CIRCULAR

BUDGET FOR SUPERVISION AND EVALUATION OF INVESTMENT

Pursuant to the Government's Decree No. 113/2009/ND-CP dated December 15, 2009 on supervision and evaluation of investment;

The Government's Decree No. 116/2008/ND-CP dated November 14, 2008 defining functions, tasks, entitlements and organizational structure of the Ministry of Planning and Investment;

The Ministry of Planning and Investment provides for budget for supervision and evaluation of investment as follows:

Chapter 1.

GENERAL PROVISIONS

Article 1. Scope

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Article 2. Regulated entities

This Circular applies to agencies, organizations, and individuals involved in direct investments and supervision and evaluation of investment.

Article 3. Budget for supervision and evaluation of investment, and capital sources

1. Budget for supervision and evaluation of investment are the budget for agencies, organizations, and individuals involved in direct investment and supervision and evaluation of investment  to carry out supervision and evaluation of investment.

2. Capital sources for supervision and evaluation of investment include:

a) Budget for regular expenses used for investment supervision and evaluation of organizations assigned to carry out investment supervision and evaluation.

b) Budget for investment (included in the total investment of the project) for supervision and evaluation of investment by the investor.

Agencies, organizations, and individuals assigned to carry out supervision and evaluation of investment specified in Decree No. 113/2009/ND-CP (hereinafter referred to as supervisory body) shall use state budget or other sources of capital to carry out supervision and evaluation of investment properly, frugally, and efficiently according to applicable regulations on financial management of the State and provisions of this Circular.

Article 4. Inspection of the management and use of the budget for supervision and evaluation of investment

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With regard to projects under the management of commune governments, the organization responsible for financial management of each commune is also responsible for management of the budget for supervision and evaluation of investment under its management in accordance with this Circular.

Every year through periodic inspections and irregular inspections at the request of competent authorities, the aforementioned finance authorities shall inspect the management and use of budgets for supervision and evaluation of investment by agencies and organizations in charge of supervision and evaluation of investment under their management in order to promptly take actions against violations committed during the course of supervision and evaluation of investment.

Chapter 2.

SPECIFIC REGULATIONS ON BUDGETS FOR INVESTMENT SUPERVISION AND EVALUATION

Section 1. BUDGET FOR SUPERVISION AND EVALUATION OF INVESTMENT PROJECTS IN WHICH STATE CAPITAL INVESTMENT IS 30% OR OVER

Article 5. Budget for supervision and evaluation by investors  of investment projects in which state capital investment makes up 30% or over

1. Scope:

The investor shall perform the following supervision and evaluation tasks:

a) Project monitoring as specified in Clause 1 Article 3 of Decree No. 113/2009/ND-CP.

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c) Evaluation of the investment project as specified in Clause 1, Clause 2, and Clause 3 Article 6 of Decree No. 113/2009/ND-CP, including:

- Initial evaluation (Clause 1 Article 6 of Decree No. 113/2009/ND-CP);

- Midterm evaluation (Clause 2 Article 6 of Decree No. 113/2009/ND-CP);

- Final evaluation (Clause 3 Article 6 of Decree No. 113/2009/ND-CP);

2. Products of supervision and evaluation by the investor:

The products of the aforementioned tasks shall be specified in the reports set out in Point c Clause 1 Article 17 of Decree No. 113/2009/ND-CP.

3. The budget for supervision and evaluation by the investor is 20% of the project management budget according to applicable regulations.

4. Funding source: included in total investment of the project.

5. Management and use of budgets for supervision and evaluation of investment:

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b) If the investor hires consultants to evaluate the project, such budget shall be managed similarly to the budget for consulting services and must not exceed 10% of the project management budget according to applicable regulations. Payments for consultancy on project evaluation shall be advanced and paid in accordance with applicable regulations on management and disbursement of capital applied to investment and construction consultancy organizations.

c) If the investor evaluates the project themselves, the revenue and expenditure estimate of the project management budget shall include the revenue from the budget for supervision and evaluation of investment and regular expenses of the investor, which includes supervision and evaluation of investment.

Article 6. Budget for monitoring by the investment decider of projects in which state capital investment makes up 30% or over

1. Project monitoring content:

The investment decider shall assign his/her employees to monitor each project in details in accordance with Clause 2 Article 3 of Decree No. 113/2009/ND-CP.

2. The budget for project monitoring is 2% of the project management budget according to applicable regulations of the monitored project.

3. Funding source: budget for regular expenses of a competent authority.

4. Management and use of budget:

Every year, the investment decider shall, within the aforementioned budget for project monitoring, formulate a project monitoring plan, estimate the budget for monitoring investment projects, and include such estimate in the regular expense estimate.

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The organizations and individuals in charge of monitoring projects of the investment decider shall manage and use the budget for project monitoring in accordance with regulations on management and use of budget for regular expenses of the competent authorities.

Article 7. Budget for monitoring by investment authorities of projects in which state capital investment makes up 30% or over

1. Project monitoring content:

The investment authority shall assign its employees to monitor each project in details in accordance with Clause 3 Article 3 of Decree No. 113/2009/ND-CP.

2. The budget for project monitoring is 2% of the project management budget according to applicable regulations of the monitored project.

3. Funding source: budget for regular expenses provided from state budget.

4. Management and use of budget:

Every year, the investment authority shall, within the aforementioned budget for project monitoring, formulate a project monitoring plan, estimate the budget for monitoring investment projects, and include such estimate in the regular expense estimate.

The budget for project monitoring shall be used to pay the project-monitoring units.

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Article 8. Budget for inspection by the investment decider of projects in which state capital investment makes up 30% or over

1. The content of project inspection by the investment decider is specified in Clause 3 Article 4 of Decree No. 113/2009/ND-CP.

2. Products of project inspection by the investment decider:

Inspection reports according to applicable regulations. Depending on the nature and time of the project, the investment decider may hold one or more inspections of the project.

3. The budget for inspection is 6% of the project management budget according to applicable regulations of the inspected project.

4. Funding source: budget for regular expenses of a competent authority.

5. Management and use of budget:

Every year, the investment decider shall, within the aforementioned budget, formulate an inspection plan, estimate the budget for inspection, include it in the estimate of regular expenses, and establish inspectorates.

Inspectorates have the responsibility to manage and use the budget for inspection in accordance with regulations on management and use of the budget for regular expenses of competent authorities.

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1. The content of project inspection by investment authorities is specified in Clause 4 Article 4 of Decree No. 113/2009/ND-CP.

2. Products of project inspection by investment authorities:

Inspection reports according to applicable regulations. Depending on the nature and time of the project, the head of each investment authority shall hold one or more inspections of the project.

3. The budget for inspection is 6% of the project management budget according to applicable regulations of the inspected project.

4. Funding source: budget for regular expenses provided from state budget.

5. Management and use of budget:

The investment authority shall, within the aforementioned budget, formulate an inspection plan, estimate the budget for inspection, include it in the estimate of regular expenses, and establish inspectorates.

The budget for project inspection shall be used to cover the cost incurred by each inspectorate.

Inspectorates have the responsibility to manage and use the budget in accordance with the Law on State budget.

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1. Content:

The investment decider or investment authority shall organize the project impact evaluation in accordance with Clause 4 Article 6 of Decree No. 113/2009/ND-CP.

2. Products of impact evaluation: Impact evaluation reports according to applicable regulations.

3. The budget for impact evaluation is 6% of the project management budget according to applicable regulations of the project whose impacts are evaluated.

4. Funding source: budget for regular expenses of competent authority or provided from state budget.

5. Management and use of budget:

Every year, each investment decider or investment authority shall, within the aforementioned budget, formulate an impact evaluation plan, estimate the budget for impact evaluation, include it in the estimate of regular expenses, and establish impact evaluation commissions.

Impact evaluation commissions have the responsibility to manage and use the budget for impact evaluation in accordance with regulations on management and use of the budget for regular expenses of competent authorities or in accordance with the Law on State budget.

Where the investment decider and the investment authority hires an advisory organization or experts to evaluate the project’s impacts, the management of such budget is similar to that of the budget for consulting services, which must not exceed 5% of the project management budget of the project whose impacts are evaluated. Payments for consultancy on project impact evaluation shall be advanced and paid in accordance with applicable regulations on management and disbursement of capital applied to investment and construction consultancy organizations.

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1. Content:

The investment decider or investment authority shall organize irregular project evaluations in accordance with Clause 5 Article 6 of Decree No. 113/2009/ND-CP.

2. Products of irregular evaluations: Irregular evaluation reports according to applicable regulations.

3. The budget for irregular evaluation is 4% of the project management budget according to applicable regulations of the project that undergoes irregular evaluation.

4. Funding source: budget for regular expenses of competent authority or provided from state budget.

5. Management and use of budget:

Every year, the investment decider or investment authority shall, within the aforementioned budget, formulate an irregular evaluation plan, estimate the budget for irregular evaluations, include it in the estimate of regular expenses, and establish commissions in charge of irregular evaluations.

Such commissions have the responsibility to manage and use the budget in accordance with regulations on management and use of the budget for regular expenses of competent authorities or in accordance with the Law on State budget.

Where the investment decider and the investment authority hires an advisory organization or experts to carry out the irregular evaluation, the management of such budget is similar to that of the budget for consulting services, which must not exceed 3% of the project management budget of the project that undergoes irregular evaluation. Payments for consultancy on irregular evaluation of projects shall be advanced and paid in accordance with applicable regulations on management and disbursement of capital applied to investment and construction consultancy organizations.

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Article 12. Budget for supervision and evaluation by investors of projects funded by other sources of capital

1. Supervision and evaluation tasks to be performed by investors:

Investors shall monitor their projects in accordance with Clause 1 Article 8 of Decree No. 113/2009/ND-CP.

Investors are recommended to evaluate their projects in accordance with Article 5 through 7 of Decree No. 113/2009/ND-CP.

2. Products of supervision and evaluation by investors: reports according to applicable regulations.

3. Budgets for supervision and evaluation of investment:

The budget for project monitoring is 5% of the project management budget of a similar project in which state capital investment makes up 30% or over.

The budget for investment evaluation is 10% of the project management budget of a similar project in which state capital investment makes up 30% or over.

4. Funding source: included in total investment of the project.

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Article 13. Budget for monitoring by investment authorities of projects funded by other capital sources

1. Content:

The investment authority shall assign its employees to monitor each project in details in accordance with Clause 2 Article 8 of Decree No. 113/2009/ND-CP.

2. The budget for project monitoring is 1% of the project management budget of a similar project in which state capital investment makes up 30% or over.

3. Funding source: budget for regular expenses provided from state budget.

4. Management and use of budget:

Every year, the investment authority shall, within the aforementioned budget for project monitoring, formulate a project monitoring plan, estimate the budget for monitoring investment projects, and include such estimate in the regular expense estimate.

The budget for project monitoring shall be used to pay the project-monitoring units.

The organizations and individuals in charge of monitoring projects of investment authorities shall manage and use the budget for project monitoring in accordance with the Law on State budget.

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1. Budget for project inspection by the issuer of the Investment Certificate.

a) The inspection content isspecified in Clause 1 Article 9 of Decree No. 113/2009/ND-CP.

b) Products of project inspection:

Inspection reports according to applicable regulations. Depending on the nature and time of the project, the investment decider may hold one or more inspections of the project.

c) The budget for inspection is 3% of the project management budget of a similar project in which state capital investment makes up 30% or over.

d) Funding source: budget for regular expenses provided from state budget.

e) Management and use of budget:

Every year, the issuer of the Investment Certificate shall, within the aforementioned budget, formulate an inspection plan, estimate the budget for inspection, include it in the estimate of regular expenses, and establish inspectorates.

Inspectorates have the responsibility to manage and use the budget for inspection in accordance with regulations on management and use of the budget for regular expenses of the issuer of the Investment Certificate.

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a) The content of project inspection by investment authorities is specified in Clause 2 Article 9 of Decree No. 113/2009/ND-CP.

b) Products of project inspection by investment authorities:

Inspection reports according to applicable regulations. Depending on the nature and time of the project, each investment authority shall hold one or more inspections of the project.

c) The budget for inspection is 3% of the project management budget of a similar project in which state capital investment makes up 30% or over.

d) Funding source: budget for regular expenses provided from state budget.

e) Management and use of budget:

Every year, each investment authority shall, within the aforementioned budget, formulate an inspection plan, estimate the budget for inspection, include it in the estimate of regular expenses, and establish inspectorates.

The budget for project inspection shall be used to cover the costs incurred by inspectorates.

Inspectorates have the responsibility to manage and use the budget in accordance with the Law on State budget.

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Investment authorities shall organize evaluation of projects funded by other sources of capital where necessary and conformable with investment management requirements.

1. Budget for impact evaluation:

a) Content of impact evaluation:

Investment authorities shall organize the project impact evaluation in accordance with Clause 4 Article 6 of Decree No. 113/2009/ND-CP.

b) Products of impact evaluation: Impact evaluation reports according to applicable regulations.

c) The budget for impact evaluation is 3% of the project management budget of a similar project in which state capital investment makes up 30% or over.

d) Funding source: budget for regular expenses provided from state budget.

e) Management and use of budget:

Every year, the investment authority shall, within the aforementioned budget, formulate an impact evaluation plan, estimate the budget for impact evaluation, include it in the estimate of regular expenses, and establish impact evaluation commissions.

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Impact evaluation commissions have the responsibility to manage and use the budget in accordance with the Law on State budget.

Where an investment authority hires an advisory organization or experts to evaluate the project’s impacts, the management of such budget is similar to that of the budget for consulting services, which must not exceed 2.5% of the project management budget of a similar project in which state capital investment makes up 30% or over. Payments for consultancy on project impact evaluation shall be advanced and paid in accordance with applicable regulations on management and disbursement of capital applied to investment and construction consultancy organizations.

2. Budget for irregular evaluation:

a) Content of impact evaluation:

Investment authorities shall organize irregular evaluation of projects in accordance with Clause 5 Article 6 of Decree No. 113/2009/ND-CP.

b) Products of irregular evaluations: Irregular evaluation reports according to applicable regulations.

c) The budget for irregular evaluation is 2% of the project management budget of a similar project in which state capital investment makes up 30% or over.

d) Funding source: budget for regular expenses provided from state budget.

e) Management and use of budget:

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The budget for irregular evaluation shall be used to cover the costs incurred by the commissions in charge of irregular evaluations.

The said commissions have the responsibility to manage and use the budget in accordance with the Law on State budget.

Where an investment authority hires an advisory organization or experts to carry out the irregular evaluation, the management of such budget is similar to that of the budget for consulting services, which must not exceed 1.5% of the project management budget of a similar project in which state capital investment makes up 30% or over. Payments for consultancy on project impact evaluation shall be advanced and paid in accordance with applicable regulations on management and disbursement of capital applied to investment and construction consultancy organizations.

Section 3. BUDGET FOR OVERALL SUPERVISION AND EVALUATION OF INVESTMENT

Article 16. Budgets for supervision and evaluation of investment of Ministries, regulatory bodies, and local governments, state-owned corporations, and Corporation 91  

1. Content:

a) Overall investment monitoring: Article 11 of Decree No. 113/2009/ND-CP.

b) Overall investment inspection: Article 12 of Decree No. 113/2009/ND-CP.

c) Overall investment evaluation of the whole economy: Article 13 of Decree No. 113/2009/ND-CP.

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2. Products of overall supervision and evaluation of investment

Reports on overall investment monitoring, reports on overall investment inspection, reports on overall investment evaluation of the whole economy, reports on overall evaluation of investment management) according to applicable regulations.

3. The budget for overall supervision and evaluation of investment is 2% of the project management budget of projects that have to undergo supervision and evaluation.

4. Funding sources:

Sources of regular expenses provided by state budget according to annual plans of Ministries, regulatory bodies, and local governments, annual sources of regular expenses of state-owned corporations and Company 91.

5. Management and use of budget:

Every year, Ministries, regulatory bodies, and local governments, state-owned corporations, and Company 91 shall, within the budgets for overall supervision and evaluation of investment, formulate plans and estimate budget for overall supervision and evaluation of investment .

The use of budgets for overall investment monitoring shall be used in accordance with the Law on State budget or regulations on management and use of budgets for regular expenses of state-owned corporations and Corporation 91.

Chapter 3.

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Article 17. Transition clauses

Relevant organizations and individuals shall consider approving additional budget for supervision and evaluation of investment in unfinished projects regulated by Decree No. 113/2009/ND-CP.

Article 18. Implementation

This Circular comes into force from January 16, 2011.

Relevant agencies, organizations, and individuals are responsible for the implementation of this Circular.

Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Planning and Investment for consideration.

MINISTER




Vo Hong Phuc

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BUDGETS FOR SUPERVISION AND EVALUATION OF INVESTMENT:

(Promulgated together with Circular No. 22/2010/TT-BKH dated December 02, 2010 of the Ministry of Planning and Investment)

No.

Content

Rate

I

Project management budget according to applicable regulations

A

II

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1

Budget for supervision and evaluation by the investor  

20% A

2

Budget for project monitoring by the investment decider

2% A

3

Budget for project monitoring by an investment authority

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4

Budget for project inspection by the investment decider

6% A

5

Budget for project inspection by an investment authority

6% A

6

Budget for impact evaluation

6% A

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The budget for irregular evaluation

4% A

III

Budget for supervision and evaluation of investment projects funded by other sources of capital

1

Budget for supervision and evaluation by the investor  

1.1

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5% A

1.2

The budget for project evaluation

10% A

2

Budget for project monitoring by an investment authority

1% A

3

The budget for project inspection

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3.1

Budget for project inspection by the issuer of the Investment Certificate.

3% A

3.2

Budget for project inspection by an investment authority

3% A

4

The budget for project evaluation

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Budget for impact evaluation

3% A

4.2

The budget for irregular evaluation

2% A

IV

Budget for overall supervision and evaluation of investment

2% A

Thông tư 22/2010/TT-BKH quy định về định mức chi phí giám sát, đánh giá đầu tư do Bộ Kế hoạch và Đầu tư ban hành