Decision 451/QD-BXD in 2015 on announcement of construction investment capital and daily-life wastewater treatment costs issued by the Ministry of Construction

DECISION

ON ANNOUNCEMENT ABOUT INVESTMENT IN CONSTRUCTION AND COSTS OF TREATMENT OF DOMESTIC WASTEWATER

THE MINISTER OF CONSTRUCTION

Pursuant to Decree No. 62/2013/ND-CP dated June 25, 2013 by the Government defining the functions, tasks, entitlements and organizational structure of the Ministry of Construction;

Pursuant to Decree No. 80/2014/ND-CP dated 06/8/2014 by the Government on drainage and treatment of wastewater;

At the request of Director of Department of Technical infrastructure, Director of Department of Construction Economics and Director of Institute of Construction Economics,

DECIDES:

Article 1. To announce the investment in the construction and costs of treatment of domestic wastewater in the Annex enclosed with this Decision so that relevant organizations and individuals refer to for the establishment and management of investment in the construction, management and operation of domestic wastewater facilities.

Article 2. This Decision comes into effect from the day it is signed./.

INVESTMENT RATES AND COSTS OF TREATMENT OF 1M3 OF DOMESTIC WASTEWATER

(The Annex enclosed with Decision No. 451/QD-BXD dated April 21st, 2015 by the Minister of Construction)

I. INVESTMENT RATES IN TREATMENT OF DOMESTIC WASTEWATER

1. Description and guidelines

1.1. Investment rates in the construction of domestic wastewater treatment works (hereinafter referred to as investment rates) and necessary costs of investment in new construction of domestic wastewater treatment works conformable to constructional standards/regulations and standards for post-treatment wastewater according to current regulations.

1.2. Investment rates are determined for a wastewater treatment capacity unit by m3 per 24 hours and conformable to domestic wastewater treatment technology using activated sludge technology and stabilization pond technology according to the general treatment procedures in the following diagram:

1.3. Investment rates are determined according to the price floor in Quarter III, 2014. With respect to works using USD, such amount shall be converted into VND (1 USD = 21,110 VND).

1.4. The investment rates shall include necessary costs of construction, equipment purchase and installment, project management, investment and construction consultant , other expenses and VAT on such activities; where:

- Costs of construction include spending on works like booster pump stations in the treatment plant, physical treatment works, biological treatment works, sludge pasteurizing, deodorizing, collecting and drying works, auxiliary works like power stations (if any), grounds, security cabins, director house and laboratories, garages, warehouses.

- Costs of equipment include all of spending on purchase and installment of equipment of technology line. Costs of major technological equipment are determined on the basis of price of advance equipment and technology that are imported from developed countries.

1.5. Investment rates in construction of a wastewater treatment plant exclude costs of construction of other works directly serving the activities of waste water treatment plant that occur outside the plant like wastewater collection works, wastewater pumping stations, wastewater pipelines and auxiliary works serving the construction of the plant like service roads and special architectural works to protect landscape or environment that must be underground or covered tightly, etc.

1.6. The investment rates does not include the amount for carrying out activities according to particular requirements of domestic wastewater treatment works like: compensation and support for resettlement; spending on treatment of foundation with special technical requirements (if any); spending on hiring foreign consultant; loan interest during the project; initial working capital; provisional expenses and relevant expenses.

1.7. When using the investment rate to determine the total investment in a domestic wastewater treatment construction project, the management body, the investor and the consultancy unit shall pursuant to the characteristics and requirement of the project (the premise, capital, progress, capacity, investment and construction cost floors and characteristics of the treatment technology, etc.) to insert, modify and convert the investment rates.

2. Investment rates:

Table 2 – Domestic wastewater treatment technology using stabilization pond technology

II. DOMESTIC WASTEWATER TREATMENT COSTS

1. Description and guidelines

1.1. Domestic wastewater treatment costs (hereinafter referred to as treatment costs) are expected spending on treatment of 01 m3 of domestic wastewater to make up for costs related to the operation of domestic wastewater treatment facilities with reasonable interest rates.

1.2. Treatment costs are determined in a circumstance that the domestic treatment work is operated normally, quality of water after the treatment satisfies the chosen technological requirements and reach type B standard in QCVN 14:2008/BTNMT - National technical regulation on domestic wastewater. If the quality of wastewater after treatment must reach type B standard in QCVN 14:2008/BTNMT - National technical regulation on domestic wastewater and grade 2 level of domestic wastewater in TCVN 7222 – 2002, then the costs in table 3 in proportion to the treatment capacity levels shall me added 10%.

1.3. Treatment costs are determined on the basis of the costs related to the operation of domestic wastewater treatment works. Treatment costs for 1 m3 of wastewater include the direct costs, general costs, standard interests and VAT but exclude the fixed asset depreciation costs.

1.4. Treatment costs are determined according to the price floor in Quarter III, 2014.

1.5. Application of the treatment costs announced in this Decision shall be based on the type of treatment technology, treatment capacity and price floor to adjust the cost rate.

1.6. The determination of unit price of detailed treatment costs for 01 m3 of domestic wastewater must be based on the economic and technical standards that are approved by People’s Committees of all levels and relevant policies but not exceeding the cost rates announced in this Decision.

1.7. Treatment costs announced in this Decision are not used for determining order values, concluding contracts and paying domestic wastewater treatment costs.

2. Treatment costs

Table 3. Regarding activated sludge technology

Table 4. Regarding stabilization pond technology

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