DECISION

APPROVING THE NATIONAL PROGRAM ON THE UPGRADING OF URBAN CENTERS DURING 2009-2020

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the November 26, 2003 Construction Law;
At the proposal of the Minister of Construction,

DECIDES:

Article 1. To approve the national program on the upgrading of urban centers during 2009-2020 (below referred to as the Program) with the following principal contents:

I. THE PROGRAM’S OBJECTIVES

1. Strategic objectives:

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- To directly support the implementation of orientations for the master plan on the development of Vietnam’s urban centers;

- to raise living standards of urban inhabitants through investment in improving technical and social infrastructure and urban environmental services;

- To establish criteria for the assessment and classification of technical and social infrastructure facilities of low-income earners’ residential quarters in urban centers as well as criteria for the development and improvement of living standards in each urban center.

2. Specific objectives up to 2020:

a/ 100% of urban inhabitants will get access to clean water and have water closets with septic tanks; 100% of solid wastes will be collected and transported to designated dumping sites; 100% of houses built in areas which are unsafe and unsuitable to people’s life will be relocated and housing conditions will be improved;

b/ 45% of wastewater will be collected and treated; rainwater and wastewater drainage systems will be restored or installed; urban areas will reach road density standards; road lighting systems will be upgraded;

c/ To build a financial system to meet the needs of difficulty-hit households in low-income earners’ residential quarters for loans for renovating their houses;

d/ To raise the capability of different administration levels in the planning and upgrading and development management of urban centers.

II. DURATION AND SCOPE OF THE PROGRAM IMPLEMENTATION

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2. Scope: To upgrade urban centers of grade IV or higher grade nationwide, focusing on the renovation and upgrading of low-income earners’ residential quarters and urban areas which have not yet satisfied technical infrastructure or housing requirements, and areas in which construction density is forecast to be high by 2020.

III. THE PROGRAM’S CONTTENTS

1. Overall program:

a/ By 2020, urban centers of grade IV or higher grade nationwide will be upgraded in the order of priority and selected based on the following criteria:

- Urban centers with many low-income earners’ residential quarters and many residential areas with poor technical or social infrastructure;

- Urban centers located in strategic areas in the region, which have an affect on regional or sub-regional development;

- Urban centers which lack technical or social infrastructure;

- Urban centers capable of receiving and implementing projects.

In the course of investment, priority will be given to urban centers in underdeveloped areas with high urban center density.

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- To upgrade grade-III urban technical infrastructure, including water supply, water drainage, collection, transportation and disposal of solid waste, roads and public lighting, for low-income earners’ residential quarters, urban areas and areas in the vicinity of expanded urban centers;

- To upgrade grade-I and –II infrastructure, including supply of clean water, treatment of wastewater, water drainage, collection and treatment of solid waste, and roads;

- To arrange resettlement areas for inhabitants in unsafe zones in renovated areas and resettlement areas:

- To raise the capability to plan, and manage the upgrading and development of, urban centers; to raise community awareness and participation.

2. Investment plan:

a/ Total capital demand:

The total capital for upgrading urban centers of grade IV or higher grade during 2009-2020 is estimated at around VND 175 trillion.

b/ Implementation plan:

To implement the Program from 2009 to 2020 with state budget funds, official development assistance (ODA) and other domestically and internationally raised sources of capital. To select a number of urban centers for which upgrading projects during 2009-2015 will be prioritized to be formulated and funded with ODA, especially financial supports from the World Bank, under specific plans.

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Urban centers of grade IV or higher grade nationwide will be upgraded in phases, based on the assessment of the investment development situation as follows:

- During 2009-2015: urban centers which are prioritized to be upgraded on a pilot basis;

- During 2010-2016: To upgrade 30% of total urban centers, giving priority to all urban centers of grade II or higher grade which will account for 55% of urban centers to be upgraded in this period, while grade-III urban centers will account for 45%;

- During 2011-2018: To continue upgrading 30% of total urban centers, giving priority to the remaining grade-III urban centers which will account for 65% of urban centers to be upgraded in this period, while grade-IV urban centers will account for 35%;

- From 2013 to 2020: To upgrade the remaining urban centers.

IV. CAPITAL SOURCES

1. State budget funds:

- Central budget funds;

- Local budget funds.

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- Non-refundable aid;

- Preferential loans.

3. Domestically raised capital sources:

- People’s contributions;

- Urban development funds;

- Financial supports and investments from other organizations and individuals.

V. ORGANIZATION OF IMPLEMENTATION

1. The Program Steering Committee, chaired by the Ministry of Construction and joined by representatives of concerned agencies, shall:

- Direct the formulation of implementation plans in each phase:

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- Collaborate with central and provincial agencies as well as domestic and international investors in the course of implementation of the Program.

2. The Ministry of Construction shall:

- Assume the prime responsibility for, and collaborate with the Ministry of Planning and Investment, the Ministry of Finance and concerned agencies in, drawing up annual plans and making investment portfolios on the upgrading of urban centers for submission to the Government for approval;

- Assume the prime responsibility for, and collaborate with the Ministry of Planning and Investment, the Ministry of Finance and concerned agencies in, guiding and urging provincial-level People’s Committees to implement the Program and inspecting their implementation according to the Program’s objectives and contents, then sum up annual implementation results;

- Collaborate with provincial-level People’s committees of localities where exist urban centers prioritized to be upgraded on a pilot basis and proposed to be financed by the World Bank in promptly working out plans to obtain preferential loans from the World Bank.

3. The Ministry of Planning and Investment shall:

- Assume the prime responsibility for, and collaborate with the ministry of construction and concerned agencies in, summing up and submitting to the Government for approval annual capital plans for the Program;

- Assume the prime responsibility for, and collaborate with the Ministry of Construction in, step by step including urban centers in annual lists of ODA-calling programs and projects, and submit them to the Government for approval.

4. The Ministry of Finance shall assume the prime responsibility for, and collaborate with the Ministry of Construction and the Ministry of Planning and Investment in, studying and formulating financial mechanisms and policies to promote and raise domestic and international capital for the upgrading of urban centers.

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6. Provincial-level People’s committees shall:

- Directly manage investment capital for the implementation of projects under the Program decentralized to their localities:

- Direct People’s Committees of provincially run urban centers in formulating, for provinces, or formulate by themselves, for centrally run cities, annual plans on the upgrading of urban centers, then report thereon to the Ministry of Construction for sum-up and assistance’

- Mobilize resources (local budgets, people’s contributions and other lawful sources of capital) for building technical infrastructure works under the Program according to decentralization;

- Organize and direct the effective implementation of projects on the upgrading of urban centers under the Program in their localities according to approved plans, and periodically report thereon to the Ministry of Construction.

Article 2. This Decision takes effect on the date of its signing.

Article 3.

Ministers, heads of ministerial –level agencies, heads of government-attached agencies and presidents of provincial-level People’s Committees shall implement this Decision.

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PRIME MINISTER




Nguyen Tan Dung