Decision No. 11/2008/QD-BYT dated February 26, 2008 of the Ministry of Health promulgating the regulation on management and use of Official Development Assistance (ODA) of the Health Ministry

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Decision No. 11/2008/QD-BYT dated February 26, 2008 of the Ministry of Health promulgating the regulation on management and use of Official Development Assistance (ODA) of the Health Ministry
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Official number:11/2008/QD-BYTSigner:Nguyen Tan Dung
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Issuing date:26/02/2008Effect status:
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THE MINISTER OF HEALTH

SOCIALIST REPUBLIC OF VIET NAM
Independence Freedom Happiness

 

No. 11/2008/QD-BYT

Hanoi, February 26, 2008

 

DECISION

PROMULGATING THE REGULATION ON MANAGEMENT AND USE OF OFFICIAL DEVELOPMENT ASSISTANCE (ODA) OF THE HEALTH MINISTRY

THE MINISTER OF HEALTH

Pursuant to the Governments Decree No. 188/ 2007/ND-CP of December 27, defining the functions, tasks, powers and organizational st met ii re of the Health Ministry;

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

Pursuant to the Planning and Investment Ministrys Circular No. 03/2007/TT-BKH of March 12, 2007, guiding the functions, tasks and organizational structure of ODA program and project management units;

Pursuant to the Planning and Investment Ministrys Circular No. 04/2007/TT/BKH of July 30, 2007, guiding the implementation of the Regulation on management and use of official development assistance (promulgated together with the Governments Decree No. 131/2006/ND-CP of November 9, 2006);

Pursuant to the Planning and Investment Ministrys Decision No. 803/2007/QD-BKH of July 30, 2007, promulgating the regulations on reporting on implementation of ODA programs and projects;

At the proposal of the director of the Planning and Finance Department of the Health Ministiy

DECIDES:

Article 1. To promulgate together with this Decision the Regulation on management and use of ODA of the Health Ministry.

Article 2. This Decision takes effect 15 days after its publication in CONG BAO and replaces the Health Ministers Decision No. 2790/2002/ QD-BYT of July 25, 2002, promulgating the Regula:ion on management and use of ODA of the Health Ministry.

Article 3. General directors of general departments, the director of the Office, the chief inspector, and directors of departments, of the Health Ministry: heads of units attached to the Health Ministry; heads of concerned units, and directors of ODA-funded programs and projects shall implement this Decision.

 

MINISTER OF HEALTH




Nguyen Quoc Trieu

 

REGULATION

ON MANAGEMENT AND USE OF ODA OFTHE HEALTH MINISTRY
(Proinulgaied together with the Health Ministers Decision No. 11/2008/QD-BYT of February 26, 2008)

Chapter 1

GENERAL PROVISIONS

Article 1. Governing scope

1. This Regulation governs all activities related to the mobilization, management and use of official development assistance of the Health Ministry.

ODA in this Regulation is understood as development cooperation between the State or the Government of the Socialist Republic of Vietnam and donors being foreign governments, bilateral financing organizations and inter-state or inter-governmental organizations.

2. Forms of ODA provision include:

a/ Provision of non-refundable ODA, which means the provision of ODA not refundable to the donor:

b/ Provision of concessional ODA loans (or concessional credit), which means the provision of loans under concessional conditions on interest rates, grace periods and repayment durations with a non-refundable element (also referred to as assistance element) accounting for at least 35% of the value of binding loans or for at least 25% of the value of non-binding loans:

c/ Provision of mixed ODA loans, which means the provision of non-refundable loans or concessional loans together with commercial credits with the non-refundable element accounting for at least 35% of the value of binding loans or for at least 25% of the value of non-binding loans.

3. Basic modes of ODA provision include:

a/ Support for projects:

b/ Support for branches;

c/ Support for programs:

d/ Support for budget.

4. Domestic financial mechanisms applicable to the use of ODA:

a/ Allocation from the state budget;

b/ Re-lending from the state budget;

c/ Partial allocation and partial re-lending from the state budget.

Article 2. Objects of application

1. This Regulation applies to all ODA programs and projects and other ODA packages (below collectively referred to as programs and projects) which are mobilized, received, managed and used by departments, general departments, the Office or the Inspectorate of die Health Ministry.

2. With regard to health-related ODA of other agencies, ministries or branches, in order to ensure the state management of health and upon request, the Health Ministry assigns the Planning and Finance Department to act as the major agency in receiving dossiers of ODA programs, projects or other ODA packages, and coordinating with concerned agencies in giving appraisal comments.

Article 3. Basic principles in management and use of ODA of the Health Ministry

1. The Health Ministrys ODA constitutes an important capital source of the suite budget, which must be managed and used on the principles mentioned in Article 2 of the Regulation on ODA management and use, promulgated together with the Governments Decree No. 131 /2006/ND-CP of November 9, 2006.

2. The attraction of ODA must go hand in hand with the raising of its use efficiency, suit the demand and the receiving and using capacity of the Health Ministry and its units, and ensure foreign debt payment capability.

3. The management and use of ODA of the Health Ministry must comply with the provisions of Vietnamese law and international agreements on ODA to which Vietnam is a contracting party. If an international agreement on ODA to which Vietnam is a contracting party has provisions different from those of Vietnamese law, that international agreement prevails.

Article 4. Competence to approve ODA programs and projects

1. General principle: The competence to approve ODA programs and projects is prescribed in Article 19 of the Regulation on management and use of ODA promulgated together with the Governments Decree No. 131/2006/ND-CP of November 9, 2006, specifically:

a/The Prime Minister shall:

- Decide on investment in important national programs and projects;

- Approve programs and projects associated with policy frameworks, and technical assistance programs and projects in security and defense domains.

b/ Heads of program or project-managing agencies shall decide on investment in investment programs and projects, and approve technical assistance programs and projects not defined at Point a, Clause 1 of this Article.

2. The Health Ministrys competence to approve ODA programs and projects:

a/ The Minister of Health shall decide on investment in and approve ODA programs and projects not specified at Point a. Clause 1 of this Article and approve programs and projects authorized by the Prime Minister.

b/ The competence to approve ODA programs and projects managed by the Health Ministry complies with the assignment principle mentioned in the Health Ministers Decision No. 4297/QD-BYT of November 6, 2007. on assigning the Ministrys leaders to personally direct region-based healthcare work; Decision No. 4293/QD-BYT of November 6, 2007, assigning the Ministrys leaders to take charge of non-business units under the Ministry; and Decision No. 4299/ QD-BYT of November 6, 2007, assigning the Ministrys leaders to personally direct programs and projects in the health domain, and additional or amended legal documents (if any) approved by the Health Minister.

Article 5. Interpretation of terms

In this Regulation the terms below are construed as follows:

1. ODA program- or project-managing agency means the Health Ministry, for ODA-funded programs and projects directly implemented by units of the agencies of, or non-business units, under the Health Ministry and projects in the health domain which are managed and implemented by the Health Ministry under die Prime Ministers authorization.

2. Investors or ODA program or project owners (collectively referred to as project owners) means units under the agencies of the Health Ministry or non-business units under the Health Ministry (below collectively referred to as units) which are assigned to directly manage and use ODA capital and domestic capital for implementation of ODA investment programs and projects or ODA technical assistance programs and projects according to the approved contents and to manage and use or transfer to other localities and units for management and use after the completion of the programs or projects.

3. Regulation means the Regulation on ODA management and use promulgated together with the Governments Decree No. 131/2006/ND-CP of November 9, 2006.

4. Circular 04 means the Planning and Investment Ministrys Circular No. 04/2007/TT-BKH of July 30, 2007, guiding the implemen-tation of the Regulation on ODA management and use (promulgated together with the Governments Decree No. 131/2006/ND-CP of November 9, 2006).

5. Other terms related to ODA management and use are construed in Article 4 of the Regulation.

Chapter 2

MOBILIZATION OF ODA

Article 6. Bases for mobilization of ODA

ODA in the health domain is mobilized on the basis of:

1. The Governments socio-economic development strategies:

2. Plannings, annual, five-year and ten-year development plans of the health service;

3. The Health Ministrys priority policies for development of the health service and domains in each period;

4. The units task performance requirements;

5. Strategies and programs on development cooperation between Vietnam and donors in the health domain;

6. The national strategy on foreign borrowings and payment of foreign debts;

7. The Governments orientations for ODA attraction and use in each period:

8. Donors strengths and priorities

Article 7. Coordination in mobilizing ODA

1. The Planning and Finance Department shall act as the major agency in coordinating ODA of the Health Ministry and join the International Cooperation Department in coordinating with concerned agencies and units in mobilizing ODA for the health domain; prepare ODA attraction calls on the occasion of the Health Ministrys high-ranking visits or negotiations under the Planning and Investment Ministrys guidance in Circular 04.

2. The International Cooperation Department shall assume the prime responsibility for, and coordinate with the Planning and Finance Department and concerned units in, preparing and organizing ODA mobilization conferences of the Health Ministry.

3. Units shall take the initiative in m bilizing ODA or coordinate with the Planning and Finance Department and the International Cooperation Department in mobilizing ODA in the health domain. Units interested in ODA may directly contact Vietnam-based embassies or financing bodies of donors in order to request the supply of ODA-related documents announced by donors.

Article 8.- Process of proposing an ODA calling list

The process of proposing an ODA calling list of the Health Ministry is prescribed as follows:

1. Notifying the formulation of a blueprint:

Within 5 working days after receiving the Planning and Investment Ministrys notice on time schedules for discussion or negotiation with donors, the Planning and Finance Department shall report to the Ministrys leadership then issue an official letter to concerned units, notifying the formulation of blueprints for inclusion of programs or projects in the ODA calling list.

2. Formulating blueprints:

Within 20 working days after the Planning and Finance Department notifies concerned units of the formulation of blueprints for inclusion of programs or projects into the ODA calling list, concerned units shall formulate those blueprints according to the forms in Appendix 2 (a, b. c, d and e) of Circular 04. and send them to the Health Ministry (Planning and Finance Department), at 138AGiang Vo. Hanoi.

a/ A valid dossier for a program or project registered for inclusion in the Health Ministrys ODA calling list comprises:

- The units official document to the Health Ministry, requesting the registration of the program or project in the ODA calling list, briefly explaining grounds for the proposal for the program or project.

- 6 copies of the blueprint of each program or project requesting ODA, in Vietnamese and English.

b/ A program or project selected for inclusion in the ODA calling list must meet the following requirements:

- It is in the priority domains for ODA use specified in Article 3 of the Regulation;

- It is conformable with the policies, processes, procedures and capability of the donor;

- It has a blueprint which satisfies the requirements in Circular 04;

- The proposing unit is fully capable to receive, manage and organize the implementation of the program or project as well as to exploit and effectively use the results of the completed program or project.

3. Gathering comments:

Within 5 working days after receiving a valid dossier from a unit, the Planning and Finance Department shall send a written request to concerned departments, general departments and units for comments on the blueprint of the program or project registered for inclusion in the ODA calling list.

4. Giving comments:

Within 7 working days after receiving written requests and valid dossiers of programs or projects from the Planning and Finance Department, concerned departments, general departments and units shall send to the Planning and Finance Department their written comments on the blueprints of the programs or projects registered for inclusion in the ODA calling list. Consulted units are fully responsible before the Health Minister and before law for giving or not giving their comments and the contents of those comments.

5. Synthesizing comments:

Within 5 working days after the deadline for receiving comments, the Planning and Finance Department shall synthesize comments of concerned units it has received. If it is necessary to amend a blueprint, the Planning and Finance Department shall notify such to die concerned unit. After finalizing blueprints of programs or projects registered for inclusion in the ODA calling list, concerned units shall each send 10 sets thereof (in Vietnamese and English) to the Health Ministry (the Planning and Finance Department).

6. Submitting to the Health Ministrys leadership programs and projects registered for inclusion in the ODA calling list:

Within 5 working days after receiving final blueprints of programs and projects from units, the Planning and Finance Department shall submit to the Health Ministrys leadership for signing an official letter to the Planning and Investment Ministry to register the inclusion of those programs and projects in the ODA calling list: 10 blueprint sets in Vietnamese and English must be enclosed for each program or project.

7. Notifying the official financing list:

Within 3 working days after receiving the Planning and Investment Ministrys written notice of programs and projects selected or not selected for inclusion in the official financing list, the Health Ministry (Planning and Finance Department) shall notify the results to concerned units and provide further guidance for selected programs and projects.

The official financing list is the ODA calling list which has been approved by the Prime Minister and accepted in principle by donors. The official financing list will serve as a legal basis for preparation of programs and projects.

8. Special cases in registration of the ODA calling list:

a/ If a donor has no regular program on ODA provision for Vietnam or no agreed schedule for negotiation on annual or periodical development cooperation programs, units seeking ODA capital from this donor shall take the initiative in searching information and documents on the donor and. based on the guidance in Circular 04, make blueprints of programs or projects in need of financial supports. Then, they may proceed with the process of registering programs and projects in the ODA calling list, which is prescribed in Clauses 1 thru 7 of this Article.

b/ If a donor takes the initiative in proposing and reaching agreement with the Health Ministry to support a program or project outside the ODA calling list approved by the Prime Minister and has not identified any specific recipient of its financial supports, the Health Ministry (Planning and Finance Department) shall, based on the donors proposal requirements, capability and demands of concerned units, report thereon to the Health Minister so that the latter may designate a unit to make a blueprint of the program or project to be registered in the ODA calling list. The designated unit shall make the blueprint and follow the process of registering the program or project into the ODA calling list according to the provisions of Clauses 1 thru 7 of this Article.

c/ If a donor takes the initiative in proposing and reaching agreement with a unit to finance a program or project outside the ODA calling list approved by the Prime Minister (the donor has identified a specific recipient of its financial supports), the unit shall make a blueprint of the program or project to be registered in the ODA calling list and follow the process of registering the program or project into the ODA calling list according to the provisions of Clauses 1 thru 7 of this Article.

With regard to cases mentioned at Points b and c, Clause 8 of Article 8, a valid dossier of registration in the ODA calling list should, besides meeting the requirements in Clause 2, Article 8, have a letter or commitment of the donor regarding the proposal to finance the program or project, which is written in the language of the donor and in Vietnamese.

d/ With regard to other cases, concerned units shall report- them to the Health Ministry for consideration before submitting to the Prime Minister forxcmsideration and decision.

Chapter 3

PREPA RATION, A PPR\ ISAL AND APPROVAL OF CONTENTS OF ODA PROGRAMS AND PROJECTS

Article 9. Identification of project owners

1. Identification of project owners: Within 5 working days after receiving the Planning and Investment Ministrys notice of the official financing list, the Planning and Finance Depart- ment shall coordinate with concerned departments, general departments in recommending project owners to the Health Minister for decision.

Decisions on project owners shall be issued under the guidance in Section I. Part III of Circular No. 04.

2. Provisions on project owners:

a/ With regard to investment programs and projects, project owners must ensure conditions prescribed by the current law on management of investment and construction;

b/ With regard to technical assistance programs and projects, project owners must ensure that they have:

- The functions, tasks and operations relevant to the objectives and contents of the programs or projects;

- Other necessary conditions as prescribed by law.

3. Other exceptional cases on identification of project owners are guided in Section I, Part III of Circular 04.

Article 10. Preparation of ODA programs and projects in the official financing list:

1. Project owners shall coordinate with donors in preparing documents of ODA programs and projects approved in the official financing list, ensuring the formulation schedule and quality of those documents.

2. ODA program and project documents shall be prepared based on the forms in Appendices 4a, 4b and 4c of Circular No. 04, for technical assistance programs and projects; programs and projects with multiple components, covering many domains and with only one managing agency; and umbrella programs and projects. With regard to investment programs and projects, the project formulation complies u ith the provisions of the Governments Decrees No. 16/2005/ND-CP of February 7, 2005, and No. 112/2006/ND-CP of September 29,2006.

3. Capital for ODA program and project preparation is stipulated in Article 12 of the Regulation.

Article 11. Appraisal and approval of ODA programs and projects under the competence of the Health Ministry

1. The Planning and Finance Department shall act as the major agency in coordinating with concerned departments, general departments and units in organizing the appraisal of, and submit to the Health Ministrys leadership for approval, ODA programs and projects which fall under the approving competence of the Health Minister.

2. Project owners may not appraise their own ODA technical assistance programs and projects.

3. Dossiers submitted for appraisal, approval of ODA programs and projects:

A valid dossier proposing the Health Ministry to appraise and approve an ODA program or project comprises:

a/ The units official letter to the Health Ministry, requesting the appraisal and approval of (lie program or project;

b/ The Prime Ministers or the Planning and Investment Ministrys notice on the ODA calling list;

c/ The ODA program or project documents in Vietnamese and English, prepared according to the forms in Appendix 4 or 5 of Circular 04;

d/ Agreements or memorandums of understan-ding with the donor or the donors representatives:

e/ The report on the implementation of the program or project in the previous stage (for an ongoing program or project);

f/ The number of dossier sets: 06 (in Vietnamese and English), including at least 01 original.

4. Process of appraising and approving ODA programs and projects at the Health Ministry:

a/ Sending dossiers:

Units shall send valid dossiers to the Health Ministry (the Planning and Finance Department) at 138A Giang Vo, Hanoi.

b/ Gathering comments:

Within 3 working days after receiving a valid dossier on an ODA program or project submitted by a unit for appraisal or approval, the Planning and Finance Department shall send written requests to the concerned departments, general departments and units for comment.

c/ Concerned units giving comments: Within 5 working days after receiving written requests for comment from the Planning and Finance Department, enclosed with a program or project, concerned units shall send their written comments to the Planning and Finance Department. Past the time limit, if a unit gives no official written reply, it shall be considered having agreed with the contents of the program or project. Units participating in the appraisal of the program or project are fully responsible before the Health Ministry and before law for giving or not giving comments and the contents of those comments.

d/ Organizing appraisal:

- Provisions on organizing appraisal of ODA programs and projects of the Health Ministry:

+ For ODA programs and projects capitalized at less than USD 500,000 each, the Planning and Finance Department shall appraise them by gathering comments from concerned departments, general departments and units. This way of appraisal applies to technical assistance programs and projects with clear contents which are consistent with blueprints of the programs or projects already approved by the Prime Minister.

Within 3 working days after receiving comments from all concerned departments, general departments and units and complete program or project documents from a project owner, the Planning and Finance Department shall make an appraisal report and submit it to the Health Ministrys leadership for approval of the ODA program or project.

+ ODA programs and projects capitalized at between USD 500,000 and USD 1 million each shall be appraised through appraisal meetings chaired by the Planning and Finance Departments leadership and attended by concerned departments, general departments and units. When necessary, a program or project appraisal meeting may be attended by representatives of concerned ministries and branches.

+ ODA programs and projects capitalized at over USD 1 million each shall be appraised through appraisal meetings chaired by a vice minister and participated by members of concerned departments, general departments and units. When necessary, a program or project appraisal meeting may be attended by representatives of concerned ministries and branches.

Within 3 working days after the deadline for receiving comments, the Planning and Finance Department shall submit to the Healthy Ministrys leadership/the Planning and Finance Departments leadership a proposal on participants in the appraisal meeting and the appraisal schedule. Persons notified to attend such a meeting must all show up. Those, who due to force majeure reasons cannot attend the meeting shall notify the Planning and Finance Department one day before the meeting, and send the latter their written comments on the program or project for reporting to the Health Ministrys or the Planning and Finance Departments leadership.

Contents of appraisal of ODA programs and projects comply with the provisions of Part III, Circular 04.

- Preparing appraisal reports/records:

Within 3 working days after the deadline for receiving comments (in case of synthesizing appraisal comments) or after the end of an appraisal meeting (in case of organizing appraisal meetings), the Planning and Finance Department shall sum up opinions, prepare an appraisal report/ record according to the form in Appendix 6 of Circular 04. and notify the project owner to finalize the program or project (if necessary).

- Finalizing programs and projects:

Within 3 working days after receiving the Planning and Finance Departments notice of fina-lization of ODA program and project documents (for appraisal by synthesizing comments) or after obtaining conclusions of appraisal meetings (for appraisal through meetings), project owners shall send 06 original sets of finalized programs or project documents to the Health Ministry (Planning and Finance Department).

- Approving programs and projects:

Within 3 working after receiving complete program or project documents from units and completing the appraisal report/record the Planning and Finance Department shall submit to die Healthy Ministrys leadership for approval ODA programs or projects, with regard to those falling under the approving competence of the Health Minister as prescribed in Article 4 of this Regulation.

d/ Notifying the approval of programs and projects:

- Within 3 working days after receiving the Health Ministrys approving decision, the Planning and Finance Department shall send:

+ The approving decision, enclosed with the program or project documents (originals certified by the Planning and Finance Department and stamped on die inner edges of every two adjoining pages) and the appraisal report/record to the Ministry of Planning and Investment and the Ministry of Finance.

+ The approving decision, enclosed with the program or project documents (originals certified by the Planning and Finance Department and stamped on the inner edges of every two adjoining pages) to the project owner for implementation of the program or project.

- Project owners shall notify donors of the competent authoritys decisions approving the programs or projects.

Program or project documents and accompanying documents (including their amended or supplemented ones) which are approved by competent audiorities serve as a basis for negotiation, conclusion and implementation of specific international agreements on ODA.

e/ Notes:

- Documents of ODA investment projects must be formulated according to current regulations on investment and construction management and ensure the requirements mentioned in Article 13 of this Regulation.

- With regard to ODA investment programs and projects, the appraisal contents, process and time limit comply with the provisions of current law on investment and construction management.

- With regard to investment programs and projects, the appraisal, approval of technical designs and total cost estimates, grant of construction permits, management of work quality, after-test acceptance, transfer, warranty and insurance for construction works comply with current legal provisions on investment and construction management.

Article 12. Appraisal and approval of ODA programs and projects falling under the approving competence of the Prime Minister

1. Valid dossiers submitted to the Health Ministry for appraisal of programs and projects falling under the approving competence of the Prime Minister comply with Clause 3, Article 11 of this Regulation. The number of dossier sets must be 10. including at least 3 original sets.

2. Appraisal process:

a/ For projects of this type, the appraisal process at the Health Ministry complies with Clause 4, Article 11 of this Regulation.

b/ Other provisions:

- Finalizing programs and projects:

Within 3 working days after obtaining conclusions of the appraisal meeting, a project owner shall finalize the program or project and send to the Health Ministry (the Planning and Finance Department) 10 program and project document sets (in Vietnamese and English), including at least 3 original sets.

- Preparing appraisal reports/records and submitting for approval programs and projects:

Within 3 working days, the Planning and Finance Department shall prepare an appraisal report/record and submit to the Health Ministry for signing an official letter to the Prime Minister for consideration and approval of the ODA program or project through the Planning and Investment Ministry.

- Submitting to the Prime Minister for appraisal and approval programs and projects

Within 3 working days after receiving the official letter addressed to the Prime Minister which has been signed by the Health Ministrys leadership, the Planning and Finance Department shall send it to the Prime Minister, enclosed with 8 program and project document sets (in Vietnamese and English) addressed to the Planning and Investment Ministry, and 01 program and project document set to the project owner.

- The process of appraising and approving at the Planning and Investment Ministry ODA programs and projects which fall under the Prime Ministers competence complies with the provisions in Part III of Circular 04.

Article 13. Appraisal and approval of the adjustment, amendment or supplementation of ODA programs and projects

1. General principle: The adjustment, amendment or supplementation of contents of ODA programs and projects in the course of their implementation comply with Article 31 of the Regulation and Clause V, Part V of Circular 04.

2. A valid dossier:

a/ The project owners official letter to the Health Ministry, requesting the appraisal and approval of adjustments, amendments or supplements to an ODA program or project. This official letter must state clearly reasons for and necessary solutions to the adjustment, amendment or supplementation of the program or project.

b/ An explanation of the budget for the adjustment, amendment or supplementation of the program or project.

c/ The donors written consent (or no objection) regarding this issue.

3. Decentralization of appraising organizations:

a/ Adjustments or supplements capitalized at less than USD 300,000 shall be appraised by synthesizing opinions of concerned departments, general departments and units.

b/ Adjustments or supplements capitalized at between USD 300,000 and USD 500,000 shall be appraised through appraisal meetings chaired by the Planning and Finance Departments leadership.

c/ Adjustments or supplements capitalized at above USD 500,000 shall be appraised through appraisal meetings chaired by the Health Ministrys leadership.

4. The appraisal and approval process complies with Clause 4, Article 11 of this Regulation.

Article 14. Approval of annual plans of ODA programs and projects

Based on the updated overall plan for implementation of an ODA program or project which has been approved by the managing agency, vvitllin 10 working days, a project owner shall, after consulting tlie Planning and Finance Department, approve a detailed annual plan on the implemen-tation of the program or project. When necessary, the project owner shall consult oilier concerned departments, general departments and units.

The annual program and project implementa-tion plan shall serve as a basis for the distribution of resources to program and project activities and for formulation of quarterly implementation plans, in service of the administration, monitoring, inspec-tion, evaluation and commendation of project management activities of the project management unit.

Chapter 4

CONCLUSION AND IMPLEMENTATION OF INTERNATIONAL AGREEMENTS ON ODA

Article 15. Conclusion and implementation of international agreements on ODA

1. The conclusion and implementation of international agreements on ODA comply with the Law on Conclusion, Accession to and Implementation of Treaties and Circular No. 01/2008/TT-BNG of February 4, 2008, of the Ministry of Foreign Affairs, guiding the order and procedures for conclusion and implementation of international agreements on ODA.

2. Program and project documents and accompanying documents (including adjustments and supplements) approved by competent authorities serve as bases for negotiation, conclusion and implementation of specific international agreement on ODA with donors.

3. The adjustment, amendment, supplemen-tation or extension of international agreements on ODA in the course of their implementation comply with the guidance in Circular No. 04/2008/TT-BNG of February 4, 2008, of the Ministry of Foreign Affairs.

Chapter 5

MANAGEMENT OF IMPLEMENTATION OF ODA PROGRAMS AND PROJECTS

Article 16. Tasks, responsibilities and powers of managing agencies and owners of ODA programs and projects

Tasks, responsibilities and powers of managing agencies and owners of ODA programs and projects are provided for in Articles 23 and 24 of the Regulation.

Article 17. Establishment of ODA program and project management units (PMUs)

1. Within 10 working days after a program or project is approved by a competent authority, the Health Ministry or the project owner shall issue a decision to establish a PMU, which shall assist the Health Ministry and the project owner in managing the implementation of the ODA program or project.

2. The order of establishment, organizational structure, functions, tasks and powers of PMUs, the responsibility relationship between PMUs, project owners, managing agencies and state management agencies are detailed in the Planning and Investment Ministrys Circular No. 03/2007/TT-BKH of March 12, 2007, on organizational structure, functions and tasks of ODA program and project management units.

3. The Organization and Personnel Department shall act as the major agency in coordinating with the Planning and Finance Department and concerned departments and general departments in submitting to the Health Ministrys leadership for issuance decisions on the establishment of PMUs at the proposal of ODA project owners, with regard to key positions in the PMUs such as the director, deputy director (if any), chief accountant or accountant.

4. Notes:

a/ The Health Ministry shall directly manage, administer or assign a unit under its competence to act as the project owner to directly manage and administer the implementation of an ODA technical assistance program or project.

b/ The project owner shall directly manage and administer the implementation of an ODA investment program or project.

c/ The project owner may hire a management consultancy organization to implement an ODA investment program or project (chief administrator of the investment program or project) in accordance with the current law.

d/ With regard to small-sized and simple ODA programs and projects totally capitalized (including domestic capital) at under VND 1 billion each, the Health Ministry and project owners need not establish PMUs but use their professional apparatuses for the management and administration of the implementation of the programs or projects. With regard to investment projects of this type, project owners may hire skilled and experienced persons to assist them in managing and administering the implementation of the programs or projects.

e/ To ensure the principle that PMUs must not be project owners.

f/ In the course of implementation of a program or project, if theres a change in the personnel of the PMU, the project owner shall, within 10 working days after the change, issue a decision or submit to the Health Ministry for issuance a decision adjusting the personnel of the PMU to ensure continuous operation of the project.

Article 18. Management of ODA program and project implementation by the Health Ministry

Notes in the management of ODA program and project implementation by the Health Ministry:

1. The supply of goods, provision of consultancy services and capital construction for programs and projects through bidding complies with current legal provisions on bidding and international agreements on ODA to which Vietnam is a contracting party and specific guidance of the Health Ministry. If bidding regulations in a concluded specific international agreement on ODA are different from Vietnams current regulations on bidding, the conclude specific international agreement on ODA prevails.

2. The supply of specialists for ODA programs and projects complies with current regulations on specialists. When necessary, the International Cooperation Department shall coordinate with the Planning and Finance Department in c tifying specialists of ODA programs andprjjecic. Which serves as a basis for functional agencies to consider immunities according to regulations on specialists or to grant visas to project specialists to work in Vietnam.

3. The nomination of cadres for overseas study tours within program or project plans complies with the Health Ministrys current regulations on overseas excursion and study.

4. ODA loan programs and projects must comply with the procedures on capital withdrawal for disbursement under agreements signed with donors. Capital withdrawal applications must be sent concurrently to the Finance Ministry and the Health Ministry (the Planning and Finance Department) for monitoring of the capital disbursement tempo.

5. ODA programs and projects with tax-related activities under current regulations must have adequate funding estimates for tax payment. If a specific international agreement on ODA concluded with a donor otherwise provides for taxes, that international agreement must be complied with.

6. The compensation, ground clearance and resettlement under programs or projects comply with current law and international agreements on ODA to which Vietnam is contracting party.

A dossier submitted for approval of the plan on compensation, ground clearance and resettlement under a program or project must have a written commitment of the agency competent to decide on ground clearance and resettlement regarding the schedule and time limit for completion of compensation, ground clearance and resettlement in accordance with the implementation schedule of each bidding package under the program or project.

7. The payment for and settlement of programs and projects must comply with the current law and international agreements on ODA which are effective in Vietnam.

Article 19. Monitoring and evaluation of ODA programs and projects

1. The monitoring and evaluation of ODA programs and projects comply with Articles 33,34 and 35 of the Regulation and Clauses I and II, Part VI of Circular 04.

2. The Planning and Finance Department shall act as the major body in coordinating with other departments, general departments, the Ministrys Office and the Ministrys Inspectorate in organizing regular or irregular inspection and evaluation or submitting to the Health Ministrys leadership the hiring of consultants to evaluate the implementation of ODA programs and projects.

3. The Planning and Finance Department shall act as the major agency in coordinating the other departments, general departments, the Ministrys Office and the Ministrys Inspectorate in organizing the evaluation of ODA programs and projects upon their completion.

Article 20. Reporting on the implementation of ODA programs and projects

1. The reporting on the implementation of ODA programs and projects complies with .Article 36 of the Regulation; Clause III. Part VI of Circular 04 and Decision No. 803/2007/QD-BKH of July 30, 2007. of the Planning and Investment Ministry.

2. Sanctions against violations of the provisions on reporting on implementation of ODA programs and projects are specified in Point 4. Clause III, Part VI of Circular 04.

Article 21. State management of ODA

The Health Ministry shall exercise the unified management of ODA, assigning its departments, general departments, Office and Inspectorate the following tasks:

1. The Planning and Finance Department:

a/ To act as the major agency in assisting the Health Minister in exercising die state management of ODA, attracting, coordinating and managing ODA programs and projects of die Healdi Ministry; to be responsible for guiding and ensuring coordi-nation in managing, closely monitoring and promo-ting the initiative of units in all activities related to the Health Ministrys programs and projects;

b/ To assume the prime responsibility for drafting and submitting for promulgation or to promulgate according to its competence legal documents on ODA management and use;

c/ To manage financial matters of ODA programs and projects. To assume the prime responsibility for, and coordinate with the Ministrys Office, concerned departments and general departments in guiding regulations on financial management of programs and projects;

d/ To assume the prime responsibility in making plans on disbursement of ODA capital of die Health Ministry, arrange fully and promptly capital for program and project preparation as well as domestic capital for implementation preparation and imple-mentation of programs and projects which are funded by the state budget under annual capital plans;

e/ To monitor and inspect the management and organize the implementation of programs and projects; to urge and support the implementation of programs and projects; to take responsibility for coordinating with concerned departments, general departments and units in organizing the evaluation of projects upon their completion;

f/ To act as the major agency in handling ODA issues in the health domain which are related to localities or other ministries and branches.

g/ To evaluate the efficiency of ODA attraction and use; to submit upon request to the State or the Health Ministrys leadership periodical or extraordinary sum-up reports on the management and implementation of programs and projects as well as the efficiency of ODA attraction and use.

2. The International Cooperation Department:

The International Cooperation Department shall act as the major agency and take responsibility for coordinating with the Planning and Finance Department, concerned departments and general departments in guiding project owners to conclude specific international agreements on ODA for programs and projects under the guidance of the Planning and Investment Ministry and the Ministry of Foreign Affairs; organize ODA mobilization conferences of the Health Ministry under the guidance of ODA-mobilizing units and have other responsibilities defined in Clause 4 of this Article.

3. The Organization and Personnel Department:

The Organization and Personnel Department shall coordinate with the Planning and Finance Department and concerned units in making and submitting to the Health Ministrys leadership for issuance decisions on the establishment of PMUs and PMU operation regulations at the proposal of project owners, and have other responsibilities defined in Clause 4 of this Article.

4. The Health Ministrys departments, general departments. Office and Inspectorate:

The Health Ministrys departments, general departments. Office and Inspectorate shall join in managing ODA within the ambit of their state management functions and tasks. When requested, they shall give comments and appraise ODA programs and projects in their state management domains:join in monitoring, evaluating, accepting after test and inspecting ODA programs and projects upon request.

Chapter 3

ORGANIZATION OF IMPLEMENTATION

Article 22. Provisions on organization of implementation

1. Directors of departments, general directors of general departments, the Office and the Inspectorate of the Health Ministry shall disseminate and implement this Regulation.

2. Heads of non-business units under the Health Ministry which benefit from ODA programs and projects, ODA project owners and directors of ODA projects shall implement this Regulation.

3. Commendation and handling of violations:

a/ Organizations and individuals that make outstanding achievements in the implementation of this Regulation shall be commended or rewarded in accordance with the emulation and commendation law.

b/ Organizations or individuals violating the provisions of this Regulation shall, depending on the nature and severity of their violations, be handled in accordance with law.

4. Any problems arising in the course of implementation should be reported by the Ministrys departments, general departments, Office and Inspectorate to the Health Ministry (the Planning and Finance Department) for supple- mentation and improvement of this Regulation.

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