GUIDELINES FOR MANAGEMENT AND USE OF MARITIME ADMINISTRATIVE BUDGET FOR PURCHASE ORDER FOR COASTAL COMMUNICATION PUBLIC SERVICES

1. Scope: This Circular deals with management and use of maritime administrative budget for purchase order for coastal communication public services (hereinafter referred to as the budget).

2. Regulated entities:

a) Supplier providing coastal communication public services (hereinafter referred to as the services): Vietnam Maritime Communication and Electronics LLC (Vishipel).

b) Agency in charge of the services: Vietnam Maritime Administration.

c) Relevant agencies and organizations.

Maritime telecommunications network means assets, structures, and equipment directly serving coastal communication system of Vietnam which is invested by the State and managed by Vishipel, including:

1. Coast radio stations;

2. Hanoi Maritime Communications Monitoring Centre;

3. Haiphong Land Earth Station (LES);

4. Vietnam Local User Terminal/Mission Control Centre (LUT/VNMCC);

5. Long-range Identification and tracking of ships (LRIT).

1. Expenditures from the budget include:

a) Transmit maritime distress and rescue signals through Global Maritime Distress and Safety System (GMDSS): Receive, process, and transmit distress, search and rescue signals around the clock;

b) Provide maritime safety information through GMDSS;

c) Connect maritime communication;

d) Receive, process, and distribute Cospas-Sarsat alert data from Vietnam Mission Control Centre (VNMCC) to Search and Rescue Points of Contact (SPOC) of Laos and Cambodia;

dd) Manage, operate, and maintain Long-range Identification and tracking of ships (LRIT), including LRIT charges paid to the service supplier after deducting the LRIT charges collected by Vietnam Maritime Communication and Electronics LLC.

2. Method: the services prescribed in Clause 1 of this Article shall be provided according to the purchase order method.

1. According to economic and technical norms for operation and maintenance of coastal radio stations issued by the Ministry of Transport, according to general pricing method for goods and services issued by the Ministry of Finance and policies in force, Vietnam Maritime Communication and Electronics LLC shall make a price proposal (including basic depreciation of maritime telecommunications network) and submit it to Vietnam Maritime Administration for assessment. Then, the Ministry of Transport shall request the Ministry of Finance to issue maximum price.

2. According to the maximum price issued by the Ministry of Finance, the Ministry of Transport shall decide specific price of the services which equal average price of 1 radio station per 1 working hour (equal price of the whole system dividing by number of radio stations).

3. Price proposal documents shall comply with Appendix No. 2a issued together with Circular No. 56/2014/TT-BTC dated April 28, 2014 of the Ministry of Finance on guidelines for Decree No. 177/2013/ND-CP dated November 14, 2013 of the Government providing guidance on the Law on prices.

1. Making estimates for funding:

a) According to quantity of the services and expenditures prescribed in Clause 1 Article 3 of this Circular, the specific prices of the services of the previous year, estimated variation of input costs, Vishipel shall formulate a budget plan for the following year, and then send it to Vietnam Maritime Administration, the Ministry of Transport and the Ministry of Finance before every June 30.

b) According to the request of Vishipel prescribed in Point a Clause 1 of this Article, Vietnam Maritime Administration shall make an expenditure funding for the following year, and then send it to the Ministry of Transport before every July 15. The Ministry of Transport shall consider and include it to funding for receipts and expenditures of government budget of the Ministry of Transport, and then send it to the Ministry of Finance for consideration.

2. Granting funding:

a) According to annual expenditure funding provided by a competent authority, the Ministry of Transport shall grant the funding as prescribed in the Law on State budget.

b) The Ministry of Transport shall, with the consultation of the Ministry of Finance about the plan for expenditure estimate allocation, allocate the expenditure estimate to Vietnam Maritime Administration; and send it to the Ministry of Finance and State Treasury where Vietnam Maritime Administration opens its account for cooperation.

1. According to the expenditure funding provided by the Ministry of Transport and specific service price of the previous year, Vietnam Maritime Administration shall conclude a purchase order agreement on the services (hereinafter referred to as the agreement) with Vishipel as prescribed. Upon the approval for specific price of the previous year, Vietnam Maritime Administration shall conclude an Appendix on adjustment to the agreement value with Vishipel as prescribed.

2. The agreement shall contain:

a) List of the services prescribed in Clause 1 Article 3 of this Circular;

b) Quantity of the services;

c) Quality;

d) Service price (average price of a radio station per 1 working hour) and the agreement value in the current year;

dd) Contract execution duration;

e) Method of advance payment and recovery of advance payment;

g) Method of acceptance and payment;

h) Responsibility and obligations of contracting parties;

i) Responsibility of contracting parties in the event of contract breach;

k) Other relevant contents in accordance with regulations of law;

l) Contract template prescribed in Appendix 01 issued herewith.

3. Any amendment to the agreement shall comply with Article 23 of Decree No. 130/2013/ND-CP dated October 16, 2013 of the Government on provision of public services.

The acceptance shall apply to list of services prescribed in Clause 1 Article 3 of this Circular.

1. Acceptance duration:

a) The acceptance of service shall carry out quarterly;

b) Within 10 days from the end day of a quarter, Vishipel must make a report on the service provision results in the quarter, and then send it to Vietnam Maritime Administration;

c) Within 15 days from the date on which the report sent by Vishipel is received, Vietnam Maritime Administration shall carry out the acceptance of quantity and quality of the service provided according to the concluded agreement as the basis for payment as prescribed in Clause 1 Article 8 of this Circular.

2. Acceptance of quantity:

Acceptance of quantity of service provided according to the following inspection:

a) Duration of receiving, processing and transmitting emergency, search and rescue, maritime safety and security, etc. of each radio station;

b) Quantity of newscasts of maritime safety information through of each radio station;

c) Operation of maritime communication connection;

d) Receiving, processing, and distribution of Cospas-Sarsat alert data from Vietnam Mission Control Centre (VNMCC) to Search and Rescue Points of Contact (SPOC) of Laos and Cambodia;

dd) Long-range Identification and tracking of ships (LRIT);

3. Acceptance of service quality according to regulations on service standards and extent and results of task performance.

4. Acceptance report form shall use Appendix 02 issued herewith.

1. According to expenditure estimate provided, Vietnam Maritime Administration shall withdraw funding from State Treasury for advance payment or full payment for Vishipel according to the contract; the State Treasury shall inspect documents and expenditures before advance payment or full payment.

2. Advance payment of funding

a) After concluding the contract, Vietnam Maritime Administration shall make an advance payment for Vishipel. The rate of advance payment shall not exceed 30% of the agreement value.

b) Advance payment documents:

- A slip of funding withdrawing(advance payment) of Vietnam Maritime Administration;

- The contract concluded between  Vietnam Maritime Administration and Vishipel;

- A decision on expenditure funding granted to Vietnam Maritime Administration by the Ministry of Transport.

3. Full payment of service

a) Quarterly, Vietnam Maritime Administration shall make a full payment of service provided to Vishipel and recover the advance payment as prescribed. The advance payment shall be recovered from the initial installment, the rate of advance payment recovery shall be equivalent to the ratio of the amount of every installment to the agreement value, and the advance payment shall be fully recovered at the final installment of the year. 

b) Full payment documents:

- A decision on expenditure funding granted to Vietnam Maritime Administration by the Ministry of Transport;

- The agreement concluded between Vietnam Maritime Administration and Vishipel;

- An acceptance report on the service between Vietnam Maritime Administration and Vishipel;

- A request for advance payment (if any);

- A slip of funding withdrawing (actual expenditures) of Vietnam Maritime Administration and other legal documents as prescribed.

1. In case the quantity of the service increases upon the purchase order leading an increase in the agreement value, Vietnam Maritime Administration shall require an additional funding; in case it is out of funding, Vietnam Maritime Administration shall request to use the expenditure funding of the following year for payment.

2. When granting annual funding, the Ministry of Transport shall reserve an extra funding for the deficit funding of the previous year, the remaining amount of funding shall be granted in the current year.

1. Annually, Vishipel shall make a declaration of the contract execution and then send it to Vietnam Maritime Administration as prescribed. Companies and individuals involved shall take legal responsibility for the accuracy and truthfulness of the declaration figures and make compensation in case of improper declaration.

2. Vietnam Maritime Administration shall take charge and cooperate with units affiliated to the Ministry of Transport and the Ministry of Finance in inspection of service provision of Vishipel as prescribed.

3. Vietnam Maritime Administration shall make a report on declaration of funding granted by government budget as prescribed in the Law on State budget; and attach it to the general report on declaration, and then send it to the Ministry of Transport. The Ministry of Transport shall assess the declaration of Vietnam Maritime Administration and attach it to the declaration of the Ministry of Transport, and then send them to the Ministry of Finance for assessment as prescribed in and guiding documents.

1. Management and use of funding granted by the State

a) Vishipel shall provide the service in conformity with the concluded contract and in accordance with regulations of law, international agreements and practices in terms of maritime safety communication.

b) The funding granted by the State shall collect from the revenues of the service provided by Vishipel, Vishipel shall use it to cover the expenditures on the service provision; do accounting, declare and pay taxes as prescribed; and conduct financial management as prescribed in regulations of law in force in conformity with the type of business entity.

2. Manage maritime telecommunications network of the State

a) Vishipel shall be invested capital, assets and personnel by the State to provide the services regularly and stably. Apart from the public service provided upon the purchase order of the State, Vishipel may use its capital, assets and other resources to do business in accordance with regulations of law provided that it does not affect the public service provided and take responsibility for state-owned capital and asset efficiency.

b) Vishipel shall manage and use maritime telecommunications network prescribed in Article 2 of this Circular in accordance with regulations on management and use of fixed assets in enterprises and regulations on management of state-owned communications infrastructure. Vishipel may not put them in pledge, mortgage or contribute as capital; the liquidation and transfer of assets require approval of the Ministry of Transport.

c) Vishipel shall manage and use basic depreciation included in the service price to invest, replace and maintain maritime telecommunications network invested by the State.

3. Annually, Vietnam Maritime Administration shall make a financial statement and report on public service provision, and then send them to Vietnam Maritime Administration, the Ministry of Transport, and the Ministry of Finance as prescribed.

4. Vishipel shall undergo inspection and supervision of finance agencies, representatives of owners, tax authorities in terms of use of funding upon the order of the State and business activities as prescribed.

1. This Circular comes into force from November 10, 2015 and applies from financial year 2015.

2. This Circular replaces Circular No. 81/2010/TT-BTC dated May 31, 2010 of the Ministry of Finance on guidelines for purchase order for coastal communication public services.

3. In case any document mentioned in this Circular is amended or replaced, new document shall apply.

4. Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Transport and the Ministry of Finance for consideration./.