Decision No. 43/2009/QD-TTg dated March 19th, 2009, on introduction of financial assistance policies for technical infrastructures in disavantaged areas

DECISION

ON INTRODUCTION OF FINANCIAL ASSISTANCE POLICIES FOR TECHNICAL INFRASTRUCTURES IN DISAVANTAGED AREAS

THE PRIME MINISTER

Pursuant to the Law on Government organization dated December 25, 2001;

Pursuant to the Law on State budget dated December 16, 2002;

Pursuant to the Government’s Decree No.60/2003/ND-CP detailing and guiding the implementation of the law on the State budget dated June 06, 2003;

Pursuant to the Government’s Decree No.29/2008/ND-CP on industrial zones, export processing zones and economic zones dated March 14, 2008;

At requests in the Statement No. 8352/TTr-BKH dated November 14, 2008 by the Minister of Planning and Investment.

HEREBY DECIDES:

Article 1. Requirements for financial assistance

1. To be allocated funding for construction of technical infrastructures in industrial zones from the central government budget, the area shall satisfy the following requirements:

a) The amount of funding to the local budget from the central government budget shall be greater than 60% of the local budget expenditure; and

b) The industry’s contribution to local GDP shall be at least 10% lower than that of the national GDP.

Such figures shall be determined prior to the annual plan compilation according to the previous year figures.

2. Requirements for financial assistance in construction and operation of technical infrastructures in industrial zones (hereinafter referred to as “infrastructure project”) are as follows:

a) Areas in northern midland and mountainous regions and the central highlands satisfying the requirement in clause 1 of this Article may be granted funding for one infrastructure project.

b) Areas other than those in northern midland and mountainous region and the central highlands satisfying the requirement in clause 1 of this Article may be granted funding for two infrastructure projects.

Article 2. Requirements for infrastructure projects to be granted

To be allocated funding, infrastructure projects satisfying the requirement in clause 1, Article 1 hereof shall also meet the following requirements:

1. The industrial zone must be included in the master plan for nationwide industrial zones approved or allowed to be added to the planning by specific period by the prime Minister and constructed under the Government’s regulations of laws.

2. The infrastructure project plays an important role in economic structural change, local economic growth, local comparative advantage development, job creation, locals’ living standard improvement and environmental protection.

3. The infrastructures are wholly funded by Vietnamese investors.

Article 3. Amount of funding and management of funding allocation

1. The amount of funding:

a) The amount of funding for an industrial zone infrastructure project in areas funded from the central government budget specified in point a, clause 2; Article 1 hereof shall not exceed 100 billion dong.

b) The amount of funding for an industrial zone infrastructure project in areas funded from the central government budget specified in point b, clause 2; Article 1 hereof   shall not exceed 70 billion dong.

2. Management of funding allocation:

a) The use of funding from the central government budget shall be focused on:

- Site clearance and compensation, and relocation;

- Industrial wastewater and waste treatment systems (such as wastewater drainage systems, centralized wastewater treatment plants and waste treatment systems).

b) In case the funding from the central Government budget has been spent on completion of work stipulated in point a, clause 2 of this Article or such work has been funded by another sources of finance, the remainder shall be used for other work items or technical infrastructures in such industrial zone ( including collector road, roads, bridges to the industrial zone); or for work items or infrastructure projects of the second industrial zone if the area satisfies requirements prescribed in point b, clause, Article 1 hereof. The remainder of funding shall be prioritized to be funded for:

- Technical infrastructures within the industrial zone;

- Collector roads, roads, bridges to the industrial zone.

- Technical infrastructures within the second industrial zone, for those specified in point b, clause 1, Article 1 hereof.

c) The second industrial zone of the area in point b, Article 1 hereof will be funded with the central government budget only if it satisfies the following requirements:

- All work items of the first industrial zone specified in point a, clause 2 of this Article has been completed or the first industrial zone has been funded with the central government budget;

- The industrial land of the first industrial zone leased or subleased by owners of projects being registered for investment or granted the Investment Certificate shall be at least 60% of the total industrial land

d) The funding from the central government budget not properly spent shall be withdrawn.

dd) The remainder after the completion of work items specified in point a and b, clause 2 of this Article shall be returned to the central government budget.

3. The funding for infrastructure projects in industrial zones from central government budget shall be managed in accordance with the Law on Investment and Law on State budget.

Article 4. Rights and obligations of the Ministry of Planning and Investment

The Ministry of Planning and Investment shall:

1. Take charge of and cooperate with the Ministry of Finance and relevant agencies to annually submit the plans for budget allocation for infrastructure projects in industrial zones and the aggregate state budget estimate to the Government, according to the central government budget and project demand and execution.

2. Take charge of and cooperate with relevant agencies to submit the annual report on the progress and effectiveness of infrastructure projects in industrial zones funded with the central government budget to the Prime Minister.

Article 5. Rights and responsibilities of People’s Committees of provinces and centrally-affiliated cities (hereinafter referred to as “province”)

Every People’s Committee of provinces shall:

1. Consider granting funding for infrastructure projects in industrial zones within their province.

2. Decide the allocation of remainder for work items in the industrial zones according to the order of priority specified in point, clause 2 Article hereof.

3. Direct, expedite and inspect the allocation of funding from the central government budget under provisions hereof and current regulations of laws.

4. Submit annual reports on the management and use of funding for the infrastructure projects in local industrial zones which specify the management, allocation, effectiveness and expected demand of funding to the Ministry of Planning and Investment by June 31 of every year.

Article 6. Entry into force

1. This Decision enters into force from May 18, 2009.

2. This Decision replaces assistance policies for industrial zones stipulated in:

Point c, clause 2, Article 2 of the Prime Minister’s Decision No.24/2008/QD-TTg on introduction of a socio-economic development policies and mechanisms for the North Central Coast and Central Coast of Vietnam to the year 2010 dated February 05, 2008.

b) Clause 3, Article 2 of the Prime Minister’s Decision No.25/2008/QD-TTg on introduction of a socio-economic development policies and mechanisms for the central highland of Vietnam to the year 2010 dated February 05, 2008.

b) Clause 5, Article 2 of the Prime Minister’s Decision No.26/2008/QD-TTg on introduction of a socio-economic development policies and mechanisms for the highlands of Vietnam to the year 2010 dated February 05, 2008.

d) Point a, clause 1, Article 2 of the Prime Minister’s Decision No.27/2008/QD-TTg on introduction of a socio-economic development policies and mechanisms for the midlands and mountainous regions of Northern Vietnam to the year 2020 dated February 05, 2008.

3. This Decision replaces the Decision No. 183/2004/QD-TTg on introduction of incentive policies for investment in technical infrastructures in industrial zones in disvantaged areas dated October 19, 2004 by the Prime Minister.

Article 7. Implementation

Ministers, Heads of Ministerial-level agencies, Government agencies and Presidents of People’s Committees of provinces shall be responsible for the implementation of this Decision.