Circular No. 14/2017/TT-BNNPTNT dated July 05, 2017 of the Ministry of Agriculture and Rural Development guiding the implementation of a number of contents on investment in agriculture and rural areas in the form of public-private partnership

CIRCULAR

Guiding the implementation of a number of contents on investment in agriculture and rural areas in the form of public-private partnership[1]

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

Pursuant to the November 26, 2014 Law on Investment;

Pursuant to the Government’s Decree No. 15/2015/ND-CP of February 14, 2015, on investment in the form of public-private partnership;

Pursuant to the Government’s Decree No. 15/2017/ND-CP of February 17, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Agriculture and Rural Development;

In implementation of the Government Office’s Document No. 10126/VPCP-KTN of November 24, 2016, on supplementation of similar public-private partnership contracts in the field of agriculture under Decree No. 15/2015/ND-CP;

At the proposal of the director of the Planning Department,

The Minister of Agriculture and Rural Development promulgates the Circular guiding the implementation of a number of contents on investment in agriculture and rural areas in the form of public-private partnership.

Article 1.Scope of regulation

This Circular details investment fields; contents of project proposals, feasibility study reports and contracts of investment project in agriculture and rural areas in the form of public-private partnership.

Article 2.Subjects of application

This Circular applies to competent state agencies, investors, project enterprises and organizations and individuals involved in the implementation of investment projects in agriculture and rural areas in the form of public-private partnership.

Article 3.Interpretation of terms

In this Circular, the following terms are construed as follows:

1. Agriculture covers crop production, livestock husbandry, forestry, salt production, fisheries and irrigation.

2. Agricultural products include products from crop production and livestock husbandry; forest products; fishery products and salt.

3. Farmers include those growing crops, raising livestock, producing forest products, exploiting and rearing aquatic products and making salt.

4. Project on services to develop connection between production, processing and sale of agricultural products (abbreviated to as DVC project) means a project which provides services to establish alignment between farmers and agricultural cooperatives and investors and project enterprises to organize production associated with processing and sale of products in order to create added value for agricultural products.

5. Services to establish alignment between farmers and agricultural cooperatives and investors and project enterprises are divided into three groups:

a/ Group of agricultural production support services, including provision of input supplies, finance, credit, training, human resources, and technical infrastructure, scientific and technological and policy counseling, agricultural extension, transfer of technical advances, mechanization, animal health and plant protection;

b/ Group of agricultural product preservation and processing services, including preservation (storage, freezing, drying, steaming, sterilization and irradiation), preliminary processing and processing of agricultural products;

c/ Group of agricultural product sale services, including product offtake, testing, assay, inspection and certification of quality, conformity assessment, development of agricultural product brands and logistics services.

6. Contract of services to develop connection between production and processing and sale of agricultural products (abbreviated to as DVC contract) means a contract signed between a competent state agency and an investor to implement a DVC project; the investor and project enterprise shall organize the service provision, and connect farmers and agricultural cooperatives and have the right to manage and operate the project and collect service charges from service users (if any) but shall purchase agricultural products under agreement; the competent state agency shall participate in the project through money contribution or in other lawful forms; after the project contract terminates, the investor shall transfer assets and project works (if any) to the competent state agency as agreed upon.

7. Contracts on investment projects in agriculture and rural areas in the form of public-private partnership (referred to as project contracts) include contracts of the types specified in Clauses 3, 4, 5, 6, 7, 8 and 9, Article 3 of Decree No. 15/2015/ND-CP, and the contracts prescribed in Clause 6 of this Article.

Article 4.Fields of investment in agriculture and rural areas in the form of public-private partnership

1. Projects on construction, renovation, operation, trading and management of agricultural and rural infrastructure facilities, including:

a/ Works or work items under the irrigation system serving agricultural production or serving agricultural and industrial production, services and people’s life;

b/ Works or work items of water supply for rural inhabitants’ daily-life activities;

c/ Infrastructure works or work items serving aquaculture and fishing and other fishery infrastructure facilities;

d/ Infrastructure works or work items serving crop production and livestock husbandry;

dd/ Infrastructure works or work items serving forest protection and development;

e/ Infrastructure works or work items serving salt production and processing;

g/ Agricultural product storage and preservation facilities;

h/ Infrastructure works or work items of hi-tech agricultural zones and areas;

i/ Works or work items of agro-forestry-fishery product quality quarantine, testing, assay, inspection and certification;

k/ Water drainage and wastewater, waste and rural environmental pollutant collection and treatment works.

2. A DVC project must have at least two services amongst the service groups prescribed in Clause 5, Article 3 of this Circular, which must include the agricultural product offtake service.

Article 5.Guidance on contents of project proposals

1. Contents of project proposals on construction, renovation, operation, trading and management of agricultural and rural infrastructure facilities shall be made according to Appendix I to the Minister of Planning and Investment’s Circular No. 02/2016/TT-BKHDT of March 1, 2016.

2.  Contents of DVC project proposals shall be made according to Appendix I to this Circular(not translated).

Article 6.Guidance on contents of project feasibility study reports

1. Contents of feasibility study reports of projects on construction, renovation, operation, trading and management of agricultural and rural infrastructure facilities shall be made according to Appendix III to the Minister of Planning and Investment’s Circular No. 02/2016/TT-BKHDT of March 1, 2016.

2. Contents of feasibility study reports of DVC projects shall be made according to Appendix II to this Circular(not translated).

Article 7.Guidance on contents of project contracts

1. Contents of contracts of projects on construction, renovation, operation, trading and management of agricultural and rural infrastructure facilities shall be made according to Article 10, Chapter III of, and Appendix I to, the Minister of Planning and Investment’s Circular No. 06/2016/TT-BKHDT of June 28, 2016.

2. Contents of DVC project contracts shall be made according to Appendix III to this Circular(not translated).

Article 8.State management responsibilities for investment in agriculture and rural areas in the form of public-private partnership

1. The Ministry of Agriculture and Rural Development

a/ To perform the state management of investment in the form of public-private partnership in the fields under the management of the agriculture and rural development sector prescribed in Article 69 of Decree No. 15/2015/ND-CP and this Circular;

b/ To assign specific tasks to its attached units to manage state budget-funded investment projects in the form of public-private partnership (PPP) under its management as follows:

- The Planning Department

To assume the prime responsibility for advising and submitting to the Minister public investment plans for PPP projects.

To assume the prime responsibility for synthesizing and appraising PPP project proposals for submission to the Minister for approval; to publish the project list after project proposals are approved.

To assume the prime responsibility for advising and submitting to the Minister for decision the policy on the making of feasibility study reports of PPP projects.

To assume the prime responsibility for synthesizing and appraising for submission to the Minister for approval feasibility study reports of DVC projects (except DVC projects with construction components) after collecting appraisal opinions of related agencies.

To assume the prime responsibility for organizing the negotiation of project contracts; advising and submitting to the Minister the signing of investment agreements and the signing and authorization for performance of project contracts in case investors or project enterprises are domestic partners.

To supervise the performance of obligations by investors or project enterprises being domestic partners as prescribed by law.

- The International Cooperation Department

To assume the prime responsibility for organizing the negotiation of project contracts; advising and submitting to the Minister the signing of investment agreements and the signing and authorization for performance of project contracts in case investors or project enterprises are foreign partners.

To supervise the performance of obligations by investors or project enterprises being foreign partners as prescribed by law.

- The Finance Department

To assume the prime responsibility for appraising and submitting to the Minister the valuation of investment capital being state assets for project implementation (including land) as prescribed by law.

To guide and examine the finalization of the state investment capital for project implementation as prescribed by law.

- The Department of Work Construction Management

To assume the prime responsibility for appraising and submitting to the Minister for approval, and approving, adjustment and supplementation of feasibility study reports of PPP projects on construction of infrastructure facilities assigned by the Ministry to the Department for management and DVC projects with construction components.

To assume the prime responsibility for, and coordinate with related agencies and units in, performing the state management of construction work quality; and supervising the quality of construction works and the implementation of regulations on capital construction investment.

- Directorates and specialized management departments

To organize the making of project proposals and feasibility study reports of PPP projects in the fields under their management as prescribed.

To participate in the appraisal of other units’ project proposals and feasibility study reports of PPP projects in the fields under their management as prescribed.

To assume the prime responsibility for negotiating contents of project contracts in the fields under their management as prescribed.

To sign and perform contracts for group-B and group-C projects as authorized by the Minister.

To exercise the right to receive project assets (if any) after project completion.

2. Provincial-level People’s Committees shall perform the state management of investment projects in agriculture and rural areas in the form of public-private partnership in accordance with Article 70 of Decree No. 15/2015/ND-CP and this Circular.

Article 9.Effect

1. This Circular takes effect on August 22, 2017.

2. In case the legal documents referred to in this Circular are amended, supplemented or replaced, the amending, supplementing or replacing legal documents shall apply.

3. Any problems arising in the course of implementation should be reported in writing to the Ministry of Agriculture and Rural Development for timely study and settlement.-

For the Minister of Agriculture and Rural Development
Deputy Minister
HOANG VAN THANG