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On 27 December 2016, the Prime Minister signed the Directive 35/CT-TTg on strengthening  management, effective operation and sustainable use of rural piped water supply schemes.

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Rural water supply schemes is important infrastructure, providing domestic water, contributing to improving the living conditions, people's health, social security, economic development in rural areas. For the past years, the government has focused a lot of resources to develop a network of rural water supply, especially in remote areas and areas with socio - economic difficulties. The protection, use, exploitation efficiency, sustainability link closely to mobilization of resources out of the State budget and together along the GoV for development investment, exploitation of clean water is essential.

Management, use and exploitation of rural piped water supply schemes recently has had positive changes. The GoV. has gradually collected data on the quantity, quality and use status, the changes of schemes for the investment, management, exploitation, establishing records of the schemes and the entities to be authorized scheme’s managers/ owners, started socialization of water supply investment and operation.

However, there are some limitations such as contract liquidation is not finalized or not good, diversified investment funds from various programs, with different phases so the record establishment in some provinces are difficult; the value of the schemes was not identified when handing them over to the enterprises, base on the schemes’ remained status; the unclear mechanism handing over schemes with debt so not attractive for enterprises in taking over the water scheme transferring; the monitoring, cost and profit preparation is not paid proper attention, not correct calculation for water tariff; coordination among related agencies in management, use and exploitation of rural piped water schemes are not closed enough and in some cases, they are not closely coordinated at provincial level.

To strengthen management, improve the efficiency of exploitation and sustainable use of rural piped water supply schemes, the Prime Minister requested:

1. PPCs direct the Department of Agriculture and Rural Development in collaboration with the Departments and agencies, People's Committees at all levels to review and evaluate the implementation of handing over rural water schemes and subsidy mechanisms for water tariff as regulated in Decision 131/2009/QĐ-TTg on 2/11/2009 and Circular 54/2013/TT-BTC on 4/5//2013 specified that:

a. The handed over schemes running well will continued to be managed, operated by the taken over entities.

b. The handed over schemes running not well will be reviewed in term of remained value  with the actual use time; deadline for the review and handing over the rural piped water schemes should be dome before 30/6/2017.

2. MoF in collaboration with MARD and related agencies and PPC adjust the policy on handing over rural piped water schemes as follows:

a. The schemes after being reviewed, identified in item b, article 1 in this Directive will be handed over to the capable entities for management as regulated; handing over group of schemes   in the same area (commune, inter-communes, inter-districts) as planned, not handing over ony individual scheme with advanages, good for operation.

b. Based on the actual local situations, the entities taking over the schemes, possibility to support counterpart budget for water tariff subsidy, PPC decide hơ to hand over schemes, specifically:

- The handing over of water schemes for public service units or Communal People's Committee will be carried out in the form of an agreement or order.

- The handing over of rural piped water schemes to the enterprise shall comply with the procurement method for selection. The selected one will process the payment as regulated in Point b, Section 1 of this Directive as soon as the take-over or payment by installments corresponding to the time remaining practical use of the scheme (this particular condition is included in the bidding documents and contract).

c. PPC balance the provincial budget of NTP if available to subsidy the water tariff in case it is lower than the cost calculated correctly under the law to ensure the legitimate benefit and right of the water supply enterprises ( m3 of water used by the enterprises).

3. The ministries, branches, localities and mass organizations promote education, information and education of legislation on the management, use and exploitation of rural water supply schemes under the scope of their responsibilities, coordinate with agencies of mass communication and popular school organization, education, guide people, students participate in the protection of water supply facilities, water saving and to strictly follow the legal regulation on water supply. 

4. The ministries, GoV agencies, PPC and leaders of water supply schemes are required to implement the Directive .


MOF - the leading agency in collaboration with MARD and PPCs will closely monitor and promote the implementation of this Directive.

Prime Miniser


Nguyen Xuan Phuc

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