Circular 85: Settlement policies for Construction Investment Capital from the State Budget in Vietnam

Circular 85: Settlement policies for Construction Investment Capital from the State Budget in Vietnam (Internet image)

Circular 85/2014/TT-BTC stipulates policies on Settlement of Construction Investment Capital from the state budget implemented in the Forest Protection and Development Plan in Vietnam. To be specific:

- Annual settlement of investment capital: The annual settlement of investment capital is carried out according to the guidance of the Ministry of Finance and any amendments, supplements, or replacements (if any);4

- Settlement of completed projects: The settlement of completed projects is carried out according to the guidance of the Ministry of Finance on the settlement of state-funded projects and any amendments or replacements (if any);

- For forest development investment projects in silvicultural activities carried out by individuals, households, groups, teams, and community organizations, the investor (or Management Board) shall prepare a detailed settlement report (settlement volume) of the implementation results of the project or project components according to Form No. 07/BQTCT issued together with this Circular. For projects with multiple silvicultural activities or silvicultural works, depending on the scale, nature, and duration of the activity, the investor can settle, inspect and approve the settlement of investment capital for each activity, each independent project component completed and put into use according to the requirements of the investment decision-maker. The proposed value for settlement of silvicultural activities or works is the volume performed according to the estimate and accepted (including state budget support and investment from organizations carrying out silvicultural activities);

- For integrated forest protection and development investment projects (referred to as forest investment projects) as a type of project with multiple component projects or independent sub-projects (having separate project approval decisions or separate economic-technical construction reports), each component project or independent sub-project shall be settled, inspected and approved separately according to the regulations in this Circular. Once the entire project is completed, the investor (or chief investor in cases with multiple component project investors) compiles the overall project settlement results and reports to the competent authority for approval; re-inspection and re-approval of component projects or sub-projects that have been inspected and approved per regulations is not required;

- For silvicultural activities at risk due to force majeure events, comply with the provisions of Decision 73/2010/QD-TTg.

Regarding inspections:

- Ministries, provincial (municipal) People's Committees under the central government, financial agencies, and the State Treasury periodically or unexpectedly inspect investors and contractors participating in projects regarding the use of advance capital, payment of completed volumes, settlement, and compliance with state investment development financial policies;

- Financial agencies at all levels periodically or unexpectedly inspect the State Treasury regarding the implementation of investment capital payment policies.

Details are available in Circular 85/2014/TT-BTC, which comes into effect in Vietnam from  August 15, 2014.

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