Circular No. 219/2009/TT-BTC dated November 19, 2009 of the Ministry of Finance prescribing a number of spending norms applicable to official development assistance-funded projects/programs

THE MINISTRY OF FINANCE

Circular No. 219/2009/TT-BTC of November 19, 2009, prescribing a number of spending norms applicable to official development assistance-funded projects/programs

Pursuant to the Government’s Decree No. 60/2003/ND-CP of June 6, 2003, detailing and guiding the implementation of the State Budget Law;

Pursuant to the Government’s Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Government’s Decree No. 131/2006/ND-CP of November 9, 2006, promulgating the Regulation on management and use of official development assistance (ODA);

The Ministry of Finance prescribes a number of spending norms applicable to ODA-funded projects/programs as follows:

Article 1. Scope, subjects and principles of application

1. Scope and subjects of application:

a/ Scope:

This Circular applies to ODA loan projects/programs (which spend foreign loan capital and domestic capital) and non-refundable ODA projects (which spend contributed domestic capital).

For non-refundable ODA projects, the spending of aid capital must comply with the spending norms under donors’ general regulations or the spending norms determined and stated in the donation agreements. If donors have no such general regulations and the donation agreements contain no provisions on the spending norms, the project-managing agencies shall coordinate with donors in formulating the spending norms and reaching agreement with the Ministry of Finance on the implementation thereof. If donors have no regulations on the spending norms and the two sides have not yet reached any agreement on the spending norms, the spending norms prescribed in this Circular may be applied to the projects.

b/ Subjects of application:

This Circular applies to agencies, units and organizations implementing ODA loan and aid projects/programs (which spend foreign loan capital and domestic capital).

2. Principles for application:

a/ The spending norms prescribed in this Circular are maximum levels. Within the limits of norms prescribed in this Circular and within the limits of budgetary funds to be spent on project/program management, directors of ODA project/program management units or ODA project/program investors (if no project management unit is set up) shall decide on specific spending norms applicable to projects and programs (below referred to as projects), ensuring the thrifty and effective implementation of projects.

b/ Directors of project management units and project managers (in case no project management unit is set up) are answerable to the managing agencies for the projects’ expenditures according to current regulations.

Article 2. Salaries and salary-based allowances

Salaries and allowances for ODA project management applicable to full-time or part-time officers of ODA project/program management units set up under decisions of managing agencies for project implementation (below referred to as ODA PMUs for short) are provided as follows:

1. For administrative non-business ODA PMUs and mixed-ODA PMUs carrying out activities of both administrative non-business nature and capital construction nature and/or credit activities:

Cadres, civil servants and public employees on the payrolls of administrative non-business agencies, when being seconded to work on a full-time or part-time basis in ODA PMUs, will be paid by the seconding agencies grade-based salaries and salary-based allowances defined in the Government’s Decree No. 204/2004/ND-CP of December 14, 2004, on salary regimes applicable to cadres, civil servants and public employees and the armed forces and contributions (health insurance and social insurance premiums and trade union dues) according to current state regulations,

If seconding agencies do not pay grade-based salaries, salary-based allowances and contributions as clearly stated in the decisions on seconding of cadres, civil servants and public employees, the ODA PMUs shall pay salaries and salary-based allowances under the Government’s Decree No. 204/2004/ND-CP of December 14, 2004, on salary regimes applicable to cadres, civil servants and public employees and the armed forces and contributions (health insurance and social insurance premiums and trade union dues) according to current state regulations from the project management funds.

2. For capital construction investment ODA PMUs:

Salaries and project management allowances of cadres, civil servants and public employees working on a full-time basis in capital construction investment ODA PMUs set up under decisions of project managers or managing agencies comply with the Prime Minister’s Decision No.198/1999/QD-TTg of September 30, 1999, on salaries of cadres and public employees in capital construction investment project management units, and other relevant documents.

Article 3. ODA project management allowances

1. Cadres, civil servants and public employees on the administrative non-business payrolls, when being seconded to work on a full-time or part-time basis in ODA PMUs, will be paid by ODA PMUs an ODA project management allowance (in addition to the salary and salary-based allowances referred to in Clause 1, Article 2 above), which is at most equal to the grade-based salary paid under the Government’s Decree No.204/2004/ND-CP of December 14, 2004, on salary regimes applicable to cadres, civil servants and public employees and the armed forces currently in force, specifically:

a/ Cadres, civil servants and public employees seconded to work on a full-time basis in ODA PMUs may enjoy the maximum ODA project management allowance equal to 100% of their grade-based salary and salary-based allowance.

b/ Cadres, civil servants and public employees seconded to work on a part-time basis in an ODA PMU may enjoy an ODA project management allowance based on the time they work for the project. If they are assigned to work on a part-time basis in more than one ODA PMU, they may enjoy a part-time ODA project management allowance based on the time they work for each ODA project, but the total allowance for their part-time work in these projects must not exceed 100% of their grade-based salary and salary-based allowance.

The heads of agencies directly managing cadres, civil servants and public employees and the heads of agencies seconding cadres, civil servants and public employees to work in other units on a part-time basis, when issuing the assignment decisions, should determine the percentage of time working on a part-time basis in ODA PMUs, ensuring the rationality between the time for project implementation and the time for performance of their professional tasks at their main offices under the prescribed regimes.

Agencies issuing work assignment decisions must clearly state in such decisions the time for part-time work at each project, which serves as basis for determining the ODA project management allowance level.

c/ In case no project management unit is not set up for ODA programs or projects, but competent agencies issue decisions assigning tasks to implement the projects, cadres and public servants assigned to perform these tasks will enjoy the project management allowance based on the time they participate in the projects as mentioned above.

2. The ODA project management allowance mentioned in Clause 1, Article 3 above is not applicable to capital construction ODA PMUs.

3. Cadres, civil servants and public employees being members of the Project Steering Committees are entitled to an allowance for participation in the Project Steering Committees’ meetings at the maximum level of VND 300,000/member/meeting, depending on the characteristics of each meeting.

4. Cadres, civil servants and public employees working in non-refundable ODA PMUs are not entitled to the ODA project management allowance from the domestic capital source according to this Circular, if they enjoy an allowance from the foreign aid source.

5. For project implementers in project implementation boards/teams/groups at central, provincial, district, communal, village or hamlet level, directly carrying out project activities:

a/ Depending on the complexity and requirements of project tasks, project implementers at all levels may enjoy an ODA project implementation allowance while carrying out each project activity (they will enjoy the allowance only when participating in project activities).

b/ Project managers shall, based on the requirements, workload, implementation duration and complexity of project work, the capabilities, qualifications and skills of cadres assigned to implement the projects, consult the finance agencies of the same level before proposing the project-managing agencies to issue decisions on payment of an  ODA project execution allowance to project implementers at different levels.

c/ The allowance is provided as follows:

- For project implementers at the district, communal, village or hamlet level in mountainous districts and communes, difficulty-hit regions, deep-lying or remote areas specified in the Prime Minister’s Document 705/TTg-KGVX of May 11, 2009, on continued implementation of Resolution 30a/2008/NQ-CP (the list of specific districts is provided in Appendix 1 to this Circular), the maximum allowance level will be equal to 40% of their current grade-based salary, which is calculated by month.

-  For project implementers at different levels in other localities not on the list of difficulty-hit areas under Document No.705/TTg-GGVX (including central, provincial, district, communal, village and hamlet levels), the maximum allowance level is equal to 30% of their current grade-based salary, which is calculated by month.

- If project implementers of different levels do not enjoy salaries from the state budget or work under titles for which grade-based salaries are not prescribed, they shall sign labor contracts and enjoy an allowance not exceeding 40% of the minimum wage level under current regulations.

When issuing decisions on payment of ODA project implementation allowances to project implementers at different levels, the project-managing agencies shall clearly state in such decisions the duration of their participation in project implementation at different levels for use as a basis for calculation of their project implementation allowances.

Article 4. Provisions on wages, salaries and insurance regimes applicable to contractual laborers of ODA PMUs

1. Wages and salaries:

a/ For contractual laborers performing professional jobs in ODA projects (including capital construction ODA and administrative non-business ODA projects), the salary payment principle is that they will be paid salaries equal to those of payroll laborers with corresponding training qualifications, profession and service seniority (already multiplied by an adjustment coefficient applicable to capital construction ODA projects or added with an ODA project management allowance for administrative non-business ODA projects mentioned at Point a, Clause 1, Article 3 above).

b/ For contractual laborers performing simple and non-professional jobs of projects such as drivers, clerks, security guards, janitors…, their remuneration levels can be negotiated in accordance with the Government’s Decree No. 68/2000/ND-CP of November 17, 2000, on the contractual regime applicable to some types of jobs in state administrative agencies, non-business units with the application of an adjustment coefficient of up to 1.5.

2. Insurance regimes:

Health insurance and social insurance regimes for contractual laborers comply with current regulations.

Article 5. Translation and interpretation charge levels

1. Translation:

a/ Translation of documents from a foreign language into Vietnamese: Not exceeding VND 90,000/page of 350 words.

b/ Translation of documents from Vietnamese into a foreign language: Not exceeding VND 100,000/page of 350 words.

2. Interpretation:

a/ Common interpretation: Not exceeding VND 200,000/hour/person, equivalent to no more than VND 1,600,000/day/person working for 8 hours.

b/ Simultaneous interpretation: Not exceeding VND 350,000/hour/person, equivalent to no more than VND 2,800,000/day/person working for 8 hours.

c/ In special cases in which interpretation or translation of special foreign languages and/or difficult contents, which only few people can do, is needed, PMU directors or program/project managers (if no PMU is not set up) may agree and decide on the translation or interpretation charge levels which must not exceed 150% of the levels prescribed in Clauses 1 and 2 above.

The above-said translation and interpretation charge levels only apply to necessary cases in which ODA PMUs must hire translators or interpreters, but not to translators and interpreters salaried by ODA PMUs.

Article 6. Working mission allowance regime

1. Subjects of application: The working mission allowance regime is applicable to ODA PMU members, project officers, guests and consultants who are entitled to working mission allowances covered by the project funds.

2. Principle of application: To apply current state regulations on working mission allowances and conference expenses for state agencies and public non-business units.

Working mission allowances paid to persons on working missions at home include round trip fares, accommodation allowance, lodging rentals in places of arrival for working missions and freights for luggage and working documents carried along (if any).

3. To suit the practical situation, this Circular provides peculiar expense levels for specific expense items as follows:

a/ Round trip fares:

- To apply current state regulations on working mission allowances and conference expenses for state agencies and public non-business units.

- In case of necessity to travel by air, project directors may decide and permit project officers and guest to do so with air fares covered by the project funds.

- To pay expenses for travel in highland, island or border regions where exists no mass transit, no travel invoices and documents and no grounds for determining public transportation fares for calculation of package expense levels according to current regulations.

- In case of travel in inter-branch or inter-agency groups:

+ If group travel is organized, the agency or unit sponsoring the working travel group shall pay round trip fares and freights for luggage and working documents (if any) carried along by group members; if persons sent on working mission do not travel in group but by themselves to the working place, the agency or unit that sends them on working mission shall pay round trip fares and freights for luggage and working documents carried along (if any);

Agencies and units sending their persons on working mission shall pay accommodation allowances and lodging rentals for these persons.

+ If the working travel group-sponsoring agency or unit pays round trip fares, accommodation allowances and lodging rentals for group members from different agencies and units, they shall clearly notify such in the letters of invitation in order to avoid double payment. The working travel group-sponsoring unit shall calculate this funding amounts for preparing expense estimates.

b/ Accommodation allowance:

- The accommodation allowance paid to persons on working mission must not exceed VND 100,000/person/day.

- If the working mission is conducted within a day (travel to and back from the working place on the same day) to a place 10 km or more from the head office (for highland, island, difficult mountainous and deep-lying regions) or 15 km or more (for other regions), ODA PMU directors or project managers (if no PMU is set up) shall base themselves on the above-prescribed accommoda-tion allowance to decide on appropriate specific spending levels which must not exceed VND 70,000/day and must be indicated in the internal expense regulations of the projects.

- Cadres and civil servants sent to perform working missions or tasks at sea or on islands are entitled a maximum accommodation allowance of VND 150,000/person/day actually on working mission.

If the current regulations on working mission allowance provide an accommodation allowance level higher than the above level, the higher level shall be applied.

c/ Payment of lodging rentals in places of arrival: To apply current state regulations on working mission allowances and conference expenses applicable to state agencies and public non-business units.

Article 7. Regimes of spending on conferences, seminars and training courses

1. Application principles:

a/ Conference, seminar and training expenses stated in this Circular apply to conferences on final review or periodical evaluation of ODA project implementation; conferences, seminars and training courses to direct, disseminate and guide project implementation, which must be included in the approved plans on project activities. In case additionally arises an activity, its supplementation to the plan must be approved by the project-managing agency.

b/ Projects organizing national conferences, seminars and training courses must obtain written permission from the investment-managing agencies or heads of the project steering committees, specifically:

- Conferences and seminars: The duration must not exceed 3 days.

- Training: The duration must not exceed 7 days.

c/ All ODA PMUs, when organizing conferences, seminars and training courses, must study and arrange appropriate venues, prepare quality agenda, and select participants and delegates on the principle of efficiency and thrifty spending.

d/ In case of necessity to organize meetings to collect public opinions at village or hamlet level, the project directors or managers (if no PMU is set up) shall consider and decide on such organization within the limits of the approved project management funds.

e/ For activities of professional training and training in specialized areas of each project (example: training and retraining of teachers in educational projects; training in agricultural/forestry/fishery techniques, field seminars in agricultural projects; training and retraining of nurses, physicians and health workers in healthcare projects…), the spending levels under current regulations on spending levels for specialized training and retraining with state budget funds will apply.

2. Specific payment levels:

a/ Payment of travel fares and lodging rentals for participants in conferences, seminars or training courses: To comply with Points a and c, Clause 3, Article 6 of this Circular.

b/ Meal allowances and per diem:

- For conferences, seminars and training course organized in centrally run cities: Organizers, delegates and lecturers will enjoy a meal allowance and per diem not more than VND 100,000/day/person.

- For conferences, seminars and training courses organized in provinces or other cities throughout the country: Organizers, delegates and lecturers will enjoy a meal allowance and per diem of not more than VND 80,000/day/person.

- Organizers, delegates and lecturers in conferences, seminars or training courses who have received the meal allowance and per diem specified at Point b, Clause 2, Article 7 above are not entitled to working mission allowances specified in Article 6 of this Circular.

- For conferences, seminars and trainings organized by ODA PMUs, the organizing committees shall pay 100% of meal allowances and per diem to their members, delegates and lecturers from the project funds. Agencies sending their delegates will not pay accommodation allowances for their officials attending the conferences or seminars. The organizing committees should clearly notify in letters of invitation the delegates to conferences or seminars of the allowance. In special cases which the organizing committees do not pay meal allowances and per diem to delegates, they shall also clearly state such in the letters of invitation.

In case the State increases the minimum salary, heads of agencies or units organizing the meetings may decide to increase the meal allowances and per diem to participants to conferences or seminars as mentioned above in proportion to the minimum wage increase percentage.

c/ Payments for hired lecturers:

For conferences, seminars and training courses with hired lecturers, the payment level for hired lecturers complies with the provisions on payments for hired lecturers in the Ministry of Finance’s Circular No.51/2008/TT-BTC of June 16, 2008, guiding the management and use of funds for training and retraining of state cadres and civil servants, and documents replacing, amending or supplementing this Circular.

The above ceiling level already includes the remuneration for lecturing and compilation of training materials.

In special cases which training or reference materials are specialized, requiring a lot of experience and grey matter, PMU directors or project managers (if no PMU is set up) may sign consultancy contracts for material preparation and printing, and make payment under such contracts.

d/ Stationery: The organizing committees may make payment according to actual expenses, which must not exceed VND 50,000/person/conference, seminar or training course.

e/ Coffee breaks: The organizing committees may make payment according to actual expenses, which must not exceed VND 30,000/person/day at conferences, seminars or training courses held in cities and urban centers of grade I or higher or VND 20,000/person/day at conferences, seminars or training courses organized in other locations.

f/ Other expenses such as those on hiring of meeting halls and equipment, decoration… within the regime of expenses for conferences and seminars shall be paid according to actual expenses as be decided by PMU directors on the basis of thrift and reasonability.

Article 8. Payments for domestic consultants

1. Recruitment of, and payment to, domestic consultants:

a/ The recruitment of, and payment to, domestic consultants comply with current domestic regulations and donors’ regulations on bidding for recruitment of consultants.

b/ In case suitable consultants cannot be recruited by mode of bidding, PMU directors shall, depending on project requirements, consultants’ professional qualifications, academic titles and decrees, service seniority, foreign language skills, performance capability, project scale and geographical areas where consultants are expected to work, opt for the following payment levels for consultancy and propose them to managing ministries, agencies or localities for approval before application.

c/ These payment levels for consultants are package payments, inclusive of social insurance and health insurance premiums and payable taxes under current regulations.

2. Levels of payment for domestic consultants:

a/ Level 1: For consultants with a university diploma and 3 to under 5 years’ experience or a postgraduate diploma and under 3 years’ experience, the maximum payment level is VND 5,400,000/month/person or USD 300 equivalent in VND (depending on the exchange rate at the time of recruitment).

b/ Level 2: For consultants with a university diploma and 5 to under 10 years’ experience or postgraduate diploma and 3 to 5 years’ experience, the maximum payment level is VND 10,800,000/month/person or USD 600 equivalent in VND (depending on the exchange rate at the time of recruitment).

c/ Level 3: For consultants with a university diploma and 10 to under 15 years’ experience or a postgraduate diploma and 5 to 8 years’ experience, the maximum payment level is VND 21,000,000/ month/person or USD 1,200 equivalent in VND (depending on the exchange rate at the time of recruitment).

d/ Level 4: For consultants with a university diploma and 15 years’ experience or a postgraduate diploma and over 8 years’ experience, the maximum payment level is VND 27,000,000/month/person or USD 1,500 equivalent in VND (depending on the exchange rate at the time of recruitment).

e/ Special level: In special cases in which a project requires consultants of high professional qualifications in special and peculiar branches or professions to work in difficulty-hit and remote areas, PMUs may propose the project-managing agencies to decide on higher payments as agreed with consultants.

In case the form of package contract is applied to projects under the Bidding Law, the above payment levels for consultancy will serve as the basis for formulation and approval of contract value estimates.

Article 9. Other regular expenses

Expenses for purchase of stationery, supplies, car petrol and for repair of automobiles and machines in service of professional activities, and communications charges shall be included in annual plans approved by competent authorities, be accompanied with valid documents and must not exceed the estimates or amounts deducted for project management expenses according to current regulations.

Article 10. Organization of implementation

This Circular takes effect 45 days from the date of its signing. It replaces the Ministry of Finance’s Decision No. 61/2006/QD-BTC of November 2, 2006, promulgating a number of spending norms applicable to ODA projects and programs.

In the course of implementation, if the documents referred to in this Circular for application are revised or replaced by new ones, the projects must apply those new documents.

Ministries, ministerial-level agencies, government-attached agencies, other central agencies and provincial-level People’s Committees shall direct and guide their units and ODA projects to implement this Circular.

For the Minister of Finance
Deputy Minister
TRAN XUAN HA

Appendix I

(To Circular No. 219/2009/TT-BTC of November 19, 2009)

LIST OF MOUNTAINOUS, DIFFICULTY-HIT, DEEP-LYING,
REMOTE DISTRICTS (POOR DISTRICTS)

(As provided in the Prime Minister’s Document No. 705/TTg- KGVX of May 11, 2009,)

THE END