Decision No. 24/2006/QD-BXD dated August 21, 2006 of the Ministry of Construction promulgating the Regulation on management and use of Official Development Assistance (oda) sources of the Construction Ministry

DECISION

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

THE MINISTER OF CONSTRUCTION

Pursuant to the Government's Decree No. 36/2003/ND-CP of April 4, 2003, defining the functions, tasks, powers and organizational structure of the Ministry of Construction;

At the proposal of the directors of the International Cooperation Department and the Legal Department,

DECIDES:

Article 1.- To promulgate together with this Decision the Regulation on management and use of official development assistance (ODA) sources of the Construction Ministry.

Article 2.- This Decision shall take effect 15 days after its publication in "CONG BAO."

Article 3.- The directors of the International Cooperation Department, the Legal Department and the Ministry's Office, and the heads of the units under the Ministry of Construction shall have to implement this Decision.

REGULATION

ON MANAGEMENT AND USE OF OFFICIAL DEVELOPMENT ASSISTANCE (ODA) SOURCES OF THE CONSTRUCTION MINISTRY
(Promulgated together with the Construction Minister's Decision No. 24/2006/QD-BXD of August 21, 2006)

Chapter I

GENERAL PROVISIONS

Article 1.- Governing scope and application subjects

This Regulation governs activities of attracting, managing and using official development assistance sources (including non-refundable aids and preferential loans granted by international donors, hereinafter called ODA for short).

This Regulation applies to all units attached to the Construction Ministry in the mobilization, reception, management and use of ODA.

Article 2.- Basic principles on mobilization, reception, management and use of ODA of the Construction Ministry

Activities of mobilizing, receiving, managing and using ODA shall be based on the following principles:

1. Encouraging the Ministry's units, organizations and individuals, based on their respective functions and tasks, to be active and take initiative in mobilization and attraction of ODA projects in service of the industry's state management tasks as well as the production and business of enterprises;

2. Receiving, managing and using ODA in parallel with raising its use efficacy and debt-payment capability, in line with the reception capacity of implementing units;

3. Receiving, managing and using ODA for programs/projects in strict compliance with the provisions of law in order to support the realization of the Government's socio-economic development objectives as well as development objectives of the construction industry;

4. Clearly defining responsibilities of the units, ensuring their close coordination and promoting their initiative in the execution of programs/projects;

5. The Construction Ministry shall exercise the unified management of programs/projects executed by units attached to it.

Chapter II

LISTING AND MOBILIZING ODA PROGRAMS AND PROJECTS

Article 3.- Priority domains eligible for use of ODA of the construction industry

1. Non-refundable ODA sources shall be used with priority for programs/projects in the following domains:

a/ Materialization of strategies and orientations for development of the construction industry;

b/ Improving the Construction Ministry's state management capacity and supporting the administrative reform; improving the institutional capacity (organization, training, human resource development, drafting of legal documents);

c/ Urban planning and development;

d/ Planning and development of urban technical infrastructure (water supply and drainage and environmental sanitation...);

e/ Supporting new technology research and transfer;

f/ Other domains as decided by the Construction Minister.

2. ODA preferential loans shall be given with priority to programs and projects in the domains of wastewater or solid waste treatment, environmental sanitation, water supply and drainage, urban upgrading and development, dwelling houses for low income-earners, and large-scale programs/projects with slow capital recovery and projects on the transfer of new and advanced technologies.

ODA preferential loans shall each consist of two parts: one for technical assistance in service of consultancy and preparation of programs/projects, to be assigned by the Ministry to a management board for execution; and another for investment in projects whose owners are local authorities directly managing and using ODA; the management board of the Ministry may, on a case-by-case basis, play the role of a central coordination board to support localities in the execution of projects.

Article 4.- Listing ODA programs/projects

1. Proposing ODA programs/projects:

Annually, based on the industry's planning and plans and their respective functions and tasks, units shall take initiative in proposing and sending lists of programs and projects in need of ODA attraction and mobilization, enclosed with the outlines thereof, to the Planning and Statistics Department for sum-up and to the International Cooperation Department for mobilization of aids.

2. Selecting ODA programs/projects:

The Planning and Statistics Department shall assume the prime responsibility for, and coordinate with specialized departments in, summing up the lists of ODA programs/projects to be reported to the Ministry's leaders, and send to the Ministry of Planning and Investment written requests for the grant of ODA.

Article 5.- Mobilization of ODA

The International Cooperation Department shall act as the major unit to coordinate with the Planning and Statistics Department, the specialized departments and units under the Ministry in mobilizing ODA on the basis of:

- Priority domains for ODA use of the construction industry;

- Lists of ODA programs/projects to be given priority in ODA attraction and mobilization, already approved by competent authorities;

- Priority domains of bilateral and multilateral donors for the construction industry;

- Unexpected projects of the Ministry's units, which are not on the approved lists and in need of ODA.

Chapter III

PREPARATION, APPRAISAL, APPROVAL OF ODA PROGRAMS/PROJECTS

Article 6.- Preparation of programs/projects

1. After receiving an official notice on the list of ODA programs/projects, the International Cooperation Department shall coordinate with the Organization and Personnel Department and the concerned departments in making proposals on organization and personnel and submit them to the Minister for issuance of decisions to set up program/project preparation boards (hereinafter called project preparation boards), to nominate heads of project preparation boards or assign the task of project preparation to project owners for performance.

2. Program/project preparation boards or project owners shall have the following tasks:

a/ To study and firmly grasp the Construction Ministry's and donors' regulations on the process of preparing and executing programs/projects;

b/ To inquire into the programs/projects' objectives, requirements and conditions;

c/ To elaborate plans on preparation of programs/projects according to the prescribed contents and submit them to the Minister for approval;

d/ To clearly identify requirements on personnel, training and funding (including advance capital, if any), working facilities and relationships which need to be handled in the process of preparing programs/projects;

e/ To organize the mobilization of appropriate resources for preparation of programs/projects;

f/ To act as a major body for coordination with domestic organizations and donors in the elaboration of program/project documentation;

g/ To draft organization and operation regulations and other necessary documents for project management boards;

h/ To prepare program/project documentation according to the contents prescribed in the Regulation on ODA management and use as well as relevant guiding documents for submission to the Minister for approval;

i/ To join in negotiation on specific international treaties on ODA.

Article 7.- Appraisal and approval of ODA programs/projects

1. With regard to programs/projects falling under the Prime Minister's approving competence, the Planning and Statistics Department shall act as the major body for coordination with the International Cooperation Department, specialized departments and concerned units and working with the major appraising agency being the Ministry of Planning and Investment as well as concerned ministries and branches. Specialized departments shall take prime responsibility for specialized contents in the appraisal process.

2. With regard to programs/projects falling under the appraising competence of the Construction Minister, the specialized departments shall assume the prime responsibility for appraising the specialized contents, the Economics and Finance Department shall appraise the cost estimates and the Planning and Statistics Department shall sum up and submit the results to the Minister for approval and notify such to the Ministry of Planning and Investment according to regulations; the International Cooperation Department shall notify such to donors.

Chapter IV

NEGOTIATION, CONCLUSION OF TREATIES ON ODA

Article 8.- Negotiation, conclusion of framework treaties on ODA

The International Cooperation Department shall act as the major body for coordination with the Planning and Statistics Department and concerned units in preparing contents and joining the Ministry of Planning and Investment in negotiating and concluding with donors framework treaties on ODA.

Article 9.- Negotiation, conclusion of specific treaties on ODA

1. With regard to projects falling under the approving and concluding competence of the Prime Minister, the International Cooperation Department shall act as the major body for coordination with the Planning and Statistics Department, specialized departments and project preparation boards in participating in negotiations.

2. With regard to projects falling under approving and concluding competence of the Construction Minister, the International Cooperation Department shall assume the prime responsibility for, and coordinate with the Planning and Statistics Department, the specialized departments, project owners/project prepration boards in, organizing negotiation and conclusion of treaties with donors.

3. With regard to ODA granted by donors under separate programs or projects neither included in the plans nor subject to the conclusion of framework treaties on ODA, the Planning and Statistics Department shall assume the prime responsibility for, and coordinate with the International Cooperation Department and the specialized departments in, working with the Ministry of Planning and Investment to make written requests for the addition thereof and submitting them to the Prime Minister for consideration and approval.

Article 10.- Archiving of concluded documents

1. With regard to treaties concluded by the Construction Ministry under the Government's authorization, their originals shall be archived at the Ministry of Foreign Affairs while their copies shall be kept at the Construction Ministry's Office and sent to the Planning and Statistics Department, the International Cooperation Department, the specialized departments, the Economics and Finance Department, the project owners and the project preparation boards for organization of implementation.

2. With regard to treaties concluded by the Construction Ministry:

a/ Their originals shall be archived at the Ministry's Office;

b/ The Ministry's Office shall make copies thereof and send them to the concerned units for implementation.

3. Upon the completion of programs/projects, project owners must archive all dossiers and documentation of such programs/projects.

Chapter V

MANAGEMENT OF EXECUTION OF ODA PROGRAMS/PROJECTS

Article 11.- Assignment of responsibilities

1. The Planning and Statistics Department:

a/ To act as the major body specialized in planning, monitoring and summing up the situation of ODA programs/projects, making sum-up reports and reports on assessment of the efficiency of programs/projects, which shall be sent to the Ministry of Planning and Investment and the Ministry of Finance according to regulations;

b/ To coordinate with the Economics and Finance Department in arranging contributed domestic capital amounts for execution of projects and guiding project owners/project management units to use capital according to regulations;

c/ To assume the prime responsibility for, and coordinate with the specialized departments, the Economics and Finance Department and the International Cooperation Department in, organizing the appraisal of invitations for bids and bidding results for participation in programs/projects managed by the Construction Ministry;

d/ To notify in writing units having programs/projects of the list of programs/projects of the Ministry already approved by the Prime Minister or the Construction Minister and for which donors have committed to grant aids.

2. The International Cooperation Department:

a/ To guide units in mobilizing, attracting and receiving ODA and observing international procedures and practices; to assist units regarding entry and exit of specialists and the regimes for foreign specialists working for programs/projects;

b/ To act as the major body for coordination with the Planning and Statistics Department, the specialized departments and the Economics and Finance Department in guiding and supporting project owners/project preparation boards to elaborate preparation plans and ODA program/project documentation.

3. The Economics and Finance Department

a/ To guide project owners/project preparation boards on project finance in the elaboration of project documentation, including the identification of Vietnam's contributions (reciprocal capital), and consider the rationality of the contents of expenditures from foreign aids;

b/ To guide project management units in elaborating financial management regulations and spending norms for ODA programs/projects;

c/ To guide project management units in elaborating financial and capital disbursement plans, accounting regimes and financial statements, to be submitted to the Construction Ministry and the Finance Ministry according to the approved contents;

d/ To appraise before submitting to the Minister for approval cost estimates and final settlements of programs/projects;

e/ To conduct regular or extraordinary inspection of project management units under the Minister's direction;

f/ To act as the major body for coordination with the Planning and Statistics Department in guiding the management and handover of projects' assets and outcomes to units for management and use under regulations.

4. The Organization and Personnel Department

a/ To assume the prime responsibility for, and coordinate with the concerned departments in, proposing the establishment of project preparation boards, project steering boards, project management units, and nomination of project managers for submission to the Minister for decision;

b/ To support project management units in the recruitment of personnel for execution of programs/projects;

c/ To guide project management units in elaborating organization and operation regulations and monitoring the implementation thereof.

5. The specialized departments

a/ To assume the prime responsibility for, or join in, the appraisal of programs/projects under the Minister's assignment;

b/ To join in the appraisal of invitations for bids and bidding results of programs/projects;

c/ To assume the prime responsibility for monitoring and directing the execution of ODA programs/projects in the relevant professional domains;

d/ To join in the pre-acceptance test of ODA programs/projects;

e/ To assume the prime responsibility for, or join in, the final review of programs/projects.

6. Functional departments

Functional departments shall have to coordinate with and support project management units/project owners according to their assigned functions and tasks.

Article 12.- Organization of program/project execution apparatus

1. Program/project steering boards

a/ A program/project steering board shall be set up upon request, based on the set contents or scale of, or agreements with donors on, each program/project. The board may be headed by a vice minister or head of the concerned unit and have members being representatives of concerned ministries, branches, localities and units as well as representatives of donors (if any).

b/ Program/project steering boards shall have the following tasks:

- To propose undertakings and plans on coordination of operations in execution of programs/projects;

- To decide on basic measures to ensure the successful execution of programs/projects;

- To direct the inspection, supervision, preliminary review and review of programs/projects;

- To consider the adjustment of contents of programs/projects when necessary.

2. Project owners

a/ Where the Construction Ministry is the owner of an ODA program/project, the Minister shall assign tasks to a project management unit or a unit under the Ministry to act as the project owner;

b/ Project owners shall have to directly manage and use ODA capital sources and contributed domestic capital amounts (if any) for implementation of the contents of programs/projects and take responsibility before the Minister and before law for the progress, quality and efficiency of such programs/projects.

3. Project management units

a/ Project management units shall be set up under decisions of the Minister or project owners and assigned the task of managing projects for one or several programs/projects;

b/ Project management units shall perform their functions and tasks and exercise their powers according to the Minister's decisions and current State regulations;

c/ The Minister shall issue decisions on appointment of project managers (or directors of project management units), project deputy managers and chief accountants under project management units.

4. Project managers shall have the following tasks:

a/ To be answerable to the Minister for all issues related to the execution of programs/projects;

b/ To recruit adequate and qualified personnel according to requirements of programs/projects;

c/ To elaborate operation plans and budget estimates (monthly, quarterly, annual and long-term) of programs/projects for submission to competent authorities for approval;

d/ To elaborate plans and procedures for the withdrawal of contributed domestic capital amounts and foreign capital according to the schedules of programs/projects;

e/ To observe financial regulations, statistical and accounting regimes and regulations on financial inspection and examination according to current law;

f/ To make and send periodical or extraordinary (when requested) reports to the Ministry, concerned ministries and donors according to regulations and agreements with donors;

g/ To assume the prime responsibility for recruitment of domestic and foreign specialists to work for projects under the program/project plans;

h/ To organize bidding for recruitment of consultants, construction and procurement contractors for projects according to the current State regulations and agreements with donors;

i/ To monitor and urge the execution of operations of programs/projects;

j/ To manage activities of specialists working for programs/projects;

k/ To organize the supervision and assessment of the process of execution of programs/projects as well as the preliminary and final reviews thereof periodically and upon the completion of programs/projects; to report the execution results to the Construction Ministry and donors.

Chapter VI

MONITORING, ASSESSMENT, PRE-ACCEPTANCE TEST AND HANDOVER OF PROGRAMS/PROJECTS

Article 13.- Reporting, monitoring and assessment regimes

Project management units shall have to monitor and assess ODA programs/projects according to plans stated in program/project documentation; organize periodical or extraordinary review meeting between the concerned parties; make reports on execution and completion of programs/projects and organize the final review thereof according to current regulations.

Program/project management units shall send periodical, sum-up or extraordinary reports to concerned agencies according to regulations; to the Planning and Statistics Department, the specialized departments, the International Cooperation Department and the Economics and Finance Department of the Construction Ministry.

Article 14.- Pre-acceptance test, exploitation and use of outcomes of programs/projects

1. Project owners shall organize the pre-acceptance test, exploitation and use of outcomes of programs/projects and adopt measures to maintain and promote such outcomes.

2. The Planning and Statistics Department shall assume the prime responsibility for, and coordinate with the International Cooperation Department, the specialized departments and concerned units in, organizing the pre-acceptance test and handover of programs/projects.

3. The Economics and Finance Department shall assume the prime responsibility for, and coordinate with concerned departments in, organizing the final settlement and management of assets of programs/projects.

Chapter VII

ORGANIZATION OF IMPLEMENTATION

Article 15.- The functional units of the Construction Ministry shall have to coordinate, monitor, direct and inspect the observance of the State's regulations in the execution of ODA programs/projects by the units attached to the Ministry.

Article 16.- This Regulation shall supersede the relevant previous legal documents promulgated by the Construction Ministry regarding the management of ODA projects executed by the units attached to the Ministry; if any problems arise in the course of implementation, concerned units should promptly report them to the Construction Ministry for study, amendment, supplementation and finalization of this Regulation.