Decree No. 115/2008/ND-CP amending and supplementing a number of articles of the Government’s Decree No. 143/2003/ND-CP of 28 November 2003 detailing the implementation of a number of articles of the Ordinance on exploitation and protection of irrigation works

lssue I]OS O~6lNQ.v~mber20G8 OFF!CIAL GAZETTE (Gong Bao nos 613-614/November 24, 200B) ARTICLES OF THE GOVERNMENT'S DECREE No. 143/2003/ND-CP OF NOVEMBER 28, 2003, DETAILING THE IMPLEMENTATION OF A NUMBER OF ARTICLES OF THE ORDINANCE ON EXPLOITATION AND PROTECTION OF IRRIGATlONWORKS THE GOVERNMENT Pursuantto the December25, 2001 Law on Organization of the Government; Pursuantto theMay 20,1998 Law on Water Resources; Pursuant to the April 4. 2001 OrJiMnce on Exploitation and Protection oflrrigation Works; Pursuant to the August 28, 2001 Ordinance on Fees and Charges; At theproposal ofthe MinisterofFinance, DECREES: THE GOVERNMENT DECREE No. 11512008/ND·CP OF NUVI<:;M8k:K 14, 2U08, AMENDING AND SUPPLEMENTING A NUMBER OF Artielo 1.- To amend and supplementa number of articles of theGovernment's Decree-No. 143/ 20031ND~CP of November 28, 20031 detailing the implementation of a number of articles of the Ordinance on Exploitation and Protection of Irrigation Works as follows: 1. To amend and supplement Article 19 as follows: "Antcte 19.~ Irriganun charge rates allu irrigation charge exemption @ VI(::TNAY LAW & l.EGAl FORUM 50 OFFIeIAl GAlETTE Issue nos 05-06!November 2008 (Gong Silo nos 61J-6f4JNovcmbcr 24, 2008) 1. The irrigation charge and water-use levy budget are specified as follows: rates prescribed in Clause 4, Article 14 of the Ordinance on Exploitation and Protection of aJ Irrigation charge rate bracket for land Irrigation Works for works invested the state under rice: No. Regions and work methods Charges (VND 1,OOOlhalcrop) 1 Mountainous areas nationwide ~ Irrigation and drainage by motors 670 .~ Irrigation and drainage by gravity 566 Irrigation and drainage by gravity in combination with 635 motors 2 Red River delta Irrigation and drainage by motors 1,097 Irrigation and drainage by gravity 982 .~ Irrigation and drainage by gravity in combination with 1,040 motors 3 Northern midlands and Northern Region IV Trrigation and drainage by motors 955 Irrigation and drainage by gravity 886 • Irrigation and drainage hy gravity in combination with 970 motors 4 Southern Region IV and central coast Irrigation and drainage by motors 939 ~ Irrigation and drainage by gravity 824 ~ irrigation and drainage by gravity in combination with 866 motors 5 Central Highlands Irrigation and drainage by motors 751 Irrigation and drainage by gravity 658 Irrigation and drainage by gravity in combination with 728 motors @ VIETNAM LAW &LEGAL FORUM Issue nos O5-06JNoyember 2008 OFFICIAL GAZETTE (cbng Bao rcc 613 614JNovembcr 24, 2008) 51 6 Southeastern region Irrigation and drainage by motors 886 Irrigation and drainage by gravity 801 Irrigation and drainage by gravity in combination wJtn ~3lJ motors 7 Mekong River delta - - - - Irrigation and drainage by motors 1,055 Irrigation and drainage by gravity 732 Irrigation and drainage by gravity in combination with 824 motors For cases of partial self Irrigation and drainage, charges are equal to 60% of the above rates. For cases of only creating sources for irrigation and drainage by gravity, charges are equal to 40% of the above rates. ~ For cases of only creating sources for irrigation and drainage by motors, charges are equal to 50% of the above rates. For cases of taking advantage of tide for irrigationand drainage, chargesare equal to 70% of theratesapplicable to irrigation anddrainageby gravity. Provincial-level People's Committees shall specify listsof works and irrigationand drainage methods applicable toeach irrigation workunder theirmanagement. bIFor areas underrice seedlings, vegetables, subsidiaryerops and short-term industrial crops, including wintercrops,irrigationchargesareequal to 40% of the rates applicable to land under rice. el Irrigation charges applicable to salt production areequal to 2%of the value offinished salt products. dIWater-use levyratebracketfororganizations and individualsusingwateror providingservices fromirrigation worksforpurposesorherthan food production: No. Water users Unit Charges by work methods Electric Reservoir pumping dams, canals - - - - I Water supply for industrial and VNDfmJ 1,500 750 small industrial production 2 Water supply for daily-life water VNDfm J 1,100 750 plants, animal husbandry e VIETNAM LAW & LEGAL FORUM 52 OFFICIAl. GAZETTE Issue nos 05-06INovember 2008 (Cong BaD nos 613.131JlINovemt.er 24, 2008) 3 Water supply for irrigation of long- VNDfm3 850 700 term industrial, fruit, nower and pharmaceutical crops 4 Water supply for aquaculture VND/m3 70(J SOO VNDfm2 of open 2,500 water surface 5 - Aquaculture in irrigation % of output value 7% -10% reservoirs; 8% -10% Cage-fish rearing 6 Transport through ship locks, sluice gates of irrigation systems: Boats, barges VNDftonlpassage 6,000 Assorted rafts VNDIm2/passage 1,500 7 Use of water from irrigation works % of value of commercial 8% -12% for electricity generation electricity output 8 Use of irrigation works for Total turnover value 10%-15% business in tourism, resorts, convalescence and entertainment (including business in golf courses, casinos, restaurants) ~ When water is taken in volume, the water charge rate shall be calculated at the water receiving.places of water users. ~ Incaseof watersupply for irrigationoflong term industrial, fruit, flower and pharmaceutical crops,if it is impossible tocalculate incubicmeter (rrr'), chargesshallbecollectedbasedon the area (ha) at the rate equal to 40% of irrigationcharge rate applicable to land under rice. Provincial-level People's Committees shall Ijpcx:ifydw..rgc rules oct at Items 5, 7 and 8 of the water-use levy bracket prescribed at this Point suitableto the conditionsof local irrigationwork systems and in accordance with current regulations on decentralization of irrigationwork organization and management. 2.TheirrigationchargeratesspecifiedatPoints a, b and c, Clause 1 of this Articleare calculated from the starting sluice positions of canals of water-using cooperatives to the key items of @ VIETNAM LAW & LECAl J=ORUM Issue nos 05-06lNovember 20D8 0FF)CIAl GAZETTE (CongBao nos 613-614lNovemoer 24,2008) 53 irrigationworks. Provincial-level People's Committees shaH prescribe the starting sluice positions of canals of water-using cooperatives for each work system. 3. Water-using cooperatives shall reach agreement with water users on service charges for taking water from starting sluice positions of canals to fields (intra-field canals) which, however, must not exceed the limits set by provincial-levelPeople's Committees. 4. Irrigation charge rates for irrigation works not funded or partially funded bythe statebudget shall be agreed upon between irrigation work management and exploitation units and water using households and approved by provincial level People's Committees. 5. Exemption from irrigation charges. aJ SCOpe of exemption: Irrigation chargesare exemptforareasofland and water surface within thefarm landallocation quotas for households and individuals to use in agricultural. forestry and salt production and aquaculture, including state-allocated andlawfully inherited, donated,presentedand transferredland, including the5% locallymanagedpubliclandarea over which households and individuals have acquired the use rights through assignment or bidding. Irrigation charges are exempt for the entire areas of land and water surface for agricultural, fishery and salt production and aquaculture of households and individuals in special socio economic difficulty- and socio-economic dtfftculty-hit areas as prescribed by the Government. Irrigation charges onland and water surface areas exempt from irrigation charges under this Point for which it is impossible to distinguish between water supply, irrigation and drainage from irrigation works funded by the state budget or other sources shall be collected according to State-prescribed rates or under agreement. b/Irrigation charge exemption levels: Irrigation charge exemption levels for cases ofusing water from state budget-funded irrigation works shall be calculated according to the rates specifiedat Points a, b and c and Items 3 and 4 of the water-use levy bracket specified at Point d, Clause 1of this Article. Irrigation charge exemption levels for cases ofusing water from irrigation works not funded or partially funded with the state budget shall be calculated according to irrigation charge rates under agreement specified in Clause 4 of this Article. 6. Cases ineligible for irrigation. charge exemption specified in Clause 5 of this Article are subject to irrigation charges under this Decree." 2. To add Article 19a as follows: "Article 19a.- Policies for irrigation work management and exploitation units and state budget subsidies for imgation charge exemption 1. Irrigation work management and exploitation units are eligible for state budget © VIETNAM LAW &lEGAL FORUM OFFICIAl. GAZETTE Issue nos OS-06INovember 2008 (Gong Bao nos 61~14lNovember 24,2008) subsidies of the exempted irrigation charge amounts prescribed in this Decree, 2. Levels ofsubsidy are specified as follows; at Unit" managing and exploiting "tate budget funded irrigation work systems are entitled to state budget subsidies for the exempted irrigation ('hll~amounts calcnlared according to the charge rates specified at Points a, band c and Items 3 and 4 oftbe water-use levy bracket specified at Point d. Clause 1. Article 19 of this Decree. bl Units managing and exploiting irrigation work systems not funded or partially funded by the state budget and collecting irrigation charges under agreement are entitled to state budget subsidies for the exempted irrigation charge amounts 'Culcul4ted according to the rates specified in Clause 4)Article 19 of thi s Decree. cl Central budget spending tasks: To ensure WO% of exempted irrigation charge amounts for centrally run irrigation work management andexploitation units. To ensure 100% of exempted irrigation charge amounts for localities receivingadditional central budgetallocations. Thecentral budget shall support toeal budgets the exempted irrigation charge amounts for cases ofcollecting irrigation charges under agreement; but not exceeding 1.2 times the charge rates specifiedin Clause1,Article 19 of this Decree. To support 50% of the exempted irrigation charge amounts for localities having less than 50% of incomes transferred to the central budget (except for localities registering high income growth in which case local budgets shall cover these amounts themselves). The central budget shall support local budgets the exempted irrigation charge amounts for cases of collecting irrigation charges under agreement, but not exceeding 1.2 times the eharge rates spccificd in Clause 1,Article 19of this Decree. To support the deficit for localities which have to use local budgets to perform some or all of the tasks specified at Point d of this Clause when local budgets register a deficit due to objective reasons or a low IUCQme growth after using 50% of increased local budget revenues (if any) and 50% of local budget reserves according to the estimates assigned by the Prime Minister. d!Local budget spending tasks: For localities having 50% or more ofincomes transferred to the central budget, local budgets shall ensure 100% of (he exempted irrigation charge amounts for local irrigation work management and exploitation units. For lcculiries having less than 50% of incomes transferred to the central budget, local budgets shall ensure 50% of the exempted irrigation charge amounts for local irrigation work management and exploitation units. Local budgets shall ensure funds to offset the difference between the actually exempted irrigation charge amounts and the central budget supports for cases ofcollecting irrigation charges under agreement prescribed in Clause 4, Article 19 of this Decree. 3. Irrigation work management and exploitation units performing water supply, IETNAM LAW & LEGAL FORUM Issue nos 05-06/November 20D8 0FFie \AL GAZETTE (GongOalJ nos 01S-a14lNovemul;;r 24. 2(08) 55 irrigation and drainage tasks are entitled to subsidies, price subsiuies and financial supports under law. The centrsl budget shall provide subsidies, pricesubsidiesand financial supports for central irrigation work management and exploitation units. Local budgets shall provide subsidies, price subsidies and financial supports for local irrigation work management and exploitation units. 4. State irrigation work exploitation companies shall reorganize themselves and change rlie ir management methods upon irrigation charge exemption. Their redundant laborers, if any, are entitled to policies applicable to redundant laborers upon change of ownership, dissolution and bankruptcy of state companies. Funds for paying entitlements to redundant laborers shall be taken from the Enterprise Reorganization Support Fund at the State Capital Investment and Trading COqJOl atiou. 5.State irrigationwork exploitation companies are entitled to financial supports to cover outstanding debts of irrigation charges and losses due to objective reasons. The central budget shall support central irrigation work management and exploitation companies. Local budgets shall support local trrtganon work management and exploitation companies. When local budgets having difficulties in securing funds to support irrigation work management and exploitation companies, provincial-level People's Committees shall report such to the Ministry of Finance for sum up and submission to the Prime Minister for decision. 6. Irrigation work. management and exploitation units shall: aJ Provide adequate and timely irrigation and drainage services for agricultural, forestry, aquacultureand sanproduction While coaserving water to the utmost, bl Elaborate annual cost estimates and production and business plans and submit them to competent agencies for approval as 'follows: Centrally nm .irrigation work rnanaiJiiJIlent and exploitation units shall report to the Ministry of Agriculture and Rural Development and the Mini<;:try ofFinance. Locally run irrigation work managementand exploitation units shall report to provincial-level People's Committees fUl fUi thcl It:ptJll to the Ministry of Finance and the Ministry of Agriculture and Rural Development." 3. To amend and supplement aause 4, Article 27 as follows: "4. To elaborate legal documents and promulgate them according to irs competence or submit them to the Government for promulgation on decentralization of irrigation work management, and processes, regulations, standards and norms for water protection and use and regular maintenance and repair of © VIETNAM LAW & LEGAL FORUM 56 OFFICIAL GAZETT E Issue nos 05-OOlNov!!mber 2008 (GOng BaD nos 613-814JNovember 24,2008) irrigation works, and reward polices for water conservation. To organize and rearrange irrigation work management and exploitation companies under thei I management Lv efficieutly usc ill igation worksaccording to thenewpolicieson irrigation charges. To supervise the management and operation of irrigation worksystems." 4. To Pllleml aud su......lenient Clause 6, Article 28 as follows: "6 ~ Ministry of Finance shall assume meprimeresponsibility for, andcoordinatewith the Ministry of Agriculture and Rural DeveloptnP;nt ;lnd concerned ministries and branches in: aJGuidingtheimplementation of regulations on bidding, placement of orders, assignment of tasks of irrigationand drainage for agricultural production of irrigation work management and exploitation uni15 and theregulationon financial management of state irrigation work management and exploitation companies. bl Promulgating documents guiding the elaboration of cost estimates and allocation, management, payment and settlement of expenses concerning irrigation charge exemption. cJ Synthesizing budget spending estimates for irrigation charge exemption by central irrigation work management and exploitation companies and irrigation work management and exploitation unitsof provincesand centrallyrun cities and report them to the Government fOT submission to the National Assembly for approval under the State Budget Law. dJExamining and supervising the irngatron charge ex.emption and use of budgets allocated to inigation work managementandexploitation compames and water-using cooperatives." 5. Toadd Clauses 10, 11, 12, 13 and 14 to Article 29 as fulluw:'l: " 10. To decentralize the management of specific irrigation works under the guidance of the Ministry of Agriculture and Rural Development. 11. Tosupervise theformulation and issuance of laborandecono-technical normsfor irrigation work managementand exploitationcompanies and water-using cooperatives.Todecide on the modes of assignmentof plans and placementof orders for irrigation work management and exploitationunits, to approvecostestimatesand allocateand managethepaymentand settlement of, funds for irrigation work management and exploitation units. 12. To annually elaborate cost estimates for offsetting the exempted irrigation charge amounts forirrigationworkmanagement andexploitation units and submit them provincial-level People's Councils for consideration and decision (for localities having incomestransferred tothecentral budget); to review support levels (for localities receiving central budget supports: and those having e VIETNAM LAW & LEGAL FORUM Issue nos O5-06JNovember 2008 0FFieIAL GAZETTE (Cong Bao nos 613-6f4iNovsmber 21, 200&) less than 50% ofincomes transferred to thecentral budget) for report to the Ministry ofFinance and the Ministry of Agriculture and Rural Development. 13. To supervise the collection, spending, payment and settlement of budget supports. 14 To organiz e the rearrangement of provincial irrigation work management and exploitation companies in accordance with the new irrigation r:hargf'. policip.,, " Article 2.- This Decree takes effect on January 1, 2009, and replaces the Government's Decree No. 15412007/ND-CP of October 15, 2007, amending and supplementing a number of articles of the Government's Decree No. 143/ 2003/ND-CP of November 28,2003, detailing a number of articles of the Ordinance on Exploitation and Protection of Irrigation Works. Article 3.- The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development in, guiding the implementation of this Decree. Article 4.- Ministers, headsofministerial-level agencies, heads of government-attached agencies and presidents of provincial-level People's Committees shall implement this Decree. On behalfofthe Government Prime Minister NGUYEN TAN DUNG e VIETNAM LAW & LEGAL FORUM 57