Decree No. 96/2018/NĐ-CP provides detailed regulations on the price of water conservancy products and services and financial support for the use of public welfare water conservancy products and services.

DECREE

Article 24detailing the price of water resource products and services and financial support for the use of public welfare water resource products and services

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On the basis of Law on Government Organization dated June 19, 2015;

On the basis of Law on Water Resources June 21, 2012;

On the basis of Price Law dated June 20, 2012;

On the basis of Article 1. This Decree regulates the use of state assets to pay investors when implementing construction projects under the Build-Transfer Contract form (hereinafter referred to as BT Project) in accordance with the provisions of the law. June 25, 2015;

On the basis of Law construction costs; and its guiding regulations construction costs; dated November 25, 2015;

On the basis of Law on Irrigation dated June 19, 2017;

On the basis of Law on Management and Use of State Property June 21, 2017;

At the proposal of the Minister of Finance;

The Government promulgates this Decree to detail the price of water resource products and services and financial support for the use of public welfare water resource products and services.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree details the price of water resource products and services, the implementation schedule for the price of water resource products and services (including the price of public welfare water resource products and services and the price of other water resource products and services); the subjects, scope, methods; the level of financial support for the use of public welfare water resource products and services.

Article 2. Applicability

This Decree applies to organizations and individuals within Vietnam and foreign entities participating in water resource activities on Vietnamese territory, including owners of water resource works; managers of water resource works; organizations and individuals exploiting water resource works; organizations and individuals using water resource products and services and other related organizations and individuals.

Chapter II

PRICE OF WATER RESOURCE PRODUCTS AND SERVICES AND IMPLEMENTATION SCHEDULE FOR THE PRICE OF WATER RESOURCE PRODUCTS AND SERVICES

Section 1

PRICE AND IMPLEMENTATION SCHEDULE FOR THE PRICE OF PUBLIC WELFARE WATER RESOURCE PRODUCTS AND SERVICES

Article 3. Price of public welfare water resource products and services

1. Unit of measurement

The price of public welfare water resource products and services is calculated in Vietnamese dong (VND) for each unit of public welfare water resource product or service according to each irrigation method, drainage method, type of product, or service. Specifically as follows:

- Irrigation for crops: VND/ha/crop or VND/m3.

- Supply of water for aquaculture: VND/ha/year or VND/ha/crop or VND/m3 or VND/m2 surface area/year; supply of water for salt production: VND/ha/year or VND/ha/crop or VND/m3 or 2% of the value of finished salt.

- Supply of water for animal husbandry: VND/m3.

- Drainage, flood discharge, serving agricultural production, rural areas, and urban areas except inner city areas: VND/unit of work/year. In cases where the specific content of the work cannot be determined, it will be calculated based on VND/ha watershed drainage/flood discharge, but the maximum price shall not exceed 5% of the price of irrigation water resource products and services for paddy fields/crop.

- Flood discharge, flood prevention, tidal surge prevention, salinity intrusion prevention, salinity flushing, acid flushing, sweet water retention: VND/unit of work.

2. Pricing Method for Public Welfare Water Resource Products and Services

Based on market conditions at the time of pricing under normal weather conditions (without natural disasters, fires, and other abnormal conditions), the manager of the water resource work or the organization or individual exploiting the water resource work shall establish the price of public welfare water resource products and services according to the general pricing method for goods and services prescribed by the Ministry of Finance and the formula below for competent state agencies to review the pricing plan and set the maximum price and specific price of public welfare water resource products and services:

The total cost of public welfare water resource products and services includes all operating costs, maintenance costs, depreciation costs of fixed assets, management costs, and other reasonable actual costs of the organization exploiting the water resource work according to each irrigation or drainage method or type of product or service or content of work.

The costs included in the total cost of public welfare water resource products and services include the costs determined in Article 7 of this Decree, excluding reserve costs and revenue from the use of water resource products and services. The costs of wages, salaries, midday meals, deductions based on salary, depreciation costs of fixed assets, and anticipated profit in the price of public welfare water resource products and services are determined as follows:

a) Costs of wages, salaries, midday meals, and deductions based on salary

Organizations and individuals exploiting water resource works participating in supplying public welfare water resource products and services determine the costs of wages, salaries, midday meals, and deductions based on salary in the price of public welfare water resource products and services according to the same method for calculating wage costs in the price of public welfare water resource products and services funded by the state budget as prescribed by the Ministry of Labor, Invalids, and Social Affairs and other relevant legal documents.

b) Depreciation costs of fixed assets

For water resource works constructed with state capital or through public-private partnership: the depreciation costs of fixed assets included in the price of public welfare water resource products and services are transportation equipment, transmission equipment, facilities, information management systems, and office machinery and equipment.

During each period, based on economic and social conditions and the state budget capacity, the Ministry of Finance stipulates the phased depreciation costs of fixed assets for water resource works funded by the state according to legal provisions.

c) Anticipated profit

The maximum anticipated profit level of public welfare water resource products and services is determined as the anticipated profit level after paying corporate income tax (if applicable) ensuring the establishment of two welfare funds and reward funds as prescribed by current laws.

3. The establishment of pricing plans and adjustments to the prices of public welfare water resource products and services shall be carried out in accordance with Articles 9 and 10 of this Decree.

Article 4. Implementation schedule for the prices of public utility products and services in water conservancy

1. Period from 2018 to 2020

a) The maximum price of public utility products and services in water conservancy during the period of 2018-2020 in the stable state budget period of 2017-2020 shall be equal to the maximum price implemented in 2017.

b) The Minister of Finance shall stipulate and announce the maximum price of public utility products and services in water conservancy.

2. Period from 2021 onwards

a) Based on the pricing method for public utility products and services in water conservancy, the management authority of water conservancy works or organizations and individuals operating water conservancy works shall establish pricing plans for public utility products and services in water conservancy according to Article 9 of this Decree.

b) Based on the actual situation of fluctuations in factors forming prices and the state budget capacity, the Ministry of Finance shall take the lead and coordinate with the Ministry of Agriculture and Rural Development and localities to stipulate and announce the maximum price level of public utility products and services in water conservancy for the new stable budget period.

Section 2

PRICES AND IMPLEMENTATION SCHEDULE FOR OTHER WATER CONSERVANCY PRODUCTS AND SERVICES

Article 5. Unit of measurement for the prices of other water conservancy products and services

1. The price of other water conservancy products and services shall be calculated in Vietnamese dong (VND) per unit of product or service for each type of product or service.

2. Units of measurement

a) Water supply for domestic and industrial use: VND/cubic meter.

b) Water consumption for industrial zones including industrial plants, export processing zones, economic zones, and high-tech parks: VND/unit of work or VND/hectare of drainage area, but the maximum price shall not exceed 50% of the price of irrigation products and services for rice cultivation land.

c) Combined power generation: VND/revenue percentage (value of electricity sales).

d) Business, tourism, and other recreational activities: VND/revenue. In cases where land is assigned or leased within the protected area of water conservancy works for such purposes, it shall be calculated at VND/hectare/year.

đ) Aquaculture in reservoirs: VND/hectare of surface area/year.

e) Combined transportation: VND/ton/time or VND/square meter/trip.

Article 6. Pricing Method for Other Water Conservancy Products and Services

1. The pricing method for other water conservancy products and services stipulated in this Decree serves as the basis for the management authority of water conservancy works or organizations and individuals operating water conservancy works to establish pricing plans for other water conservancy products and services, and for competent state agencies to review pricing plans and set price ranges and specific prices for other water conservancy products and services.

2. Based on market conditions at the time of pricing under normal weather conditions (without natural disasters, fires, or other abnormal conditions), the management authority of water conservancy works or organizations and individuals operating water conservancy works shall establish the price levels for other water conservancy products and services according to the general pricing method for goods and services prescribed by the Ministry of Finance.

Pricing for other water conservancy products and services should be consistent with the market price level at the time of pricing, state policies affecting the prices of other water conservancy products and services, and the following formula:

The total cost of other water conservancy products and services includes all operational costs, maintenance costs, depreciation costs of fixed assets, management costs, and other reasonable actual costs of the entire organization operating the water conservancy works according to the type of product or service or the content of the work. Costs included in the total cost, anticipated profit, and financial obligations in the price of other water conservancy products and services are determined in Article 7 of this Decree.

Article 7. Total cost, anticipated profit, and financial obligations included in the price of other water supply products and services

The items of costs in total cost, anticipated profit, and financial obligations according to the law in the price of other water supply products and services include:

1. Operating expenses:

a) Wages, salaries, meal allowances during work shifts, social insurance contributions, health insurance contributions, unemployment insurance contributions, and union dues calculated based on wages;

Organizations and individuals operating water supply facilities providing other water supply products and services shall determine wages, salaries, meal allowances during work shifts, and wage-related contributions in the price of other water supply products and services in accordance with guidelines issued by the Ministry of Labor, Invalids, and Social Affairs and relevant laws.

b) Costs of raw materials, fuels, and supplies for operation and maintenance of facilities and machinery;

c) Electricity costs for pumping water;

d) Water source development costs (if applicable);

đ) Safety and labor protection costs (if applicable);

e) Costs for protecting and ensuring the safety of water supply facilities (if applicable).

2. Maintenance expenses

a) For water supply facilities invested in and managed by the State: maintenance costs include inspection, monitoring, quality testing, regular maintenance, and routine repairs of assets but do not include activities that change the function or scale of the facility, which are accounted for directly in the price of water supply products and services unless they are covered by state budget funds. Regular maintenance and repair costs that do not involve changes to the function or scale of the facility are calculated separately and implemented according to current laws on the management, use, and operation of water infrastructure assets and laws on the management and use of public assets.

b) For water supply facilities not invested in and managed by the State: maintenance costs are implemented according to current laws.

3. Depreciation expenses of fixed assets (FA)

a) Depreciation expenses of FA in the price of other water supply products and services include depreciation expenses of FA subject to depreciation according to regulations of the Ministry of Finance on the management, use, and depreciation of fixed assets. Depreciation expenses of FA in the price of other water supply products and services are determined according to the schedule specified in Article 8 of this Decree.

b) FA not subject to depreciation must be recorded in a ledger to track asset wear and tear according to regulations of the Ministry of Finance.

c) The method of depreciation of FA by organizations and individuals operating water supply facilities shall apply the straight-line method.

4. Management expenses include:

a) Material expenses for business management tasks such as office supplies, materials used for repairing fixed assets, tools, and equipment;

b) Office supplies expenses for management tasks;

c) Training, scientific research, and new technology application expenses directly related to the provision of water supply products and services (if applicable), implemented according to current laws;

d) Expenses for external services supporting business management; expenses for purchasing and using technical documents and patents (not meeting criteria for recording as FA) are allocated gradually into business management expenses;

đ) Conference, hospitality, travel, transportation, and female employee expenses, conference participation fees;

e) Severance pay expenses;

g) Audit expenses;

h) Collection expenses for the use of other water supply products and services (if applicable);

i) Provision expenses (if applicable) including doubtful receivables provisions and provisions for liabilities included in the cost of supplying other water supply products and services;

k) Fees and charges as prescribed by law.

5. Other actual reasonable expenses directly related to the provision of other water supply products and services (if applicable) include:

a) Financial expenses;

b) Expenses for establishing economic and technical standards; expenses for developing operational procedures;

c) Land rental expenses;

d) Expenses for removing debris from pump stations' reservoirs, clearing weeds and debris;

đ) Expenses for marking boundaries of water supply facility protection zones; expenses for measuring, inspecting, and evaluating the safety of water supply facilities (in cases where these are not covered by other funding sources);

6. Anticipated profit

The level of anticipated profit in the price of other water supply products and services is determined based on audited financial reports or final accounts closest to the valuation date of organizations and individuals operating water supply facilities providing similar products and services, or based on industry data or actual data from recent years of organizations and individuals operating water supply facilities.

7. Financial obligations under current laws (if applicable): Value-added tax, corporate income tax, and other taxes as prescribed by current tax laws.

8. Expenses not allowed to be included in reasonable and legitimate costs for determining the price of other water supply products and services

a) Expenses not allowed to be included in reasonable and legitimate costs for determining the cost of other water supply products and services are implemented according to tax laws and relevant legal documents.

b) Expenses already covered by the state budget, and expenses unrelated to production and supply tasks of other water supply products and services.

9. Allocation of expenses

For expenses related to multiple types of other water supply products and services, irrigation and drainage methods, and various job contents that cannot be separated, they should be aggregated and allocated based on total costs for planned production volume or quantity, or allocated according to appropriate criteria consistent with relevant laws for each product and service, each irrigation and drainage method, and each job content.

Article 8. Implementation schedule for the price of other water resources products and services

1. Period from 2018 to 2020

The price of other water resources products and services during the period from 2018 to 2020 for the management authority of water resources works or organizations exploiting water resources works to base on collecting water resources service fees from users shall include all cost items in total cost, expected profit, and financial obligations as prescribed in Article 7 of this Decree, excluding reserve costs.

2. Period from 2021 onwards

The price of other water resources products and services for the management authority of water resources works or organizations exploiting water resources works to base on collecting water resources service fees from users shall be calculated based on all cost items in total cost, expected profit, and financial obligations as prescribed in Article 7 of this Decree.

3. In each period, based on economic and social conditions and state budget capacity, as well as the payment ability of water resources product and service users, the Ministry of Finance shall stipulate the depreciation expense schedule for fixed assets according to the provisions of the law upon the proposal of the Ministry of Agriculture and Rural Development for water resources works funded by state capital.

Section 3

ESTABLISHING AND ADJUSTING THE PRICES OF WATER RESOURCES PUBLIC SERVICES PRODUCTS AND OTHER WATER RESOURCES PRODUCTS AND SERVICES

Article 9. Establishing the price plan for water resources products and services

1. Establishing the price plan for water resources products and services

The dossier for the price plan of water resources products and services submitted to the competent authority or person with decision-making power includes:

a) A letter requesting pricing or price adjustment;

b) Documents, vouchers, and related materials for pricing or price adjustment:

If there are economic and technical norms for managing and operating water resources works issued by the competent authority: The original or certified copy of the economic and technical norms issued by the competent authority and other relevant documents. In case there is no certification from the competent authority, the head of the unit shall certify and bear responsibility.

If there are no economic and technical norms for managing and operating water resources works issued by the competent authority: The original or certified copy of the document issued by the competent authority detailing the calculation of all cost items, reasonable and valid documents, and other relevant materials. In case there is no certification from the competent authority, the head of the unit shall certify and bear responsibility.

If it is necessary to clarify contents in the price plan dossier prepared by organizations or individuals operating water resources works, the competent authority for pricing may request organizations or individuals operating water resources works to report and explain specific related contents.

c) The appraisal document of the price plan for water resources products and services by the competent authority for appraisal as prescribed.

d) Other related documents.

2. Building and submitting the price plan for water resources products and services

a) For the Central level

Before March 31 of the year preceding the planning year, the management authority of water resources works or organizations operating water resources works managed by the Central government shall prepare the dossier for the price plan of water resources products and services for the planning year within the scope of the assigned water resources works and submit it to the Ministry of Agriculture and Rural Development. Based on that, before June 30 of the year preceding the planning year, the Ministry of Agriculture and Rural Development shall appraise the price plan for water resources products and services for the planning year, send it to the Ministry of Finance to stipulate and announce the maximum price of water resources public services products and the price range for other water resources products and services for the planning year.

b) For localities

Before March 31 of the year preceding the planning year, based on the dossier for the price plan of water resources products and services for the planning year prepared by the management authority of water resources works or organizations and individuals operating water resources works at the locality after receiving comments from the Department of Finance and the People's Committee of provinces and cities (hereinafter referred to as the Provincial People's Committee), the price plan for water resources products and services for the planning year within the scope of the water resources works managed by the locality according to the classification of the Ministry of Agriculture and Rural Development shall be submitted to the Ministry of Agriculture and Rural Development. Based on that, before June 30 of the year preceding the planning year, the Ministry of Agriculture and Rural Development shall review and consolidate the price plans of the Provincial People's Committees, send them to the Ministry of Finance to stipulate and announce the maximum price of water resources public services products and the price range for other water resources products and services for the planning year.

3. For water resources works constructed under the public-private partnership model and those constructed without using state capital, the prices of water resources products and services shall be determined according to the contract between the parties based on the maximum price of water resources public services products and the price range for other water resources products and services but shall not exceed the maximum price and price range stipulated and announced by the Minister of Finance.

Article 10. Adjustment of water resource product and service prices

1. The adjustment of prices for water resource products and services shall be carried out in accordance with the provisions of the Price Law and other relevant legal documents.

2. In normal conditions, if the input costs in the price of water resource products and services planned for the year vary compared to the previous year, organizations, individuals operating water resource facilities, and competent state management agencies may base their pricing adjustments on the actual implemented prices of water resource products and services from the previous year and the projected national consumer price index (CPI) announced by the National Assembly to establish pricing adjustment plans, conduct price appraisals, and issue maximum prices, price ranges, and specific prices for water resource products and services for the planning year according to the following formula:

3. In normal conditions, if the input costs in the price of water resource products and services planned for the year remain stable without variation compared to the previous year, the Ministry of Agriculture and Rural Development and provincial People's Committees shall not propose adjustments to the maximum price or price range for water resource products and services but must specify the specific prices for water resource products and services that do not exceed the previously announced maximum price and price range by the Ministry of Finance for organizations and individuals operating water resource facilities to implement; at the same time, they must report to the Ministry of Finance.

Chapter III

SUPPORT FOR THE USE OF WATER RESOURCE PUBLIC SERVICES

Section 1

ELIGIBLE OBJECTS, AMOUNTS, AND STATE FUNDS

Article 11. Eligible objects and scope for support for the use of water resource public services

1. Households and individuals using agricultural land for food crop production including:

a) All areas allocated for food crop production, including inherited, gifted, or transferred land use rights;

b) All agricultural land for research and experimental production; land planted with annual crops having at least one rice harvest per year. Land planted with annual crops having at least one rice harvest per year includes land with plans to plant at least one rice harvest per year or land with plans to plant annual crops but actually planted with at least one rice harvest per year.

2. Poor households and individuals granted agricultural land use rights by the State.

3. Households and individuals using land for salt production.

4. Households and individuals using agricultural land within the quota for growing vegetables, medicinal plants, seedlings; long-term industrial crops, short-term industrial crops including winter crops; fruit trees; flowers; medicinal herbs; aquaculture (excluding aquaculture in lakes, reservoirs, rivers, streams, ponds...); livestock breeding.

5. Households and individuals who are farm workers receiving land within the quota assigned by agricultural companies, forestry companies (state-owned farms and forests) for agricultural production in accordance with the law.

6. Organizations and individuals responsible for drainage and flood control in rural and urban areas excluding inner city zones.

7. Organizations and individuals responsible for flood evacuation, flood prevention, tidal surge prevention, salinity intrusion prevention, salinity flushing, alkaline soil flushing, and sweet water retention in the locality.

Article 12. Level of Support for the Use of Public Waterworks Products and Services

1. Provide 100% support for the cost of using public waterworks products and services for the subjects specified in Clauses 1, 2, 3, 4, and 5 of Article 11 of this Decree:

a) Based on specific prices determined by the Ministry of Agriculture and Rural Development and the People's Committee of the province based on the maximum price set by the Ministry of Finance within its authority;

b) Calculated from the point of delivery and receipt of waterworks products and services between the organizations and individuals providing and using such products and services to the main waterworks facility at the starting point. The Ministry of Agriculture and Rural Development shall specify details about the points of delivery and receipt of waterworks products and services according to Article 33 of the Law on Water Resources;

c) All costs from the point of delivery and receipt of waterworks products and services to the cultivated land are the responsibility of the organizations and individuals using waterworks products and services.

2. Provide 100% support for the cost of products and services for the subject specified in Clause 6 of Article 11 of this Decree based on specific prices determined by the Ministry of Agriculture and Rural Development and the People's Committee of the province or centrally governed city based on the maximum price set by the Ministry of Finance within its authority.

3. Provide financial support for the subjects specified in Clause 7 of Article 11 of this Decree based on the actual workload and tasks approved by the People's Committee of the province or centrally governed city and the local budget's ability to pay to determine the specific level of support.

4. The level of support shall be implemented according to the principle of one area; one irrigation and drainage method; one cubic meter; one work content according to the specific price of public waterworks products and services under normal weather conditions.

5. Subjects not entitled to support for the use of public waterworks products and services must pay the cost of using such products and services as prescribed.

Article 13. Method of Support and Budget Expenditure Responsibilities

1. The state budget provides support for the cost of using public waterworks products and services for the subjects specified in Article 11 of this Decree through direct payment to organizations and individuals operating waterworks facilities as stipulated in Clause 1 of Article 23 of the Law on Water Resources based on the acceptance of area, volume, methods, and irrigation and drainage according to specific prices.

a) The central budget pays the cost of using public waterworks products and services for organizations and individuals operating central waterworks facilities.

b) The local budget pays the cost of using public waterworks products and services for organizations and individuals operating local waterworks facilities.

2. Localities use their local budgets and support funds from the central budget (if any) to support organizations operating local waterworks facilities. The central budget supports according to the principle of targeted support from the central budget to the local budget to implement social welfare policies decided by the Prime Minister.

Article 14. Policy for Organizations Operating Waterworks Facilities

1. Organizations operating waterworks facilities performing tasks of supplying and irrigating water beyond the portion of the cost of using public waterworks products and services paid by the state budget are entitled to additional financial support for maintenance expenses (except in cases where public waterworks products and services are provided through bidding and included in the bid price) and other financial support as prescribed by law based on the budget capacity of each level. The issuance and settlement of these support payments shall be carried out in accordance with the State Budget Law.

2. The central budget provides financial support for organizations operating central waterworks facilities.

3. The local budget provides financial support for organizations operating local waterworks facilities. In cases where the local budget is strained, the central budget may provide support to the local budget according to the provisions of the State Budget Law.

Section 2

PROCEDURE FOR ESTABLISHING, ASSIGNING PROJECTIONS, ISSUING, SETTLING AND AUDITING ACCOUNTS

Article 15. Preparation and allocation of budget estimates for financial support for the use of public utility products and services in water conservancy

1. The preparation and allocation of budget estimates for financial support for the use of public utility products and services in water conservancy shall be carried out in accordance with the provisions of the State Budget Law and guiding documents thereof.

2. Basis for preparing the budget estimate: based on the volume of work, area (hectares), volume (cubic meters), economic and technical norms, prices, and levels of support for public utility products and services in water conservancy as determined by the competent authority.

Determining the volume of work and area eligible for financial support for the use of public utility products and services in water conservancy:

Organizations and individuals operating water conservancy works shall base their calculations on cadastral maps, water supply methods, irrigation, drainage, water supply contracts, irrigation contracts, drainage contracts between organizations and individuals operating water conservancy works and households using water (including People's Communes, cooperatives, water user associations, directors of enterprises, directors of experimental stations, directors of farms, or direct agreements with individual households) to prepare lists of beneficiaries and areas of land eligible for financial support for the use of public utility products and services in water conservancy, and shall bear legal responsibility for the contents confirmed.

In cases where the water users are identified as People's Communes, cooperatives, water user associations, directors of enterprises, directors of experimental stations, or directors of farms, a list of household names and the area of land for each household must be attached; the People's Committee of the district where the beneficiaries reside shall be responsible for reviewing and confirming the eligible areas for support and shall bear legal responsibility for the contents confirmed.

The determination of the area of land eligible for support for public utility products and services in water conservancy is based on the area of land approved by the Provincial People's Committee in the previous year and the anticipated increase or decrease in area, which is compiled and reported by the Department of Agriculture and Rural Development (if applicable).

3. Consolidation of budget estimates for financial support for the use of public utility products and services in water conservancy:

a) The specialized department at the district level responsible for state management in agriculture shall consolidate the budget estimates of units under its management and submit them to the District Finance and Planning Department for review and consolidation into the district budget, to be reported to the District People's Committee for verification and forwarded to the Provincial Department of Finance and the Provincial Department of Agriculture and Rural Development for consolidation into the local budget estimate;

b) For organizations managing part of the works within a watershed system of water conservancy works owned 100% by a state-owned limited liability company, the state-owned limited liability company owning 100% of the charter capital shall be responsible for consolidating the budget estimates and submitting them to the Provincial Department of Finance and the Provincial Department of Agriculture and Rural Development for consolidation;

c) The Provincial Department of Finance, in collaboration with the Provincial Department of Agriculture and Rural Development, shall consolidate the budget estimates of organizations operating water conservancy works under provincial management into the local budget estimate;

d) The Ministry of Agriculture and Rural Development shall consolidate the budget estimates of organizations operating central-level water conservancy works and submit them to the Ministry of Finance for consolidation into the central government budget estimate.

Article 16. Issuance and Payment of Subsidy Funds for the Use of Public Utility Waterworks Products and Services

1. Authority to decide on the volume of work, area eligible for subsidy funds for the use of public utility waterworks products and services:

a) The Ministry of Agriculture and Rural Development decides on the volume of work, area, and quantity of water eligible for subsidy funds for the use of public utility waterworks products and services for central waterworks exploitation organizations.

b) The People's Committee of the province decides on the volume of work, area, and quantity of water eligible for subsidy funds for the use of public utility waterworks products and services for local waterworks exploitation organizations.

2. Documents to be submitted to the competent authority to decide on the volume of work and area eligible for subsidy funds for the use of public utility waterworks products and services:

- A list confirmed by the People's Committee of the district regarding the objects, work, and area eligible for subsidy funds for the use of public utility waterworks products and services.

- A proposal requesting approval of the volume of work and area eligible for subsidy funds for the use of public utility waterworks products and services.

3. In cases where a management and exploitation company of a waterworks project and a grassroots waterworks organization jointly manage a waterworks project, and the management and exploitation company of the waterworks project performs the task of generating resources, the management and exploitation company of the waterworks project shall enter into a contract with the grassroots waterworks organizations managing part of the system of works within the project as the basis for payment of subsidy funds.

4. Payment and issuance of funds under the assignment method:

a) Based on the approved budget estimate and the budget estimate of the waterworks exploitation organization, the financial agency shall issue funds to the waterworks exploitation organization twice a year, issuing 60% of the total funds at the beginning of the first quarter and 40% of the remaining funds at the beginning of the third quarter based on the report on the implementation situation for the first six months of the year, the forecast for the last six months of the year, and the estimated completion of the annual plan by the waterworks exploitation organization. The issuance shall be carried out by means of a payment order.

b) Documents for requesting issuance of funds: A letter requesting issuance of funds; decision assigning tasks by the competent authority; budget estimate; report on the implementation situation for the first six months of the year.

c) For organizations exploiting waterworks projects that are managed and controlled over part of the system of works within the watershed project managed by the management and exploitation company of the waterworks project, the company shall temporarily advance and settle funds for grassroots waterworks organizations according to the contract signed between both parties. The level of temporary advance settlement shall be in accordance with the ratio that the company receives from the state budget.

5. Payment and issuance of funds under the order method:

a) Immediately after the order contract is signed, the financial agency shall temporarily advance 60% of the funds according to the contract to the receiving unit. After receiving a report on the implementation of the contract reaching 60% of the contract value, the financial agency shall issue an additional 30% of the funds according to the contract, and the remaining 10% of the funds shall be issued upon acceptance and settlement of the contract. The issuance and settlement shall be carried out by means of a payment order.

b) Documents for requesting issuance of funds: A letter requesting issuance of funds; decision allocating the budget estimate; copy of the order contract; report on the implementation of the order contract.

6. Payment and issuance of funds under the bidding method:

a) Immediately after the bidding contract is signed, the financial agency shall temporarily advance 50% of the funds according to the contract to the receiving unit. After receiving a report on the implementation of the contract with the completed volume reaching 60% of the bid value, the financial agency shall advance an additional 40% of the funds according to the contract, and the remaining 10% of the funds shall be issued upon acceptance and settlement of the contract. The issuance and settlement shall be carried out by means of a payment order.

b) Documents for requesting issuance of funds: A letter requesting issuance of funds; copy of the bidding contract, minutes of acceptance of the volume according to the bid value, report on the implementation of the contract.

Article 17. Settlement of Subsidy Funds for the Use of Public Waterworks Products and Services

1. The settlement of subsidy funds for the use of public waterworks products and services shall be carried out in accordance with the provisions of the State Budget Law and guiding documents thereof.

2. Organizations and individuals operating waterworks facilities must have all necessary vouchers to serve as the basis for settling financial subsidies (certified true copies of the vouchers issued by the organizations and individuals operating the waterworks facilities):

a) Contract for the supply and use of public waterworks products and services;

b) Acceptance and liquidation certificate of the contract for the use of public waterworks products and services. In cases where the user is a village People's Committee, cooperative, water user organization, experimental station director, or farm director, a list of households and the area of land for each household must be attached.

Article 18. Handling Excess and Shortfall of Subsidy Funds for the Use of Public Waterworks Products and Services

1. Handling excess and shortfall of subsidy funds for organizations managing and operating waterworks facilities: Annually, after the settlement of subsidy funds for the use of public waterworks products and services has been approved by the competent authority, if the allocated funds exceed the subsidized amount according to the settlement, the excess must be refunded to the state budget; if the allocated funds are less than the subsidized amount according to the settlement, the difference will be supplemented from the state budget as prescribed.

2. Annually, the Department of Finance shall coordinate with the Department of Agriculture and Rural Development to compile and settle subsidy funds for the use of public waterworks products and services, and submit them to the Provincial People's Committee for approval, which then forwards the decision to the Ministry of Agriculture and Rural Development and the Ministry of Finance for examination and handling of excess and shortfall funds as prescribed.

Chapter IV

IMPLEMENTATION

Article 19. Reporting on Implementation

1. Under the Order Method:

a) Units receiving orders must report on the implementation of the ordered contracts every six months, and at the end of the year, they must prepare an acceptance and liquidation certificate of the ordered contract as the basis for settling subsidy funds for the use of public waterworks products and services;

b) Reports must be sent to the ordering agency and the finance agency: the Ministry of Agriculture and Rural Development and the Ministry of Finance for central government tasks; the Department of Finance and the Department of Agriculture and Rural Development for local government tasks, and must be submitted before July 31 of the planning year for the six-month report and before January 31 of the following year for the annual report.

2. Under the Assignment Method:

a) Every six months and at the end of the fiscal year, units assigned tasks must report on the implementation of the first half-year plan, the estimated full-year plan for the planning year, and the annual plan implementation report;

b) Reports on plan implementation must be sent to the assigning agency and the finance agency: the Ministry of Finance and the Ministry of Agriculture and Rural Development for central-level waterworks facility management and operation units; the Department of Finance, the Department of Agriculture and Rural Development, and the County People's Committee for local-level waterworks facility management and operation units, and must be submitted before July 31 of the planning year for the six-month report and before January 31 of the following year for the annual report.

3. Units benefiting from subsidy funds for the use of public waterworks products and services are responsible for preparing reports on implementation as prescribed. The legal representative of the benefiting unit must bear responsibility before the state and law for the accuracy and truthfulness of the report when implementing waterworks products and services.

Article 20. Responsibilities of Ministries and Sectors

1. The Ministry of Finance

a) Prescribe and announce the maximum price for public utility water conservancy products and services and the pricing framework for other water conservancy products and services in accordance with the law;

b) Compile the budget estimate and final account for state budget expenditure on supporting the use of public utility water conservancy products and services and other financial support provided to central-level water conservancy facility operating organizations and water conservancy facility operating organizations under provincial and centrally-administered city authorities, and report to the Government for submission to the National Assembly for decision in accordance with the State Budget Law;

c) Handle violations in accordance with the law on prices and other relevant laws.

2. Ministry of Agriculture and Rural Development

a) Draft and submit to the Government for issuance, or issue within its authority, normative legal documents on procedures, norms, standards, and economic and technical quotas in managing the operation of water conservancy facilities; direct water-saving irrigation measures;

b) Direct, guide, and inspect the implementation of economic and technical quotas; procedures and norms in managing and supplying water conservancy products and services; state budget support funds for water conservancy facility operating organizations;

c) Appraise pricing plans for water conservancy products and services of water conservancy facility operating organizations under central management; simultaneously compile pricing plans for water conservancy facility operating organizations under provincial People's Committee management. Aggregate data and files on pricing plans and send them to the Ministry of Finance as prescribed;

d) Determine specific prices for water conservancy products and services within its management authority as stipulated in Article 35 of the Water Conservancy Law and other relevant laws;

đ) Organize and restructure water conservancy facility operating organizations directly under it in accordance with the Water Conservancy Law and other relevant laws;

e) Direct, guide, and inspect the management and operation of water conservancy facility systems within its central management authority;

3. Provincial People's Committees

a) Implement specific hierarchical management of water conservancy facilities, decide on the scale of product and service delivery points for water conservancy facilities according to the guidance of the Ministry of Agriculture and Rural Development;

b) Direct specialized agencies and water conservancy facility operating organizations to establish economic and technical quotas in managing and operating water conservancy facilities within their local jurisdiction, and submit these to the provincial People's Committee for consideration and issuance;

c) Decide on bidding methods, ordering, assigning tasks to water conservancy facility operating organizations, approve budgets, allocate, manage, and settle accounts for operating funds of water conservancy facility operating organizations;

d) Appraise pricing plans for water conservancy products and services of water conservancy facility operating organizations under local management; be responsible for the data and documents reported in the pricing plan files and send them to the Ministry of Agriculture and Rural Development within the prescribed time limit;

đ) Determine specific prices for water conservancy products and services within its management authority as stipulated in Article 35 of the Water Conservancy Law and other relevant laws;

e) Annually prepare the budget for supporting funds for the use of public utility water conservancy products and services by water conservancy facility operating organizations and submit them to the Provincial People's Councils for consideration and decision; aggregate and report to the Ministry of Finance and the Ministry of Agriculture and Rural Development;

g) Supervise the implementation of revenue and expenditure, settlement of accounts for budgetary support funds in accordance with the State Budget Law;

h) Organize and restructure water conservancy facility operating organizations in accordance with the Water Conservancy Law and other relevant laws;

i) Conduct inspections and audits on the implementation of unit prices for public utility water conservancy products and services funded by the state budget; supervise support funds for the use of public utility water conservancy products and services and the use of the budget allocated to water conservancy facility operating organizations;

k) Handle violations in accordance with the law on prices and other relevant laws;

l) Approve reports on the final account of irrigated areas, irrigation and drainage measures, work contents, support funds for the use of public utility water conservancy products and services, and other financial support provided by water conservancy facility operating organizations;

m) Supervise the management and operation of water conservancy facility systems and implement water-saving measures within its local management authority;

4. Water Conservancy Facility Operating Organizations

a) Develop pricing plans for water conservancy products and services and be responsible for the rationality and validity of the data and documents reported in the pricing plan files of the organization and submit them to the competent authority within the prescribed time limit;

b) Provide timely and adequate water irrigation and drainage services for agricultural production, aquaculture, and salt-making while fully implementing water-saving policies;

c) Each year, water conservancy facility operating organizations shall prepare budgets and business plans and report to the competent authorities for approval as follows:

For water conservancy facility operating organizations under central management, report to the Ministry of Agriculture and Rural Development and the Ministry of Finance;

For water conservancy facility operating organizations under local management, report to the provincial People's Committee for reporting to the Ministry of Finance and the Ministry of Agriculture and Rural Development;

d) Comply with inspection and audit requirements when requested by authorized state agencies and implement other legal provisions;

5. Water Users

a) Direct and coordinate with households and individuals to implement water-saving irrigation policies;

b) Coordinate with households and individuals in determining the irrigated and drained land areas eligible for subsidized payment for public utility water conservancy products and services in accordance with regulations;

c) Aggregate, review, and verify with water conservancy facility operating organizations the irrigated and drained areas for settlement of support funds for the use of public utility water conservancy products and services.

Article 21. Effective Date

1. This Decree shall take effect from July 1, 2018.

2. For organizations and public service units entrusted by the State with the task of managing and operating waterworks projects, including Waterworks Project Management and Operation Centers, Waterworks Project Management and Operation Boards, and Waterworks Project Management and Operation Stations, they shall continue to operate as for other enterprises and grassroots water management organizations until the transition to appropriate forms of waterworks project operation organizations in accordance with the Water Law is implemented.

Article 22. Responsibility for enforcement

Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial and centrally-administered city People's Committees are responsible for implementing this Decree./.