| MINISTRY OF FINANCE - MINISTRY OF CONSTRUCTION - MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT -------- No.: 75/2012/TTLT-BTC-BXD-BNNPTNT | SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ---------------- Hanoi, May 15, 2012 |
JOINT CIRCULAR
GUIDING PRINCIPLES AND METHOD OF DETERMINATION AND COMPETENCE TO DECIDE WATER CONSUMPTION PRICE IN THE URBAN AREAS, INDUSTRIAL ZONES AND RURAL AREAS
Pursuant to the Decree No.170/2003 /ND-CP dated 25/12/2003 of the Government detailing the implementation of some Articles of the Ordinance on Price; the Decree No.75/2008/ND-CP dated 09/06/2008 of the Government amending and supplementing some Articles of the Decree No.170/2003/ND-CP;
Pursuant to the Decree No.117/2007/ND-CP dated 11/7/2007 of the Government on the production, supply and consumption of clean water; the Decree No.124/2011/ND-CP dated 28/12/2011 of the Government amending and supplementing some Articles of the Decree No.117/2007/ND-CP dated 11/7/2007 of the Government on the production, supply and consumption of clean water;
Pursuant to the Decree No.118/2008/ND-CP dated 27/11/2008 of the Government regulating functions, duties, powers and organizational structure of Ministry of Finance;
Pursuant to the Decree No.17/2008/ND-CP dated 04/02/2008 of the Government regulating functions, duties, powers and organizational structure of Ministry of Construction;
Pursuant to the Decree No.01/2008/ND-CP dated 03/01/2008 of the Government regulating functions, duties, powers and organizational structure of Ministry of Agriculture and Rural Development;
Pursuant to the Decision No.2147/QD-TTg on 24/11/2010 of the Prime Minister approving the national program against loss, collection loss of clean water by 2025;
Minister of Finance; Minister of Construction; Minister of Agriculture and Rural Development issue a Joint Circular to guide principles, and method for determining competence to decide the price of clean water consumption in the urban areas, industrial zones and rural areas as follows:
Chapter I
GENERAL PROVISIONS
Article 1. Scope of governing
This Joint Circular guides the principles and method of determination of clean water consumption price and competence to decide on clean water consumption prices for used as a basis for the organizations that are competent under the provisions of law and the provisions of this Joint Circular to prepare, submit and approve price plan and decide on clean water prices in urban areas, industrial zones and rural areas.
Article 2. Subjects of application
This Joint Circular applies to organizations that are competent to prepare, submit, evaluate the price plan and decide on clean water consumption prices in accordance with the provisions of law and the provisions of this Circular; the water supply units conduct water supply services in the field of wholesale, retail and water use customers.
Chapter II
PRINCIPLES FOR DETERMINING CLEAN WATER CONSUMPTION PRICES
Article 3. Principles for determining the clean water consumption prices
1. Clean water prices must be calculated accurately and fully reasonable production costs, the entire cost of the production process, distribution and consumption (including the cost of maintaining connection) for the water supply units to maintain and develop on the basis of regulations, standards, technical and economic norms announced or promulgated according to law provisions by the competent agencies and reasonable norm profit of commercial water volume performed by the organizations and individuals a part or all of the activities of mining, production, transmission, wholesale and retail of clean water (called as water supply units) under the provisions of the Regulation on valuation issued by the State and the guidance in this Circular in accordance with relationship of demand and supply on clean water and conditions of socio-economic development of the country, region and income of people in each period, to ensure the legitimate rights and interests of the water supply units and customers of water use; to encourage the water supply units to improve quality of service and strive to reduce costs, reduce water loss to meet the needs of customers, and encourage customers to use water economically and also encourage the investors to invest in production, supply and consumption of clean water.
2. Prices of clean water consumption of water supply units are determined not based on economic components; subjects of water use as domestic or foreign organizations or individuals, but be determined for each different purpose of water use such as: water used for residential activities (taking into supporting policies for the subjects of water use as the poor households of the regions of ethnic minority and mountainous areas, coastal areas and islands and border areas under the current criteria prescribed by the State); water used for the administrative agencies, non-business organizations; for manufacturing, business, services, in accordance with the characteristics of water consumption, water source and conditions of water production of each region, each locality, each region.
3. Water consumption prices are prescribed under principles of determining prices prescribed in Clause 1 hereof in accordance with principles and methods of determining prices, competence and within the price bracket or limit prescribed by the State; but required to conform to water quality under the current technical regulations announced or issued by the competent agencies under the provisions of law.
4. If prices of water consumption are decided (or approved) by the People's Committees of provinces and cities under central authority (hereinafter referred to as provincial-level People's Committee) lower than the clean water price plan compiled by the water supply units and has been appraised by Departments of Finance according to the principles of calculating accurately, calculating fully as above regulated, then annually the provincial-level People's Committees must consider, subsidize from local budget or have reasonable support mechanism in accordance with the authority and the provisions of law to ensure that the clean water supply, production units are covered enough costs to conduct normal production, business, except where clean water is produced from clean water projects invested under the BOT method.
