Thông tư 69/2012/TT-BTC

CIRCULAR

GUIDING THE MANAGEMENT AND USE OF THE MONEY FROM THE NON-REFUNDABLE AID OF THE JAPANESE GOVERNMENT'S FOR THE FOOD SECURITY PROJECT FOR UNDERPRIVILEGED FARMERS (2KR PROJECT)

Pursuant to the Diplomatic Note signed on October 29, 2009 between the Vietnamese Government and the Japanese Government, and the Aid Agreement signed on October 29, 2009, between the Vietnamese Government and the Japan International Cooperation Agency on the non­refundable aid of Japanese Government's for the Food Security Project for Underprivileged Farmers (2KR project);

In furtherance of the Government Office's Official Letter No. 7844/VPCP-QHQT on November 14, 2008, on the mechanism for receiving the Japanese Government's aid for the 2KR project, and the Prime Minister's Document No. 1642/TTg-QHQT on September 15, 2009, on the Diplomatic Note and Agreement on the Japanese Government's aid for underprivileged farmers;

The Ministry of Finance guides the management and use of the money from the Japanese Government's non-refundable aid for the 2KR project as follows:

Part I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular guides the management and use of the money from the sale of aiding goods belonging to the Japanese Government's non­refundable aid for the 2KR project.

Article 2. Aid fund accounts and service banks

The money from the sale of aiding goods must be transferred to a separate account (aid fund account) at a bank (service bank) and used in accordance with the Agreement between the Vietnamese Government and the Japanese Government for development investment projects.

Article 3. Selection of constructions and projects

On the basis of the project registration of localities (project owners) and the use purpose of the aid agreed by the both governments, the Ministry of Planning and Investment shall cooperate with the Ministry of Finance, the Ministry of Agriculture and Rural Development and related agencies in agreeing with the Japanese Government's representative on the selection of specific constructions and projects for which the money from the aid is used, and officially notify the Japanese party for implementing in cooperation.

Article 4. Payment

The Ministry of Finance shall transfer money to aid-funded projects via the State Treasury system. State treasuries in localities having projects funded by the 2KR project aid pay fundamental construction investment capital to the funded projects under current provisions on payment of fundamental construction investment capital from the State budget.

Article 5. Responsibility of project owners

Project owners shall estimate, submit for approval, manage, use, report and finalize their project investment capital under current provisions on fundamental construction investment, and use the capital in accordance with the projects approved.

Part II

SPECIFIC PROVISIONS

Article 6. Making project list

Based on the agreement stated in the Diplomatic Note between the two governments and related agreements, the Ministry of Planning and Investment shall cooperate with the Ministry of Agriculture and Rural Development, the Ministry of Finance and the Japanese Government's representative in selecting projects eligible for using the money from the sale of aiding goods (below referred to as the list of aid-funded projects). The total amount of money allocated to the projects must not exceed the total aid.

Article 7. Approval of projects

1. Projects on the list of aid-funded projects must be approved under current provisions on the management of fundamental construction investment of the Government. In case the total investment capital necessary for a project is larger than the aiding capital allocated, the lacking amount shall be funded by the local budget or other sources mobilized by the locality, and be notified to the State treasury by the provincial People's Committee for capital payment of the project.

2. After the project is approved, the project owner shall send the following documents to the Ministry of Finance (the Department of External Finance and Debt Management):

- The Official dispatch stating the approved contents of the project, the total investment of the project specifying the aided capital and corresponding domestic capital, and the project schedule;

-The original of the Decision on the approval of the project from competent authorities.

Article 8. Selection of contractors and suppliers, and contract signing

The selection of contractors and suppliers and the signing of contracts for project implementation must comply with the Vietnamese Government's regulations on fundamental construction investment and bidding.

Article 9. Capital payment control

1. Opening accounts for receiving aiding capital and transferring the money from the sale of aiding goods to these accounts

a. The Ministry of Finance (the Department of External Finance and Debt Management) shall send the list of aid-funded projects made by the Ministry of Planning and Investment to relevant State treasuries and provincial Finance Services. The project owner shall open an account for receiving aiding capital at the State treasury in the locality that has the project;

b. After opening an account for receiving aiding capital, the project owner shall send a written request for the first capital transfer to the Ministry of Finance (the Department of External Finance and Debt Management). Based on the project owner's request, the Ministry of Finance shall send to the service bank a written request for the transfer of 50% of the total aiding capital allocated to the project from the aid fund account to the account for receiving aiding capital opened at a local State Treasury;

c. After 80% - 90% of the first capital amount transferred is properly used in accordance with the provisions on the payment of fundamental construction capital, the project owner shall send to the Ministry of Finance (the Department of External Finance and Debt Management) a written request for the second transfer equal to 50% of the total aiding capital allocated to the project, enclosed with the original certification of expense control from the local State treasury on the capital transferred. Based on the project owner's written request for money transfer, the Ministry of Finance will send to the service bank a written request for transferring money from the aid fund account to the account for receiving aiding capital opened at the State treasury in the locality that has the project;

d. The written requests for money transfer shall be made under the form enclosed in the Annex.

2. Controlling the payment of capital the account receiving aiding capital

Capital advance, withdrawal of capital advance and capital payment for finished work volumes of aid-funded projects must comply with relevant provisions of the Finance Ministry's Circular No. 86/2011/TT-BTC of June 17,2011, on the management and payment of the  investment capital and non-business investment capital belonging to the State budget.

Article 10. Aiding capital receipts and expenses records

After the latter capital is used up, state treasuries in provinces that have the projects shall close accounts for receiving aiding capital and notify the Ministry of Finance (the Department of Debt Management and External Finance) in writing.

Based on notification from provincial Sate treasuries of the complete payment of all capital in aid capital-receiving accounts and the service bank's papers on transferring money from aid fund accounts into aid capital-receiving accounts opened at state treasuries in provinces in which projects are implemented, the Ministry of Finance (the Department of Debt Management and External Finance) shall make state budget revenue-recording orders (enclosed with spending orders) and send them to state treasuries for accounting the additional expenditures of local budgets.

Article 11. Finalization

Annually, project owners and their superior agencies shall make reports on the finalization in accordance with the Finance Ministry's Circular No. 210/2010/TT-BTC on October 20, 2010, on the finalization of fundamental construction capital belonging to the state budget  every fiscal year. The finalization of investment capital  of finished project must comply with the Finance Ministry's Circular No. 19/2011/ TT-BTC of February 14, 2011, on the finalization of finished projects funded from the State capital.

Article 12. Reporting and examination

After the project is finished, its owner must send the repot on the completion of the project to the Ministry of Planning and Investment and the Ministry of Finance for summarizing and sending reports to the Vietnamese Government and Japanese Governments.

If necessary, the Ministry of Planning and Investment may cooperate with the Ministry of Finance in inspecting the progress and efficiency of projects funded by the Japanese Government's aiding capital.

Part III

ORGANIZATION OF IMPLEMENTATION

This Circular takes effect on June 15, 2012.

The agencies and units are recommended to send feedbacks on any problems arising during the course of implementation to the Ministry of Finance for consideration, amendment and supplement./.