Decision No. 42/2006/QD-TTg dated February 16, 2006 of the Prime Minister on a number of preferential financial and budgetary mechanisms for Can Tho city

DECISION

ON A NUMBER OF PREFERENTIAL FINANCIAL AND BUDGETARY MECHANISMS FOR CAN THO CITY

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to State Budget Law No. 01/2002/QH11 of December 16,2002;

Pursuant to the Government's Decree No. 60/2003/ND-CP of June 6, 2003, detailing and guiding the implementation of the State Budget Law;

At the proposal of the Minister of Finance,

DECIDES:

Article 1.- To promulgate a number of preferential financial and budgetary mechanisms for Can Tho city as follows:

1. Regarding state budget supports:

a/ In order to support Can Tho city in executing important projects of significance for the city and Mekong river delta provinces, based on the approved total budget estimates, the progress of project execution, the municipal budget's capital-allocating capacity, and the central budget's capital-balancing capacity, in the period from 2006 to 2010, the Ministry of Planning and Investment and the Ministry of Finance shall report to the Government for submission to the National Assembly on the allocation of capital from the central budget through ministries or central agencies or of targeted partial supports to the city's budget for the execution of important projects, including:

- An investment project on upgrading and expansion of Tra Noc airport into an international one;

- An investment project on linking National Highway No. 91 with the road south of Hau river;

- A project on National Highway No. 1A curved section linked with National Highway No. 80;

- A project on the Can Tho-Xa No-Vi Thanh road section;

- A project on upgrading and expansion of National Highway No. 91;

- A project on embankment of Hau and Can Tho rivers (the section running through the inner city);

- A project on building the cultural center of Can Tho province;

- A project on building the national center for sport training;

- A project on building Can Tho central general hospital;

- A project on building Can Tho University of Medicine;

- A project on embankment of Cai Khe alluvial islet;

- A project on Cu Lao-Tan Loc dyke;

- Aproject on the road and bridge spanning Khuong alluvial islet;

- Projects on upgrading of Can Tho University into a national key university in the direction of multidiscipline development; establishment of a sub-institute of the Ho Chi Minh National Politics Institute and a sub-institute of the National Institute of Public Administration in Can Tho city; upgrading of existing research institutes and building of several research and transfer establishments specialized in economics, biotechnology, high technologies (mechanical engineering, chemical industry, information technology, agriculture, etc.) to meet regional development requirements; building of medical centers and hospitals specialized inoncology, obstetrics, cardiovascular diseases, etc., in service of the Mekong river delta region.

b/ The Ministry of Planning and Investment shall coordinate with the Ministry of Finance in submitting to competent authorities for consideration and decision the allocation of investment capital from the source of government bonds to important and key programs and projects, including:

- Mau Than-Tra Noc airport route;

- Bon Tong-Mot Ngan route;

- Upgrading and expansion of Cai Cui port.

c/ Annually, if there is an increase in the central budget revenue over the assigned estimates from the revenue distributed between the central budget and the city's budget according to the provisions of the State Budget Law, Can Tho city's budget shall be rewarded 30% of this increase which, however, must not exceed the amount increased over the previous year's amount.

d/ For the revenue amount collected in excess of the annual central budget estimates, based on the budget remittance results, the Ministry of Finance shall consult the Ministry of Planning and Investment before reporting it to the Government for submission to the National Assembly Standing Committee on the prioritized grant of such amount to the city's budget according to the provisions of the State Budget Law.

The city shall use annual reward amounts and targeted additional amounts specified at Points c and d, Clause 1 of thisArticle for investment in infrastructure works, allocation of domestic capital to ODA-funded projects, payment of the city budget's loans, performance of important tasks for the city's socio-economic development, security and social order and safety, and reward for budgets of tower levels. The People's Committee of Can Tho city shall report to the People's Council of the same level for decision specific capital amounts allocated for each objective and task and reward for budgets of lower levels.

2. Regarding the policy of mobilizing financial sources for development investment:

a/ Can Tho city may mobilize domestic investment capital by issuing municipal bonds or in other forms according to the provisions of law. The city's budget shall have to arrange financial sources for payment of debts and related expenses according to regulations.

b/ Can Tho city may mobilize foreign loan capital for execution of important projects and works which are to be funded with the city budget on the principle that, based on the projects approved by the People's Council of the city and written comments of the Finance Ministry, the Planning and Investment Ministry and the Vietnam State Bank, the People's Committee of Can Tho city shall submit its proposals to the Prime Minister for consideration and decision according to the mechanism under which the Government borrows foreign capital for providing sub-loans to the city for execution of projects and works at the request of the municipal People's Committee. The city shall allocate capital from its budget for repayment of foreign loans according to the provisions of law.

The total debit balance of capital sources mobilized for projects and works to be funded by the city budget specified at Points a and b above must not exceed 30% of the city budget's total capital construction investment capital set in the annual estimates decided by the People's Council of the city (excluding capital sources mobilized for investment in projects according to the provisions of law and irregular targeted additional allocations from the central budget to the city's budget for investment in projects).

c/ Within the size and capacity of its budget and in accordance with the provisions of law, Can Tho city may apply the mechanism of providing partial interest supports to organizations which borrow capital for investment in important projects capable of retrieving capital (investment in industrial parks; environmental, public sanitation and water drainage services, etc.).

d/ Priority shall be given in allocating to Can Tho city official development assistance (ODA) capital, which is borrowed by state budget for allocation to projects incapable of retrieving capital, for investment in important infrastructure projects funded by the city's budget. The city's budget shall allocate domestic capital to such projects.

e/ Regarding mobilization and efficient use of land use levies for socio-economic development investment in Can Tho city: on the basis of plannings approved by competent authorities, the city may advance the local budget and other mobilized capital sources according to regulations for investment in projects on ground clearance, compensation, population relocation, resettlement; investment in projects to build dwelling houses for resettlement; or investment in technical infrastructure works for creation of land funds, and thereby, to auction land use rights according to regulations, creating capital sources for development investment and payment of advanced and mobilized capital sources.

3. Regarding the receipt of aid:

Can Tho city may receive foreign non-refundable aids in unlimited amount, except those related to institution, policy, law, administrative reform or culture and information as provided for in Article 6 of the Prime Minister's Decision No. 64/2001/QD-TTg of April 26, 2001, on the Regulation on management and use of non-governmental aid.

Article 2.- For 2007 (the first year of the subsequent budget stabilization period), to assign the Ministry of Finance, the Ministry of Planning and Investment and the People's Committee of Can Tho city to prepare the city's budget estimates on the principle that Can Tho city's expenditure estimate for development investment must be equivalent to the development investment level of Hai Phong city or Da Nang city and regular expenditure estimates shall be calculated according to general norms, and report it to the Government for submission to the National Assembly and the National Assembly Standing Committee according to the provisions of the State Budget Law.

Article 3.- Apart from matters governed by this Decision, those related to the financial regime and state budget applicable to Can Tho city shall still comply with the provisions of the current State Budget Law and the Government's Decree No. 60/2003/ND-CP of June 6, 2003, detailing and guiding the implementation of the State Budget Law.

The Ministry of Finance shall assume the prime responsibility for, and coordinate with concerned agencies in, implementing and guiding the contents of this Decision in accordance with the provisions of law.

Article 4.- This Decision takes effect 15 days after its publication in "CONG BAO."

Article 5.- The Ministers of Finance; Planning and Investment; and Transport, the Governor of the State Bank of Vietnam, the president of the People's Committee of Can Tho city, and heads of concerned agencies shall have to implement this Decision.