Thông tư 22/2015/TT-BTC

CIRCULAR

PROVIDING FOR MANAGEMENT, PAYMENT, FINALIZATION OF INVESTMENT CAPITAL AND NON-BUSINESS CAPITAL WITH INVESTMENT NATURE IN THE AREAS OF POOR DISTRICTS AND DISTRICTS WITH HIGH RATE OF POOR HOUSEHOLDS

Pursuant to Decree No. 215/2013 / ND-CP dated 23/12/2013 of the Government stipulating the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 60/2003 / ND-CP dated 06/6/2003 of the Government detailing and guiding the implementation of the State Budget Law;

Pursuant to the Decree of the Government: No.52 / 1999 / ND-CP dated 08/7/1999 promulgating the Regulation on management of investment and construction; Decree No. 12/2000 / ND-CP dated 05/5/2000 amending the Regulation on management of investment and construction issued together with Decree No. 52/1999 / ND-CP; Decree No. 07/2003 / ND-CP dated 30/01/2003 amending and supplementing some articles of the Regulation on management of investment and construction issued together with Decree No. 52/1999 / ND-CP;

Pursuant to Decree No. 12/2009 / ND-CP dated 12/02/2009 of the Government on management of constructional investment projects; Decree No. 83/2009 / ND-CP dated 15/10/2009 of the Government on amending and supplementing some articles of Decree No. 12/2009 / ND-CP on management of constructional investment projects;

Pursuant to Decree No. 112/2009 / ND-CP dated 14/12/2009 of the Government on management of costs of constructional investment projects;

Pursuant to Decree No. 48/2010 / ND-CP dated 07/5/2010 of the Government on contracts in construction activities; Decree No. 207/2013 / ND-CP of the Government dated 11/12/2013 amending and supplementing some articles of Decree 48/2010 / ND-CP on contracts in construction activities;

Pursuant to Decree No. 63/2014 / ND-CP dated 26/6/2014 of the Government detailing the implementation of some articles of the Law on procurement and contractor selection;

Pursuant to Resolution No. 30a / 2008 / NQ-CP dated 27/12/2008 of the Government on the Program of rapid and sustainable poverty reduction support for 62 poor districts;

Implementing Decision No. 615 / QD-TTg dated 04/25/2011 of the Prime Minister on targeted support from central budget to 07 districts with high rates of poor households that are entitled to apply the mechanisms and policies on infrastructure investment under the provisions of Resolution No. 30a / 2008 / NQ-CP dated 27/12/2008 of the Government on the Program of rapid and sustainable poverty reduction support for 62 poor districts;

Implementing Decision No. 293 / QD-TTg dated 05/02/2013 on targeted support from central budget to 23 districts with high rates of poor households that are entitled to apply the mechanisms and policies on infrastructure investment under the provisions of Resolution No. 30a / 2008 / NQ-CP dated 27/12/2008 of the Government on the Program of rapid and sustainable poverty reduction support for 62 poor districts;

Implement Decision No. 1791 / QD-TTg dated 01/10/2013 of the Prime Minister on supplementing Nam Nhun district of Lai Chau province, Nam Po district of Dien Bien province in the list of poor districts that are entitled to mechanisms and support policies under Resolution No. 30a / 2008 / NQ-CP dated 27/12/2008 of the Government on Program of rapid and sustainable poverty reduction support for 62 poor districts;

At the request of the Director of Investment Department,

The Minister of Finance issues this Circular providing for management, payment, finalization of investment capital and non-business capital with investment nature in the areas of poor districts and districts with high rate of poor households.

Chapter I

GENERAL PROVISIONS

Article 1. Subjects of application and scope of regulation

1. This Circular applies to the social – economic infrastructure construction investment projects using the investment capital and non-business capital with investment nature of the state budget and other legal capital sources (referred to as project) in the areas of poor districts and districts with high rate of poor households under the Decisions of the Prime Minister to be entitled to apply the mechanisms and policies on infrastructure investment under the provisions in Resolution No. 30a/2008/NQ-CP dated 27/12/2008 of the Government on Program of rapid and sustainable poverty reduction support for poor districts (referred to as poor district)

2. The subjects of application are organizations and individuals related to the use, management, payment and finalization of projects in the areas of poor district.

Article 2. Capital source

The investment capital and non-business capital with investment nature of social – economic infrastructure construction investment projects of poor districts, including:

1. Capital from the state budget, including:

a) Capital from the central budget:

- The capital managed by the Ministries and central sectors;

- The annual targeted addition from the capital from central budget for local budget

- The targeted addition from the capital from central budget for local budget through the national target programs and the target programs.

b) Capital of local budget;

c) Official development assistance (ODA) and soft loans from foreign donors (soft loans), non-refundable aid from international organizations and non-governmental organizations;

2. Capital from Government bonds

3. Capital supported and contributed from domestic and foreign organizations and individuals and other legal financial sources.

Article 3. Principles of management, payment and finalization

1. The management, payment and finalization of investment capital of projects in the areas of poor districts must ensure proper purposes, subjects, thriftiness and effectivenss; comply with regulations on management of finance – investment – building of the State in accordance with the guiding contents in this Circular.

2. The management, use, payment and finalization of investment capital of capital sources: communal-level budget, capital from Government bonds, ODA and soft loans are done as follows:

- The projects investmented by communal-level budget and under the approval authority of Chairman of communal People’s Committee shall comply with Circular No. 28/2012/TT-BTC dated 24 February 2012 of the Ministry of Finance stipulating the management of investment capital of the budget of communes, wards, towns and other supplementing, amending or replacing documents (if any);

- The projects invested by the capital from Government bonds shall comply with the provisions in Circular No. 231/2012/TT-BTC dated 28 December 2012 of the Ministry of Finance providing for the management, payment and finalization of investment capital for investment projects using the capital from Government bonds and other supplementing, amending or replacing documents (if any);

- The projects using ODA and soft loans shall comply with the provisons in Circular No. 218/2013/TT-BTC dated 31/12/2013 of the Ministry of Finance providing for the financial management for programs and projects using ODA and foreign soft loans from donors and other supplementing, amending or replacing documents (if any);

For particular contents such as capital plan adjustment time, implementation time and capital payment time shall comply with the provisions in this Circular and other documents of the competent authorities.

Article 4. Capital payment and control organ

1. The State Treasuries shall control the capital payment under their assigned duties.

2. Other units and organs are assigned duties to control the payment of investment capital from state budget for some specific projects under the decision of the Prime Minister.

3. For projects using ODA and soft loans: comply with the provisions in Circular No. 218/2013/TT-BTC dated 31/12/2013 of the Ministry of Finance and other supplementing, amending or replacing documents (if any);

Chapter II

SPECIFIC PROVISIONS

Section 1. ALLOCATION AND ALLOCATION VERIFICATION AND PLAN ADJUSTMENT

Article 5. Investment capital plan

The annual planning and allocation of investment capital plan (including the integration of investment capital sources in the areas of poor districts) shall comply with the provisions in the Joint Circular No. 02/2014/TTLT-BKHDT-BTC dated 12/02/2014 of the inter-Ministry of Planning and Investment and Finance on guiding the integration of capital sources to implement the Program of rapid and sustainable poverty reduction support for poor districts and other supplementing, amending or replacing documents (if any), the current regulations and guidelines on annual estimate preparation of the Ministry of Finance. To implement the management and control of capital payment, the Ministries, sectors and localities shall allocate the capital plan to each project and ensure the following conditions and principles:

1. Conditions for project to be allocated capital plan

a) For projects allocated by the Prime Minister and the Ministry of Planning and Investment announcing the list and the annual investment capital from the central budget (including the targeted support capital to localities), capital from Government bonds, it is required to ensure all procedures for project investment; the newly-commenced projects and projects with adjustment of total investment the capital source of which must be assessed in accordance with current regulations.

b) For investment capital from local budget, it is required to ensure all prescribed procedures for project investment. The localities shall assess the capital sources before approving projects in accordance with current regulations.

2. Project code and capital plan

The Ministries, sectors and Peoples at all levels shall allocate the development investment capital for each project as per the code of investment project and economic sector (type, item) under the Annex 02 issued with Decision No. 33/2008/QD-BTC dated 02/06/2008 of the Minister of Finance on the System of state budget index and Circular No. 147/2013/TT-BTC dated 23/10/2013 of the Ministry of Finance stipulating the modification and supplementation of such System and other supplementing, amending or replacing documents (if any).

a) For projects managed by the Ministries and central sectors:

- Based on the medium-term development investment capital (if any) and the annual development capital and the annual development investment capital allocated, the Ministries and sectors shall allocate the annual quota of capital plan to the investors under their management that meet the prescribed conditions and ensure the compliance with the allocated capital; domestic and foreign capital structure and structure of economic sector while sending such quota to the Ministry of Planning and Investment, Ministry of Finance and State Treasury in accordance with the prescribed time for monitor and management.

- The State Treasury (Central) receiving the investment capital plan of the Ministries, central sectors with detailed allocation to each project shall transfer such plan (with details as per code, chapter, code of investment project and economic sector (type, item) of the Ministries and sectors to the State Treasury (local) as a basis for capital constrol and payment.

b) For projects managed by the local authorities:

- Based on the medium-term plan (if any) and the annual plan allocated, the People’s Committees at all levels shall prepare the investment capital allocation plan to be submitted to the People’s Council for decision. Based on the Resolution of the People’s Council, the People’s Committee shall allocate the investment capital plan to the investors under their management that meet the prescribed conditions and ensure the compliance with the allocated capital; domestic and foreign capital structure and structure of economic sector, total capital of each program, list and capital of project; comply with regulations on investment subjects and targeted use of each investment source (under the authority of local capital allocation) while sending such quota to the Ministry of Planning and Investment, Ministry of Finance and State Treasury in accordance with the prescribed time for monitor and management and capital control and payment.

- The district People’s Committee shall send the investment capital plan to the Department of Finance and the Finance – Planning Division and district State Treasury for monitor and capital control and payment. For districts, wards and communes without People’s Council, apply the provisions of Circular No. 63/2009/TT-BTC dated 27/3/2009 of the Ministry of Finance stipulating the estimate preparation and estimate implementation and budget finalization of district, ward and commune without People’s Council.

3. The content and allocation time of investment capital plan: right after receiving the annual investment capital plan for development of state budget (including the additional capital plan) allocated by the competent authorities under regulations, the Ministries, sectors and localities shall promptly allocate the capital plan to each project under the Form No. 01/PBKH issued with this Circular. The time for allocation of capital plan must consist with regulations of the competent authorities.

4. Verification of allocation of investment capital plan

a) For projects managed by the Ministries and central sectors:

The Ministry of Finance shall give its feedback on verification of allocation to the Ministries and sectors within 05 working after receiving the investment capital plan of Ministries and sectors, including the supplementation and modification plan (if any). Where there is project improperly allocated, the Ministry of Finance shall give its opinions to the State Treasury for stop of payment and if the payment has been made, the paid capital for such project must be recovered. The Ministries and sectors shall require the investors of projects improperly allocated capital to return the paid capital to the state budget and take responsibility for the consequences due to improper allocation.

b) For projects managed by the local authorities:

- For projects managed by the provincial authorities, during the course of participation with relevant units on the annual investment capital plan, including the supplementation and modification plan (including the central and local budget capital), the Department of Finance shall verify the investment capital allocation plan before the organs submit it to the provincial People’s Committee for decision and ensure the projects must have all investment procedures and satisfy the principles of capital allocation. Based on the decision on the investment capital plan allocated by the provincial People’s Committee, the State Treasury shall control the payment under regulation. Where any project has inadequate investment procedures, the provincial State Treasury shall stop the payment and notify the Department of Finance in order to request the prescribed handling from provincial People’s Committee.

- For projects managed by district authorities, the Finance – Planning Division shall verify the allocation of investment capital plan right before it is submitted to the district People’s Committee for decision and ensure such project have all investment procedures and satisfy the principles of capital allocation. Based on the decision on the investment capital plan allocated by the district People’s Committee, the State Treasury shall control the payment under regulation. Where any project has incomplete investment procedures, the provincial State Treasury shall stop the payment and notify the Finance – Planning Division while reporting the district People’s Committee for proper handling.

- During the time the Ministry of Finance gives its opinions about allocation of annual investment capital plan and supplementation in the year of projects supported with the capital from central budget. If detecting any project has incomplete investment procedures and is not included in the list of plan allocation or is improper subject or improper capital support from the central budget, the Ministry of Finance shall request the provincial People’s Committee and the State Treasury to stop the payment. If the payment has been made, the paid capital for such project must be recovered. The provincial People’s Committee shall require the investors of projects to return the paid capital to the state budget and take responsibility for the consequences due to improper allocation.

5. Documents for the organs to verify the allocation of investment capital plan include:

a) For projects prepared for investment:

- Decision on project investment policy approval from the competent authorities;

- Document of approved estimate of investment preparation expenditures.

b) For investment projects:

- Document of prescribed capital verification for newly-commenced projects and projects with adjustment of total investment.

- Decision on project investment from the competent authorities (or the technical – economic report for projects with only preparation for technical – economic report) and project adjustment decisions (if any).

6. Adjustment of investment capital plan.

a) Principles:

- The Ministries and central sectors and localities shall review the progress of implementation and investment targets of projects in the year to adjust the investment capital plan under their authority or submit such plan to the competent authorities to adjust the investment capital plan or transfer capital from the projects which cannot be implemented to the eligible projects with volume for payment.

- Before sending the investment investment capital plan of each project under their authority, the Ministries and central sectors and localities shall require the investor to stop the payment at the estimated time of adjustment and work with the State Treasury to confirm the capital of annual plan paid for the project and confirm the remaining capital due to failure of impelementation and ensure the plan of project after being adjusted shall not be lower than the capital which the State Treasury has paid under the Form No. 02/XNVTT issued with this Circular. The Ministries and central sectors and localities shall take responsibility for the reimbursed data and adjusted capital plan. The time limit for sending the investment investment capital plan is no later than the 30^th of April of the year succeeding the plan year.

b) The Ministries and central sectors and localities shall adjust the investment capital plan under regulations and send it to the financial organ at the same level and the State Treasury as a basis for payment. The time limit for adjustment of investment capital plan is no later than 31^st of May of the year succeeding the plan year. The verification and adjustment of allocation of investment capital shall comply with the provisions in Clause 4 of this Article.

The capital adjustment plan of projects must be within the scope of total plan capital annually allocated and within the scope of total medium-term plan (if any). The total adjusted capital not exceeding the target allocated by the Prime Minister for the central budget as per each sector, area and program and not exceeding the target allocated by the Chairman of provincial and district People’s Committee for the capital of local budget under the Form No. 03/DCKH issued with this Circular.

Section 2. ADVANCE, PAYMENT AND RECOVERY OF ADVANCE CAPITAL

Article 6. Advance, payment of investment capital and recovery of advanced capital

1. Account opening

The investor or the project management Board (referred to as investors) shall open their accounts at the State Treasury as stipulated in Article 8 of Circular No. 61/2014/TT-BTC dated 12/5/2014 of the Ministry of Finance on instructing the registration and use of account at the State Treasury in the conditions of application of Treasury and Budget management information System and other supplementing, amending or replacing documents (if any);

2. Payment documents.

To serve the management and control of payment of investment capital, the investor shall send the documents of project to the State Treasury where the payment account is opened. Such documents are the originals or copies and are sent only one time until the end of project investment including the case where the project uses many capital sources, except for supplementation and adjustment, including:

a) For investment preparation:

- Cost estimate for the approved investment preparation

- The written approval for the result of contractor selection as stipulated by Decree No. 63/2014/ND-CP dated 26/6/2014 of the Government detailing the implementation of some articles of the Law on procurement and contractor selection and other supplementing, amending or replacing documents (if any);

- Contract and contract annex (if any) between the investor and contractor;

- In case of contractor’s self-implementation: The documents include the cost estimate for approved investment preparation, assignment document or internal contract.

b) For investment implementation:

- The constructional investment project (or the technical – economic report for projects with only preparation for technical – economic report) with the investment decision of the competent authorities and project adjustment decisions (if any);

- The written approval of result of contract selection as stipulated in Decree No. 63/2014/ND-CP dated 26/6/2014 of the Government detailing the implementation of some articles of the Law on procurement and contractor selection and other supplementing, amending or replacing documents (if any);

- The contract and contract appendix (if any) between the investor and the contractor include the attached documents of contract as prescribed by law, except for technical documents;

- The estimate and estimate approval decision of the investor for each work, works item and works in case of contractor selection or self-implementation and work done not through contract;

- The written appraisal of capital source (applicable to projects under the local management).

c) In case of investor’s self-implementation:

- The constructional investment project (or the technical – economic report for projects with only preparation for technical – economic report) with the investment decision of the competent authorities and project adjustment decisions (if any);

- The estimate and estimate approval decision of the investor for each work, works item and works;

- The written permission of the competent authorities for self-implementation of project (in case of absence in the investment decision of the competent authorities);

- The written assignment of work or internal contract.

3. Capital advance.

a) Documents to request the capital advance: based on the documents specified in Clause 2 of this Article and the advanced capital specified under Point b, Clause 3 of this Article, the investor shall prepare documents to request the capital advance to be submitted to the State Treasury¸including:

- Request for payment of investment capital or advance of investment capital under the Form No. 04/GĐNTTVDT issued with this Circular;

- Money remittance voucher (under regulation of accounting document system of the Ministry of Finance)

- Contractor’s guarantee of advance shall comply with the provisions below and other supplementing, amending or replacing documents (if any);

+ For contracts signed from the effective date (01/02/2014) of Decree No. 207/2013/ND-CP dated 11/12/2013 of the Government on amending and supplementing some articles of Decree No. 48/2010/ND-CP dated 07/5/2010 of the Government on contract in building activities and the implementation under the Decree No. 207/2013/ND-CP dated 11/12/2013 of the Government and other supplementing, amending or replacing documents (if any);

For cases of self-implementation or implementation under the guidelines of the Ministry of Construction on contract advance guarantee for some particular cases;

+ All of the contracts which have been signed and or are under implementation before the effective date (01/02/2014) of Decree No. 207/2013/ND-CP dated 11/12/2013 of the Government shall not have to comply with this provision.

b) The advanced capital shall comply with the following provisions and other supplementing, amending or replacing documents (if any);

The total advanced capital of contracts done in the year is 30% maximally of the capital plan allocated in the year of project (including the adjustment plan); the total advaced capital shall not exceed the advanced value at the rate specified in the contract (or the approved estimate for types of work done not through contract). Where the project is allocated the capital plan but the advanced capital is not sufficient under contract, after have paid the finished volume and recovered all or a part of previous advanced capital, at the request of the investor, the State Treasury shall continue to advance the project.

The total balance of advanced capital not recovered is 30% of capital plan allocated in the year of project. Where the advanced capital not recovered is greater than 30% of the plan after adjustment, the investor shall coordinate with the State Treasury in implementation of recovery to ensure the balance of advanced capital under the above regulations

For work of site clearance, the advanced capital is as per request and need in the site clearance plan approved by the competent authorities but not exceed the annual capital plan already arranged in the site clearance plan.

c) The capital advance shall be done after the effect of contract; the grounds for investor’s advance request and the capital plan allocated in the year (including the adjusted plan) and the economic contract signed between the investor and the contractor. The State Treasury shall control and transfer the advanced capital to ensure no excess of advanced capital specified under Point b, Clause 3 of this Article;

d) Payment and recovery of advanced capital:

The advanced capital is paid from each time of payment of finished volume of contract, starting the payment from the first payment and full recovery upon payment of finished volume by 80% of contract value. The rate of payment of each time shall be agreed upon between the investor and the contractor and under the contract.

The value of contract advance guanrantee shall be deducted corresponding to the recovered advance throught each time of payment between the investor and contractor. The investor shall ensure and take responsibility for the value of advance guarantee corresponding to the remaining advance balance. The effective time of the contract advance guarantee must be extended until the investor recovers all of the advance.

- For compensation and assistance upon land recovery from the state:

+ For compensation and assistance: after having made payment to the beneficiary, the investor shall gather all vouchers and make the payment procedures and recover all advance within 30 working days after the payment to the beneficiary;

+ For other work: the advanced capital shall be recovered in each period of payment of finished volume and recovered all upon completion of compensation and assistance.

dd) The investor with the contractor shall calculate the reasonable advance, strictly manage and use the advanced capital with proper purpose, subjects and effectiveness and must recover the advance right at the first payment of finished volume at the rate which has been agreed upon by the investor and contractor in the contract and recover the advanced capital upon payment of finished volume up to 80% of contract value;

Where the advanced capital exceeds 6 months of time limit as specified in contract or the progress of site clearance under the site clearance plan approved by the competent authorities must be done with the volume which the contractor or the unit in charge of site clearance has not finished due to objective or subjective cause or after the capital advance has been made but the contractor or the unit in charge of site clearance has used it improperly, the investor shall coordinate with the State Treasury to identify the advance to be recovered and take responsibility for recovery and return the advanced capital to the state budget;

In case the investor has advanced the compensation and site clearance but not paid the beneficiary due to unforeseen reasons, the investor shall transfer all advance to the deposit account of the investor at the State Treasury for convenient control of payment and recovery of advance;

In case the plan year is over but the advanced capital has not been recovered all because the unpaid contract has reached the prescribed rate, the advanced capital shall continue to be recovered in the plan of next year without deduction from the investment capital payment plan of the next year.

e) The State shall allocate capital to the investor for advance in the plan year no later than the 31^st of December (and no later than 31^st of January of the next year in case of advance payment for site clearance). The investor may advance once or several times for one contract based on the need for advance payment but not exceeding the prescribed advanced capital specified above. Where the allocated capital plan has not sufficient advanced capital under the contract, the investor shall receive the additional advance in the plan of next year.

4. Payment of finished volume

a) For work to be done through building contract shall comply with the following provisions and other supplementing, amending or replacing documents (if any);

The payment of contract must be consistent with type of contract, contract price and other conditions in the contract. The number of payment, time limit for payment, time of payment, time limit for payment, documents of payment and payment conditions must be specified in the contract. The investor must comply with the conditions for applying types of price of contract as stipulated in Decree No. 48/2010/ND-CP dated 07/5/2010 of the Government on contract in building activities and Decree No. 207/2013/ND-CP dated 11/12/2013 of the Government on amending and supplementing some articles of Decree No. 48/2010/ND-CP dated 07/5/2010 of the Government on contract in building activities.

- For fixed-price contract: Payment is made on the percentage (%) of contract price or works price, works item or work volume price corresponding to time limit for payment specified in contract;

- For contract under fixed unit price: Payment is made on the basis of volume actually finished (including increased or reduced volume approved under the authority, if any) and accepted and unit price in contract.

- For contract under adjusted unit price: Payment is made on the basis of volume actually finished (including increased or reduced volume approved under the authority, if any) and accepted and unit price adjusted due to price slippage in accordance with the agreements of the contract;

- For contract over time:

+ The expenses for experts are determined on the basis of salary for these experts and other relevant expenses which the parties have agreed in the contract multiplied by the accepted actual working time (by month, week, day, hour);

+ Other expenses in addition to the remuneration for the experts shall be paid by the method specified in the contract;

- For contract combined with types of contract price: The payment is made corresponding to the types of contract mentioned above;

- For work volume generated out of contract:

The payment of generated volume (out of contract) without unit price in the contract shall comply with the additional agreements of contract which the parties have agreed before implementation and must be consistent with relevant regulations of law. In case of addition of generated work, the investor and the contract must sign the annex of contract under the following principles:

+ Where the generated work volume is greater than 20% of the corresponding work load specified in contract or the generated volume without unit price specified in contract, the generated volume shall be paid based on the agreement of the parties upon new unit price under the principles of agreement in contract on unit price for the generated volume;

+ Where the generated work volume is less than or equal to 20% of the corresponding work load specified in contract, apply the unit price in contract, including the unit price adjusted under the agreement of contract (if any) for payment;

+ For contract under fixed unit price and contract over time, when the price of fuel, materials and equipment with the application of measures to stabilize price by the state under the provisions of the Price Law has extraordinarily changed or when the State changes policy on tax, salary directly affecting the contract price. In this case, contract shall be paid on the the basis of adjustment of unit price upon permission from the investment decision making level and agreement of the parties in the contract.

+ For contract under the fixed unit price, the unit price is adjusted for work volume whose unit price shall be adjusted by the investor and the contractor due to price slippage at the time of contract signing after a certain period from the effective date of contract;

+ For fixed-price contract: in case of reasonable generation of work out of the signed contract (as the volume out of the scope of work to be done as designed for building contract; as the volume out of the consultation duty to be done for consultation contract). In this case, when adjusting the work volume without changing the investment objectives or not exceeding the approved total investment, the investor and the contractor shall calculate, negotiate and sign the contract annex; in case of exceeding the approved total investment, the person with investment decision making authority shall consider and decide it; in case of failure of negotiation, such generated work volume shall be formed a new bidding package and the selection of contractor to implement this bidding package shall comply with current regulations.

- Payment documents: When having the finished volume accepted under the time limit for payment and payment conditions in the contract, the investor shall prepare documents for payment to be sent to the State Treasury, including:

+ Request for investment capital or payment of advance of investment capital;

+ Valuation table of finished work volume for payment under the Form No. 05.a/BXDKLHT issued with this Circular and the Form No. 05.b/BXNKLDB for site clearance compensation volume.

+ When there is work volume generated out of contract, the investor shall send the valuation table of generated work volume (if any) out of the signed contract for payment with confirmation of representative of investor, representative of consulting party (if any) and representative of contractor under the Form No. 06/BXNKLPS issued with this Circular.

+ Money remittance voucher (under regulation of accounting document system of the Ministry of Finance)

b) For types of work done not through contract (such as self-implementation, some work of project management directly done by the investor), the payment is made based on the list of finished work volume (with signature and seal of investor) and approved estimate consistently with nature of each work. The payment documents include: list of finished work volume, approved estimate, request for investment capital or advance (if any) and money transmittance voucher.

For expenses of compensation, assistance and relocation, the payment documents include: certified list of done compensation and site clearance volume. The advance and payment are done as for projects or bidding packages of works construction. For expenses of site clearance compensation, the State Treasury shall, based on the approved estimate of expenses of site clearance compensation, transfer all payments as requested by the investor to the organization carrying out the site clearance compensation. The management and use of such expenses shall be done by the organization carrying out the site clearance compensation as stipulated in Circular No. 57/2010/TT-BTC dated 16/4/2010 of the Ministry of Finance stipulating the estimate preparation, use and finalization of expenditure for compensation, assistance and relocation upon the state’s land recovery and other supplementing, amending or replacing documents (if any);

c) For cases with acceptance re-inspection of result of project implementation, the result of acceptance re-inspection is the final ground for payment of work volume of project implementation.

5. Control of payment of State Treasury

a) Based on the investor’s payment documents, the State Treasury shall make payment to the investor based on the payment terms specified in contract, document of work assignment or internal contract (in case of investor’s self-implementation of project), number of payment, time limit for payment, time of payment, conditions for payment and value of each payment.

The investor is responsible for the accuracy and legality of finished volume, unit price and cost estimate of types of work, quality of work. The State Treasury does not take responsibility for these issues and shall make payment under contract based on the payment documents.

b) The State Treasury shall control the payment under the principle “first payment, control later” for each time of payment and “first control, payment later” for the last payment of contract. The State Treasury provides specific instructions on method of payment control in the State Treasury system to ensure favorable conditions for investor and contractor and consistence with state regulation.

c) Within 07 working days of case “first control, payment later” and 03 working days of case of advance payment and “first payment, control later” from the time of fully receiving documents of advance and payment from the investor. Based on the contract (or approved estimate for types of work done not through contract) and the amount of payment requested by the investor, the State Treasury shall control and allocate the payment capital to the project and recover the advanced capital under specified regulations.

d) The capital paid for each type of work, works item and works must not exceed the approved estimate or price of bidding package. The total capital paid for project must not exceed the approved total investment. The capital paid for project in the year (including the payment of advance and finished work volume) must not the capital plan of the entire year allocated to the project;

dd) The annual capital plan of project is only paid for the finished work volume which is accepted, the time limit for payment is specified in Clause 7 of this Article;

e) For some particularly important projects with required mechanism of Advance and payment of capital different from the above provisions, after having opinions from the competent authorities, the Ministry of Finance shall give specific written instruction;

6. The management, payment, recovery and finalization of advanced capital of estimated budget for the next year for projects are done as follows:

a) The advance of estimated budget for the next year shall comply with the provisions in Clause 3, Article 57 of the State Budget Law No. 01/2002/QH11 dated 16/12/2002 and Article 61 of Decree No. 60/2003/ND-CP dated 06/6/2003 of the Government detailing the implementation of State Budget Law and Circular No. 59/TT-BTC dated 23/6/2003 of the Ministry of Finance providing instructions on implementation of Decree No. 60/2003/ND-CP dated 06/6/2003 and other supplementing, amending or replacing documents (if any);

b) Based on the document of capital advance of the competent authorities, the Ministry of Finance shall notify the Ministries, sectors and localities for capital from central budget of the list, total advance, advanced capital, year of advance and recovery and also sends them to Department Finance and the State Treasury for management and payment to the project. The Ministries, sectors and localities shall make allocation in accordance with the list and allocated capital;

Where the Ministries, sectors and localities make improper allocation of the list and the advanced capital as announced by the Ministry of Finance, the State Treasury shall stop the payment and report to the Ministry of Finance for consideration and handling and to the provincial People’s Committee on the stop of payment (for projects under local management);

c) The time limit for payment is done as for the time limit for payment of investment capital in the advanced annual plan. Other cases shall be decided by the Prime Minister. When the time limit for payment is over, the State Treasury shall carry out the procedures for cancellation of unused advanced capital.

d) Capital recovery: The Ministries and localities must allocate the capital plan to the projects in the budget estimate for the next year to return the advanced capital. When inspecting the allocation of investment capital in the annual plan, for the central budget, the Ministry of Finance shall announce the recovery of advanced capital. The maximum of recovered capital is equal to advanced capital, except for cases of non-recovery as permitted by the Prime Minister; for capital from local budget and added capital with target from the higher level budget to the lower level budget. Where the People’s Committee at all levels do not allocate or insufficiently allocate the recovered capital under regulation, the local State Treasury shall notify the Department of Finance, the Finance-Planning Division for report to the People’s Committee at all levels for recovery of advanced capital;

dd) Capital finalization: The time limit for capital finalization is in accordance with that for capital allocation for recovery. Where the project the capital of which is recovered corresponding to a period of some years, the recovered capital of any annual plan shall be finalized in the budget year of that year and the capital paid but not yet recovered shall be transferred to the next year for finalization in accordance with the capital recovery plan.

7. Time limit for implementation and payment of investment capital

a) The time of implementation and payment of annual plan capital by the end of 30^th of June of the year succeeding the plan year and as decided by the Prime Minister in case of after the above time limit. When the time limit for payment is over, the State Treasury shall carry out the procedures for cancellation of unused advanced capital.

b) Extended time of implementation and capital payment:

- By the end of 30^th of June after the plan year, the capital plan allocated to projects which has not been used or used up shall be cancelled, except for cases of extension to the next year (if any) as permitted by the competent authorities;

- Consideration for transfer of extended capital of projects: After the end of prescribed time limit for annual capital payment (30^th of June of the next year), based on the reality of implementation and capital payment of projects, at the request of investor, the projects under the subjects (at the first dash of Point b, Clause 7 of this Article), the line agency shall aggregate and send a written request together with certification of the State Treasury where the project account is opened on the capital paid by the end of 30^th of June of the next year to the Ministry of Finance (for projects under the central budget) and the Chairman of provincial People’s Committee (for projects under the local budget) for consideration and settlement.

- Time for extension consideration:

+ A written request for extension of the line agency no later than 31^st of July annually specifying the name of project, annual capital plan, capital paid by 30^th of June of the next year, capital requested for extension of time for implementation and payment, extended time and reasons for extension;

+ Based on the written request of the line agency, the Ministry of Finance (for projects under the central budget) and the Chairman of provincial People’s Committee (for projects under the local budget) shall make decision on the list and time limit for permitted extension of investment projects;

+ The decision on list and and time limit for permitted extension of investment projects ends by 30^th of August annually;

By the end of 30^th August of the next year, if the cases having no written approval of the competent authorities for extension of plan implementation to the budget of next year for payment, the remaining capital shall be cancelled.

- Time limit for extended capital payment: no later than 31 of December of the year succeeding the plan year. Other cases shall be decided by the Prime Minister.

Section 3. FINALIZATION

Article 7. Finalization of investment capital

1. Finalization of annual investment capital

The finalization of annual investment capital shall comply with the guidelines of the Ministry of Finance (in Circular No. 210/2010/TT-BTC dated 20/12/2010 of the Ministry of Finance guiding the finalization of capital construction investment capital of the state budget as per the annual budget year and other supplementing, amending or replacing documents (if any);

2. Finalization of finished project

a) The finalization of finished project shall comply with the guidelines of the Ministry of Finance on finalization of finished project of the state capital (in Circular No. 19/2011/TT-BTC dated 14/02/2011 of the Ministry of Finance guiding the finalization of finished project of state budget) and other supplementing, amending or replacing documents (if any);

b) The receipt of documents and order of inspection and finalization of finished project shall comply with the provisions in the Procedure for inspection and finalization of finished project for projects using state budget issued with Circular No. 04/2014/QD-BTC dated 02/01/2014 of the Ministry of Finance and other supplementing, amending or replacing documents (if any);

Section 4. MANAGEMENT AND PAYMENT OF NON-BUSINESS CAPITAL WITH INVESTMENT NATURE

Article 8. Use of capital

The non-business capital with investment nature in the state budget estimate of non-business administrative organs and units is only used in case of investment, renovation, expansion of existing facilities (including the building of new works items in the existing facilities of non-business administrative organs and units). Only new investment projects are allocated the non-business capital and only investing in the existing projects and supplementing the missing items.

Article 9. Planning, allocation and inspection of capital allocation

The planning, allocation and inspection of capital allocation shall comply with the provisions of the State Budget Law and the guidelines of the Ministry of Finance for non-business capital.

Article 10. Advance and payment of non-business capital with investment nature

1. Documents of advance and payment:

- With projects having the total investment from 01 billion dong or more, the documents of advance and payment shall comply with the provisions as for projects invested by the development investment capital specified in Article 6 of this Circular (for project investment decisions or technical – economic report which are not subject to the approval by 31^st of October of the year preceding the plan year.

- With projects having the total investment of less than billion dong, the documents of advance and payment shall comply with the provisions as for non-business capital.

2. Advance and payment of capital:

- The advance and payment of capital of projects with a total investment from 01 billion dong or more shall be done as for projects invested by the investment capital.

- The advance and payment of capital projects with a total investment of less than 01 billion dong shall comply with regulations of the Ministry of Finance on management, allocation and payment of non-business capital.

Article 11. Regulation on report, finalization and inspection

The regulation on report and finalization of annual budget year and inspection shall comply with regulations as for non-business capital and other guiding documents of the Ministry of Finance. For the finalization of finished project which shall comply with regulations as for investment capital under the guiding Circular of the Ministry of Finance.

Section 5. MANAGEMENT AND PAYMENT OF CAPITAL FROM SUPPORT AND CONTRIBUTION OF FOREIGN AND DOMESTIC ORGANIZATIONS AND INDIVIDUALS

Article 12. Management of capital from support and contribution of foreign and domestic organizations and individuals (referred to as Donor)

The management of capital from support and contribution of donors shall comply with the provisions of the State Budget Law and other provisions in this Circular.

1. In case of contribution with specific address:

a) Where the Donors make contribution in cash to build a works: The donors shall transfer money directly to the account of district People’s Committee opened at district State Treasury. The district People’s Committee shall inform the investor of project. The management, payment and finalization of contributed capital from the Donors shall comply with the regulations as for state budget capital invested for social-economic infrastructure of poor districts (unless otherwise required by the Donors).

b) Where the Donors contribute in kind (materials, equipment, labor day) to make a building: the investor, donor, contractor (if any) and relevant organs of district (the Finance-Planning Division, building management organs) shall hold the acceptance and valuation of the materials, equipment, labor day in accordance with the norm and unit price of the State for handover to investor to put them into use. The investor shall report to the Finance-Planning Division (for works managed by the district level) or communal People’s Committee (for works managed by communal level) for record of revenue and expenditure under the prescribed regulation.

c) Where the Donors carry out the building by themselves and make contribution with a finished building: the management of constructional investment capital shall be decided by the Donors. After the building is finished, the Donors and the unit assigned to manage and use the building, the contractor (if any) and relevant organs of district (the Finance-Planning Division, building management organs) shall hold the acceptance and valuation of the building in accordance with the norm and unit price of the State for handover to investor to put it into use.

2. In case of common contribution to the Program of rapid and sustainable poverty reduction support of district without specific address:

a) For contribution in cash: The Donors shall transfer it money directly to the account of district People’s Committee opened at district State Treasury. The district People’s Committee shall distribute and use uniformly within locality under the approved plan and project. The management, payment and finalization of capital contributed by donors shall comply with regulations as for state budget capital invested for social-economic infrastructure of poor districts (unless otherwise required by the Donors).

b) For contribution in kind: The district People’s Committee shall receive and manage all contributions in kind from the Donors; hold the acceptance and valuation in accordance with the norm and unit price of the State; distribute and use uniformly within locality under the approved plan and project.

3. After receiving the contribution from the Donors, the district People’s Committee shall aggregate into the result of implementation of Program and make a report to provincial People’s Committee.

Section 6. REGULATION ON REPORT AND INSPECTION

Article 13. Regulation on report and inspection

1. Report:

a) For investors, Ministries and provincial People’s Committees: shall comply with the provisions of Regulation No. 52/2007/QD-TTg dated 16/4/2007 of the Prime Minister on Regulation on report on reality of implementation of state investment capital plan, Circular No. 05/2007/TT-BKH dated 09/8/2007 of the Ministry of Planning and Investment on issue of reporting forms and instructions on implementation of Regulation No. 52/2007/QD-TTg dated 16/4/2007 and other supplementing, amending or replacing documents (if any);

b) For Department of Service and State Treasury:

- Comply with regulation on investment capital report of projects as stipulated by the Ministry of Finance;

- Upon the end of plan year, the State Treasury shall aggregate data of investment capital payment to report to the financial organs at the same level under regulations on finalization of state budget and confirm the payment in the year. Cumulate the payment from commencement to the end of state budget year for each project formulated by the investor at 02 points of time: by the end of 31^st of January of the next year and by the end of 30^th of June of the next year.

2. Inspection:

a) The Ministries, provincial People’s Committees, financial organs and State Treasury shall periodically or irregularly inspect the investors and contractors involved in projects concerning the reality of use of advanced capital and capital paid for finished volume and compliance with policies and regulations on finance and development investment of the State.

b) The Ministries, provincial, district and communal People’s Committees shall carry our their inspection within their scope of management;

c) The financial organs at all levels shall periodically or irregularly inspect the State Treasury on compliance with regulation on payment of investment capital.

Section 7. RESPONSIBILITY AND POWER OF RELEVANT ORGANS

Article 14. Responsibility and power of relevant organs

1. For investors

a) Perform the assigned functions and duties under regulation, receive, manage and use capital with proper purposes and subjects, thriftiness and effectiveness; comply with regulations of law on investment finance management regulation.

Take responsibility for the accuracy and legality of work volume done and comply with the norm, unit price and estimate of types of work approved by the competent authorities; the quality of works and value for payment; ensure the accuracy, honesty and legality of data and document in dossiers provided for the State Treasury and other state functional organs;

b) When having sufficient work volume eligible for payment under contract, conduct the timely acceptance and prepare all payment documents and request the payment to contractor at the time specified in the contract;

c) Based on the current regulations of documents guiding the insurance business Law and Construction Law, the investor shall buy insurance for investment projects;

d) Make timely and complete reports to the investment decision making organs and other relevant state organs; fully provide dossier and documents and prescribed reality for the State Treasury and the financial organs for capital management and payment; be inspected by the financial organs, State Treasury and investment decision making organs on the use of investment capital and comply with policies and regulations on finance and development investment of the State;

dd) Regularly inspect the reality of implementation of advanced capital of contractors; carry out the inspection before, during and after the advance of capital to the contractor and ensure the recovery of advanced capital properly.

e) Perform the accounting under the regulation on accounting of investor unit and finalization of investment capital under current regulations; record the non-business capital under the regulation on accounting of non-business administrative units and finalization of capital with investment nature under regulations. Upon the end of plan year, prepare the table of comparison of investment capital payment data to be sent to the State Treasury where the investors make their transactions for confirmation at 02 points of time: by the end of 31^st of January of the next year and by the end of 30^th of June of the next year under the Form No. 07/DCSLTT issued with this Circular.

g) Require the capital payment upon eligibility and require the State Treasury to answer and explain the unsatisfactory contents in capital payment.

2. State Treasuries

a) Control and make timely payment of capital for projects upon prescribed eligibility and at proper time.

b) Comply with the procedures for payment of investment capital and non-business capital with investment nature as guided by the State Treasury; hold inspections and pay capital under professional procedures and State regulations;

c) Send the written opinions to investors concerning the reduced payment or payment refusal; answer problems related to the capital payment of the investors;

d) The State Treasury only control the payment based on the documents provided by the investors and under the prescribed payment principles and shall not take responsibility for the accuracy of work volume, norm, unit price and quality of works;

dd) Require the investor to provide dossier, document and relevant information for control of capital payment;

e) Regularly urge the investors and project management Board to properly comply with regulation on advance and recovery of advanced capital; coordinate with investors to inspect the advanced capital for recovery of unused or improperly used advances;

f) Concerning the administrative handling, the State Treasury shall comply with the provisions in Circular No. 54/2014/TT-BTC dated 24/4/2014 of the Ministry of Finance detailing and guiding the implementation of administrative handling in the field of State Treasury under the provisions in Decree No. 192/2013/ND-CP dated 21/11/2013 of the Government and other supplementing, amending or replacing documents (if any);

g) Comply with regulation on information, report and finalization of use of investment capital under current regulations.

h) Upon the end of plan year, confirm the payment in the year and cumulate the payment from commencement to the end of state budget year for each project formulated by the investor at 02 points of time: by the end of 31^st of January of the next year and by the end of 30^th of June of the next year with the contents under the Form No. 07/DCSLTT issued with this Circular or confirm the paid capital as required

i) Have no right to participate in the acceptance Board of works or project;

k) Take responsibility before the Minister of Finance and the law for receiving and paying the investment capital and non-business capital with investment nature under the state budget capital.

3. For Ministries, communal, district and provincial People’s Committees

a) Hướng dẫn, kiểm tra, đôn đốc các chủ đầu tư thuộc phạm vi quản lý thực hiện kế hoạch đầu tư, tiếp nhận và sử dụng vốn đầu tư đúng mục đích, đúng chế độ Nhà nước;

Instruct, inspect and urge the investors under their management to carry out the investment plan, receive and use the investment capital with proper purposes and state regulations;

b) Take responsibility before law for their decisions within their assigned authority.

4. Departments of Planning and Investment

Coordinate with Department of Finance and relevant organs and based on the functions, duties and current regulations to estimate the allocation plan of investment capital under the local management in order to submit it to the provincial People’s Committee for approval.

5. Departments of Finance

a) Coordinate with Department of Planning and Investment and relevant organs to inspect the allocation of investment capital, adjust the investment capital plan before submission to the provincial People’s Committee to decide the allocation of capital plan and give advice and help the provincial People’s Committee in directing and operating the investors in implementation of allocated plan.

b) Coordinate with the functional organs in instructing and inspecting the investors, State Treasuries and contractors carrying out the projects on the compliance with regulations and policies on finance and development investment, reality of management and use of investment capital, payment of investment capital to have solutions to handling of breaching cases; request the competent authorities to decide the recovery of items and contents of improper expenditure.

c) Coordinate with relevant organs to inspect the finalization of projects under the local management to be submitted to the provincial People’s Committee for approval;

d) Comply with the prescribed reporting regulations;

dd) Have the right to require the State Treasury and investor to supply documents and information necessary for state management on finance and development investment, including documents related to the management of payment and finalization of investment capital.

6. Financial – Planning Divisions

a) Give advice to district People’s Committee in allocation of plan and adjustment of investment capital plan under the district management; assess projects and inspect the finalization of projects managed by district level to be submitted to the district People’s Committee for approval and aggregate reports on reality of implementation of prescribed annual capital plan.

b) Have the right to require the district State Treasury to supply necessary documents and information specified under Point dd, Clause 5 of this Article;

c) Have the right to inspect the investors, district State Treasury and contractors carrying out the projects on the compliance with regulations and policies on finance and development investment, reality of management and use of investment capital, payment of investment capital to have solutions to handling of breaching cases; request the competent authorities to decide the recovery of items and contents of improper expenditure.

Chapter III

IMPLEMENTATION PROVISION

Article 15. Effect

1. This Circular takes effect from 29/3/2015. This Circular replaces the invalidated Circular No. 46/2010/TT-BTC dated 08/4/2010 of the Ministry of Finance stipulating the management, payment, finalization of investment capital for constructional projects of social-economic infrastructure for poor districts in implementing the Resolution No. 30a/2008/NQ-CP dated 27/12/2008 of the Government on Program of rapid and sustainable poverty reduction support for poor district.

2. Any difficulty arising during the implementation of this Circular should be promptly reported to the Ministry of Finance for adjustment and addition accordingly ./.