THE MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No: 33/2007/TT-BTC
Hanoi , April 09, 2007
 CIRCULAR
GUIDING THE SETTLEMENT OF COMPLETED PROJECTS FUNDED WITH STATE CAPITAL
Pursuant to the Governments Decree No. 16/2005/ND-CP of February 7, 2005, on management of investment projects on construction of works; Decree No. 112/2006/ND-CP of September 29, 2006, amending and supplementing a number of articles of the Governments Decree No. 16/2005/ND-CP, on management of investment projects on construction of works;
Pursuant to the Governments Decree No. 126/2004/ND-CP of May 26, 2004, on sanctioning of administrative violations in urban infrastructure construction and management and house use management;
Pursuant to the Governments Decree No. 77/2003/ND-CP of July 1, 2003, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
The Ministry of Finance guides the settlement of completed projects funded with state capital as follows:
Part I
GENERAL PROVISIONS
1. Subjects and scope of regulation: All investment projects that are funded with state capital, including state budget capital, the States development investment credit capital, capital from bonds (government and local administration bonds), state-guaranteed credit capital, development investment capital of state corporations and one-member limited liability companies, after completion, are subject to settlement under this Circular.
Projects in which investment is decided by presidents of Peoples Committees of communes or townships and projects of which Peoples Committees of communes or townships are investors as authorized by competent authorities, are governed by the Circular guiding the management of capital construction investment capital of communes and townships but not by this Circular.
2. Investment capital to be settled means the whole lawful expenditure effected in the investment process in order to put a project into operation. Lawful expenditure means expenses made within the scope of the approved design and cost estimates, including adjustments and supplements thereto, and in strict compliance with the signed contract and the provisions of law. For projects funded with state capital, investment capital to be settled must be within the total investment amount approved by a competent authority.
3. A settlement report of a completed project must fully and accurately determine the total effected investment expenditure; clearly state investment capital sources; investment expenses allowed not to be included in the value of assets formed through project investment; the value of assets formed through investment: fixed assets and liquid assets; and at the same time must ensure that it has all the prescribed contents, is made on time, and is verified and approved according to regulations.
4. For national important projects and Group-A projects consisting of many component projects or mini projects which independently operate or are implemented according to investment phases stated in written approvals of pre-feasibility study reports or investment reports, each of those component projects or mini projects may have its investment capital settled as an independent investment project.
5. For a project consisting of many construction items, each of which or groups of which, once completed, can be independently operated, its investor shall make a report on settlement of investment capital for each construction item and submit it to a competent person for approval. The value of a construction item proposed for settlement includes: construction expenses, expenses for procurement and installation of equipment and other expenses directly related to that item. After the completion of the whole project, the investor shall make a general settlement of the whole project and determine the level of allocation of its general expenses to each of its construction items and submit it to a competent person for approval.
6. For investment projects funded with foreign capital (state-guaranteed capital, loan capital, aid capital from foreign governments, organizations and individuals), after completion, their investment capital shall be settled according to this Circular and relevant treaties (if any).
7. Projects funded with official development assistance (ODA) and consisting of many components, including component of capital construction investment expenses and component of administrative and non-business expenses, shall be settled as follows:
7.1. The component of capital construction investment expenses shall be settled according to the specific provisions of this Circular;
7.2. The component of administrative and non-business expenses shall be settled according to specific administrative and non-business accounting regulations.
8. For projects of overseas Vietnamese representative missions, projects with security and defense confidentiality requirements and projects on purchase of copyright, the settlement of completed projects shall comply with the Prime Ministers separate decisions on the basis of proposals and recommendations of the project owners.
9. Settlement of a completed project aims to evaluate the results of the investment process, determine the production capacity and the value of assets newly created through investment; to clearly define the responsibility of the investor, contractors, capital-allocating, capital-lending and payment-controlling agencies and concerned state management agencies; and at the same time to draw experience so as to constantly improve state mechanisms and policies, raise the effectiveness of the management of investment capital nationwide.
Part II
SPECIFIC PROVISIONS
I. CONTENTS OF SETTLEMENT REPORTS
1. Investment capital source(s) for project implementation, by the date of book closure for making the settlement report (detailed by each investment capital source).
2. Investment expenses proposed for settlement and detailed by structure: construction, equipment procurement and installation, and other expenses; or detailed by investment expense items.
3. Lost investment expenses not included in the value of assets formed through investment.
 4. The quantity and value of assets formed through project investment, works or work items; detailed by group and type of fixed assets and liquid assets according to actual expenses. For a project with an investment duration of more than 36 months counting from the date of construction commencement to the date of takeover test for operation, its investment capital must be converted to the price level at the time of takeover for operation.
- The allocation of other expenses to each fixed asset complies with the following principle: Expenses directly related to any fixed asset shall be allocated to that fixed asset; common expenses related to many fixed assets shall be allocated according to the proportion of direct expenses of each fixed asset to the total direct expenses of all fixed assets.
- If assets are delivered to many units for use, the list of assets and their values delivered to each unit is required.
II. FORMS OF SETTLEMENT REPORTS
1. For completed projects: Forms No. 01, 02, 03, 04, 05, 06, 07 and 08/QTDA provided for in Appendix 2 to this Circular (not printed herein).
2. For completed construction items:
Forms No. 01, 02, 03, 04, 05 and 06/QTDA provided for in Appendix 2 to this Circular (not printed herein).
3. For completed planning projects; settlement of expenses for investment preparation of projects cancelled under decisions of competent authorities:
Forms No. 07, 08 and 09/QTDA provided for in Appendix 2 to this Circular (not printed herein).
4. Settlement reports shall be addressed to:
- Settlement-verifying and -approving agencies;
- Immediate superiors of investors (if any);
- Capital-allocating, -lending, and -paying agencies.
III. DOSSIERS SUBMITTED FOR SETTLEMENT APPROVAL (INCLUDING ONE SET ADDRESSED TO THE SETTLEMENT-VERIFYING AND -APPROVING AGENCY)
1. For a completed project, work or construction item:
1.1. The investors written request for approval of the settlement (the original).
1.2. The completed project settlement report defined in Section II, Part II of this Circular (the original).
1.3. Relevant legal documents, according to Form No. 02/QTDA (originals or copies).
1.4. Economic contracts, written records of contract liquidation (if any) between the investor and the contractors implementing the project (originals or copies).
1.5. Written record of takeover test of the completed work section, work construction stage or equipment acceptance and installation stage; written record of takeover test of the completed project, work or work item before use (original or copy).
1.6. All written settlements of A-B volumes (originals).
1.7. Report on results of audit of the settlement of the completed project (if any, the original), enclosed with the investors document on audit results: agreed contents, disagreed contents, and recommendations.
1.8. Inspection conclusions, examination written record and audit report of the inspection, examination and state audit agencies (if any), enclosed with a report on the investors compliance with those reports.
In the course of verification of the settlement, the investor shall produce to the verifying agency documents in service of the verification: The construction completion dossier, construction logbook, bidding dossier, designing cost estimates, additional cost estimates and relevant payment dossiers and vouchers.
2. For a planning project; expenses for investment preparation of a project cancelled under decisions of competent authorities:
2.1. The investors written request for approval of the settlement (the original).
2.2. The settlement report defined in Section II, Part II of this Circular (the original).
2.3. Relevant legal documents (originals or copies).
2.4. Economic contracts between the investor and contractors; written record of takeover test and contract liquidation (the original or copy).
In the course of verification, the investor shall produce other documents related to the settlement of the investment capital of the project when so requested by the settlement-verifying agency.
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