Circular No. 01/2014/TT-BKHDT dated January 09, 2014 of the Ministry of Planning and Investment guiding a number of articles of the Government’s Decree No. 38/2013/ND-CP of April 23, 2013, on management and use of official development assistance (ODA) and concessional loans of donors

CIRCULAR

Guiding a number of articles of the Government’s Decree No. 38/2013/ND-CP of April 23, 2013, on management and use of official development assistance (ODA) and concessional loans of donors[1]

Pursuant to the Government’s Decree No. 38/2013/ND-CP of April 23, 2013, on management and use of official development assistance (ODA) and concessional loans of donors;

Pursuant to the Government’s Decree No. 116/2008/ND-CP of November 14, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Planning and Investment;

At the proposal of the Director of the Foreign Economic Relations Department;

The Minister of Planning and Investment promulgates the Circular guiding a number of articles of the Government’s Decree No. 38/2013/ND-CP of April 23, 2013, on management and use of official development assistance (ODA) and concessional loans of donors.

Chapter I

GENERAL PROVISIONS

Article1.Scope of regulation

This Circular guides a number of articles of the Government’s Decree No. 38/2013/ND-CP of April 23, 2013, on management and use of official development assistance (ODA) and concessional loans of donors (below referred to as Decree No. 38/2013/ND-CP) as prescribed in Clause 1, Article 70 of Decree No. 38/2013/ND-CP.

Article2.Donors of ODA and concessional loans

Donors of ODA and concessional loans include:

1. Bilateral donors:

The governments of Ireland, the United Kingdom, India, Austria, Poland, Belgium, Canada, Kuwait, Denmark, Germany, the Netherlands, the Republic of Korea, Hungary, Italy, Luxembourg, Malaysia, the United States, Norway, Japan, New Zealand, Australia, Finland, France, Czech, Spain, Thailand, Sweden, Switzerland, China, Singapore, and India.

2. Multilateral donors:

a/ International financial institutions and funds:

The World Bank (WB), the International Monetary Fund (IMF), the Asian Development Bank (ADB), the Organization of Petroleum Exporting Countries (OPEC) Fund for International Development (OFID), the Kuwait Fund, the Arab Investment Fund, the Nordic Development Fund (NDF), and the Nordic Investment Bank (NIB);

b/ International and intergovernmental organizations:

The European Union (EU), the United Nations High Commissioner for Refugees (UNHCR), the Joint United Nations Programs on HIV/AIDS (UNAIDS), the United Nations Development Program (UNDP), the United Nations Environment Program (UNEP), the United Nations Human Settlements Program (UN-HABITAT), the United Nations Volunteers Program (UNV), the United Nations Entity for Gender Equality and Empowerment of Women (UN Women), the United Nations Conference on Trade and Development (UNCTAD), the United Nations Educational, Scientific and Cultural Organization (UNESCO), the Food and Agriculture Organization of the United Nations (FAO), the International Labor Organization (ILO), the World Health Organization (WHO), the International Organization for Migration (IOM), the United Nations Industrial Development Organization (UNIDO), the United Nations Children’s Fund (UNICEF), the United Nations Population Fund (UNFPA), the International Fund for Agricultural Development (IFAD), the Global Environment Facility (GEF), the United Nations Capital Development Fund (UNCDF), the Global Fund to Fight AIDS, Tuberculosis and Malaria, the International Trade Center (ITC), the United Nations Office on Drugs and Crime (UNODC).

3. Other donors providing ODA and concessional loans for the State and the Government of the Socialist Republic of Vietnam.

Article3.Management and use of non-project aid

1. Non-project aid includes:

a/ Separate aid amounts which do not constitute a specific project and are provided in cash or in kind, or in the form of goods purchase, provision of specialists or conference, seminar, training, research or survey activities;

b/ Emergency aid amounts for remedy of consequences in emergency cases such as natural disasters, epidemics or other calamities which last 3 months at most from the time of occurrence of an emergency case.

2. The management and use of non-project aid are applied as for programs and projects under Decree No. 38/2013/ND-CP and this Circular, except the process and contents of separate appraisal provided in Clause 4, Article 12 of this Circular.

Article4.The private sector’s access to ODA capital and concessional loans under Clause 1, Article 9 of Decree No. 38/2013/ND-CP

1. For the case specified at Point a, Clause 1, Article 9 of Decree No. 38/2013/ND-CP:

A project owner of the private sector shall send a dossier of application for a loan to the domestic financial or credit institution according to this institution’s on-lending regulations for activities in conformity with the treaties on such funding source and in compliance with the lending process of the financial or credit institution.

Domestic financial and credit institutions shall consider lending in accordance with the current law on on-lending of the Government’s foreign loans.

2. For participation in programs and projects in the fields prioritized for ODA capital and concessional loans of the Government through borrowing from the state budget under Point b, Clause 1, Article 9 of Decree No. 38/2013/ND-CP:

To comply with regulations on on-lending of the Government’s foreign loans and other current provisions of law.

3. For the case specified at Point c, Clause 1, Article 9 of Decree No. 38/2013/ND-CP:

Project owners of the private sector shall propose and implement programs and projects under the current law on investment in the form of public-private partnership.

4. For the case specified at Point d, Clause 1, Article 9 of Decree No. 38/2013/ND-CP:

a/ For programs and projects in the phase of making the funding list:

The managing agency proposing programs or projects with the objective of supporting the private sector shall notify organizations and units of the private sector with demands in line with such objective of those programs or projects to  send component project proposals (for umbrella programs or projects) or components of the programs or projects which these organizations and units will implement. The managing agency shall then summarize and select component project proposals or components for making program or project proposals, and shall carry out subsequent procedures in accordance with Decree No. 38/2013/ND-CP and this Circular;

b/ For programs and projects for which specific treaties on ODA and concessional loans have been signed:

For programs and projects with identified participating organizations and units from the private sector, the agency managing those programs or projects shall notify those organizations and units to participate in the programs or projects under the signed specific treaties on ODA and concessional loans.

For programs and projects with unidentified participating organizations and units from the private sector, the agency managing those programs or projects shall notify organizations and units from the private sector with demands in line with the private sector-supporting objective of those programs or projects to send official requests for participation in those programs or projects together with required documents. The agency managing the programs or projects shall decide on organizations and units from the private sector to participate in those programs or projects in conformity with the signed specific treaties on ODA and concessional loans.

Chapter II

MAKING AND APPROVAL OF THE FUNDING LIST

Article5.Making and approval of the funding list under Article 13 of Decree No. 38/2013/ND-CP

1. Based on cooperation orientations and prioritized fields of the Government and donors for each period notified by the Ministry of Planning and Investment and their demands for raising and use of ODA funds and concessional loans, managing agencies shall send to the Ministry of Planning and Investment official requests for funding enclosed with program or project proposals according to the form provided in Appendix Ia or non-project aid proposals according to the form provided in Appendix Ib to this Circular(not translated)(below referred to as proposal). A proposal must be made in 8 copies in two languages (Vietnamese and English) affixed with the seal of the managing agency.

2. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Finance and related agencies in, considering and discussing with donors to select suitable proposals on the basis of:

a/ Prioritized fields and bases for raising ODA and concessional loans under Articles 7 and 11 of Decree No. 38/2013/ND-CP;

b/ Level of priority in the cooperation with each donors in each period.

3. After selecting suitable proposals, the Ministry of Planning and Investment shall notify managing agencies and donors to coordinate in making program or project outlines according to the form provided in Appendix IIa or making non-project aid outlines according to the form provided in Appendix IIb to of Decree No. 38/2013/ND-CP (below referred to as outline).

For an umbrella program or project, its managing agency shall coordinate with agencies managing component projects in formulating an outline according to the form provided in Appendix IIa to of Decree No. 38/2013/ND-CP, which must specify the powers and obligations of the agency managing the umbrella program or project as the focal point for coordinating and organizing common activities of the umbrella program or project; and the powers and obligations of agencies managing component projects playing the role of coordinating with the agency managing the umbrella program or project and taking the main responsibility for component projects they manage and implement.

The outline of an umbrella program or project must cover:

a/ Contents of component projects, including names of projects, managing agencies and project owners, major targets and outcomes, maximum implementation time, budget limits, domestic sources and financial mechanism, earlier implemented activities (if any);

b/ Coordination method, mechanism for management and implementation of the umbrella program or project and component projects.

4. For a funding list to be approved by the Prime Minister under Clause 1, Article 14 of Decree No. 38/2013/ND-CP:

a/ The managing agency shall send to the Ministry of Planning and Investment a dossier which comprises:

- An official letter requesting the Ministry of Planning and Investment to propose the Prime Minister to approve the funding list;

- The program or project or non-project aid outline, made in 8 copies in two languages (Vietnamese and English) affixed with the managing agency’s seal;

- Documents on the donors’ capability to arrange ODA capital and concessional loans as provided in Clause 6 of this Article. Documents in foreign languages must be accompanied with Vietnamese translations.

b/ The process of making and approving the funding list is prescribed in with Clause 3, Article 13 of Decree No. 38/2013/ND-CP.

5. For a funding list to be approved by the managing agency under Clause 2, Article 14 of Decree No. 38/2013/ND-CP:

a/ The managing agency shall send to the Ministry of Planning and Investment, the Ministry of Finance and related agencies a dossier which comprises:

- The program or project or non-project aid outline, made in 8 copies in two languages (Vietnamese and English) affixed with the managing agency’s seal;

- Documents on the donors’ capability to arrange ODA capital and concessional loans as prescribed in Clause 6 of this Article. Documents in foreign languages must be accompanied with Vietnamese translations.

b/ The process of making and approving the funding list is prescribed in Clause 4, Article 13 of Decree No. 38/2013/ND-CP.

6. Documents on the donors’ capability to arrange ODA capital and concessional loans include one of the following:

a/ Documents on development cooperation programs and national cooperation strategies of donors, which list programs and projects or non-project aid to be considered for funding;

b/ Agreements on funding capability signed between Vietnamese agencies or organizations and authorized representatives of donors;

c/ Official letters of donors notifying their funding commitment or capability to Vietnamese agencies or organizations.

Article6.Making and approval of the funding list in exceptional cases

1. For a donor providing ODA and concessional loans without having a development cooperation program with Vietnam: After proactively learning about policies and prioritized fields of the donor, the managing agency shall send to the Ministry of Planning and Investment a funding request together with a proposal provided in Clause 1, Article 5 of this Circular. The subsequent steps to be taken are defined in Clauses 3 and 4, Article 13 of Decree No. 38/2013/ND-CP, and Clauses 3, 4, 5 and 6, Article 5 of this Circular.

2. For a donor that proactively proposes and reaches agreement with the managing agency on funding a program or project or non-project aid:

a/ The managing agency shall send to the Ministry of Planning and Investment an official request together with a dossier which comprises:

- The program or project or non-project aid outline, made in 8 copies in two languages (Vietnamese and English) affixed with the managing agency’s seal;

- Documents on the donor’s capability to arrange ODA funds and concessional loans under Clause 6, Article 5 of this Circular. Documents in foreign languages must be accompanied with Vietnamese translations.

b/ Based on the managing agency’s official request, within 5 working days, the Ministry of Planning and Investment shall send to the Ministry of Finance and related agencies a written request for comment on the program or project outline;

c/ Within 15 working days after receiving the Ministry of Planning and Investment’s written request for comment, the Ministry of Finance and related agencies shall send their written comments to the Ministry of Planning and Investment;

d/ Within 15 working days after receiving related agencies’ written comments:

- If no improvement of the outline is required: The Ministry of Planning and Investment shall summarize opinions and propose the Prime Minister to approve the funding list or notify the managing agency to approve the funding list according to its competence;

- In case improvement of the outline is required: Within 5 working days after receiving written comments of agencies, the Ministry of Planning and Investment shall notify the managing agency to coordinate with the donor in improving the outline as the basis for consideration and approval of the funding list according to competence.

3. For programs and projects and non-project aid as emergency assistance to remedy natural disaster consequences or prevent and control epidemics or unexpected calamities:

a/ The managing agency shall send to the Ministry of Planning and Investment and related agencies an official letter requesting the Ministry of Planning and Investment to propose the Prime Minister to approve according to the fast-track process the funding list together with the outline and the donor’s official letter;

b/ The fast-track process is applied as follows:

- Within 5 working days after receiving the managing agency’s request, related agencies shall send their written opinions to the Ministry of Planning and Investment. Past this time limit, those failing to give their opinions are regarded as agreeing with the managing agency’s request;

- Within 5 working days after receiving agencies’ opinions, the Ministry of Planning and Investment shall submit a report to the Prime Minister for consideration and decision.

Article7.Contents provided at Points c, d and dd, Clause 1, Article 14 of Decree No. 38/2013/ND-CP on the Prime Minister’s competence to approve the funding list

1. Non-refundable ODA means programs and projects or non-project aid funded with non-refundable ODA.

2. Technical assistance for preparation of programs or projects funded with ODA and concessional loans means technical assistance through programs or projects or non-project aid in order to directly support the preparations for programs or projects funded with ODA and concessional loans, which cover program or project preparation activities and expenses provided in Clause 1, Article 23 of Decree No. 38/2013/ND-CP.

3. Aid for procurement of goods subject to state management means equipment, supplies, materials, bio-chemical preparations and other products banned from import or export or imported or exported under conditions provided and promulgated by the Government or professional agencies of the State according to their competence.

Article8.Earlier implemented activities under Article 17 of Decree No. 38/2013/ND-CP

Based on earlier implemented activities specified in the program or project outline together with the funding list approved by a competent authority, the managing agency and project owner shall carry out the following activities:

1. For establishment of a project management unit provided at Point a, Clause 1, Article 17 of Decree No. 38/2013/ND-CP:

a/ The managing agency shall issue a decision on the project owner under Article 9 of this Circular;

b/ The project owner or the managing agency as the project owner shall establish a project management unit under Article 15 of this Circular. The project management unit shall assist the project owner in the project preparation phase, covering formulation of the program or project document, completion of dossiers for carrying out procedures for appraisal and approval of the program or project, formulation of the resettlement policy framework, preparation of the bidding plan, documents and dossiers, and other tasks assigned by the managing agency and project owner;

c/ After the program or project document is approved by a competent authority, the managing agency or project owner shall consider strengthening the organizational apparatus of the project management unit on the basis of supplementing the program or project management and implementation function and task of the project management unit already established under Point a, Clause 1 of this Article or decide to establish a new project management unit according to the requirements specified in Articles 15 and 16 of this Circular.

2. Activities provided at Point a, Clause 2, Article 17 of Decree No. 38/2013/ND-CP:

For programs and projects involving negotiations on specific treaties on ODA and concessional loans: The managing agency shall coordinate with the agency in charge of negotiation in reaching agreement with the donor on the schedule and contents of the activities specified at Point a, Clause 2, Article 17 of Decree No. 38/2013/ND-CP in the negotiation minutes as the basis for involved parties to implement these activities after completing negotiation.

3. Funds for earlier implemented activities must be arranged from the fund for program or project preparation provided in Article 23 of Decree No. 38/2013/ND-CP, domestic fund for program or project preparation provided in Article 43 of Decree No. 38/2013/ND-CP and other funding sources provided by donors through technical assistance for program or project preparation.

Chapter III

PREPARATION, APPRAISAL AND APPROVAL OF
PROGRAM OR PROJECT DOCUMENTS

Article9.Managing agencies’ issuance of decisions on project owners under Clause 1, Article 20 of Decree No. 38/2013/ND-CP

Based on a competent authority’s decision approving the funding list, within 10 working days, the managing agency shall issue a decision on the project owner with the following principal contents:

1. Name of the program or project or non-project aid;

2. Name of the project owner;

3. Basic information on the project owner;

4. Tasks and powers of the project owner in the preparation, appraisal and approval of the program or project or non-project aid document under Article 21 of Decree No. 38/2013/ND-CP and in the management of programs and projects or non-project aid under Article 38 of Decree No. 38/2013/ND-CP.

Article10.Order of appraisal of program or project documents provided at Point b, Clause 3, Article 25 of Decree No. 38/2013/ND-CP

1. The managing agency shall appoint one of its attached units to act as the focal appraisal agency or unit.

For an umbrella program or project, the agency managing that program or project shall appraise the umbrella program or project document with the participation of agencies managing component projects. After the umbrella program or project document is approved by a competent authority, agencies managing component projects shall appraise component project documents in conformity with the decision approving the umbrella program or project document.

2. Pursuant to Article 26 of Decree No. 38/2013/ND-CP on dossiers for appraisal of program or project documents, the project owner shall submit 8 sets of dossier, including at least 1 original set, to the focal appraisal agency or unit for appraisal. Foreign-language documents must be accompanied with Vietnamese translations.

3. Within 3 working days after receiving a valid dossier, the focal agency or unit shall, through the managing agency, send the dossier for appraisal together with an official letter requesting the Ministry of Planning and Investment, the Ministry of Finance and related agencies to comment on the program or project document. In case the dossier fails to satisfy the requirements specified in Article 26 of Decree No. 38/2013/ND-CP, the focal appraisal agency or unit shall request the project owner to complete and re-send the dossier before conducting appraisal.

4. Within 12 working days after receiving the managing agency’s official letter together with the dossier for appraisal, the consulted agencies specified in Clause 3 of this Article shall send their written appraisal comments on the program or project document to the focal appraisal agency or unit via the managing agency.

5. Within 5 working days after receiving written comments of agencies at the time limit specified in Clause 4 of this Article, the focal appraisal agency or unit shall summarize opinions and make an appraisal report which specifies matters which involved parties agree with and matters on which their opinions are divergent.

In the course of appraisal, the focal appraisal agency or unit shall consider the order, procedures and progress of appraisal by the donor in order to ensure necessary coordination and harmony, and consider contents agreed with the donor and appraisal opinions of the donor or its representative. The focal appraisal agency or unit may request the project owner to explain and supplement the dossier, and when necessary, organize an appraisal conference or meetings to clarify the appraised contents according to regulations.

In case the program or project document fails to meet requirements, the focal appraisal agency or unit shall notify the project owner of the contents to be completed and the deadline for resending the dossier to the former for carrying out subsequent procedures.

6. Based on the appraisal report’s conclusions, the focal appraisal agency or unit shall perform the following tasks:

a/ For program or project documents to be approved by the Prime Minister:

- For program or project documents eligible for approval: The focal appraisal agency or unit shall draft a proposal accompanied with the appraisal report and a draft decision approving the program or project document for the managing agency to submit to the Prime Minister for consideration and decision.

- For program or project documents ineligible for approval: The focal appraisal agency or unit shall report such to the managing agency for coordination with the Ministry of Planning and Investment in proposing the Prime Minister to consider and decide on the exclusion of this program or project from the funding list.

b/ For program or project documents to be approved by managing agencies:

- For program or project documents eligible for approval: The focal appraisal agency or unit shall make a proposal accompanied with the appraisal report and a draft decision approving the program or project document and submit them to the managing agency for consideration and decision.

- For program or project documents ineligible for approval: The focal appraisal agency or unit shall report such to the managing agency for coordination with the Ministry of Planning and Investment in proposing the Prime Minister to consider and decide on the exclusion of this program or project from the funding list to be approved by the Prime Minister or for the managing agency to decide on the exclusion of this program or project from the funding list according to its competence.

Article11.Principles of appraisal of program or project documents under Point b, Clause 3, Article 25 of Decree No. 38/2013/ND-CP

1. The appraisal of a program or project document must review the conformity with the outline and the compatibility of contents of the program or project or non-project aid document with those of the competent authority’s decision approving the funding list under Article 18 of Decree No. 38/2013/ND-CP. In case there are changes compared to the contents of the decision approving the funding list, the managing agency shall comply with Article 19 of Decree No. 38/2013/ND-CP.

2. For programs and projects comprising technical assistance and investment components, in addition to the contents to be appraised under Article 12 of this Circular for the technical assistance component, the following contents must be appraised for the investment component:

a/ The reasonability of investment size, technology plan and quality standards;

b/ The feasibility of the following elements (if any):

- Plans on project site and land use; mechanism for exploitation and use of natural resources of the country;

- Base design plan;

- Ecological and environmental protection solutions, resettlement plan; and solutions to social problems, of the project;

-  Matters related to national defense and security; and prevention and control of fire and explosion.

Article12.Contents of appraisal of program or project documents under Clause 2, Article 25 of Decree No. 38/2013/ND-CP

1. Contents of appraisal of technical assistance project documents:

Based on the dossier for appraisal of the technical assistance project document provided in Article 26 of Decree No. 38/2013/ND-CP, in the course of appraisal, the following contents must be clarified:

a/ The project’s reasonability in terms of:

- Its justification;

- Its targets against priority policies at national, ministerial, sectoral and local levels;

- Expected outcome or products against the project’s targets;

- Each part and its specific activities to create the outcome or output product;

- Target beneficiaries;

- The project’s budget allocation structure (ODA, non-refundable aid, domestic fund) for activities, including domestic and international consultants, domestic and overseas training, equipment and supplies, management and other expenses.

b/ The project’s feasibility in terms of:

- Inputs (finance, equipment, specialists and other elements) of the entire project and each activity;

- Size and level of assurance of funding of the project (ODA, non-refundable aid, domestic fund), domestic financial mechanism applicable to the project;

- Duration of implementation;

- Implementation solutions, including earlier implemented activities (if any);

- Organization and mechanism for management and implementation of the project (including financial management mechanism, coordination mechanism);

- The Vietnamese party’s capacity to satisfy the donor’s conditions;

- Plan and measures to monitor, evaluate and promote the project implementation;

- The project’s impacts;

- Risks and risk prevention measures.

c/ The project’s sustainability in terms of:

- Elements necessary to ensure promotion of the project’s impacts after its completion;

- Commitments or conditions of the donor and Vietnamese party to guarantee the project’s sustainability.

2. Contents of appraisal of program documents

Contents of appraisal of program documents are as provided in Clause 1 of this Article. In addition, it is required to clarify the connection and coordination mechanism between different sectors, fields, territories and subjects in order to achieve the targets and results of the program.

3. Contents of appraisal of documents of umbrella programs or projects and component projects

Contents of appraisal of documents of umbrella programs or projects and component projects are as provided in Clause 1 of this Article. In addition, the reasonability and feasibility of the following contents must be assessed:

a/ The relation between main activities of the umbrella program or project and main activities of each component project;

b/ The capital allocation structure (ODA, concessional loans, domestic fund) of the umbrella program or project and component projects;

c/ Methods of implementation and management of the umbrella program or project.

4. Contents and process of appraisal of non-project aid

a/ For non-project aid equivalent to under USD 20,000, the managing agency shall not conduct appraisal and decide to approve such aid on the basis of the competent authority’s decision approving the funding list;

b/ For non-project aid equivalent to USD 20,000 or higher, the appraisal of the non-project aid document must comply with Articles 10 and 11 of this Circular. The dossier for appraisal is provided in Article 26 of Decree No. 38/2013/ND-CP, in which the non-project aid document must be made on the basis of materializing the contents stated in the outline of the non-project aid on the approved funding list. Contents of appraisal are as provided in Article 12 of this Circular. Contents and process of appraisal of non-project aid which only includes or involves investment activities must comply with Point a, Clause 3, Article 25 of Decree No. 38/2013/ND-CP.

Article13.Approval of program or project documents under Clauses 2 and 3, Article 27 of Decree No. 38/2013/ND-CP

1. After conducting appraisal, the focal appraisal agency or unit shall send an appraisal report to the managing agency for submission to a competent authority for consideration and approval of the program or project document under Clause 2, Article 27 of Decree No. 38/2013/ND-CP.

2. Within 5 working days after a competent authority approves the program or project document, the managing agency shall notify the donor and project owner of the approval result and concurrently send to the Ministry of Planning and Investment, the Ministry of Finance and related agencies the approval decision (the original or a notarized copy) together with the approved program or project document appended with the managing agency’s seal on every two adjoining pages. For umbrella programs and projects, their managing agencies and agencies managing component projects shall notify one another of the approval result.

Chapter IV

MANAGEMENT OF IMPLEMENTATION OF
PROGRAMS AND PROJECTS

Article14.Forms of management of programs and projects under Article 36 of Decree No. 38/2013/ND-CP

1. In case the managing agency or project owner directly manages the program or project under Clauses 1 and 2, Article 36 of Decree No. 38/2013/ND-CP:

a/ In case of establishment of a project management unit, the project owner or managing agency acting as the project owner shall issue a decision to establish a project management unit under Article 39 of Decree No. 38/2013/ND-CP;

b/ In case of non-establishment of a project management unit, the project owner or managing agency acting as the project owner shall use the existing apparatus to directly manage the program or project implementation under Article 42 of Decree No. 38/2013/ND-CP;

c/ In case the managing agency acts as the project owner, the managing agency shall issue a document clearly defining its tasks and powers as the managing agency and as the project owner in managing and implementing the program or project in order to ensure objectivity and accountability.

2. In case of hiring a consultancy organization to manage the program or project under Clause 3, Article 36 of Decree No. 38/2013/ND-CP:

a/ On the basis of the form of hiring a consultancy organization for project management stated in the approved program or project document, the project owner shall hire a consultancy organization to perform the tasks of the project management unit or to manage part of the program or project;

b/ The selection and signing of a contract to hire a consultancy organization for project management must comply with current law. A contract on hiring a consultancy organization for project management must clearly state the scope of work and contents of management; and the responsibilities and powers of the consultancy organization and project owner;

c/ When hiring a consultancy organization for project management, the project owner shall still use its own professional units or appoint a focal point for examining and supervising the consultancy organization in performing the contract, and take final responsibility for the project management, expenses, quality and implementation progress of the project, and take joint responsibility for violations committed by the project-managing consultancy organization.

Article15.Establishment of project management units under Article 39 of Decree No. 38/2013/ND-CP

1. Within 30 working days after a competent authority approves the program or project document under Clause 1, Article 39 of Decree No. 38/2013/ND-CP, pursuant to the decision on the project owner provided in Article 9 of this Circular, the project owner shall issue a decision to establish a project management unit according to the form provided in Appendix II to this Circular(not translated).

The establishment of a project management unit must take into account the possibility to use professional project management units or existing project management units of the project owner in order to improve quality and reduce management expenses through using the qualifications and experiences of project management officers.

2. Within 15 working days after signing a decision to establish a project management unit under Clause 4, Article 39 of Decree No. 38/2013/ND-CP, pursuant to the decision on the project owner provided in Article 9 of this Circular, the project owner shall issue the regulation on organization and operation of the project management unit at the proposal of the project management unit director according to the form provided in Appendix III to this Circular(not translated).

Within 5 working days after signing the decision to establish the project management unit, the agency establishing the project management unit shall send notarized copies of this decision to the Ministry of Planning and Investment, the Ministry of Finance, other related agencies and the donor for coordinated management and implementation of the program or project.

3. Organizational structure and personnel of a project management unit:

a/ Based on contents, size, nature, scope of operation and mode of organization of management for program or project implementation, the project management unit director shall propose the managing agency or project owner to decide on the project management unit’s organizational structure which may include administrative, personnel and training, planning, bidding and finance sections as specified in the regulation on organization and operation of the project management unit. For investment projects, sections for ground clearance and design and construction supervision may be additionally established;

b/ Key titles of a project management unit include: director, deputy director (if any), chief accountant or person responsible for accounting of the project management unit appointed under the decision establishing the project management unit, of whom the director and chief accountant or person responsible for accounting of the project management unit must be from the Vietnamese party. Other titles of the project management unit shall be selected, appointed or relieved from duty by the project management unit director. The functions, tasks, powers and treatment policies for holders of these titles must be specified and notified to the managing agency and involved parties;

c/ Basic requirements for the organization and personnel of a project management unit:

- The project management unit must have an appropriate organizational structure and sufficient personnel with relevant qualifications and experiences to ensure effective and sustainable management of the program or project implementation;

- The functions, tasks, responsibilities and powers of each unit (if any); the work relation between units must be clearly specified in the regulation on organization and operation of the project management unit.

In case officers of the project management unit are transferred from other agencies and units, such transfer must be agreed in writing by these agencies and units.

The selection, hiring and recruitment of outside persons must be based on the approved program or project document and comply with current law.

4. Seal and account of the project management unit:

The project management unit may have its own seal in accordance with law or use the seal of the managing agency or project owner according to the agency’s regulations to serve the management and implementation of the program or project.

The project management unit may open program or project accounts at the State Treasury and commercial banks in accordance with law and the specific treaty on ODA and concessional loans signed with the donor.

5. Funds for operation of the project management unit:

Funds for the operation of the project management unit shall be taken from the fund for program and project preparation provided in Article 23 of Decree No. 38/2013/ND-CP, domestic fund for program and project preparation and implementation provided in Article 43 of Decree No. 38/2013/ND-CP or funds from ODA loans and concessional loans under the specific treaty on ODA and concessional loans signed with the donor.

6. Management and use of assets assigned by the project owner to the project management unit for program or project management and implementation:

a/ Assets assigned by the project owner to the project management unit for the program or project management and implementation must be used economically and effectively for proper purposes and subjects in accordance with law and the specific treaty on ODA and concessional loans signed with the donor;

b/ In case consultancy units and contractors deliver, donate or leave assets to the project management unit, the latter shall make a written request for the project owner’s permission to manage and use those assets during the program or project implementation and hand them over to the project owner after the program or project completion.

7. Program or project completion and dissolution of the project management unit:

a/ The time of ODA program or project completion is provided in the specific treaty on ODA and concessional loans signed with the donor.

Within 6 months after completing the program or project, the project management unit shall send to the project owner a final report and settlement report on the program or project for the latter to submit to the managing agency and shall concurrently hand over assigned assets to the project owner in accordance with law.

After the final report and settlement report on the program or project are approved by a competent authority and the handover of assets to the project owner is completed, the project owner or managing agency as the project owner shall issue a decision on completion of the program or project and dissolution of the project management unit.

b/ In case the above work cannot be completed within the prescribed time limit, based on the project management unit’s written explanation and the managing agency’s consent, the project owner shall issue a document allowing an extension of 6 months at most for the project management unit to finish incomplete work and assure necessary funds for the project management unit to operate during the extension;

c/ For a project management unit managing different programs and projects, the project owner shall issue a decision on completion of each specific program or project and concurrently adjust the project management unit’s functions and tasks in accordance with Decree No. 38/2013/ND-CP and this Circular.

Article 16.Tasks and powers of a project management unit under Article 40 of Decree No. 38/2013/ND-CP

1. To assist the project owner in making an overall plan and annual plans on program or project implementation (disbursement, spending and bidding plans, etc.) for submission to competent authorities for approval. These plans must identify resources, implementation schedule, completion time, quality targets and criteria of outcome acceptance for each activity of the program or project as the basis for monitoring and evaluation.

The overall plan on the program or project implementation must be approved by the managing agency at least 3 months before the program or project starts.

Annual plans on the program or project implementation must be elaborated and approved on the basis of agreement with the donor and conformity with the managing agency’s annual plans on fund allocation to the program or project and the program or project implementation progress under the signed specific treaty on ODA and concessional loans.

2. To assist the project owner in the preparation and implementation of the program or project under Point b, Clause 3, Article 40 of Decree No. 38/2013/ND-CP.

3. To carry out bidding activities and assist the project owner in managing contracts under Point c, Clause 3, Article 40 of Decree No. 38/2013/ND-CP.

a/ To perform the bidding task assigned by the project owner in accordance with the law on bidding and the donor’s bidding regulations;

b/ To manage the performance of the obligations stated in the contract signed by a competent person with the contractor (in terms of schedule, volume, quality, labor safety and environmental sanitation). To monitor, supervise and evaluate the contractor’s activities and their outcomes. To promptly settle problems arising in the performance of contracts according to its competence;

c/ To conduct pre-acceptance inspection of products and make payment and settlement in accordance with law.

4. To assist the project owner in the disbursement and management of finance and assets of the program or project under Point d, Clause 3, Article 40 of Decree No. 38/2013/ND-CP.

To carry out procedures for disbursement and finance and asset management in accordance with law and the donor’s regulations.

5. To monitor and evaluate the program or project implementation under Point dd, Clause 3, Article 40 of Decree No. 38/2013/ND-CP.

To monitor and evaluate the program or project implementation under Article 55 of Decree No. 38/2013/ND-CP and Article 24 of this Circular.

6. To make preparations for the project owner to conduct pre-acceptance inspection and transfer outcomes of the program or project after completion; to complete audit work and hand over assets of the program or project; to make a final report and settlement report for the program or project under Point e, Clause 3, Article 40 of Decree No. 38/2013/ND-CP, covering:

a/ Preparing for the project owner to conduct pre-acceptance inspection of the program or project and transfer the completed program or project to the receiving unit under regulations for operation and exploitation;

b/ Making a final report and settlement report for the program or project within the time limit provided in Article 49 of Decree No. 38/2013/ND-CP.

7. To perform other tasks assigned by the project owner under Point g, Clause 3, Article 40 of Decree No. 38/2013/ND-CP, including:

a/ Administrative management and coordination function:

- To organize the office and manage the personnel of the project management unit;

- To establish an internal communication system, to collect, classify and store all information and original documents related to the program or project and project management unit in accordance with law;

- To represent the project owner under authorization in civil transactions within the scope of authorization determined in the regulation on organization and operation of the project management unit and in authorization documents;

- To act as the focal point for the project owner and agencies participating in the program or project implementation in contacting the donor on related matters in the course of program or project implementation;

- To act as the focal point for coordinating professional units of the project owner participating in the program or project activities.

b/ Responsibility for transparency and accountability:

- To set up, and organize the implementation of, an internal control mechanism, including control of finance of the program or project;

- To make preparations for the project owner to publicly notify the contents, organization, schedule and budgets of the program or project to direct beneficiaries of the program or project and local administrations, elective bodies and socio-political organizations in the locality of the program or project;

- Within the ambit of its assigned tasks and responsibilities, to provide accurate and truthful information for law enforcement, examination, inspection and audit agencies, donors, mass media agencies and related persons, other than the information restricted from dissemination as prescribed by law.

Article17.Modification of contents of programs and projects during implementation under Article 48 of Decree No. 38/2013/ND-CP

1. For modification of programs and projects leading to changes in the contents of the decision approving the funding list: To comply with Clause 1, Article 48 of Decree No. 38/2013/ND-CP. The procedures for approving modified program or project documents must comply with Clause 4 of this Article.

2. For modification of programs and projects leading to modification and extension of treaties on ODA and concessional loans:

a/ For modification of contents of programs and projects leading to changes in the contents of the decision approving the funding list: To comply with Clause 1 of this Article as a basis for modification and extension of treaties on ODA and concessional loans under Clause 2, Article 48 of Decree No. 38/2013/ND-CP;

b/ For modification without changes in the contents of the decision approving the funding list: Managing agencies shall carry out related procedures for approving modified program or project documents under Clause 4 of this Article as a basis for modification and extension of treaties on ODA and concessional loans under Clause 2, Article 48 of Decree No. 38/2013/ND-CP.

3. For modification of contents of programs and projects without changes in the contents of the decision approving the funding list and without modification and extension of treaties on ODA and concessional loans: Managing agencies shall carry out related procedures for approving modified program or project documents under Clause 4 of this Article.

4. Approval of modified program or project documents

a/ For programs and projects to be approved by the Prime Minister:

- The managing agency shall send to the Ministry of Planning and Investment, the Ministry of Finance and related agencies an official request for comment together with the proposal and reason for modification of the program or project document and the donor’s written agreement;

- On the basis of comments of the Ministry of Planning and Investment, the Ministry of Finance and related agencies, within 10 working days, the managing agency shall propose the Prime Minister to consider and decide on modified contents.

b/ For programs and projects to be approved by managing agencies:

- The managing agency shall send to the Ministry of Planning and Investment, the Ministry of Finance and related agencies an official request for comment together with the proposal and reason for modification of the program or project document and the donor’s written agreement;

- On the basis of comments of the Ministry of Planning and Investment, the Ministry of Finance and related agencies, within 10 working days, the managing agency shall issue a decision on modification of related contents.

Chapter V

ELABORATION AND APPROVAL OF
IMPLEMENTATION PLANS AND FUNDING PLANS OF PROGRAMS AND PROJECTS

Article 18.Elaboration and approval of overall plans for program or project implementation under Clause 2, Article 37 of Decree No. 38/2013/ND-CP

1. An overall plan for program or project implementation shall be elaborated for the whole program or project implementation duration and must cover all components, items, activity groups, resources and expected implementation schedules.

2. Within 30 working days after a specific treaty on ODA and concessional loans is signed, based on the approved program or project document and the specific treaty on ODA and concessional loans, the project owner shall coordinate with the donor in elaborating or reviewing and updating the overall plan for program or project implementation for submission to the managing agency for consideration and approval.

3. For an umbrella program or project, the overall plan must include the overall plans of all component projects. The head of the agency managing the umbrella program or project shall approve the overall plan of the umbrella program or project; heads of agencies managing component projects shall approve overall plans of such component projects.

4. Within 5 working days after approving an overall plan for implementation of a program or project, including umbrella programs and projects, the program- or project-managing agency shall send the approval decision, enclosed with the overall plan for program or project implementation, to the Ministry of Planning and Investment, related agencies and the donor for supervision and evaluation of, and coordination in, the program or project implementation.

Article 19.Elaboration and approval of annual program or project implementation plans under Clause 3, Article 38, and Point 1, Clause 3, Article 40 of Decree No. 38/2013/ND-CP

1. Annual program or project implementation plans shall be elaborated for each year and must include detailed information on contents of project components (including technical assistance and investment components), main items and activities, funding sources, including also domestic capital, and expected implementation schedules.

Annual project or program implementation plans shall serve as a basis for elaboration of quarterly implementation plans and serve the administration, monitoring and evaluation of the program or project implementation and, at the same time, for project owners to elaborate annual capital allocation plans for submission to managing agencies according to regulations on elaboration of annual socio-economic development plans and state budget estimates.

2. On the basis of overall plans for program or project implementation approved by managing agencies and disbursement plans under signed specific treaties on ODA and concessional loans, project management units shall coordinate with donors in elaborating annual program or project implementation according to the form provided in Appendix IV to this Circular (not translated) for submission to project owners for consideration and approval.

3. Within 5 working days after approving an annual program or project implementation plan, the project owner shall send to the managing agency and, through the managing agency, to the Ministry of Investment and Planning, related agencies and the donor the approval decision together with the annual plan to serve the supervision and evaluation of and coordination in the program or project implementation.

Article 20.Elaboration and approval of programs’ or projects’ annual capital allocation plans under Clause 2, Article 37 of Decree No. 38/2013/ND-CP

1. An annual capital allocation plan of a program or project includes a plan on allocation of ODA capital and concessional loans (non-refundable ODA, ODA loans and concessional loans) and a plan on allocation of domestic capital, in which:

a/ The plan on allocation of ODA capital and concessional loans shall be elaborated based on the source of capital construction capital (for investment projects or components), non-business administrative capital (for technical assistance projects or components), budget support and on-lent loans provided by each donor. Such plans shall be elaborated according to the form provided in Appendix Va to this Circular (not translated);

b/ The annual plan on allocation of domestic capital shall be elaborated based on  central budget capital, local budget capital, domestic credit capital, the project owner’s own capital and other sources of domestic capital in accordance with law. Such plans shall be elaborated according to the form provided in Appendix Vb to this Circular (not translated).

2. For programs and projects eligible for allocation of capital from the state budget:

a/ Annually, at the time of elaborating socio-economic development plans and state budget estimates prescribed by the current law, project owners shall send to managing agencies tentative capital allocation plans for the latter to integrate such plans into their annual budget plans. On the basis of annual budget plans of managing agencies, the Ministry of Planning and Investment shall sum up the state budget and coordinate with the Ministry of Finance in submitting it to the Government and the National Assembly for consideration and approval;

b/ The process of assigning annual capital plans to programs and projects must comply with current laws.

3. For programs or projects eligible for capital on-lent from the state budget:

Annually, at the time of elaborating socio-economic development plans and state budget estimates, project owners shall elaborate annual capital allocation plans and send them to managing agencies, the Ministry of Planning and Investment and the Ministry of Finance. Project owners shall balance sufficient domestic capital according to program or project implementation schedules.

4. For programs and projects funded with both allocated and on-lent capital:

Depending on the nature of each program or project component (eligible for allocated or on-lent capital), project owners shall apply the process for elaborating and approving capital allocation plans for their programs or projects corresponding to each component of the programs or projects according to Clause 2 or 3 of this Article.

Chapter VI

PROGRAM AND PROJECT MONITORING AND
EVALUATION

Article 21.Program and project evaluation under Article 52 of Decree No. 38/2013/ND-CP

1. Evaluation of a program or project involves the following stages:

a/ Initial evaluation;

b/ Mid-term evaluation;

c/ Final evaluation;

d/ Impact assessment.

The evaluation of a program or project may go through several or all of the above-stated stages depending on the characteristics of the program or project and requirements of the managing agency or donor. In addition to periodical evaluations, unexpected evaluations may be conducted when necessary.

2. Contents of initial evaluation:

The initial evaluation of a program or project shall be conducted by independent consultants or an independent consultancy organization hired by the project owner or by the project management unit as assigned by the project owner after the program or project implementation starts. An initial evaluation focuses on the following major contents:

a/ Evaluating the project management unit’s preparation for, organization of, and mobilization of resources for, the program or project implementation according to the set targets and plan;

b/ Assessing problems that arise after the program or project document is approved and proposing solutions;

c/ Finding out and proposing measures for dealing with matters arising due to objective causes (changes in the legal environment or requirements for change of implementation schedules or contents of some items so as to suit climatic, geological, customs or population conditions, etc) or subjective causes (capacity and organizational structure of the project owner or project management unit, etc).

Initial evaluation results shall be used to review and update the overall plan for program or project implementation and work out a detailed plan for program and project implementation for the first year.

Within 15 working day after receiving the initial evaluation report from the independent consultants or consultancy organization or project management unit, the project owner shall send such report together with its feedback report to the managing agency and donor, clearly analyzing findings, matters and recommendations stated in the report and specifying solutions, activities to be conducted to meet these recommendations and experiences drawn from the program or project implementation.

For a program or project whose document is approved by the Prime Minister and a group-A program or project, within 15 working days after receiving the project owner’s initial evaluation report, the managing agency shall send such report and its opinions to the Ministry of Planning and Investment and related agencies for monitoring and evaluation on a national scale.

3. Contents of mid-term evaluation:

The mid-term evaluation of a program or project shall be conducted by independent consultants or consultancy organization hired by the project owner in the middle of the program or project implementation duration or at the end of a phase, for multi-phase projects. A mid-term evaluation focuses on the following major contents:

a/ Evaluating the conformity of implementation results with the objectives of the program or project;

b/ Reviewing the work implemented and its quality by the time of evaluation against the program or project implementation plan;

c/ Finding out and assessing problems arising in the course of program or project implementation due to objective causes (changes in the legal environment or requirements for change of implementation schedules or contents of some items so as to suit climatic, geological, customs or population conditions, etc.) or subjective causes (capacity and organizational structure of the project owner or project management unit, etc);

d/ Proposing solutions for ensuring that the program or project is implemented according to the set objectives, schedule and quality requirements in the remaining period or next phase. When necessary, recommending the adjustment of the contents, structure or plan on the use of redundant funds of the program or project.

Within 15 working days after receiving a mid-term evaluation report from the independent consultants or consultancy organization, the project owner shall send such report together with its feedback report to the managing agency and donor, clearly analyzing findings, matters and recommendations stated in the evaluation report and specifying solutions, activities to be conducted to meet these recommendations and experiences drawn from the program or project management and implementation.

For a program or project whose document is approved by the Prime Minister or a group-A program or project, within 15 working days after receiving the project owner’s mid-term evaluation report, the managing agency shall send such report together with its conclusions to the Ministry of Planning and Investment and related agencies for monitoring and evaluation on a national scale.

4. Contents of final evaluation:

The final evaluation of a program or project shall be conducted by independent consultants or consultancy organization hired by the project owner and must be completed within 6 months after the completion date of the program or project prescribed in the relevant specific treaty on ODA and concessional loans. Final evaluation shall be used as a basis for elaboration of the program or project completion report.

The final evaluation focuses on considering and evaluating all stages of the project cycle, including:

a/ Evaluating the preparation work and program or project implementation preparation;

b/ Evaluating program or project implementation results, covering organization of the program or project implementation management; allocation of capital and mobilization of resources for the program or project implementation; activities, outputs and final results of the program or project; and direct and indirect benefits brought about by the program or project to beneficiaries;

c/ Assessing the impacts of the program or project after it is completed, including economic, social, environmental, technical, technological and human resource development impacts;

d/ Assessing the sustainability of the program or project and assurance factors;

dd/ Drawing lessons from the preparation, implementation preparation and implementation of the program or project;

e/ Putting forward necessary recommendations for ensuring the effectiveness of the program or project.

Within 15 working days after receiving a final evaluation report from the independent consultants or consultancy organization, the project owner shall send such report and its feedback report to the managing agency and donor.

For a program or project whose document is approved by the Prime Minister or a group-A program or project, within 15 working days after receiving the project owner’s final evaluation report, the managing agency shall send such report together with its conclusions to the Ministry of Planning and Investment and related agencies for monitoring and evaluation on a national scale.

5. Impact assessment (post-project evaluation):

On the basis of the annual plan on program or project impact assessment assigned by the Ministry of Planning and Investment, the managing agency shall, according to its competence, hire independent consultants or independent consultancy organization to conduct the program or project impact assessment. For a program or project whose document is approved by the Prime Minister, the impact assessment shall be conducted by an independent consultancy agency selected by the Prime Minister or by the Ministry of Planning and Investment under the Prime Minister’s authorization.

The impact assessment of a program or project shall be conducted within 3 yeas after the program or project is put into operation and use and focus on the following major issues:

a/ The actual economic and technical status of the program or project in the course of operation and use;

b/ The program’s or project’s economic, political and social impacts;

c/ The program’s or projects’ impacts on the ecological environment;

d/ The program’s or project’s sustainability;

dd/ Experiences drawn from the stages of designing, implementing, managing and operating the program or project.

For a group-A program or project, within 15 working days after the impact assessment is completed, the managing agency shall send the impact assessment report made by the independent consultants or consultancy organization together with its feedback report to the Ministry of Planning and Investment and related agencies to serve aid efficiency evaluation on a national scale.

For a program or project whose document is approved by the Prime Minister, within 15 working days after the impact assessment is completed, the Ministry of Planning and Investment shall submit the report on impact assessment results to the Prime Minister on the basis of the independent consultancy organization’s impact evaluation report and the project owner’s feedback report, .

6. Contents of unexpected evaluation:

An unexpected evaluation shall be conducted upon occurrence of problems or difficulties unexpectedly arising in the course of  program or project implementation. An unexpected evaluation focuses on clarifying the following issues:

a/ Identifying the status and characteristics of unexpected problems;

b/ Assessing the effects of unexpected problems on the program or project implementation and possibility to fulfill the set targets and the seriousness of such effects;

c/ Proposing measures, agencies and time limits for dealing with the problems.

The managing agency shall assume the prime responsibility for, and coordinate with related agencies and donors in, forming an unexpected evaluation team. Unexpected evaluation results shall serve as a basis for the managing agency to make timely intervention and take necessary handling measures so as to prevent the program or project from failure. In case handling measures fall beyond its competence, the managing agency shall submit them together with the report on unexpected evaluation results to related state management agencies or the Prime Minister for consideration and decision according to the latter’s competence.

Article 22.Responsibilities of managing agencies for monitoring and evaluation work prescribed in Article 53 of Decree No. 38/2013/ND-CP

1. For monitoring work, managing agencies have the following major responsibilities:

a/ To examine the completeness, updatedness and accuracy of follow-up information on programs and projects provided by project owners and the compliance with the regime of reporting on program or project implementation prescribed Article 57 of Decree No. 38/2013/ND-CP;

b/ To comply with the reporting regime prescribed in Clause 2, Article 57 of Decree No. 38/2013/ND-CP and Article 27 of this Circular;

c/ To supervise changes against program or project implementation plans and capital allocation plans with regard to implementation schedules, capital disbursement, bidding activities, ground clearance, resettlement, environmental protection and social security (if any);

d/ To respond to and promptly settle arising matters according to their competence. For difficulties and problems falling beyond their competence, to report them to competent agencies for prompt handling so as to accelerate the implementation of and capital disbursement for programs or projects;

dd/ To ensure necessary resources (human and financial resources, technical and physical foundations and other related conditions) for program or project monitoring activities. To support and build program or project monitoring capacity for their staff and project owners under their management.

e/ To inspect at least once a year the program or project implementation and the compliance with Vietnamese laws and donors’ program or project management regulations.

2. For evaluation work, managing agencies have the following major responsibilities:

a/ On the basis of the annual program or project impact assessment plans assigned by the Ministry of Planning and Investment to arrange funds and other necessary resources to conduct impact assessment of programs and projects according to their competence. In case donors and managing agencies jointly conduct the assessment, the managing agencies’ impact assessment plans must clearly state the responsibilities and obligations of parties in the course of assessment.

b/ To consider and give conclusions on initial evaluation, mid-term evaluation, final evaluation and unexpected evaluation reports; to give comments on impact assessment reports of ODA programs and projects under their management;

c/ To consider and approve program or project completion reports submitted by project owners and send such reports to the Ministry of Planning and Investment, related agencies and donors.

Article 23.Responsibilities of project owners for monitoring and evaluation work prescribed in Article 54 of Decree No. 38/2013/ND-CP

1. For monitoring work, project owners have the following responsibilities:

a/ To arrange necessary resources to ensure follow-up activities of project management units;

b/ To direct, supervise and examine the completeness, updatedness and accuracy of follow-up information on ODA programs and projects provided by project management units;

c/ To comply with the reporting regime prescribed in Clause 1, Article 57 of Decree No. 38/2013/ND-CP and Article 26 of this Circular;

d/ To respond to and promptly handle matters arising in the course of implementation of ODA programs and projects reported by project management units. For difficulties and problems falling beyond their competence, to report them to managing agencies for prompt handling so as to accelerate the implementation of and capital disbursement for programs and projects;

dd/ To prepare the contents and necessary conditions serving annual periodical monitoring by managing agencies;

e/ To examine project management units’ compliance with Vietnamese laws and donors’ program and project management regulations.

2. For evaluation work, project owners have the following responsibilities:

a/ To approve evaluation plans and arrange funds and other necessary resources for evaluation work according to their competence;

b/ To assume the prime responsibility for, and coordinate with donors in, organizing initial evaluation, mid-term evaluation and final evaluation; to coordinate with managing agencies, related agencies and donors in conducting impact assessment and unexpected evaluation of programs and projects;

c/ To elaborate and submit to managing agencies program or project closure reports.

Article 24.Responsibilities of project management units for implementation monitoring and evaluation work prescribed in Article 55 of Decree No. 38/2013/ND-CP

1. For implementation monitoring work, project management units have the following responsibilities:

a/ To monitor, and update information on, program and project implementation, covering implementation schedules and volume, quality, costs and changes;

b/ To assist project owners in complying with the reporting regime prescribed in Clause 1, Article 57 of Decree No. 38/2013/ND-CP and Article 26 of this Circular;

c/ To monitor, and update information on, program and project management, ensuring compliance with Vietnamese laws and donors’ program and project management regulations;

d/ To assist project owners in preparing contents and necessary conditions to serve annual periodical evaluation by managing agencies;

dd/ To monitor, and update information on, processing of and respond to information, covering reporting of information, processing of reported information, and settlement of difficulties and problems by project owners, managing agencies, competent agencies and donors.

2. For evaluation work, project management units have the following major responsibilities:

a/ To make program or project evaluation plans for submission to project owners for approval;

b/ To assist project owners in conducting initial evaluation, mid-term evaluation and final evaluation; to assist project owners in coordinating with managing agencies in conducting unexpected evaluation of programs and projects;

c/ To elaborate program and project completion reports for submission to project owners on the basis of final evaluation reports according to Form No. V-GSDG 5 on the model outline of program or project completion report provided in Appendix V to this Circular (not translated).

Article 25.Responsibilities of the Ministry of Planning and Investment for monitoring and evaluation work specified in Article 56 of Decree No. 38/2013/ND-CP

1. For monitoring work, the Ministry of Planning and Investment has the following major responsibilities:

a/ To establish and operate a supervision system at the national level and arrange necessary resources for this work;

b/ To elaborate annual supervision plans at the national level on the basis of monitoring reports of managing agencies and results of donors meetings held to review the implementation of the program and project list;

c/ To comply with the reporting regime prescribed in Clause 3, Article 57 of Decree No. 38/2013/ND-CP and Clause 1, Article 28 of this Circular; to supervise the compliance with the regime of reporting on ODA and concessional loans at different levels and make periodical reports to the Prime Minister on this work;

d/ To promptly settle difficulties and problems reported by project owners, managing agencies and donors, which fall under its competence; to propose solutions so as to improve the implementation of programs and projects and increase the efficiency of use of ODA and concessional loans;

dd/ To assume the prime responsibility for, and coordinate with the Ministry of Finance, the Ministry of Foreign Affairs and related agencies in supervising the compliance with law and specific treaties on ODA and concessional loans and efficiency of use of these capital sources at different levels;

e/ To summarize and submit to the Prime Minister reports on annual monitoring results at the national level.

2. For evaluation work, the Ministry of Planning and Investment has the following major responsibilities:

a/ To elaborate annual plans on evaluation of ODA and concessional loans at the national level and coordinate with ministries, sectors, localities and sectors in organizing the implementation of such plans;

b/ To coordinate with managing agencies and donors in selecting programs and projects which have been completed and put into use so as to elaborate annual impact assessment plans at the time of elaborating annual socio-economic development plans and state budget estimates;

c/ To organize the impact assessment of national key programs or projects when authorized by the Prime Minister; to coordinate with managing agencies in conducting impact assessment of programs and projects falling under the management of such managing agencies;

d/ To analyze and evaluate the efficiency of use of ODA capital and concessional loans.

Article 26.Regime of reporting on receipt and use of ODA capital and concessional loans applicable to project owners prescribed in Clause 1, Article 57 of Decree No. 38/2013/ND-CP

1. For programs and projects

Project owners shall make program or project implementation reports and send them to managing agencies, the Ministry of Planning and Investment, the Ministry of Finance, related line ministries, provincial-level People’s Committees of localities where the programs or projects are implemented, and donors.

The set of forms of reports to be used by project owners includes the monthly report form No. V-GSDT 1, quarterly report form No. V-GSDT 2, annual report form No. V-GSDT 3 and program or project closure report form No. V-GSDT 4, provided in Appendix V to this Circular (not translated). Project management units shall make and submit above-said reports to project owners for the latter to send them to managing agencies and related agencies.

a/ Monthly reports

Monthly reports are required only for programs and projects approved by the Prime Minister and group-A investment projects.

Within 10 days after the end of a month, project owners shall make a monthly report on program or project implementation according to form No. VI-GSDT 1 provided in Appendix V to this Circular (except for months of making quarterly reports under Point b, of this Clause) and send such report in paper and electronic forms to managing agencies, the Ministry of Planning and Investment, the Ministry of Finance, related line ministries and provincial-level People’s Committees of localities where projects are implemented. Particularly, form No. GSDT 1.1 is required to be filled in and submitted only once at the first reporting month and be re-sent upon any change in the signed specific treaties ODA and concessional loan.

b/ Quarterly reports

Quarterly reports are required for all programs and projects.

Within 15 days after the end of a quarter, project owners shall make a quarterly report on program or project implementation according to form No. VI-GSDT 2 provided in Appendix V to this Circular and send such report in electronic form (particularly forms No. GSDG 2.1 and GSDG 2.2 must be sent in both paper and electronic forms) to managing agencies, the Ministry of Planning and Investment, the Ministry of Finance, related line ministries and provincial-level People’s Committees of localities where projects are implemented, and to donors (reports shall be made in English, unless otherwise agreed upon). Particularly, form No. GSDT 2.1 is required to be filled in submitted only once at the first reporting quarter and be re-sent upon any change in the signed specific treaties on ODA and concessional loans.

Particularly for programs and projects which do not related to compensation, ground clearance, resettlement or environmental protection, forms No. GSDG 2.6 and GSDG 2.7 are not required to be filled in and submitted.

c/ Annual reports

Annual reports are required for all programs and projects.

By October 31 of the subsequent year at the latest, project owners shall make an annual report on program or project implementation according to form No, VI-GSDT 3 provided in Appendix V to this Circular and send it in paper and electronic forms to managing agencies, the Ministry of Planning and Investment, the Ministry of Finance, related line ministries, provincial-level People’s Committees of localities where programs or projects are implemented, and to the donors.

d/ Project completion reports

Project completion reports are required for all programs and projects.

Within 6 months after a program or project is completed, the project owner shall made a project completion report according to form No. VI-GSDT 4 provided in Appendix VI to this Circular and send it in paper and electronic forms to the managing agency, the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Foreign Affairs, related line ministries, the provincial-level People’s Committee of the locality where the project is implemented, and to the donor.

2. For component projects under umbrella programs or projects:

Owners of component projects shall comply with the reporting regime and use the report forms applicable to programs and projects as prescribed in Decree No. 38/2013/ND-CP and Clause 1 of this Article. Reports must be sent to agencies managing component programs and owners of umbrella programs or projects. Umbrella program or project owners shall summarize reports of component projects into reports of umbrella programs or projects and comply with the reporting regime and use report forms as prescribed in Decree No. 38/2013/ND-CP and Clause 1 of this Article.

3. For non-project aid

The reporting regime and forms of report are those applicable to programs and projects prescribed in Decree No. 38/2013/ND-CP and Clause 1 of this Decree.

4. For entities from the private sector having access to ODA and concessional loans

The reporting regime and forms of report applicable to those accessing ODA and concessional loans in different forms provided in Article 9 of Decree No. 38/2013/ND-CP are specified as follows:

a/ For entities from the private sector that borrow capital from the domestic financial and credit institution system through credit programs or projects or credit components of projects funded with ODA capital or concessional loans:  Private-sector project owners shall comply with the reporting regime prescribed in Clause 1 of this Article. Reports shall be sent to lending financial and credit institutions, the Ministry of Planning and Investment and the Ministry of Finance;

b/ For entities participating in programs or projects in the fields in which ODA capital and Government’s concessional loans are prioritized for use in the form of on-lending from the state budget: Private-sector project owners shall comply with the reporting regime prescribed in Clause 1 of this Article. Reports shall be sent to the Ministry of Planning and Investment and the Ministry of Finance;

c/ For entities participating in public-private partnership programs or projects in which the State makes contributions with ODA capital or concessional loans: Private-sector entities shall comply with the reporting regime prescribed in Clause 1 of this Article. Reports shall be sent to the Ministry of Planning and Investment and related agencies;

d/ For entities participating in programs or projects with the objective of supporting the private sector: Private-sector entities shall comply with reporting regime prescribed in Clause 1 of this Article. Reports shall be sent to managing agencies, the Ministry of Planning and Investment and related agencies.

4. Other regulations on the reporting regime and report forms:

a/ In addition to complying with the reporting regime and forms of reports provided in Clauses 1, 2 and 3 of this Article, in the course of program or project implementation, if the signed specific treaties on ODA and concessional loan are amended, supplemented or extended, project owners shall notify such changes to managing agencies, the Ministry of Planning and Investment, the Ministry of Finance, related line ministries and provincial-level People’s Committees of localities where projects are implemented in the next reporting period;

b/ In case specific treaties on ODA and concessional loans contain separate regulations on reporting regimes and report forms, in addition to complying with  Decree No. 38/2013/ND-CP and this Circular, managing agencies shall also comply with the reporting regimes and report forms provided in such treaties.

Article 27.Regime of reporting on receipt and use of ODA and concessional loans applicable to managing agencies prescribed in Clause 2, Article 57 and Decree No. 38/2013/ND-CP

Within 20 days after the end of a quarter, managing agencies shall make a report on mobilization, receipt and use of ODA and concessional loan, and on implementation results of  ODA and concessional loan-funded programs and projects under their management according to Form VI-GSDT 5 provided in Appendix VI to this Circular (not translated) and send such report in paper and electronic forms to the Ministry of Planning and Investment, the Ministry of Finance and the Ministry of Foreign Affairs for summarization according to their assigned functions and tasks.

Article 28.Regime of reporting on receipt and use of ODA capital and concessional loans at the national level prescribed in Clause 3, Article 57 of Decree No. 38/2013/ND-CP

1. The Ministry Planning and Investment shall make biannual and annual reports on mobilization, management and use of ODA and concessional loans at the national level according form VI-GSDT 6 provided in Appendix VI to this Circular (not translated) for submission (in paper form) to the Prime Minister, and notification (in paper and electronic forms) to the Ministry of Finance and related agencies. Biannual reports must be sent before July 31 every year, and annual reports, January 31 of the subsequent year.

2. The Ministry Finance shall make biannual and annual reports on disbursement, withdrawal, payment and repayment of ODA and concessional loans at the national level according form VI-GSDT 7 provided in Appendix VI to this Circular (not translated) for submission (in paper form) to the Prime Minister, and notification (in paper and electronic forms) to the Ministry of Planning and Investment and related agencies. Biannual reports must be sent before July 31 every year, and annual reports, January 31 of the subsequent year.

Article 29.Handling of violations in monitoring and evaluation work

1. Agencies and units are responsible in accordance with law for all consequences arising due to the following violations:

a/ Failing to comply or improperly complying with the provisions on monitoring and evaluation in Decree No. 38/2013/ND-CP and this Circular;

b/ Providing untrue information on the management and use of ODA and concessional loans under their management.

2. Violations of the regime of reporting on receipt and use of ODA and concessional loans are subject to the following handling forms:

a/ Infrequent violation of the reporting regime (failure to submit reports for 2 consecutive reporting periods or for 3 reporting periods): The Ministry of Planning and Investment shall request in writing competent authorities to handle these violators;

b/ Systematic violation of the reporting regime (failure to submit reports for 4 consecutive reporting periods or for 6 reporting periods): The Ministry of Planning and Investment shall report to the Prime Minister these violators and propose the form of warning, including requesting competent authorities not to consider and approve financial assistance-calling lists for new programs and projects proposed by these violators.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 30.Transitional provisions

During the period of transition from the Government’s Decree No. 131/2006/ND-CP of November 9, 2006, promulgating the Regulation on management and use of official development assistance, to Decree No. 38/2013/ND-CP of April 23, 2013, programs, projects and non-project aid are handled as follows:

1. For programs and projects of which the detailed outlines have been submitted by managing agencies but the funding lists have not yet been approved under Decree No. 131/2006/ND-CP, managing agencies shall complete the detailed outlines and proceed with the steps prescribed in Clause 2, Article 6 of this Circular. The approval of funding lists must comply with Decree No. 38/2013/ND-CP.

2. For programs and projects for which decisions approving funding lists have been issued under Decree No. 131/2006/ND-CP and which are undergoing the preparation, implementation preparation or implementation process, if there are changes in the contents of these decisions as prescribed in Article 18 of Decree No. 38/2013/ND-CP, Article 19 of Decree No. 38/2013/ND-CP shall apply.

3. For programs and projects which are implemented under Decree No. 136/2006/ND-CP but show unconformities with Decree No. 38/2013/ND-CP and this Circular, project owners shall report such inconformities to competent authorities for consideration and decision according to their competence. If such matters fall beyond their competence, managing agencies shall report them to the Prime Minister for consideration and decision.

Article 31.Effect

1. This Circular takes effect on February 26, 2014.

2. This Circular replaces the Ministry of Planning and Investment’s Circular No. 04/2007/TT-BKH of July 30, 2007, guiding the implementation of the Regulation on management and use of official development assistance, Circular No. 03/2007/TT-BKH of March 12, 2007, guiding the functions, tasks and organizational structures of ODA-funded program and project management units, and Decision No. 803/2007/QD-BKH of July 30, 2007, promulgating the regime of reporting on implementation of ODA-funded programs and projects.

Article 32.Organization of implementation

Related ministries, sectors, localities, organizations and individuals shall implement this Circular.

Minister of Planning and Investment
BUI QUANG VINH