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                           Socialist Republic of Vietnam
STATE PLANNING COMMITTEE  Independence-freedom-Happiness
MINISTRY Of CONSTRUCTION,      htmlhtmlhtml---
  MINISTRY Of fiNANCE
     No. 09-TTLB
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                                     Hanoi, 10 June 1994.


                         CIRCULAR
   GUIDING PROCEDURES TO RE-APPROVE fEASIBILITY STUDY, 
   TECHNICAL  DESIGNING   AND   TOTAL  ESTIMATED  COST
   ACCORDING TO DECISION NO.92/TTG DATED 7 MARCH, 1994 
                  Of THE PRIME MINISTER

To implement Decision No 92 TTg dated 7 March, 1994 of the Prime Minister on "Strengthening the management; preventing from wastage, lots and negative event in investment and construction", the Interministry of States Planning Committee, the Ministry of Construction and the Ministry of finance guide procedures to re-approve feasibility study; technical designing and total estimated cost of construction projects which exceed total investment capital and total estimated previously approved.

• I. General principles
  • 1. Objects required to be re-approved according to this Circular include :
    • 1.1. Projects which have no feasibility study or technical economic report approved or the approval of the failed to conform with regulations in the Rules for management of capital construction promulgated in attachment to Decree No 385 HDBT dated 7 November ber, 1990.

    • 1.2. Projects which have feasibility study approved according to general regulation but if technical designing and total estimated cost are still missing they should be formulated for further submission. The total estimated cost to be approved must not ex ceed ten (10) percent of the total investment capital stated in the feasibility study initially approved.

    • 1.3. Projects which have feasibility study, technical designing and total estimated cost approved according to general regulations but the volume of the work implemented up to the end of 1993 in addition to the volume of the work assigned for 1994 exceed ten (10) per cent of the total investment capital previously approved, then they shall be submitted for further approval and adjustment in respect of both feasibility study and total estimated cost.
  • 2. The total investment capital and total estimated cost of all projects which were approved previously as well as the total investment capital requested to be adjusted and submitted to be re-approved shall be determined as follows : Total capital which have been already spent from the date of starting construction to the end of 1993 plus the value of volume of the work which are implemented from 1994 which is calculated on the basic of price level prevailing in 1994.

  • 3. The ceiling value of the projects shall be in accordance with temporary regulations at the Annex of Circular No 01 TTLB dated 29 March, 1991 of the Interministry of State Manning Committee - Ministry of Construction - Ministry of finance - State Bank o f Vietnam guiding the implementation of the "Rules for Management of capital construction" promulgated in attachment to the Decree No 385 HDBT dated 7 November 1990 which is applicable to price level prevailing in 1994 plus coefficient of price - raise wh ich is equal to two (twice). This coefficient of price-raise shall be applicable to the determination of ceiling value of the projects in order to create foundation for the decision of responsibility in the approval of possibility study and not to balance the accounts.
• II Procedures for re-submission are re-approval

  Reappoval of feasibility study, technical designing and total estimated cost must comply with regulations concerning the division of responsibility in the "Rules for management of capital construction" promulgated in attachment to Decree 385 HDBT. After b eing adjusted according to the above - mentioned principles, the feasibility study, technical designing and total estimated cost of the projects shall be re-approved as follows :

  • 1. for important project, the feasibility study of which was approved by the Chairman of the Council of Ministers or the Prime Minister, the file for submission and re-approval of the feasibility study shall be sent to the State Planning Committee, the Mi nistry of Construction, the Ministry of finance and the State Bank of Vietnam.

    The State evaluation council shall consider and submit to the Prime Minister for decision.

  • 2. for some projects, of special importance, the feasibility study, technical designing and total estimated cost of which were approved by the Chairman of the Council of Ministers or the Prime Minister, the file for submission and re-approval of the feasi bility study as well as technical designing and total estimated cost shall be sent to the standing Board of the State evaluation council for consideration and submission to the Prime Minister for decision.

  • 3. for project with capital exceeding the ceiling value, the file for submission and re-approval of the feasibility study shall be attached with evaluation document and request of the investment owner and sent to the State Planning Committee and the Minis try of Construction for agreement before the investment owner re-approves it.

    The file for re-approval of technical designing and total estimated cost of these projects shall be re-approved by the investment owner and shall not be subject to a division of responsibility of its lower level of the investment owner.

  • 4. for project with capital not exceeding the ceiling value, the investment owner shall be liable to re-approve both feasibility study, technical designing and total estimated cost and to report the list to the State Planning Committee and the Ministry o f finance.
• III. file for Re- submission and re - approval
  • 1. feasibility study and total investment capital :
    • - Document of the investment owner (investor) for re-submission, re-approval or re-agreement of the feasibility study in which the scale and output shall be clearly stated (if they are adjusted or kept intact). The total investment capital requested to be re-approved (after conversion) and the amount of capital allocated to the remaining volume of the work which is in conformity with the structure (construction - installation, equipment and other construction issues).

    • - The exposition of causes which exceed the total investment capital. Brief presentation of causes which led to the increase of investment capital (the change of objectives, output, scale of project, technologies and equipment; the change of location or t he change of prices ect) attached with comparative forms I - 1,2.

    • - Original feasibility study which was approved (attached with copies of decisions concerning the approval, agreed documents ect).

    • - Document certified by the bodies which provide capital or grant loans which was implemented according to the volume of the work annually completed.
  • 2. Technical designing and total estimated cost
    • - Submission form of the investment owner asking for approval or re-approval of the technical designing and total estimated cost ( in the case where the project is of special importance, this document is prepared by the investment owner).

    • - Justification explaining the causes which led to the excess of capital including, the ones which led to total investment capital in feasibility study already adjusted and others (due to the changes in structure, architecture, foundation, technological e quipment; the change of interior decoration equipment; due to unregistered conditions in construction like flood and inundation, storm, earthquake; due to subjectiveness in construction designing ect.) and presented in the forms II - 1, 2, 3, 4, 5, 6.

    • - feasibility study which was adjusted and decision to re-approve it (in the case where the project needs no adjustment, the total investment capital shall be the amount stated in former feasibility study).

  Technical designing accompanied by total investment capital which was adjusted and is submitted for its re-approval

• IV. Organization of implementation
  • 1. All on - going projects which fail to comply with procedures to approve feasibility study, technical designing and total estimated cost which exceed total investment capital by ten (10) per cent shall be re-approval according to the guidance of this ci rcular in a maximum duration up to 30 June 1994 with a view to creating foundations for the settlement of investment capital 1994.

  • 2. In the cases of special emergence where they fail to comply with enforced regulations of decision No 92 TTg, the investment owner shall be liable to report to the Prime Minister for final decision.

for the Ministry  for the Ministry  for the State Planning 
of finance        of Construction   Committee       
Deputy Minister   Deputy Minister   Vice Chairman                                    

  
NGUYEN SINH HUNG  KHUC VAN THANH    TRAN DINH KHIEU