Chương III Nghị định 117/2007/NĐ-CP : Đầu tư phát triển cấp nước

Chapter III

WATER SUPPLY DEVELOPMENT INVESTMENT

Article 29. Selection of water supply units

1. A water supply unit may select or be selected as investor in one, a number or all of items of a water supply system ranging from exploitation, water treatment plant, grade-I or grade-II networks to grade-Ill networks, for clean water wholesale or retail.

2. For areas where already exist water supply service-providing organizations or individuals, such organizations or individuals are appointed as water supply units providing water supply services in the areas.

3. For areas where water supply units providing water supply services are not available, the selection of water supply units for investment in the construction of water supply systems and clean water business in the areas is carried out in accordance with legal provisions on bidding and under specific conditions of each locality.

4. Water supply source works identified in the water supply plannings approved by competent state bodies are publicized for investment calling and bidding to select investors in accordance with law. Investment in a water supply source work is divided into different phases; the water supply unit that has invested in construction in the previous phase can be considered and appointed as investor in the subsequent phase if meeting the capability conditions and having rational techno-economic proposals.

5. Organizations and individuals are encouraged to take the initiative in studying and registering as investors in investment projects on water supply development.

6. Competence to select water supply units:

a/ Peoples Committees of cities, towns or townships in urban centers, commune Peoples Committees in rural areas (below referred to as Peoples Committees for short) and industrial park management boards shall organize the selection of water supply units in areas under their respective management; if a water supply work is of regional scale in a province, the Peoples Committee that manages localities in the water supply region covered by that work shall organize the Selection of a water supply unit, with participation of localities in the water supply region;

b/ The Construction Ministry shall organize the selection of water supply units for water supply works in urban centers or industrial parks, which are of inter-provincial water supply scale, with participation of relevant provinces;

c/ The Ministry of Agriculture and Rural Development shall organize the selection of water supply units for rural water supply works of inter-provincial scale, with participation of relevant provinces.

Article 30. Investment incentives, preferences and support

1. Economic sectors are encouraged to invest in water supply development.

2. Water supply rotation fund:

a/ To set up the water supply rotation fund managed by the Vietnam Development Bank with a view to creating available preferential financial sources for investment projects on water supply development in small urban centers and concentrated population quarters;

b/ The Finance Ministry shall coordinate with the Construction Ministry and the Ministry of Agriculture and Rural Development in studying and submitting to the Prime Minister for decision and promulgation an operation mechanism applicable to the water supply rotation fund.

3. Water supply construction investment projects are eligible for the State supports as follows:

a/ Investment in construction of infrastructures outside the fences such as power supply facilities, roads;

b/ Expenses for ground clearance compensation upon execution of water supply projects in urban centers;

c/ Expenses for ground clearance compensation and part of the expenses for investment in construction of works upon the execution of water supply projects for regions meeting with exceptional difficulties in water sources, regions inhabited by ethnic minority people, mountainous regions and islands;

d/ Priority in the use of preferential financial sources for water supply investment projects, regardless of users;

dd/ Priority in terms of the post-investment interest rate supports for water supply projects financed by commercial loan capital;

e/ Exemption of land use levies.

4. The Ministry of Planning and Investment shall coordinate with the Finance Ministry, the Construction Ministry, the Ministry of Agriculture and Rural Development and relevant ministries and branches in guiding specific preferential mechanisms for water supply projects and encourage domestic enterprises to produce and use home-made materials and specialized equipment.

Article 31. Agreements on provision of water supply services

1. Agreements on provision of water supply services are legal documents concluded between Peoples Committees or authorized agencies and water supply units providing water supply services in the areas.

2. An agreement on provision of water supply services has the following fundamental details:

a/ The area supplied with water;

b/ The water supply development planning orientations;

c/ The projected financial sources for implementation of the water supply development plan;

d/ The water supply charges, the roadmap and principles for its adjustment;

e/ Service conditions (water quality, pressure, flow and continuity), roadmap for improvement of service conditions;

f/ Obligations and rights of the involved parties.

Article 32. Areas provided with water supply services

1. A water supply unit may cover one or a lot of water supply service areas, each of which is provided with water supply services by only one water supply unit.

2. Water supply service areas are determined based on water supply demands, managerial and financial capabilities of water supply units, water sources and other techno-economic factors.

3. Water supply units are obliged to ensure water-using customers connections to water supply networks in their respective service areas, balancing the water use demands for different purposes.

4. Water supply service areas are adjusted upon requirements.

Article 33. Water supply development plans

1. A water supply development plan covers investment solutions and schemes, specific jobs to be done in order to incrementally increase the service coverage and improve service quality conditions in water supply service areas.

2. Water supply development plans must conform to the approved construction plannings and water supply plannings and ensure the coordination with relevant localities.

3. Water supply units are obliged to formulate and submit to the Peoples Committees that have signed with them agreements on water supply service provision for approval annual and long-term water supply development plans in their respective service areas.

Article 34. Investment compatible with water supply development plannings and plans

1. Investment in construction of water supply works must be compatible with the approved water supply development plannings and plans.

2. Investment in development of networks of distribution and connections to water using customers rests with water supply units once the water supply development plans were approved by competent authorities.

Article 35. Investment phasing and scaling

The investment phasing and scaling of water supply works must suit the practical conditions and anticipate the socio-economic development plannings, construction plannings, water supply plannings within 5 years from the time the works are expected to be commissioned with a view to promoting investment efficiency.

Article 36. Transfer of water supply service business rights

The transfer of part or all of water supply service business rights of a water supply unit to other organizations or individuals must be approved by the Peoples Committees or their authorized bodies, that have signed agreements on water supply service provision with that water supply unit.

Article 37. Management of water supply work construction quality

1. The management of water supply work construction quality shall comply with legal provisions on construction.

2. Large-scale water supply works of important significance must be inspected and certified for compatibility with construction work quality in accordance with the provisions of law on construction before they are commissioned.

Article 38. Investment projects on construction of water supply works

1. The formulation, appraisal, approval and implementation of investment projects on construction of water supply works shall comply with the provisions of this Decree and other relevant provisions of law on work construction investment.

2. When studying the formulation of investment projects on construction of water supply works in areas where concentrated water supply systems are not available or areas where already exist concentrated water supply systems, which substantially alter the service quality conditions and clean water supply charge rates, consultancy organizations must:

a/ Conduct sociological investigations and surveys and public polling in order to assess the actual living standards, capabilities and readiness for connections and performance of obligations to pay water supply charges of the people in the areas covered by the projects; at the same time, notify them of information on the projects, the quality of services provided to them once the projects are completed, so that they participate in the process of making decisions and supervise the implementation;

b/ Examine the selection of technical and technological options and capacity and determine the total investment of the projects in their comprehensive relations with management and operation costs in order to ensure the overall economic efficiency of the projects;

c/ Calculate clean water charge options suitable to specific conditions of capital sources of the projects;

d/ Draft agreements on water supply service provision or supplements or amendments to the water supply service-providing agreements already concluded between Peoples Committees and water supply units.

3. Investment projects on construction of water supply works of a capacity of 30,000 m3/day or more each, for urban centers of special grade, or 10,000 m3/day or more each, for other urban centers, must be consented in writing by the Construction Ministry before they are submitted to competent authorities for approval.