Prices of Hydraulic Public Utility Products and Services

Unit of Measurement:

According to Decree 96, the price of public utility irrigation products and services is calculated in Vietnamese Dong (VND) for each unit of public utility irrigation products and services based on each water irrigation measure, drainage measure, and type of product and service.

The unit price for each specific case is as follows:

- Irrigation for crops: VND/ha/season or VND/m^3^.- Water supply for aquaculture: VND/ha/year or VND/ha/season or VND/m^3^ or VND/m^2^ water surface area/year;- Water supply for salt production: VND/ha/year or VND/ha/season or VND/m^3^ or equal to 2% of the value of finished salt products.- Water supply for livestock: VND/m^3^.- Drainage serving agricultural production, rural and urban areas excluding urban inner areas: VND/work content/year. In case the work content cannot be specifically determined, it is calculated per hectare of drainage basin, but the maximum price level does not exceed 5% of the irrigation product and service price for rice cultivation land per season.- Flood drainage, flood control, tide control, salinity intrusion prevention, salinity flushing, acidity flushing, and sweet water preservation: VND/work content.

Method of Pricing Public Utility Irrigation Products and Services

Based on the market at the time of pricing in normal weather conditions (no natural disasters, fires, or other unusual conditions), the irrigation project management entities or organizations, individuals exploiting irrigation projects shall establish the price levels of public utility irrigation products and services according to the general pricing method for goods and services of the Ministry of Finance and the following formula for competent State agencies to appraise the pricing plan and specify the maximum price and specific price of public utility irrigation products and services:

In which:

- The total cost of public utility irrigation products and services includes all operational costs, maintenance costs, fixed asset depreciation costs, management costs, and other reasonable actual costs of the entire organization exploiting irrigation projects according to each irrigation measure or type of product, service, or work content.- The cost items within the total cost of public utility irrigation products and services include cost items determined in Article 7 of Decree 96/2018/ND-CP excluding contingency costs, costs of collecting fees for using irrigation products, and services.

The determination of costs for salaries, wages, between-shift meals, obligatory contributions based on salaries, fixed asset depreciation costs, and projected profits in the price of public utility irrigation products and services is specified as follows:

- Costs for salaries, wages, between-shift meals, obligatory contributions based on salaries: Organizations and individuals exploiting irrigation projects involved in providing public utility irrigation products and services determine costs for salaries, wages, between-shift meals, and obligatory contributions based on salaries in the price of public utility irrigation products and services following the same cost calculation method for salaries in public utility products and services funded by the State budget as prescribed by the Ministry of Labor, War Invalids and Social Affairs and other related legal documents.- Fixed asset depreciation costs: For irrigation projects invested with State funds or under the public-private partnership model: fixed asset depreciation costs included in the price of public utility irrigation products and services include: transportation means, transmission equipment, equipment, operation management information system, and office management machinery.- Projected profits: The maximum projected profit level for public utility irrigation products and services is determined as the projected profit after corporate income tax (if any), ensuring the establishment of two welfare and reward funds according to current legal regulations.

The pricing plan and price adjustment of public utility irrigation products and services are implemented according to the provisions of Article 9 and Article 10 of Decree 96/2018/ND-CP.

Decree 96/2018/ND-CP takes effect from July 1, 2018

- Thao Uyen -

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