Joint Circular No. 204/2010/TTLT-BTC-BTN&MT dated December 15, 2010 of the Ministry of Finance and the Minitry of Natural Resources and Environtment amending and supplementing some provisions of Joint Circular No. 58/2008/TTLT-BTC-BTN&MT of July 4,2008, of the Ministry of Finance and the Ministry of Natural Resources and Environment, guiding a number of articles of the Prime Minister's Decision No. 130/2007/QD-TTg of August 2, 2007, on a number of financial mechanisms and policies applicable to investment projects under the clean development mechanism

THE MINISTRY OF FINANCE - THE MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT

Joint Circular No. 204/2010/TTLT-BTC-BTN&MT of December 15, 2010, amending and supplementing some provisions of Joint Circular No. 58/2008/TTLT-BTC-BTN&MT of July 4,2008, of the Ministry of Finance and the Ministry of Natural Resources and Environment, guiding a number of articles of the Prime Minister's Decision No. 130/2007/QD-TTg of August 2, 2007, on a number of financial mechanisms and policies applicable to investment projects under the clean development mechanism

Pursuant to the Prime Minister's Decision No. 130/2007/QD-TTg of August 2, 2007, on a number of financial mechanisms and policies applicable to investment projects under the clean development mechanism (below referred to as CDM projects);

Under the Prime Minister s direction in the Government Office's Official Letter No. 1843/ VPCP-QHQT of March 23, 2010, on the formulation of financial mechanisms for the trading in certified emissions reductions (CERs) for CDM projects funded with interest-bearing ODA loans onlent by banks, the Ministry of Finance and the Ministry of Natural Resources and Environment amend and supplement some provisions of Joint Circular No. 58/2008/TTLT-BTC-BTN&MT of July 4, 2008, of the Ministry of Finance and the Ministry of Natural Resources and Environment, guiding a number of articles of the Prime Minister's Decision No. 130/2007/QD-TTg of August 2, 2007, on a number of financial mechanisms and policies applicable to investment projects under the clean development mechanism (below referred to as Joint Circular No. 58/2008/TTLT-BTC-BTN&MT), as follows:

Article 1. To amend and supplement some provisions of Joint Circular No. 58/2008/TTLT-BTC-BTN&MT as follows:

1. To amend and supplement Clause 3, Section I as follows:

3. When selling or transferring CERs to their countries, CERs owners being foreign investors shall report such to the Ministry of Natural Resources and Environment and Vietnam Environment Facility and fully pay CERs sale fees within 15 working days after transferring CERs to buyers or to their countries. For ODA-funded CDM projects, collected CERs shall be managed and used as follows:

3.1. For CDM projects with ODA funds wholly allocated from the state budget, collected CERs will be owned by the State. Project investors shall sell CERs and remit all CERs sales into the Vietnam Environment Facility after subtracting sale expenses (if any).

3.2. For CDM projects with ODA funds borrowed from domestic credit institutions or directly from the Ministry of Finance or onlending agencies authorized by the Ministry of Finance, collected CERs will be owned by investors.

3.3. For CDM projects with both state budget-allocated ODA funds and funds of or raised by enterprises themselves or ODA funds borrowed from commercial banks or directly from the Ministry of Finance or onlending agencies authorized by the Ministry of Finance, CERs collected from CDM projects" shall be divided to the State and investors in proportion to funds allocated from the state budget and other funds for investment in CDM projects.

CERs divided in proportion to ODA funds allocated from the state budget will be owned by the State. Project investors shall sell CERs and remit all sales from CERs owned by the State into the Vietnam Environment Facility after subtracting sale expenses (if any).

2. To add the following Clause 6 to Section I:

6. For CDM projects under the CDM Program of Activities (PoA), investors and designers of component CDM projects under PoA shall pay management charges to PoA coordinating agencies or units under their cooperation agreements and pay CERs sale fees under Joint Circular No. 58/2008/TTLT-BTC-BTN&MT and this Circular.

3. To amend and supplement Clause 3, Section II as follows:

3. Payable CERs sale fees shall be determined as follows:

The quantity and sale prices of CERs are determined based on signed CERs trading contracts. When CERs owners do not sell but transfer CERs to their countries, the CERs quantity for fee calculation is the actual quantity of transferred CERs and CERs prices for determining payable fees shall be based on market prices at the time of CERs transfer.

4. To amend and supplement Point 4.1, Clause 4, Section II as follows:

4.1. CERs owners shall declare the quantity of CERs sold or transferred to their countries, calculate and declare by themselves payable fee amounts (according to a set form, not printed herein); and, within 15 working days after transferring CERs to buyers or to their countries, remit CERs sale fees into the Vietnam Environment Facility according to the declared figures.

For CDM projects formulated and executed in the forms specified in Clause 3, Article 4 of Decision No. 130/2007/QD-TTg, if foreign investors or project formulation consultants are not headquartered in Vietnam, domestic investors shall, right at the stage of project formulation, reach agreement with, and pay CERs sale fees on behalf of, foreign partners.

5. To amend and supplement Point 4.3, Clause 4, Section II as follows:

4.3. CERs sale fees shall be collected in (convertible) foreign currencies or in Vietnam dong at the average inter-bank foreign exchange rate announced by the State Bank of Vietnam at the time of fee collection.

Article 2. Implementation provision

This Circular takes effect 45 days after the date of its signing. Any problems arising in the course of implementation should be promptly reported to the Ministry of Finance and the Ministry of Natural Resources and Environment for study and settlement.

For the Minister of Natural Resources and Environment

Deputy Minister

TRAN HONG HA

For the Minister of Finance

Deputy Minister

DO HOANG ANH TUAN