Circular 15/2019/TT-BNNPTNT management of investment in silvicultural works

CIRCULAR

Guiding a number of contents regarding management of investment in silvicultural works

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

Pursuant to the Law on Promulgation of Legal Documents No. 80/2015/QH13 dated June 22, 2015;

Pursuant to the Law on Forestry No. 16/2017/QH14 dated November 15, 2017;

Pursuant to the Government's Decree No. 136/2015/ND-CP dated December 31, 2015, guiding the implementation of a number of articles of the Law on Public Investment;

Pursuant to the Government's Decree No. 59/2015/ND-CP dated June 18, 2015, on management of construction investment projects;

Pursuant to the Government's Decree No. 68/2019/ND-CP dated August 14, 2019, on management of construction investment costs;

Pursuant to the Government's Decree No. 156/2018/ND-CP dated November 16, 2018, detailing the implementation of a number of articles of the Law on Forestry;

At the proposal of the Director General of Vietnam Administration of Forestry;

The Minister of Agriculture and Rural Development promulgates the Circular guiding a number of contents regarding management of investment in silvicultural works,

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular guides a number of contents regarding management of investment in silvicultural and forest protection works, including: formulation, appraisal, and approval of designs, cost estimates and acceptance tests; handling of risks due to force majeure causes.

Article 2. Subjects of application

1. This Circular applies to domestic organizations, households, individuals and residential communities involved in the implementation of silvicultural works in investment projects using public investment funds (state budget funds, funds from lawful revenues of state agencies and public non-business units for investment in accordance with law provisions); or involved in the implementation of forest protection activities and silvicultural works funded by the state budget.

2. Investors are encouraged to use other lawful capital sources to apply the provisions of this Circular.

Article 3. Interpretation of terms

1. Silvicultural works refer to agricultural and rural development works, made up of the implementation of silvicultural investment activities according to designs and estimates, including: zoning for natural regeneration; zoning for natural regeneration with additional planting; nursing natural forests; enriching natural forests; rehabilitating natural forests; afforestation; caring for and nursing planted forests.

2. Acceptance test of items refers to activities of appraising and concluding the construction results of items compared with the approved design.

3. Acceptance test upon completion refers to activities of appraising and determining the area to be considered as forest at the end of the investment period for silvicultural works, including: afforestation; rehabilitating natural forests; zoning for natural regeneration; zoning for natural regeneration with additional planting.

Chapter II

FORMULATION, APPRAISAL, APPROVAL OF DESIGNS AND COST ESTIMATES

Article 4. Principles for formulating design dossiers and cost estimates

1. With regard to silvicultural works for which investment projects have been approved, the investors shall formulate designs and cost estimates of silvicultural works. With regard to projects that only require economic and technical reports, designs and cost estimates of silvicultural works as well as economic and technical reports shall be formulated at the same time.

2. With regard to works of zoning for natural regeneration and forest protection using state budget funds, the state budget-funded units shall formulate designs and cost estimates once for multiple years or formulate designs and cost estimates on an annual basis according to the assigned budget plan.

3. Investors or state budget-funded units shall hire consultants to formulate design dossiers and cost estimates or formulate by themselves when they fully meet the conditions and capabilities as a consulting organization.

Article 5. Cost estimates

Cost estimates shall be calculated on the basis of current economic-technical norms. Cost items include:

1. Construction costs:

a) Direct costs, including:

Labor cost: site preparation, planting, caring, inspection, monitoring, and protection of forests, and other related costs;

Construction machinery and equipment cost: tilling the soil, transporting seedlings by machine; levelling the ground, making fire barriers and other related expenses;

Material cost: seeds, fertilizers, pesticides and other related materials.

b) Overhead costs: equal to 5.0% of direct costs, including:

Cost for protective equipment, labor safety and environmental protection for employees and the surrounding environment;

Cost for transporting construction machinery, equipment and labor force to and from the construction site;

Cost for ensuring traffic safety for construction (if any).

c) Presumed taxable income: means the estimated profit in the work construction estimate, equal to 5.5% of the total direct and overhead costs;

d) Value-added tax shall be determined under the regulations of the State.

2. Equipment costs, including: costs for technological equipment procurement (including to-be-manufactured or processed technological equipment), installation and testing, equipment calibration, transportation, equipment insurance, training and technology transfer.

3. Management expenses: equal to 3.0% of the total construction costs and equipment costs, including: expenses for organization and management of works from the preparation stage to the end and acceptance to put the works into operation.

4. Construction investment consultancy expenses shall be determined by detailed cost estimates, including: survey; formulation of designs and cost estimates; supervision and other related consultancy expenses.

5. Other costs:

a) Expenses for deactivating bombs, mines and explosives;

b) Costs for building makeshift houses at the site for worker accommodations and construction administration; expenses for reimbursement and restoration of infrastructure facilities affected by construction;

c) Costs of insurance for works during the implementation period. In case the works are subject to encouragement to buy insurance, the insurance purchase cost shall be included in the total investment in construction of the works;

d) Expenses for audit, verification and approval of final accounts of investment capital;

dd) Expenses for examination of acceptance test during construction and upon completion by competent state management agencies;

e) Expenses for related scientific and technological research; loan interests during the construction period (minus the value of recovered products);

g) Royalty, charges and fees as prescribed;

  h) Expenses for performing other work items.

6. Contingency expenses:

a) The contingency amount for additional workloads shall be determined at a rate equal to 5.0% of the total construction costs, equipment costs, management expenses, construction investment consultancy expenses and other costs;

b) The contingency amount for inflation shall be determined on the basis of the construction period (in months, quarters, years), and the possibility of domestic and international price fluctuations.

7. For works of zoning for natural regeneration and forest protection that are implemented in the form of contracting for households, individuals and communities: the contracted value for contracted subjects, costs for formulating dossiers and other costs are subject to the state’s support norms according to current policies.

Article 6. Dossiers for approval of designs and cost estimates

1. A written request for approval of designs and cost estimates, made according to the Form No. 01 in Appendix III issued together with this Circular.

2. Design description, made according to the Form in Appendix I issued together with this Circular.

3. Estimates, made according to the provisions of Article 5 of this Circular.

4. Design map: built on topographic map according to VN 2,000 reference system with the scale of 1/5000 or 1/10,000. Presentation of map contents applies TCVN 11566:2016 on forest planning maps.

5. A copy of written approval of the investment project or the assigned capital plan for activities using state budget funds and other relevant documents.

Article 7. Approval of designs and cost estimates of silvicultural works using public investment funds

1. Agencies appraising designs and cost estimates of silvicultural works:

a) For projects under investment decisions by the Minister of Agriculture and Rural Development: Vietnam Administration of Forestry shall assume the prime responsibility for appraising the designs and cost estimates of silvicultural works;

b) For projects under investment decisions by other central ministries and branches: the attached specialized agencies shall assume the prime responsibility for appraising the designs and cost estimates of silvicultural works;

c) For projects under investment decisions by Chairpersons of provincial-level People's Committees: the provincial-level Departments of Agriculture and Rural Development shall assume the prime responsibility for appraising the designs and cost estimates of silvicultural works;

d) For silvicultural works of the projects under investment decisions by Chairpersons of district or commune-level People's Committees: the district-level functional divisions or the local forest rangers shall assume the prime responsibility for appraising the designs and cost estimates of silvicultural works.

2. Agencies approving designs and cost estimates of silvicultural works:

a) Agencies approving designs and cost estimates of silvicultural works are the agencies that decide on the project investment. Investment deciders may decentralize or authorize approval to subordinate agencies according to regulations;

b) For projects under investment decisions by the Prime Minister, investors shall be the agencies, organizations or units assigned by the Prime Minister. The investors shall exercise the authority of investment deciders, and approve the designs and cost estimates of silvicultural works.

3. Process of appraising designs and cost estimates of silvicultural works:

a) The investors shall submit 01 set of dossiers as prescribed in Article 6 of this Circular to the appraisal agencies in person or via postal service or through the network environment (national public service portal and ministerial or provincial-level public service portal);

b) The appraisal agencies shall examine the validity of such dossier; return the receipt or receipt refusal immediately to the investors in cases of direct submission; or after 02 working days in cases of submission via postal service or through the network environment;

c) Within 12 working days from the date on which the valid dossier is received, the appraisal agencies shall organize the appraisal and report the appraisal results according to the Form No. 02 in Appendix III, draft the decisions on approval according to the Form No. 03 in Appendix III issued together with this Circular, and submit such documents to competent authorities for approval;

d) Within 05 working days from the date on which the reports on appraisal results are received, the competent authorities shall decide to approve the designs and cost estimates of the silvicultural works and return the results to the investors within 03 working days from the date of signing the decisions. In cases of refusal, the decision-making authorities shall notify in writing the appraisal agencies and the investors within 03 working days.

Article 8. Approval of designs and cost estimates of works for zoning natural regeneration and forest protection funded by the state budget

1. Dossiers for approval of designs and cost estimates shall comply with the provisions in Article 6 of this Circular.

2. State budget-funded units shall self-approve designs and cost estimates in accordance with the Budget Law.

Article 9. Adjustment of designs and cost estimates

1. Adjustment of designs and cost estimates shall be carried out in the following cases:

a) In cases where investment projects require adjustment of the designs and cost estimates of silvicultural works;

b) In cases where there is a change in the annual budget allocated for the works of zoning for natural regeneration and forest protection funded by the state budget;

c) In the course of implementation, the designs require adjustment to ensure quality.

2. Dossiers for adjustment of designs and cost estimates shall comply with the provisions in Article 6 of this Circular; Dossiers for appraisal and approval of adjustment of designs and cost estimates shall comply with the provisions of Articles 7 and 8 of this Circular.

3. In cases where only the structure of cost items is adjusted without changing the approved estimates, including contingency costs, the investors or the state budget-funded units shall organize the adjustment and report to the investment deciders or the funding agencies on the adjusted estimate contents.

4. The project owners or the state budget-funded units shall determine the adjusted estimates as the basis for adjusting the contract value.

Chapter III

ACCEPTANCE TEST AND HANDLING OF RISKS IN THE INVESTMENT PHASE

Article 10. General provisions on acceptance test

1. The project owners or state budget-funded units shall conduct the acceptance test upon completion of items or the end of the investment period. The time of acceptance must be specified specifically to ensure the accuracy of the test results.

2. Components of acceptance test:

a) Representative of project owners or state budget-funded units: Leaders, technical staff, supervisory staff;

b) Representative of construction units or individuals;

c) Other relevant parties:

Representative of design consultancy units participating at the request of the project owners (if any);

Representative of supervision consultancy units (if any);

Representative of project managers or users (in cases where the project owners are not the project managers or users);

Representative of organizations and administrations of communes, villages and cooperatives participating at the request of the project owners.

3. Dossiers for acceptance test:

a) Decision on establishment of acceptance council (if any);

b) Design and cost estimate approved by a competent authority;

c) Contract;

d) Report on implementation results;

dd) Minute of acceptance, made according to the Form No. 04 in Appendix III issued together with this Circular;

3) Other relevant documents.

4. Forms of acceptance test:

a) Acceptance test of items: applicable to silvicultural and forest protection works to determine the volume and quality of to-be-performed work items as a basis for advance payment, payment of the completed volume value and settlement;

b) Acceptance test upon completion: applicable to silvicultural works whose area need to be determined according to forest area criteria in accordance with the forest management regulations specified in the Government’s Decree No. 156/2018/ND-CP dated November 16 2018, detailing the implementation of a number of articles of the Law on Forestry.

5. Responsibilities of project owners or state budget-funded units during the acceptance process:

a) Producing documents as prescribed in Clause 3 of this Article;

b) Examining the legitimacy of representatives of the parties participating in the acceptance test;

c) Guiding related parties on the methods and contents of acceptance and signing the minutes of acceptance.

Article 11. Acceptance test of afforestation

1. Time of acceptance:

a) Acceptance test of items: conducting after taking technical measures;

b) Acceptance test upon completion: conducting after the end of the investment period.

2. Acceptance criteria: complying with the provisions in Section I, Appendix II issued together with this Circular.

3. Volume acceptance, including: conducting the field inspection of the entire area, identifying boundaries, comparing with design maps, zoning and determining the scale by direct measurement.

4. Quality acceptance: complying with the technical standards for afforestation specified in the approved technical design, specifically:

a) For monoculture concentrated plantations: establishing a circular standard plot with an area of at least 100 m² on the representative route of acceptance plots, the minimum number of standard plots is specified as follows:

Lot area under 3 ha: 10 standard plots;

Lot area from 3 ha to less than 5 ha: 15 standard plots;

Lot area from 5 ha or more: at least 20 standard plots.

b) For mixed concentrated plantations: establishing a square standard plot with an area of at least 500 m² on the representative route of acceptance plots, the minimum number of standard plots is specified as follows:

Lot area under 3 ha: 3 standard plots;

Lot area from 3 ha to less than 5 ha: 5 standard plots;

Lot area of 5 ha or more: 10 standard plots.

c) For mixed plantations in strips: using the random sampling method to check at least 10% of plantation strips in the plot; counting the number of plants in all strips. In cases where the number of strips in the plot is less than 10, at least 01 strip must be examined;

d) For mixed plantations in bushes: using the random sampling method to check at least 10% of reforestation bushes in the plot. In cases where the bushes' area is less than 1000 m², counting the number of trees on. In cases where the bushes' area is larger than 1000 m², establishing a standard plot in accordance with Points a and b of this Clause. In cases where the number of bushes in the plot is less than 10, at least 01 bush must be examined.

Article 12. Acceptance test of natural forest rehabilitation

1. Time of acceptance:

a) Acceptance test of items: conducting after taking technical measures;

b) Acceptance test upon completion: conducting after the end of the investment period.

2. Acceptance criteria: complying with the provisions in Section I, Appendix II issued together with this Circular.

3. Methods: complying with the provisions of Clauses 3 and 4, Article 11 of this Circular.

Article 13. Acceptance test of zoning for natural regeneration

1. Time of acceptance:

a) Acceptance test of items: conducting after taking technical measures;

b) Acceptance test upon completion: conducting after the end of the investment period.

2. Acceptance criteria: complying with the provisions of Section IV, Appendix II issued together with this Circular.

3. Methods:

a) Volume acceptance: complying with the provisions of Clause 3, Article 11 of this Circular;

b) Quality acceptance: complying with the technical standards specified in the approved technical design, establishing standard plots to evaluate the acceptance criteria, specifically:

Standard plots with an area of at least 1000m² on the representative route of the acceptance plot, the minimum number of standard plots is specified as follows:

Lot area under 3 ha: 1 standard plot;

Lot area from 3 ha to less than 5 ha: 3 standard plots;

Lot area from 5 ha or more: 5 standard plots.

Article 14. Acceptance test of zoning for natural regeneration with additional planting

1. Time of acceptance:

a) Acceptance test of items: conducting after taking technical measures;

b) Acceptance test upon completion: conducting after the end of the investment period.

2. Acceptance criteria: complying with the provisions of Section V, Appendix II issued together with this Circular.

3. Methods:

a) Volume acceptance: complying with the provisions of Clause 3, Article 11 of this Circular;

b) Quality acceptance:

For additional afforestation areas, complying with the provisions of Clause 4, Article 11 of this Circular;

For additional non-afforestation areas, complying with the provisions of Point b, Clause 3, Article 13 of this Circular.

Article 15. Acceptance test of caring for planted forests

1. Time of acceptance test of items: conducting annually after taking technical measures.

2. Acceptance criteria: complying with the provisions in Section II, Appendix II issued together with this Circular.

3. Methods: complying with the provisions of Clauses 3 and 4, Article 11 of this Circular.

Article 16. Acceptance test of forest protection

1. Time of acceptance test of items: conducting at the end of the plan year.

2. Acceptance criteria: complying with the approved design and contract of assignment.

3. Methods: conducting the field inspection of the entire area, based on the design map to determine the location, boundary and rate of implementation results, specifically:

a) In cases where 100% of the forest area is not destroyed: 100% of the work volume is accepted and completed;

b) In cases where the forest is destroyed (destructing, encroaching, clearing, burning forest for cultivation, shifting cultivation, illegal conversion of forest use purposes, etc.), based on the specific situation, the payment of the contract performance value will be determined according to the ratio, specifically:

Persons contracted to protect the forest or receiving forest protection support fund detects the forest destruction and immediately reports it to the competent authority (the contracting party or the local administration or the local forest ranger): Their tasks are considered completed and their wages shall be paid under the contract.

Persons contracted to protect the forest or receiving forest protection support fund fails to detect the forest destruction or detects it but fails to notify the competent authority: the forest protection wages shall not be paid for the destructed forest areas, and depending on the extent of destruction, such persons will be handled in accordance with law provisions.

Article 17. Acceptance test of nursing planted forests

1. Time of acceptance test of items: conducting annually after taking technical measures.

2. Acceptance criteria: complying with the provisions of Section III, Appendix II issued together with this Circular.

3. Methods: complying with the provisions of Clauses 3 and 4, Article 11 of this Circular.

Article 18. Acceptance test of nursing natural forests

1. Time of acceptance test of items: conducting annually after taking technical measures.

2 Acceptance criteria: complying with the provisions of Section IV, Appendix II issued together with this Circular.

3. Methods: complying with the provisions of Clauses 3 and 4, Article 11 of this Circular.

Article 19. Acceptance test of natural forest enrichment

1. Time of acceptance test of items: conducting annually after taking technical measures.

2. Acceptance criteria: complying with the provisions of Section V, Appendix II issued together with this Circular.

3. Methods:

a) Volume acceptance: complying with the provisions of Clause 3, Article 11 of this Circular;

b) Quality acceptance: complying with Points c and d, Clause 4, Article 11 of this Circular;

Article 20. Handling of risks due to force majeure causes

1. Handling of risks caused by natural disasters:

a) The project owner or the state budget-funded unit shall make a record of damage situation assessment, determine the causes, and report it to the competent authority for consideration and decision on adjustment of the investment project or the assigned capital plan; adjust the design and cost estimate in accordance with Article 9 of this Circular;

b) The statistics, assessment and reporting of damage caused by natural disasters shall comply with the provisions of the Joint Circular No. 43/2015/TTLT-BNNPTNT-BKHDT dated November 23, 2015, of the Ministry of Agriculture and Rural Development and the Ministry of Planning and Investment, on guiding the making statistics and assessment of damage caused by natural disasters and related documents.

2. Handling of risks caused by other causes:

Depending on the scale and extent of damage, the project owner or the state budget-funded unit shall make a record of damage situation assessment, determine the causes, and report it to the competent authority for handling as prescribed.

Chapter IV

ORGANIZATION OF IMPLEMENTATION

Article 21. Responsibilities of Vietnam Administration of Forestry

1. Organizing the appraisal of designs and cost estimates of silvicultural works of projects under investment decisions by the Ministry of Agriculture and Rural Development.

2. Conducting periodical or ad-hoc inspection of the formulation, appraisal, approval and implementation of relevant agencies and units.

3. Advising and assisting the Minister of Agriculture and Rural Development in handling problems in the implementation of this Circular.

Article 22. Responsibilities of persons deciding on investment and approval of designs and cost estimates

Persons who decide on investment, and approval of designs and cost estimates as prescribe in Articles 7 and 8 of this Circular shall be responsible for:

1. Deciding on the decentralization and authorization to appraise and approve designs and cost estimates in accordance with law provisions and specific conditions.

2. Exercising the rights and responsibilities of investment deciders as prescribed by law provisions for projects in which they decide to invest.

3. Inspecting the appraisal work of affiliated specialized agencies, promptly handling and solving problems.

Article 23. Responsibilities of the Department of Agriculture and Rural Development

1. Organizing the appraisal of designs and cost estimates of silvicultural works of projects under investment decisions by provincial-level People's Committees.

2. Advising and assisting the Chairpersons of provincial-level People's Committees in, and reporting to the Minister of Agriculture and Rural Development for, handling problems in the implementation of this Circular of agencies and units located in the province.

Article 24. Effect

1. This Circular takes effect from January 1, 2020.

2. Circular No. 23/2016/TT-BNNPTNT dated June 30, 2016 of the Ministry of Agriculture and Rural Development, guiding a number of contents regarding management of silvicultural works ceases to be effective from the effective date of this Circular.

3. In case legal documents and standards cited in this Circular are amended, supplemented or replaced by other documents, the amended, supplemented or replaced documents shall prevail.

4. Any difficulties or problems arising in the course of implementation should be promptly reported to the Ministry of Agriculture and Rural Development for consideration and settlement.

Article 25. Transitional provisions

1. Designs and cost estimates of silvicultural works that have been appraised by a competent authority before the effective date of this Circular but have not yet been approved shall not be re-appraised.

2. The adjustment of designs and cost estimates of silvicultural works after the effective date of this Circular shall comply with the provisions of this Circular./.

For the Minister

The Deputy Minister

HA CONG TUAN

* All Appendices are not translated herein.