Regulations on environmental protection deposits for waste burial in Vietnam

Regulations on environmental protection deposits for waste burial in Vietnam (Internet image)

1. What is payment of deposits on environmental protection for waste burial?

According to Clause 1, Article 76 of Decree 08/2022/ND-CP, payment of deposits on environmental protection for waste burial means that an organization or individual constructing a new landfill deposits a sum of money to fulfill the obligation to eliminate pollution and improve the environment after the landfill closure according to the environment improvement plan in the EIAR of which the result of appraisal has been approved by a competent authority.

2. Regulations on environmental protection deposits for waste burial in Vietnam

According to Clause 2, Article 76 of Decree 08/2022/ND-CP stipulates the rnvironmental protection deposits for waste burial  as follows:

- The deposits shall be calculated in such a way that provides adequate funding for environment improvement at the landfill and according to the environment improvement contents approved by the competent authority;

- Local norms and unit prices available at the time of formulating the environment improvement plan shall apply to calculation of deposits. If a local government does not set any norm or unit price, norm or unit price set by the equivalent ministry or branch shall apply. If the ministry or branch does not set any unit price, the market price shall apply;

- The total deposit (exclusive of the inflation factor) equals the total funding for work items for renovation and closure of a landfill, costs of pollution elimination, environmental monitoring and operation of a waste treatment work.

The methods for calculating and estimating the costs of pollution elimination and environment improvement shall comply with MONRE’s guidance;

- The annual deposit (exclusive of the inflation factor) equals the total deposit divided equally for the years in which the investment project is executed;

- The inflation factor must be taken into account when paying annual deposit, which equals the annual deposit multiplied by annual consumer price index in the previous years beginning from the date on which the plan is approved.

The annual consumer price index applied is the one applied in the area where the project is executed as announced by the General Statistics Office or the one announced by a competent authority;

- The environmental protection deposits shall be paid and refunded in Vietnamese dong from the VEPF or provincial environment protection fund and entitled to the interest as prescribed by law from the date of deposit payment.

3. Time of deposit payment and confirmation of deposit payment in Vietnam

Clause 3, Article 76 of Decree 08/2022/ND-CP stipulates the time of deposit payment and confirmation of deposit payment as follows:

- The time of deposit payment begins from the date on which the waste treatment project involving the waste burial issued with an environmental license to the date on which the burial is terminated;

- After receiving the deposits, the VEPF or provincial environment protection fund shall confirm the deposit payment by the organization or individual constructing the landfill in their written request for deposit payment.

The confirmation of deposit payment must fully specify the following information:

+ The total deposit calculated;

+ Time limit for refunding deposit after transferring renovated environmental protection works;

+ Time limit for account freezing (if any).

4.  Management and use of deposits in Vietnam

The management and use of deposits: is specified in Clause 4, Article 76 of Decree 08/2022/ND-CP as follows:

- The VEPF or provincial environment protection fund which received the deposits shall refund the deposits and deposit interest to organizations and individuals constructing landfills after receiving the investment project owner’s written request enclosed with documents about completion of pollution elimination and environment improvement at the landfill;

- The VEPF or provincial environment protection fund shall manage and use deposits as prescribed by law. Submit to the provincial People’s Committee, MONRE and Ministry of Finance an annual report on management and use of deposits;

- The VEPF or provincial environment protection fund shall urge organizations and individuals operating and managing landfills to pay deposits on environment improvement on schedule; request a competent authority to impose penalties on any organization or individual that delays deposit payment as prescribed;

- If the owner of the landfill construction project goes bankrupt or closes the landfill, the deposits shall be used to pay the costs of eliminating pollution and improving environment at the landfill.

5. Refund of payment of deposits on environmental protection for waste burial in Vietnam

Pursuant to Clause 5, Article 76 of Decree 08/2022/ND-CP, the deposit refund shall be made depending on the completion of environment improvement by an organization or individual. To be specific:

- The landfill owner shall, after partially or totally improve the environment at the landfill, prepare an application for inspection of environment improvement and confirmation of the completion of environment improvement plan;

- An application for inspection of environment improvement and confirmation of the completion of the environment improvement plan is composed of an application for commissioning and 01 report on (partial or total) implementation of the environment improvement plan.

- The time limit for inspection and confirmation is 30 days from the date on which a valid application is received;

- Inspection and confirmation procedures are as follows:

The inspecting and confirming authority shall establish an inspection and confirmation delegation including at least 07 members; send the decision on council establishment enclosed with documents to each member of the delegation;

The inspection and confirmation delegation shall carry out a site inspection at the landfill.

After the inspection, if the environment improvement satisfies the prescribed requirements, the inspecting and confirming authority shall provide a confirmation of completion of environment improvement (hereinafter referred to as “the confirmation”) according to the form promulgated by MONRE.

In case of ineligibility to receive confirmation, the inspecting and confirming authority shall send a notification specifying reasons therefor to the landfill owner;

- Within 90 days from the date of receiving the confirmation, the deposit receiving authority shall refund the deposit to the organization or individual;

- The organization or individual is only entitled to withdraw their interest at one time after receiving the confirmation;

- Deposits shall be refunded only after the confirmation is obtained.

If the organization or individual which is permitted to invest in, construct and operate a landfill enters into an enterprise franchise, sale, renaming, consolidation or merger contract, the transferee or organization or individual that is the new owner of the enterprise shall continue to fulfill the environment improvement obligations and pay environment improvement deposits.

Van Trong

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE