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CIRCULAR

GUIDING THE FINANCIAL MANAGEMENT OF THE TASK OF SUPPLYING PUBLIC-UTILITY PRODUCTS AND SERVICES IN ROAD AND INLAND WATERWAY TRANSPORT

 

THE MINISTRY OF FINANCE

 

Pursuant to November 29, 2005 Law No. 61/ 2005/QH11 on Bidding and its guiding documents;

Pursuant to the Government's Decree No. 60/ 2003/ND-CP of June 6, 2003, detailing and guiding the implementation of the Law on the State Budget;

Pursuant to the Government's Decree No. 168/2003/ND-CP of December 24, 2003, specifying financial sources and the management and use of financial sources for road management and maintenance;

Pursuant to the Government's Decree No. 51/ 2005/ND-CP of April 11, 2005, specifying financial sources and the management and use of financial sources for inland waterway management and maintenance;

Pursuant to the Government's Decree No. 170/2003/ND-CP of December 25, 2003, detailing the implementation of a number of articles of the Ordinance on Prices; Decree No. 75/2008/ND-CP of June 9, 2008, amending and supplementing a number of articles of the Government's Decree No. 170/2003/ND-CP of December25, 2003, detailing the implementation of a number of articles of the Ordinance on Prices;

Pursuant the Government's Decree No. 118/ 2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Prime Minister's Decision No. 256/2006/QD-TTg of November 9, 2006, promulgating the Regulation on bidding, placement of orders, and assignment of plans for the production and supply of public-utility products and services;

The Ministry of Finance guides the financial management of the task of supplying public-utility products and services in road and inland waterway transport as follows:

 

Article 1. General provisions

1. Scope of regulation: Public-utility products and services for road and inland waterway transport which are put up for bidding, supplied under orders placed or plans assigned by competent state agencies at prices or charge rates prescribed by the State. Payments for these products and services are covered by the state budget.

2. Subjects of application: This Circular applies to units holding bidding, placing orders or assigning plans for the supply of public-utility products and services (those tasked by the Ministry of Transport to take charge of national highways and national inland waterways, provincial-level People's Committees tasked to take charge of local roads and inland waterways); state enterprises, enterprises of other economic sectors, cooperatives, public non-business units (below collectively referred to as public-utility producers and service suppliers) whose functions, tasks or business registrations are relevant to the production and supply of public-utility products and services.

3. Public-utility product and service suppliers must fully meet the conditions for supplying public-utility products and services specified in Clause 2, Article 6; Clause 1, Article 12; and at Point 1, Article 17 of the Prime Minister's Decision No. 256/2006/QD-TTg of November 9,2006, promulgating the Regulation on bidding, placement of orders, and assignment of plans for the production and supply of public-utility products and services.

3. Bidding, placement of orders and assignment of plans shall be conducted for road and inland waterway management and maintenance work according to road or inland waterway routes.

The lengths of road and inland waterway routes shall be specified by the Ministry of Transport or provincial-level People's Committees for national highways and national inland waterways or local roads and inland waterways, respectively.

4. The duration of supplying public-utility products and services for road and inland waterway management and maintenance by different methods is as follows:

- Bidding: 3 years for road management and regular maintenance;

- Placement of orders: 1 year;

- Assignment of plans: 1 year.

5. Criteria for classification of urban roads and roads in remote and deep-lying areas shall be specified by the Ministry of Transport.

Article 2. Methods of supplying public-utility products and services

1. Bidding: This method applies to state enterprises and enterprises of other economic sectors and cooperatives; public non-business units.

a/ For roads:

- Management and regular maintenance of road routes (except ferry landings and pontoon bridges for roads, road tunnels and urban roads, roads in remote and deep-lying areas) at approved public-utility product prices or service charge rates (below referred to as product or service prices) which are subject to bidding under current regulations.

Based on the specific conditions of each road route, the Ministry of Transport (in case of national highways) or provincial-level People's Committees (in case of local roads) shall consider and decide on the application of the bidding method. In case of necessity, the Ministry of Transport (in case of national highways) or provincial-level People's Committees (in case of local roads) shall consider and decide on the application of the method of placing orders.

- Regular repair (medium repair or overhaul) of roads (except road tunnels); repair of damage caused by storms, floods or other disasters to restore traffic (second-step road opening to traffic) for works or work items with their product or service prices subject to bidding under current regulations.

b/ For inland waterways:

River dredge and regulation; clearance and removal of obstacles in riverbeds; overhaul of embankments and flow regulation works; restoration of inland waterway works and infrastructure facilities damaged by floods or storms, for works or work items with their product or service prices subject to bidding under current regulations.

2. Placement of orders or assignment of plans:

2.1. The method of placing orders applies to state enterprises and enterprises of other economic sectors, cooperatives and public non-­business units not under the Ministry of Transport or provincial-level Transport Departments.

a/ For roads:

- Management and regular maintenance of road routes in urban centers or remote or deep-lying areas;

- Management and regular maintenance of road routes (except those in urban centers or remote or deep-lying areas) with their product or service prices lower than those subject to bidding under current regulations.

- Cross-river transportation of passengers and vehicles (covering also regular maintenance of vehicles, ferry landings or pontoon bridges for roads);

- Repair of damage caused by storms, floods or other disasters to restore traffic (first-step road opening to traffic);

- Regular repair (medium repair or overhaul); repair of damages caused by storms, floods or other disasters to restore traffic (second-step road opening to traffic) for works or work items with their product or service prices lower than those subject to bidding under current regulations;

- Management and organization of the collection of road tolls at each toll booth (covering also regular maintenance);

- Management and maintenance of road tunnels;

- Management and regular maintenance of supplies, equipment and means reserved for flood or storm prevention, combat and road damage repair to assure uninterrupted traffic.

b/ For inland waterways:

- Management and regular maintenance of inland waterways; on-standby rescue and salvage and prevention of ship-bridge collision during the rainy and flood season;

- Repair of flood and storm-caused damage to assure uninterrupted navigation;

- Management and regular maintenance of supplies, equipment and means reserved for flood or storm prevention, combat and damage repair to assure uninterrupted navigation;

- River dredge and regulation; clearance and removal of obstacles in riverbeds; overhaul of embankments and current regulation works; restoration of inland waterway works and infrastructure facilities damaged by floods or storms, for works or work items with their product or service prices lower than those subject to bidding under current regulations.

When necessary, the method of bidding may apply under regulations.

2.2. The method of placing orders or assignment of plans apply to public non-business units of the Ministry of Transport or provincial-level Transport Departments.

Based on the functions and tasks of non-­business units, management requirements and pursuant to current regulations, the Ministry of Transport (in case of national highways and national inland waterways) or provincial-level Transport Departments (in case of local roads and inland waterways) shall decide on the application of the method of placing orders or assigning plans as appropriate.

a/ For roads:

-          Management and regular maintenance of road routes (including those in urban centers or remote or deep-lying areas);

-          Cross-river transportation of passengers and vehicles (covering also regular maintenance of vehicles, ferry landings or pontoon bridges for roads);

-          Regular repair (medium repair); repair of damage caused by storms, floods or other disasters;

-          Management and organization of the collection of road tolls at each toll booth (covering also regular maintenance);

-          Management and maintenance of vehicle weight-checking stations;

-          Management and maintenance of road tunnels;

-          Management and regular maintenance of supplies, equipment and means reserved for flood or storm prevention, combat and damage repair to assure uninterrupted traffic.

b/ For inland waterways:

-          Management and regular maintenance of inland waterways; on-standby rescue and salvage and prevention of ship-bridge collision during the rainy and flood season;

-          Repair of flood and storm-caused damage to assure uninterrupted navigation;

-          Management and regular maintenance of supplies, equipment and means reserved for flood or storm prevention, combat and damage repair to assure uninterrupted navigation;

-          River dredge and regulation; clearance and removal of obstacles in riverbeds; overhaul of

-          embankments and flow regulation works; restoration of inland waterway works and infrastructure facilities damaged by floods or storms, for works or work items with their product or service prices lower than those subject to bidding under current regulations.

-          In the course of implementation, if units assigned with plans are unable to perform by themselves a task of supplying products or services or a part or step thereof and have to hire other providers, they shall organize bidding or place orders under this Circular.

3. Road toll booths and vehicle weight-checking stations are tasked to produce, build or procure supplies, tools, instruments, equipment, means and other assets reserved for the prevention and combat of floods and storms and damage repair to assure uninterrupted road traffic; the production or procurement of signs, supplies, tools, instruments and other assets for the maintenance, prevention and combat of floods or storms and damage repair to assure uninterrupted inland waterway navigation. Overhaul of equipment, vehicles, road toll booths, vehicle weight-checking stations and other assets (for roads); and overhaul of equipment, vehicles, station houses and other assets (for inland waterways) are subject to bidding, placement of orders or assignment of plans under the State's current regulations.

Article 3. Elaboration, submission and approval of public-utility product or service prices

Elaboration, submission and approval of public-utility product or service prices comply with the Government's Decree No. 170/2003/ ND-CP of December 25. 2003, detailing a number of articles of the Ordinance on Prices; Decree No. 75/2008/ND-CP of June 9, 2008, amending and supplementing a number of articles of Decree No. 170/2003/ND-CP of December 25, 2003, and guiding documents of the Ministry of Finance and the Ministry of Transport.

Article 4. Supply of public-utility products and services

On the basis of the task of supplying public-utility products and services and assigned state budget estimates, and depending on each task or work specified in Article 2 of this Circular:

1. Bidding: Based on plans on bidding for performance of the task of supplying public-utility products and services approved by competent authorities, tasked units shall hold bidding under the Bidding Law and its current guiding documents; the Prime Minister's Decision No. 256/2006/QD-TTg of November 9,2006, promulgating the Regulation on bidding, placement of orders and assignment of plans for the production and provision of public-utility products and services.

Based on bidding results approved by competent authorities, tasked units shall sign contracts with bid winners for supplying public-utility products and services under current regulations.

2. Placement of orders: Based on the task of supplying public-utility products and services assigned by competent authorities, tasked units shall sign contracts to place orders for public-utility products and services with state enter­prises, enterprises of other economic sectors, cooperatives and public non-business units.

Assignment of plans: Based on the task of supplying public-utility products and services assigned by competent authorities, tasked units shall organize the performance of the task.

Article 5. Adjustment of contract prices or prices for performance of the task of supplying public-utility products and services

Adjustment of contract prices or prices for performance of the task of supplying public-utility products and services complies with the Prime Minister's Decision No. 256/2006/QD-TTg of November 9, 2006, promulgating the Regulation on bidding, placement of orders and assignment of plans for production and supply of public-utility products and services: Article 10 for the bidding method, Article 14 for the order-placing method (or contractor appointment), and price adjustment for the plan-assigning method; and guiding documents of the Ministry of Finance and the Ministry of Transport.

Article 6. Payment and financial settlement for public-utility products and services

Payment and financial settlement for public-utility products and services comply with the Prime Minister's Decision No. 256/2006/QD-TTg of November 9, 2006, promulgating the Regulation on bidding, placement of orders and assignment of plans for the production and supply of public-utility products and services; Joint Circular No. 10/2008/TTLT/BTC-BGTVT of January 30, 2008, of the Ministry of Finance and the Ministry of Transport, guiding the manage­ment, payment and settlement of non-business economic expenditures for road management and maintenance; Joint Circular No. 09/2008/TTLT/ BTC-BGTVT of January 30,2008, of the Ministry of Finance and the Ministry of Transport, guiding the management, payment and settlement of non­-business economic expenditures for inland waterway management and maintenance; and other current regulations of the State.

Article 7. Inspection

The Ministry of Transport and provincial-level Transport Departments shall coordinate with finance agencies of the same level in regularly or irregularly inspecting the use of state budget funds, observance of public-utility product and service prices and production costs of public-utility products and services under their management under current regulations on price management and relevant guiding documents.

Article 8. Organization of implementation

This Circular takes effect 45 days from the date of its signing. Any problems arising in the course of implementation should be reported to the Ministry of Finance for consideration and settlement. –