Independence - Freedom – Happiness
No. 131/2009/QD-TTg
Hanoi, November 02, 2009
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the Government's Decree No. 117/2007/ND-CPofJuly 11, 2007, on clean water production, supply and consumption;
Pursuant to the Government's Decree No. 69/2008/ND-CP of May 30, 2008, on incentive policies for socialization of activities in the fields of education, health care, vocational training, culture, sports and environment;
At the proposal of the Minister of Agriculture and Rural Development,
Article 1. Governing scope
1. This Decision prescribes the preferential, support and incentive policies applicable to investment projects on construction of clean water supply facilities (including projects on new construction, renovation and upgrading) and the management and exploitation of clean water supply works in concentrated systems in service of daily-life activities and other purposes of rural population communities.
2. Small and single water supply facilities are not governed by this Decision.

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Article 2. Subjects of application
This Decision; applies to enterprises operating under the Enterprise Law, public non-business units, cooperatives, cooperative groups and individuals (below collectively referred to as organizations and individuals) that conduct activities of investment, technology transfer, exploitation management, production and trading in. the provision of services on. rural clean water.
Article 3. Conditions and implementation principles
1. Conditions:
Organization and individuals must have schemes on production and business, service provision and/or technology transfer; have the capability to manage the exploitation and commit to provide clean water-related services for rural population communities under projects approved by competent authorities.
2. Implementation principles:
a/ Rural clean water supply projects and works must comply with planning and satisfy criteria on the prescribed scales and standards in order to raise the living standards of population communities.
b/ Assets created from state budget sources, ODA, contributed capital of communities, donations, for construction of rural clean water supply works will be used only for the purpose of serving the interests of communities and not be distributed or used for other purposes.
Article 4. Incentive and support policies in rural clean water supply activities
1. Land incentives:
a/ Rural clean water supply projects and works in service of communities will be allocated land by the State with land use levy payment and exempt from land use levies or leased land by the State and exempt from land use levies.
b/ For land allocated or leased by the State, its use rights must not be included in the asset value of investment projects and must not be exchanged, transferred, donated, presented or leased; must not be mortgaged or guaranteed for borrowing loans; and must not be contributed as capital for production and business cooperation.
c/ The allocated or leased land must be used for proper purposes and in accordance with the land law; if such land is used for improper purposes or ineffectively, it will be recovered by the State.
2. Tax incentives:
a/ Organizations and individuals earning incomes from the management and exploitation of rural clean water supply projects or works will enjoy business income tax preferences as provided for in Article 8 of the Government's Decree No. 69/2008/ND-CP of May 30, 2008, on incentive policies for socialization of activities in the fields of education, vocational training, healthcare, culture, sports and environment.
b/ Establishments conducting business in various forms, excluding the activities prescribed at Point a, Clause 2 of this Article shall fulfill tax obligations according to law.
3. State budget supports and capital rinsing:
Organizations and individuals investing in rural water supply projects or works are entitled to:
a/ Enjoy state budget capital supports at levels calculated according to the total estimates of projects approved by competent authorities:
+ Not exceeding 45%. for district townships;
+ Not exceeding 60%, for delta and coastal areas;
+ Not exceeding 75%, for other rural areas;
+ Not exceeding 90%, for communes meeting with exceptional difficulties, ethnic minority, mountainous, transversal coastal and island areas, border communes.
The state budget support funds for the construction of rural clean water supply works in localities outside the areas hit by socio­economic difficulties, which can be fully recovered with expenses correctly and fully calculated according to regulations, shall be returned to the state budget through basic amortization of fixed assets. Provincial-level People's Committees shall decide on charge rates payees and the use of such revenue source.
b/ Borrow preferential credit according to current regulations.
c/ Be given priority in re-borrowing fund lent to the Vietnamese Government as concessional loans by international organizations.
d/ Raise capital in the form of contribution of shares, contribution of capital from laborers in units or communities; raise capital from other lawful sources through cooperation, joint venture with domestic and foreign enterprises, economic organizations, financial institutions and individuals.
4. Rural clean water price subsidy supports:
If the clean water prices decided by provincial-level People's Committees are lower than the costs correctly and fully calculated according to regulations, provincial-level People's Committees shall annually consider and provide subsidies from local budgets in order to ensure the legitimate rights and interests of water suppliers.
Article 5. Rural clean water supply work management or exploitation models
1. Depending on specific conditions on work sizes, water supply and treatment technologies as well as local socio-economic characteristics,
any of the following models can apply:
a/ Management and operation by individuals:
b/ Management and operation by cooperatives;
c/ Management and operation by public non­business units, including rural clean water and environmental sanitation centers, clean water management boards, etc.
d/ Management and operation by enterprises, including joint-stock companies, limited liability companies, state-owned one-member limited liability companies, irrigation work exploitation management companies, etc.
2. Fully qualified organizations and individuals can manage, operate and exploit rural clean water supply works in mutually agreed forms, bidding or order placement according to current regulations.
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