Circular No. 04/2001/TT-BKH dated June 05, 2001 of the Ministry of Planning and Investment guiding the implementation of the Prime Minister’s Decision No. 64/2001/QD-TTg dated April 26, 2001 issuing the regulation on the management and use of foreign non-governmental aids

CIRCULAR

GUIDING THE IMPLEMENTATION OF THE PRIME MINISTER’SDECISION No. 64/2001/QD-TTg OF APRIL 26, 2001 ISSUING THE REGULATION ON THEMANAGEMENT AND USE OF FOREIGN NON-GOVERNMENTAL AIDS

Pursuant to the Governments Decree No. 75/CP ofNovember 1, 1995 on the functions, tasks, powers and organizational structureof the Ministry of Planning and Investment;

Pursuant to the Prime Ministers Decision No.64/2001/QD-TTg of April 26, 2001 issuing the Regulation on the management anduse of foreign non-governmental (NGO) aids, hereinafter referred to as NGO AidRegulation;

The Ministry of Planning and Investment herebyguides the implementation of the Prime Ministers Decision No. 64/2001/QD-TTg ofApril 26, 2001 issuing the NGO Aid Regulation for programs and projects asfollows:

I. GENERAL PROVISIONS

1.1. Term interpretation

In the NGO Aid Regulation and in this Circular, a number of terms belowshall be construed as follows:

a/ The "aid-providing party" means subjects providing NGOaids, including:

- Foreign non-governmental organizations.

- Foreign consortiums and companies.

- Foreign universities, research institutes, centers, funds or agencies.

- Associations and friendship societies set up overseas, including thecommunity of overseas Vietnamese.

- Individuals being foreigners, including overseas Vietnamese.

b/ The "Vietnamese party" includes the following agencies andorganizations:

- The agencies attached to the Partys Central Committee.

- The State agencies (the National Assembly’s Office, the Supreme People’sProcuracy, the Supreme People’s Court...).

- The ministries, the ministerial-level agencies, the agencies attachedto the Government.

- The People’s Committees of the provinces and centrally-run cities.

- The political organizations under the Vietnam Fatherland Front.

- The mass organizations, including:

+ The socio-professional organizations.

+ The societies and associations (including their affiliates) operatingnationwide and set up by decisions of the competent authorities.

+ The societies and associations (including their affiliates) operatingin provinces or centrally-run cities and set up by decisions of the presidentsof the People’s Committees of provinces or centrally-run cities.

c/ The "managing agencies" mean the agencies mentioned at Itemb above.

d/ The "program owners" or "project owners"(hereafter referred to as project owners for short) mean organizations assignedto directly manage and use capital sources of the aid-providing party for theimplementation of aid programs or projects according to the approved contents.

II. PREPARATION OF CONTENTS, EVALUATION, RATIFICATION AND SIGNING OFPROGRAMS AND PROJECTS

2.1. Requirements for elaboration of NGO aid program/project documents

a/ All NGO aid programs and projects must have their own drafts for aidmobilization with major contents prescribed in Appendix I to this Circular (notprinted herein).

The drafts of programs/projects shall be used by the managing agenciesto coordinate with the aid-providing party in elaborating the program/projectdocuments.

b/ After the aid-providing party issues a written notice on itscommitment to provide or commitment to consider the provision of aid for aprogram or project, the managing agency shall coordinate with the aid-providingparty in finalizing and reaching agreement on the program/project dossier forevaluation and ratification.

2.2. Evaluation and ratification of programs and projects:

a/ The documents of NGO aid-funded programs and projects mentioned inClause 1, Items a, b and e; Clause 2, Item a, of Article 6 of the NGO AidRegulation must be evaluated and ratified by competent authorities for signingand implementation.

b/ For programs and projects falling under the ratifying competence ofthe Prime Minister as prescribed in Clause 1, Items a, b and e of Article 6 ofthe NGO Aid Regulation, the Ministry of Planning and Investment shall assumethe prime responsibility for evaluation.

c/ For programs and projects falling under the ratifying competence ofthe heads of managing agencies of the Vietnamese party as prescribed in Clause2, Item a of Article 6 of the NGO Aid Regulation, the bodies assuming the primeresponsibility for evaluation shall be decided by the managing agencies.

d/ In the course of evaluation, the unanimous or divergent opinions ofconcerned parties must be reflected in the evaluation report by the bodyassuming the prime responsibility for evaluation.

e/ The concerned agencies participating in evaluation shall be heldresponsible before law for the contents of their opinions on NGO aid programsor projects.

f/ The body assuming the prime responsibility for evaluation shall sumup opinions of the concerned agencies (in writing with its head’s signature)and make the evaluation report. The evaluation report must clarify thefollowing contents:

- The conformity of the program/project with the Government’s priority;

- The program/project’s feasibility regarding: i/ the management andimplementation capability; ii/ the mechanism for coordination in theimplementation process; iii/ the Vietnamese party’s capability to makecontribution, especially the reciprocal capital source;

- The rationality of the program/project’s budget structure for: i/domestic and overseas specialists; ii/ domestic and overseas training; iii/equipment, facilities and supplies; iv/ management expenses and other expenses;

- The aid-providing party’s commitments, prerequisites and other conditions(if any) for the provision of aids; as well as the Vietnamese party’scommitments to implement the program/project;

- The efficiency and sustainability of the program/project after itscompletion;

g/ A valid dossier for evaluation of NGO aid program/project includes:

- The project owner’s written request for evaluation.

- The managing agency head’s written request for document requestingevaluation and ratification of the program/project (applicable to programs andprojects falling under the ratifying competence of the Prime Minister).

- The original program/project documents in the language used by theaid-providing party and the Vietnamese translation thereof already agreed uponby the project owner and the aid-providing party.

- The aid-providing party’s written notice on its commitment to provideaids or commitment to consider aids for the program/project.

- The memorandum of understanding or agreement on NGO aid provisionsigned between representatives of the Vietnamese party and the aid-providing party.

- All written comments of the concerned agencies on the program/project.

- The copy(ies) of the permit(s) granted by the Working Committee forNon-Governmental Organizations to foreign non-governmental organization(s)(according to the Prime Minister’s Decision No. 340/TTg of May 24, 1996). Wheresuch a permit is not available, the managing agency shall have to give clearwritten explanation thereon.

h/ Procedures and time limits for evaluation of programs and projectsunder the Prime Minister’s ratifying competence:

- Within 5 working days after receiving a complete and valid dossier (8sets) from the managing agency, the Ministry of Planning and Investment shallsend documents to the Government’s Office, the Finance Ministry, the Union ofVietnam Friendship Organizations, the Government’s specialized managementbodies and concerned localities, requesting the latter to give their officialopinions on the program/project.

- Within 15 working days after the Ministry of Planning and Investmentissues the said documents, the concerned agencies shall have to send theirofficial written opinions to the Ministry of Planning and Investment. Past thistime limit, if these agencies have no written opinions, they shall be regardedas having agreed to the program/project documents’ contents.

- Within 10 working days after the expiry of the time limit for opinioncontribution by the agencies, depending on the nature, contents and size of theprogram/project, the Ministry of Planning and Investment shall:

+ Sum up opinions and submit them to the Prime Minister forconsideration and decision.

+ Organize the evaluation of the program/project with the participationof such agencies as the Government’s Office, the Finance Ministry, the Union ofVietnam Friendship Organizations as well as concerned ministries, branches andlocalities.

The evaluation results shall be reflected in the evaluation resultreport.

Within 5 working days as from the evaluation date (if theprogram/project needs not to be adjusted) or as from the date of receiving theprogram/project documents already finalized according to conclusions in theevaluation result report (if the program/project needs to be adjusted), theMinistry of Planning and Investment shall submit such program/project to thePrime Minister for consideration and ratification.

In cases where the program/project needs to be adjusted, the managingagency shall have to coordinate with the aid-providing party in adjusting itaccording to conclusions in the evaluation result report. For the adjustmentsuggestions not accepted by the aid-providing party, the managing agency shallhave to notify them in writing to the Ministry of Planning and Investment forfurther reporting to the Prime Minister for decision.

- Within 10 working days after the Prime Minister ratifies theprogram/project, the managing agency shall notify the aid-providing party ofthe ratification result for the signing and implementation of theprogram/project.

- Within 15 working days as from the date of signing, the managingagency shall have to send to the Government’s Office, the Ministry of Planningand Investment, the Finance Ministry and the Union of Vietnam FriendshipOrganizations the program/project documents already signed by representativesof the Vietnamese party and the aid-providing party, and affixed withpage-overlapping stamps.

i/ For programs and projects falling under the ratifying competence ofthe heads of the managing agencies as defined in Clause 2, Item a of Article 6of the NGO Aid Regulation:

- The heads of the managing agencies shall ratify programs and projectswithin their competence and take personal responsibility for their decisions.

- The procedures and time limits for evaluation and ratification ofprograms and projects shall be stipulated and promulgated by the managingagencies.

- For programs and projects implemented in the areas or territorialregions involving national defense, security, religion and ethnic matters,before deciding the ratification thereof, the managing agencies shall have toreach agreement with the concerned agencies such as the Ministry of PublicSecurity, the Ministry of Defense and the Government Commission for ReligiousAffairs. For programs and projects to be implemented by the central agencies inlocalities, before deciding the ratification thereof, such agencies shall haveto consult the provincial-level People’s Committees of the localities where theaid programs and projects shall be implemented. In case of divergent opinions,the authority with ratifying competence shall have to report such to the PrimeMinister for consideration and decision.

- Within 10 working days as from the date of ratification, the managingagency shall notify the aid-providing party of the ratifying decision so as toproceed with the signing and implementation of the program/project.

- Within 15 working days after the signing of the program/projectdocuments, the managing agency shall have to send to the Ministry of Planningand Investment, the Finance Ministry and the Union of Vietnam FriendshipOrganizations the ratifying decision (the original) together with the ratifiedand signed program/project documents, affixed with page-overlapping stamps.

j/ With regard to the aids provided for overcoming post-emergencyconsequences (mentioned in Clause 6 of Article 2 of the NGO Aid Regulation) andimplemented in form of programs or projects, the above-mentioned evaluation andratification order and procedures shall apply.

III. MANAGEMENT OF IMPLEMENTATION OF NGO AID PROGRAMS AND PROJECTS

3.1. Project owners

Owners of projects (including owners of component projects, if any) mustbe defined in the program/project ratifying decisions, issued by the competentauthorities of the Vietnamese party.

3.2. The program/project management board

a/ The managing agency shall issue decision to set up theprogram/project management board (hereafter called the project management boardfor short) right after the program/project documents are ratified by the competentauthority.

b/ The project management board shall represent the project owner, havefull power to exercise, on behalf of the project owner, the delegated powersand perform the assigned tasks, from the commencement till the completion ofthe project, including the final account settlement, pre-acceptance test,hand-over and putting of the project into exploitation and use.

c/ The project management board must have organization and operationregulation to be ratified by the managing agency.

3.3. Adjustment, amendment, supplement of the contents of NGO aidprograms/projects in the course of implementation

a/ In principle, the authority which is competent to ratify aprogram/project shall ratify the adjustments, amendments or supplements theretoin the course of implementation.

b/ For programs and projects ratified by the Prime Minister:

- The following adjustments, amendments or supplements must be submittedto the Prime Minister:

+ Adjustments, amendments or supplements which lead to the alteration ofthe objectives, contents or results of the ratified programs or projects.

+ Adjustments, amendments or supplements which increase the ratifiedtotal capital by more than 10% or less than 10% but more than USD 50,000 (for asingle adjustment, amendment or supplement or progressively for multipleadjustments, amendments or supplements).

- Other adjustments, amendments or supplements shall be approved by theheads of the managing agencies.

The procedures and time limits for evaluation and approval ofadjustments, amendments or supplements to the contents of programs or projectsratified by the Prime Minister shall be stipulated as follows:

* Within 5 working days after receiving a written request enclosed withdetailed exposition from the managing agency, the Ministry of Planning andInvestment shall send a document to the Government’s Office, the FinanceMinistry, the Union of Vietnam Friendship Organizations and the Government’srelevant specialized management agencies, requesting the latter to give theirofficial opinions on the proposed adjustments, amendments or supplements to theprogram or project contents.

* Within 15 working days as from the date the Ministry of Planning andInvestment issues the document, the concerned agencies shall have to send theirofficial written opinions to the Ministry of Planning and Investment. Past thistime limit, if these agencies fail to send their written opinions to theMinistry of Planning and Investment, they shall be regarded as having agreedthereto and the Ministry of Planning and Investment shall make a sum-up to besubmitted to the Prime Minister for consideration and decision.

c/ For programs and projects ratified by the managing agencies:

- Any adjustments, amendments or supplements which make theprograms/projects fall in one of the cases prescribed in Clause 1, Items a, band e of Article 6 of the NGO Aid Regulation must be submitted to the PrimeMinister for consideration and approval.

- Other adjustments, amendments or supplements shall be approved by theheads of the managing agencies. The approval procedures shall be stipulated andpromulgated by the managing agencies.

VI. MONITORING, ASSESSMENT OF NGO AID PROGRAMS AND PROJECTS

4.1. The reports on the implementation of NGO aid programs and projectsshall be made biannually, annually and upon the completion of the programs andprojects as stipulated in Article 20 of the NGO Aid Regulation.

4.2. The Ministry of Planning and Investment shall coordinate with theFinance Ministry in assuming the prime responsibility for preparing thecontents and organizing the annual inspection and supervision, in selectedareas according to the provisions at Clause 1 of Article 21 of the NGO AidRegulation.

V. ORGANIZATION OF IMPLEMENTATION

5.1. The ministers, the heads of the ministerial-level agencies, theheads of the agencies attached to the Government, the presidents of the People’sCommittees of the provinces and centrally-run cities, the president of theUnion of Vietnam Friendship Organizations and the heads of the central bodiesof mass and people’s organizations shall have to implement this Circular.

5.2. This Circular takes effect 15 days after its signing.

In the course of implementation, if any problems arise, the concernedministries, localities and units should report them to the Ministry of Planningand Investment for appropriate supplement and finalization of this Circular.