Decree No. 96/2018/ND-CP dated June 30, 2018 of the Government on providing guidelines for prices of irrigation products and services and financial support for use of public irrigation products and services

THE GOVERNMENT 

DecreeNo. 96/2018/ND-CP dated June 30, 2018 of the Government onproviding guidelines for prices of irrigation products and services and financial support for use of public irrigation products and services

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

Pursuant to the Law on Water Resources dated June 21, 2012;

Pursuant to the Law on Prices dated June 20, 2012;

Pursuant to the Law on the State Budget dated June 25, 2015;

Pursuant to the Law on Fees and Charges dated November 25, 2015;

Pursuant to the Law on Irrigation dated June 19, 2017;

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

At the request of the Minister of Finance;

The Government hereby promulgates a Circular to provide guidelines for prices of irrigation products and services and financial support for use of public irrigation products and services

Chapter I

GENERAL PROVISIONS

Article 1.Scope of adjustment

This Decree provides guidelines for prices of irrigation products and services and a roadmap to application of prices of irrigation products and services (including prices of irrigation products and services and prices of other irrigation services); entities, scope, methods; subsidies for use of public irrigation products and services.

Article 2.Subjects of application

This Decree applies to domestic and foreign organizations and individuals involved in irrigation operations within the territory of Vietnam, including irrigation project owners; irrigation project managers; organizations or individuals operating irrigation projects; public irrigation product and utility users and other relevant organizations and individuals.

Chapter II

PRICES OF IRRIGATION PRODUCTS AND SERVICES AND ROADMAP TO APPLICATION OF PRICES OF IRRIGATION PRODUCTS AND SERVICES

Section 1. Prices of public irrigation products and services and roadmap to application thereof

Article 3. Prices of public irrigation products and services

1. Unit

Price of a public irrigation product or utility is expressed as dong (VND) for one unit of public irrigation product or utility with respect to each irrigation measure or drainage measure and each type of product or utility. To be specific:

- Crop irrigation: dong/ha/crop or dong/ m³.

- Supply of water for aquaculture purposes: dong/ha/year or dong/ha/crop or dong/ m³or dong/m²free surface/year; supply of water to salt production: dong/ha/year or dong/ha/crop or dong/m³or equal to 2% of value of salted products.

- Supply of water for husbandry purposes: dong/m³.

- Drainage of water for agricultural production, rural and metropolitan areas, except for urban areas: dong/task/year. In case it is impossible to determine specific tasks, the price shall be expressed as dong/hectares of drainage basin, but not exceeding 5% of price of a public irrigation product or utility with respect to irrigation for paddy land/crop.

-Flood proofing, escape and prevention, high tide control, saltwater intrusion prevention, saltwater pushback, water desalinization, counter-acidification and freshwater protection: dong/task.

2. Methods for pricing public irrigation products and services

According to the market at the time of pricing under normal weather conditions (without any disasters, fires and other abnormal weather conditions), irrigation project owners or organizations/individuals operating irrigation projects shall set prices on public irrigation products and services according to the common methods of pricing goods or services prescribed by the Ministry of Finance and the following formula in order for a competent authority to appraise the pricing plan and decide the maximum prices of public irrigation products or services.

Prime costs of a public irrigation product or utility includes operation costs, maintenance costs, depreciation of fixed assets, administration costs and other actual costs of all organizations operating irrigation projects according to each irrigation measure or type of product/utility or task.

The costs included in the prime costs of a public irrigation product or utility include the costs defined in Article 7 of this Decree, except for provisions and costs of collection of payments for use of irrigation products and services. Costs of salaries, wages, mid-shift meal allowances, other salary-based payables, deprecation of fixed assets and expected profits included in prices of a public irrigation/utility shall be determined as follows:

a) Costs of salaries, wages, mid-shift meal allowances, other salary-based payables

Organization or individual operating an irrigation project engages in providing public irrigation products or services shall determines the costs of salaries, wages, mid-shift meal allowances and other salary-based payables included in the prices of public irrigation products or services according to the method of determining salary costs included in the prices of state-funded public irrigation products or services that is prescribed by the Ministry of Labor, War Invalids and Social Affairs and other relevant legal documents.

b) Deprecation of fixed assets

Regarding the state-funded or public–private partnership irrigation project, the deprecation of fixed assets, including vehicles, transmission equipment, equipment, management information system and office machinery and equipment shall be included in the prices of public irrigation products or services.

Over periods of time, the Ministry of Finance shall, according to socio - economic situations and availability of state budget, decide on a roadmap to application of deprecation of fixed assets deprecated as prescribed by law with respect to the state-funded irrigation projects.

c) Expected profits

The maximum expected profits of a public irrigation product or utility is the expected profits after the corporate income tax (if any) is paid, ensuring that a welfare fund is developed in accordance with applicable regulations of law.

3. The preparation of pricing plan and adjustment to prices of public irrigation products or services shall be made as prescribed in Articles 9 and 10 of this Decree.

Article 4. Roadmap to application of prices of public irrigation products and services

1. 2018 - 2020 period

a) The maximum prices of public irrigation products and services during 2018 - 2020 period during the state budget stability period equal (=) to the maximum prices applied in 2017.

b) The Minister of Finance shall decide and announce maximum prices of public irrigation products or services.

2. From 2021 onwards

a) According to method of pricing public irrigation products and services, the project owner or organization/individual operating the irrigation project shall prepare a pricing plan as prescribed in Article 9 of this Decree.

b) According to the actual changes in price formation factors and availability of state budget, the Ministry of Finance shall take charge and cooperate with the Ministry of Agriculture and Rural Development and local governments in deciding and announcing the maximum prices of public irrigation products and services for the new period of budget stability.

Section 2. PRICES OF OTHER IRRIGATION PRODUCTS AND SERVICES AND ROADMAP TO APPLICATION THEREOF

Article 5. Unit applied to prices of irrigation products and services

1. Price of another irrigation product or service is expressed as dong (VND) for one unit of irrigation product or service with respect to each type of product or service.

2. Unit

a) Supply of water for domestic and industrial consumption purposes: dong/m³.

b) Drainage of water for industrial factories, export processing zones, economic zones and high technology parks: the unit shall be expressed as dong/task or dong/hectares of drainage basin, but the maximum price shall not exceed 50% of price of an irrigation product or service with respect to irrigation for paddy land/crop.

c) Electricity generation: dong/% of value of commercial electricity production.

d) Business, tourism and other recreational and entertainment activities: dong/% of revenue. In case the land located within the boundary marker identifying the safety perimeter of an irrigation work or facility is allocated or leased out for the aforementioned purposes, the unit shall be expressed as dong/ha/year.

dd) Reservoir aquaculture: dong/hectares of free surface/year.

e) Transportation: dong/tonne/trip or dong/m²/trip.

Article 6. Methods for pricing other irrigation products and services

1. According to the method of pricing other irrigation products and services prescribed in this Decree, irrigation project managers or organizations/individuals operating irrigation projects shall prepare a pricing plan and a competent authority shall appraise the pricing plan and decide on the price bracket and specific prices of other irrigation products and services.

2. According to the market at the time of pricing under normal weather conditions (without any disasters, fires and other abnormal weather conditions), irrigation project owners or organizations/individuals operating irrigation projects shall set prices on other irrigation products and services according to the common methods of pricing goods or services prescribed by the Ministry of Finance.

Prices of other irrigation products and services shall be determined according to the market price at the pricing time and State policies that affect the prices of other irrigation products and services and according to the following formula:

Prime costs of other irrigation products/services include operation costs, maintenance costs, depreciation of fixed assets, administration costs and other actual costs of all organizations operating irrigation projects according to each type of product/service or task. The costs included in the prime costs, expected profit and financial obligations included in prices of other irrigation products and services shall be determined as prescribed in Article 7 of this Decree.

Article 7. Total price, expected profits and financial obligations included in prices of other irrigation products and services

The costs included in the total price, expected profits and financial obligations included in prices of other irrigation products and services consist of:

1. Operation costs:

a) Costs of salaries, wages, mid-shift meal allowances and other salary-based payables such as social insurance, health insurance, unemployment insurance and trade union fees;

The organization or individual operating an irrigation project engages in providing public irrigation products or services shall determines the costs of salaries, wages, mid-shift meal allowances and other salary-based payables included in the prices of irrigation products or services according to the instructions from the Ministry of Labor, War Invalids and Social Affairs and other relevant legal documents.

b) Costs of raw materials and fuel used for operation and maintenance of works, machineries and equipments;

c) Costs of electricity used for water pumping;

d) Payments for water source generation (if any);

dd) Costs of occupational safety and protection (if any);

e) Costs of protection and assurance of safety of irrigation works or facilities (if any).

2. Maintenance costs

a) Regarding the state-funded irrigation project, the maintenance costs include the costs of inspection, monitoring, quality verification, regular maintenance and repair of assets but exclude the costs of changing performance and scope of the irrigation project included in the prices of irrigation products or services unless otherwise covered by the State budget. The costs of periodic maintenance and repair that are exclusive of the costs of changing performance and scope of the irrigation project shall be separately determined according to regulations of the Law on management and use of irrigation infrastructure and the  Law on management and use of public property.

b) Regarding the irrigation project not funded by the State, the maintenance costs shall be determined in accordance with applicable regulations of law.

3. Deprecation of fixed assets

a) The deprecation of fixed assets included in prices of other irrigation products or services include the deprecation of fixed assets that are deprecated in accordance with regulations of the Ministry of Finance on management, use and deprecation of fix assets. The deprecation of fixed assets included in prices of irrigation products or services shall be determined according to the roadmap specified in Article 8 of this Decree.

b) Regarding the fixed assets that are not deprecated, it is required to compile a register of asset deprecation in accordance with regulations of the Ministry of Finance.

c) The deprecation of fixed assets of organizations or individuals operating irrigation projects shall be made in a linear fashion.

4. Management costs:

a) Expenses of materials serving enterprise administration such as office supplies, materials serving repair of fixed assets, tools, instruments, etc.;

b) Expenses of office supplies serving enterprise administration;

c) Costs of training, scientific research, application of new technology directly related to product supply and irrigation services (if any)  in accordance with applicable regulations;

d) Costs of external services serving enterprise management; payments for purchase and use of technical documents or patents (not qualified as fixed assets) shall be gradually aggregated with enterprise administration expenses;

dd) Expenses of conventions or public relations, business trip expenses, traveling expenses, expenditures on female workers, fees for attendance at conventions;

e) Severance pay;

g) Auditing expenses;

h) Costs of collection of fees for use of other irrigation products and services (if any);

i) Provisions (if any) including allowances for bad debts, provisions for payables aggregated with the costs of provision of other irrigation products and services;

k) Fees and charges prescribed by law.

5. Other reasonable costs incurred in connection with provision of other irrigation products and services (if any), including:

a) Financial expenses;

b) Costs of establish economic and technical norms; costs of establishing operating procedures;

c) Land levies;

d) Costs of cleaning up rubbish from the suction tank of the pumping station, releasing water ferns, waste and obstacles;

dd) Costs of planting boundary markers that identify safety perimeter of an irrigation work/facility; costs of measuring, inspecting and assessing safety of a work/facility (in case other funding sources are yet to be available).

6. Expected profits

The expected profits included in prices of other irrigation products/services shall be determined according to the financial statement that has been audited near the pricing time of the organizations or individuals operating irrigation projects that provide similar products and services or determined according to data of the irrigation sector or previous years’ data of the organizations or individuals operating irrigation projects.

7. Financial obligations prescribed by applicable law (if any): value added tax, corporate income tax and other taxes prescribed by applicable regulations on tax.

8. The expenses that must not be included in prices of other irrigation products and services

a) The expenses that must not be included in the reasonable and lawful costs to determine prices of other irrigation products/services according to regulations of law on tax and relevant legal documents.

b) The expenses that have been covered by the State budget, expenses that do not serve production or provision of other irrigation products/services.

9. Distribution of costs

The costs incurred in connection with multiple types of other irrigation products/services, irrigation/drainage measures or tasks but impossible to be separated shall be aggregated and distributed for a certain predetermined output or volume of production works or distributed according to appropriate criteria for each product, service, irrigation/drainage measure or task.

Article 8. Roadmap to application of prices of other irrigation products/services

1. 2018 - 2020 period

Each irrigation project owner or organization operating the irrigation project shall, according to the prices of other irrigation products/services, collect fees for use of irrigation services from service users, including the costs included in the prime costs, expected profits and financial obligations specified in Article 7 of this Decree, except for provisions.

2. From 2021 onwards

Each irrigation project owner or organization operating the irrigation project shall, according to the prices of other irrigation products/services, collect fees for use of irrigation services from service users, including the costs included in the prime costs, expected profits and financial obligations specified in Article 7 of this Decree.

3. Over periods of time, the Ministry of Finance shall, according to socio - economic situations and solvency of the irrigation product/service user, decide on a roadmap to application of deprecation of fixed assets depreciated as prescribed by law at the request of the Ministry of Agriculture and Rural Development with respect to the state-funded irrigation projects.

Section 3. PREPARATION OF PLAN FOR PRICING AND ADJUSTMENT TO PRICES OF PUBLIC IRRIGATION PRODUCTS AND SERVICES AND PRICES OF OTHER IRRIGATION PRODUCTS AND SERVICES

Article 9. Methods for preparing irrigation product and service pricing plan

1. Methods for preparing an irrigation product and service pricing plan

A dossier on the irrigation product and service pricing plan submitted to a competent authority or person includes:

a) An application form for pricing or price adjustment;

b) Documents concerning the pricing or price adjustment;

In the cases where the economic - technical norm for management and utilization of irrigation projects that is issued by a competent authority is available, the originals or certified true copies of the issued economic - technical norm and other relevant documents are required. In case no certification is provided by the competent authority, the head of the unit shall provide certification and take responsibility therefor.

In case it is required to clarify contents of the dossier on the pricing plan prepared by the organization or individual operating the irrigation project, the authority that has the power to appraise prices shall request such organization/individual to submit reports and provide detailed explanation for relevant contents.

c) A competent authority s written appraisal of the irrigation product and service pricing plan.

d) Other relevant documents.

2. Preparation and submission of the irrigation product and service pricing plan

a) Regarding the central government

Before 31 March of the year preceding the plan year, the irrigation project owner or the organization operating the irrigation project under the management of the central government shall prepare an irrigation product and service pricing plan of the plan year with respect to the irrigation project assigned to manage and submit it to the Ministry of Agriculture and Rural Development. On such basis, before 30 June of the year preceding the plan year, the Ministry of Agriculture and Rural Development shall appraise the irrigation product and service pricing plan of the plan year and submit it to the Ministry of Finance for decision on and notification of maximum prices of public irrigation products and services and price bracket for other irrigation products and services.

b) Regarding the local government

Before 31 March of the year preceding the plan year, according the irrigation product and service pricing plan of the plan year prepared by the local irrigation project owner or the local organization or individual operating the irrigation project after obtaining opinions of the Department of Finance, the People s Committee of the province or central-affiliated city (hereinafter referred to as "the People s Committee of the province") shall submit the local irrigation product and service pricing plan with respect to the irrigation project that is assigned by the Ministry of Agriculture and Rural Development to the Ministry of Agriculture and Rural Development. On such basis, before 30 June of the year preceding the plan year, the Ministry of Agriculture and Rural Development shall carry out a review and submit a consolidated pricing plan of the People s Committee of the province to the Ministry of Finance for decision on and notification of maximum prices of public irrigation products and services and price bracket for other irrigation products and services.

3. Regarding the public–private partnership irrigation project and irrigation investment project not funded by the state budget, the prices of irrigation products and services shall be determined under the contract between parties according to the maximum prices of public irrigation products and services and price bracket for other irrigation products and services, but not exceeding the maximum prices and price bracket prescribed and announced by the Minister of Finance.

Article 10. Adjustment to prices of irrigation products and services

1. Prices of irrigation products and services shall be adjusted in accordance with regulations of the Law on Prices and other relevant legal documents.

2. Under normal conditions, if there is any fluctuation in the input costs included in the expected prices of irrigation products and services of the plan year compared with the previous year, organizations/individuals operating irrigation projects and competent authorities shall, according to the previously applied prices of other irrigation products and services and expected national consumer price index (CPI) during the year released by the National Assembly, prepare a price adjust/appraisal plan, thereby announcing the maximum prices, price bracket and specific prices for irrigation products and services for the plan year according to the following formula:

3 . Under normal conditions, if there is not any fluctuation in the input costs included in the expected prices of irrigation products and services of the plan year compared with the previous year, the Ministry of Agriculture and Rural Development and People’s Committee of the province shall not request any adjustment to the maximum prices or price bracket for irrigation products and services but shall decide specific prices of irrigation products and services, not exceeding the maximum prices and price bracket previously announced by the Ministry of Finance and notify the Ministry of Finance.

Chapter III

FINANCIAL SUPPORT FOR USE OF PUBLIC IRRIGATION PRODUCTS AND SERVICES

Section 1. ENTITIES AND SUBSIDIES PROVIDED WITH FINANCIAL SUPPORT BY THE STATE

Article 11. Entities and scope eligible to receive financial support for use of public irrigation products and services

1. Households and individuals using agricultural land for cereal production, including:

a) Total area of land allocated for cereal production, including land acquired from transfer or inheritance or donation of land use rights;

b) Total area of agricultural land used for research and experimental production purposes; area of land for annual plants on which at least one rice crop is produced during the year. The land for annual plants on which at least one rice crop is produced during the year includes (i) land which is reserved for at least one rice crop during the year or (ii) land which is reserved for growing annual plants but on which at least one rice crop is produced during the year.

2. Poor households and individuals leased out agricultural land by the State.

3. Households and individuals using land for salt production.

4. Households and individuals using agricultural land within a limit for growing vegetables and young rice; long-term industrial crops, short-term industrial crops including winter crops; fruit trees; flowers; medicinal plants; aquaculture (except for aquaculture in reservoirs, dams, rivers, streams, lagoons, etc.); husbandry.

5. Households, individuals that are plantation’s employees that have received contracted land form agriculture companies or forestry companies (agricultural or forestry plantations) for agricultural production as prescribed by law.

6. Organizations and individuals in charge of drainage of water for rural and metropolitan areas, except for urban areas.

7. Organizations and individuals in charge of flood proofing, escape and prevention, high tide control, saltwater intrusion prevention, saltwater pushback, water desalinization, counter-acidification and freshwater protection within their area.

Article 12. Subsidies for use of public irrigation products and services

1. 100% of fees for use of public irrigation products/services shall be provided to the entities specified in Clauses 1, 2, 3, 4 and 5 Article 11 of this Decree:

a) According to the specific prices decided by the Ministry of Agriculture and Rural Development and People’s Committee of the province according to the maximum prices prescribed by the Ministry of Finance within its power;

b) From the point of delivery and reception of irrigation products and services between organizations or individuals supplying irrigation products or services to central irrigation work or facility located at the starting position. The Ministry of Agriculture and Rural Development shall elaborate the point of delivery and reception of irrigation products and services as prescribed in Article 33 of the Law on Irrigation;

c) Costs incurred from a point of delivery and reception of irrigation products and services to an arable field within the jurisdiction of the irrigation product/service user.

2. 100% of fees for use of products/services shall be provided to the entities specified in Clause 6 Article 11 of this Decree according to the specific prices decided by the Ministry of Agriculture and Rural Development and People’s Committee of the province according to the maximum prices prescribed by the Ministry of Finance within its power;

3. Financial support shall be provided to the entities specified in Clause 7 Article 11 of this Decree according to the volume of the tasks approved by the People’s Committee of the province and the availability of the local government budget.

4. The subsidies shall be provided according to the principle: a unit of land area, an irrigation/drainage measure, one cubic meter, one task based on the specific prices of public irrigation products/services and under normal weather condition.

5. The entities that are ineligible to receive financial support for use of public irrigation products/services shall pay fees as prescribed.

Article 13. Methods of providing financial support and obligatory expenditure of state budget

1. The state budget shall provide financial support for use of public irrigation products/services to the entities specified in Article 11 of this Decree by making a direct payment to the organizations and individuals operating irrigation projects as prescribed in Clause 1 Article 23 of the Law on Irrigation by commissioning area, volume, measure and irrigation/drainage according to specific prices.

a) The central government budget shall provide financial support for use of public irrigation products/services to the organizations and individuals operating irrigation projects under the management of the central government.

b) The local government budget shall provide financial support for use of public irrigation products/services to the organizations and individuals operating irrigation projects under the management of the local government.

2. Local governments shall use the local government budget and financial support provided by the central government budget (if any) to support organizations operating local irrigation projects. The central government budget shall provide financial support according to the rules for provision of targeted supports from the central government budget to local government budgets for implementing social security policies decided by the Prime Minister.

Article 14. Benefits for organizations operating irrigation projects

1. In addition to the fees for use of public irrigation products/services funded by the state , an organization operating the irrigation project that performs the task of water supply, irrigation and drainage is entitled to receive financial support for maintenance costs (except in the cases where public irrigation products/services are provided throughout the bidding process and the maintenance costs has been included in the bid price) and other subsidies as prescribed by law according to the availability of state budget at each level. The distribution, payment and settlement of subsidies shall be carried out as prescribed by the Law on State Budget.

2. The organizations operating irrigation projects under the management of the central government shall be provided with financial support from the central government budget.

3. The organizations operating irrigation projects under the management of the local government shall be provided with financial support from the local government budget. In the cases where the local government budget is not enough, the central government budget shall provide funding for the local government budget within its capacity as prescribed by the Law on State Budget.

Section 2. PROCEDURES FOR MAKING AND ASSIGNING ESTIMATE, DISTRIBUTION, PAYMENT AND SETTLEMENT OF SUBSIDIES

Article 15. Making and assigning estimation of subsidies for use of public irrigation products andservices

1. An estimate of subsidies for use of public irrigation products and services shall be made and assigned in accordance with regulations of the Law on State Budget and legal guidance documents.

2. Bases for making the estimate: according to volume of tasks, area (ha), volume (m³), economic - technical norm, prices, subsidies for use of public irrigation products/services of the competent authority.

Determining volume of tasks and area eligible for financial support for use of public irrigation products and services:

Each organization and individual operating the irrigation project shall, according to the cadastral map, methods of water supply, irrigation and drainage, and water supply, irrigation or drainage contract between the organization/individual operating the irrigation project and the water user (including People’s Committee of the commune, cooperative, water user group or director of an enterprise, experimental station or plantation or with a households or an individual), cooperate with the People s Committee of the commune to make a list of entities and land area for irrigation/drainage that are eligible for financial support for use of public irrigation product/services and take legal responsibility for confirmations;

In case the water user is the People’s Committee of the commune, cooperative, water user group, director of an enterprise, experimental station or plantation, it is required to enclose a list of households and their land area. The People’s of Committee of the district of the area where eligible entities reside shall inspect, review and decide on the area eligible for financial support and take legal responsibility for its decision.

The land area eligible for financial support for use of public irrigation products/services shall be decided according to the area approved by the People’s Committee of the province in the previous year and expected increase or decrease (if any) in the land area aggregated and submitted by the Department of Agriculture and Rural Development.

3. Aggregating estimates of subsidies for use of public irrigation products and services:

a) The agriculture department of the district shall aggregate the estimates submitted by district-affiliated units and submit them to the Department of Finance - Planning of the district, which will review and aggregate them with the district-level budget expenditure estimate, and submit it to the People’s Committee of the district, which will submit it to the Department of Finance and Department of Agriculture and Rural Development for inclusion in the local government budget estimate;

b) Regarding the internal irrigation institution that manages part of the project within a system of irrigation projects and 100% of charter capital of which is held by the state-owned single-member limited liability company, such company shall submit an aggregated estimate to the Department of Finance and Department of Agriculture and Rural Development;

b) The Department of Finance shall take charge and cooperate with the Department of Agriculture and Rural Development in aggregating the estimates submitted by organizations operating irrigation projects under the management of the province with the local government budget estimate;

d) The Ministry of Agriculture and Rural Development shall aggregate the estimates submitted by organizations operating irrigation projects and submit an aggregated estimate to the Ministry of Finance for aggregation with the central government budget estimate.

Article 16. Distribution and payment of subsidies for use of public irrigation products and services

1. The power to determine volume of tasks and area eligible for financial support for use of public irrigation products and services

a) The Ministry of Agriculture and Rural Development shall decide on tasks, area and volume of water eligible for financial support for use of public irrigation products/services provided to the organizations operating irrigation projects under the management of the central government;

b) The People’s Committee of the province shall decide on tasks, area and volume of water eligible for financial support for use of public irrigation products/services provided to the organizations operating irrigation projects under the management of the local government.

2. An application for decision on volume of tasks and area eligible for financial support for use of public irrigation products and services includes:

- A list of entities, tasks and area eligible for financial support for use of public irrigation products and services certified by the People’s Committee of the district.

- An application form for approval for volume of tasks and area eligible for financial support for use of public irrigation products and services.

3. In the cases an irrigation project management and operation company and internal irrigation institution manage an irrigation project and the company is in charge of source generation, such company shall sign a contract with the internal irrigation institution on for management of part of the irrigation project within the irrigation project system to form a basis for payment of subsidies.

4. Payment and provision of subsidies with respect to method of assigning tasks

a) According to the approved budget estimate and estimate of the organization or individual operating the irrigation project, the finance authority shall provide subsidies for such organization/individual twice in the year. 60% of total subsidies shall be provided in the first and 40% of total subsidies shall be provided in the third quarter according to the first 6 months report on implementation of the plan for irrigation project operation, expected plan for irrigation project operation in the late 6 months and expected annual plan for irrigation project operation of the organization operating the irrigation project. The distribution of subsidies shall be made through a payment order.

b) An application for distribution of subsidies includes an application form for distribution of subsidies; a decision on assignment of tasks issued by a competent authority; expenditure estimate; 6 months’ report on implementation of the plan.

c) Regarding the organization operating an irrigation project that is assigned to manage part of the irrigation project within the irrigation project system under the management of the irrigation project management and operation company, the company shall advance and provide subsidies to the irrigation institution under the contract between the two parties. The advance shall be given according to the advance paid by the State budget to the company.

5. Payment and provision of subsidies with respect to purchase order method

a) After the purchase order contract is signed, the finance authority shall advance 60% of subsidies under the contract to the unit receiving the purchase order. Upon receipt of a report on execution of the purchase order contract, which states that 60% of the contract value is reached, the finance authority shall advance 30% of subsidies under the contract. The remaining 10% of subsidies shall be distributed after the contract is completed. The distribution of subsidies shall be made through a payment order;

b) An application for distribution of subsidies includes an application form for distribution of subsidies; a decision on giving estimate; copy of the purchase order contract; report on execution of the purchase order contract.

6. Payment and provision of subsidies with respect to the bidding method

a) After the contract-awarding agreement is signed, the finance authority shall advance 50% of subsidies under the contract to the contractor. Upon receipt of a report on execution of contract-awarding agreement, which states that 60% of the contract value is reached, the finance authority shall advance 40% of subsidies under the contract. The remaining 10% of subsidies shall be distributed after the contract is completed. The distribution of subsidies shall be made through a payment order;

b) An application for distribution of subsidies includes an application form for distribution of subsidies; copy of the contract-awarding agreement; record on commissioning of volume according to the contract value, report on execution of the contract-awarding agreement.

Article 17. Settlement of subsidies for use of public irrigation products and services

1. The subsidies for use of public irrigation products and services shall be settled as prescribed by the Law on State Budget and legal documents elaborating the law.

2. Organizations/individuals operating the irrigation project shall provide sufficient documents which will serve as the basis for payment and settlement of subsidies (certified true copy):

a) A contract for provision and use of public irrigation products/services;

b) A record on completion of the contract for provision and use of public irrigation products/services. In case the water user is the People’s Committee of the commune, cooperative, water user group, director of an enterprise, experimental station or plantation, it is required to enclose a list of households and their land area of land.

Article 18. Handling surplus and deficit of subsidies for use of public irrigation products and services

1. Handling of surplus and deficit of subsidies provided for organizations operating irrigation projects: on an annual basis, after the final account of subsidies is approved by the competent authority, if the provided subsidies are greater than the subsidies provided according to the final account, the difference shall be returned to the state budget. If the provided subsidies are fewer than the subsidies provided according to the final account, the additional funding from budget shall be provided as prescribed.

2. Annually, the Department of Finance shall cooperate with the Department of Agriculture and Rural Development in aggregating the final accounts of subsidies for use of public irrigation products and services and submit a aggregated final account to the People’s Committee of the province, which will submit it to the Ministry of Agriculture and Rural Development and Ministry of Finance for consideration.

Chapter IV

IMPLEMENTATION

Article 19. Reporting

1. Regarding purchase order method

a) The units receiving purchase orders shall submit a first 6 months report on execution of the purchase order contract and make a record on contract completion at the end of the year to form a basis for settlement of the subsidies for use of public irrigation products and services;

b) The report shall be submitted to the ordering authority and finance authority: the Ministry of Agriculture and Rural Development and Ministry of Finance with respect to tasks of the central government budget; the Department of Finance and Department of Agriculture and Rural Development with respect to tasks of the local government budget before June 31 of the plan year, regarding 6 months’ report and before January 31, regarding annual report.

2. Regarding task assignment method

a) On a biannual basis and at the end of the fiscal year, the unit assigned tasks shall submit a first 6 months report on implementation of the plan for irrigation project operation, expected annual plan for irrigation project operation and report on implementation of the annual plan;

b) The report on implementation of the plan shall be submitted to the assigning authority and finance authority: the Ministry of Agriculture and Rural Development and Ministry of Finance with respect to the unit operating the irrigation project under the management of the central government; the Department of Finance, Department of Agriculture and Rural Development and People’s Committee of the district with respect to the unit operating the irrigation project under the management of the local government before June 31 of the plan year, regarding 6 months’ report and before January 31, regarding annual report.

3. The unit receiving financial support shall prepare a report as prescribed. Upon use of public irrigation products/services, the legal representative of the unit receiving financial support shall be responsible to the stat and law for the accuracy and truthfulness of the report.

Article 20. Responsibility of ministriesand branches

1. The Ministry of Finance shall:

a) Decide and announce maximum prices of public irrigation products and services and price bracket for other irrigation products and services as prescribed by law;

b) Aggregate estimates and final accounts of subsidies for use of public irrigation products and services and other subsidies provided to organizations operating irrigation projects under the management of the central government and organizations operating irrigation projects under the management of the province, and submit an aggregated estimate and final account to the Government, which will submit them to the National Assembly for decision as prescribed by the Law on State Budget;

c) Take actions against violations as prescribed on the Law on Prices and other relevant regulations of law.

2. The Ministry of Agriculture and Rural Development shall:

a) Prepare, promulgate or propose the promulgation of legislative documents on procedures, regulations, standards and economic - technical norms for management and operation of irrigation projects; direct implementation of economical irrigation measures;

b) Direct, provide guidance and inspect the implementation of economic - technical norms; procedures and regulations on management and provision of irrigation products and services; subsidies from state budget provided to organization operating irrigation projects;

c) Appraise plans for pricing irrigation products and services prepared by organizations operating irrigation projects under the management of the central government; and consolidate pricing plans prepared by organizations operating irrigation projects under the management of the People’s Committee of the province. Aggregate data and consolidate pricing plans and submit them to the Ministry of Finance as prescribed;

d) Decide on specific prices of irrigation products and services under its management according to Article 35 of the Law on Irrigation and regulations of the Law on Irrigation and other relevant regulations of law;

dd) Rearrange organizations operating irrigation projects under its management in accordance with regulations of the Law on Irrigation and other relevant regulations of law;

e) Direct, provide guidance and inspect the management and operation of the system of irrigation projects, decide on specific prices of irrigation products and services under the management of the central government.

3. People’s Committees of provinces shall:

a) Assign units to manage irrigation projects, decide on the scope of the determination of the point of delivery and reception of irrigation products and services under the guidance of the Ministry of Agriculture and Rural Development;

b) Direct specialized agencies and organizations operating irrigation projects to establish economic - technical norms for management and operation of irrigation projects under the management of the local government, and submit them to the People s Committee of the province for consideration and promulgation;

c) Decide on bidding, purchase order and task assignment methods and approve estimates, distribute, manage, pay and settle subsidies provided for organizations operating irrigation projects.

d) Appraise irrigation product and service pricing plan of organizations operating irrigation projects under the management of the local government; take responsibility for data and documents contained in the dossier on pricing plan and submit the dossier to the Ministry of Agriculture and Rural Development within the prescribed limit;

d) Decide on specific prices of irrigation products and services under their management according to Article 35 of the Law on Irrigation and other relevant regulations of the law;

e) Make an annual estimate of subsidies for use of public irrigation products/services provided to the organizations operating irrigation projects and submit it to the People s Council of the province, which will aggregate and submit it to the Ministry of Finance and Ministry of Agriculture and Rural Development;

g) Inspect the collection, use, payment and settlement of subsidies for use of public irrigation products and services as prescribed by the Law on State Budget;

h) Rearrange organizations operating irrigation projects in accordance with regulations of the Law on Irrigation and other relevant regulations of law;

i) Inspect the decision on prices of public irrigation products and services funded by state budget; inspect and supervise subsidies for use of public irrigation products and services and use of state budget allocated to organizations operating irrigation projects; direct implementation of economical irrigation measures;

k) Take actions against violations as prescribed on the Law on Prices and other relevant regulations of law;

l) Approve the final account of area, irrigation measures, tasks and subsidies for use of public irrigation products and services and other subsidies provided to organizations operating irrigation projects;

m) Supervise the management and operation of the system of irrigation projects and economical use of water within their power.

4. Organizations operating irrigation projects shall:

a) Prepare irrigation product and service pricing plan and take responsibility for the reasonableness and lawfulness of the data and documents contained in the dossier on the pricing plan and submit it to the competent authority within the prescribed limit;

b) Sufficiently and promptly provide irrigation and drainage services for agricultural production, aquaculture and salt production purposes while strictly following water conservation policy;

c) Annually make annual estimate, prepare business plan and submit them to:

The Ministry of Agriculture and Rural Development and Ministry of Finance, regarding the organizations operating irrigation projects under the management of the central government.

The People’s Committee of the province, which will submit them to the Ministry of Finance and Ministry of Agriculture and Rural Development and, regarding the organizations operating irrigation projects under the management of the local government.

d) Subject to the inspection at the request of the competent authority and comply with other regulations of law.

5. Water users shall:

a) Direct and cooperate with households and individuals to carry out water conservation irrigation and drainage policy;

b) Cooperate with households and individuals in determining area of irrigation/drainage land eligible for financial support for use of public irrigation products and services as prescribed;

c) Consolidate, review, commission and compare with organizations operating irrigation projects in terms of the area of irrigated and drained land to serve payment and settlement of subsidies for use of public irrigation products and services.

Article 21. Effect

1. This Decree takes effect on July 01, 2018.

2. The organizations and public service providers (including center for irrigation project management and operation; board of irrigation project management and operation; irrigation project management and operation station) that are assigned to manage and operate irrigation projects by the State shall keep operating irrigation projects in the same way as the internal irrigation institutions and enterprises do pending the conversion into another type of organization operating irrigation in accordance with regulations of the Law on Irrigation.

Article 22. Responsibility for implementation

Ministers, heads of ministerial agencies, heads of Governmental agencies and Presidents of People’s Committees of provinces are responsible for the implementation of this Decree./.

For the Government
Prime Minister
Nguyen Xuan Phuc