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THE GOVERNMENT
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THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 161/2016/ND-CP

Hanoi, December 2, 2016

 

DECREE

STIPULATING A SPECIAL MECHANISM FOR CONSTRUCTION INVESTMENT MANAGEMENT OF A NUMBER OF PROJECTS UNDER NATIONAL TARGET PROGRAMS DURING 2016-2020

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the November 26, 2013 Bidding Law;

Pursuant to the June 18, 2014 Law on Public Investment;

Pursuant to the June 18, 2014 Construction Law;

Pursuant to the XIIIth National Assembly’s Resolution No.100/2015/QH13 of November 12, 2015, approving the investment policy for national target programs during 2016-2020;

At the proposal of the Minister of Planning and Investment;

The Government promulgates the Decree stipulating a special mechanism for construction investment management of a number of projects under national target programs during 2016-2020.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. This Decree stipulates a special mechanism for construction investment management of small-scale projects under national target programs during 2016-2020 which use unsophisticated technologies and partly invested by the State and partly contributed by the people (below referred to as small-scale group-C projects).

2. This Decree applies to agencies, organizations and individuals engaged in implementing national target programs during 2016-2020.

Article 2. Criteria of small-scale group-C projects

A small-scale group-C project defined in Clause 1, Article 1 of this Decree must meet the following criteria:

1. Being included in a national target program during 2016-2020.

2. Having a total investment capital of under VND 5 billion.

3. Being located in a single commune managed by a commune-level People’s Committee.

4. Using unsophisticated technologies, having a model or typical design.

5. Using funds partly allocated from the state budget and partly contributed by the people and other sources with the participation and supervision of the people. People’s contributions may be in cash or in kind and their labor converted in money.

6. Being included in the list of projects eligible for the special mechanism issued by a provincial-level People’s Committee.

Chapter II

SPECIFIC PROVISIONS

Article 3. Appraisal of funding sources and fund balancing capacity of the central budget and funds raised from government bonds, national public bonds and ODA (below referred to as central budget funds) for small-scale group-C projects

1. Based on central agencies’ notices of allocation of medium-term or annual capital amounts, a provincial-level People’s Committee shall appraise funding sources and the capacity to allocate funds from the central budget for the list of small-scale group-C projects, without appraising each specific project. Based on the appraisal report prepared by Its provincial-level Department of Planning and Investment, the provincial-level People’s Committee shall decide investment policy for the whole list of projects.

2. Balancing funds for new projects must satisfy the requirements set out in Clause 5, Article 54 of the Law on Public Investment.

3. Each provincial-level People’s Committee shall send a report summarizing the appraisal results of funding sources and central budget balancing capacity for new projects of each national target program (below referred to as general appraisal report) to the Ministry of Planning and Investment, the Ministry of Finance and the owner of the national target program for monitoring and supervision. The deadline for reporting is the 30th day from the date the provincial-level People’s Committee allocates central budget funds to new projects in its annual plan. A general appraisal report must specify:

a/ Funding sources: Projects’ conformity with funding sources, objectives and target beneficiaries of the program;

b/ Fund balancing: The capability to allocate capital from the total capital of the program’s medium-term or annual investment plan for projects arranged in the order of priority as prescribed by law;

c/ The list of appraised projects: name of project, location, size and total investment capital (central budget, local budget, people’s contributions and other sources), duration and form of implementation.

Article 4. Compilation of work construction dossiers

1. For each project eligible for the special investment mechanism, a simplified work construction dossier (below referred to as work construction dossier) shall be prepared instead of construction investment economic-technical report.

2. Content of a work construction dossier:

a/ Name of the project, investment objective, construction location, project owner, size, technical standards of the model or typical design issued by a competent state agency and the duration of implementation;

b/ Total investment capital including state funds (central budget and local budgets), people’s contributions and other raised funds. A statement of expenses with priority given to the use of local materials and unit prices used for preparing the work construction dossier which conform with market prices and are permitted for application;

c/ Construction drawings (if any) according to the model or typical design;

d/ Self-execution ability of the beneficiary people or community.

3. The commune-level national target program management unit (below referred to as the management unit) shall compile a work construction dossier and send it to the commune-level People’s Committee for appraisal and approval. For a work assigned by the commune-level People’s Committee to a village, the village-level management unit (or an equivalent organization recognized by the commune-level People’s Committee) shall compile a work construction dossier and send it to the commune-level People’s Committee for appraisal and approval.

Article 5. Appraisal of work construction dossiers

1. A dossier for appraisal must comprise a work construction dossier containing the information specified in Clause 2, Article 4 of this Decree; minutes of the community’s meetings and legal documents pertaining to the construction (if any).

2. The appraising agency:

a/ The commune-level People’s Committee shall appraise the work construction dossier. Its chairperson shall form an appraisal team comprising a leader of the commune-level People’s Committee as the head of the team, representatives of the commune community investment supervision board and finance-accounting board, experts or people with professional qualifications selected by the community;

b/ In case the commune-level People’s Committee lacks professional capacity, the district-level People’s Committee shall assign the appraisal to its specialized agency(ies).

3. Contents of appraisal:

a/ Assessment of the conformity of the project with local construction and land use master plans and with the commune-level construction master plan and new countryside building plan;

b/ Assessment of the conformity of the model or typical design with practical conditions of the construction ground;

c/ Technical feasibility and the self-execution ability of the people and community assigned to construct the work;

d/ Investment policy and the possibility to raise capital (state funds, people’s contributions and other resources) under the investment policy approval decision and report on appraisal of funding sources and state budget amounts (for projects invested by state budget funds and not directly invested by commune budgets);

dd/ The reasonableness of expenses compared to local price levels (market prices) and those of other similar projects that have already been and are being carried out (if any).

4. Time of appraisal and reporting on appraisal results: The appraising agency shall send its written appraisal report to the commune-level People’s Committee within 10 working days after receiving a complete and valid dossier.

Article 6. Approval of work construction dossiers

Based on appraisal opinions, commune-level People’s Committees shall guide the completion and approval of work construction dossiers.

Condition on the deadline for approving work construction dossiers for new projects that are allocated annual funds: prior to the allocation of detailed capital plans for each project.

Article 7. Contractor selection in the form of participatory execution by the local communities

1. The approved form of contractor selection for a bidding package to be executed by a local community in the contractor selection plan must be the participatory execution by the local community.

2. Eligibility of a local community, mass organization or workers’ team to execute a bidding package:

a/ A local community, mass organization or workers’ team may be considered eligible to execute a bidding package mentioned in Article 27 of the Bidding Law when its members are living in the locality where such bidding package is executed and will benefit from such package;

b/ The representative of the local community, mass organization or workers’ team must have frill civil act capacity as prescribed by law, not be subject to penal liability examination and be selected by his/her local community, mass organization or workers’ team to represent the latter to sign a contract.

3. The process of selecting a contractor being a local community, mass organization or workers’ team:

a/ The commune management board shall draft a contract that states requirements on the scope, contents, quality and schedule of jobs to be performed, contractual price and rights and obligations of involved parties;

b/ The commune management board shall publicly post the notice of invitation to participate in executing the bidding package at the head office of the commune-level People’s Committee and announce such invitation to the local communities, mass organizations or workers’ teams on the commune’s media of communication and at the community centers. The notice must specify the time of the meeting to discuss the bidding package execution plan;

c/ The interested local communities, mass organizations or workers’ teams shall come to receive the draft contract for study and preparing a registration application for execution of the bidding package or project, specifying the names, age, capability and experiences of members to participate in executing the bidding package relevant to the characteristics of the bidding package; bid and execution schedule;

d/ The local management board shall consider, evaluate and select the best local community or mass organization and invite the latter’s representative to negotiate and sign a contract. A local workers’ team may be assigned only if the local community or mass organization does not file a registration application for execution of the bidding package or project or fails to satisfy the requirements;

dd/ The maximum duration from the date of publicly posting a notice of invitation to participate in executing a bidding package to the date of signing a contract is 30 days.

Article 8. Construction, supervision and pre-acceptance test of works

1. Based on the approved work construction dossier, the result of selection of the construction unit and the detailed capital allocation plan for the project, the local management board shall sign a contract with representatives of the assigned local community or organization to organize the construction.

2. The People’s Committee of the district level (for a work executed by a commune- level People’s Committee) or of the commune level (for a work executed by a village) shall assign professional officers to assist in the construction. The commune management board and the investment supervision board of the commune community shall supervise the progress of construction.

3. The commune management board shall organize a pre-acceptance test of the work, with the participation of representatives of the commune-level People’s Committee and management board; the investment supervision board of the commune community; representatives of the local community, mass organization or workers’ team constructing the work; and other related persons as decided by the commune-level People’s Committee.

Article 9. Financial support for the preparation and management of project implementation

The contents and norms of financial Supports shall be submitted by provincial-level People’s Committees to provincial-level People’s Councils for promulgation under current regulations and in conformity with specific local conditions, which must not be higher than the norms of financial supports under the ordinary investment mechanism.

Article 10. Organization of implementation

1. The People’s Committees of provinces or centrally run cities shall:

a/ Promulgate model or typical designs;

b/ Promulgate a list of projects eligible for the specific mechanism;

c/ Appraise funding sources and the capability to balance central budget funds as prescribed in Article 3 of this Decree;

d/ Guide the application of the special mechanism in conformity with local specific conditions.

2. The Ministry of Finance shall guide the simplified procedures for payment and settlement of funds for projects eligible for this special mechanism.

For projects implemented with construction materials procured with state budget funds, provincial-level People’s Committees shall provide in detail the management and payment and settlement of these state budget funds in conformity with practical local conditions.

3. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with related agencies in, monitoring, examining and reviewing the implementation of this Decree; and propose the Government to revise this Decree in case of necessity.

Chapter III

EFFECT

Article 11. Effect

1. This Decree takes effect on the date of its signing.

2. To annul the Prime Minister’s Decision No. 498/QD-TTg of March 21, 2013, approving an additional investment mechanism for the national target program on building a new countryside in the 2010-2020 period.

3. Other contents relating to construction investment management not mentioned in this Decree must comply with current laws and regulations.

Article 12. Implementation responsibilities

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related organizations and individuals shall implement this Decree.-

 

 

ON BEHALF OF GOVERNMENT
PRIME MINISTER




Nguyen Xuan Phuc