CIRCULAR

GUIDANCE ON BIDDING, PLACING ORDERS FOR PRODUCTION AND SUPPLY OF PUBLIC PRODUCTS AND SERVICES FOR MANAGEMENT AND MAINTENANCE OF NATIONAL INLAND WATERWAYS BY STATE BUDGET

Pursuant to the Law on Inland Waterway Navigation dated June 15, 2004;

Pursuant to the Law on State Budget dated December 16, 2002;

Pursuant to the Law on Bidding dated November 26, 2013;

Pursuant to the Government’s Decree No. 51/2005/NĐ-CP dated April 11, 2005 regulating financial sources, management and use of financial sources for the management and maintenance of inland waterways;

Pursuant to the Government’s Decree No. 60/2003/NĐ-CP dated June 06, 2003 providing instructions on the implementation of the Law on State Budget;

Pursuant to the Government’s Decree No. 130/2013/NĐ-CP dated October 16, 2013 on production and supply of public products and services;

Pursuant to the Government’s Decree No. 177/2013/NĐ-CP dated November 14, 2013 providing instructions on the implementation of a number of articles of the Law on Pricing;

Pursuant to the Government’s Decree No. 63/2014/NĐ-CP dated June 26, 2014 detailing the implementation of a number of articles of the Law on Bidding;

Pursuant to the Government’s Decree No. 107/2012/NĐ-CP dated December 20, 2012 defining the functions, tasks, entitlements and organizational structure of the Ministry of Transport;

At the request of the Director of the Financial Department and Director General of Vietnam Inland Waterway Administration,

The Minister of Transport promulgates the Circular providing guidance on bidding, placing orders for production and supply of public products and services in the management and maintenance of national inland waterways by state budget;

Chapter I

GENERAL PROVISIONS

Article 1. Governing scope

This Circular provides guidance on mechanism of bidding, placing orders for production and supply of public products and services for the management and maintenance of national inland waterways by state budget.

Article 2. Regulated entities

This Circular applies to organizations, individuals related to bidding and placing orders for production and supply of public products and services in the management and maintenance of national inland waterways by state budget.

Article 3. Public products and services for management and maintenance of inland waterways

1. Public products and services for management and maintenance of inland waterways include:

a) Investigate, monitor and follow up notifications about navigable channels;

b) Organize traffic, inspect the protection of the works of inland waterway infrastructure;

c) Manage, install and adjust inland waterway signals onshore, on water; follow up predictors, hydrography and count of vehicles;

d) Carry out dredging and ensure technical standards of navigable channels are in compliance with announced inland waterway technical standards;

dd) Carry out regular repair and maintenance of signals, vehicles, equipment and works on inland waterway routes currently in operation;

2. Public products and services for the repair work of inland waterways (regular and irregular repair work), include:

a) Dredge, correct and clear obstacles in navigable channels and channel protection corridors;

b) Carry out major repair work for signals, vehicles, equipment, embankments, flow correcting works, architectural objects, and station houses serving the management of inland waterways;

c) Supplement and replace signals, vehicles and equipment on a regular basis;

d) Carry out unexpected repair work for inland waterway works for prevention, fighting and remedy of consequences of floods, storms;

Article 4. Method of supplying public products and services for management and maintenance of inland waterways

1. For regular tasks of management and maintenance of inland waterways, apply bidding or order placement if conditions for bidding are not met.

2. For repair work of inland waterway works (regular or irregular repair works):

a) Apply bidding unless otherwise as regulated in Points b and c of this Clause;

b) Apply order placement if conditions for bidding are not met with respect to public products and services related to installation and procurement of goods valued more than one VND billion; public products, services related to consultancy valued no more than VND 500 million;

c) For unexpected repair works, remedial works for consequences of storms, floods, natural disasters, apply order placement in accordance with Articles 20 and 21 of the Minister of Transport’s Circular No. 37/2010/TT-BGTVT dated December 01, 2010 regulating prevention, fighting and remedy of consequences of floods, storms; coping with natural disasters and rescue on inland waterways.

3. Director General of Vietnam Inland Waterway Administration shall rely on the Government’s Decree No. 130/2013/NĐ-CP dated October 16, 2013, this Circular, peculiarities of management and maintenance of inland waterways and actual circumstances to decide on method for each specific product and service and take responsibility for his/her decision.

Chapter II

BIDDING FOR PRODUCTION AND SUPPLY OF PUBLIC PRODUCTS, SERVICES FOR MANAGEMENT AND MAINTENANCE OF NATIONAL INLAND WATERWAYS

Article 5. Organize bidding for production and supply of public products and services for management and maintenance of inland waterways

1. Based on budget estimates allocated by the Ministry of Transport, Vietnam Inland Waterway Administration shall organize bidding to select an organization that carries out production and supply of public products and services for the management and maintenance of inland waterways as prescribed in Chapter II of the Government’s Decree No. 130/2013/NĐ-CP dated October 16, 2013. Organization of bidding for production and supply of public products and services in the management and maintenance of national inland waterways shall be carried out when the following conditions are met:

a) Approved bidding plan;

b) Approved bidding documents;

c) Bidding information published according to the Law on Bidding;

d) Approved content and list of public products and services, and prices: For public products and services for management and maintenance of inland waterways, the approved price plan shall be required; for public products and services related to installation, the approved technical design and price plan shall be required; for public products and services related to consultancy, the approved task outlines and price plan shall be required; for public products and services related to procurement of goods, the approved content, list of goods and price plan shall be required.

2. Division of bid packages of the management and maintenance of inland waterways must ensure conformity with characteristics and scale of navigable channels. The formulation, assessment and approval for bidding plan, bidding documents, selection of bidders and other bidding activities shall be instructed in the Government’s Decree No. 130/2013/NĐ-CP dated October 16, 2013 and relevant regulations.

3. Price of bid packages for public products and services in the management and maintenance of inland waterways shall be formulated and assessed by the Branch of Inland Waterways in the area or Project Management Board affiliated to Vietnam Inland Waterways Administration or the Services of Transport with respect to national inland waterways empowered by the Ministry of Transport to localities for management and maintenance (hereinafter referred to as the Services of Transport); and approved by Vietnam Inland Waterways Administration.

4. Bidders of the packages for production and supply of public products and services must satisfy conditions as prescribed by the Law on Bidding. Bidding manners are prescribed in the Government’s Decree No. 130/2013/NĐ-CP dated October 16, 2013.

Article 6. Responsibilities of agencies and units for the organization of bidding for production and supply of public products and services in the management and maintenance of national inland waterways

1. Vietnam Inland Waterway Administration shall assume the responsibilities of competent persons as prescribed by the Law on Bidding.

2. Branch of Inland Waterways in the area or Project Management Board affiliated to Vietnam Inland Waterways Administration or the Services of Transport shall be responsible for formulating, assessing and making submission of the bidding plan to Vietnam Inland Waterway Administration for approval; assuming the responsibilities of the Investor and soliciting entity according to the Law on Bidding.

3. Sequence, procedures and other issues concerning formulation, assessment and approval for the bidding plan; procedures for selection of bidders; negotiation, completion and signing of contracts, and other relevant issues shall be instructed in the Government's Decree No. 130/2013/NĐ-CP dated October 16, 2013, the Law on Bidding and provisions set out hereof.

Article 7. Inspection, acceptance, payment and final settlement of public products, services with bidding method applied

Based on the approved selection of bidder, Branch of Inland Waterways in the area or Project Management Board affiliated to Vietnam Inland Waterways Administration or the Services of Transport shall carry out signing the contract, organize monitoring, inspection, acceptance and making payment to contractors as prescribed; perform and submit annual final settlements to Vietnam Inland Waterway Administration for examination and approval as prescribed.

Chapter III

PLACING ORDERS FOR PRODUCTION AND SUPPLY OF PUBLIC PRODUCTS, SERVICES FOR MANAGEMENT AND MAINTENANCE OF NATIONAL INLAND WATERWAYS

Article 8. Organize placing orders for production and supply of public products and services for management and maintenance of inland waterways

1. Based on budget estimates allocated by the Ministry of Transport and the approved prices of public products and services, Branch of Inland Waterway or the Services of Transport shall sign the order placement contract for production and supply of public products and services for the management and maintenance of inland waterways as prescribed in Chapter III of the Government’s Decree No. 130/2013/NĐ-CP dated October 16, 2013. The contract includes some following details:

a) Names of public products and services;

b) Number, quantity;

c) Quality and specifications;

d) Price, unit price;

dd) Subsidize (if any);

e) Number and quantity of public products and services subsidized;

g) Contract value;

h) Completion time;

i) Delivery: time, location and method;

k) Method of acceptance and payment;

l) Responsibilities and obligations of buyer (agencies placing orders) and supplier (organizations manufacturing and supplying public products and services);

m) Responsibilities of parties for breach of the contract and handling procedures;

The parties may carry out negotiation on making some supplements to the contract without going against regulations and changing the approved prices of public products and services for the management and maintenance of inland waterways.

2. Prices of public products and services for the management and maintenance of inland waterways are determined by manner of order placement and on the basis of applicable regulations; formulated by the supplier; assessed by Branch of Inland Waterways or the Services of Transport; approved by Vietnam Inland Waterway Administration.

3. The supplier must satisfy the following conditions:

a) Appropriate business activities, financial capability, technical level, production technologies, management level and workmanship of workers meeting requirements of the order-placement contract.

b) Have orders made by Branch of Inland Waterway in the area or the Services of Transport for production and supply public products and services;

Article 9. Adjustments to order-placement contract

1. Order-placement contract for production and supply of public products and services in the management and maintenance of national inland waterways shall be adjusted in the following cases:

a) Economic and technical norms, price and unit price of public products and services are subject to adjustment by the State;

b) Mechanism and policies on salaries, prices of raw materials are subject to changes by the State.

c) Force majeure events that affect production and supply of public products and services;

2. Branch of Inland Waterway in the area or the Services of Transport shall make adjustments to the order-placement contract upon written consent of Vietnam Inland Waterway Administration; Approval for adjustments to the contract must be in compliance with provisions set out in Clause 1 of this Article and within annual budget estimates.

Article 10. Inspection, acceptance, payment and final settlement of public products, services by order placement

Branch of Inland Waterway or the Services of Transport that sign the order placement contract shall carry out inspection, acceptance, payment and final settlement for production and supply of public products and services for the management and maintenance of inland waterways according to sequence, procedures as prescribed; perform and submit annual budget settlements to Vietnam Inland Waterway Administration for examination and approval as prescribed.

Chapter IV

IMPLEMENTATION

Article 11. Effect

1. This Circular takes effect since January 01, 2015.

2. Previous provisions in opposition to this Circular shall be annulled.

Article 12. Implementation

1. Chief of the Ministry Office, Chief Inspector, director generals of Vietnam Inland Waterway Administration, director of the Services of Transport, heads of relevant units, organizations and individuals shall be responsible for executing this Circular.

2. The Department of Finance shall be responsible for inspecting the execution of this Circular.

3. Difficulties that arise during the implementation of this Circular should be reported (by agencies, units) to the Ministry of Transport for consideration and handling./.