Decision No. 35/2008/QD-TTg on the organization and operation of Vietnam Environmental Protection Fund

Issue nos11.121February 2008 (Cang Bao nos 16~ 161i/Ma~h 8, 1OO8J OFFICIAL GAZETTE 11 DECISION No. 3512008/QD-TTg OF MARCH 3,2008,ON THEORGANIZATION AND OPERATION OF VIETNAM ENVIRONMENTAL PROTECTION FLND THE PRIME MINISTER Pursuant to the December 15, 2001 Law on Organization ofthe Government: Pnrvnrmt tn fhp Nm'p»1l:lIlr 19, 2005 Law on Environmental Protection; At the proposal of the Minister of Natural Resources and E1Ivironmcnt, DECIDES: Article 1.- Function ofVietnamEnvironmental Protection Fund Vietnam Environmental Protection Fund has (he runcrton of receiving slate budget capital; fundings, contributions and entrusted capital from domestic and foreign organizations and individuals in order to finance envimnmemal protection activities nationwide. Article 2.- Legal status of Vietnam Environmental Protection Fund 1.Vietnam Environmental Protection Fund is a state financial institution attached to tbe Minisrry of Natural Resources and Environment and subject to the Finance Ministry's state management of financial matters. Vietnam Environmental Protection Fund is a national environmental protection fund. Vietnam Environmental Protection Fund has the legal person status, charter capital, its own balance sheet and seal, and may open accounts at the State Treasury and domestic and foreign banks in accordance with law. 2. Name: Quy Bao l-t Moi Truong Viet Nam. Its transaction name in English: Vietnam Environmental Protection Fund (VEPF). 3. Vietnam Environmental Protection Fund is headquartered in Hanoi. The Fund has its representative offices in provinces unu cenrrally run cities as decided by its Management Council. When necessary, the Fund may set up its transaction offices in foreign countries according to the Government's regulations. © VIETNAM LAW & LEGAL FORUM 12 OFFICIAL GAZETTE Issuo nos 11.1VFobruary 2008 (r."na RAO no~ 165.1hfilMflrrh 8J 2008; Article 3,~ Operation of Vietnam Environmental Protection Fund 1. Vietnam Environmental Protection Fund operates for not-for-profit purposes but must preserve its charter capital and self-finance management expenses. 2. The Minister of Natural Resources and Environment shall promulgate it Charter on the organtzatton and operanon or Vietnam Environmental Protection Fund in accordance with this Decision and the State's current regulations. Artkk 4.- Tasks of Vietnam Environmental Protection Fund L'Io reccivecapitaltrom sourcesspecifiedin Article 6 of this Decision for its operation. 2.Toprovide financial supportsforprograms, projects and activities un natural and biodiversity conservation; prevention, combat and remedy of national, inter-branch or inter-regional environmental pollution. deterioration and incidents; or settlement of local environmental issues which have great impacts, in the following forms: aJProviding soft loans; b/ Providing loan interest-rate support or loan guarantee for environmental projects loaned by credit institutions in accordance with law; clFinancing the formulation and execution of projects funded by the Fund for the performance uf Iillik:s and acuvilic:s lv deal wlth envirunmcrual pollution, respond to and overcome consequences caused by environmental incidents or disasters; programs, plans and projects under the Prime Minister's decisions; the presentation of environmental awards and other forms of commendation for honoring organizations and individuals WILtI outstandtng environmental protection efforts under the Natural Resources and Environment Minister's decisions; and environmental protection projects and tasks defined in its organization and operation Charter. 3. To act according to its objectives and runcuons as a co-donor or co-lender tor environmental projects with domestic andforeign financial institutions, the Global Environmental Fund (GEF), foreign environmental funds anrl branch and local environmental funds, serving environmental protection activities in accordance with law. 4. To evaluate and approve the levels, time and forms of financial support for environmental protection projects and tasks funded with its investment support capital according to its organization and operation Charter. 5. To use idle capital not originated from the state budget. with consent ofcapital providers, to purchase government bonds in accordance with law. 6. To register, monitor and manage certified emissions reductions (below referred to as CERs; one CER is equal to one ton of carbon dioxide equivalent); to register CERs receipt, allocation and sale for CER3 owners or rccipicnta, to collect CERs sale fees in order to cover fee collection expenses; to provide financial supports for the dissemination and propaganda of the clean development mechanism (CDM); to formulate, evaluate and approve documents of investment projects under the CDM (below referred to as COM projects); to manase and supervise the execution of CDM projects and other CDM related purposes in accordance with law; to subsidize the prices of products. ofCDM"projects in accordance with law. 7. To receive deposits for environmental restoration in mineral exploitation from organtzattons Or individuals licensed to exploit © VIETNAM LAW & LEGAL FORUM Issue nos11-121February 2008 (r.img Baa nn.~ 1fi.'i-1fWMarch 8, ,)nrJR) OFFICIAL GAZETTE 13 minerals. 8. To participate in coordination and financial management of key environmental protection programs and projects as assigned by the Minister of Natural Resources and Environment and decided by a competent auuionry, 9. To perform other tasks assigned by the Mini ster of Natural Resources and Environment. Article S.-Powers ofVietnam Envirorimental Protection Fund 1. To organize its administration body and professional units operating according to the Charter, objectives and assigned tasks. 2.To regularly or irregularly inspect its capital users III the performance of environmental protection activities, tasks and projects. To withdraw loans, stop funding or provision ofloan interest rate supports for investors that breach commitments with the Fund or violate state regulations, and initiate lawsuits against those investors with competent agencies in accordance with law. 3. To invite experts of concerned ministries, branches and organizations to participate in the Council for evaluation of environmental protection activities, tasks and projects that call for funding or investment support, and in other acti vities of the Fund. 4. To enjoy wage, bonus and welfare entitlements like a state enterprise according to regulations. 5. To refuse any organizations' or individuals' requests to supply its information or other resources if those requests contravene the law or the rund' s orgamzauon and operation Charter. 6. To directly establish relationships with domestic and foreign organizations and individuals in order to call for, atu act ai III .Iecel VI; fundings or raise additional capi tal. 7.To send its staffmembers for overseas work trips, study tours or surveys in accordance with law. Article 6.- Capital sources of Vietnam Environmental Protection Fund Vietnam Environmental Protection Fund's nperaring capital is formed fmm the fOllowing sources: I.The Fund's charter capital ofVND 500(five hundred) billion allocated from the state budget within two years from the effective date of this Decision. Annually, the Fund will additionally be allocated with capital from the state budget's non business fund for environmental issue'S in order to offset expenses for environmental protection projects and tasks, ensuring that the Fund's operating capital from the state budget will beat least equal to VND 500 billion. The a4;ustment of the Fund's charter capital shall be decided by thePrime Minister at the proposal oftheMinister uf Natural Resources and Environment and me Minister ofFinance. 2. Other annual additional sources ofcapital: a/ Ell vit oiuueutal VI utectiou L:lnugt:s fur wastewater, waste gas, solid waste and mineral exploi tation, and other environmentalprotection charges as prescribed by law; bI Environmental damages remitted into the state budget; cI Fines for administrative violations in the environmental protection domain; d/ CERs sale fees; e/ Fundings, supports, contributions and entrusted investments of domestic and foreign organizations and individuals; f/ Other additional sources of capital as prescribed by law. © VIETNAM LAW & LEGAL FORUM 14 OFFICIAL Gt,ZETTE Issue nos 11-12/February 2008 (Gang BaD nos 165-166/March 8/2008) Article 7.- Management and administration apparatus of Vietnam Environmental Protection Fund Vietnam Environmental Protection Fund's management and administration apparatus is composed of the Fund's Management Council, theControlBoard, theprofessional administration body and the Fund's representativeoffices. 1. The Fund's Management Council has its chairman and members. The Council Chairman will bea viceminister of the Ministry of Natural Resources and Environment. Council members will bedepartmental-level leaders ufthe Mlnlstry otNatural Resources and Environment, the Ministry of Finance, the MinistryofPlanningandInvestmentand theState Bank of Vietnam. At the-proposal of the Ministry of Finance, the Ministry of Planning and Investmentand tbe State Bank of Vietnam, the Minister of Natural Resourcesand Environmentshallissuedecisions appointing Council members. Councilmembers will operate on a part-time basis and enjoy entitlements under the SlALt:'~ CWTen( regulations. 2.TheControlBoardhasitshead andmembers. The Control Board's head shallbeappointed and relieved Iroin office by the Chairman uf Oil: Fund's Management Council. Control Board members shall be decided by theChairmanof the Fund's Management Council at the proposal of the Control Board's head; the number of Control Boardmembers mustnotexceedfive.The Control Board shall operate on a full-time basis. 3. Vietnam Environmental ProtectionFund's professionaladministrationbody has the director, deputy directors, the chief accountant, professional sections and departments and the Fund's representativeoffices. aJ The Fund director shan be appointed or relieved from office by the Minister of Natural ResourcesandEnvironmentat theproposalof the Chairman of the Fund's Management Council; b! The director shall recommend while the Chairman of the Fund's Management Council shall consider and submit the titles of deputy director and chief accountant to the Minister of Natural Resources and Environment for appointment or reiief from office; c/The organizational structures, functionsand tasks of professional sections and units assisting theFund's professionaladministrationbodyshall bedecided by the Fund director after obtaining the approval of the Chairman of the Fund's Management Council; The Fund's professional administrationbody shall work on a full-timebasis. Article8.- Implementationprovisions This Decision takes effect 15 days after its publication in "CONG BAO" and replaces the provisions on organization and operation of VietnamEnvironmentalProtectionFund defined inArticles 1 thru9 of Decisian No.8212002lQD TIg of June 26, 2002. The Ministers of Natural Resources and Environment;Finance;PlanningandInvestment; and HomeAffairs. theGovernorof the StateBank of Vietnam,and theChairman of theManagement Council and the director of Vietnam Environmental ProtectionFund shallorganizethe lmplementation of this Decision. Ministers, headsof ministerial-level agencies, heads of government-attached agencies and presidents of provincial/municipal People 's Committees shall implement this Decision. For the Prime Minister Deputy Prime Minister HOANG TRUNG HAl © VIETNAM LAW & LEGAL FORUM