DECREE

PROVIDING CERTAIN PARTICULAR POLICIES FOR INVESTMENT, FINANCE, BUDGET AND DELEGATION OF POWERS TAILORED FOR CAN THO CITY

Pursuant to the Law on government organization dated June 19, 2015;

Pursuant to the Law on organization of local governments dated June 19, 2015;

Pursuant to the Law on state budget dated June 25, 2015;

Pursuant to the Law on public debt management dated November 23, 2017;

Pursuant to the Law on construction dated June 18, 2014;

Pursuant to the Law on housing dated November 25, 2014;

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Pursuant to the Law on urban planning dated June 29, 2009;

Pursuant to the Law on public investment dated June 18, 2014;

At the request of the Minister of Finance;

The Government promulgates a Decree providing particular policies for investment, finance, budget and delegation of powers tailored for Can Tho city.

Article 1. Scope and regulated entities

1. This Decree deals with particular policies for investment, finance, budget and delegation of powers tailored for Can Tho city (hereinafter referred to as “the city”).

2. This Decree applies to:

a) Regulatory authorities, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations and public service providers that use Can Tho city’s locally-controlled state budget;

b) Other authorities, organizations and individuals involved in implementing particular policies for investment, finance, budget and delegation of powers tailored for Can Tho city.

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1. These particular policies aim to promote rapid and sustainable socio-economic development of Can Tho city, facilitate Can Tho city in upholding its advantages to become one of the great cities of Vietnam and a leading socio-economic center playing roles of an industrial, commercial and service providing center of Mekong Delta by 2020, and create an important motivation for the development of provinces of Mekong Delta.

2. Delegating powers to manage Can Tho city must be associated with increase in the burden to the People’s Council and the People’s Committee of Can Tho city, raise the sense of initiative and creation as well as develop potentialities and strengths of Can Tho city in the way of achieving its socio-economic development objectives.

Article 3. Mobilization of investment funds and funds derived from central budget

1. Can Tho city shall be allowed to take out domestic investment loans in capital mobilization forms stipulated by laws and have access to foreign borrowed funds on-lent by the Government. The outstanding balance of borrowed fund (including on-lending of funds by the Government to the city and other domestic loans stipulated by laws) as part of the city's budget shall not be allowed to exceed 40% of the amount of revenues in the local budget that is received according to the stated mandate and the limit for the budget deficit subject to the National Assembly’s annual resolution.

2. The Government shall prefer allocating funds from central budget to the city’s budget for implementation of investment projects that serve multiple regions in the city in the public-private partnership (PPP) form.

3. The Government shall refer allocating the full on-target supplementary amount from central budget to the city’s budget for implementation of its socio-economic development projects and other regional-scale projects serving the development of Mekong Delta.

4. Can Tho city shall prefer using mobilized investment funds, central budget subsidies, official development assistance (ODA) funds and concessional loans obtained from foreign sponsors as prescribed in Clause 1, Clause 2 of this Article, Article 4 and Clause 1 Article 5 hereof for implementation of investment projects stated in the Appendix enclosed herewith.

Article 4. Official Development Assistance (ODA) funds and concessional loans obtained from foreign sponsors

1. The Government shall prefer allocating ODA funds to Can Tho city for implementation of significant infrastructure projects that are defined in the city’s budget of expenditures and managed by Can Tho city’s People’s Committee. Counterpart funds for these projects shall be derived from the city’s budget.

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3. Can Tho city’s People’s Committee shall be vested with the right to approve the list of projects or decide to receive non-refundable aids (ODA grants or aids given by foreign NGOs) for programs or projects regardless of the amount of such aids, except aids used for institution, religious, laws and policies, administrative reform, national defense and security purposes that shall be subject to the Prime Minister’s decision. The Chairperson of Can Tho city’s People’s Committee shall take charge of receiving, keeping, managing and using such aids in an effective manner, implementing bookkeeping and accounting regimes in accordance with laws, making a periodic report to the Ministry of Finance and the Ministry of Planning and Investment for their examination, supervision and preparation of another consolidated report to the Prime Minister.

Article 5. Particular budget policies

1. The city shall annually receive an on-target supplementary amount from the central budget that does not exceed 70% of the amount of central budget revenues increasing due to revenues distributed between the central budget and the city’s budget in comparison with the Prime Minister’s mandated budget (the portion of revenue that remains after the portion of revenue is given as an on-target bonus as specified in the Law on state budget), and of revenues wholly owned by the central budget as referred to in Point b, c, d, g, h, i, q Clause 1 Article 35 of the Law on state budget that increase in comparison with the Prime Minister’s mandated budget (except for revenues that do not fall under the city’s authority, do not arise but are collected within Can Tho city, revenues authorized for use by a competent authority, amounts recorded as revenues or expenses in an accounting book and revenues retained for use by city-governed entities which are administered through the state budget in accordance with applicable laws.). The on-target supplementary amount shall not be allowed to exceed the amount of central budget revenues that increase within the city in comparison with the previous budget year’s realized amount of revenues.

The on-target supplementary amount shall be calculated based on total revenue rather than separate revenues.

The National Assembly’s Standing Committee shall, based on total increased amount of central budget revenues and budget balancing capability, decide the on-target supplementary amount allocated to the city in accordance with regulations of the Law on state budget and particular policies tailored for Can Tho city stated herein.

3. Within the first year of a new period of budget stabilization, the Government shall authorize the Ministry of Finance to take charge and cooperate with relevant ministries and authorities to propose and request a competent authority to consider and decide the amount allocated to the city budget so as to ensure adequate funds for fulfilling the city's socio-economic development objectives and implementing regional-scale projects serving the development of Mekong Delta.

Article 6. Interest rate subsidies

The city shall consider providing subsidies on interests for organizations or individuals that take out loans for implementation of significant socio-economic development projects having capital recovery capability within the scope and balancing capability of the city budget.

Article 7. Selling social housing

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Article 8. Financial reserve fund

1. Sources for establishing the financial reserve fund, amounts set aside for and compulsory balance of the financial reserve fund shall conform to regulations of the Law on state budget and the Government’s Decree No. 163/2016/ND-CP dated December 21, 2016.

2. Can Tho city’s People’s Committee shall be entitled to use an advance given by the city’s financial reserve fund for investing in significant infrastructure projects, especially projects serving disaster preparedness and response, and climate change response purposes, that are defined in the city’s budget of expenditures but for which financing within the scope of the mid-term public investment plan has not been arranged. The duration of that advance shall not exceed 36 months from the date of grant of such advance. Total amount spent during the year of the city’s financial reserve fund (including advanced amounts and amounts used for performing other tasks as regulated) shall not exceed 70% of its beginning balance.

Article 9. Authority to give approval for investments in new urban area construction projects

Can Tho city’s People’s Committee is authorized to consider giving approval for investments in new urban area construction projects with a scale of from 100 ha to under 200 ha in conformity with the master construction planning and land-use planning. Can Tho city’s People’s Committee shall consult the Ministry of Construction before giving approval for such investments.

Article 10. Entry into force

1. This Decree shall enter into force from October 10, 2018.

2. The Prime Minister’s Decision No. 42/2006/QD-TTg dated February 16, 2006 providing certain preferential financial and budget policies tailored to the city shall be repealed.

Article 11. Implementation

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2. Ministers, heads of ministerial-level agencies, heads of the Government’s affiliates, Chairpersons of People’s Councils and People’s Committees of provinces and central-affiliated cities and relevant agencies shall implement this Decree./.

ON BEHALF OF THE GOVERNMENT
PRIME MINISTER




Nguyen Xuan Phuc

APPENDIX

LIST OF PRIORITY INVESTMENT PROJECTS FOR IMPLEMENTATION OF THE POLITBURO’S RESOLUTION NO. 45-NQ/TW
(Enclosed with the Government’s Decree No. 103/2018/ND-CP dated August 07, 2018)

A. INVESTMENT PROJECTS FUNDED BY CENTRAL BUDGET IN CAN THO CITY

I. INVESTMENT PROJECT GIVEN PRIORITY IN THE 2016 – 2020 PERIOD

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II. INVESTMENT PROJECT GIVEN PRIORITY AFTER 2020

1. Soc Trang – Can Tho – Chau Doc Expressway.

2. Ho Chi Minh City – My Tho – Can Tho railway line.

3. Access roads to Southern Can Tho Industrial Park and Cai Cui port (the second stage - the section from Nga Nam, Can Tho bridge to Cai Cui port).

4. Upgrade and expand Highway 91 – the Km0 – Km7 section.

5. Can Tho city police hospital.

B. INVESTMENT PROJECTS MANAGED BY CAN THO CITY GOVERNMENT

I. INVESTMENT PROJECT GIVEN PRIORITY IN THE 2016 – 2020 PERIOD

1. Anti-landslide embankment for Rach Cam market.

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3. Anti-landslide embankment for Cai Son canal and Cai Rang Be river.

4. Upgrade and expand Huynh Phan Ho street.

5. Upgrade and expand Nguyen Thong street.

6. Road route from behind Thanh Dong Channel connecting Mu U and Ben Ba.

7. Beltway of Can Tho airport connecting Le Hong Phong street to Highway 91B.

8. Dredge and upgrade the system of channels and canals for generating and storing fresh water, and control the intrusion of saltwater from Thang Loi 1 to Bon Tong.

9. Develop rural water supply systems for preventing and dealing with cases of drought, saltwater intrusion and climate change.

10. Upgrade and expand Can Tho city social protection center.

11. Supply power to rural areas from the national grid of Can Tho city.

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13. Develop Can Tho city and promote its adaptive capability.

14. Embankment for Can Tho river – Response to climate change by Can Tho city.

15. Provincial road No. 922 (Build and upgrade the section from Highway 91B to Co Do – first stage).

II. INVESTMENT PROJECT GIVEN PRIORITY AFTER 2020

1. Nguyen Van Cu prolonged road (from My Khanh to Phong Dien).

2. Build and upgrade the provincial road No. 922 – first stage, Can Tho city (the section from Chau Van Liem Ward, O Mon District to Thoi Lai Town, Thoi Lai District).

3. Provincial road No. 920 (from O Mon Thermal Power Plant to the provincial road 920B).

4. Upgrade and expand the provincial road 926.

5. Can Tho Vocational Training College (campus 2).

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7. Can Tho University of Technology (campus 2).

8. Can Tho College of Culture and Arts.

9. Administrative center of Can Tho city.

10. Upgrade and expand the provincial road 923.

11. The provincial road 918.

12. The provincial road 917.

13. The bridge to Tan Loc isle (associated with Tan Loc isle ecotourism resort).

14. The route connecting highway 91 to Nam Song Hau street (first stage).

15. Can Tho Cardiovascular Hospital (200 beds).