Decree No. 129/2017/ND-CP dated November 16, 2017 of the Government on prescribing the management, use and exploitation of hydraulic-work infrastructure assets

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Decree No. 129/2017/ND-CP dated November 16, 2017 of the Government on prescribing the management, use and exploitation of hydraulic-work infrastructure assets
Issuing body: Government Effective date:
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Official number: 129/2017/ND-CP Signer: Nguyen Xuan Phuc
Type: Decree Expiry date: Updating
Issuing date: 16/11/2017 Effect status:
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Fields: Finance - Banking

SUMMARY

Enterprises allowed exploiting dams, reservoirs, pumping stations

On November 16, 2017, the Government issued the Decree No. 129/2017/ND-CP on prescribing the management, use and exploitation of hydraulic-work infrastructure assets.

In particular, all Hydraulic-work infrastructure assets(including dams (hydraulic-work dams and their attached auxiliary works), reservoirs (including main dams, spillways, sluices, reservoir beds) invested in or managed by the State shall step by step accurately and fully calculate expenses for use and maintenance of hydraulic-work infrastructure assets and for exploitation of such assets under the market mechanism.

The Decree details the methods of exploitation of hydraulic-work infrastructure assets invested in by the State: the State’s assignment of assets to units exploiting hydraulic-work infrastructure assets for exploitation; lease of the right to exploit hydraulic-work infrastructure assets;  definite-term transfer of the right to exploit hydraulic-work infrastructure assets; and other methods prescribed by law.

Big hydraulic works or particularly important hydraulic works shall be assigned to an enterprise for exploitation by the method of order placement or task assignment or another method prescribed in this Decree; hydraulic-work infrastructure assets shall be assigned to a unit exploiting hydraulic-work infrastructure assets for exploitation by the method of bidding or order placement or another method prescribed in this Decree.

The use of hydraulic-work infrastructure assets for commercial provision of products and services must not affect irrigation, water drainage, and provision of public hydraulic-work products and services.

This Decree takes effect on January 01, 2018.
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Effect status: Known

THEGOVERNMENT

 

THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness

No. 129/2017/ND-CP

 

Hanoi, November 16, 2017

 

DECREE

Prescribing the management, use and exploitation of hydraulic-work infrastructure assets[1]

 

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

Pursuant to the June 21, 2017 Law on Management and Use of Public Property;

Pursuant to the June 19, 2017 Law on Hydraulic Work;

At the proposal of the Minister of Finance;

The Government promulgates the Decree prescribing the management, use and exploitation of hydraulic-work infrastructure assets.

 

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Decree prescribes the management, use and exploitation of hydraulic-work infrastructure assets invested in or managed by the State.

Article 2.Subjects of application

1. State management agencies in charge of hydraulic work.

2. Agencies assigned to manage hydraulic-work infrastructure assets (below referred to as agencies assigned to manage assets).

3. Enterprises, grassroots hydraulic work organizations and individuals assigned to manage and exploit hydraulic-work infrastructure assets (below referred to as units exploiting hydraulic-work infrastructure assets).

4. Other related organizations and individuals.

Article 3.Interpretation of terms

1. Hydraulic-work infrastructure assets (including land attached to hydraulic works) invested in or managed by the State means public assets, including dams (hydraulic-work dams and their attached auxiliary works), reservoirs (including main dams, spillways, sluices, reservoir beds, intake sluices, discharge sluices, etc.), sluices, pumping stations, water delivery and transfer systems, embankments, and other auxiliary works serving hydraulic work management and exploitation (houses, stations, administration roads, monitoring devices, supplies warehouses and storing yards, land markers, and signboards).

2. Auxiliary works means works which serve the management, exploitation and protection of, and are not attached to, hydraulic works, including houses, stations, administration roads, monitoring devices, supplies warehouses and storing yards, land markers and signboards.

3. Agency assigned to manage assets means an agency that assists the Minister of Agriculture and Rural Development or a People’s Committee in performing the state management of hydraulic work.

4. Unit exploiting hydraulic-work infrastructure assets may be an enterprise, a grassroots hydraulic work organization or an individual that fully satisfies the conditions prescribed in the Law on Hydraulic Work and is assigned by the State to operate, exploit and protect hydraulic-work infrastructure assets.

5. Lease of the right to exploit hydraulic-work infrastructure assets means the State’s definite-term contractual transfer of the right to exploit assets to a unit exploiting hydraulic-work infrastructure assets for the latter to commercially operate hydraulic-work infrastructure and receive a corresponding remuneration.

6. Definite-term transfer of the right to exploit hydraulic-work infrastructure assets means the State’s definite-term contractual transfer of the right to exploit hydraulic-work infrastructure assets associated with upgrading and expanding them under an approved project to an eligible unit for exploiting the assets and receive remuneration.

Article 4.Principles of management, use and exploitation of hydraulic-work infrastructure assets

1. The State shall assign eligible entities to manage and exploit all of its invested or managed hydraulic-work infrastructure assets in accordance with law.

2. The state management of hydraulic-work infrastructure assets shall be performed in a unified manner, clearly defining the competence and responsibilities of state agencies and their coordination responsibility; and separating the state management function of state agencies from exploitation and business activities of units exploiting hydraulic-work infrastructure assets.

3. The State shall step by step accurately and fully calculate expenses for use and maintenance of hydraulic-work infrastructure assets and for exploitation of such assets under the market mechanism.

4. The State shall encourage the involvement of various sectors to diversify resources for the maintenance, development and exploitation of hydraulic-work infrastructure assets.

5. Hydraulic-work infrastructure assets shall be fully listed and accounted in kind and value; assets that are highly vulnerable to natural disasters, fire or otherforce majeurecircumstances shall be managed in terms of financial risks through insurance or another instrument in accordance with law.

6. The management, use and exploitation of hydraulic-work infrastructure assets shall be made public and transparent and placed under supervision, inspection, examination and audit. All violations of the law on property management and use shall be handled promptly and strictly in accordance with law.

 

Chapter II

MANAGEMENT, USE AND EXPLOITATION OF HYDRAULIC-WORK INFRASTRUCTURE ASSETS

Section 1

MANAGEMENT AND USE OF HYDRAULIC-WORK INFRASTRUCTURE ASSETS

Article 5.Assignment of hydraulic-work infrastructure assets for management

1. The Ministry of Agriculture and Rural Development or a provincial-level People’s Committee may decide to assign hydraulic-work infrastructure assets for management as follows:

a/ Particularly important hydraulic works or hydraulic works the exploitation and protection of which involve 2 or more provinces shall be assigned to the agency assigned to manage assets under the Ministry of Agriculture and Rural Development for management;

b/ Hydraulic-work infrastructure assets other than those specified at Point a, Clause 1 of this Article shall be assigned to the agency assigned to manage assets under the provincial-level People’s Committee or to a relevant district-level People’s Committee for management;

The Ministry of Agriculture and Rural Development shall guide how to identify particularly important hydraulic works and hydraulic works the exploitation and protection of which involve 2 or more provinces.

2. Order and procedures for assignment of hydraulic-work infrastructure assets for management:

a/ Within 90 days from the effective date of this Decree (for existing hydraulic-work infrastructure assets), or 30 days from the date hydraulic-work infrastructure assets are completed and handed over for use (for newly invested or purchased hydraulic-work infrastructure assets), an agency assigned to manage assets shall assume the prime responsibility for, and coordinate with related agencies in, completing the review and classification of these hydraulic-work infrastructure assets and make a plan on their assignment and report it to the Minister of Agriculture and Rural Development, chairperson of the provincial-level People’s Committee or chairperson of the decentralized district-level People’s Committee. A dossier for asset assignment must comprise:

- A written request for assignment of hydraulic-work infrastructure assets for management (specifying the agency assigned to manage assets): 1 original;

- A written record on the inventory and classification of the assets or a written record on the assignment of the assets for use: 1 original;

- A list of the assets (type and quantity; status; historical cost and residual value (if any)): 1 original;

- Papers relating to the assets: 1 copy each.

b/ Within 30 days after receiving a complete and valid dossier, the Minister of Agriculture and Rural Development, chairperson of the provincial-level People’s Committee or chairperson of the decentralized district-level People’s Committee shall issue a decision to assign the assets to the agency assigned to manage assets for management under regulations. Such decision must have the following principal contents:

- Name of the agency assigned to manage the assets;

- A list of assets (type and quantity, status, historical cost, and residual value (if any)): 1 original;

- Implementation responsibility.

c/ Within 30 days from the date of issuance of an asset assignment decision of the Minister of Agriculture and Rural Development, chairperson of the provincial-level People’s Committee or chairperson of the decentralized district-level People’s Committee, a written record shall be made for the handover and receipt of hydraulic-work infrastructure assets according to Form No. 01/TSTL-BB in the Appendix to this Decree. The management of such assets is specified below:

- Assets currently managed by the agency assigned to manage assets will continue to be managed by such agency under regulations;

- Assets currently managed by another agency or unit shall be assigned to the agency assigned to manage assets.

Article 6.Assignment of hydraulic-work infrastructure assets for exploitation

1. An agency assigned to manage assets shall report to the Minister of Agriculture and Rural Development, chairperson of the provincial-level People’s Committee or chairperson of the decentralized district-level People’s Committee to decide to assign hydraulic-work infrastructure assets for exploitation as follows:

a/ Big hydraulic works or particularly important hydraulic works shall be assigned to an enterprise defined at Point a, Clause 3, Article 23 of the Law on Hydraulic Work for exploitation by the method of order placement or task assignment or another method prescribed in this Decree;

b/ Hydraulic-work infrastructure assets other than those specified at Point a of this Clause shall be assigned to a unit exploiting hydraulic-work infrastructure assets for exploitation by the method of bidding or order placement or another method prescribed in this Decree.

2. The identification of big hydraulic works or particularly important hydraulic works for assignment to enterprises for management and exploitation under Point a, Clause 3, Article 23 of the Law on Hydraulic Work must comply with guidance of the Ministry of Agriculture and Rural Development.

Article 7.Management of hydraulic-work infrastructure assets already converted into state capital at enterprises

The assignment of hydraulic-work infrastructure assets for management, and the management and use of hydraulic-work infrastructure assets already converted into state capital portions at enterprises must comply with the law on management and use of state capital invested in production and business at enterprises, law on hydraulic work and relevant laws.

Article 8.Use of hydraulic-work infrastructure assets

1. Hydraulic-work infrastructure assets shall be used for proper purposes, ensuring irrigation and water drainage requirements.

2. The use of hydraulic-work infrastructure assets for commercial provision of products and services must not affect irrigation, water drainage, and provision of public hydraulic-work products and services.

Section 2

DOSSIERS AND ACCOUNTING OF HYDRAULIC-WORK INFRASTRUCTURE ASSETS

Article 9.Dossiers for management of hydraulic-work infrastructure assets

1. Dossiers for management of hydraulic-work infrastructure assets include:

a/ Dossiers relating to the creation of and change in hydraulic-work infrastructure assets as prescribed by the Ministry of Agriculture and Rural Development;

b/ Reports on the management and use of hydraulic-work infrastructure assets;

c/ The database on hydraulic-work infrastructure assets.

2. An agency assigned to manage assets shall make a dossier of assets under its management. For big hydraulic works or particularly important hydraulic works assigned to an enterprise for management and exploitation under Point a, Clause 3, Article 23 of the Law on Hydraulic Work, such enterprise shall make a dossier of the assets under Clause 1 of this Article and send it to the agency assigned to manage assets.

3. An agency assigned to manage assets shall manage assets, fully preserve dossiers of assets under its management, and send reports to the Ministry of Agriculture and Rural Development, People’s Committees at all levels and competent state agencies in accordance with this Decree.

Article 10.Accounting of hydraulic-work infrastructure assets

1. Hydraulic-work infrastructure assets being independent structures or systems of separate hydraulic-work infrastructure assets that are interconnected to perform one or more than one function constitute a separate item to be recorded in account books.

In case a system of hydraulic-work infrastructure assets is assigned to different agencies for management, the part of assets handed over to each agency constitutes a separate item to be recorded in account books.

2. An agency assigned to manage assets shall open an account book for hydraulic-work infrastructure assets under its management in accordance with the accounting law.

3. The historical cost of hydraulic-work infrastructure assets shall be determined on the following principles:

a/ For hydraulic-work infrastructure assets which are currently in use since before the effective date of this Decree:

- If their historical cost or residual value is available, such cost or value shall be recorded in account books;

- If their historical cost or residual value is unavailable, such cost or value shall be determined according to the conventional price set by the Minister of Agriculture and Rural Development on the basis of the value of works of equivalent technical grade;

b/ For hydraulic-work infrastructure assets that are completed (newly built) and put into use on or after the effective date of this Decree, their value to be recorded in account books is their approved cost estimate;

c/ For hydraulic-work infrastructure assets that are upgraded or expanded in the course of management and use under an approved project, the finalized value of such project shall be added to the value of assets;

d/ For newly built hydraulic-work infrastructure assets that have been completed and put into use without approved finalized value, their temporarily calculated historical cost may be recorded in account books. In this case, the temporarily calculated historical cost shall be selected in the following order of priority: the value requested for finalization; the value determined according to the takeover test record between parties A and B; and the approved cost estimate of the project. When the finalized value is approved, the accounting agency shall adjust the accounted value in accordance with the accounting law.

4. The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development in, prescribing the accounting and depreciation of hydraulic-work infrastructure assets.

 

Section 3

MAINTENANCE OF HYDRAULIC-WORK INFRASTRUCTURE ASSETS

Article 11.Maintenance of hydraulic-work infrastructure assets

1. Hydraulic-work infrastructure assets shall be maintained according to relevant standards, norms and technical processes in order to ensure their technical status and normal operation and safety during use.

2. The maintenance of hydraulic-work infrastructure assets covers one, several or all of the following activities: inspection, monitoring, quality testing, maintenance and (regular and periodical) repair of assets, but does not cover altering the functions or size of assets.

3. The maintenance of hydraulic-work infrastructure assets must comply with relevant economic-technical norms, technical maintenance processes and management prescribed at Points b and h, Clause 2, Article 56 of the Law on Hydraulic Work.

4. An agency assigned to manage assets shall periodically make a list and a plan on maintenance of hydraulic-work infrastructure assets under its management and submit them to the Ministry of Agriculture and Rural Development for approval, for assets managed by central authorities, or to the related provincial-level People’s Committee for approval, for assets managed by local authorities, and post them on its website on January 1 every year. Such list and plan must have the following principal contents:

a/ Types of hydraulic-work infrastructure assets;

b/ Volumes of jobs to be performed; unit cost for each volume; total fund; funding sources; and methods of takeover test and payment;

c/ Incentives (if any) for organizations and individuals assigned to maintain the assets;

d/ Other relevant contents.

Article 12.Forms of maintenance of hydraulic-work infrastructure assets

1. Quality-based maintenance

a/ Quality-based maintenance means that the State assigns an enterprise to maintain hydraulic-work infrastructure assets according to relevant quality standards within a specified period and with a certain remuneration stated in an economic contract;

b/ Quality-based maintenance shall apply to regular maintenance of hydraulic-work infrastructure assets;

c/ An agency assigned to manage assets shall determine the unit cost for regular maintenance of each asset under its management, and submit it to a competent authority for approval. If bidding is organized to select an enterprise to perform the maintenance, such unit cost is the price of the bidding package;

d/ The Ministry of Agriculture and Rural Development shall prescribe criteria for supervision and takeover test of results of regular quality-based maintenance of hydraulic-work infrastructure assets.

2. Performance-based maintenance

a/ Performance-based maintenance of hydraulic-work infrastructure assets means that the State assigns an enterprise to maintain hydraulic-work infrastructure assets and pays to this enterprise a sum of money based on the performed tasks;

b/ Performance-based maintenance shall apply to periodical and extraordinary repairs.

Article 13.Selection of organizations and individuals to maintain hydraulic-work infrastructure assets

1. An agency assigned to manage assets may hire an organization or individual that fully satisfies the law-prescribed capacity conditions to maintain hydraulic-work infrastructure assets. In case hydraulic-work infrastructure assets are assigned to a state enterprise for management and exploitation under Point a, Clause 3, Article 23 of the Law on Hydraulic Work, this enterprise shall maintain them by itself or may hire another organization or individual to do so in accordance with Clause 2 of this Article.

2. The selection of organizations and individuals to maintain hydraulic-work infrastructure assets must comply with the bidding law, except cases of order placement or task assignment by the State under the Government’s regulations on production and provision of public products and services or assignment of the maintenance to construction contractors in accordance with law.

3. In case of lease or definite-term transfer of the right to exploit hydraulic-work infrastructure assets to organizations and individuals in accordance with law, the maintenance of such assets must comply with the signed contracts.

Article 14.Funds for maintenance of hydraulic-work infrastructure assets

1. Funds for maintenance of hydraulic-work infrastructure assets shall be allocated from revenues from the exploitation of hydraulic-work infrastructure assets, the state budget, and other lawful funding sources of agencies assigned to manage assets in accordance with law, except:

a/ Hydraulic-work infrastructure assets already converted into state capital portions at enterprises;

b/ Hydraulic-work infrastructure assets to be maintained by transferees under definite-term transfer contracts.

2. The formulation and approval of plans on and cost estimates for maintenance of hydraulic-work infrastructure assets must comply with the law on the state budget and relevant laws.

Section 4

EXPLOITATION OF HYDRAULIC-WORK INFRASTRUCTURE ASSETS

Article 15.Exploitation of hydraulic-work infrastructure assets

1. Methods of exploitation of hydraulic-work infrastructure assets invested in by the State:

a/ The State’s assignment of assets to units exploiting hydraulic-work infrastructure assets for exploitation under Clause 3, Article 23 of the Law on Hydraulic Work and Articles 16 and 17 of this Decree;

b/ Lease of the right to exploit hydraulic-work infrastructure assets under Article 18 of this Decree;

c/ Definite-term transfer of the right to exploit hydraulic-work infrastructure assets under Article 19 of this Decree;

d/ Other methods prescribed by law.

2. Based on the relevant development master plan, investment plan, socio-economic development requirements, management requirements, capacity to exploit hydraulic-work infrastructure assets, and the methods specified in Clause 1 of this Article, an agency assigned to manage assets shall prepare a plan on exploitation of assets, and report it to the Ministry of Agriculture and Rural Development, provincial-level People’s Committee or decentralized district-level People’s Committee for decision or submission to a competent authority for decision.

3. The management, use and exploitation of hydraulic-work infrastructure assets under signed contracts approved by a competent agency or person before the effective date of this Decree will continue to comply with these contracts. If such management, use and exploitation are contrary to law, the Ministry of Agriculture and Rural Development or provincial-level People’s Committees shall direct agencies assigned to manage assets to make adjustments in accordance with this Decree.

Article 16.Exploitation of hydraulic-work infrastructure assets for provision of public hydraulic-work products and services

1. Based on orders placed or tasks assigned by agencies assigned to manage assets, units exploiting hydraulic-work infrastructure assets shall provide public hydraulic-work products and services in accordance with law.

2. Prices of public hydraulic-work products and services must comply with Point a, Clause 2, Article 35 of the Law on Hydraulic Work and relevant laws.

3. Based on the cost estimates and prices of public hydraulic-work products and services decided by competent state agencies under Clause 2 of this Article, agencies assigned to manage assets shall sign contracts on placement of orders or assignment of tasks with units exploiting hydraulic-work infrastructure assets to provide public hydraulic-work products and services.

4. The payment for public hydraulic-work products and services provided under placed orders or assigned tasks must comply with the signed contracts or the law on the state budget, respectively.

Article 17.Exploitation of hydraulic-work infrastructure assets for provision of other hydraulic-work products and services

1. The use of hydraulic-work infrastructure assets for provision of other hydraulic-work products and services under Clause 3, Article 30 of the Law on Hydraulic Work must not affect the provision of public hydraulic-work products and services.

2. Other hydraulic-work products and services shall be provided under orders placed by the State or through bidding.

3. Prices of other hydraulic-work products and services must comply with Point b, Clause 2, Article 35 of the Law on Hydraulic Work and relevant laws.

4. The payment for other hydraulic-work products and services must comply with the signed contracts.

Article 18.Lease of the right to exploit hydraulic-work infrastructure assets

1. Lease of the right to exploit hydraulic-work infrastructure assets shall apply to assets other than big hydraulic works or particularly important hydraulic works also serving public duties, national defense and security purposes or disaster prevention and control, and shall be effected through auction.

2. Competence to approve schemes on lease of the right to exploit hydraulic-work infrastructure assets:

a/ The Minister of Agriculture and Rural Development shall approve, or decentralize the competence to approve schemes on lease of the right to exploit hydraulic-work infrastructure assets managed by central authorities;

b/ Provincial-level People’s Councils shall decentralize the competence to approve schemes on lease of the right to exploit hydraulic-work infrastructure assets managed by local authorities.

3. Order and procedures for approving a scheme on lease of the right to exploit hydraulic-work infrastructure assets

a/ An agency assigned to manage assets shall formulate a scheme on lease of the right to exploit hydraulic-work infrastructure assets according to Form No. 07/TSTL-DA in the Appendix to this Decree and submit it to the Ministry of Agriculture and Rural Development, provincial-level People’s Committee or decentralized district-level People’s Committee.

A dossier for approval of a scheme on lease of the right to exploit hydraulic-work infrastructure assets must comprise:

- A written request for approval of a scheme on lease of the right to exploit hydraulic-work infrastructure assets: 1 original;

- The scheme: 1 original;

- Other relevant papers (if any): 1 copy each.

b/ For hydraulic-work infrastructure assets managed by central authorities, within 30 days after receiving a complete and valid dossier, the Ministry of Agriculture and Rural Development shall consider and give opinions on the scheme, and send a dossier of consultation to the Ministry of Finance and provincial-level People’s Committee of the place where the assets are located. Such dossier must comprise:

- A written request for opinion, made by the Ministry of Agriculture and Rural Development: 1 original;

- The scheme on lease of the right to exploit assets: 1 original;

- Other relevant papers (if any); 1 copy each.

Within 30 days after receiving a complete and valid dossier, the Ministry of Finance and provincial-level People’s Committee of the place where the assets are located shall give opinions on:

- The completeness and validity of the dossier;

- The scheme’s necessity and conformity with the lessee’s functions and tasks and the law on management and use of public property and relevant laws;

- The rationality of the bases for and method of determination of the rental;

- Contents to be modified and supplemented.

Within 30 days after receiving written opinions from the Ministry of Finance and provincial-level People’s Committee of the place where the assets are located, the Minister of Agriculture and Rural Development shall direct the scheme-formulating agency to finalize the scheme in order to be approved or shall issue a written reply if the scheme is unsatisfactory.

c/ For hydraulic-work infrastructure assets managed by local authorities, within 60 days after receiving a complete and valid dossier, the related provincial-level People’s Committee or decentralized district-level People’s Committee shall approve the scheme or issue a written reply if the scheme is unsatisfactory.

Public property management agencies defined in Clause 3, Article 19 of the Law on Management and Use of Public Property shall appraise a scheme before it is approved by the provincial-level People’s Committee or district-level People’s Committee.

d/ Within 60 days after a scheme is approved, an agency assigned to manage assets shall select the lessee of the right to exploit hydraulic-work infrastructure assets in accordance with the law on property auction and relevant specialized laws. If the auction is unsuccessful, another auction shall be held. After 2 unsuccessful auctions, if only one organization or person registers to participate in a subsequent auction, the agency assigned to manage assets shall propose the authority competent to approve the scheme to lease the right to exploit hydraulic-work infrastructure assets to such participant.

The agency assigned to manage assets shall sign a contract on lease of the right to exploit hydraulic-work infrastructure assets with the qualified lessee. Such contract must have the following principal contents:

- Information on the lessor;

- Information on the lessee;

- List of the leased assets;

- Lease term; rental; payment method and time limit; rental adjustment principles; responsibility for maintenance; and other necessary contents;

- Rights and obligations of the parties; responsibilities of the parties in case of termination of the contract ahead of schedule as prescribed in Clause 6 of this Article and relevant laws;

- Implementation responsibility.

4. Rights and obligations of the lessee of the right to exploit hydraulic-work infrastructure assets under contract:

a/ Rights:

- To exploit the assets in accordance with law and the signed contract;

- To decide on methods and measures to effectively exploit the assets;

- To have its/his/her lawful rights and interests protected by the State; to lodge complaints and initiate lawsuits in accordance with law;

- To maintain the assets according to the signed contract.

b/ Obligations:

- To preserve the leased assets (including land and water surface); to avoid loss, encroachment and other violations;

- To use the leased assets for proper purposes; to refrain from transferring, selling, donating, mortgaging or contributing as capital the leased assets;

- To comply with the method and time limit for rental payment;

- To return the leased assets in the case specified in Clause 5 of this Article;

- To take responsibility before law for breach of the signed contract.

5. Within the validity term of a contract on lease of the right to exploit hydraulic-work infrastructure assets, if the lessee voluntarily returns the assets or breaches the contract or the State needs to recover the assets for national defense or security purpose, or national or public interests, the Minister of Agriculture and Rural Development, chairperson of the provincial-level People’s Committee or chairperson of decentralized district-level People’s Committee shall decide according to his/her competence, or propose a competent authority to decide to recover the leased assets.

The handling of rights and obligations (if any) of related parties in the cases specified in this Clause must comply with the contract.

Article 19.Definite-term transfer of the right to exploit hydraulic-work infrastructure assets

1. Definite-term transfer of the right to exploit hydraulic-work infrastructure assets shall apply to assets other than big hydraulic works or particularly important hydraulic works also serving public duties, national defense and security purposes or disaster prevention and control, and shall be realized through auction. The criteria for selecting organizations and individuals to participate in auction include:

a/ Their capacity and experience in the field of investment and asset exploitation in accordance with the law on hydraulic work and relevant laws;

b/ Their financial capacity for implementing the investment project in accordance with law.

2. The term of transfer of the right to exploit hydraulic-work infrastructure assets shall be specified in each transfer contract but must not exceed 50 years.

3. Order and procedures for approving a scheme on definite-term transfer of the right to exploit hydraulic-work infrastructure assets

a/ An agency assigned to manage assets shall formulate a scheme on definite-term transfer of the right to exploit hydraulic-work infrastructure assets according to Form No. 07/TSTL-DA in the Appendix to this Decree and send a dossier for transfer to the Ministry of Agriculture and Rural Development or provincial-level People’s Committee. Such dossier must comprise:

- A written request for definite-term transfer of the right to exploit hydraulic-work infrastructure assets: 1 original;

- The scheme: 1 original;

- Other relevant papers (if any): 1 copy each.

b/ Within 30 days after receiving the scheme, the Ministry of Agriculture and Rural Development or provincial-level People’s Committee shall consider and give opinions on the scheme and send a dossier for consultation to the Ministry of Finance and related agencies. Such dossier must comprise:

- A written request for opinion (enclosed with the draft document on the opinion of the agency assigned to manage assets): 1 original;

- The scheme: 1 original;

- Other relevant papers (if any): 1 copy each.

c/ Within 30 days after receiving a complete and valid dossier, the Ministry of Finance and related agencies shall give their opinions on:

- Validity and completeness of the dossier;

- The scheme’s necessity and conformity with the transferee’s functions and tasks and the law on management and use of public property and relevant laws;

- Rationality of the bases for and methods of determination of the transfer price;

- Contents to be modified and supplemented.

d/ Within 30 days after receiving written opinions from the Ministry of Finance and related agencies, the Ministry of Agriculture and Rural Development or provincial-level People’s Committee shall direct the scheme-formulating agency to finalize the scheme before submitting it to the Minister of Agriculture and Rural Development or chairperson of the provincial-level People’s Committee for submission to the Prime Minister for approval, or issue a written reply if the scheme is unsatisfactory.

A dossier of a scheme submitted to the Prime Minister for approval must comprise:

- A written request for definite-term transfer of the right to exploit hydraulic-work infrastructure assets: 1 original;

- Written opinions of the Ministry of Finance and related agencies: 1 copy each;

- The scheme: 1 original;

- Other relevant papers (if any): 1 copy each.

dd/ Based on the dossier prescribed at Point d of this Clause, the Prime Minister shall consider and approve the scheme.

e/ Within 60 days after the Prime Minister issues a decision approving a scheme on definite-term transfer of the right to exploit hydraulic-work infrastructure assets, the Ministry of Agriculture and Rural Development or provincial-level People’s Committee shall select a transferee in accordance with the law on property auction and relevant specialized law and sign a transfer contract under regulations. A transfer contract must have the following principal contents:

- Information about the transferor;

- Information about the transferee;

- List of the transferred assets;

- Transfer term; transfer price; payment method; transferee’s responsibility for asset maintenance; work items to be invested and upgraded; and other necessary contents;

- Rights and obligations of the parties;

- Implementation responsibility.

g/ Within 90 days after signing a contract, the transferee shall pay the transfer charge to the agency assigned to manage assets. Within 3 working days after receiving the charge, this agency shall remit it into a custody account.

Past the time limit specified at this Point, if the transferee has not fully paid the transfer charge stated in the signed contract, the agency assigned to manage assets shall send a written request, enclosed with a copy of the transfer contract and payment receipt (if any) of the transferee, to the provincial-level Tax Department of the place where the assets are located for the latter to determine, and issue a notice of, a late-payment interest in accordance with the law on tax administration.

The time limit for payment and the payment of the late-payment interest shall be stated in the auction rule and asset transfer contract.

4. Rights and obligations of the transferee of the right to exploit hydraulic-work infrastructure assets:

a/ Rights:

- To use and commercially operate the assets under the signed contract;

- To enjoy the State’s incentives on asset construction investment in accordance with the investment law and relevant laws;

- To exercise the rights to the assets and use the transferred value for raising funds in accordance with law;

- To lodge complaints and initiate lawsuits in accordance with law if its/his/her rights and interests are infringed upon.

b/ Obligations:

- To invest in projects under planning, meeting schedule and quality requirements; to maintain assets according to technical requirements and signed contract;

- To take responsibility before law for breaching the signed contract.

5. Within the validity term of a contract on definite-term transfer of the right to exploit hydraulic-work infrastructure assets, in case the State needs to recover the assets for national defense or security purposes or national or public interests, the transferee shall return the assets to the State and are entitled to compensation and support under regulations.

In case the transferee goes bankrupt and is unable to perform the signed contract, it shall return the assets to the State for management, use and exploitation under Clause 1, Article 5 of this Decree; in this case, the State will not compensate for the value of the right to exploit assets for the remaining period.

Article 20.Rental or definite-term transfer price of the right to exploit hydraulic-work infrastructure assets

1. Rental or definite-term transfer price of the right to exploit hydraulic-work infrastructure assets is a sum of money payable by the lessor or transferee to the State in order to use or operate the assets under the signed contract.

2. Rental may be a fixed rental or variable rental or may include both.

a/ Fixed rental shall be determined based on the depreciation of assets, payment for loan principal and interest (if any), and asset management and exploitation expense;

b/ Variable rental shall be determined as a percentage (%) of the annual turnover from the exploitation of the leased assets.

3. The reserve price for auction for leasing the right to exploit hydraulic-work infrastructure assets is specified below:

a/ In case of fixed rental, the reserve price will be fixed;

b/ In case of variable rental, the reserve price will be variable;

c/ In case of both fixed and variable rentals, a competent authority shall approve a scheme to select the fixed rental or variable rental for determining the reserve price for auction on the principle that the fixed rental shall be preferred when all elements for rental determination are available.

4. The reserve price of the definite-term transfer of the right to exploit hydraulic-work infrastructure assets shall be determined by the method of comparison or revenue-expenditure method.

5. The Minister of Finance shall detail this Article.

Article 21.Exploitation of land areas and water surface to generate funds for development of hydraulic-work infrastructure assets

1. The exploitation of land areas to generate funds for hydraulic-work infrastructure development must comply with Article 118 of the Law on Management and Use of Public Property.

2. An agency assigned to manage assets shall formulate a scheme according to Form No. 07/TSTL-DA in the Appendix to this Decree and submit it to:

a/ The Ministry of Agriculture and Rural Development for reporting to the Prime Minister for approval, for projects managed by central authorities;

b/ The concerned provincial-level People’s Committee for approval, for projects managed by local authorities.

3. A scheme must have the following principal contents:

a/ Bases for and necessity of the scheme;

b/ Land area to be exploited;

c/ Form of land use;

d/ Estimated revenue from the exploitation of the land area;

dd/ Total investment in the project on hydraulic-work infrastructure construction;

e/ Other information relating to the exploitation of the land area;

g/ Implementation responsibility.

Article 22.Management and use of revenues from provision of hydraulic-work products and services

Revenues from the provision of hydraulic-work products and services shall, after subtracting relevant expenses, be divided and used in accordance with Article 38 of the Law on Hydraulic Work.

Article 23.Management and use of revenues from the lease or definite-term transfer of the right to exploit hydraulic-work infrastructure assets

1. Revenues from the lease or definite-term transfer of the right to exploit hydraulic-work infrastructure assets shall be remitted into a State Treasury custody account with its holder being:

a/ An agency assigned to manage public property defined in Clause 1, Article 19 of the Law on Management and Use of Public Property, for assets the exploitation of which is decided by the Prime Minister;

b/ The provincial-level Department of Finance, for assets the exploitation of which is decided by the Ministry of Agriculture and Rural Development, provincial-level People’s Committee or decentralized district-level People’s Committee and which are located in the locality.

2. Expenses relating to the lease or definite-term transfer of the right to exploit hydraulic-work infrastructure assets shall be included in the cost estimates to be approved by the Ministry of Agriculture and Rural Development, for assets managed by central authorities, or the provincial-level People’s Committee or decentralized district-level People’s Committee, for assets managed by local authorities. These expenses include:

a/ Expense for inventory, rental determination, organization of the lease, and other relevant expenses, in case of lease of the right to exploit hydraulic-work infrastructure assets;

b/ Expense for inventory, determination of reserve price, organization of auction, and other relevant expenses, in case of definite-term transfer of the right to exploit hydraulic-work infrastructure assets.

3. The estimation of expenses and order and procedures for payment for the handling of hydraulic-work infrastructure assets must comply with Article 31 of this Decree.

4. Quarterly, the custody account holder shall, after having paid relevant expenses, remit the remainder of the revenues from the asset exploitation into the state budget, and may use it in accordance with the law on the state budget, law on management and use of public property, law on hydraulic work, and relevant laws.

Section 5

HANDLING OF HYDRAULIC-WORK INFRASTRUCTURE ASSETS

Article 24.Forms of handling hydraulic-work infrastructure assets

1. Recovery of assets.

2. Transfer of assets.

3. Sale of assets.

4. Use of assets as payments to investors that implement construction investment projects in the form of build-transfer contracts.

5. Liquidation of assets.

6. Handling of assets in case they are lost or destroyed.

7. Other forms as prescribed by law.

Article 25.Recovery of hydraulic-work infrastructure assets

1. Hydraulic-work infrastructure assets shall be recovered in the following cases:

a/ There is a change in the relevant master plan or management decentralization;

b/ The assets are assigned to improper entities or used in contravention of regulations;

c/ The assets have been assigned but are no longer needed or their exploitation is ineffective;

d/ Other cases as prescribed by law.

2. Competence to decide on the recovery:

a/ The Minister of Finance shall decide to recover land-attached hydraulic-work infrastructure assets managed by central authorities;

b/ The Minister of Agriculture and Rural Development shall decide to recover hydraulic-work infrastructure assets other than those specified at Point a of this Clause which are managed by central authorities;

c/ Provincial-level People’s Councils shall decentralize the competence to decide on the recovery of assets managed by local authorities.

3. Recovered hydraulic-work infrastructure assets shall be:

a/ Transferred under Article 26 of this Decree;

b/ Sold under Article 27 of this Decree;

c/ Assigned to eligible entities for management under Article 5 of this Decree.

4. Order and procedures for recovery of hydraulic-work infrastructure assets in case they are returned on a voluntary basis

a/ An agency assigned to manage assets shall make a dossier for reporting to the Ministry of Agriculture and Rural Development, for assets managed by central authorities, or to provincial-level People’s Committee concerned, for assets managed by the local authority, for the latter to decide on the recovery of the assets according to its competence. A dossier for asset recovery must comprise:

- A written request for return of assets, made by the unit assigned to exploit the assets: 1 original;

- A written request made by the agency assigned to manage assets: 1 original;

- A list of assets to be recovered (type, quantity, status, historical cost and residual value), made according to Form No. 06/TSTL-DM in the Appendix to this Decree: 1 original;

- Other relevant papers: 1 copy each.

b/ Within 30 days after receiving a complete and valid dossier for recovery of hydraulic-work infrastructure assets, a competent authority defined in Clause 2 of this Article shall issue a decision on the recovery, which must have the following principal contents:

- Name of the unit assigned to exploit hydraulic-work infrastructure assets to be recovered;

- A list of assets to be recovered (type, quantity, status, historical cost and residual value);

- Reason for the recovery;

- Implementation responsibility.

c/ Within 30 days after a competent authority issues a decision on recovery of hydraulic-work infrastructure assets, the agency assigned to manage assets shall:

- Receive the recovered assets under the decision of a competent authority defined in Clause 2 of this Article; preserve, protect, maintain and repair the assets pending their handling or authorize the entity having the assets recovered to do so. A record shall be made for the assignment of assets made according to Form No. 01/TSTL-BB in the Appendix to this Decree;

- Make a plan on handling and exploitation of the recovered assets and submit it to a competent authority for approval under Clause 3 of this Article; and organize the handling and exploitation of the assets under the approved plan.

5. Order and procedures for recovery of hydraulic-work infrastructure assets in cases other than those specified in Clause 4 of this Article

a/ Based on the competent authority’s decision, the Ministry of Agriculture and Rural Development, for assets managed by central authorities, or a provincial-level People’s Committee, for assets managed by local authorities, shall consider and decide to recover assets according to its competence;

b/ The principal contents of a decision on asset recovery and responsibilities of the agency assigned to manage assets must comply with Points b and c, Clause 4 of this Article.

Article 26.Transfer of hydraulic-work infrastructure assets

1. Hydraulic-work infrastructure assets shall be transferred in the following cases:

a/ There is a change in management agency, management decentralization or asset classification;

b/ The assets have been assigned but are no longer needed or their exploitation is ineffective;

c/ Other cases as decided by a competent agency or person defined in Clause 2 of this Article.

2. Competence to decide on the transfer:

a/ The Prime Minister shall decide to transfer hydraulic-work infrastructure assets from an agency assigned to manage assets to an enterprise managing and exploiting hydraulic-work infrastructure assets defined at Point a, Clause 3, Article 23 of the Law on Hydraulic Work by accounting them as an increase in state capital invested in that enterprise;

b/ The Minister of Finance shall decide to transfer hydraulic-work infrastructure assets between central and local authorities;

c/ The Minister of Agriculture and Rural Development or provincial-level People’s Council shall decide on, or decentralize, the transfer of hydraulic-work infrastructure assets between agencies and units under his/her/its management, except the case prescribed at Point a, Clause 2 of this Article.

3. Order and procedures for transfer of hydraulic-work infrastructure assets:

a/ When wishing to transfer its hydraulic-work infrastructure assets, an agency assigned to manage assets shall make a dossier of request for asset transfer and send it to the Ministry of Agriculture and Rural Development or provincial-level People’s Committee. A dossier must comprise:

- A written request for transfer of assets, made by the agency assigned to manage assets: 1 original;

- A written request for receipt of assets, made by the expected recipient of assets: 1 original;

- A written request for transfer and receipt of assets, made by the Ministry of Agriculture and Rural Development or provincial-level People’s Committee in the case specified at Point a or b, Clause 2 of this Article: 1 original;

- A list of assets to be transferred (type, quantity, historical cost, residual value, current use purpose and use purpose after the transfer if the transfer involves the change of the assets’ utilities), made according to Form No. 06/TSTL-DM in the Appendix in this Decree: 1 original;

- Other relevant papers (if any): 1 copy each.

b/ Within 30 days after receiving a complete and valid dossier for transfer of hydraulic-work infrastructure assets, a competent authority defined in Clause 2 of this Article shall decide on the transfer of assets or issue a written reply if the request for transfer is unreasonable.

In case the transfer of hydraulic-work infrastructure assets falls within the deciding competence of the Prime Minister as prescribed in Clause 2 of this Article, the Ministry of Finance shall, at the proposal of the Ministry of Agriculture and Rural Development or provincial-level People’s Committee, report the case to the Prime Minister for decision.

c/ A decision on asset transfer must have the following principal contents:

- Agency or unit having its assets transferred;

- Asset recipient;

- A list of transferred assets (type, quantity, historical cost, residual value, current use purpose and use purpose after the transfer if the transfer involves change of the assets’ utilities);

- Reason for the transfer;

- Implementation responsibility.

d/ Within 30 days after a competent authority issues a decision on asset transfer, the agency or unit having the assets and asset recipient shall:

- Make a record for the handover and receipt of assets according to Form No. 01/TSTL-BB in the Appendix in this Decree;

- Account an increase or a decrease of assets under the current accounting regime;

- Report on changes in assets under Article 25 of this Decree.

4. Reasonable expenses directly related to the handover and receipt of assets shall be paid by the asset recipient under regulations. It is not permitted to make payment for the value of assets in case of transferring infrastructure assets.

Article 27.Sale of hydraulic-work infrastructure assets

1. Sale of hydraulic-work infrastructure assets shall apply in the following cases:

a/ The assets recovered or liquidated under Article 25 or 29 of this Decree are sold;

b/ The land use purpose is changed together with the change of the assets’ utilities under an approved plan.

2. Competence to decide on the sale of hydraulic-work infrastructure assets

a/ The Prime Minister shall decide on the sale of land-attached hydraulic-work infrastructure assets managed by central authorities at the request of the Minister of Finance based on the proposal of the Minister of Agriculture and Rural Development and the opinion of the provincial-level People’s Committee of the place where the assets are located;

b/ The Minister of Agriculture and Rural Development shall decide or decentralize the competence to decide on the sale of hydraulic-work infrastructure assets not attached to land under his/her management;

c/ The provincial-level People’s Council concerned shall decide or decentralize the competence to decide on the sale of hydraulic-work infrastructure assets under its management. For hydraulic-work infrastructure assets attached to land or water surface, the provincial-level People’s Council shall decentralize the chairperson of the provincial-level People’s Committee to decide on their sale.

3. The sale of hydraulic-work infrastructure assets must comply with the law on property auction and law on management and use of public property.

4. Order and procedures for sale of hydraulic-work infrastructure assets not attached to land or water surface

a/ An agency assigned to manage assets shall make a dossier of request for sale of hydraulic-work infrastructure assets and send it to a competent authority defined in Clause 2 of this Article for consideration and decision. A dossier must comprise:

- A written request for sale of assets, made by the agency assigned to manage assets: 1 original;

- A written request for sale of assets, made by the superior management agency: 1 original;

- A list of assets to be sold (type, quantity, status, historical cost, residual value, reason for sale, and current use purpose), made according to Form No. 06/TSTL-DM in the Appendix in this Decree: 1 original;

- A paper stating the specialized agency’s opinions on the land use master plan (in case of selling assets attached to land or water surface): 1 copy.

b/ Within 30 days after receiving a complete and valid dossier for sale of hydraulic-work infrastructure assets, a competent authority shall issue a decision on the sale or issue a written reply if the request is unreasonable. Such decision must have the following principal contents:

- Name of the agency assigned to manage assets;

- A list of to-be-sold assets (type, quantity, historical cost, and residual value according to account books);

- Method of asset sale;

- Management and use of the proceeds from the sale;

- Implementation responsibility and period.

c/ Within 60 days after the competent authority issues a decision on the asset sale, the agency assigned to manage assets shall sell the assets in accordance with the law on property auction;

d/ Within 90 days after signing a contract on purchase and sale of auctioned assets, the successful bidder shall make payment to the agency assigned to manage assets. This agency shall remit the payment into the custody account within 3 working days after receiving it.

Past the time limit specified at this Point, if the eligible buyer of the assets fails to make full payment, he/she shall pay a late-payment interest in accordance with the law on tax administration. In this case, the agency assigned to manage assets shall send a written request, enclosed with a copy of the asset purchase and sale contract and receipt (if any) proving such person’s payment, to the provincial-level Tax Department (of the place where the assets are located) for the latter to determine, and issue a notice on, the late-payment interest in accordance with the law on tax administration.

The specific time limit for and regulations on payment of the late-payment interest shall be stated in the auction rule and asset purchase and sale contract.

If the contract has been signed and the payment has been made but the buyer later does not wish to buy the assets, the assets shall be handled under the contract and civil law.

dd/ The agency assigned to manage assets shall make out an asset sale invoice to for the buyer under regulations. The handover of assets to the buyer shall be carried out at the place where the assets are located after he/she has completed the payment;

e/ Within 30 days after the auction is completed, the agency assigned to manage assets shall account a decrease in assets and report on changes in assets in accordance with this Decree.

Article 28.Use of hydraulic-work infrastructure assets as payments to investors implementing work construction projects in the form of build-transfer contracts

The use of hydraulic-work infrastructure assets as payments to investors implementing work construction projects in the form of build-transfer contracts must comply with the Law on Management and Use of Public Property and the Government’s Decree on use of public property as payments to investors implementing work construction projects in the form of build-transfer contracts.

Article 29.Liquidation of hydraulic-work infrastructure assets

1. Hydraulic-work infrastructure assets shall be liquidated in the following cases:

a/ They are damaged and unusable or their repair is not cost-effective;

b/ They are dismantled for building new ones under approved projects;

c/ Part or the whole of the assets cannot be exploited according to their utilities as a result of adjustment of relevant master plans;

d/ Other cases as prescribed by law.

2. Competence to decide on liquidation:

a/ The Minister of Agriculture and Rural Development shall decide or decentralize the competence to decide on liquidation of hydraulic-work infrastructure assets under his/her management;

b/ Provincial-level People’s Councils shall decentralize the competence to decide on liquidation of hydraulic-work infrastructure assets under their management.

3. If hydraulic-work infrastructure assets are dismantled or destroyed, the recovered supplies or materials shall be handled as follows:

a/ The unit exploiting hydraulic-work infrastructure assets shall continue using them if it so wishes. The Ministry of Agriculture and Rural Development, provincial-level People’s Committee or decentralized district-level People’s Committee shall decide to use the recovered supplies or materials (depending on their types and use period). The value of recovered supplies or materials to be used shall be determined based on their reassessed value, and accounted as state budget revenues and expenditures and included in the cost estimates of the year the supplies or materials are used;

b/ They shall be transferred;

c/ They shall be sold.

4. Order and procedures for liquidation of hydraulic-work infrastructure assets

a/ An agency assigned to manage assets shall make a dossier for liquidation of hydraulic-work infrastructure assets and send it to a competent authority defined in Clause 2 of this Article for consideration. Such dossier must comprise:

- A written request for liquidation of assets, made by the agency assigned to manage assets: 1 original;

- A list of assets to be liquidated (type, quantity, status, historical cost, residual value, and reason for liquidation), made according to Form No. 06/TSTL-DM in the Appendix to this Decree: 1 original;

- A paper stating the specialized construction agency’s written opinion on the status of assets and their reparability: 1 copy;

- Other relevant papers: 1 copy each.

b/ Within 30 days after receiving a complete and valid dossier, a competent authority defined in Clause 2 of this Article shall consider it and issue a decision on liquidation of hydraulic-work infrastructure assets. Such dossier must have the following principal contents:

- Name of the agency assigned to manage assets;

- A list of assets to be liquidated (type, quantity, status, historical cost, residual value, and reason for liquidation);

- Form of liquidation;

- Management and use of the proceeds from the liquidation;

- Implementation responsibility.

c/ Within 30 days after the competent authority issues an asset liquidation decision, the agency assigned to manage assets shall liquidate the assets in accordance with Clause 3 of this Article;

d/ The payment of money (if any) for assets and its remittance into the State Treasury custody account shall be made in accordance with this Decree;

dd/ After completing the liquidation of assets, the agency assigned to manage assets shall account a decrease in assets and report on changes in assets in accordance with this Decree and relevant laws.

Article 30.Handling of hydraulic-work infrastructure assets which are lost or destroyed

1. Hydraulic-work infrastructure assets shall be regarded as lost or destroyed in case such loss or destruction is due to natural disasters or fires or other events prescribed by law.

2. Competence to decide on handling of hydraulic-work infrastructure assets:

a/ The Minister of Agriculture and Rural Development shall decide or decentralize the competence to decide to handle hydraulic-work infrastructure assets under his/her management;

b/ Provincial-level People’s Councils shall decentralize the competence to handle hydraulic-work infrastructure assets under their management.

3. Order and procedures for handling lost or destroyed hydraulic-work infrastructure assets

a/ Within 30 days after detecting that hydraulic-work infrastructure assets are lost or destroyed, an agency assigned to manage assets shall make a record of such loss or destruction, and report it to a competent authority, and determine responsibility of related organizations and individuals. A dossier for handling hydraulic-work infrastructure assets must comprise:

- A written request for handling of assets, made by the agency assigned to manage assets: 1 original;

- A list of lost or destroyed assets (type, quantity, historical cost and residual value according to account books), made according to Form No. 06/TSTL-DM in the Appendix to this Decree: 1 original;

- Papers proving the loss or destruction of assets: 1 copy each.

b/ Within 30 days after receiving the report, a competent authority defined in Clause 2 of this Article shall consider it and decide to handle the assets;

c/ Within 30 days after receiving a complete and valid dossier, a competent authority defined in Clause 2 of this Article shall issue a decision to handle the lost or destroyed hydraulic-work infrastructure assets. Such decision must have the following principal contents:

- Name of the agency assigned to manage assets;

- A list of lost or destroyed assets to be accounted as a decrease in assets (type, quantity, historical cost and residual value according to account books);

- Reason for (cause of) the loss or destruction;

- Implementation responsibility.

4. Within 30 days after a competent authority defined in Clause 2 of this Article issues an asset handling decision, the agency assigned to manage assets shall account a decrease in assets in accordance with the accounting law; and report on changes in assets in accordance with this Decree.

5. In case an insurer or another organization or individual pays compensations for the lost or destroyed hydraulic-work infrastructure assets, the use of such compensations for construction of replacement infrastructure facilities must comply with Article 31 of this Decree.

Article 31.Management and use of proceeds from handling hydraulic-work infrastructure assets

1. All proceeds from the handling of hydraulic-work infrastructure assets (including compensations paid by insurers or other organizations or individuals) shall be remitted into a State Treasury custody account under the name of:

a/ The agency assigned to manage public property defined in Clause 1, Article 19 of the Law on Management and Use of Public Property, for public property to be handled under decision of the Prime Minister or Minister of Finance;

b/ The provincial-level Department of Finance of the place where the assets are located, for assets located in such place. These assets will be handled under decision of the Minister of Agriculture and Rural Development or chairperson of the provincial-level People’s Committee.

2. The custody account shall be monitored regarding each agency having assets handled.

3. An agency assigned to manage assets shall prepare an estimate of expenses related to the handling of assets and submit it the authority competent to decide on asset handling plans for approval.

4. Expenses related to the handling of hydraulic-work infrastructure assets include:

- Expense for inventory and survey;

- Expense for asset relocation, dismantlement or destruction;

- Expense for asset valuation and price appraisal;

- Expense for asset sale;

- Other relevant reasonable expenses.

5. Expense levels:

a/ For expenses for which competent state agencies have issued their levels and regulations, such levels and regulations shall apply;

b/ For hired services for the handling of assets, the expense levels must comply with the contract signed between the agency assigned to manage assets and service provider. The selection of service providers must comply with law;

c/ For the expenses not referred to at Points a and b of this Clause, the head of the agency assigned to sell or liquidate assets shall decide on their levels in accordance with the State’s current financial management regulations and take responsibility for his/her decision.

6. Within 30 days after completing the handling of assets, the state management agency in charge of hydraulic work shall make 1 set of dossier of request for payment and send it to the custody account holder. The head of this agency shall take responsibility before law for the accuracy of expenses requested for payment. Such dossier must comprise:

a/ A written request for payment, made by the agency assigned to manage assets (specifying the amount collected from the handling of assets, total expense for handling of assets, and details of the payment-receiving account), enclosed with a detailed list of expenses: 1 original;

b/ The decision of handling of assets, issued by a competent agency or person: 1 copy;

c/ Papers proving the expenses, such as approved expense estimate; contract on hiring of price appraisal, auction or dismantlement services; and invoice or receipt (if any): 1 copy.

7. Within 30 days after receiving a complete and valid dossier, the custody account holder shall transfer money to the agency assigned to sell or liquidate assets for the latter to pay expenses related to the handling of hydraulic-work infrastructure assets.

8. Quarterly, the custody account holder shall remit the rest of the proceeds from the handling of assets for which expenses have been paid into the state budget in accordance with the law on the state budget.

9. If the proceeds from the sale or liquidation of assets are insufficient to pay expenses, the deficit shall be covered by the state budget fund allocated to the agency assigned to manage assets.

Section 6

REPORTING REGIME AND DATABASE ON HYDRAULIC-WORK INFRASTRUCTURE ASSETS

Article 32.Reporting on hydraulic-work infrastructure assets

1. All hydraulic-work infrastructure assets shall be reported to state management agencies in charge of hydraulic work and agencies managing public property and listed and updated into the database on hydraulic-work infrastructure assets and national database on public property for unified management.

2. Agencies assigned to manage assets shall make declaration reports as follows:

a/ Types of declaration reports

- Initial declaration report, for hydraulic-work infrastructure assets currently managed as of the effective date of this Decree;

- Additional declaration report for changes in hydraulic-work infrastructure assets;

- Additional declaration report for changes in information on agencies or units managing and exploiting assets.

b/ Time limits for making declaration reports

- Sixty days from the date the Ministry of Agriculture and Rural Development, provincial-level People’s Committee or decentralized district-level People’s Committee hands over the assets to an agency assigned to manage assets under Article 5 of this Decree, for initial declaration reports;

- Thirty days from the date of occurrence of a change, for additional declaration reports;

- Ten days from the date of occurrence of a change in information on the management agency under the competent authority’s decision, for declaration reports on change in management agencies.

3. Reporting on the management and use of hydraulic-work infrastructure assets

a/ Agencies assigned to manage assets shall make annual reports on the management and use of hydraulic-work infrastructure assets (including proceeds from the handling and exploitation of hydraulic-work infrastructure assets) of the previous year and extraordinary reports at the request of competent state agencies according to Forms No. 03/TSTL-BC, No. 04/TSTL-BC and No. 05/TSTL-BC in the Appendix to this Decree;

b/ Deadlines for sending reports on the management and use of hydraulic-work infrastructure assets:

- Agencies assigned to manage assets shall send reports to the Ministry of Agriculture and Rural Development and provincial-level People’s Committees or decentralized district-level People’s Committees before February 28 every year;

- The Ministry of Agriculture and Rural Development shall summarize reports on the management and use of hydraulic-work infrastructure assets nationwide and send them to the Ministry of Finance before March 15 every year;

- The Ministry of Finance shall summarize reports on the management and use of hydraulic-work infrastructure assets nationwide and send them to the Government for reporting to the National Assembly upon request and publicize property nationwide.

Article 33.Database on hydraulic-work infrastructure assets

1. Management and exploitation of the database on hydraulic-work infrastructure assets

a/ The database on hydraulic-work infrastructure assets constitutes part of the national database on public property and shall be developed and managed nationwide;

b/ Information in the database on hydraulic-work infrastructure assets is as legally valid as paper dossiers;

c/ Information in the database on hydraulic-work infrastructure assets shall be used for the making of cost estimates, approval of finalized amounts, examination, audit and inspection of the construction, upgrading, renovation, repair and transfer of, and lease of the right to exploit, hydraulic-work infrastructure assets, and transfer and liquidation of works, and reported to competent state agencies in accordance with the law on management and use of public property;

d/ The database on hydraulic-work infrastructure assets constitutes a public property and its security and safety shall be ensured; illegally accessing, destroying and falsifying information in this database are prohibited;

dd/ The exploitation and use of information and data on hydraulic-work infrastructure assets must comply with regulations; arbitrarily exploiting and using information without the permission of competent state agencies are prohibited;

e/ The contents and structure, method of inputting data into, and exploitation of the database on hydraulic-work infrastructure assets must comply with the Ministry of Finance’s regulations.

2. The Ministry of Agriculture and Rural Development shall assume the prime responsibility for, and coordinate with the Ministry of Finance and related agencies in, developing and managing the database on hydraulic-work infrastructure assets, which must satisfy the following requirements:

a/ Being suitable to the Vietnamese e-government architecture framework, and satisfying the technical regulation on national databases, standards and technical regulations on information technology and information safety and security, and relevant economic-technical norms;

b/ Ensuring the compatibility, integratability and connection to the national database on public property; and information sharing and expandability of data fields in designing systems and applied software.

Chapter III

ORGANIZATION OF IMPLEMENTATION

Article 34.Implementation responsibility

1. Responsibilities of the Ministry of Agriculture and Rural Development

a/ To assume the prime responsibility for, and coordinate with the Ministry of Finance in, setting conventional prices for determining the value of assets to serve accounting purposes under regulations;

b/ To formulate and promulgate regulations and processes on maintenance of hydraulic-work infrastructure assets;

c/ To assume the prime responsibility for, and coordinate with the Ministry of Finance in, developing the database on hydraulic-work infrastructure assets nationwide and integrate it into the national database on public property; to report on the management, use and exploitation of hydraulic-work infrastructure assets in accordance with the law on management and use of public property and at the request of competent authorities;

d/ To coordinate with the Ministry of Finance in guiding the determination of reserve prices for auctioning the right to exploit hydraulic-work infrastructure assets in the form of lease or definite-term transfer of the right to exploit assets;

dd/ To perform other tasks and exercise other powers in accordance with this Decree.

2. Responsibilities of the Ministry of Finance

a/ To prescribe accounting work for hydraulic-work infrastructure assets;

b/ To prescribe the management and depreciation of hydraulic-work infrastructure assets;

c/ To guide the determination of reserve prices for auctioning the right to exploit hydraulic-work infrastructure assets in the form of lease or definite-term transfer of the right to exploit assets;

d/ To assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development in, guiding the integration of the database on hydraulic-work infrastructure assets into the national database on public property;

dd/ To perform other tasks and exercise other powers in accordance with this Decree.

3. Responsibilities of provincial-level People’s Committees

a/ To direct the inventory, classification, documentation and accounting of assets in accordance with this Decree and relevant laws;

b/ To direct and inspect the management, use and exploitation of hydraulic-work infrastructure assets under their management in accordance with this Decree and relevant laws;

c/ To direct the login to and standardization of data on hydraulic-work infrastructure assets under their management; to report on the management, use and exploitation of assets in accordance with this Decree;

d/ To perform other tasks and exercise other powers in accordance with this Decree.

Article 35.Effect

This Decree takes effect on January 1, 2018.

Article 36.Implementation provision

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

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC

* The Appendix to this Decree is not translated.

 



[1]Công Báo Nos 221-222 (29/1/2018)

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