Decree 114/2021/ND-CP on management and use of ODA and concessional loans of foreign donors

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ATTRIBUTE

Decree No. 114/2021/ND-CP dated December 16, 2021 of the Government on the management and use of official development assistance and concessional loans of foreign donors
Issuing body: GovernmentEffective date:
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Official number:114/2021/ND-CPSigner:Pham Binh Minh
Type:DecreeExpiry date:Updating
Issuing date:16/12/2021Effect status:
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Fields:Finance - Banking , Investment

SUMMARY

Non-refundable ODA shall be prioritized for epidemic prevention

On December 16, 2021, the Government issues the Decree No. 114/2021/ND-CP on management and use of official development assistance (ODA) and concessional loans of foreign donors.

In accordance with this Decree, non-refundable ODA shall be prioritized for implementation of programs and projects on socio-economic infrastructure development; capacity building; support for formulation of policies and institutions and reforms; prevention, control and mitigation of natural disasters, epidemic prevention; adaptation to climate change; green growth; creative innovation; social security; etc.

ODA loans shall be prioritized for programs and projects in the fields of health, education, vocational education, adaptation to climate change, environmental protection, and construction of essential economic infrastructure facilities which are incapable of directly recovering invested funds. Besides, concessional loans shall be prioritized for programs and projects that use loans for on-lending under regulations on on-lending of ODA and foreign concessional loans of the Government; and programs and projects to be covered by state budget expenditures in the field of socio-economic infrastructure development.

Additionally, to allocate all ODA loans and foreign preferential loans from the central budget for programs and projects to be covered by central budget expenditures. For investment programs and projects to be covered by local budget expenditures, ODA or foreign concessional loans shall be partially or wholly on-lent under regulations on on-lending of ODA and foreign concessional loans of the Government.

This Decree takes effect on the signing date.

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THE GOVERNMENT

 

THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness

No. 114/2021/ND-CP

 

Hanoi, December 16, 2021

 

DECREE

On the management and use of official development assistance and concessional loans of foreign donors[1]

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the June 25, 2015 Law on the State Budget;

Pursuant to the November 26, 2013 Bidding Law;

Pursuant to the June 18, 2014 Construction Law; and the June 17, 2020 Law Amending and Supplementing a Number of Articles of the Construction Law;

Pursuant to the November 26, 2014 Law on Management and Use of State Capital Invested in Production and Business at Enterprises;

Pursuant to the April 9, 2016 Law on Treaties;

Pursuant to the November 23, 2017 Law on Public Debt Management;

Pursuant to the June 13, 2019 Law on Public Investment;

Pursuant to the June 17, 2020 Law on Investment;

Pursuant to the June 17, 2020 Law on Enterprises;

Pursuant to the June 18, 2020 Law on Investment in the Form of Public-Private Partnership;

Pursuant to the November 17, 2020 Law on Environmental Protection;

At the proposal of the Minister of Planning and Investment,

The Government promulgates the Decree on the management and use of official development assistance and concessional loans of foreign donors.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree provides the management and use of official development assistance (ODA) and concessional loans provided by foreign governments, international organizations, inter-governmental or inter-state organizations, or governmental organizations authorized by foreign governments (below collectively referred to as foreign donors) to the State or the Government of the Socialist Republic of Vietnam.

Article 2. Subjects of application

This Decree applies to agencies, organizations and individuals engaged or involved in the management and use of ODA and concessional loans of foreign donors and counterpart funds of Vietnam.

Article 3. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Steering Committee of an ODA or concessional loan-funded program or project (below referred to as Steering Committee) means an organization established by the managing agency of an ODA or concessional loan-funded program or project (below referred to as program or project) and composed of competent representatives of related agencies to direct, coordinate and supervise the program or project implementation. In case of necessity, based on an agreement with the foreign donor, the Steering Committee may have a representative of the foreign donor.

2. Management unit of an ODA or concessional loan-funded program or project (below referred to as project management unit) means an organization established to assist the managing agency or project owner in managing the implementation of one or more than one program or project.

3. Program means a combination of ODA or concessional loan-funded activities or projects that are interrelated and may be related to one or more than one sector, field, geographical area or stakeholder, and are aimed at achieving one or several of specified objectives and carried out in one or more than one phase.

4. Program accompanied by policy framework means a program subject to conditions on disbursement of ODA or concessional loans of the foreign donor associated with the Vietnamese Government’s commitments on formulation and implementation of socio-economic development policies, institutions and solutions on a scale and according to a roadmap agreed upon between the parties.

5. Regional or global program or project (below collectively referred to as regional program or project) means a program or project financed on a global scale or for a group of countries in one or more than one region for performance of cooperation activities aimed at achieving specified objectives for the sake of stakeholders and for common benefit of the region or the globe. Vietnam’s participation in a regional program or project may be in either of the following forms:

a/ Participation in carrying out one or several of activities predesigned by the foreign donor in the program or project;

b/ Performance of financing activities for Vietnam to formulate and implement programs or projects within the framework of the program or project.

6. Sector-wide approach program means an ODA or concessional loan-funded program under which the foreign donor relies on the development program of a sector or field to provide comprehensive assistance to ensure the sustainable and efficient development of such sector or field.

7. Managing agency of an ODA or concessional loan-funded program or project (below referred to as managing agency) means the central body of a political organization; the Supreme People’s Procuracy; the Supreme People’s Court; a National Assembly agency; the Office of the National Assembly; the State Audit Office of Vietnam; the Office of the President; a ministry, ministerial-level agency, government-attached agency, or People’s Committee of a province or centrally run city (below referred to as provincial-level People’s Committee); the Commission for the Management of State Capital at Enterprises; the central body of the Vietnam Fatherland Front or of a socio-political organization; a socio-politico-professional organization, social organization or socio-professional organization that performs tasks assigned by a competent state agency; or another agency or organization that is assigned a public investment plan involving an ODA or concessional loan-funded program or project.

8. Owner of an ODA or concessional loan-funded program or project means a unit assigned by the managing agency to directly manage or jointly implement such program or project.

9. Domestic financial mechanism applicable to ODA or concessional loan-funded programs and projects (below referred to as domestic financial mechanism) means a set of regulations on the use of ODA and concessional loans allocated from the state budget for programs and projects, including:

a/ Whole allocation of funds;

b/ Pro rata partial on-lending of loans;

c/ Whole on-lending of loans.

On-lending method: incurrence of credit risks or non-incurrence of credit risks.  

10. Project means a combination of interrelated proposals aimed to achieve one or several of certain objectives and implemented in a specific locality within a specified period and based on specified resources.

Technical assistance project means a project aimed at assisting policy, institutional and professional research and capacity building through such activities as supplying domestic and international experts, providing training, materials and documents, organizing field visits, surveys and seminars at home and abroad, providing some equipment, building demonstration models, preparing investment projects, and assisting the implementation of investment projects. Technical assistance projects include independent technical assistance projects and technical assistance projects for preparation of investment projects.

11. Program or investment project proposal means a document describing the context, necessity, objectives, scope, main outcomes, expected implementation period, expected total funding amount and structure of funding sources, preliminary evaluation of socio-economic efficiency and environmental impacts (if any), proposed domestic financial mechanism, planned fund balancing for loan repayment; and impacts on the medium-term public investment plan of the managing agency (for public investment programs and projects).

12. Treaty on ODA or concessional loans means a treaty defined in the Law on Treaties and related to the receipt, management and use of ODA or concessional loans. It may be:

a/ Framework treaty on ODA or concessional loans, which is a treaty related to cooperation strategies, policies and frame and priority fields; binding principles and conditions for the provision and use of ODA and concessional loans; ODA and concessional loan commitments for one year or multiple years, and other contents as agreed upon by the signatories; or,

b/ Specific treaty on ODA and concessional loans, which is a treaty on specific contents related to objectives, activities, implementation period, and outcomes to be achieved; financing conditions, loans, loan structure, financial conditions of loans, and repayment schedule; management mode; obligations, responsibilities and powers of stakeholders in the management of implementation of ODA or concessional loan-funded programs and projects, and other contents as agreed upon by the signatories.

13. Agreement on ODA and concessional loans means a written agreement on ODA and concessional loans concluded in the name of the Government of the Socialist Republic of Vietnam, which is not a treaty. It may be:

a/ Framework agreement, which is an agreement related to cooperation strategies, policies and frame and priority fields; binding principles and conditions for the provision and use of ODA and concessional loans; ODA and concessional loan commitments for one year or multiple years, and other contents as agreed upon by the signatories; or,

b/ Specific agreement, which is an agreement on ODA and concessional loans related to objectives, activities, implementation period, and outcomes to be achieved; financing conditions, loans, loan structure, financial conditions of loans, and repayment schedule; management mode; obligations, responsibilities and powers of stakeholders in the management of implementation of ODA or concessional loan-funded programs and projects, and other contents as agreed upon by the signatories.

14. Budget support means a method of providing ODA or concessional loans by which the support amount shall be directly remitted into the state budget, and managed and used in accordance with state budget regulations and procedures in order to achieve set objectives on the basis of agreement with the foreign donor. Budget supports include general budget support and central budget support for national target programs approved by competent authorities.

15. Serving bank means a bank selected by a user (project owner) to conduct transactions for ODA or concessional loan-funded projects that is identified by the State Bank of Vietnam to be qualified for acting as the serving bank for a project.

16. Non-project activity means a method of providing non-refundable ODA in the form of separate aid amounts without constituting a specific project; such aid may be provided in cash, in kind, in commodity or in expertise for carrying out one of the following activities: conference, seminar, coaching, research, survey, and training.

17. Decision on policy to implement a technical assistance project or non-project activity funded by non-refundable ODA (below referred to as implementation policy decision) means the Prime Minister’s decision on the policy to implement a technical assistance project or non-project activity (other than technical assistance projects funded by non-refundable ODA for preparing investment projects or supporting the implementation of investment projects), which must have the following principal contents: name of the project or non-project activity and name(s) of the foreign donor or co-donors; name of the managing agency; objectives of the project or non-project activity; and total fund amount. The implementation policy decision serves as a basis for the managing agency to coordinate with the foreign donor(s) in approving technical assistance project or non-project activity documents.

18. Document of a technical assistance project or non-project activity funded by non-refundable ODA (below referred to as project document) means a document presenting the context, necessity, objectives, contents, main activities, expected outcomes, implementation period, economic, social and environmental efficiency, total funding amount, funding sources and structure of funding sources, other resources, financing mode, conditions (if any) set by the foreign donor, and form of implementation management that is approved by the managing agency as a basis for implementation of such project or activity.

19. ODA or concessional loan means a loan provided by a foreign donor to the State or the Government of the Socialist Republic of Vietnam to support development activities and ensure social welfare and security, including:

a/ Non-refundable ODA, which is an ODA amount not required to be refunded to the foreign donor and provided in the form of an independent project or a project in combination with ODA or concessional loan-funded investment projects;

b/ ODA loan, which is a foreign loan with the grant element of at least 35%, for binding loans related to goods procurement and service provision under regulations of the foreign donor, or of at least 25%, for non-binding loans. The method of calculating the grant element is provided in Appendix I to this Decree;

c/ Concessional loan, which is a foreign loan which has more preferential conditions compared to a commercial loan but has the grant element not yet satisfying the criterion of an ODA loan specified at Point b of this Clause.

20. Counterpart fund means a fund amount contributed by the Vietnamese partner (in kind or in cash) to an ODA or concessional loan-funded program or project for preparing and implementing the program or project, which is allocated from the central budget or local budget, provided by the project owner by itself/himself/herself, contributed by beneficiaries, or allocated from other lawful funding sources.

21. Fund under a blended funding mechanism means a fund amount allocated from multiple sources of ODA and concessional loans with different levels of grant to support the building of technical and financial capacity in different forms for increasing the concessionality of a loan for a program or project.

22. Surplus fund means an ODA amount or a foreign concessional loan amount provided in the process of implementation of a program or project. Surplus funds include funds left after bidding, surplus funds as a result of exchange rate fluctuation, provisions not yet used up, and other surplus funds.

23. Emergency aid means an ODA amount or a concessional loan amount provided by a foreign donor to Vietnam in order to provide relief and remediate disaster consequences that is not governed by the Government’s regulations on the receipt, management and use of emergency international aid for provision of relief and remediation of disaster consequences; provision of relief in case of catastrophes or for epidemic prevention and control; or performance of urgent tasks to ensure national defense, security and external activities under decisions of competent authorities.

Article 4. Methods of providing ODA and concessional loans

Methods of providing ODA and concessional loans include:

1. Provision under programs.

2. Provision under projects.

3. Provision under non-project activities.

4. Provision as budget support amounts.

Article 5. Priorities for use of ODA and concessional loans

1. Non-refundable ODA shall be prioritized for implementation of programs and projects on socio-economic infrastructure development; capacity building; support for formulation of policies and institutions and reform; disaster prevention and control and risk reduction, relief for catastrophe victims, and epidemic prevention and control; adaptation to climate change; green growth; innovation; social security; preparation of investment projects or co-financing for concessional loan-funded projects with a view to increasing the grant element of a loan.

2. ODA loans shall be prioritized for programs and projects in the fields of health, education, vocational education, adaptation to climate change, environmental protection, and construction of essential economic infrastructure facilities which are incapable of directly recovering invested funds.

3. Concessional loans shall be prioritized for programs and projects that use loans for on-lending under regulations on on-lending of ODA loans and foreign concessional loans of the Government; and programs and projects to be covered by state budget expenditures in the field of socio-economic infrastructure development.

4. Other cases of priority must comply with the Prime Minister’s decisions on orientations for the attraction, management and use of ODA and concessional loans of foreign donors in each period.

Article 6. Contents and basic principles of state management of ODA and concessional loans

1. Contents of state management of ODA and concessional loans:

a/ Formulating, promulgating, and organizing the implementation of, legal documents on the management and use of ODA and concessional loans;

b/ Formulating, and organizing the implementation of, a scheme on the attraction, management and use of ODA and concessional loans in each period to support the implementation of 5-year socio-economic development plans; and solutions and policies for the management and efficient use of these funding sources;

c/ Monitoring, and providing information about, the management and use of ODA and concessional loans;

d/ Supervising, evaluating, examining and inspecting the practical management and use of ODA and concessional loans and results thereof in accordance with law.

2. Basic principles of state management of ODA and concessional loans:

a/ ODA and concessional loans shall be used for payment of development investment expenditures, but not for payment of regular expenditures. It is not permitted to use foreign loans for training and coaching activities for capacity building, except cases in which they are used to serve technology transfer and improvement of equipment and machinery operation skills; surveys; payment of taxes, charges or loan interests; procurement of cars, except special-use cars as decided by competent authorities; standby supplies and equipment for the operation process after projects are completed, except special standby supplies and equipment as decided by competent authorities in accordance with law; payment of expenses for compensation, support and resettlement; and payment of expenses for operation of project management units;

b/ The Government shall perform the unified state management of ODA and concessional loans on the basis of ensuring use efficiency and repayment capacity; delegate powers in association with responsibilities, powers and capacity of ministries, central agencies and localities; and ensure coordination among related agencies in management, monitoring and evaluation activities under current regulations;

c/ To ensure publicity and transparency and uphold accountability for policies on and order and procedures for the mobilization, management and use of ODA and concessional loans among sectors and fields and among localities, and regarding the practical use of ODA and concessional loans and results thereof;

d/ To disclose information about cooperation policies and priority fields of foreign donors on the Government Portal system (chinhphu.vn; mpi.gov.vn; mof.gov.vn; and mofa.gov.vn);

dd/ To prevent and combat corruption, loss and waste practices in the management and use of ODA and concessional loans, and prevent and handle these practices in accordance with law;

e/ Method of determining state budget-covered specific items of development investment expenditures: Specific items of development investment expenditures shall be determined in accordance with the Law on Public Investment, the Law on the State Budget, the Construction Law, and relevant legal documents.

Article 7. Principles of application of the domestic financial mechanism to ODA and concessional loans

1. For programs and projects to be covered by central budget expenditures: ODA loans and foreign concessional loans shall be wholly allocated from the central budget.

2. For programs and projects to be covered by local budget expenditures: ODA loans or foreign concessional loans shall be partially or wholly on-lent under the Government’s regulations on on-lending of ODA loans and foreign concessional loans.

For programs and projects to be covered by local budget expenditures with the use of ODA loans or foreign concessional loans as the State’s contributions to public-private partnership (PPP) projects: ODA loans or foreign concessional loans shall be wholly on-lent under regulations on on-lending of ODA loans and foreign concessional loans.

3. For programs and projects capable of wholly or partly recovering invested funds: ODA loans or foreign concessional loans shall be partially or wholly on-lent from the central budget under regulations on on-lending of foreign loans of the Government.

4. For non-refundable ODA, including also non-refundable ODA associated with loans and non-refundable ODA for investment projects or technical assistance projects (as independent projects or activities in preparation of or support for implementation of investment projects) or non-project activities: These amounts shall be wholly allocated. 

Article 8. Order and procedures for management and use of ODA and concessional loans

1. For programs and projects to be funded with ODA or concessional loans:

a/ Formulating, selecting and approving program or project proposals;

b/ Officially notifying foreign donors of approved program or project proposals;

c/ Formulating, appraising, and making investment policy decisions for, programs or projects;

d/ Officially notifying foreign donors of program or project investment policy decisions and requesting donation consideration;

dd/ Formulating, appraising, and making investment decisions for, programs or projects;

e/ Concluding treaties or signing agreements on ODA and concessional loans, depending on donors’ regulations;

g/ Managing implementation and managing finance of programs or projects;

h/ Completing programs or projects and handing over their outcomes.

2. For technical assistance projects and non-project activities to be funded with non-refundable ODA:

a/ Making project or non-project activity documents;

b/ Making implementation policy decisions, for the projects and non-project activities specified in Clause 1, Article 23 of this Decree;

c/ Appraising and approving project or non-project activity documents;

d/ Officially notifying foreign donors of the approval of project or non-project activity documents and requesting donation consideration;

dd/ Concluding treaties, or signing agreements on non-refundable ODA, or signing exchange documents on technical assistance projects or non-project activities, depending on foreign donors’ regulations;

e/ Managing implementation and managing finance of projects or non-project activities;

g/ Completing projects or non-project activities and handing over their outcomes.

3. For budget support amounts:

a/ Making dossiers and documents on budget support amounts;

b/ Deciding on policy to receive budget support amounts;

c/ Concluding treaties or signing agreements on ODA and concessional loans for budget support amounts;

d/ Managing implementation and managing finance of budget support amounts;

dd/ Completing the provision of budget support amounts and handing over  its outcomes.

4. For programs and projects using funds under the blended funding mechanism: Managing agencies shall comply with the order and procedures applicable to ODA or concessional loan-funded programs and projects specified in Clause 1 of this Article.

5. For programs and projects eligible for summary procedures:

a/ For emergency investment projects funded with non-refundable ODA, Article 42 of the Law on Public Investment shall apply;

b/ For programs and investment projects funded with non-refundable ODA; and technical assistance projects funded with non-refundable ODA, their preparation must comply with Points c, d, dd, e, g, and h, Clause 1 of this Article.

Article 9. Policy to receive budget support amounts

1. Order and procedures for deciding on policy to receive general budget support amounts:

a/ The Ministry of Finance shall assume the prime responsibility for compiling documents on budget support amounts, which must clearly state information on the situation of balancing of central budget funds, and a tentative plan for offsetting the budget deficit, in adherence to the principle of taking budget support amounts to cover development investment expenditures, and solicit opinions of the Ministry of Planning and Investment and related agencies;

b/ After summarizing opinions of the Ministry of Planning and Investment and related agencies, the Ministry of Finance shall assume the prime responsibility for reporting to the Prime Minister on the necessity, objectives, socio-economic efficiency, total funding amount, funding sources and structure of funding sources, conditions for receipt of budget support amounts, benefits and obligations, financing method, and form of management organization;

c/ The Prime Minister shall consider and decide on policy to receive budget support amounts for use as a basis for signing of documents on and receipt of general budget support amounts under regulations.

2. Order and procedures for deciding on policy to receive central budget support amounts for national target programs approved by competent authorities:

a/ Based on a competent authority’s decision approving investment policy for a national target program, the national target program-managing agency shall send a request to the Ministry of Planning and Investment and Ministry of Finance, together with documents on the budget support amount, which must clearly state the context, necessity, objectives, total funding amount, funding sources and structure of funding sources, and other resources; conditions for receipt of the budget support amount, benefits and obligations; financing method and form of management organization, and a tentative plan on use of the support amount to achieve the objectives of the national target program; principles, criteria, list of projects that will use the budget support amount, and plan on allocation of funds for ministries, sectors and localities as a basis for allocation of medium-term and annual public investment funds;

b/ The Ministry of Finance shall evaluate the grant of a loan, its impacts on public debts, and financial mechanism; capacity to receive the budget support amount for achievement of objectives of the national target program; and conditions for receipt of the budget support amount, and send such to the Ministry of Planning and Investment;

c/ After summarizing opinions of the Ministry of Finance under Point b of this Clause and opinions of related agencies, the Ministry of Planning and Investment shall assume the prime responsibility for reporting to the Prime Minister for approval the policy to receive the central budget support amount for the national target program, which must state principles, criteria, financial mechanism, list of projects that may use the budget support amount, and a tentative plan on allocation of funds for ministries, sectors and localities;

d/ The Prime Minister shall consider and decide on policy to receive the budget support amount, principles, criteria, financial mechanism, list of specific projects, and a tentative plan on allocation of funds for ministries, sectors and localities;

dd/ Based on the Prime Minister’s decision, the project-managing agency shall carry out procedures for appraisal and investment decision for specific projects that may use the budget support amount under the national target program in accordance with relevant regulations.

Article 10. Participation in regional programs or projects

1. In case it is impossible to identify the managing agency of a regional program or project: Based on a foreign donor’s proposal for Vietnam’s participation in a regional program or project, the Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with related agencies in, submitting the policy on Vietnam’s participation in the regional program or project to the Prime Minister for consideration and decision and to the managing agency of such program or project.

2. In case it is possible to identify the managing agency of a regional program or project: The managing agency shall send a request together with documents of the program or project of the foreign donor to the Ministry of Planning and Investment, which must clearly state benefits and obligations of Vietnam when participating in such program or project. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with related agencies in, submitting the policy on Vietnam’s participation in the regional program or project to the Prime Minister for consideration and decision.

3. In case a foreign donor provides ODA or concessional loans for formulation and implementation of programs or projects within the framework of a regional program or project: Based on the Prime Minister’s decision on the policy on Vietnam’s participation in a regional program or project as specified in Clause 1 or 2 of this Article, the managing agency shall formulate, appraise and decide to approve project documents for technical assistance projects to be funded with non-refundable ODA under Chapter III of this Decree; and formulate, appraise and submit to competent authorities for the latter to make investment policy decision and investment decision for  programs or investment projects to be funded with ODA or concessional loans in accordance with Chapter II of this Decree.

Article 11. The private sector’s access to ODA and concessional loans

1. The private sector may access ODA and concessional loans in accordance with policies on provision of ODA and concessional loans of foreign donors.

2. Forms of access to and use of ODA and concessional loans by the private sector:

a/ Access to ODA and concessional loans used by ministries, central bodies or provincial-level People’s Committees as funds for project preparation and support for bidding for investor selection, or as the State’s contributions to PPP projects under current regulations on PPP and specific treaties or specific agreements on ODA and concessional loans;

b/ Access to and use of ODA and concessional loans through managing agencies’ participation in the implementation of programs or projects on support for the private sector.

 

Chapter II

FORMULATION AND APPRAISAL OF, AND INVESTMENT POLICY DECISION AND INVESTMENT DECISION FOR, PROGRAMS AND INVESTMENT PROJECTS TO BE FUNDED WITH ODA OR CONCESSIONAL LOANS; PROGRAMS AND INVESTMENT PROJECTS TO BE FUNDED WITH NON-REFUNDABLE ODA, AND TECHNICAL ASSISTANCE PROJECTS TO BE FUNDED WITH NON-REFUNDABLE ODA IN PREPARATION OF INVESTMENT PROJECTS

Section 1

FORMULATION AND APPRAISAL OF, AND INVESTMENT POLICY DECISION FOR, PROGRAMS AND PROJECTS

Article 12. Competence to decide on investment policy for programs and projects to be funded with ODA or concessional loans

1. The competence to decide on investment policy for national target programs, national important projects and public investment programs to be funded with ODA or concessional loans must comply with Clauses 1 and 2, Article 17 of the Law on Public Investment.

2. The Prime Minister shall decide on investment policy for the following programs and projects:

a/ Programs and investment projects to be funded with ODA or concessional loans, except those specified in Clause 1 of this Article;

b/ Programs or investment projects to be funded with non-refundable ODA in the following cases: programs and group-A and group-B projects; programs and projects accompanied by policy frameworks; programs and projects in the fields of national defense, security and religious affairs; sector-wide approach programs; and procurement of goods subject to the Prime Minister’s permission;

c/ Technical assistance projects to be funded with ODA or concessional loans of foreign donors for preparation of investment projects.

3. Heads of managing agencies shall decide on investment policy for programs and group-C investment projects to be funded with non-refundable ODA.

Article 13. Proposals on programs and projects to be funded with ODA or concessional loans

1. The Prime Minister shall approve program and project proposals.

2. Order and procedures for approval of program or project proposals:

a/ Ministries, central agencies and localities shall formulate proposals on programs and projects to be funded with foreign ODA loans or concessional loans and send them to the Ministry of Planning and Investment, Ministry of Finance and related agencies in accordance with law; and clearly state reasons for making proposals to borrow loans accompanied with binding conditions of donors (if any);

b/ The Ministry of Finance shall assume the prime responsibility for identifying grant elements, evaluating impacts of new loans on public debt safety indicators, and determining the domestic financial mechanism for reporting to the Prime Minister in accordance with the Law on Public Debt Management and concurrently to the Ministry of Planning and Investment;

c/ The Ministry of Planning and Investment shall consult in writing related agencies about program and project proposals. After summarizing opinions of the Ministry of Finance under Point b of this Clause and opinions of related agencies, the Ministry of Planning and Investment shall evaluate the necessity of programs and projects; preliminarily evaluate the feasibility, socio-economic effectiveness, environmental impacts (if any) and impacts of programs and projects on medium-term public investment plans; and select appropriate program and project proposals and submit them to the Prime Minister for consideration and decision;

d/ The Prime Minister shall consider and approve a program or project proposal with the following contents: name of the program or project; name of the foreign donor or co-donors (if any); name of the managing agency; binding conditions of the foreign donor(s) (if any); expected objectives and scope of the program or project; expected implementation period; expected total funding amount and structure of funding sources; domestic financial mechanism; on-lending method; proposal on use of ODA loans or concessional loans for standby supplies and equipment  in particular cases (if any), and other related contents;

dd/ The Ministry of Planning and Investment shall officially notify the donor(s) of the Prime Minister’s decision approving the program or project proposal.

3. Dossiers of and time limits for considering program or project proposals:

a/ A dossier must comprise the program or project proposal, made according to the form provided in Appendix II to this Decree; the managing agency’s request for submission of the program or project proposal to a competent authority for approval; and other relevant documents (if any);

b/ The number of dossier sets to be sent to the Ministry of Planning and Investment is 8;

c/ The number of dossier sets to be sent to the Ministry of Finance is 3;

d/ The time limit for consideration and submission of a program or project proposal to the Prime Minister is 45 days after the Ministry of Planning Investment and Ministry of Finance receive a complete and valid dossier.

In case the dossier is invalid or contents of the program or project proposal do not conform to Clause 3 of this Article, the Ministry of Planning and Investment and the Ministry of Finance shall, within 5 days after receiving the dossier, request in writing the managing agency to finalize contents of the program or project proposal.      

4. Criteria for a program and project proposal to be selected:

a/ Being conformable with relevant strategies and master plans in accordance with the regulations on socio-economic development master plans and plans; public debt safety indicators and repayment capacity; orientations for attraction of ODA and concessional loans; policies and orientations for prioritized provision of ODA and concessional loans of foreign donors;

b/ Ensuring socio-economic and environmental effectiveness and sustainability;

c/ Being suitable to the capacity to balance ODA, concessional loans and counterpart funds;

d/ Not overlapping with contents of programs and projects of which proposals, investment policy or investment decisions have/has been approved.

Article 14. Order and procedures for making investment policy decisions for programs and projects to be funded with ODA or concessional loans

1. The order and procedures for making investment policy decisions for national target programs or national important projects to be funded with ODA or concessional loans must comply with Clause 5, Article 25 of the Law on Public Investment.

2. The order and procedures for making investment policy decisions for public investment programs to be funded with ODA or concessional loans falling under the competence of the Government must comply with Article 22, and Clause 6, Article 25, of the Law on Public Investment.

3. The order and procedures for making investment policy decisions for group-A projects to be funded with ODA or concessional loans must comply with Article 23, and Clause 7, Article 25, of the Law on Public Investment.

4. The order and procedures for making investment policy decisions for  programs and projects to be funded with ODA or concessional loans which falls under the competence of the Prime Minister, except group-A projects, must comply with Clause 8, Article 25 of the Law on Public Investment, specifically as follows:

a/ Managing agencies shall send to the Ministry of Planning and Investment investment policy proposal reports;

b/ The Ministry of Planning and Investment shall assume the prime responsibility for appraising investment policy proposal reports, funding sources and fund-balancing capacity for submission to the Prime Minister;

c/ The Prime Minister shall consider and decide on investment policy.

5. The order and procedures for making investment policy decisions for programs and projects falling under the competence of heads of managing agencies must comply with Clause 9, Article 25 of the Law on Public Investment, specifically as follows:

a/ Managing agencies shall consult the Ministry of Planning and Investment, Ministry of Finance and related agencies on investment policy proposal reports;

b/ Based on opinions of consulted agencies, managing agencies shall organize appraisal and decide on investment policy.

6. The Ministry of Planning and Investment shall officially notify foreign donors of decisions approving investment policy for programs or projects and request donation consideration.

7. In case there is/are a change(s) in contents of a prefeasibility study report or an investment policy proposal report as compared to contents of the approved program or project proposal: The managing agency shall add a detailed report on the change(s) to the request for appraisal of the prefeasibility study report or investment policy proposal report under Point b, Clause 1, Article 15 of this Decree.

8. The preliminary assessment of environmental impacts constitutes one of contents of prefeasibility study reports or investment policy proposal reports. Competent authorities shall base themselves on the preliminary assessment of environmental impacts to decide on investment policy under Article 99 of the Law on Public Investment. Contents of preliminary assessment of environmental impacts must comply with the Government’s regulations detailing the implementation of a number of articles of the Law on Public Investment.

Article 15. Dossiers, contents and time limits for appraisal of prefeasibility study reports or investment policy proposal reports of programs and projects to be funded with ODA or concessional loans

1. A dossier for appraisal of a prefeasibility study report or an investment policy proposal report of a program or project to be funded with ODA or concessional loans must comprise:

a/ A request, made according to the form provided in Appendix IVa to this Decree, for the competent authority to decide on investment policy for the program or project;

b/ The competent authority’s document on approval of the program or project proposal;

c/ The managing agency’s report on results of self-appraisal of the investment policy of the program or project;

d/ The prefeasibility study report or investment policy proposal report of the program or project, made according to the form provided in Appendix IIIa, IIIb or IIIc to this Decree;

dd/ A report on evaluation of the implementation of the program or project in the previous period (for programs and projects implemented since the previous period and carried forward to the subsequent period for implementation);

e/ Opinions of the provincial-level People’s Council, for group-A projects to be funded with ODA or concessional loans for which prefeasibility study reports are prepared by provincial-level People’s Committees under Point c, Clause 1, Article 23 of the Law on Public Investment;

g/ Other relevant documents (if any).

2. The number of dossier sets to be sent to the appraisal council or agency assuming the prime responsibility for the appraisal is at least 10.

3. Contents of appraisal of investment policy of a public investment program to be funded with ODA or concessional loans include:

a/ Conformity with criteria for identification of public investment programs;

b/ Compliance with regulations on contents of the dossier submitted for appraisal;

c/ Conformity with strategic objectives; regional and territorial socio-economic development plans; and relevant master plans in accordance with the planning law;

d/ Contents specified in Article 29 of the Law on Public Investment, of which the following basic contents of the program shall be appraised in detail: objectives, scope, scale and objects of investment, implementation period and schedule and fund allocation plan; funding sources and fund-balancing capacity; mobilization of other funding sources and resources;

dd/ Socio-economic efficiency, environmental protection and sustainable development.

4. Contents of appraisal of investment policy of a program or project to be funded with ODA or concessional loans include:

a/ Necessity of investment;

b/ Compliance with regulations on contents of the dossier submitted for appraisal;

c/ Conformity with strategic objectives; and relevant plans and master plans in accordance with the planning law;

d/ Conformity with criteria for classification of projects in accordance with the Law on Public Investment;

dd/ Contents specified in Articles 30 and 31 of the Law on Public Investment, of which the following basic contents of the program or project shall be appraised in detail: objectives, scale and form of investment, scope, location and to-be-used land area, implementation period and schedule, plan on selection of major technologies, environmental protection solutions, funding sources and fund-balancing capacity; fund recovery and repayment capacity in case of using loans; and fund allocation plan;

e/ Socio-economic efficiency, environmental protection and sustainable development.

5. In the course of appraising the prefeasibility study report or investment policy proposal report of a program or project, the agency assuming the prime responsibility for the appraisal shall consult the agency assigned to appraise funding sources and fund-balancing capacity of the program or project under Article 33 of the Law on Public Investment.

6. The time limit for appraisal of the investment policy proposal report or prefeasibility study report of a program or project, counted from the date the appraisal council or the agency assuming the prime responsibility for appraisal receives a complete and valid dossier, is:

a/ Sixty days, for national target programs;

b/ Forty-five days, for public investment programs (excluding national target programs);

c/ Forty-five days, for group-A projects;

d/ Thirty days, for projects other than those specified at Points a, b and c of this Clause;        

In case the dossier is invalid or contents of the program’s or project’s prefeasibility study report or investment policy proposal report do not conform with Articles 29, 30 and 31 of the Law on Public Investment, within 10 days after receiving the dossier, the appraisal council or the agency assuming the prime responsibility for appraisal shall send its written opinions to the appraisal-requesting agency for the latter to supplement the dossier or finalize the prefeasibility study report or investment policy proposal report.

7. In case of necessity to extend the time limit for appraisal of the program’s or project’s prefeasibility study report or investment policy proposal report, the appraisal council or the agency assuming the prime responsibility for the appraisal shall:

a/ Report to the Prime Minister to ask for permission to extend the time limit for appraising the prefeasibility study report or investment policy proposal report, for programs and projects subject to investment policy decision by the National Assembly, the Government or the Prime Minister; or,

b/ Report to the head of the managing agency to ask for permission to extend the time limit for appraising the investment policy proposal report, for programs and projects subject to investment policy decision by managing agencies;

c/ The extended time limit must not exceed the corresponding time limit specified in Clause 6 of this Article.

8. The appraisal councils or agencies assuming the prime responsibility for appraising prefeasibility study reports of group-A projects or investment policy proposal reports of programs or projects shall send appraisal reports to:

a/ Managing agencies and authorities competent to decide on investment policy, for public investment programs;

b/ The Prime Minister under Clause 4, Article 23 of the Law on Public Investment, for group-A projects falling under the competence of the Prime Minister;

c/ Appraisal-requesting agencies and authorities competent to decide on investment policy, for projects other than those specified at Points a and b of this Clause.

Article 16. Dossiers submitted to competent authorities and time limits for deciding on investment policy of programs and projects to be funded with ODA or concessional loans

1. A dossier submitted to the authority competent to decide on investment policy of a program or project to be funded with ODA or concessional loans must comprise:

a/ The documents specified in Clause 1, Article 15 of this Decree, of which contents of the request and prefeasibility study report or investment policy proposal report specified at Point a, Clause 1, Article 15 of this Decree must have been finalized based on the appraisal report of the appraisal council or the agency assuming the prime responsibility for appraisal;

b/ The appraisal report of the appraisal council or the agency assuming the prime responsibility for appraisal, on the investment policy of the program or project, made according to the form provided in Appendix IVb to this Decree.

2. The number of dossier sets to be submitted to the authority competent to decide on investment policy of the program and project specified in Clause 1 of this Article is 5.

3. The time limit for deciding on investment policy of a program or project, counted from the date the authority competent to decide on investment policy receives a complete and valid dossier, is:

a/ Twenty days, for public investment programs (excluding national target programs);

b/ Fifteen days, for group-A projects;

c/ Ten days, for projects other than those specified at Points a and b of this Clause.             

4. Within 15 days after a competent authority issues a decision on investment policy of a program or project, the managing agency shall send such decision to the Ministry of Planning and Investment and the Ministry of Finance.

Article 17. Activities to be carried out in advance

Activities to be carried out in advance in the stage of preparation for the implementation of a program or project using an investment preparation fund include:

1. Formulating and submitting a resettlement policy framework to a competent authority for approval in the course of appraisal of the feasibility study report, program or project documents and investment decision;

2. Working out a contractor selection plan; preparing a dossier of invitation for expression of interest, dossier of invitation to prequalification, bidding dossier and dossier of requirements.

Article 18. Principal contents of an investment policy decision of a program or project to be funded with ODA or concessional loans

1. Name of the program or project.

2. Name(s) of the foreign donor or co-donors.

3. Name of the managing agency.

4. Objectives and scope of the program or project.

5. Location.

6. Program or project implementation period.

7. Total funding amount and structure of funding sources, (calculated in Vietnam dong and converted from foreign currency(ies) of the foreign donor(s)), including:

a/ Non-refundable ODA, ODA loans, concessional loans;

b/ Counterpart fund.

8. Domestic financial mechanism and on-lending method.

9. Implementation method (for projects to be funded with non-refundable ODA).

10. Activities to be funded with ODA or concessional loans other than those specified in Clause 2, Article 6 of this Decree (if any).

Article 19. Adjustment of investment policy of programs and projects to be funded with ODA or concessional loans

1. The competence to decide on adjustment of investment policy of programs and projects must comply with Clause 1, Article 34 of the Law on Public Investment.

2. For public investment programs and national important projects:

a/ In case the adjustment of a public investment program leads to a change in principal contents of the investment policy decision specified in Article 18 of this Decree: The competence to decide on adjustment of investment policy must comply with Point a, Clause 2, Article 34 of the Law on Public Investment;

b/ In case the adjustment of a national important project leads to a change in principal contents of the investment policy decision specified in Article 18 of this Decree: The competence to decide on adjustment of investment policy must comply with the Law on Public Investment and the Government’s Decree on the order and procedures for appraisal of national important projects and investment monitoring and evaluation.

3. For programs and projects subject to investment policy decision by the Prime Minister:

a/ In case the project implementation period is adjusted without changing other principal contents of the investment policy decision; or ODA loans or concessional loans are reduced without changing other principal contents of the investment policy decision but giving rise to financial obligations: The managing agency shall send a request and a report on the adjustment reason to the Ministry of Planning and Investment for collection of opinions of the Ministry of Finance and submission to the Prime Minister for consideration and decision;

b/ In case the adjustment of a program or project leads to a change in principal contents of the investment policy decision other than those specified at Point a, Clause 3 of this Article: The managing agency shall modify the investment policy decision according to the order and procedures specified in Clause 4, Article 14 of this Decree. 

A dossier to be submitted to a competent authority and time limit for decision on adjustment of investment policy of a program or project must comply with Articles 15 and 16 of this Decree. The dossier must clearly state the reason for investment policy adjustment; adjusted contents compared to principal contents of the prefeasibility study report or investment policy proposal report.

4. In case the adjustment of a program or project subject to investment policy decision by the head of the managing agency leads to a change in principal contents of the investment policy decision: The managing agency shall adjust the investment policy according to the order and procedures specified in Clause 5, Article 14 of this Decree. 

5. In case the total investment amount of a program or project is adjusted due to exchange rate fluctuation or reduction of ODA or concessional loans without changing other principal contents of the investment policy decision specified in Article 18 of this Decree and giving rise to financial obligations, the managing agency is not required to comply with the order and procedures for decision on adjustment of investment policy.

Section 2

FORMULATION AND APPRAISAL OF, AND DECISION ON INVESTMENT IN, PROGRAMS AND PROJECTS

Article 20. Competence to decide on investment in programs and projects to be funded with ODA or concessional loans

1. The Prime Minister shall decide on investment in the following programs and projects to be funded with ODA or concessional loans:

a/ National target programs and national important projects for which investment policy has been decided by the National Assembly;

b/ Public investment programs for which investment policy has been decided by the Government;

c/ Programs and projects to be funded with ODA or concessional loans of foreign donors in the field of national defense, security or religious affairs, and other programs and projects specified by the Government.

  2. Heads of managing agencies shall decide on investment in programs and projects to be funded with ODA or concessional loans other than those specified in Clause 1 of this Article and be held responsible for investment efficiency of these programs and projects.

Article 21. Order of formulation and appraisal of, and decision on investment in, programs and projects to be funded with ODA or concessional loans

1. To comply with Article 41 of the Law on Public Investment.

2. Feasibility study reports of programs and projects shall be formulated under Article 44 of the Law on Public Investment and relevant regulations, with contents specified in forms provided by foreign donors taken into consideration, ensuring their consistency with contents of investment policy decisions and harmony between the process and procedures applied by Vietnam and those by foreign donors.

3. Dossiers and contents of, and time limits for, appraisal of, and decision on investment in, programs and projects must comply with Article 45 of the Law on Public Investment and the Government’s regulations detailing a number of articles of the Law on Public Investment, specifically as follows:

a/ For programs and projects wholly or partially funded with loans on-lent from the state budget, their owners shall enclose dossiers with documents proving their financial capacity, repayment plans and other documents as required by the law on public debt management;

b/ Foreign-language documents relating to programs and projects shall be enclosed with their Vietnamese translations;

c/ Within 15 days after a competent authority issues a decision on investment in a program or project, the managing agency shall notify the foreign donor and the project or program owner of such investment decision and, at the same time, send to the Ministry of Planning and Investment, the Ministry of Finance and related agencies such decision (the original or a notarized copy), enclosed with the approved feasibility study report of the program or project affixed with the managing agency’s seal on adjoining pages, for supervision and coordinated implementation.

Article 22. Adjustment of ODA or concessional loan-funded programs and projects

1. The competence to decide on adjustment of programs and projects must comply with Clause 3, Article 43 of the Law on Public Investment.

2. Programs and projects shall be adjusted in the cases specified in Clauses 1 and 2, Article 43 of the Law on Public Investment.

3. For national important projects, the adjustment shall be carried out under Article 43 of the Law on Public Investment and the Government’s Decree on the order and procedures for appraisal of national important projects and investment monitoring and evaluation.

4. For programs and projects of group A, B or C:

a/ Contents, order and procedures for formulation and appraisal of adjustments to these programs and projects must comply with Article 43 of the Law on Public Investment and the Government’s Decree detailing a number of articles of the Law on Public Investment;

b/ In case the adjustment of a program or project in the course of implementation leads to a change in principal contents of the investment policy decision: The managing agency shall adjust investment policy under Article 19 of this Decree before carrying out procedures for adjusting the program or project.

5. In case the adjustment of a program or project in the course of implementation leads to modification, supplementation or extension of a specific treaty or specific agreement on ODA or concessional loans:

a/ Based on the program’s or project’s adjusted investment policy decision or investment decision approved by a competent authority, the managing agency shall coordinate with the agency that has proposed the conclusion of the treaty or agreement on ODA or concessional loans in modifying, supplementing or extending such treaty or agreement;

b/ In case the adjustment of the program or project does not lead to a change in principal contents of the investment policy decision, the managing agency shall modify the investment decision after summing up opinions of the Ministry of Planning and Investment, Ministry of Finance and related agencies for use as a basis for amendment, supplementation or extension of the specific treaty or specific agreement on ODA or concessional loans.

 

Chapter III

FORMULATION AND APPRAISAL OF, DECISION ON IMPLEMENTATION POLICY FOR, AND APPROVAL OF DOCUMENTS OF, TECHNICAL ASSISTANCE PROJECTS AND NON-PROJECT ACTIVITIES TO BE FUNDED WITH NON-REFUNDABLE ODA

Article 23. Competence to approve implementation policy of technical assistance projects and non-project activities and documents thereof

1. The Prime Minister shall approve implementation policy of technical assistance projects and non-project activities to be funded with non-refundable ODA in the following cases: projects accompanied by policy frameworks; projects and non-project activities in the fields of security, national defense and religious affairs; procurement of goods subject to decision by the Prime Minister in accordance with relevant laws.

2. Heads of managing agencies shall:

a/ Approve documents of technical assistance projects and non-project activities based on the Prime Minister’s decisions on implementation policy, for the cases specified in Clause 1 of this Article; and the Prime Minister’s decisions on policy on Vietnam’s participation in regional programs or projects;

b/ Approve documents of technical assistance projects and non-project activities, for cases other than those specified in Clause 1 of this Article and not subject to the order and procedures for deciding on implementation policy.

Article 24. Formulation of documents of technical assistance projects and non-project activities

Managing agencies shall coordinate with foreign donors in formulating documents of technical assistance projects and non-project activities according to the forms provided in Appendices V and VI to this Decree.

Article 25. Order and procedures for deciding on implementation policy of technical assistance projects and non-project activities falling under the Prime Minister’s competence  

1. Managing agencies shall send to the Ministry of Planning and Investment a dossier of request for approval of implementation policy, accompanied by project or non-project activity documents.

2. Within 5 working days after receiving a valid dossier specified in Clause 1 of this Article, the Ministry of Planning and Investment shall send a request to related agencies for opinion. Within 10 days after receiving the Ministry of Planning and Investment’s request, the consulted agencies shall send their written opinions to the Ministry of Planning and Investment.

3. Within 5 working days after receiving written opinions of related agencies, the Ministry of Planning and Investment shall sum them up for submission to the Prime Minister for consideration and decision.

4. The Prime Minister shall consider and decide on implementation policy of a project or non-project activity, which must have the following contents:

a/ Name of the project or non-project activity;

b/ Donor and co-donors (if any);

c/ Objectives;

d/ Total funding amount and structure of funding sources (non-refundable ODA and counterpart fund);

dd/ Implementation method.

5. In case the contents of documents of a project or non-project activity remain incomplete after opinions of related agencies are assimilated, the Ministry of Planning and Investment shall send a request to the managing agency for finalization of such documents.

Article 26. Order and procedures for appraisal and decision on approval of documents of technical assistance projects or non-project activities

1. For the projects and non-project activities specified in Clause 1, Article 23 of this Decree, managing agencies are not required to organize appraisal. Heads of managing agencies shall base themselves on implementation policy decisions to decide on approval of project or non-project activity documents.

2. For the projects and non-project activities other than those specified in Clause 1, Article 23 of this Decree:

a/ A managing agency shall assume the prime responsibility for appraisal; send a request to the Ministry of Planning and Investment, Ministry of Finance and related agencies for opinion, accompanied by project or non-project activity documents and other relevant documents (if any);

b/ Within 10 days after receiving a valid dossier, the consulted agencies shall give their written opinions on contents of project or non-project activity documents and related necessary issues, focusing on necessity, objectives and expected main outcomes; funding sources, fund-balancing capacity and applicable financial mechanism; conditions of foreign donors (if any) and ability of the Vietnamese partner to satisfy such conditions;

c/ Contents of appraisal of a project or non-project activity include conformity of the project or non-project activity with development targets of the concerned ministries, sectors, localities, implementation units and beneficiaries; appropriateness of the implementation method; funding sources and fund-balancing capacity, applicable financial mechanism; rationality of budget structure for main items; commitments, prerequisites and other conditions of foreign donors and participants (if any); efficiency, ability to apply outcomes in practice, and sustainability upon completion; related parties’ opinions that are unanimous or remain divergent;

d/ A dossier for appraisal of a project or non-project activity must comprise the project owner’s request for approval of project or non-project activity documents; draft project or non-project activity documents; written opinions of related agencies; and other relevant documents (if any) such as the donor’s document on agreement with contents of the project or non-project activity, notice of or commitment to donation consideration, memorandum of understanding with the donor, and report of the appraisal expert team made at the request of the donor;

dd/ Based on appraisal results, the head of the managing agency shall decide to approve project or non-project activity documents;

e/ The time limit for appraising project or non-project activity documents is 20 days after the receipt of a complete and valid dossier;

g/ For a project or non-project activity with a non-refundable ODA amount not exceeding USD 200,000, the head of the managing agency shall approve project or non-project activity documents and is not required to collect opinions of related agencies.

3. After project or non-project activity documents are approved, the managing agency shall notify such to the Ministry of Planning and Investment, Ministry of Finance and related agencies together with the approved documents bearing the managing agency’s seal on adjoining pages and relevant documents for supervision and coordinated implementation.

4. Principal contents of a decision approving documents of a technical assistance project or non-project activity:

a/ Name of the project or non-project activity;

b/ Names of the foreign donor or co-donors (if any);

c/ Names of the managing agency and project owner;

d/ Implementation period and location;

dd/ Objectives, activities and expected outcomes;

e/ Management organization;

g/ Implementation mode;

h/ Total funding amount and structure of funding sources, including non-refundable ODA (in donors’ currencies and converted into Vietnam dong) and counterpart fund (in Vietnam dong);

i/ Other contents.

5. The Ministry of Planning and Investment shall officially notify decisions approving project or non-project activity documents to foreign donors and request donation consideration.

Article 27. Modification of implementation policy decisions and decisions approving documents of technical assistance projects or non-project activities

1. For an implementation policy decision:

a/ The managing agency shall send to the Ministry of Planning and Investment a notice of changes in contents of the implementation policy decision as specified in Clause 4, Article 25 of this Decree, enclosed with modified project or non-project activity documents;

b/ The Ministry of Planning and Investment shall assume the prime responsibility for collecting opinions of related agencies on relevant changes and exchange opinions with the foreign donor(s) on change of non-refundable ODA amount (if any) and sum up and submit such opinions to the Prime Minister;

c/ The Prime Minister shall consider and decide on modification of implementation policy of the project or non-project activity.

2. For a decision approving project or non-project activity documents:

a/ The managing agency shall send to the Ministry of Planning and Investment, Ministry of Finance and related agencies a notice of changes in contents of the decision approving project or non-project activity documents, enclosed with modified project or non-project activity documents;

b/ Based on opinions of the Ministry of Planning and Investment, Ministry of Finance and related agencies, the head of the managing agency shall decide on approval of modified project or non-project activity documents;

c/ For a project or non-project activity with a non-refundable ODA amount not exceeding USD 200,000, the head of its managing agency shall modify the decision approving project or non-project activity documents and is not required to collect opinions of related agencies;

d/ In case changes in contents of project or non-project activity documents make such project or non-project activity fall beyond the approval competence provided in Article 23 of this Decree, the managing agency shall carry out the procedures for deciding on implementation policy specified in Article 25 of this Decree;

dd/ For a project or non-project activity specified in Clause 1, Article 23 of this Decree, the head of the managing agency shall base himself/herself on the decision modifying implementation policy mentioned in Clause 1 of this Article to decide on approval of modified project or non-project activity documents and is not required to collect opinions of related agencies.

 

Chapter IV

CONCLUSION OF TREATIES AND AGREEMENTS ON ODA OR CONCESSIONAL LOANS

Section 1

CONCLUSION OF TREATIES ON ODA OR CONCESSIONAL LOANS

Article 28. Grounds for proposing conclusion of treaties on ODA or concessional loans

1. Grounds for proposing the conclusion of framework treaties on ODA or concessional loans include results of mobilization of funds, strategy for and policy on development cooperation, fields prioritized for use of ODA or concessional loans of between Vietnam and foreign donors or investment policy decisions for programs or projects if associated with specific programs or projects.

2. Grounds for proposing conclusion of specific treaties on ODA or concessional loans:

a/ For programs and projects to be funded with ODA loans or concessional loans, and programs and investment projects to be funded with non-refundable ODA: approved feasibility study reports of, and decisions on investment in, such programs and projects; the Prime Minister’s on-lending approval decisions (for programs and projects to be funded with on-lent loans);

b/ For technical assistance projects and non-project activities to be funded with non-refundable ODA: decisions approving project or non-project activity documents and such documents.

Article 29. Agencies proposing conclusion of treaties on ODA or concessional loans

1. The Supreme People’s Court, Supreme People’s Procuracy, State Audit Office of Vietnam, ministries, ministerial-level agencies and government-attached agencies are agencies proposing to the Government the conclusion of specific treaties on non-refundable ODA for programs or projects of their respective agencies, except the cases specified in Clause 3 of this Article.

2. The Ministry of Finance is the agency proposing to the Government the conclusion of framework treaties or specific treaties on ODA loans, concessional loans or non-refundable ODA for programs and projects to be funded with ODA or concessional loans, except non-refundable ODA specified in Clauses 3 and 4 of this Article.

3. The State Bank of Vietnam is the agency proposing to the Government the conclusion of specific treaties on non-refundable ODA not associated with loans of monetary or financial institutions and international banks for which it acts as the representative.

4. The Ministry of Planning and Investment is the agency proposing to the Government the conclusion of framework treaties or specific treaties on non-refundable ODA for programs and projects other than those specified in Clauses 1, 2 and 3 of this Article.

Article 30. Order and procedures for conclusion, amendment, supplementation and extension of treaties on ODA or concessional loans

1. The order and procedures for conclusion, amendment, supplementation and extension of treaties on ODA or concessional loans must comply with the Law on Treaties.

2. In case a treaty on ODA or concessional loans has to be concluded in the name of the Government to meet urgent requirements and such conclusion is approved by the competent agency, the negotiation and conclusion of such treaty shall be carried out as follows:

a/ In pursuance to Article 28 of this Decree and at the request of the managing agency, the Ministry of Finance shall request the foreign donor or lender to send the draft treaty;

b/ The Ministry of Finance shall collect opinions of the Ministry of Foreign Affairs, Ministry of Justice and related agencies on the draft treaty. The consulted agencies shall give their written opinions to the Ministry of Finance within 5 days after receiving a complete dossier of request for opinion;

c/ Based on opinions of related agencies, the Ministry of Finance shall formulate and submit to the Prime Minister a treaty negotiation plan. A dossier for the treaty negotiation must comply with Article 11 of the Law on Treaties;

d/ The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Foreign Affairs, Ministry of Justice and related agencies in, negotiating with the foreign donor or lender on the draft treaty; and promptly report to the Prime Minister on matters arising in the course of negotiation and propose solutions;

dd/ Based on negotiation results, the Ministry of Finance shall propose the Government to decide on the conclusion of the treaty with the foreign donor or lender. A dossier for treaty conclusion must comply with Clauses 1, 2 and 6, Article 17 of the Law on Treaties;

e/ Based on the Government’s decision, the Minister of Finance or person authorized by the Government shall conclude the treaty with the foreign donor or lender;

g/ Within 10 days after the mutual treaty is concluded in the country or after the treaty conclusion delegation returns to the country from abroad, the agency that has proposed the treaty conclusion shall send to the Ministry of Foreign Affairs the original of the treaty, and its Vietnamese translation in case the treaty is concluded only in a foreign language.   

3. In case the modification, supplementation or extension of a specific treaty on ODA or concessional loans concluded in the name of the Government is related to contents approved by the competent authority in the decision on investment policy adjustment; does not give rise to more repayment obligation of the Vietnamese Government or does not require conclusion of a new treaty for modification or supplementation: The Ministry of Finance shall decide not to collect opinions of the Ministry of Foreign Affairs, Ministry of Justice and related agencies upon proposing the Government to decide on the modification, supplementation or extension of the treaty. A dossier for modification, supplementation or extension of the treaty must comply with Clause 6, Article 54 of the Law on Treaties, except opinions of related agencies. If consulted, related agencies shall give their written opinions within 5 days after receiving a complete dossier of request for opinion.   

4. For programs and projects to be funded with ODA or concessional loans under different treaties concluded according to project phasing:

a/ For treaties concluded for the first loan: Clause 1 or 2 of this Article must be complied with;

b/ For treaties concluded for subsequent loans: Based on proposals of managing agencies on the need for subsequent loans; limits of ODA loans or concessional loans approved by competent authorities in investment decisions; project implementation progress and results of loan disbursement under concluded treaties, the Ministry of Finance shall assume the prime responsibility for, and coordinate with managing agencies and related agencies in, determining the values of subsequent loans, reach agreement with donors, and carry out the order and procedures specified in Clause 1 or 2 of this Article.

3. For treaties that require legal opinions of the Ministry of Justice, after receiving a complete and valid dossier in accordance with current regulations on provision of legal opinions, the Ministry of Justice shall carry out procedures for providing its legal opinions in accordance with law.

Section 2

CONCLUSION OF AGREEMENTS ON ODA OR CONCESSIONAL LOANS

Article 31. Grounds for proposing conclusion of agreements on ODA or concessional loans

1. For framework agreements on ODA or concessional loans: Grounds for proposing the conclusion of such an agreement include results of mobilization of funds, strategy for and policy on development cooperation, fields prioritized for use of ODA and concessional loans of Vietnam and foreign donors or decisions on investment in programs or projects if associated with specific programs or projects.

2. For specific agreements on ODA or concessional loans: Grounds for proposing the conclusion of such an agreement include framework treaty or framework agreement on ODA loans or concessional loans (in case of conclusion of such framework treaty or framework agreement) and decisions on investment in programs and projects.

3. For specific agreements on non-refundable ODA: In case donors request conclusion of agreements, grounds for proposing the conclusion of such an agreement include framework treaty on non-refundable ODA (in case of conclusion of such treaty) and project or non-project activity documents or feasibility study reports (for investment projects) approved by competent authorities. 

Article 32. Agencies proposing the conclusion of ODA or concessional loan agreements

1. The Supreme People’s Court, the Supreme People’s Procuracy, the State Audit Office of Vietnam, ministries, ministerial-level agencies, and government-attached agencies are agencies proposing and submitting to the Prime Minister the conclusion of specific agreements on non-refundable ODA for their programs and projects, except the case specified in Clause 3 of this Article.

2. The Ministry of Finance is the agency proposing and submitting to the Prime Minister the conclusion of framework agreements and specific agreements on ODA loans, concessional loans, and non-refundable ODA for programs and projects using ODA loans or concessional loans, except those using non-refundable ODA specified in Clauses 3 of this Article.

3. The Ministry of Planning and Investment is the agency proposing and submitting to the Prime Minister the conclusion of framework agreements and specific agreements on non-refundable ODA for the programs or projects not specified in Clauses 1 and 2 of this Article.

Article 33. Order and procedures for conclusion, amendment, supplementation and extension of agreements on ODA and concessional loans

1. The order and procedures for concluding an agreement on ODA loans or concessional loans are as follows:

a/ Pursuant to Article 31 of this Decree and at the request of the managing agency, the Ministry of Finance shall request the foreign donor or lender to send a draft agreement on ODA loans or concessional loans;

b/ The Ministry of Finance shall consult the Ministry of Foreign Affairs, the Ministry of Justice and related agencies on the draft agreement on ODA loans or concessional loans. The consulted agencies shall reply in writing to the Ministry of Finance within 5 days after receiving the consultation request and related documents;

c/ The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Foreign Affairs, the Ministry of Justice and other related agencies in, negotiating with the foreign donor or lender on the draft agreement on ODA loans or concessional loans;

d/ Based on the negotiation results, the Ministry of Finance shall propose the Prime Minister to issue a decision on the signing of the ODA loan or concessional loan agreement with the foreign donor or lender;

dd/ On the basis of the Prime Minister’s decision, the Minister of Finance or the person authorized by the Prime Minister to sign the agreement on ODA loans or concessional loans with the foreign donor or lender;

e/ For loan agreements under the blended funding mechanism: The Ministry of Finance shall comply with the order and procedures for conclusion specified in this Clause;

g/ For a program or project using ODA loans or concessional loans for which more than one ODA loan or concessional loan agreement will be concluded according to the program’s or project’s phasing schedule: Based on the loan value determined at the signed corresponding framework treaty, the Ministry of Finance shall assume the prime responsibility for, and coordinate with the managing agency and related agencies in, implementing the order and procedures for conclusion specified in this Clause.

2. The order and procedures for amending, supplementing or extending an ODA loan or concessional loan agreement are as follows:

a/ The managing agency shall send to the Ministry of Finance a request for amendment, supplementation or extension of the ODA loan or concessional loan agreement;

b/ The Ministry of Finance shall consult the Ministry of Foreign Affairs, the Ministry of Justice and other related agencies on the request for amendment, supplementation or  extension of the ODA loan or concessional loan agreement. The consulted agencies shall reply in writing to the Ministry of Finance within 5 days after receiving the consultation request and relevant documents;

c/ The Ministry of Finance shall report to the Prime Minister for approval the amendments or supplements to, or extension of, the ODA loan or concessional loan agreement;

d/ Based on the Prime Minister’s approval, the Ministry of Finance shall carry out procedures for amending, supplementing or extending the ODA loan or concessional loan agreement with the foreign donor or lender;

dd/ In case of amendment, supplementation or extension of the ODA loan or concessional loan agreement due to changes in the contents of the approved decision on investment policy of the program or project: The managing agency shall adjust the investment policy according to Article 19 and adjust the investment decision according to Article 22 of this Decree before carrying out the order and procedures for amending, supplementing or extending the ODA loan or concessional loan agreement under Points a, c and d of this Clause;

e/ In case of amending, supplementing or extending an ODA loan or concessional loan agreement in combination with amending, supplementing or extending the corresponding framework treaty already approved by a competent authority: The Ministry of Finance shall carry out the order and procedures for amending, supplementing or extending the ODA loan or concessional loan agreement according to Points c and d of this Clause.

3. The order and procedures for concluding, amending, supplementing or extending a non-refundable ODA agreement are as follows:

a/ The agency proposing the conclusion of the agreement shall discuss and reach agreement with the foreign donor on the draft agreement;

b/ The agency proposing the conclusion of the agreement shall consult the Ministry of Foreign Affairs, the Ministry of Justice and related agencies on the draft agreement. The consulted agencies shall reply in writing within 15 days after receiving the consultation request and relevant documents;

c/ The agency proposing the conclusion of the agreement shall exchange opinions with the foreign partner to finalize the draft agreement and submit the conclusion of the agreement to the Prime Minister;

d/ After obtaining the Prime Minister’s decision allowing the signing of the agreement, the head of the agency authorized by the Prime Minister shall sign the agreement with the foreign donor;

dd/ In case of amendment or supplementation of a non-refundable ODA agreement: Based on opinions of the Ministry of Foreign Affairs, the Ministry of Justice and related agencies, the agency proposing the conclusion of the agreement shall submit the amendment or supplementation of the agreement to the Prime Minister for consideration and decision.

4. In case the ODA or concessional loan agreement requires legal opinions of the Ministry of Justice, after receiving a complete dossier as prescribed by current regulations on issuance of legal opinions, the Ministry of Justice shall carry out procedures for issuance of legal opinions in accordance with law.

5. In case the donor does not request the signing of a non-refundable ODA agreement: On the basis of project or non-project activity documents approved by a competent authority, the managing agency or the State Bank of Vietnam (for international financial and monetary institutions and international banks represented by the State Bank of Vietnam) and the donor shall exchange documents on commitments on grant and receipt of non-refundable ODA for implementation of the project or non-project activity in accordance with relevant laws; make and send a certified true copy of the document to the Ministry of Planning and Investment, the Ministry of Finance and related agencies for supervision and coordination in implementation.

6. In case the donor requests the signing of an agreement on implementation of the project or non-project activity: The managing agency shall formulate, negotiate on the contents of, and sign the agreement with the donor on the principle that it is not contrary to the corresponding ODA or concessional loan treaty or agreement and relevant laws.

 

Chapter V

MANAGEMENT OF THE IMPLEMENTATION OF PROGRAMS, PROJECTS AND NON-PROJECT ACTIVITIES

Article 34. Forms of organization of management of programs, projects and non-project activities

Based on the scale, nature, specific conditions, capacity of organizing the management of programs and projects of their units and regulations on organization of management of ODA and concessional loans of foreign donors, investment deciders shall decide to apply one of the following forms of program or project management organization:

1. For programs and investment projects: The forms of management organization must comply with the laws on public investment management and construction investment management.

2. For a technical assistance project or non-projects activity using non-refundable ODA:

a/ The managing agency directly manages and administers the implementation or assigns an attached unit to act as the project owner which shall directly manage and administer the implementation of the program, project or non-project activity. For technical assistance projects and non-project activities each funded with a non-refundable ODA amount of USD 200,000 or less, managing agencies or project owners are not required to establish a project management unit but may use their professional apparatus to manage and administer the implementation of projects and non-project activities;

b/ The foreign donor directly manages the entire program, project or non-project activity: In case the program, project or non-project activity document or the specific treaty or agreement on ODA or concessional loans stipulates that the foreign donor directly manages the entire program, project or non-project activity, the head of the managing agency or the project owner shall assign an attached unit to coordinate with the foreign donor in supervising the progress and quality, and exploiting and using of outputs of the program, project or non-project activity;

c/ The foreign donor directly manages part of the program, project or non-project activity: In case the program, project or non-project activity document or the specific treaty or agreement on ODA or concessional loans stipulates that the foreign donor directly manages part of the program or project and the Vietnamese partner manages the rest, the managing agency or project owner shall decide to establish a project management unit to manage the work undertaken by the Vietnamese partner according to Vietnam’s current regulations and commitments with the foreign donor.

3. For other programs and projects, the managing agency shall decide to apply one of the following forms of management organization:

a/ Establishing a new project management unit;

b/ Using the existing project management unit to manage and implement a new program or project: The managing agency or project owner shall issue a decision assigning the existing project management unit to manage the implementation of the new program or project;

c/ The project owner manages and implements the program or project by itself.

4. Establishing a project management unit to manage and implement a program or project which has a large scale, applies high technology or is related to security or national defense; a program or project with specific features in terms of funding sources or implementation management model, thus requiring the establishment of a project management unit; or a program or project requiring the establishment of a project management unit in accordance with the relevant ODA or concessional loan treaty or agreement.

5. The project owner uses its attached professional apparatus that is fully qualified and capable to manage and implement the project, for small-scale projects; or projects with community participation.

6. Hiring a consultancy unit to manage part or the whole of the program or project implementation.

Article 35. Project management

1. Within 30 days from the date of issuance of the investment decision or the decision approving the project document, the head of the managing agency shall issue a decision to establish a project management unit according to the form provided in Appendix VII to this Decree. In case the project owner has full legal person status, the head of the managing agency may authorize the project owner to issue a decision on the establishment of the project management unit (except specialized project management units and regional project management units established under regulations on construction investment management).

2. In case of establishing a new project management unit as prescribed at Point a, Clause 3, Article 34 of this Decree: The decision on establishment of the project management unit must be enclosed with a document specifying the organizational structure; functions and tasks; responsibilities, powers and authorization of the project management unit; and assignment outlines for a number of holders of its key positions.

3. In case of using an existing project management unit to manage a new program or project as prescribed at Point b, Clause 3, Article 34 of this Decree: Pursuant to the decision on establishment of the existing project management unit, the head of the managing agency or the project owner shall supplement or adjust the functions and tasks of the existing project management unit, open a new account and make a new seal serving the management of the new program or project.

4. In case the project owner manages the program or project by itself as prescribed at Point c, Clause 3, Article 34 of this Decree: On the basis of the decision of the head of the managing agency assigning the project owner to take responsibility for managing the implementation of the program or project, within 30 days from the date of issuance of the investment decision, the project owner shall issue a decision assigning and additionally tasking its attached units and individuals to manage the program or project according to current regulations, including at least 1 officer in charge of management and 1 officer in charge of financial monitoring who shall work on a part-time or full-time basis and must possess professional expertise suitable to the positions they undertake.

5. Within 15 days from the date of issuance of the decision on establishment of the project management unit, the head of the managing agency or the project owner that has the legal person status and is authorized by the head of the managing agency shall issue the Regulation on organization and operation of the project management unit. In case the ODA or concessional loan treaty or agreement for the program or project contains provisions on the organizational structure, tasks and powers of the project management unit, these provisions must be concretized and fully reflected in the Regulation on organization and operation of the project management unit.

Article 36. Tasks and powers of managing agencies in program and project implementation management

1. To decide on the organizational apparatus in charge of managing program or project implementation, composed of the project owner, and program or project steering committee (in case of necessity).

2. To approve an overall plan on program or project implementation; to sum up and approve annual plans for program or project implementation.

3. To direct bidding work according to current regulations and ODA and concessional loan treaties and agreements regarding bidding.

4. To monitor and inspect the implementation of the plans; monitor and evaluate the implementation and disbursement, ensuring that the programs or projects are implemented on schedule, meet quality requirements and achieve set targets in accordance with the law on public investment and this Decree’s provisions on monitoring and evaluation.

5. To take responsibility for costs incurred due to subjective causes, loss, waste, corruption and violations in management and use of ODA and concessional loans under their management in accordance with the law on public investment.

6. To perform other tasks and exercise other powers in accordance with law and specific treaties and agreements on ODA or concessional loans for programs and projects.

Article 37. Tasks and powers of project owners in program or project implementation management

1. To organize the apparatus for program or  project management and implementation on the basis of decisions of managing agencies.

2. To be responsible for the efficiency in management and use of ODA, concessional loans and counterpart funds of programs or projects from the time of preparation and implementation to the time the programs or  project are put into operation and use.

3. To disburse funds for and manage finances and assets of programs or projects, in case project owners manage and implement programs or projects by themselves.

4. To prepare and submit to managing agencies for approval the overall plan and annual plans for program or project implementation.

5. To formulate quarterly operation plans, serving the administration, monitoring and evaluation of programs or projects.

6. To carry out bidding work in accordance with current regulations on bidding and specific treaties on ODA and concessional loans.

7. To negotiate, conclude, and supervise the performance of, contracts and handle arising problems according to their competence.

8. To coordinate with local administrations in organizing compensation, support and resettlement in accordance with law and specific treaties or agreements on ODA or concessional loans applicable to programs or projects (for construction investment projects).

9. To monitor and evaluate programs or projects in accordance with the regulations on monitoring and evaluation of public investment and the provisions of this Decree, ensuring that programs or projects are implemented on schedule, meet quality requirements and achieve set targets.

10. To perform accounting, bookkeeping, account finalization and audit of programs or projects in accordance with law; to make program or  project closure reports and account-finalization reports; to audit and hand over assets and output documents of programs or projects, and comply with provisions on project closure in treaties or specific agreements on ODA or concessional loans applicable to the programs or projects.

11. To take full responsibility for loss, waste, corruption and violations falling under their competence in organization of management of program or project implementation that cause economic, social or environmental damage, affecting overall objectives and effectiveness of the programs or projects.

12. For programs or projects using part or the whole of loans on-lent from the state budget, their owners shall fully and promptly repay on-lent amounts under on-lending contracts signed with the Ministry of Finance or on-lending agency.

13. To perform other tasks and exercise other powers as prescribed by law and specific treaties or specific agreements on ODA or concessional loans for programs and projects.

14. To notify the selected serving banks to the Ministry of Finance for the latter to carry out procedures for fund withdrawal and disbursement for their projects.

15. To be held responsible before law and managing agencies within the ambit of their rights and obligations in accordance with this Decree and other relevant regulations.

Article 38. Tasks and powers of project management units in managing the implementation of programs and projects

1. Tasks and powers of project management units shall be assigned by project owners under decisions on establishment of project management units. Project owners may authorize project management units to issue decisions or sign documents under the former’s authority in the course of program or project implementation management. The authorization must be specified in decisions on establishment of project management units or in specific authorization documents issued by project owners.

2. A project management unit may be assigned to manage more than one program or project but such must be approved by the project owner, ensuring that each program or project is not interrupted and managed and account-finalized in accordance with current regulations. In case of incapable of performing some management and supervision tasks, the project management unit may hire consultants to perform these tasks as long as such is approved by the project owner.

3. Project management units shall perform tasks assigned by project owners and report thereon to project owners, including:

a/ Formulating an overall plan and annual plans for implementation of programs or projects;

b/ Preparing for the implementation, and implementing, programs and projects;

c/ Carrying out activities related to bidding, contract management, and compensation, support and resettlement;

d/ Disbursing funds and managing finances and assets of programs and projects;

dd/ Monitoring and evaluating the implementation of programs and projects;

e/ Preparing for pre-acceptance testing and handover of outputs of programs or projects upon completion; completing the payment, account finalization, audit, and handover of assets of programs and projects; making a program or project closure report according to the form provided in Appendix X to this Decree and an account-finalization report of programs or projects; complying with provisions on project closure of treaties or agreements on ODA and concessional loans for programs and projects;

g/ Performing other tasks within the framework of programs and projects as assigned by  project owners.

4. To perform other tasks and exercise other powers as prescribed by law and specific treaties or agreements on ODA and concessional loans for programs and projects.

5. To be held responsible before the law and managing agencies within the ambit of their rights and obligations in accordance with this Decree and other relevant regulations.

Article 39. Regulation on organization and operation of project management units

1. Within 15 days from the date a competent authority issues the decision on establishment of a project management unit, the director of the project management unit shall submit to the managing agency or the project owner, in case the project owner is authorized by the managing agency according to Clause 1, Article 35, for the latter to approve the Regulation on organization and operation of the project management unit using the form provided in Appendix VIII to this Decree. The managing agency or project owner shall send this Regulation to the Ministry of Planning and Investment, the Ministry of Finance, related agencies and the foreign donor within 5 days from the date of approval of the Regulation.

2. For construction investment programs and projects, the Regulation on organization and operation of project management units must comply with the construction law.

3. Organizational structure of a project management unit:

a/ Holders of key positions of the project management unit appointed by the managing agency in its establishment decision include: director, deputy director (if any), and chief accountant or officer in charge of accounting. The director of the project management unit shall be held responsible before the project owner or managing agency for the organization and administration of the project management unit, and project implementation organization in accordance with law and the signed specific treaties or agreements on ODA and concessional loans;

b/ For a new project management unit: Based on the contents, scale, nature, scope of operation, method of the project implementation management organization, the organizational structure of the project management unit must have sufficient staffs who possess appropriate capacity and experience so as to ensure effective and sustainable project management. The director of the project management unit shall propose the organizational structure of the project management unit, which may be composed of functional units in charge of administration, personnel and training, planning, bidding, finance, and monitoring and supervision as stated in the Regulation on organization and operation of the project management unit;

c/ In case an existing project management unit is assigned to manage a new program or project: The director of the project management unit shall supplement and adjust the tasks in the Regulation on organization and operation of the project management unit, ensuring performance of assigned tasks, and submit the supplementations and adjustments to the managing agency or project owner for decision;

d/ In case the project owner manages the program or project by itself: The project owner shall assign in writing tasks to its staffs to participate in the management and implementation of the program or project.

4. Personnel of the project management unit shall be selected, appointed and dismissed by the director of the project management unit. Their functions, tasks, powers, and entitlements (salaries, bonuses, allowances, etc.) shall be specified in the terms on job assignment in conformity with their working positions and relevant laws. The selection, hiring and mobilization of staffs who are not on the payroll of the project owner or managing agency to work for the project management unit must comply with the approved program or project document and conform with relevant laws.

5. Seal and account of the project management unit:

a/ The project management unit may use its own seal as prescribed by law or the seal of the managing agency or project owner according to regulations of the managing agency or project owner to serve program or  project management and implementation work;

b/ The project management unit may open a Vietnam-dong account or foreign-currency account of the program or project at a commercial bank or State Treasury office for each funding source of the program or project in accordance with law and specific treaty or agreement on ODA and concessional loans signed with the foreign donor.

6. Operating funds of the project management unit: Operating funds of the project management unit shall be allocated from the source of counterpart funds reserved for preparation and implementation of the program or project as specified in Clause 2, Article 44 of this Decree or the source of non-refundable ODA in accordance with law and specific treaty or agreement on ODA or concessional loans signed with the foreign donor.

7. Management and use of assets handed over by the managing agency or project owner to the project management unit to serve program or  project management and implementation work:

a/ Assets within the framework of the program or project assigned by the managing agency or project owner to the project management unit to serve program or project management and implementation work must be used in an economical and effective manner for proper purposes and for eligible subjects as prescribed by law and the specific treaty or agreement on ODA or concessional loans signed with the foreign donor;

b/ In case a consultant, consultancy organization or contractor hands over, donates or transfers ownership of assets to the project management unit, the project management unit shall send a request to the managing agency or project owner to ask for the latter’s permission for management and use of such assets during implementation of the program or project and hand over such assets to the managing agency or project owner after the program or project closes.

8. Closure of the program or project and dissolution of the project management unit:

a/ The time of closure of an ODA- or concessional loan-funded program or project shall be specified in the program’s or project’s investment decision, decision approving the program or  project documents, and specific treaty or agreement on ODA or concessional loans signed with the foreign donor;

b/ Within 6 months after the program or  project closes, the project management unit shall make and send to the managing agency or project owner a program or project closure report for the project owner to submit it to the managing agency. The program or  project closure report shall be formulated on the basis of the evaluation report upon program or  project closure in accordance with law and the specific treaty or agreement on ODA and concessional loans;

c/ The project management unit shall hand over assets of the program or project that have been assigned by a competent authority to it for management and use to the managing agency or project owner in accordance with law;

d/ After the program or project closure report and account-finalization report are approved by the managing agency or project owner and the handover of assets to the managing agency or project owner is completed, the managing agency shall issue a decision on program or  project closure and a decision on dissolution of the project management unit;

dd/ In case it takes time to make account-finalization and complete the procedures for closing the project, the project management unit shall propose the managing agency or project owner to issue a decision allowing the extension of operation of the project management unit and allocate funds for these activities;

e/ In case the project management unit manages more than one program or project, the managing agency or project owner shall issue a closure decision for each specific program or project and, at the same time, adjust corresponding functions and tasks of the  project management unit.

Article 40. Hiring program or  project management consultants

1. Program or  project management consultancy organizations shall perform the jobs and commitments under contracts signed with project owners and abide by current relevant laws.

2. Project owners shall select program or  project management consultants through bidding and sign consultancy contracts according to current regulations. When applying the form of hiring program or  project management consultants, project owners shall designate a professional unit in their apparatus or a focal point to inspect and supervise the contract performance by consultants.

Article 41. Formulation, appraisal, approval and assignment of plans on public investment with foreign funding sources for ODA- or concessional loan-funded programs and projects

1. The formulation, appraisal, approval and assignment of plans on public investment with ODA and concessional loans for public investment projects must comply with Chapter III of the Law on Public Investment and the Government’s regulations detailing a number of articles of the Law on Public Investment.

2. ODA loans and concessional loans from foreign donors which are on-lent to public non-business units under the domestic financial mechanism must comply with treaties or agreements on ODA loans or concessional loans, the Law on Public Debt Management, and other relevant laws.

3. For programs and projects for which investment policy has been decided by competent authorities and new projects, the time for allocation of funds for project implementation must not exceed 6 years, for group-A projects, 4 years, for group-B projects, or 3 years, for group-C projects. In case of impossibility to comply with the above-said time limits, the Prime Minister shall decide on the time for allocation of funds for project implementation, for projects using central budget funds.

The implementation time of a program or project funded with ODA loans or concessional loans shall be counted from the time funds for the program or project are allocated by a competent authority.

Article 42. Formulation and approval of overall plans on implementation of programs and projects funded with ODA or concessional loans and counterpart funds

1. The overall plan on implementation of a program or project shall be formulated for the entire implementation period of the program or project and must cover all components, items, activity groups and corresponding funding sources (ODA, concessional loan and counterpart fund) and its tentative implementation schedule.

2. Within 30 days after signing a specific treaty or an agreement on ODA or concessional loans, based on the feasibility study report, approved program or project documents, program or project investment decision, and the specific treaty or agreement on ODA or concessional loans for the program or project, the project owner shall coordinate with the foreign donor in formulating or reviewing and updating the overall plan on program and project implementation before submitting it to the managing agency for consideration and approval. 

3. Within 5 working days after approving the overall plan on program or project implementation, the managing agency of such program or project shall send the approval decision enclosed with such overall plan to the Ministry of Planning and Investment, Ministry of Finance, related agencies and the foreign donor to serve the supervision, evaluation and coordinated implementation of the program or project. 

Article 43. Formulation and approval of annual plans on implementation of programs and projects funded with ODA or concessional loans and counterpart funds

1. Based on overall plans on program or project implementation approved by managing agencies, actual progress of disbursement and disbursement plans under specific treaties or agreements on ODA and concessional loans for programs or projects, project owners shall consider and submit to heads of managing agencies for approval annual plans on program or project implementation. Annual plans on implementation of ODA or concessional loan-funded programs or projects constitute part of annual public investment plans of managing agencies. 

2. An annual plan on program or project implementation must contain detailed information on the program’s or project’s components (technical assistance and construction investment ones), items and main activities, funding sources, including also counterpart fund, and tentative implementation schedule.

3. Once approved by managing agencies, annual plans shall serve as a basis for project owners to work out quarterly implementation plans to serve the administration, supervision and evaluation of program or project implementation.

4. Annually, at the time of formulating socio-economic development plans and state budget estimates under current regulations, managing agencies shall incorporate annual plans on program and project implementation in their annual public investment plans and budget plans. Based on annual budget plans of managing agencies, the Ministry of Planning and Investment shall sum up public investment funding plans and coordinate with the Ministry of Finance in submitting to the Government for consideration and approval annual socio-economic development plans and budget plans to be submitted to the National Assembly for passage. 

5. The process and procedures for assignment of annual plan tasks for program and project implementation must comply with current regulations on assignment of annual socio-economic development plan tasks.

6. Within 5 working days after approving an annual plan on program and project implementation, the project owner shall send the approval decision enclosed with such plan to the managing agency and, through the latter, to the Ministry of Planning and Investment, related agencies and the foreign donor to serve the supervision, evaluation and coordinated implementation of programs and projects.

7. For a program or project wholly funded with loans on-lent from the state budget: Annually, at the time of formulation of socio-economic development plans and state budget estimates, the project owner shall work out a plan on program and project implementation and submit to the managing agency for approval an ODA and concessional loan plan, which shall be later sent to the Ministry of Planning and Investment, Ministry of Finance and authorized on-lending agency for implementation monitoring and supervision. The managing agency and project owner shall self-balance counterpart funds according to the program or project implementation schedule. 

8. For a program or project partially funded with loans on-lent from the state budget: Depending on the nature of each program or project component (whole allocation or on-lending), the project owner shall apply the process of formulation and submission for approval of the program or project plan corresponding to each of its components specified in Clauses 1, 2 and 7 of this Article.

Article 44. Counterpart funds for program and project implementation preparation and implementation 

1. Sufficient counterpart funds shall be ensured on time according to schedules for program and project implementation preparation and implementation (covering also activities to be carried out in advance, if any). Sources and limits of and mechanism applicable to counterpart funds for a program or project must be suitable to the program’s or project’s expenditure items agreed upon between the managing agency and foreign donor and stated in the feasibility study report, appraised program or project documents and investment decision.

2. Counterpart funds shall be used for:

a/ Expenses for operation of the project management unit (salary, bonus, allowance, office, working tools and administrative expenses);

b/ Expenses for appraisal of designs, approval of total cost estimates, completion of investment and construction procedures and other necessary administrative procedures;

c/ Expenses for contractor selection;

d/ Expenses for conferences, workshops, professional training and coaching for program or project management and implementation;

dd/ Expenses for receipt and popularization of international technologies, experience and skills;

e/ Expenses for communication about and advertising of the program or project and community activities;

g/ Payment of taxes, customs charges and insurance premiums under current regulations;

h/ Payment of interests, deposits, commitment charges and other relevant charges payable to foreign partners;

i/ Expenses for equipment receipt and domestic transport (if any);

k/ Expenses for account finalization and verification of completed account finalization;

l/ Expenses for compensation, ground clearance and resettlement;

m/ Expenses for basic activities of the program or project (survey, technical design, construction; construction of a number of work items, procurement of equipment);

n/ Expenses for monitoring and evaluation activities; quality control and testing, pre-acceptance test, handover, account finalization and auditing of the program or project;

o/ Contingency expenses and other reasonable expenses.

3. For a program or project to be wholly funded with state budget allocations: The managing agency shall balance counterpart funds in its annual budget estimates under regulations on budget management decentralization and from other financial sources in accordance with law and clearly determine funding sources as sources of capital construction or non-business administrative funds corresponding to program or project expenditure items; ensure sufficient and prompt allocation of counterpart funds according to the schedule stated in the feasibility study report or appraised program or project documents and investment decision in accordance with the law on the state budget and the specific treaty or agreement on ODA or concessional loans for the program or project.

4. For a program or project to be wholly funded with on-lent loans:

a/ For a locality to be wholly funded with on-lent loans: Counterpart funds shall be allocated from the local budget;

b/ For an enterprise or a public non-business unit to be wholly funded with on-lent loans: The project owner shall self-allocate a counterpart fund or submit it to the managing agency for decision in order to ensure a sufficient counterpart fund for the program or project before signing an on-lending contract.

5. For a program or project that applies the mixed financial mechanism (to be funded with both state budget allocations and on-lent loans): The managing agency or project owner shall self-allocate a counterpart fund in accordance with relevant laws before signing an on-lending contract.

6. For a program or project to be funded with state budget allocation which is approved or concluded at a time other than the time of annual budget estimation, and not yet allocated with a counterpart fund: The managing agency shall send a written request to the Ministry of Planning and Investment and Ministry of Finance for decision according to their competence or for submission to competent authorities for consideration and decision on addition to annual budget estimates. 

In case the time of making a plan on counterpart fund for preparing and implementing a program or project considered for aid does not coincide with the time of making an annual budget plan, the managing agency shall balance a counterpart fund in its total allocated fund amount. In case the managing agency fails to self-balance a counterpart fund, it shall send a written request to the Ministry of Planning and Investment and the Ministry of Finance for consideration and submission to competent authorities for decision a fund advance and then clear the advanced amount against the amount stated in the subsequent annual plan.

7. Spending norms for expenses covered by counterpart funds must comply with state budget spending regimes and relevant laws.

Article 45. Taxes, charges and fees for programs and projects 

Taxes, charges and fees levied on programs and projects must comply with current regulations on taxes, charges and fees and treaties to which the Socialist Republic of Vietnam is a contracting party. In case provisions of a domestic law and a concluded treaty differ on a matter, those of the treaty shall prevail. 

Article 46. Compensation, support and resettlement 

Compensation, support and resettlement in the course of program or project implementation must comply with current regulations and treaties on ODA and concessional loans to which the Socialist Republic of Vietnam is a contracting party. In case provisions of a domestic law and a concluded treaty differ on a matter, those of the treaty  shall prevail.

Article 47. Bidding

1. The selection of contractors must comply with treaties between Vietnam and foreign donors. In case a treaty to which the Socialist Republic of Vietnam is a contracting member contains provisions on contractor selection which are different from those of the Bidding Law, the provisions of such treaty shall prevail. In case a treaty contains no provision on the application of procedures for contractor selection, the contractor selection must comply with the Bidding Law.

2. Procedures for delegation of powers for submission, appraisal and approval of bidding-related contents must comply with Vietnam’s bidding law. Appraisal and approval contents must comply with provisions of treaties under the principles specified in Clause 1 of this Article.

Article 48. Surplus funds

1. Surplus funds may only be used after sufficient funds are allocated for the completion of projects’ objectives or items of investment phasing for projects with numerous phasing loans.

2. In case of real necessity to use surplus funds to improve efficiency of an ongoing program or project without changing main objectives stated in the investment policy decision of the program or project:

a/ The managing agency shall take responsibility for necessity and efficiency of the use of surplus funds and send to the Ministry of Planning and Investment a written proposal on use of surplus funds, opinions approving the use of foreign donors’ surplus funds and relevant documents;

b/ The Ministry of Planning and Investment shall assume the prime responsibility for summing up opinions of the Ministry of Finance, related agencies and foreign donors for submission the Prime Minister for consideration and decision.

3. If wishing to use surplus funds for the implementation of a new program or project, the managing agency shall send a written request for use of these funds enclosed with a report on proposal of investment policy for the new program or project to the Ministry of Planning and Investment. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with related agencies in, reaching agreement with the foreign donor on the use of surplus funds and financial mechanism applied under current regulations and carry out procedures for decision on investment policy under Articles 14 thru 18 of this Decree.

4. For the cancellation of surplus funds, the managing agency shall sum up opinions of the Ministry of Planning and Investment and request the Ministry of Finance to cancel surplus funds of the program or project. Based on the managing agency’s proposal on cancellation of surplus funds, the Ministry of Finance shall notify the foreign donor of the cancellation of surplus funds.

In case a charge for cancellation of surplus funds or other charges arise(s), the managing agency shall sum up opinions of the Ministry of Planning and Investment and request the Ministry of Finance to cancel surplus funds of the program or project. Based on the managing agency’s proposal on cancellation of surplus funds, the Ministry of Finance shall report to the Prime Minister for permission for cancellation of surplus funds before notifying such to the donor.

Article 49. Management of construction, pre-acceptance test, handover, audit and account finalization

1. For construction investment projects, the appraisal of feasibility study reports, approval of construction investment projects, appraisal and approval of construction designs, grant of construction permits, work quality management, pre-acceptance test, handover, warranty and insurance of construction works must comply with current regulations on construction management and treaties on ODA or concessional loans to which the Socialist Republic of Vietnam is a contracting party. In case provisions of a domestic law and a concluded treaty differ on a matter, such treaty shall prevail.

2. After a technical assistance program or project is completed, the managing agency shall organize pre-acceptance test and take necessary measures to further operate it and comply with current regulations on management of its finances and assets.

3. The auditing and account finalization of programs and projects must comply with current regulations and treaties on ODA or concessional loans to which the Socialist Republic of Vietnam is a contracting party or at the request of foreign donors. In case provisions of a domestic law and a concluded treaty differ on a matter, those of the treaty shall prevail.

Article 50. Monitoring, examination, evaluation and supervision of ODA- or concessional loan-funded programs and projects

1. The monitoring, examination, evaluation and supervision of ODA- or concessional loan-funded programs or projects shall be carried out  as follows:

a/ The monitoring, examination, evaluation and supervision of ODA- or concessional loan-funded programs and investment projects must comply with Articles 69 thru 77 of the Law on Public Investment and relevant laws. In case provisions of a domestic law and a concluded treaty differ on a matter, those of the treaty shall prevail;

b/ The Ministry of Planning and Investment shall build, manage and operate the national information system and database on public investment, and the information system on investment supervision and evaluation.

c/ Ministries, central agencies and localities shall apply the national information system and database on public investment, and the information system on investment supervision and evaluation under their management.

2. The monitoring, examination, evaluation and supervision of independent technical assistance programs or projects funded with non-refundable ODA and not attached to any loans and non-project activities shall be carried out as follows:

a/ The monitoring and examination of programs, projects and non-project activities: Project owners shall monitor and examine the implementation of programs, projects or non-project activities on the basis of approved program, project or non-project activity documents in order to ensure that such programs, projects or non-project activities achieve set objectives and results and regularly report on monitoring and examination results to managing agencies;

b/ Evaluation of programs, projects and non-project activities: Within 3 months from the date of completion of a program, project or non-project activity, the project owner shall complete a program or project or non-project activity closure evaluation report, covering information on implementation process; results of the achievement of objectives; mobilized resources; benefits brought about by the program, project or non-project activity to eligible beneficiaries; impacts and sustainability, lessons drawn from the implementation, and necessary recommendations; and responsibilities of related agencies, organizations and individuals;

c/ The regime of reporting on the implementation of programs, projects or non-project activities of managing agencies and project owners: Managing agencies and project owners shall send reports in accordance with current laws. 

Chapter VI

USE BY STATE ENTERPRISES OF ODA LOANS OR CONCESSIONAL LOANS OF FOREIGN DONORS

Article 51. Fields of and conditions on use of foreign ODA loans or concessional loans

1. State enterprises may use ODA loans or concessional loans of foreign donors to invest in projects in the priority fields specified in Article 5 of this Decree in conformity with business lines stated in their establishment decisions or enterprise registration certificates.

2. Conditions on use of foreign ODA loans or concessional loans

a/ State enterprises using foreign ODA loans or concessional loans must be enterprises in which the State holds 100% of charter capital and subsidiaries of such enterprises.

b/ State enterprises may borrow total on-lent foreign ODA loans or concessional loans in accordance with the Government’s regulation on borrowing of on-lent foreign ODA loans or concessional loans;

c/ State enterprises shall accept to inscribe the increase in state capital amounts in enterprises for non-refundable ODA amounts accompanied with ODA loans or concessional loans (if any) for implementation of investment projects.

Article 52. Project proposals

1. Order and procedures for approval; dossiers and time limit for consideration; and criteria for selection of program or project proposals must comply with Article 13 of this Decree.

2. Managing agencies shall send to the Ministry of Planning and Investment and the Ministry of Finance proposals on foreign ODA or concessional loan-funded projects.

3. The Ministry of Finance shall assume the prime responsibility for identifying grant elements and assessing impacts of new loans on public debt safety indicators before reporting them to the Prime Minister in accordance with the Law on Management of Public Debts, and concurrently send reports thereon to the Ministry of Planning and Investment.

4. The Ministry of Planning and Investment shall summarize opinions of the Ministry of Finance and related agencies and submit them to the Prime Minister for consideration and decision.

5. The Prime Minister shall consider and approve proposals on ODA- or concessional loan-funded programs or projects of state enterprises under Clauses 1 and 2, Article 29 of the Law on Management of Public Debts and Clause 1, Article 13 of this Decree.

6. Based on the Prime Minister’s decisions approving project proposals, managing agencies shall assign capable agencies and organizations to prepare projects in accordance with relevant laws.

Article 53. Approval of investment policy

1. Competence to approve investment policy must comply with Articles 30, 31 and 32 of the Law on Investment.

2. Dossiers, order and procedures for approval of investment policy must comply with Articles 33, 34, 35 and 36 of the Law on Investment.

Article 54. Investment decisions

Competence, dossiers, order and procedures for deciding on investment in projects funded with ODA loans or concessional loans of foreign donors to be wholly on-lent to state enterprises must comply with the laws on enterprises, construction, management and use of state capital invested in production and business of enterprises and relevant laws.

Article 55. Conclusion, modification, supplementation or extension of treaties or agreements on ODA or concessional loans

The conclusion, modification, supplementation or extension of treaties or agreements on ODA or concessional loans must comply with Chapter IV of this Decree and Article 29 of the Law on Management of Public Debts.

Article 56. On-lending of ODA loans and concessional loans

The on-lending of ODA loans and concessional loans must comply with the Law on Management of Public Debts and the Government’s regulation on on-lending of foreign ODA loans and concessional loans.

Article 57. Adjustment of projects

1. The adjustment of projects must comply with Article 41 of the Law on Investment and the Government’s regulations detailing and guiding the implementation of a number of articles of the Law on Public Investment.

2. In case the adjustment of a program or project leads to an increase in ODA loans or concessional loans of foreign donors, the managing agency shall carry out procedures for adjusting the project proposal and approving investment policy under Articles 52 and 53 of this Decree.

Article 58. Setting of 5-year limits of on-lent loans and formulation of annual plans on on-lending of loans and annual limits of on-lent loans

The setting of 5-year limits of on-lent loans and formulation of annual plans on on-lending of loans and annual limits of on-lent loans must comply with the Law on Management of Public Debts and other relevant laws.

Article 59. Management, organization of implementation, supervision, evaluation and reporting regime

The management, organization of implementation, supervision, evaluation and regime of reporting must comply with current regulations.

 

Chapter VII

FINANCIAL MANAGEMENT OF ODA LOANS AND CONCESSIONAL LOANS 

Section 1 

OPENING AND MANAGEMENT OF PAYMENT ACCOUNTS

Article 60. Opening of payment accounts for ODA loan- or concessional loan-funded programs and projects at the State Treasury system and serving banks

1. ODA loan or concessional loan accounts:

a/ The state budget’s ODA loans and concessional loans shall be managed, recorded and monitored on accounts of the budget at each level;

b/ Project owners shall open funding accounts for their projects at the State Treasury or serving banks to receive ODA loans or concessional loans for spending on activities under programs or projects.

2. Counterpart fund accounts: Project owners shall open accounts at the State Treasury offices that are convenient for transactions (below referred to as the State Treasury offices where transactions are carried out) to control and disburse counterpart funds (domestic funds) of their projects or banks selected by themselves (in case enterprises borrow wholly on-lent loans). 

Article 61. Criteria for selection of a serving bank for an ODA loan- or a concessional loan-funded program or project 

1. Being a bank selected from among banks having experience in the management of ODA loan and concessional loan withdrawal based on a competent agency’s rating, and satisfying banking operation standards and prudential ratios in banking operations.

2. Having a system of branches meeting requirements of the program or project.

3. Undertaking to perform responsibilities of a serving bank specified in Articles 60, 62, 63, 64, 78 and 79 of this Decree.

Article 62. Responsibilities of serving banks

1. To carry out procedures for the Ministry of Finance or project owners to open ODA or concessional loan accounts for programs and projects in accordance with treaties or agreements on ODA or concessional loans concluded by competent authorities and Chapters VII and VIII of this Decree.

2. To monitor and manage accounts, carry out banking transactions, and collect charges under regulations; to report information on accounts of ODA loan- or concessional loan-funded programs and projects under Chapters VII and VIII of this Decree.

Article 63. Principles of opening and management of ODA loan or concessional loan advance-payment accounts

1. State Treasury offices where transactions are carried out or serving banks shall proceed with procedures for opening advance-payment accounts (transaction accounts) for project owners or the Ministry of Finance in conformity with payment requirements of projects, ensuring the direct flow of funds to projects without any intermediary accounts. In case a project is funded with more than one funding source, it is required to open separate accounts to monitor funds withdrawn from each source.

2. If the managing agency of a project assigns more than one unit to implement the project, the project owner shall open sub-accounts at the State Treasury office where transactions are carried out or at branches of the serving bank.

3. Currencies of accounts must be foreign currencies of loans (unless the opening of VND accounts is accepted by the Ministry of Finance).

4. Management of interests on advance-payment accounts:

a/ Interest amounts generated on advance-payment accounts shall be separately monitored and may be used to pay banking service charges under regulations. Banking service charges constitute an expense item of projects. If generated interest amounts are not enough to pay banking service charges, project owners shall estimate payable charge amounts and make payment with counterpart funds;

b/ Upon completion of activities using funding amounts on advance-payment accounts, for projects wholly funded with state budget allocations, project owners shall remit interest amounts left on advance-payment accounts to the state budget. For projects wholly funded with on-lent loans, interest amounts left on advance-payment accounts shall be considered revenues of project owners. For projects partially funded with on-lent loans, such amounts shall be distributed according to the on-lending ratio.

Article 64. Responsibilities of agencies where accounts of ODA loan- or concessional loan-funded programs or projects are opened 

1. At the request of a project owner that is also an account holder, the State Treasury or serving bank shall provide guidance on dossiers and procedures for opening payment accounts for the project and making payments and fund withdrawals and other operations under current regulations.

2. The State Treasury or serving bank shall guide and provide adequate information for the project owner to make payments through the State Treasury system or serving bank.

3. On a monthly basis as agreed upon by the agency where the program’s or project’s account is opened and account holder and at the request of the account holder, the agency where the program’s or project’s account is opened shall send to the account holder an advance-payment account statement which must provide information on every transaction, including amount in the donor’s currency, beneficiary, transaction date, applied exchange rate, equivalent amount in Vietnam dong, opening balance, spent amounts, and closing balance.

4. On a monthly basis as agreed upon by the agency where the program’s or project’s account is opened and account holder and at the request of the account holder, the agency where the program’s or project’s account is opened shall send to the account holder a notice of the interest amount (if any) generated on the advance-payment account of the project; collected banking service charge amount; difference between the interest amount and collected charge amount; and opening balance and closing balance.

5. Within 2 working days after receiving a notice of disbursement from the foreign donor, the agency where the program’s or project’s account is opened shall make a credit entry in the account of the project and inform the account holder thereof.

6. Before the 10th every month, State Treasury offices and serving banks shall send to the Ministry of Finance a report on the previous month’s activities of ODA loan or concessional loan advance-payment accounts opened in their entire systems. Such a report must specify names of  projects and project owners, accounts, sub-accounts (for each funding source); non-refundable ODA and loans, which are presented separately; opening balance, total amount withdrawn from the foreign donor’s loan in the period, total amount spent in the period, closing balance, and return of funds (if any) to the foreign donor; interest amounts generated on ODA loan or concessional loan accounts in the period; interest amounts used to pay banking service charges; and interest amount left at the end of the period.

7. To check account balances with project owners at the end of every budget year.

Section 2

ANNUAL FINANCIAL PLANS ON ODA LOANS OR CONCESSIONAL LOANS

Article 65.  Principles of formulation of annual financial plans for programs and projects to be funded with ODA loans or concessional loans

1. On the basis of medium-term plans approved by competent authorities, managing agencies shall prepare annual financial plans for programs and projects to be funded with ODA loans or concessional loans.

2. Annual financial plans shall be formulated in detail for each program or project or each concluded specific treaty or specific agreement on ODA loans or concessional loans, including foreign funds to be allocated from the central budget, foreign funds to be on-lent, counterpart funds to be allocated from the central budget, and counterpart funds to be allocated from local budgets. For projects applying the mechanism of pro rata partial on-lending of loans, the ratio of allocated funds and on-lent loans must comply with that stated in the financial mechanism approved by a competent authority.

3. The inclusion of ODA loans or concessional loans and counterpart funds in annual state budget estimates must conform with concluded specific treaties or specific agreements on foreign ODA loans and concessional loans and suit the actual disbursement capacity of ODA loan or concessional loan-funded programs and projects.

4. The formulation of annual financial plans for programs and projects to be funded with ODA loans or concessional loans must follow the process of formulation of annual state budget estimates provided in the Law on the State Budget and relevant laws.

Article 66. Incorporation of financial plans on ODA loans and concessional loans in annual state budget estimates

1. For programs and projects with development investment expenditures to be allocated from the state budget, ministries, central agencies and localities shall send their public investment plans to the Ministry of Planning and Investment and Ministry of Finance for incorporation in annual state budget estimates.

2. For loans on-lent to provincial-level People’s Committees, provincial-level People’s Committees shall formulate plans on withdrawal of on-lent loans and report them to competent authorities in accordance with the Government’s Decree on management of local administrations’ debts and report them to the Ministry of Finance for incorporation in state budget estimates and to competent authorities for decision.

3. For projects of enterprises and public non-business units to be funded with on-lent loans, their owners shall send annual plans on disbursement of on-lent loans to the Ministry of Finance for registration and concurrently to managing agencies and authorized on-lending agencies. The Ministry of Finance shall summarize these plans and propose the Government to decide on annual limits of ODA loans or concessional loans to be on-lent under regulations.

Article 67. Input of data and approval of annual estimates on the Treasury and Budget Management Information System (TABMIS)

1. For the central budget, based on the budget estimates approved by the National Assembly and assigned by the Prime Minister, managing agencies shall allocate the estimates from ODA loans, concessional loans and non-refundable ODA accompanied with loans of foreign donors and input data on the estimates on the TABMIS for the Ministry of Finance to examine and approve the estimates under regulations on operation and exploitation of the TABMIS and relevant guiding documents.

2. For local budgets, based on budget estimates approved by provincial-level People’s Councils and assigned by provincial-level People’s Committees, provincial-level Departments of Finance shall input data on estimates and certify plans on investment funds, estimates of recurrent expenditures to be funded by ODA loans, concessional loans and non-refundable ODA accompanied with loans and concessional loans of foreign donors as target transfers to local budgets; ODA loans and non-refundable ODA accompanied with foreign donors’ loans and concessional loans on-lent by the Government to local budgets and input data on the TABMIS under current regulations.

3. The input of data on estimates to the TABMIS must ensure correct codes of sources of ODA and concessional loans as allocations or target transfers to local budgets and ODA loans on-lent to localities; and compliance with funding items and levels assigned by competent authorities, for ODA and concessional loans as target transfers to local budgets.

Section 3

CONTROL OF SPENDING OF ODA LOANS AND CONCESSIONAL LOANS

Article 68. Principles of spending control

The control and payment of ODA loans and concessional loans (below referred to as spending control) must comply with current regulations applicable to state budget funds.

1. Spending control shall be applied to projects’ all expenditures from ODA loans or concessional loans, including expenditures made under letters of credit or directly by foreign partners under authorization, ensuring compliance with estimates and concluded treaties on ODA loans or concessional loans and current domestic regulations on financial management. 

2. Spending control of programs or projects funded with ODA loans or foreign concessional loans wholly allocated from the state budget or partially on-lent pro rata must comply with current regulations applicable to state budget funds within the estimates of foreign funds, approved annual plans on funds for on-lending, and the estimates of funds adjusted or supplemented in the year (if any) as approved by a competent authority.

3. The order, procedures and dossiers for spending control, requests for certification of valid expenditures from non-business funds, and project owners’ requests for payment of investment funds must comply with regulations on administrative procedures in the field of state treasury.

4. Time limit for spending control for advance expenditures and payments in a budgetary year:

a/ For advance expenditures under regulations: The spending control shall be implemented no later than December 31 of the planning year. Project owners shall send their dossiers and documents to spending control agencies before December 31 every year;

b/ Expenditures of payments for completed work volumes of a year shall be controlled until January 31 of the subsequent year.

5. For projects and project components funded by on-lent loans within the credit limit applicable to loan agreements signed in 2017 or earlier: Dossiers and procedures for spending control must comply with regulations of credit institutions using on-lent loans and concluded specific treaties or specific agreements on ODA loans or concessional loans. Credit institutions using on-lent ODA loans or concessional loans shall, when making and sending dossiers for foreign fund withdrawal, take responsibility before law for the correctness and validity of loans and credit expenses stated in expenditure statements submitted to the Ministry of Finance.

6. Dossiers and procedures for spending control of projects or project components wholly funded by on-lent loans: On-lending agencies shall apply Clause 3 of this Article and on-lending contracts.

7. Based on a project owner’s dossier of request for spending control for all forms of fund withdrawal, the spending control agency shall, based on the concluded treaty or agreement on ODA and concessional loans or the payment terms of the contract (number of payments, payment period, time of payment and payment conditions) or approved estimates for cases of non-contractual payments and the value of each payment, conduct spending control for the project owner. The project owner shall take responsibility for the method of contractor selection, the accuracy and lawfulness of the work volume accepted after test for payment, norms, unit prices, and cost estimates for different types of jobs, work quality and compliance with current regulations. The project owner shall manage and use funds for proper purposes and eligible subjects in an economical and efficient manner, and comply with regulations on the financial management regime applicable to ODA loans and concessional loans.

Article 69. Spending control agencies

1. State Treasury offices at all levels shall control payment dossiers of projects or project components funded by state budget allocations; projects applying the mechanism of partial allocation and pro rata partial on-lending of loans, and projects using loans on-lent from provincial-level People’s Committees.

2. On-lending agencies authorized by the Ministry of Finance shall control payment dossiers of projects or project components wholly funded by on-lent loans.

3. For programs and projects other than those specified in Clauses 1 and 2 of this Article, the Ministry of Finance shall appoint appropriate spending control agencies, adhering to the principle that a project’s single expenditure will be controlled by only one spending control agency.

Article 70. Spending control methods

1. Prior spending control means that spending control agencies examine and certify the lawfulness and validity of expenditures before project owners withdraw funds to make payment to contractors or beneficiaries. Prior spending control applies to expenditures other than those specified in Clause 2 of this Article.

2. Subsequent spending control means that spending control agencies examine and certify the lawfulness and validity of expenditures after project owners have withdrawn funds to make payment to contractors or beneficiaries. Subsequent spending control applies to:

a/ Payment from advance-payment accounts to contractors or suppliers, except advance-payment accounts held by the Ministry of Finance that are subject to prior spending control;

b/ Transfer of advanced amounts from advance-payment accounts to secondary accounts, for projects subject to multiple-level management;

c/ Expenditures paid from secondary accounts for project management activities specified in approved cost estimates; and,

d/ Payments under letters of credit (L/C) for goods and equipment procurement, except the final payment.

3. Within 30 days from the date of withdrawal of funds for payment, project owners shall finalize adequate payment documents and send them to spending control agencies for certification as a basis for making subsequent payments. When deeming it necessary, project owners may reach agreement with contractors on application of the prior spending control method to the expenditures specified in Clause 2 of this Article, then notify such to spending control agencies for coordination.

Section 4

WITHDRAWAL AND ACCOUNTING MANAGEMENT OF ODA LOANS AND CONCESSIONAL LOANS

Article 71. Forms of withdrawal of ODA loans and concessional loans

Forms of withdrawal of ODA loans and concessional loans include:

1. Withdrawal of funds to budgets: ODA loans or concessional loans shall be disbursed to the state budget with regard to direct budget support amounts or outcome-based financing method.

2. Program- or project-based withdrawal of funds, which may take one or several of the following forms: direct payment, payment under letters of credit, reimbursement, and advance-payment accounts.

Article 72. Time limits for processing requests for withdrawal of ODA loans or concessional loans

1. The time limit for the Ministry of Finance to process a request for fund withdrawal is 4 working days from the date of receipt of a complete dossier under regulations. The time limit for processing an expenditure report is 7 working days from the date of receipt of a complete dossier.

2. For ODA loan or concessional loan-funded programs and projects with their final disbursements completed in the year of project completion, their owners shall send to the Ministry of Finance requests for fund withdrawal before December 31 (of the planning year) to ensure that the disbursement is carried out before January 31 of the subsequent year. In case of a force majeure event that makes the disbursement impossible to be carried out before January 31 of the subsequent year (including the case in which the spending control has been carried out and the request for fund withdrawal has been sent before January 31 of the subsequent year but the donor has not notified the fund withdrawal), it is required to comply with Clause 2, Article 68 of the Law on Public Investment regarding the extension of time limits for implementation of and disbursement of funds for medium-term and annual public investment plans.

Article 73. Order and procedures for withdrawal of ODA loans and concessional loans

1. Order and procedures for withdrawal of funds provided as budget supports:

a/ The managing agency or project owner shall assume the prime responsibility for, or coordinate with the Ministry of Finance and related agencies in, fulfilling commitments of the Vietnamese partner as agreed with the foreign lender, ensuring satisfaction of the withdrawal prerequisites on fund withdrawal specified in the concluded treaty or agreement on ODA loans or concessional loans;

b/ For general budget supports, the Ministry of Finance shall prepare requests for fund withdrawal and send them to foreign lenders and transfer the withdrawn amounts to the state budget for use under the concluded treaty or agreement on ODA loans or concessional loans;

c/ For central budget supports for national target programs: After reaching agreement with managing agencies of component projects, the agency managing a national target program shall reach agreement with the Ministry of Finance on the time of withdrawal and amount to be withdrawn, ensuring that the disbursed amount has been included in the annual public investment plan and estimates of the program and component projects; and prepare dossiers of request for fund withdrawal and send them to the Ministry of Finance under the concluded treaty or agreement on ODA loans or concessional loans;

ODA loans or concessional loans disbursed to the state budget shall be distributed to component projects for use under the current regulations on management of state budget funds.

2. Order and procedures for withdrawal of funds provided by outcome-based financing method:

a/ The project owner or managing agency shall assume the prime responsibility for, and coordinate with related agencies in, fulfilling the disbursement indicators as agreed with the foreign lender as a basis for fund withdrawal. The project owner may receive an advance payment under regulations of the foreign lender to perform the agreed jobs so as to fulfill the commitments associated with the disbursement indicators;

b/ The project owner or managing agency shall assume the prime responsibility for, or coordinate with related agencies in, preparing reports and documents or providing documents proving the fulfillment of the disbursement indicators stated in the concluded treaty or agreement on ODA loans or concessional loans and send them to the foreign lender. The project owner shall prepare a dossier and request for fund withdrawal and send them to the Ministry of Finance as required by the foreign lender;

c/ The disbursed ODA loan or concessional loan amount shall be transferred to the State Treasury-opened account of the program- or project-implementing unit as agreed with the donor. The spending of the disbursed amount must comply with the current regulations on management of state budget funds. At the end of a budgetary year, the balance of foreign fund estimates shall be handled under the current regulations on management of state budget funds; the cash balance on the advance-payment account may be further used for the program’s or project’s activities in the subsequent budgetary year under regulations;

d/ When conducting withdrawal of funds provided by outcome-based financing method, the project owner shall apply the exchange rate between the Special Drawing Rights and Vietnam dong announced on the donor’s portal at the time of making a request for fund withdrawal.

3. Order and procedures for withdrawal of ODA loans or concessional loans provided by project financing method:

a/ Forms of fund withdrawal:

Direct payment, which means that money shall be directly paid to contractors and suppliers of a project;

Payment by letter of credit (L/C), which means payment by letter of credit issued by a bank as requested by a project owner that commits to pay a certain amount of money to the contractor or supplier if the latter can produce valid documents as required in the L/C;

Fund reimbursement, which means that a foreign donor makes payment to reimburse valid expenses already paid by the project owner for the project;

Advance-payment account, which means that a foreign donor transfers an advance amount to the project owner’s account opened exclusively for the project at a serving bank or State Treasury office for the project owner to pay valid expenditures of the project in order to reduce the frequency of fund withdrawals;

For fund withdrawal to a special account, the project owner shall send an expenditure report and finalized documents on a monthly basis. The time limit for sending finalized documents to the Ministry of Finance for expenditures made from the special account is 6 months. After 6 months, if the project owner fails to send finalized documents, subsequent disbursements shall be carried out by direct payment.

b/ After the foreign donor issues a notice stating that the Vietnamese partner has fulfilled the prerequisites for fund withdrawal under the treaty or agreement on ODA loans or concessional loans, the project owner or project management unit shall prepare a dossier of request for fund withdrawal according to the form issued by the foreign lender and appropriate to each form of fund withdrawal, and send it to the Ministry of Finance;

c/ In case the foreign lender requires additional documents or only approves part of the request for fund withdrawal, it/he/she or the Ministry of Finance shall send a notice thereof to the project owner for coordination in promptly processing reasonable requests of the foreign lender;

d/ Dossiers of request for fund withdrawal to be sent to the Ministry of Finance: For each fund withdrawal, the project owner or an authorized unit shall prepare 1 set of dossier of request for fund withdrawal appropriate to each form of fund withdrawal and send it to the Ministry of Finance. The form of dossier of request for fund withdrawal is provided in Appendix IX to this Decree. The project owner shall take responsibility for the accuracy and validity of the dossier of request for fund withdrawal, specifically as follows: regarding number of spending controls, to ensure that no double control or payment will be made for a single expenditure; the work volume accepted after test for payment, norms, unit prices, and cost estimates for different types of jobs, information on payment instructions to contractors and the dossier must comply with regulations on the financial management regime applicable to ODA loans and concessional loans;

dd/ In case the required conditions are fully satisfied, procedures for fund withdrawal by electronic means shall be carried out on the Ministry of Finance’s website in accordance with the Government’s regulations on provision of online information and public services on websites or portals.

4. Introduction and cancellation of specimen signatures in requests for withdrawal of ODA loans or concessional loans: The managing agency shall send to the Ministry of Finance a document introducing the specimen signature or notifying cancellation of the specimen signature of the representative of the project owner or the project management unit authorized by the project owner, for projects applying the mechanism of allocation of funds or pro rata partial on-lending of loans. The borrower of on-lent loans shall send to the Ministry of Finance a document introducing the specimen signature or notifying cancellation of the specimen signature of the representative of the project owner or the project management unit authorized by the project owner, for projects applying the mechanism of whole on-lending of loans.

Article 74. Principles of management of the accounting of ODA loans and concessional loans into the state budget

1. ODA loans and concessional loans used for offsetting the state budget deficit shall be fully and accurately accounted into the state budget.

2. For programs and projects applying the mechanism of whole allocation or pro rata partial allocation of funds with expenditures controlled at State Treasury offices, the State Treasury offices where transactions are conducted shall account into the state budget the amount of ODA loans and concessional loans provided under the allocation mechanism and that used for pro rata on-lending of loans (for provincial-level People’s Committees).

3. The accounting into the state budget shall be carried out on the basis of documents on disbursement of ODA loans or concessional loans handed over to loan users as notified by the foreign donor. For payments from advance-payment accounts, project owners shall make a request for accounting of ODA loans or concessional loans and send it to the State Treasury office for certification simultaneously with carrying out spending control procedures. For other forms of fund withdrawal, project owners shall make a request for accounting of ODA loans or concessional loans and send it to the State Treasury office for certification within 3 working days after receiving disbursement documents from the foreign donor, and to the Ministry of Finance for monitoring.

Article 75. Accounting of direct budget support amounts

Based on a money receipt or credit note issued by the serving bank, the State Treasury office shall account ODA loans or concessional loans as debit and as state budget revenue under regulations; in case a foreign-currency amount is transferred to the Centralized Foreign-Currency Fund, the State Treasury office shall account foreign-currency revenues or loans of the state budget under regulations.

Article 76. Accounting of ODA loans or concessional loans at State Treasury offices

State Treasury offices shall account ODA loans or concessional loans as revenues and expenditures for projects that use loans allocated from the central budget and on-lent loans with expenditures controlled in the State Treasury system, specifically as follows:

1. To conduct accounting according to codes of the sources of ODA loans or concessional loans allocated from the central budget, ODA loans or concessional loans as target transfers to local budgets, and ODA loans or concessional loans on-lent to localities, and conduct detailed accounting of non-refundable ODA accompanied with loans.

2. To account advance amounts as advance-payment expenditures; to account recovered advance-payments as decrease in advance-payment expenditures.

3. To account actual payments for completed work volumes as revenues and expenditures and conduct annual account-finalization of budget funds.

4. For expenditures under annual plans that have been controlled and disbursed before January 31 of the subsequent year, State Treasury offices shall account them as revenues and expenditures into the budgetary year of implementation. For expenditures controlled before and disbursed after January 31 of the subsequent year, project owners shall include them in the subsequent year’s plan for accounting them as revenues and expenditures.

5. Dossiers for accounting as revenues and expenditures must comply with the Government’s regulations on administrative procedures applicable to the State Treasury system. Project owners shall send dossiers to the State Treasury offices where transactions are conducted to certify the accounting before February 1 of the subsequent year at the latest.

Article 77. Accounting of ODA loans or concessional loans on-lent at the Ministry of Finance

1. For the Government’s ODA loans or concessional loans on-lent by the Ministry of Finance and loans on-lent by financial and credit institutions under the Ministry of Finance’s authorization to investment programs and projects: Based on the donor’s disbursement notice and the project owner’s disbursement statement, the Ministry of Finance shall account debt liabilities under regulations on accounting regime applicable to loans and debt repayments of the Government and local administrations; and make statistics of on-lent loans and government-guaranteed loans for monitoring.

2. For programs and projects for which the Ministry of Finance makes state budget accounting, when making any adjustment, based on the donor’s disbursement notice, the Ministry of Finance shall make an accounting adjustment statement and send sheets of this statement to on-lending agencies and project owners for the latter to adjust corresponding accounting figures in their reports on accounting and account finalization of foreign funds.

Article 78. Exchange rates for accounting and disbursement

1. For money amounts directly disbursed or paid by the donor with L/Cs in a foreign currency to contractors and suppliers, the accounting shall be carried out in Vietnam dong applying the early morning’s transfer bid rate of the serving bank, the bank where the State Treasury opens its account, or the Joint Stock Commercial Bank for Foreign Trade of Vietnam in case the serving bank does not open on the day the donor records a debit to the Government.

2. For money amounts directly paid by the donor in a currency other than the debt acknowledgment currency, the applicable exchange rate is the donor’s actual exchange rate between the debt acknowledgment currency and the payment currency.

3. In case the projects’ payments are made from the advance-payment accounts, for payments made in a currency other than the borrowing currency and payments in a foreign currency, the applicable exchange rate is the transfer bid rate of the equivalent foreign currency of the serving bank or the bank where the State Treasury opens its account at the time of  payment.

4. In case of bank transfer with advance amounts of revenues and expenditures recorded as actual expenditures when making payments for the projects’ completed work volume, the applicable exchange rate is the early morning’s transfer bid rate of the serving bank or the bank where the State Treasury opens its account at the time of making account records of advance amounts as revenues and expenditures for accounting of recovered advance amounts.

5. Project owners shall be held responsible for the determination and application of exchange rates when requesting the State Treasury offices where their transactions are conducted to control expenditures or requesting the accounting of foreign-currency payments as revenues and expenditures under regulations.

6. Project owners shall re-evaluate exchange rates applicable to foreign-currency monetary items of their project activities at the end of the accounting period before making financial statements or when so requested by the donors, and foreign-currency monetary items subject to re-evaluation of exchange rate according to the accounting regimes they are applying.

Article 79. Time limits for accounting of state budget funds

1. Expenditures from ODA loans or concessional loans shall be certified as having undergone control procedures and disbursed before January 31 of the subsequent year; the accounting shall be carried out within 5 working days at the State Treasury offices where transactions are conducted.

2. The State Treasury shall complete the accounting of expenditures from the sources of ODA loans and concessional loans arising in an accounting  year within 30 days from January 31.

3. The order and procedures for management of the accounting of ODA and concessional loans into the state budget must comply with the Government’s regulations on administrative procedures related to the State Treasury operations.

Section 5

REPORTING, ACCOUNTING, AUDIT, ACCOUNT FINALIZATION, AND INSPECTION

Article 80. Reporting of information about ODA loans or concessional loans

1. Managing agencies shall post up information about program and project proposals, investment policy proposal reports or prefeasibility study reports, project documents, and feasibility study reports approved by competent authorities on the national information system and database on public investment, and the Ministry of Finance’s website. The time limit for reporting is 10 days after receiving a written decision or approval of a competent authority.

2. Project owners or project management units shall send reports on overall plans on program or project implementation, annual estimated disbursement demands, assigned annual funding plans and adjustment or supplementation plans (if any), and the actual state of disbursement of ODA loans or foreign concessional loans to the national information system and database on public investment and the Ministry of Finance’s website. 

a/ For overall plans on program and project implementation and plans on supplementation or adjustment of the overall plans (if any), project owners or project management units shall make reports within 10 days after receiving approval documents of managing agencies;

b/ For annual estimated disbursement demands, assigned annual funding plans and plans on supplementation and adjustment thereof (if any), project owners or project management units shall make reports within 10 days after receiving approval documents of managing agencies;

c/ For actual state of loan disbursement, project owners or project management units shall report on actual state of disbursement of ODA loans or concessional loans in a month within 5 days from the end of the month on the national information system and database on public investment and the Ministry of Finance’s website.

3. The Ministry of Planning and Investment and Ministry of Finance shall issue forms of the reports specified in this Article.

Article 81. Reporting on disbursement and accounting of state budget funds

1. Within 15 days from the end of a quarter, project owners shall carry out expenditure control procedures at State Treasury offices where transactions are conducted, make a report on disbursement of ODA or concessional loans in the quarter and send it, together with statements of accounting of state budget revenues and expenditures certified by such State Treasury offices, managing agencies and the same-level finance agencies.

Enterprises and public non-business units receiving on-lent loans shall comply with disbursement reporting regime under the Government’s Decree on on-lending.

2. Within 30 days after ODA loans or concessional loans are completely disbursed, project owners shall submit a report on completion of withdrawal of ODA loans or concessional loans to the Ministry of Finance and managing agencies, which shall serve as a basis for  account finalization for projects.

3. Project owners shall prepare and send financial statements to foreign donors according to concluded treaties or agreements on ODA loans or concessional loans, feasibility study reports, and project documents (if any), and concurrently to managing agencies and same-level finance agencies for monitoring and timely direction of financial management of projects.

4. Annually, within 60 days after a reporting period ends, to serve the collation of accounting and actual disbursement figures, managing agencies shall prepare, sum up, and send to the Ministry of Finance and State Treasury offices a report on disbursement, and accounting of ODA loans or concessional loans as state budget revenues and expenditures.

5. The Ministry of Finance shall issue forms of reports on disbursement.

Article 82. Accounting, audit, and account finalization regimes

The accounting, audit, and account finalization regime applicable to ODA loan or concessional loan-funded programs and projects must comply with current regulations applicable to state budget funds, guidance of the Ministry of Finance, and specific requirements for ODA loans or concessional loans.

Article 83. Asset management

The management of public assets generated from ODA loans or foreign concessional loans must comply with the law on management and use of public assets.

Section 6

OTHER PROVISIONS ON FINANCIAL MANAGEMENT

Article 84. Specific provisions applicable to ODA loan or concessional loan-funded programs and projects

1. The level of advance payments for contracts, recovery of advance payments and payment retention ratio awaiting warranty must comply with contracts between project owners and contractors and conform with regulations on contracts (project owners may reach agreement with contractors on advance-payment guarantee for contracts with contract advance value not exceeding VND 1 billion). Project owners shall manage and recover advance amounts to contractors. In case of failure to recover such amounts, project owners shall themselves arrange funding sources for refund to donors.

2. For each time of requesting confirmation and payment of work warranty amounts for transfer to contractors, project owners shall make a table for monitoring the progress of transferring warranty amounts and accrued amounts to be transferred and send it to State Treasury offices for the latter to collate and confirm warranty amounts under contracts for project owners to refund such amounts to contractors.

Article 85. Provisions on financial management applicable to projects for which current  expenditures are stated in concluded specific treaties or specific loan agreements

1. For each program or project, its owner shall make and send to the Ministry of Finance a plan on disbursement and capital withdrawal in the planning year and the subsequent 2 years, separating funds from the sources of ODA loans, concessional loans, and non-refundable ODA for current expenditures and counterpart funds.

2. The Ministry of Finance shall include plans on ODA loans and non-refundable ODA together with loans for payment of current expenditures allocated to ministries, ministerial-level agencies, central bodies and provincial-level People’s Committees in annual state budget estimates.

3. After funds for payment of current expenditures are approved by competent authorities, related agencies shall input plans on current expenditures to the TABMIS in accordance with current regulations.

4. The control of projects’ expenditures or expenditures for activities covered by recurrent expenditure estimates must comply with the Law on the State Budget and guiding documents.

5. Projects having solely recurrent expenditures must apply the non-business administrative accounting regime. For projects having both investment expenditures and recurrent expenditures, their owners shall propose managing agencies to deicide to apply an appropriate accounting regime.

6. Within 6 months after completing disbursement, for ODA or concessional loan-funded projects that are allocated funds for payment of recurrent expenditures, project management units shall make an account finalization report upon project closure, separating funds from each source (non-refundable ODA, ODA loan, concessional loan, counterpart fund), on the basis of summing up all account finalization data of every year during the project implementation period sent to managing agencies by agencies competent to notify the results of approval of account finalization statements. Managing agencies shall sum up and send information thereon to the Ministry of Finance.

7. Project owners (state budget user) shall formulate and send annual account finalization statements or annual financial statements to managing agencies (direct superior accounting unit) or send them to finance agencies (if having no superior accounting unit) in accordance with the law guiding the non-business administrative accounting regime. The approval, appraisal and notification of annual final accounts must comply with the Ministry of Finance’s regulations on approval, appraisal, notification and summarization of annual account finalization statements.

 

Chapter VIII

FINANCIAL MANAGEMENT OF NON-REFUNDABLE ODA

Article 86. Principles of financial management of non-refundable ODA

1. In case non-refundable ODA amounts are managed by Vietnam partners, the estimation, control of expenditures, accounting, revenue and expenditure recording, and account finalization must comply with the law on the state budget and this Decree’s provisions on financial management. For arising amounts not yet included in estimates allocated and assigned under plans by competent authorities, project owners shall make additional estimates in accordance with the law on state management and relevant laws.

2. For non-refundable ODA amounts directly managed and implemented by donors: Managing agencies shall be held responsible for management of such amounts in accordance with the concluded treaties or international agreements on non-refundable ODA, program or project documents or feasibility study reports; comply with their functions and tasks; and abide by current regulations on receipt of non-refundable ODA. In case donors transfer the ownership of assets and equipment of programs or projects to project owners, the latter shall carry out procedures to establish ownership over the assets in accordance with current regulations.

3. For non-refundable ODA amounts provided under the blended funding mechanism: To comply with the provisions on financial management of ODA loans and concessional loans in Chapter VII of this Decree.

4. For non-refundable ODA amounts granted for the purpose of emergency aid:

a/  For non-refundable ODA amounts granted as emergency aid for the purpose of provision of relief and remediation of disaster consequences: To comply with the Government’s regulations on receipt, management and use of international emergency aid for relief and remediation of disaster consequences;

b/ For other emergency aid amounts: Tto comply with this Decree.

5. In case the financial management provisions in this Chapter differ from those of concluded treaties on non-refundable ODA, the latter will prevail.

Article 87. Opening of payment accounts for a non-refundable ODA-funded program or project

1. Counterpart fund account: The project owner shall open an account at the State Treasury office where transactions are conducted to control and make payments from the source of counterpart funds of the project.

2. Non-refundable ODA account: The project owner shall open an account to receive non-refundable ODA at a State Treasury office where transactions are conducted or at a commercial bank. The order and procedures for opening of accounts at the State Treasury offices and the management and use of accounts must comply with current regulations.

Article 88. Formulation of financial plans for non-refundable ODA

1. Based on decisions on approval of project or non-project activity documents or program or project investment decisions; and treaties or agreements on non-refundable ODA (if any), project owners shall formulate 3-year and annual plans on revenues and expenditures from the source of non-refundable ODA in accordance with the Law on the State Budget and relevant laws, and send them to managing agencies for summarization.

2. Annual estimates of revenues and expenditures from the source of non-refundable ODA shall be formulated in detail for each donor, program, project or non-project activity, and treaty or agreement on non-refundable ODA.

3. The formulation, summarization, submission, approval, assignment and adjustment of plans on non-refundable ODA must comply with the following provisiions:

a/ Non-refundable ODA used for payment of investment expenditures must comply with the law on public investment;

b/ Non-refundable ODA used for payment of recurrent expenditures must comply with the law on the state budget;

c/ For technical assistance projects and non-projects activities funded with non-refundable ODA which are provided in kind, competent authorities shall formulate and decision on assignment of estimates or adjusted estimates in a year only in case it is possible to determine the value of assets and goods provided as aid.

4. On the basis of the annual funding limit assigned by competent agencies, managing agencies shall allocate funds to each program, project and non-project activity and notify detailed allocation plans to the Ministry of Finance and the Ministry of Planning and Investment.

5. Managing agencies shall direct and organize the implementation of estimates and report the implementation of plans on revenues and expenditures from the source of non-refundable ODA in accordance with current regulations.

Article 89.  Control of expenditures, disbursement, accounting and recording of revenues and expenditures from the source of non-refundable ODA in cash

1. Project owners shall control expenditures at the State Treasury in accordance with regulations on state budget management. The order and procedures for control of expenditures, accounting and recording of revenues and expenditures from the source of non-refundable ODA must comply with the law on administrative procedures in the field of State Treasury operations.

2. An expenditure control dossier sent to the State Treasury for the first time must comprise:

a/ A competent authority’s decision on assignment or additional assignment of estimates;

b/ Certified true copies of the decision approving the program or project document or program or project investment decision, and the program or project document or feasibility study report already approved;

c/ Certified true copies of the specific treaty or specific agreement on non-refundable ODA and documents on exchange of opinions on the non-refundable ODA-funded project;

d/ Contracts on procurement of relevant goods and services (if any). A foreign-language contract shall be enclosed with its Vietnamese translation bearing the project owner’s signature and seal. The project owner shall take responsibility before law for the correctness and accuracy of the Vietnamese translation;

dd/ The project owner’s request for certification of valid expenditures from the source of non-business funds or request for payment of investment funds in accordance with the Government’s regulations on administrative procedures in the field of State Treasury operations.

3. The dossiers for each payment sent to the State Treasury must comply with regulations applicable to expenditures from state budget funds.

4. Disbursement of non-refundable ODA in cash for programs or projects: Based on results of expenditure control, and at the request of project owners, State Treasury offices or commercial banks where the projects’ accounts are opened shall conduct disbursement for the projects in accordance with law; and monthly notify the Ministry of Finance of the amount of disbursed non-refundable ODA of each account holder for each program or project.

5. Recording of revenues and expenditures for projects:

a/ Every month or when a revenue or an expenditure arises, on the basis of results of expenditure control and request for recording of revenues and expenditures from the source of non-refundable ODA sent by the project owner, the State Treasury office shall concurrently record revenues and expenditures in accordance with law. In case the project owner opens an account for ODA funds at the commercial bank where the project’s account is opened, it shall enclose the above-mentioned dossier with a statement of documents on payment from such account;

b/ The State Treasury office shall account expenditures into the state budget based on the law-prescribed state budget index’s contents on expenditures from the source of aid. Advance payments made under regulations shall be accounted as expenditure for advance payments. Recovered advance payments shall be accounted as decrease in advance payments. Payments for completed work volumes shall be accounted as actual revenues and expenditures and be subject to annual state budget account finalization;

c/ The time of accounting must comply with current regulations applicable to state budget funds.

6. The payment of advance amounts and control of expenditures from the source of non-refundable ODA in cash must comply with current regulations applicable to state budget funds.

7. Interests on deposits from the source of non-refundable ODA generated on deposit accounts must be separately accounted and may be used to pay banking service charges under regulations. Banking service charges constitute an expenditure of projects.

8.  Upon completion of spending activities on a non-refundable ODA account at a commercial bank or State Treasury office where the project account is opened, if there is no commitment in the relevant treaty or agreement on non-refundable ODA on the use of deposit interests from aid, the project owner shall pay the whole amount of interests on the deposit account to the state budget in accordance with current regulations. The use of deposit interests  must comply with the laws on public investment and the state budget.

Article 90. Receipt of non-refundable ODA provided in goods or services

1. The receipt of aid goods imported from foreign countries must comply with the Customs Law, Law on Import Duty and Export Duty and Law on Tax Administration. In addition to the import dossier as prescribed by the laws on customs and import duty and export duty, a dossier sent to a customs office for customs clearance for imported aid goods must comprise:

a/ The relevant specific treaty or specific agreement on non-refundable ODA or document on exchange of opinions on commitment on provision and receipt of non-refundable ODA: 1 copy self-certified by the importer;

b/ The decision approving the project or non-project activity document or program investment decision and the project document or approved feasibility study report: 1 true copy certified by a competent agency in accordance with relevant laws.

2. A dossier for tax refund or tax exemption for goods and services domestically purchased with non-refundable ODA sent to tax offices must comprise:

a/ The relevant specific treaty or specific agreement on non-refundable ODA or document on exchange of opinions on commitment on provision and receipt of non-refundable ODA: 1 copy;

b/ The decision approving the project or non-project activity document or program investment decision and the project document or approved feasibility study report: 1 copy;

c/ Other papers related to tax refund or tax exemption as prescribed by law;

d/ A request for certification of valid expenditures from the source of non-business funds  and the project owner’s request for payment of investment funds in accordance with the Government’s regulations on administrative procedures in the field of State Treasury operations (in case non-refundable ODA funds are directly managed by Vietnamese partners).

3. After goods are delivered and received, the project or non-project activity owner shall make a dossier and send it to the State Treasury office for recording of state budget revenues and expenditures in accordance with law. A dossier for recording of revenues and expenditures must comprise:

a/ The relevant specific treaty or specific agreement on non-refundable ODA or document on exchange of opinions on commitment on provision and receipt of non-refundable ODA: 1 true copy certified by a competent agency as prescribed by relevant laws;

b/ The decision approving the project or non-project activity document or program investment decision and the project document or approved feasibility study report: 1 true copy certified by a competent agency as prescribed by relevant laws;

c/ A request for recording of revenues and expenditures in accordance with the Government’s regulations on administrative procedures applicable to the field of State Treasury operations;

d/ For imported goods: Contracts, bills of lading or other transport documents of equivalent validity, commercial invoices or imported goods declarations if there is no commercial invoice: 1 true copy certified by a competent agency in accordance with relevant laws. For domestically purchased goods: purchase and sale contracts, value-added tax invoices, and goods delivery records: 1 true copy certified by a competent agency as prescribed by relevant laws;

dd/ A competent authority’s decision on assignment of estimates or adjusted estimates of non-refundable ODA, in case of possibility to determine the value of aid goods and aid provided in kind.

4. For imported goods, the values used for recording of revenues and expenditures by State Treasury offices are prices exclusive of taxes, fees and charges in accordance with law.

 

Chapter IX

TASKS, POWERS AND RESPONSIBILITIES OF AGENCIES AND ORGANIZATIONS IN MANAGING AND USING ODA AND CONCESSIONAL LOANS

Article 91. Tasks and powers of the Ministry of Planning and Investment

1. To assume the prime responsibility for formulating strategies and policies on development cooperation with foreign donors; and orientations for attraction, management and use of ODA and concessional loans of foreign donors.

2. To assume the prime responsibility for formulating and submitting for promulgation, or promulgating, legal documents on management and use of ODA and concessional loans according to its competence.

3. To assume the prime responsibility for determining demand for development investment funds from the source of ODA and concessional loans; to summarize and submit to the Prime Minister proposals on ODA loan- or concessional loan-funded programs and projects.

4. To assume the prime responsibility for, and coordinate with related agencies in, appraising funding sources for and fund-balancing capacity of ODA- or concessional loan-funded investment projects.

5. To assume the prime responsibility for, and coordinate with related agencies in, proposing to the Government the conclusion of framework and specific treaties and framework agreements on non-refundable ODA specified in Clause 4, Article 29 of this Decree; to propose to the Prime Minister the conclusion of framework and specific agreements on non-refundable ODA specified in Clause 3, Article 32 of this Decree.

6. To summarize and submit to the Prime Minister for consideration and decision investment policy for ODA- or concessional loan-funded programs and projects falling under the competence of the Prime Minister, excluding group-A projects; to send to foreign donors official notices of approved program or project proposals, investment policy decisions, and requests for consideration for donation.

7. To summarize and submit to the Prime Minister for consideration and decision policy on implementation of non-refundable ODA-funded technical assistance projects and non-project activities falling under the competence of the Prime Minister; to send to foreign donors official notices of approved projects or non-project activities and requests for consideration for donation after the implementation policy and documents of technical assistance projects or non-project activities are decided by competent authorities.

8. To coordinate with the Ministry of Finance in formulating framework and specific treaties and agreements on ODA loans and concessional loans.

9. To coordinate with the State Bank of Vietnam in formulating treaties on non-refundable ODA not accompanied by loans with international financial and monetary institutions.

10. To coordinate with the Ministry of Finance and related agencies in identifying the grant element and assessing impacts of new loans on public debt safety indicators and the domestic financial mechanism applicable to programs and projects in accordance with law.

11. To supervise, evaluate, examine and inspect ODA- or concessional loan-funded programs and projects in accordance with the law on monitoring and evaluation of public investment and management and use of ODA and concessional loans.

12. To act as the focal point in solving difficulties and problems during program and project implementation, and matters involving many ministries and sectors in order to ensure implementation progress and promote disbursement of ODA and concessional loans; to propose to the Prime Minister for decision measures to handle matters related to ODA and concessional loans falling under the competence of the Prime Minister.

In cases of necessity, to assume the prime responsibility for forming interdisciplinary working teams to directly work with managing agencies, project owners, project management units and foreign donors in order to consider, assess and timely solve difficulties under its competence.

13. To submit to the Prime Minister biannual and annual reports and irregular reports on mobilization, management and use of ODA and concessional loans; to recommend solutions for removing difficulties arising in the course of program and project implementation.

Article 92. Tasks and powers of the Ministry of Finance

1. To coordinate with the Ministry of Planning and Investment and related agencies in formulating strategies and policies on development cooperation with foreign donors.

2. To assume the prime responsibility for preparing contents concerning conditions on use of funds, domestic financial mechanism and financial management of programs and projects; and financial appraisal of projects funded by on-lent loans.

3. To assume the prime responsibility for identifying the grant element, assessing impacts of ODA loans and concessional loans on public debt safety indicators and determining the domestic financial mechanism applicable to ODA loan- or concessional loan-funded programs and projects.

4. To assume the prime responsibility for, and coordinate with related agencies in, proposing to the Government the conclusion of framework and specific treaties on ODA loans, concessional loans and non-refundable ODA for ODA loan- or concessional loan-funded programs and projects specified in Clause 2, Article 29 of this Decree; to propose to the Prime Minister the conclusion of framework and specific agreements on ODA loans, concessional loans and non-refundable ODA for ODA loan- or concessional loan-funded programs and projects specified in Clause 2, Article 32 of this Decree.

5. To coordinate with the Ministry of Planning and Investment in appraising funding sources and ability of fund-balancing of ODA loan- or concessional loan-funded investment projects.

6. To officially represent “the borrower” before foreign donors with regard to ODA loans or concessional loans in the name of the State or the Government.

7. To summarize and submit to the Prime Minister for decision the cancellation of surplus funds; and send to donors official notices of cancellation of surplus funds as specified in Clause 5, Article 47 of this Decree.

8. To carry out financial management of programs and projects:

a/ To assume the prime responsibility for, and coordinate with related agencies in, guiding financial management of programs and projects;

b/ To provide guidance on forms and reports for financial management of programs and projects in accordance with current laws and treaties and agreements on ODA and concessional loans signed with foreign donors;

c/ To allocate funds from the state budget and other sources for repayment of ODA loans and concessional loans when they become due;

d/ To monitor and supervise financial management of ODA and concessional loans and accounting of state budget funds related to these funding sources;

dd/ To report on fund disbursement and withdrawal and repayment with regard to ODA and concessional loans in accordance with the laws on public investment and public debt management and current regulations;

e/ To assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment in, adequately and promptly arranging counterpart funds from the source of non-business administrative funds in order to prepare and implement programs or projects eligible for central budget allocations in annual funding plans;

g/ To organize on-lending and recovery of on-lent funds of programs and projects eligible for on-lending from the state budget.

Article 93. Tasks and powers of the State Bank of Vietnam

1. To coordinate with the Ministry of Planning and Investment and related agencies in formulating strategies and policies on development cooperation with foreign donors, and orientations and plans on attraction, coordination, management and use of ODA and concessional loans; to analyze and assess use efficiency of these funding sources.

2. To coordinate with the Ministry of Planning and Investment and Ministry of Finance in appraising ODA, concessional loans and counterpart funds and capacity to balance these funding sources (for funds from the World Bank, Asian Development Bank, and other international financial and monetary institutions and international banks for which the State Bank of Vietnam acts as a representative). 

3. To assume the prime responsibility for, and coordinate with related agencies in, proposing to competent authorities the conclusion of treaties on non-refundable ODA not accompanied by loans with international financial and monetary institutions specified in Clause 3, Article 29 of this Decree.

4. To coordinate with the Ministry of Finance in proposing to competent authorities the conclusion of treaties and framework and specific agreements on ODA loans and concessional loans with international financial and monetary institutions and international banks for which the State Bank of Vietnam acts as a representative.

5. To give opinions on banks eligible for acting as serving banks for ODA loan- or concessional loan-funded programs and projects.

Article 94. Tasks and powers of the Ministry of Justice

1. To appraise draft treaties on ODA and concessional loans in accordance with law.

2. To participate in negotiations and contribute opinions on contents of draft treaties and agreements on ODA and concessional loans.

3. To contribute opinions on investment policy proposal reports of programs and projects on cooperation with foreign donors in the field of law.

4. To appraise documents of technical assistance projects and non-project activities on cooperation in legal matters with foreign donors subject to the Prime Minister’s approval in accordance with the law on management of international cooperation in legal matters; to give opinions on programs, projects and non-project activities on  cooperation in legal matters subject to approval of managing agencies.

Article 95. Tasks and powers of the Ministry of Foreign Affairs

1. To coordinate with related agencies in formulating and implementing guidelines and orientations for ODA and concessional loan mobilization as well as counterpart policies on the basis of general external relation policies; to participate in ODA and concessional loan mobilization.

2. To coordinate with the Ministry of Planning and Investment and related agencies and direct representative missions of the Socialist Republic of Vietnam in foreign countries or at international organizations in mobilizing ODA and concessional loans in line with guidelines and orientations on mobilization as well as orientations and plans on attraction, coordination, management and use of ODA and concessional loans in each period.

3. To participate in negotiations and contribute opinions on draft treaties and agreements on ODA and concessional loans; to give opinions on proposals on conclusion of treaties and agreements on ODA and concessional loans.

4. To carry out external procedures for conclusion and implementation of treaties; to organize preservation, copying and announcement of treaties on ODA and concessional loans in accordance with the Law on Treaties.

5. To grant authority for signing of agreements on ODA and concessional loans.

6. To participate in program and project evaluation at the request of competent agencies.

7. To monitor and examine the performance of procedures for conclusion and implementation of treaties and agreements on ODA and concessional loans in accordance with law.

Article 96. Tasks and powers of other ministries, ministerial-level agencies and government-attached agencies

1. To coordinate with the Ministry of Planning and Investment and related agencies in formulating strategies, master plans and plans on attraction, coordination, management and use of ODA and concessional loans; to formulate policies and methods to coordinate, and improve use efficiency of, ODA and concessional loans in the fields under their respective management.

2. To formulate program and project proposals, investment policy proposal reports or prefeasibility study reports, and documents of projects and non-project activities, and submit them to competent authorities for decision or approval according to their competence.

3. To coordinate with proposing agencies in proposing to competent authorities the conclusion of specific treaties or agreements on ODA or concessional loans for programs and projects under their management in accordance with Clauses 2, 3 and 4, Article 29, and Clauses 2 and 3, Article 32, of this Decree, and implement such treaties or agreements in accordance with law.

4. To propose to the Government the conclusion of specific treaties on non-refundable ODA specified in Clause 1, Article 29 of this Decree and organize the implementation of such treaties in accordance with the law on treaties; to propose to the Prime Minister the conclusion of agreements on non-refundable ODA specified in Clause 1, Article 32 of this Decree, and organize the implementation of such agreements in accordance with law.

5. To perform the state management of ODA and concessional loans in sectors or fields under their respective management in accordance with law.

6. To ensure publicity and transparency and take responsibility for implementation of, and fund disbursement for, programs and projects, and efficiency in the use of ODA and concessional loans of programs and projects they directly manage and implement.

Article 97. Tasks and powers of provincial-level People’s Committees

1. To coordinate with the Ministry of Planning and Investment, other ministries, sectors and related agencies in formulating strategies, orientations and plans on attraction, coordination, management and use of ODA and concessional loans; to formulate policies and measures for coordinating and improving efficiency in the use of ODA and concessional loans in their respective localities.

2. To formulate program and project proposals, investment policy proposal reports or prefeasibility study reports, and project and non-project activity documents and submit them to competent authorities for decision or approval according to their competence.

3. To coordinate with proposing agencies in proposing to competent authorities the conclusion of specific treaties or agreements on ODA or concessional loans for programs and projects under their management in accordance with Clauses 2, 3 and 4, Article 29, and Clauses 2 and 3, Article 32, of this Decree, and implement such treaties or agreements in accordance with law.

4. To coordinate with the Ministry of Planning and Investment in proposing to the Prime Minister the conclusion of specific treaties on non-refundable ODA specified in Clause 4, Article 29 of this Decree and organize the implementation of such treaties in accordance with the law on treaties; and the conclusion of agreements on non-refundable ODA specified in Clause 3, Article 32 of this Decree, and organize the implementation of such agreements in accordance with law.

5. To direct and organize land recovery, compensation and support and resettlement for programs and projects in their respective localities in accordance with law and treaties on ODA and concessional loans to which the Socialist Republic of Vietnam is a contracting party.

6. To perform the state management of ODA and concessional loans in their respective localities in accordance with law.

7. To ensure publicity and transparency and take responsibility for implementation of, and fund disbursement for, programs and projects as well as efficiency in the use of ODA and concessional loans for programs and projects they directly manage and implement.

8. To arrange sufficient funds for repayment of debts owed to the central budget on schedule in order to pay foreign debts for programs and projects applying the mechanism of on-lending of ODA and concessional loans from the central budget to provincial-level budgets.

 

Chapter X

IMPLEMENTATION PROVISIONS

Article 98. Transitional handling

1. For ODA loan- or concessional loan-funded programs and projects on the lists already approved by competent authorities, the amendment or adjustment of investment policy in the course of implementation, if necessary, must comply with this Decree’s provisions on adjustment of investment policy.

2. Programs and projects of which proposals or investment policy have or has been approved before the effective date of this Decree may further proceed with subsequent procedures in accordance with this Decree.

3. Non-refundable ODA-funded technical assistance programs and projects for preparation and support of implementation of investment projects and independent non-refundable ODA-funded technical assistance projects and non-project activities having program or project documents approved by competent authorities before the effective date of this Decree may further proceed with subsequent procedures in accordance with this Decree.

4.  In case non-refundable ODA-funded technical assistance projects and non-project activities having implementation policy and project or non-project activity documents approved before the effective date of this Decree are adjusted in the course of implementation but the adjustment does not make these projects or activities become subject to approval of implementation policy as specified in Clause 1, Article 23 of this Decree, managing agencies shall proceed with the procedures for adjustment of project or non-project activity documents in accordance with Clause 2, Article 27 of this Decree. In case the adjustment makes the technical assistance projects and non-project activities become subject to approval of implementation policy as specified in Clause 1, Article 23 of this Decree, managing agencies shall proceed with the procedures for approval and adjustment of investment policy in accordance with Articles 25, 26 and 27 of this Decree.

5. Concluded specific treaties on ODA and concessional loans may be further implemented but any amendments or supplementations must comply with this Decree.

6. Managing agencies of ongoing umbrella projects may not allocate and assign funding plans to component projects.

7. Adjustment of investment policy:

a/ For umbrella programs or projects of which the list of donations or investment policy has been approved by competent authorities, the adjustment of investment policy must comply with provisions of this Decree. Managing agencies of component projects of an umbrella program or project shall send documents together with explanatory reports and relevant dossiers and documents to the managing agency of the umbrella program or project for the latter to summarize and proceed with procedures for adjustment of investment policy under regulations;

b/ For projects of which ODA loans or concessional loans are wholly on-lent to state enterprises and the list of donations or project investment policy has been approved by competent authorities before the effective date of this Decree: The adjustment of investment policy and use of surplus funds to improve the efficiency of a project must comply with the provisions of Chapter II of this Decree on the principle that the previous managing agency will propose the adjustment; authority having decided on investment policy or having made investment decision will be competent to decide on adjustment of investment policy or adjustment of investment decision. Cases of using surplus funds for new projects must comply with provisions of Chapter VI of this Decree.

8. For non-refundable ODA-funded programs, projects and non-project activities approved before the effective date of this Decree, the financial management must comply with the current law on state financial management of foreign non-refundable aid belonging to state budget revenues.

Article 99. Organization of implementation

1. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related organizations and individuals shall implement this Decree.

2. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with related agencies in, guiding the implementation of this Decree.

Article 100. Implementation provisions

1. In case the legal documents referred to in this Decree are replaced, amended or supplemented, the replacing, amending or supplementing documents shall prevail.

2. The on-lending of loans from the sources of ODA loans or concessional loans by state enterprises must comply with the provisions of Chapter VI of this Decree.

3. This Decree takes effect from the date of signing and replaces the Government’s Decree No. 56/2020/ND-CP of May 25, 2020, on management and use of official development assistance and concessional loans of foreign donors.-

On behalf of the Government
For the Prime Minister
Deputy Prime Minister
PHAM BINH MINH

 

[1] Công Báo Nos 01-02 (01/01/2022)

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