DECISION

PROMULGATING THE REGULATION ON MANAGEMENT DECEN-TRALIZATION AND AUTHORIZATION OF STATE BUDGET-FUNDED WORK CONSTRUC-TION INVESTMENT PROJECTS MANAGED BY THE MINISTRY OF TRANSPORT

THE MINISTER OF TRANSPORT

Pursuant to Construction Law No. 16/2003/QH11 of November 26, 2003 and December 25, 2001 Law on Organization of the Government;

Pursuant to Bidding Law No. 61/2005/QH11 of November 29, 2005;

Pursuant to the Governments Decree No. 34/2003/ND-CP of April 4, 2003, defining the functions, tasks, powers and organizational structure of the Ministry of Transport;

Pursuant to the Governments Decrees No. 16/ 2005/ND-CP of February 7, 2005, on management of work construction investment projects; and No. 112/2006/ND-CP of September 29, 2006, amending and supplementing a number of articles of Decree No. 16/2005/ND-CP;

Pursuant to the Governments Decree No. 209/2004/ND-CP of December 16, 2004, on management of constmction work quality;

Pursuant to the Governments Decree No. 111/2006/ND-CP of September 29,2006, guiding the implemen-tation of the Bidding Law and the selection of construction contractors under the Construction Law:

Pursuant to the Governments Decree No. 131/2006/ND-CP of November 9. 2006. promulgating the Regulation on management and use of official development assistance;

Pursuant to the Governments Decree No. 99/2007/ND-CP of June 13, 2007, on management of work constmction investment expenses;

At the proposal of the Director of the Transport Work Quality Inspection and Management,

DECIDES:

Article 1. To promulgate together with this Decision the Regulation on management decentralization and authorization of state budget-funded work construction investment projects managed by the Ministry of Transport.

Article 2. This Decision takes effect 15 days after its publication in CONG BAO.

Article 3. The director of the Office, the Chief Inspector, and directors of departments and administrations, of the Ministry, directors of provincial/municipal Transport Services, provincial/ municipal Public Transport Work Services, and heads of concerned agencies and organizations, and concerned individuals shall implement this Decision.

REGULATION

ON MANAGEMENT DECEN-TRALIZATION AND AUTHORIZATION OF STATE BLDGET-FLNDED WORK CONSTRUCTION INVESTMENT PROJECTS MANAGED BY THE MINISTRY OF TRANSPORT
(Promulgated together with the Transport Ministers Decision No. 59/2007/QD-BGTVT of November 22, 2007)

Chapter 1

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Regulation provides for the management decentralization and authorization of state budget-funded work construction investment projects managed by the Ministry of Transport (below referred to as projects for short).

2. The management of official development assistance-funded projects (below referred to as ODA projects for short) managed by the Ministry of Transport complies with this Regulation and Vietnamese laws on ODA project management and treaties on ODA to which the Socialist Republic of Vietnam is a contracting party. When treaties on ODA to which the Socialist Republic of Vietnam is a contracting party otherwise provide, those treaties prevail.

Article 2. Subjects of application

This Regulation applies to units which are assigned to be project owners, including line management departments, provincial/municipal Transport Services, provincial/municipal Public Transport Work Services, provincial/municipal Transport Health Services, training institutions, institutes, enterprises and agencies, and organizations and individuals involved in the management of state budget-funded work construction investment projects managed by the Ministry of Transport.

Chapter 2

INVESTMENT PREPARATION STAGE

Article 3. Competence to decide on work construction investment

1. The Minister may decide on investment in:

a/ Group-A and -B projects;

b/ Group-C projects using development investment funds which apply scientific advances and new technologies;

c/ Group-C projects which are managed by two or more line management departments or not managed by line management departments.

2. The directors of the Vietnam Aviation Administration, Vietnam National Road Administration, Vietnam Maritime Administration, Vietnam Railway Administration, Vietnam Inland Waterway Administration and Vietnam Register shall decide on investment in:

a/ Group-C projects other than those specified at Points b and c, Clause 1 of this Article;

b/ Works for which only a technical-economic repon on development investment fund use is required after getting written agreement of the Planning and Investment Department;

c/ Projects which use non-business funds for management and maintenance of works under their line management.

Article 4. Ad justment of investment projects

1. Investment projects shall be adjusted in accordance with Article 13 of the Governments Decree No. 16/2005/ND-CP of February 7, 2005, on management of work construction investment projects (below referred to as Decree No. 16/2005/ND-CP for short). Clause 8, Article 1 of the Governments Decree No. 112/2006/ND-CP of September 29, 2006, amending and supplementing a number of articles of Decree No. 16/2005/ND-CP (below referred to as Decree No. 112/2006/ND-CP for short), and current regulations.

2. When the adjustment of an approved project affects its investment scale and objectives, the project owner shall make a proposal for on-principle adjustment and/or supplementation of project items; the competent authority shall issue a decision to permit on principle this adjustment and/or supplementation. The project owner shall elaborate a project on the adjusted and/or supplemented items and carry out procedures for appraisal and approval of the adjusted project and subsequent steps as prescribed for new items of the project.

3. When adjusted and/or supplemented project items need to be implemented immediately in order not to affect the project implementation schedule, the project owner shall make a proposal for on-principle adjustment and/or supplementation of project items which must stress the urgency of those items and propose their implementation. The competent authority shall issue a decision on guidelines for adjustment and/or supplementation of project items which permit the adjusted project elaboration, selection of design investigation contractors and design examination to be carried out simultaneously. Based on these guidelines, the project owner shall conduct design investigation, and appraise and approve the adjusted project for prompt implementation. At the same time, the project owner shall elaborate, appraise and submit the adjusted project according to prescribed procedures to ensure that the technical design be approved right after the decision approving the project adjustment is issued.

4. When the project adjustment causes an excess in the projects total investment, after elaborating the adjusted project in accordance with Clauses 2 and 3 of this Article, the project owner shall submit the projects adjusted total investment together with the sub-project or the projects adjusted items for appraisal and approval according to regulations. The project owner may only approve the bidding packages adjusted cost-estimate after a decision approving the totai investment adjustment is issued.

Chapter 3

INVESTMENT IMPLEMENTATION STAGE

Article 5. Selection of contractors in construction activities

1. The selection of contractors in construction activities complies with the Construction Law, the Bidding Law, the Governments Decree No. 111/2006/ND-CP of September 9, 2006. guiding the implementation of the Bidding Law and the selection of construction contractors under the Construction Law - below referred to as Decree No. 111/2006/ND-CP for short), and current regulations.

2. All steps of the bidding process for projects in which investment is decided under the Ministrys decentralization mechanism shall be appraised and approved by the authorities deciding on their investment.

3. For projects in which investment is decided by the Ministry, the Minister shall authorize project owners to appraise and approve bidding invitation dossiers and contractor selection results for all bidding packages of Group-B and -C projects.

Article 6. Adjustment of approved designs

1. When adjusting the approved design of a project without affecting its investment objectives and scale and causing an excess in its total investment, the project owner shall organize the elaboration, appraisal and approval of the adjusted design.

The project owner shall make regular updates on financial-technical changes and adjustments to ensure that arising adjustments and supplements do not cause an excess in the projects total investment.

2. When adjusting the design of a project without affecting its investment objectives and scale, but causing an excess in its total investment, the project owner shall promptly carry out prescribed procedures for adjusting the total investment to be submitted for approval.

Pending the approval of the adjusted total investment by a competent authority, to ensure the projects continuation, the project owner shall submit to the competent authority a written request for approval of implementation of the projects adjusted and/or supplemented items, or continue the project implementation within the approved investment, and may only implement them according to regulations after an on-principle written approval is issued by a competent authority.

Article 7. Adjustment of cost estimates

1. The cost estimate of a project shall be adjusted under Article 11 of the Governments Decree No. 99/2007/ND-CP of June 13, 2007, on management of work construction investment expenses (below referred 10 us Decree No. 99/2007/ND-CP for short).

2. When adjusting the projects cost estimate without causing an excess in its total investment, the project owner shall organize the appraisal and approval of the adjusted cost estimate according to prescribed procedures. The project owner shall make regular updates to ensure that arising adjustments and supplements do not cause an excess in the projects total investment.

3. When the adjustment of the cost estimate of a project causes an excess in its total investment, after elaborating the total adjusted investment, the project owner shall submit it to the authority competent to approve the total adjusted investment as a basis for appraising and approving the cost estimate adjustment according to regulations. The project owner may only approve the adjusted cost estimate after a decision approving the total investment adjustment is issued.

The project owner shall request the competent authoritys temporary approval of the adjusted cost estimate when it is necessary to carry out payment procedures.

Article 8. Management of construction work implementation and quality

1. Project owners shall manage the implementation and quality of construction works under Articles 30, 31, 32, 33 and 34 of the Governments Decrees No. 16/2005/ND-CP and No. 209/2004/ND-CP of December 16, 2004, on management of construction work quality.

2. The Minister may assign the Transport Work Inspection and Management Department (below referred to as the Inspection Department) to examine the management of construction work implemen-tation and quality for work construction investment projects managed by the Ministry of Transport. When detecting suspected work construction quality, the Inspection Department shall request project owners to examine work quality according to required plans and guidelines.

3. The Minister may assign project owners to directly work with the State Appraisal Council, State Acceptance Council, other councils, and inspection, examination and audit agencies on projects subject to examination and supervision of the above agencies.

Article 9. Management of projects expenses and public assets and disbursement and final settlement of work construction investment

1. Project owners shall comply with the provisions on management of construction investment expenses of Articles 38 thru 43 of Decree No. 16/2005/ND-CP, Clause 14, Article 1 of Decree No. 112/2006/ ND-CP, Decree No. 99/2007/ND-CP, and current regulations.

2. Project owners shall manage expenses and make disbursement and final settlement for projects, manage assets during project implementation and collect them after the project completion.

The Minister may assign the Finance Department to examine the management of assets during the project implementation and the collection of assets after the project completion.

3. Authorities competent to decide on investment shall appraise and approve the final settlement of investment capital of completed work construction projects and are responsible for their decisions.

For Group-B and -C projects in which investment is decided by the Ministry, the Minister may assign the Finance Department to propose the Ministrys immediate subordinate agencies to be authorized or decentralized to approve the final settlement of completed projects.

Chapter 4

ORGANIZATION OF IMPLEMENTATION

Article 10. Organization of implementation

1. In the course of project implementation, concerned organizations and individuals shall comply with current regulations of the State, regulations of the Ministry of Transport and this Regulation.

2. All decisions issued according to competence or authorization must be sent to the Ministry of Transport and its functional administrations and departments for report and sum-up.

3. In the course of implementation, agencies and units should submit written reports on arising problems to the Ministry of Transport for consideration, guidance and appropriate amendment or supplementation.