for the project shall not exceed the overall budget estimate and approved investment ceiling.

The annual project payment amount (including both advance payments and payments for completed work volumes) shall not exceed the year's planned capital allocation for the project.

6. In the documents sent by the investor to the State Treasury, there are types of documents that are only sent once for the entire project and those sent each time when requesting payment. Documents sent once include: feasibility study report (or investment report), investment decision, technical design approval decision and general budget estimate, budget documents, bidding result approval documents, and economic contracts between the investor and contractor.

7. For projects with foreign capital or international tender packages where the credit agreement signed between the Government of Vietnam and the financier specifies different payment terms from those above, such terms shall be implemented according to the signed credit agreement.

8. The investor must allocate sufficient funds annually to purchase construction project insurance. The State will not reimburse the investor for losses or risks covered by insurance if the investor does not purchase construction project insurance as required.           

9. Regarding public works funds with investment characteristics:

Projects with a capital scale of 1 billion dong or more, the payment for completed work volume shall be carried out according to the current investment capital management system.

Projects with a capital scale under 1 billion dong, when the completed work volume is accepted, the investor shall prepare a payment request document to send to the State Treasury, including:

Acceptance record of completed work volume.               

Detailed value calculation table of the payment volume.

Price list or itemized statement (for other expenses not using a price list) and payment vouchers.

Based on the financial limit provided by the Finance Department, the State Treasury will monitor, pay to the beneficiary unit, and recover any previously advanced funds (if applicable).

10. For certain particularly important projects requiring special advance payment and payment mechanisms different from the above provisions, after obtaining the opinion of the competent authority, the Ministry of Finance will issue specific guidance.

VI. REPORTING, SETTLEMENT, AND INSPECTION REGIME

1. Monthly on the 20th and quarterly on the 10th of the first month, the investor is responsible for reporting investment implementation status, capital receipt and usage in the previous month or quarter to the State Treasury, and sending copies to the investment decision-making authority. For Class A projects, the investor sends reports to the State Treasury, relevant ministries, provincial People's Committees, the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Construction, and the General Statistics Office for consolidated reports to the Prime Minister.

At the end of the plan year, the investor is responsible for reporting the implementation of the plan, submitting the accounting report of the investor unit according to current regulations; upon completion of the investment project, the investor is responsible for preparing the final settlement report on investment capital according to the final settlement regime for investment capital.

If the final settlement amount of a completed investment project is lower than the amount already paid, the investor is responsible for recovering the excess payment from the contractor to return it to the State.

2. Quarterly and at the end of the plan year, ministries and provincial People's Committees are responsible for consolidating the implementation status of the investment plan and capital payment status of projects under their jurisdiction and sending them to the Ministry of Finance, the Ministry of Planning and Investment, the Ministry of Construction, and the General Statistics Office as stipulated.

3. The State Treasury, central and local finance departments implement information reporting systems on capital payment status, final settlement status of completed projects, and other necessary information according to the Ministry of Finance's reporting system regulations in the construction investment field.

At the end of the fiscal year, the State Treasury settles accounts with the finance department regarding received state budget capital and payments made to projects according to the NSNN settlement regulations.

4. Ministries, provincial People's Committees, finance departments, and the State Treasury have regular and spot-check inspection regimes for investors regarding the use of advance payments, payment for completed work volumes, and compliance with national financial investment development policies and systems.

VII. RESPONSIBILITIES AND LIMITATIONS OF RELATED AUTHORITIES

1. For project sponsors:

Implement functions and tasks assigned according to the Investment and Construction Management Regulation. Receive and use funds for intended purposes, for designated recipients, economically, and effectively. Adhere strictly to legal regulations on financial investment and construction management systems.

Bear responsibility for the accuracy and legality of the quantity of the project at settlement (quantity must be according to the construction design drawings or construction technical design, quality must meet the design requirements); ensure the accuracy, legality, and appropriateness of all data and documents provided to the State Treasury and relevant state agencies.

When the construction quantity meets the conditions stipulated in the contract, promptly conduct acceptance, complete settlement files, and request payment from the contractor.

Timely and fully report to the investment decision-making agency and relevant state agencies as prescribed; provide sufficient files, documents, and information as required to the State Treasury and the Finance Department to serve management and capital disbursement; subject to inspection by the State Treasury, the Finance Department, and the investment decision-making agency regarding the use of investment capital and compliance with national financial policies and regulations.

Implement accounting for receipt and use of investment capital according to current regulations on accounting for principal investors; settle completed investment capital according to regulations.

Be entitled to request payment of capital when conditions are met and request the State Treasury to respond and explain any unsatisfactory points in the capital disbursement process.

2. For Ministries and People's Committees of provinces and districts:

Guide, inspect, and urge principal investors within their jurisdiction to implement investment plans, properly receive and use investment capital for intended purposes and according to state regulations.

Report on the implementation of investment plans as prescribed.

Within the scope of authority granted, bear responsibility before the Government and national laws for their decisions.

3. For the State Treasury:

The central State Treasury stipulates procedures, formalities, and documents to be submitted once and repeatedly during interim advances and payments.

Guide principal investors to open accounts for interim advances and payments.

Timely and fully pay capital to projects when conditions are met.

Provide clear written opinions to principal investors regarding reductions or refusals in payments, and respond to their inquiries about capital disbursements.

In cases where decisions by authorized levels are found to contravene current regulations, issue a written request for reconsideration and clearly state proposed recommendations. If no response is received within the specified time frame, have the right to proceed based on the recommendation; if a response is received but deemed unsatisfactory, still follow the opinion of the authorized level while simultaneously reporting to a higher authority for review.

Implement the system of information reporting and final settlement of investment capital and operational funds with investment characteristics and construction from state budget funds according to the State Budget Law and guidelines issued by the Ministry of Finance.

Have the right to request principal investors to provide files, documents, and information as prescribed to serve the control of capital disbursements.

Have the authority to temporarily suspend capital disbursements or recover capital that principal investors misuse, not use for the correct purpose, or violate state financial management regulations, and report to the Ministry of Finance for handling; have the right to refuse capital disbursements to projects where principal investors do not strictly adhere to quarterly investment capital planning regulations and regular reporting requirements as stipulated in the Investment Management Regulations and this Circular.

Not participate in completion quantity acceptance boards.

Organize capital control and disbursement work according to unified business procedures, ensuring strict capital management, timely and full disbursements, and convenience for principal investors.

Bear responsibility before the Minister of Finance and national laws for receiving, using state budget capital, and disbursements in investment and construction.

4. For finance departments at various levels:

Ensure sufficient sources of capital and timely transfer capital to the State Treasury for it to disburse to projects.

Report and settle development investment capital according to the State Budget Law.

Cooperate with ministries and provinces to guide and inspect principal investors on compliance with financial investment development policies and regulations, management, and use of investment capital.

Have the right to request principal investors to provide necessary documents and information to serve state management of financial investment development, including documents for project investment assessment and annual plan allocation, regular reports as required by the information reporting system, and documents for auditing final investment capital settlements.

Part III

IMPLEMENTING PROVISIONS

1. This Circular takes effect fifteen days from the date of signature and replaces Circular No. 135/1999/TT-BTC dated November 19, 1999, issued by the Ministry of Finance guiding the management and disbursement of investment capital and operational funds with investment characteristics and construction from the state budget, and Circular No. 76 TC/ĐTPT dated November 1, 1997, issued by the Ministry of Finance guiding the management and disbursement of investment capital for construction and development under district and commune budgets.

2. For other state budget expenditures for development (national reserve expenditure, working capital support for enterprises, equity contribution to joint stock companies, expenditure for foreign loans and foreign aid, expenditure for development support funds), follow separate guidance documents for each type of expenditure.

3. For investment projects funded from other state sources, apply the payment principles stipulated in this Circular./.