DECREE

PRESCRIBING THE FINANCIAL SOURCE FOR ROAD MANAGEMENT AND MAINTENANCE AS WELL AS THE MANAGEMENT AND USE THEREOF

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the June 29, 2001 Law on Land-Road Traffic;
Pursuant to the December 16, 2002 Law on State Budget;
Pursuant to the December 16, 2001 Ordinance on Charges and Fees;
At the proposal of the Minister of Communications and Transport,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- This Decree prescribes the financial source for road management and maintenance as well as the management and use thereof.

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Article 3.-

The financial source for road management and maintenance must be adequate and stable for the management, maintenance and protection of road traffic infrastructures, thus ensuring smooth, safe and convenient road traffic.

The financial source for road management and maintenance shall be used only for jobs and activities related thereto.

Article 4.- The financial source for road management and maintenance shall be apportioned as follows:

- The financial source for management and maintenance of the national highway system shall be allocated from the central budget and other capital sources according to law provisions.

- The financial source for management and maintenance of roads belonging to the systems of provincial roads, urban roads, district roads and commune roads (hereinafter referred collectively to as local road systems) shall be allocated from local budgets and other capital sources according to law provisions.

- The financial source for management and maintenance of special-use roads and roads invested with capital sources other than the State budget during the course of exploitation and use shall be covered by investors themselves according to law provisions.

Chapter II

FINANCIAL SOURCE FOR ROAD MANAGEMENT AND MAINTENANCE

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1. State budget allocations.

2. Proceeds from collection of road tolls.

3. Capital sources of investors, for roads under commercial exploitation.

4. Contributions and mobilizations from organizations and individuals.

5. Other lawful capital sources.

The Ministry of Communications and Transport shall coordinate with the Ministry of Finance in formulating a mechanism to create capital for the management and maintenance of the national highway system, then submitting it to the Prime Minister for decision.

The provincial-level People's Committees shall formulate and submit to the provincial-level People's Councils for promulgation a mechanism to create capital for the management and maintenance of local road systems.

Article 6.- Annual capital allocation for road management and maintenance

Annually, based on the requirements for management and maintenance of the national highway system, the Ministry of Communications and Transport shall estimate the expenditures and coordinate with the Ministry of Finance in allocating capital for the management and maintenance of the national highway system; based on the requirements for management and maintenance of local road systems, the provincial/municipal Communications and Transport Services (Communications and Public Works Services) shall estimate the expenditures and coordinate with the provincial/municipal Finance Services in allocating capital for the management and maintenance of local road systems according to the provisions of the Law on State Budget.

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MANAGEMENT AND USE OF CAPITAL FOR ROAD MANAGEMENT AND MAINTENANCE

Article 7.- Capital for road management and maintenance shall be used for the following activities:

1. The State management and service activities for land-road traffic, including: organization of the monitoring of technical conditions and management of road works; organization of road traffic; inspection and examination of the protection of road traffic infrastructures; operation of vehicle tonnage-inspecting stations and toll booths; operation of ferries and pontoon bridges with revenues being inadequate to cover regular expenditures; reserve supplies, equipment and facilities for ensuring road traffic; and other State management and service activities for road traffic, permitted by the Prime Minister.

2. The work of road maintenance, including:

a/ Regular maintenance;

b/ Periodical repair (medium-scaled repair and overhaul);

c/ Irregular repair to overcome consequences caused by natural disasters or other reasons.

Article 8.- Plans on the use, allocation, payment and settlement of capital for road management and maintenance

Annually, on the basis of the budget estimates assigned by competent authorities, the Ministry of Communications and Transport shall allocate capital for management and maintenance of the national highway system; the provincial/municipal Communications and Transport Services (the Communications and Public Works Services) shall allocate capital for the management and maintenance of local road systems.

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Article 9.- Inspection, examination, commendation, reward, and handling of violations

1. The Ministry of Communications and Transport and the provincial/municipal Communications and Transport Services (the Communications and Public Works Services) shall have to coordinate with finance offices of the same levels in conducting regular and irregular inspection of the generation, management and use of capital for road management and maintenance by concerned units.

2. The examination, commendation, reward, and handling of violations in the management and use of capital for road management and maintenance shall comply with the provisions of the Law on State Budget.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 10.- This Decree takes effect as from January 1, 2004. All previous regulations contrary to this Decree are hereby annulled.

Article 11.- The Ministry of Communications and Transport shall assume the prime responsibility for, and coordinate with the Ministry of Finance in, guiding the implementation of this Decree.

Article 12.- The Minister of Communications and Transport, the Minister of Finance, the presidents of the provincial/municipal People's Committees and the heads of organizations, enterprises and indivi-duals involved in the work of road management and maintenance shall have to implement this Decree.

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ON BEHALF OF THE GOVERNMENT
PRIME MINISTER




Phan Van Khai