DECISION

ON FINANCIAL MECHANISMS FOR THE IMPLEMENTATION OF THE PROGRAMS ON DEVELOPING RURAL TRAFFIC ROADS, INFRASTRUCTURE FOR AQUACULTURE AND INFRASTRUCTURE IN RURAL CRAFT VILLAGES

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;
Pursuant to the Government’s Resolution No. 05/2001/NQ-CP of May 24, 2001;
At the proposal of the Minister of Finance,

DECIDES:

Article 1.- The State encourages localities to mobilize all resources and effectively organize the implementation of the programs on developing rural traffic roads, infrastructure for aquaculture and infrastructure in rural craft villages.

Article 2.- The presidents of the provincial/municipal People’s Committees shall have to appraise and ratify investment projects on rural traffic roads, infrastructure for aquaculture and infrastructure in rural craft villages according to the current regulations.

Article 3.- On financial mechanisms:

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The investment projects on building rural traffic roads, infrastructure for aquaculture and infrastructure in rural craft villages must be implemented mainly with contributions (in cash, kind or labor) mobilized from people, the State shall consider to provide partial support; the provincial/municipal People’s Committees shall have to apportion funding in the annual local budget (from the concentrated capital construction investment capital sources and other re-investment capital sources according to the National Assembly’s Resolutions’); the concrete investment levels shall be submitted by the provincial/municipal People’s Committees to the provincial/municipal People’s Councils for decision.

For mountainous provinces and provinces with small sources of budget revenues and re-investment capital, the State budget shall provide partial support through the annual capital construction investment plans of the localities.

2. On credit capital:

Apart from the people’s contributions and the State budget support defined in Clause 1 of Article 3, the provinces and centrally-run cities may borrow the State’s preferential credit capital at the zero (0%) interest rate of for the implementation of the projects on developing rural traffic roads, infrastructure for aquaculture and infrastructure in rural craft villages. This preferential credit capital source shall be balanced in the State’s investment credit capital sources and allocated according to the annual plans.

a) Lending mechanisms: In the plan year, if the local budgets fail to ensure adequate capital for the implementation of the above-mentioned programs, such programs shall be entitled to borrow capital from preferential credit sources for investment as prescribed.

b) Time limit for repayment of borrowed capital: The debt repayment shall start after one year and be completed in 4 years; particularly for mountainous provinces and provinces with small budget revenues, the time limit for debt repayment shall not exceed 5 years for each debt amount.

c) Sources for debt repayment: From the revenues left for re-investment according to the National Assembly’s resolutions, economic and public-service capital apportioned in the local budget and concentrated capital construction investment capital to be used for debt repayment as stated in annual plans.

The provincial/municipal People’s Committees shall have to make written commitments on the apportion of adequate capital for debt repayment in their local annual budget estimates.

Article 4.- Implementation organization

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a) Approve investment projects on rural traffic roads, infrastructure for aquaculture and infrastructure in rural craft villages, in their respective localities; and apportion investment capital sources for the implementation thereof;

b) Determine total investment level and allocate concrete capital sources for each field of rural traffic roads, infrastructure for aquaculture and infrastructure in rural craft villages, apportioning capital sources mobilized by the localities themselves; requesting loan provision to local budget in order to cover the deficit amounts; elaborating plans on capital lending and debt repayment, and send them to the Ministry of Planning and Investment, the Ministry of Finance and the Development Assistance Fund.

2. The Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Ministry of Finance and the concerned ministries and branches in apportioning, then submitting to the Prime Minister for decision, the levels of investment capital support from budget and the levels of credit capital lent annually to localities for the implementation of the plans on building rural traffic roads, infrastructure for aquaculture and infrastructure in rural craft villages;

3. Annually, the Ministry of Finance shall, basing itself on the approved levels of total investment capital and lending capital for projects on rural traffic roads, infrastructure for aquaculture and infrastructure in rural craft villages, as well as debt-repayment capability of local budgets, decide the levels of credit capital for each province or centrally-run city; and apportion capital sources to cover difference in interest rates and lending fees for the Development Assistance Fund as prescribed.

4. The Development Assistance Fund shall provide loans to provinces and centrally-run cities (not directly to specific projects) and have to retrieve such loans when they are due; measure the demand for additional allocations to cover differences in interest rates and lending fees as prescribed by regimes, and send it to the Ministry of Finance; and, periodically, report on the implementation results to the Prime Minister and the concerned ministries and branches.

5. In 2001, the State shall earmark VND 1,000 billion from the source of investment credit capital (apart from the amount of VND 500 billion as assigned in the Prime Minister’s Decision No. 41/2001/QD-TTg of March 26, 2001) to lend to localities under this Decision as well as for projects on canal and ditch solidification prescribed in the Prime Minister’s Decision No. 66/2000/QD-TTg of June 13, 2000.

Article 5.- The Ministry of Communications and Transport, the Ministry of Agriculture and Rural Development and the Ministry of Aquatic Resources shall coordinate with the provinces and centrally-run cities in guiding the construction of rural traffic roads, infrastructure in rural craft villages and infrastructure for aquaculture in strict accordance with their assigned functions and tasks.

Article 6.- This Decision takes effect 15 days after its signing.

Article 7.- The ministers, the heads of the ministerial-level agencies, the heads of agencies attached to the Government and the presidents of the provincial/municipal People�s Committees shall have to implement this Decision.

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FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER




Nguyen Cong Tan