Decree No. 38/2013/ND-CP dated April 23, 2013 of the Government on management and use of official development assistance (ODA) and concessional loans of donors

DECREE

ON MANAGEMENT AND UTILIZATIONOF OFFICIAL DEVELOPMENT ASSISTANCE (ODA) AND CONCESSIONAL LOANS FROMDONORS

Pursuant to the Law on Government organization,of December 25, 2001;

Pursuant to the Law on State budget, of December 16, 2002;

Pursuant to the Law on Construction, of November 26, 2003;

Pursuant to the Lawon Conclusion, Accession to and Implementation ofinternational treaties, of June 14, 2005;

Pursuant to the Law on investment, of November 29, 2005;

Pursuant to the Procurement Law, of November 29, 2005;

Pursuant to the Lawon Public Debt Management, of June 17, 2009;

Pursuant to the Law amending and supplementing a number of articlesinthe lawsrelating to investment of capital construction, of June 19, 2009;

At the proposal of the Minister of Planning and Investment;

The Government promulgates the Decree on management and utilization of officialdevelopment assistance (ODA) and concessional loans from donors,

Chapter 1.

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decreeregulates themanagement and utilization of official development assistance (ODA) and concessional loansprovided byforeign governments, international organizations and inter-state or inter-governmental organizations (below collectively referred to asdonors)to theState or Government of the Socialist Republic of Vietnam.

Article 2.Entities of application

The entitiesof applicationare allagencies, organizations, individuals participating or involvingin theactivitiesunderscope ofgovernanceof this Decree.

Article 3.Forms ofprovision ofODA and concessional loans

1.ODAconsistsofODAnon-refundableaidand ODA loan:

a.ODAnon-refundableaidisaform of provisionofODAthat does not require refundingto the donor;

b. ODA loan isaform of provisionofODAthat requiresre-fund to the donorunder concessional conditionsin terms ofinterest rate, grace period anddebt-payment periodwith the non-refundable elementofat least 35%forthe value of tied loans or 25% forthe value of untied loans.The methodof calculatingnon-refundable element is specifiedin the Annex 1 of this Decree.

2.Concessional loan isaform of provisionofloan, the borrowing conditions of which ismore concessionalthancommercial loan, but the non-refundable elementdoes not satisfy the criteria forODA loanas stipulatedin point b clause 1 of this Article.

Article 4. Interpretation of terms

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

1."Line agencies ofODA program or project" (hereinafter abbreviated to “Line agencies”) meanthecentral agencies of theCommunistParty, the Supreme People s Procuracy, the Supreme People s Court, agenciesofNational Assembly, the State Audit,theOffice ofthePresident, Ministries, ministerial-level agencies, government-attached agencies, People s Committees of provincesandcentrally-run cities (hereinafter referred to as “Provincial People s Committees”), central agencies of social andpolitical organizations,ofsocial, political andprofessional organizations, social andprofessional organizationsthat haveprogramsandprojectsfunded by ODAand concessional loans (hereinafter abbreviated to “programsandprojects”).

2."Ownerofprogram or project" (hereinafter abbreviated to as “Project Owner") means theunit assigned by the Line agencythe responsibilityformanagementand utilization ofODA, concessional loans and counterpart funds for implementation ofprogram or project.

3.“Project management unit” means unit assigned the responsibility tosupport itsProject Ownertomanageand implement program(s)or project(s).

4.“The SteeingCommitteeofprogram or project” (hereinafter abbreviated to “The Steering committee”) means acommittee that constitutes with composition ofcompetent representatives fromthe Line agencyandotherrelevant agencies withits mandateofprovidingdirections, coordinating in supervision andgoverningimplementation of program or project.In some neccessary case, on the basis of agreement with the donor(s),theSteering Committee may includetherepresentative(s)fromdonor(s).

5.“Funding list" means a list ofone or manyprograms,projects and non-project financing amountsproposedfor financingfromODA and concessional loansthatis approved byVietnamesecompetent agencies,agreed to be funded bydonor(s), and serves as a basis for the Line agency to coordinate with donors in formulation of documentofprograms,projectsand non-project financing.

6."Project" means anaggregation of inter-related proposalswith the aimto achieve one or several specified objectives and carried out inspecific location(s) undera giventime frame by using definedresources. Projects include investment projects and technical support projects.

7."Investment project" means anaggregation of proposalsof medium or long-terminvestment forcarryingout investment activities inspecific location(s) undera given timeframe. Investment projectsconsistof two types below:

a.“Construction investment project”means anaggregation of proposals relatingtomaking investmentfor new construction, expansion orrehabilitationof construction workswith the aimto develop,maintain, and improve the quality ofconstructionworks,products or servicesundera given time frame.The construction investment projects are classifiedby thenational important projects and projectsundergroups ofA, BandC as prescribed by law on investment in construction;

b. “Other investment project”is theinvestmentthat does not belong toconstruction investment projecttype as stipulatedin point a of this clause.

8."Technical assistance project" means anaggregationwith the aim ofsupporting developmentofcapacityandinstitutionsorprovidingtechnical inputsforpreparationand implementation ofprograms and projectsby providingexperts, training, supporting equipment,materialsanddocumentations, study toursand seminars.

9."Program" means anaggregation of activities or projectsthatrelate toeach other and may relate to one or more sectors,fields, geographical areas, various stakeholdersto achieve one or severaldefined objectives,whichis performed through one or many stages.

10."National important program or project" means a program or projectthatthe National Assemblydecidesinvestment policy.

11."Program accompanied with policy framework" means a programthat accompanieswith conditions on policies andmeasures to reform the macro-economy,sectorsorareas thatthe Government of the Socialist Republic of Vietnam commits to implementbased onaspecificroad map.

12.“Jointprogram or project" means program or projectin which there isone Line agencytakingtheoverall coordinatingrole andthere are otherLine agenciesthat are responsible for componentprojects.

13.“Global or regional program or project” (hereinafter abbreviated to “regional program or project”) means a program or project funded by ODA and concessional loansfora group of countries in one or manygeographical areas, in which has participation of Vietnam,for carrying outcooperationactivitiesforachievingthedefined objectives in the shake ofparties’benefitsand thecommonregion orglobal benefits.

14.“Program or project document" means documentthat describesthe conditions, necessity, objectives, contents,outcomes,keyactivities, totalbudget, source andcomposition of capital, other sources, domestic financial mechanism andorganizational modality forimplementationandmanagement of program or project. For investment projects, project document is a feasibility study report.

15.“Non-projectaid" meansamethod ofprovision ofODAand concessional loans that is not in the form ofspecific project. Non-project aid is provided in-cash,in-kinds, aid for procurement of goods, and experts.

16.“Budgetsupport” meansamethodof aid provision whereODA and concessional loans are transferreddirectlyto theState budget; managed and utilizedin accordance with budget regulations and procedures of Vietnam and in conformity with the contentsagreed with the donors.

17.“Commercial loan” meansa loanborrowed withmarket conditionsthat are same asconditions of export creditsor mobilized in the international capital market.

18.“UntiedODA and concessional loans" mean ODA and concessional loansthat are providedwithouttiedconditions related to the supply and procurement of goods and services froma restricted number of suppliers or countries under regulationsof donors.

19.“TiedODA andconcessional loans" mean ODA and concessional loansthat are providedwithtiedconditions related to the supply and procurement of goods and services froma restricted number ofsuppliers orcountries under regulation of donors.

20.“Internationaltreatyon ODA and concessional loan" means a written agreement signed in the name of the State or the Government of the Socialist Republic of Vietnamwithone or many donors onissues relating toODA and concessional loans. Internationaltreaties on ODA and concessional loansinclude:

a."Framework international treatyon ODA and concessional loans" means an international agreement on ODA and concessional loans withcommitmentsto commonprinciples and conditions containing contents related to the strategies, policies, cooperation framework, priority orientations inproviding and utilizingODA and concessional loans;on the areas, programs and projectsthat are agreedto be financed;onframework conditions and commitmentson provision ofODA and concessional loantoprogramsandprojects for one or many years;on the proceduralprinciples,plans for the management and implementation of programs and projects;

b."Specific international treatyon ODA and concessional loans" means an international agreement on ODA and concessional loans with financialcommitmentstospecific programs and projects ortobudgetsupportand containing maincontents on objectives, activities and outcomes to be achieved, implementation plans, financing conditions, capital, capital structure, obligations, powers and responsibilities of each party, principles and standards to be complied with in the management and implementationofprograms andprojects, disbursement and payment conditions of loans for the programs andprojects.

21."Counterpart fund" means contribution made by the Vietnamese party in kinds and/or money for preparationand implementation ofprogramsandprojects andallocatedfrom centraland/orlocalStatebudget,self-arranged by the project owners, contributed bybeneficiaries and other counterpartresources.

22."The privatesector” in this Decree is construed as thenon-Stateeconomicsector.

Article 5.Modalities ofprovision ofODA and preferential loans

The modalitiesof provisionofODA and preferential loansinclude:

1.Budget support.

2.Program support

3. Project support.

4.Non-project aid.

Article 6.Basic principles ofmanagement and utilization of ODA and concessional loans

1.ODA and concessional loans constituteasource ofcapital inthe state budgetwhichare usedforthe implementation of prioritizedobjectives of socio-economic developmentof thecountry and are reflected in the State budget in accordance with law.

2.The Government performs the unifiedstate management of ODA and concessional loans on the basis ofdecentralizationinaccompanywith responsibilities, powers, management capacity andpro-activenessof sectorsandlevels; ensuring closecoordination inmanagement,inspection and supervision of relevant agencies.

3.Themobilization, management and utilization of ODA and concessional loans must be considered, balanced and selected in the overallfunds fordevelopment investmentforachievingthe highest socio-economic effectivenesswithsustainablemanner, ensure the principles ofequalityandfairness, capitalabsorptioncapacity,debt re-paymentcapability and the safety of public debts, in which prioritize to use concessional loans for programsandprojectsthat can refunddirectly.

4.Ensuring openness, transparency andaccountability inprovision of ODA and concessional loansandin utilizationof theseresources.

5. Creating favourable conditions forprivatesector to access toODA and concessional loans on the basis of sharingofbenefits and risks betweenthestate and theprivate sector.

6. Ensuring theconsistencyand synchronization among Vietnameselegal documents and the harmonization inprocess and procedureswithdonorsforODA and concessional loans.

7. Compliance withVietnamese existing laws and regulationsandinternationaltreaties on ODA and concessional loansthatthe Government orthe State ofSocialist Republic of Vietnam is amember.If there is a discrepancy between anyprovisionin the signed internationaltreaties andVietnamese laws and regulationsrelating toa same matter, the provisionsin such internationaltreaties shall take precedence.

Article 7.Priorityareas for utilization ofODA and concessional loans

1.Construction of synchronized,large-scale and modern economic infrastructuresystem, including transport infrastructure (roads, railways, airports, seaportsand internal waterways); urbaninfrastructure (urban transport, water supply and drainagesystems, environmentand sanitation,  powersupply infrastructure);information technology andcommunicationinfrastructure; energyinfrastructure (withpriority todevelopment of renewable and new energy); irrigation and dyke infrastructures.

2.Development ofsocial infrastructure,including culture, healthcare, education and training, vocational training, social security, poverty reduction, population and development.

3.Development of scienceand high technology,upstreamtechnologies; development ofscience and technology in some prioritizedandconcentratedareas,intellectualeconomyand high quality human resource.

4. Rural andagriculture Development, including the restructuring and developingagricultural economy, socio-economic ruralinfrastructure, building new rural areas.

5.Strengtheninginstitutional capacity and administrative reform.

6. Environmental protectionand natural resourcesconservation,mitigation of naturaldiaster, reponsetoclimate change, sustainable development and green growth.

7. Promoting trade andinvestment, banking and financing, tourismand severalsectors inproduction and business toenhancethe competitivenessof the economy.

8.Supporting theimplementation of nationaltargetprograms.

9. A number ofother priority sectors and areasunder decisions of the Prime Minister.

Article 8. The process of mobilization, management and utilization of ODA and concessional loans

1.Formulation and approvalof funding list.

2.Preparation, appraisal, approval of program or project documents.

3. Conclusion ofInternational treaties on ODA and concessional loans.

4.Organization ofimplementation of programs and projects.

5.Supervision andevaluation ofprogramsandprojects.

Article 9. Private sectortakes access toODA and concessional loans 

1.Private sectorshall take access toODA and concessional loans by the following modalities:

a. Borrowingloansfromthesystem of domestic financialandcredit organizations through programs and projects of which credit limits or credit componentsare fundedby ODA and concessional loanstoimplement activities in conformity with International treaties on thesefundsandin compliance tothe lendingprocedureof financialandcredit organizations;

b. Participating in implementation of programs and projects in thesectors and areas prioritizedin utilization of ODA and concessional loans of Goverment undertheform ofon-lendingfrom the State budget;

c. Participating in implementation of programs and projects undermodality ofpublic-private partner,towhich the Government contributesin the form ofODA and concessional loans;

d. Participating in plementation of programsandprojectshavingobjective of supportingprivate sectormanaged bythe Line agencies of programsandprojects.

2.Conditions for private sectoronreceivingODA and concessional loans:

a. Capacity for organization andmanagement of implementation of programs and projects of project owner must becertifiedby the Line agencies of programs and projects or bythe re-lendingagencies;

b.With regard tocase of re-borrowing the ODA and concessional loans: financial plan of programs andprojectsand financial capacity of the project ownersmust be appraised inaccordancewithregulations of existinglegislationsandguidanceof the Ministry of Finance.

Article 10.Domestic financial mechanismsfor utilization of ODA and concessional loans

Domestic financial mechanismsfor utilization of ODA and concessional loans of programs and projectsareimplementedas follows:

1. Granted fromthe State budget:This mechanismappliesto programs and projects on investment in infrastructure, social welfareandotherareasthat are not able to refunddirectly and belong to the expenditure tasksof the State budgetstipulatedin the State budget Law.

2. Totally or partially on-lended from the State budget: This mechanismappliesto the following cases:

a. Programs and projectsthose are abletorefund totally or partially;

b. Programs and projectsthat do notbelong to the expenditure tasksof the State budget;

c. Programs and projects ofthosethe Line agencies are provincial People’s Committeesthat aresubject toapplication of on-lending ofODA andconcessionalloans fromthe Government.

3.In each specific case, the Government shallon-lendODA and concessional loans to provincial People’s Committeeswithregardstoprograms and projectsthatfall in expenditure tasksof local budget, provincial People’s Committees shall arrange local budget to returntheir borrowingto the Government.

Chapter 2.

FORMULATION AND APPROVAL OF THE FUNDING LIST

Article 11.BasisofmobilizationofODA and concessional loan 

MobilizationofODA and concessional loans shall be carried outon the basis of:

1.The socio-economic development strategies, master plansandplans ofcountry,sectors, regions and localities.

2.The national strategies of public and foreign debts during 2011 – 2020 andvisiontill 2030.

3.Orientationoutlineonmobilization, management and utilization ofODAand concessional loansin eachgivenperiod.

4.National objective programs and objective programs ofsectors and localities.

5.Programs, strategies and orientations on cooperation between Vietnam and donors.

Article 12. Responsibility for mobilizationofODA and concessional loans

1.The Ministry of Planning and Investmentshall be responsible for organizingmobilizationofODAand concessional loansat national,cross-sector, inter-locallevels.

2.Ministries, sectors shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment andotherrelevant agenciesto organizemobilizationofODAand concessional loansat sectorallevel.

3.The provincial People’s Committees shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment andotherrelevant agenciesto organizemobilizationofODA and concessional loansat local level.

4.The representative agenciesor missionsof Vietnamin overseasoratinternational organizations shall coordinate with the Ministry of Planning and Investment and the Ministry of Foreign Affairs incarrying outmobilizationofODA and concessional loans in thehostingcountries orat theinternational organizations.

Article 13. Formulation and approvalof the funding list

1.Based on thebasis formobilizationofODA and concessional loansspecified in Article 11 of this Decree, the Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Finance,otherrelevant agencies and each donor in formulation of coorperation orientations andareas prioritized for utilization of ODA and concessional loans, and report them to the Prime Minister.

2.On the basis of cooperation orientationsandareas prioritized for utilization of ODA and concessional loans, demandsof mobilizationofODA and concessional loansof the Line agencies, conditions for provision of ODA and concessional loans from donors, the Line agencies shall send Official Dispatch requesting forfunding togetherwith proposalson programs and projects, tothe Ministry of Planning and Investment.

Based on the cooperation orientationswith donors andareas prioritized for utilization of ODA and concessional loans of the Government, the Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Finance andotherrelevant agenciestoselect suitable proposals on programs and projects and notify the Line agencies in order to formulate the Outlines of programs and projects. Expenses for formulating Outlines of programs and projects are covered from funds of the Line agencies, own capital of the project owners (if any) and other lawfull funds. For agencies allocated from the State budget, expenses for formulating Outlines of programs and projects are allocated from the State budget or support from the ODA non-refundable aid.

3.For the funding list under approval competence of the Prime Minister specified in clause 1 Article 14 of this Decree:

a. The Line agencies shall send a official dispatch to the Ministry of Planning and Investment in order to submit to the Prime Minister for approval for the funding listtogetherwith Program and project Outline and documents on ability to arrange ODA and concessional loans from donors;

b. Based on the request official dispatch of the Line agency, within 05 working days, the Ministry of Planning and Investment shall send a official dispatch to consult the Ministry of Finance and relevant agencies for Program and project Outline. Within 15 working days after receiving official dispatch requesting for consulting of the Ministry of Planning and Investment, the Ministry of Finance and relevant agencies shall send written advices to the Ministry of Planning and Investment.

Based on provision in Article 10 of this Decree, the Ministry of Planning and Investment shall have opinion on the domestic financial mechanism principle applicable to programs and projects using the ODA non-refundable aid; the Ministry of Finance shall have opinion on the domestic financial mechanism principle applicable to programs and projects using the ODA and concessional loans;

c. Within 15 working days after receiving written advices of agencies, the Ministry of Planning and Investment shall notify the Line agencies to coordinate with donors in completing Program and project Outline. On the basis of completed program and project Outline, the Ministry of Planning and Investment shall submit to the Prime Minister for consideration and approval for the funding list.

Within 05 days after receiving Decision on approval of the funding list of the Prime Minister, the Ministry of Planning and Investment shall send a written notice on the funding list and enclosed with Program and project Outline to donors;

4.For the funding list under approval competence of the Line agencies specified in clause 2 Article 14 of this Decree:

a. The Line agencies shall send a official dispatch, enclosed with Program and project Outline and documents on ability to arrange ODA non-refundable aid of donors;

b. Within 10 working days after receiving official dispatch requesting for consulting, the Ministry of Planning and Investment, the Ministry of Finance and relevant agencies shall send written advices to the management agencies.

Based on provision in Article 10 of this Decree, the Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Finance to have opinion on the domestic financial mechanism applicable to the proposed programs and projects;

c. Within 10 working days after receiving written advices of agencies, the Line agencies shall coordinate with the Ministry of Planning and Investment and donors in completing Program and project Outline and consider to decide on approval of the funding list.

Within 05 working days after the funding list is approved, the Line agencies shall send Decision on approving the funding list and enclosed with Outline on project program to the Ministry of Planning and Investment, the Ministry of Finance and relevant agencies for monitoring and general summarization; and send a written notice on the funding list enclosed with the Program and project Outline to donors.

Article 14.Authorityof approvalforthe funding list

1.The Prime Minister shall approvethefunding list in the following cases:

a. Programs and projectsfunded byODA and concessional loans; non-project aidfunded byODA loans;

b. Thejointprograms and projects; programs and projectsthat accompanywithpolicy framework; programs and projects inareas ofsecurity,nationaldefense, religion;

c. The ODA non-refundable aid withthe size of fundingequivalentto 1 million USDonward;

d. The technicalassistance topreparation of programs and projectsfunded byODA and concessional loans;

e. Aid for procurement ofcommodities under themanagement of State.

2.The Line agencies shall approve the funding listwith regards to thecasesthat are not specified inclause 1 of this Article.

Article 15. Participation of regional programs and projects

1. The Line agencies shallsend a written requestto the Ministry of Planning and Investment,togetherwith documents of regional programs and projects, in which clearly state rights and obligations of participants. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with relevant agencies to submit to the Prime Minister for consideration and decision on Vietnam’s participation.

2. In the case wherethe Line agencies of regional programs and projectsare notdefined, the Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate withotherrelevant agencies to submit to the Prime Minister for consideration and decision on Vietnam’s participation andappointment ofthe Line agencies for these programs and projects.

Article 16.Programorproject Outline and non-project aidOutline

1. Programorproject Outlineis a documentthatdescribes generallythe conditions, necessity, objectives, contents,outcomes,majoractivities, estimated totalbudget, sourcesof funding,capital structure,proposalsfor domestic financial mechanismsandmodalitiesoforganization andmanagement of implementationofprogram or project. Theform of the outline of aprogramorproject isspecifiedin the Annex IIa of this Decree.

2.Non-project aid Outline is a documentthatdescribesgenerallythe aidthat isnotprovided in the form ofa specific project and provided in-kinds,in-cashorby provision ofexperts. The form of non-project aidoutlineis specifiedin the Annex IIb of this Decree.

Article 17. Advance activities

In necessary case and on the basis ofagreementwiththedonors, the Line agencies may propose  advance activities in theprocessof preparation, preparation forimplementation of programs and projects, including:

1.Activities allowed performing after the Program and project Outline is approved by competent agencies:

a. Establishment of the project management unit;

b. Formulation and submission to competent agencies for approval ofthe resettlement policy framework priorthe program or project documents areappraisedand approved;

c. Preparation of plans on bidding, bidding materials, bidding documents.

2.Activities allowed to perform inthe processsince the program or project document is approved by competent agencies untill specificinternational treatieson ODA and concessional loans of program and projects come into effect, including:

a. Approval of thebiddingplan,biddingdossier, organizing tender and approving the tender result, contract negotiation for bidding package of procurement of goods and construction and installment for activitiesto beperformedduring first12 months of programs and projects anda number ofbidding packagesofconsulting services(project managementconsultants, technical designconsultants, supervisionconsultants, resettlementconsultants);

b. Contracts of procurement of goods, construction and installment,consulting servicesof bidding packages specified in point aofthis clausecan only besigned afterspecific International treatieson ODA and concessional loans of programs and projects come into effect.

Article 18. Contentsof Decision on approval for the funding list

A decision on approval for the funding list of competent authorityshall consist ofthefollowing keycontents:

1.Name of program,project and donor, co-financing organization.

2.Name of Line agency, project owner.

3. Major objectives andoutcomes of programorproject.

4.The maximum implementationdurationof programorproject.

5.Thebudgetlimits of programorproject (ODA non-refundable aid, ODA loan, concessional loan and counterpart fund).

6. Fundingsourceand domestic financial mechanismof programorproject.

7. Advance activities (if any).

Article 19. Amending and supplementingcontent of decision on approval for the funding list

Inprocessof appraisal,preparation andimplementation, ifcontent ofprogramorprojecthaschangesin comparison with the Decision on approval for the funding list of competentagencies(exceptcontents that arespecified in clause 7 Article 18of this Decree):

1. With regards tothe funding list under approval competence of the Prime Minister: On the basis ofagreementwiththedonors and at proposal of the Line agencies, the Ministry of Planning and Investment shall consult the Ministry of Finance andotherrelevant agencies, submit to the Prime Minister for consideration and decision onchanges.

2. With regards tothe funding list under approval competence of the Line agencies: On the basis of consent with donors, the Line agencies shall consult the Ministry of Planning and Investment, the Ministry of Finance andotherrelevant agencies before considering and approvingchanges.

Inthecasewhereamendments and supplementations tocontents ofprogramorproject fall beyond theirapproval competence for the funding list, the Line agencies shallimplement as specified inclause 1 of this Article.

Chapter 3.

PREPARATION, APPRAISAL AND APPROVAL OF PROGRAM OR PROJECT DOCUMENTS

Article 20. Tasks of the Line agencies in preparation, appraisal and approval of program or project documents

After having Decision on approving the funding list and written aid commitment of donors, the Line agenciesshall undertakethe following tasks:

1.Issuing decision onappointment ofproject owner.

2. Giving instructions tothe project owner to performitsassigned tasks as prescribed in Article 21 of this Decree.

3.Allocatingresources under their competence for preparation of programs and projects.

4. Organizing theappraisal and approval of program or projectdocumentsunder their competenceasspecified in clause 2 Article 24; Articles25, 26 and 27 of this Decree.

Article 21. Tasks of project ownersin preparation, appraisal and approval of program or project documents

The project ownershavetask to coordinate withthedonors in preparation, formulation of program or project documentsas prescribed in Articles22, 23 of this Decree and completingdossiersto do procedures for appraisal and approval of program or project documentsas prescribed in Articles25, 26 and 27 of this Decree.

Article 22. Contentsof program or project documents

1.Program or project documentshall beformulated on the basis of content of Program and project Outlineofthe funding list approved by competentagency.

2.The form of investment project document (feasibility study report) is specifiedin the Annex IIIa; theform oftechnical support project document is specifiedin the Annex IIIa; theform ofprogram document is specifiedin the Annex IIIc; theform of jointprogram or project document is specifiedin the Annex IIId of this Decree.

In case the program and project document is formulated according to the form of donors, the project owner must count the above-mentioned contents duringthe course of coordination with donors to make this documenttoensure harmonizationof processesand procedures between Vietnam and donors.

Article 23.Fundfor preparation of programs andprojects

1.The funding list serves asthebasis for makingbudgetplan and arrangingfundfor preparation of programs andprojects.The budgetfor preparation of programs andprojectsincludes the followingexpenditure items:

a. Expenses forcarrying out researches, investigations, surveys, collection, analysisandconsolidationof initialdata;

b. Expenses for formulating,improvingthe program and project documents, including expenses for hiringconsultantsand translation services;

c. Expenses for appraisal of program or project documents;

d. Expenses for training and improvingthe capacityofstaffas the core in program or project managementteam;

e. Expenses for the advance activities on the basis of Decision on approval for the funding list of competentagencies.

2. With regards toprograms and projectsthatbelong to case to be allocated from the State budget: The project owner shall make abudgetplan for preparation of programorproject in order tointegrate intothe annual common budget plan of the Line agencies. The processesof approval and allocation ofbudgetfor preparation of programs and projects shall comply withlegal regulationson the State budget.

In casewhere thetimeof makingthe budgetplan for preparation ofaprogramorproject does not coincide with time of making the annual budget plan, the Line agency must balance in totalbudgetfor preparation of programs and projects which have been allocated; in case it fails to self-balance thisbudget, it shall send a written request to the Ministry of Planning and Investment and the Ministry of Finance for consideration and decision on budgetsupplementation.

3. With regards toprograms and projects belong to case to belententirely or partly or allocated partly from the State budget: The project owner shallmake its own arrangement of budgetfor preparation of programs andprojects.In casewherethe project owner fails to self-balance thisbudget, it shall submit to its Line agency for consideration and decision under competence.

4.In casewheredonorprovide financialsupport for preparation ofaprogramorproject, the project owner shall report to its Line agency for submision and approvalin accordance with the existing regulationsandfor reflection of this financial support tothe annualbudgetplan for preparation of programs and projects of the Line agency.

Article 24. Competence to approve the program or project documents

Competence to approve the program or project document (competence to decide investment for investment projects) is stipulated as follows:

1.The Prime Minister shall approve:

a. Documentsof national important programsorprojects;

b. Documentsof programsin accompanywiththepolicy framework; programs and projects inareas ofsecurity,nationaldefenseandreligion.

2.Heads of the Line agencies shall approve program and project documents that arenot specified in clause 1 of this Article.

Article 25. Appraisal of program or project documents

1. With regards toprogram and project documentsunder the approval competence of the Prime Minister:

a. National important programs and projects: The appraisalshallcomplywithexisting laws andregulations on national important programs and projects;

b. Programsin accompany withpolicy framework; programs and projects in security,nationaldefenseandreligion: The Line agencies shall hold appraisal for program and project documentsand submit to the Prime Minister for consideration and approval.

2. With regards toprogram and project documentsunder the approval competence of headsof the Line agencies: The Line agencies shall hold appraisal and approval for program and project documents.

3.Contentsand processesof appraisal of program or project documents:

a.With regards toinvestment projects, contentsand processesofappraisalshall be implemented in pursuance to the existing laws andregulations;

b.With regards toother programs and projectsthat arenot specified in point a of this clause, the Ministry of Planning and Investment shallprovideguidance oncontentsand processesof appraisal;

c.With regards toprograms and projectsthat are re-lentfrom ODA and concessional loans, the appraisal of financial plan of programs and projects and financial capacity of project owners shall be implemented in pursuance to thePublic Debt ManagementLaw,other relevant legal documents and guides of the Ministry of Finance.

4.In the course of appraisal,the focal pointagenciesandunits must consult relevant agencies; consider the orders, procedures and progressesof appraisal of donors in order to ensure the neccesary coordination and harmonization, consider contentsthat areagreed with donorsandappraisal opinions of donors or their representatives. The consensus anddissenting  viewsofparties must be reflected in the appraisal report.

5. The focal pointagenciesandunitsof appraisal are responsible for the appraisal result of program or project documents; agencies participating in appraisal are responsible for contentsof program or project documentsrelated to their functions and tasks in accordance with law.

Article 26. Dossierofappraisalofprogram or project document

A dossier requesting forappraisal of program or project document includes:

1. Written request for appraisal of the program or project document, made by the Line agency (for programand projectdocuments underapprovalcompetence ofthe Prime Minister) or by the project owners (for program and projectdocuments underapprovalcompetence ofLine agencies);

2. Decision on approval for the funding list of competentagencies.

3. Program or projectdocuments.

4. With regards toprograms and projectsthat aresubjectofre-lending, the project owners shallenclose documentsthat give evidence oftheirfinancial capacity, plan on debt payment and other documents as guided by the Ministry of Finance.

5.Writtencomments given by the Ministry of Planning and Investment, the Ministry of Finance, concerned agenciesanddonors (if any) in process of preparation forthe program or projectdocuments.

6.Documents in foreign language must be enclosed withtheirVietnameseversion.

Article 27. Time limit for appraisal and approval of the program or project documents

1.The time limit for appraisalofprogram and project documentsis counted from the dateof receiving full and valid dossier:

a. For national important programs and projects:not exceeding 90 working days;

b. For investment projectsof group A:not exceeding 40 working days;

c. For investment projects of group B:not exceeding 30 working days;

d. For investment projects of group C and other programs and projects:not exceeding 20 working days;

2.Within 10 working days, after receiving the appraisal report of agenciesandunits assigned appraisal, competent agencies shall consider andmakedecision onapproval of the program or project documents.

3.Within 5 working days after the program and project documents areapproved by competent agencies, the Line agencies shall notify to donors and project owners aboutthe approval results, conexistingly send the approval decision (original or authenticated copy) enclosed withtheapproved program and project documents that areaffixed with the Line agency’s integrity seal between pages to the Ministry of Planning and Investment, the Ministry of Finance and relevant agencies.

Chapter 4.

CONCLUSION OF INTERNATIONAL TREATIES ON ODA AND CONCESSIONAL LOANS

Article 28.Basis for proposal to signinternational treaties on ODAand concessional loans

1.Basis for proposal tosigntheframework internationaltreatieson ODA and concessional loans are resultsof mobilization, strategiesand policieson development cooperation, priority areas ofODA and concessional loansthat areunified between Vietnam andrespectivedonors.

2.Basis for proposal tosign specific internationaltreaties on ODA and concessional loans aretheprogramorproject documentsalready approved by competent agencies.

3.Theconclusionof International treaties on ODA and concessional loans shall comply with provisions of the Law onConclusion, Accession to and Implementation of Treaties and the Public Debt Management Law.

Article 29. Tasks and powers of the Prime Ministerinconclusion ofinternational treaties on ODA and concessional loans

The Prime Minister shall, on behalf of the Government, implement tasks and powers as follows:

1.Reporting thePresident before negotiating, signing International treaties in the name of State and the international treaties in the name of the Government relating to ODA and concessional loans which are required approval.

2.Deciding on carrying out negotiation,conclusion ofinternational treaties on ODA and concessional loans in the name oftheState or Government.

3.Deciding on approval for international treaties on ODA and concessional loans in the name of Government.

4.Submitting to thePresident for consideration and approval of international treaties relating to ODA and concessional loans in case they are concluded in the name of State and the international treaties in the name of the Government relating to ODA and concessional loans which are required approval.

Article 30. Agencies proposing forconclusionof international treaties on ODA and concessional loans

1.The Supreme People’s Court, the Supreme People’s Procuracy, Ministries, Ministerial-level agencies, agenciesdirectly under theGovernmentshall beagencies proposingtothe Prime Minister for theconclusionof specific International treaties on ODA non-refundable aid for programs and projectsunder the management oftheir agencies,exceptcases that arespecified in clause 3 of this Article.

2.The Ministry of Finance shall beagency proposing and submittingtothe Prime Minister for theconclusion ofspecific International treaties on ODA and concessional loans, exceptcases that arespecified in clause 3 of this Article.

3.The State bank of Vietnam shall beagency proposing and submittingtothe Prime Minister for theconclusion ofspecific International treaties on ODA and concessional loans with the World Bank, AsianDevelopment Bank, International Monetary fund and other international financialand monetary institutionsthatthe State bank of Vietnampresents for Vietnam.  

4.The Ministry of Planning and Investment shall be agency proposing and submittingtothe Prime Minister for theconclusion ofInternational treaties on ODA and concessional loans in the following cases:

a. Framework International treaties on ODA and concessional loans;

b. Specific International treaties on ODA non-refundable aid for programs and projects under management of line agenciesthat arenot specified in clause 1 of this Article, except ODA non-refundable aid of World Bank, AsianDevelopment Bank, International Monetary fund and other international financialand monetary institutionsspecified in clause 3 of this article.

Article 31. The order of and procedures forconclusion ofInternational treaties on ODA and concessional loans

1.The proposing agencies shallcollect the opinions ofrelevant agencies,theinspectionopinionof the Ministry of Foreign Affairs, the appraisal opinion of the Ministry of Justice, summarize and submitthemto the Prime Minister for consideration and decision on negotiation,conclusionof International treaties on ODA and concessional loans.

2.The Prime Minister shall report thePresident and decideonnegotiation andconclusionof international treaties regarding ODA and concessional loans in the name of State and international treaties in the name of the Government which are required approval.

3.Agencies assigned by the Prime Minister for taking main responsibility for negotiation and carrying out negotiation on draft International treaties on ODA and concessional loans with donors.

4.Based on the negotiation resultsin conformity with content of draft International treaties on ODA and concessional loans which have been accepted anddelegatedforsigningby the Prime Minister, the person who isdelegatedby the Prime Minister shallsignInternational treaties with representative of donor.

In case the negotiation result has changes in comparison to content of a draft International treaty on ODA and concessional loans which has been accepted by the Prime Minister, the proposing agency shall consult relevant agencies and submit to the Prime Minister for decision on theconclusionof that International treaty.

5. Foran International treatythatmust be approved or ratifiedafter signing, the proposing agency shall consult relevant agencies and submitthemto the Prime Minister for approval or to the State president for ratification.

Article 32. The order of and procedures fordelegationto negotiate and sign the specific International treaties on ODA and concessional loans with the same donor

1.On the basis of summarizing opinions of relevant agencies and donors, the proposing agencies shall submit to the Prime Ministeron delegationfor one or many representatives to negotiate and sign the specific International treaties on ODA and concessional loans with the same donors. Dossier to submit to the Prime Minister includes the following documents:

a.Report of the proposing agencytosubmittothe Prime Minister on delegationfor one or many representatives to negotiate and sign the specific International treaties on ODA and concessional loans with the same donors.

b.Copy of International treaties on ODA and concessional loans signed with the same donor or form of draft International treaties on ODA and concessional loans with the same donor including principal content and plan to selectforspecific matters(if any);

c. Written opinions of the Ministry of Foreign Affairs, the Ministry of Justice, other relevant agencies and donors.

2.Based on decision of the Prime Minister, the Ministry of Foreign Affairs shall carry out the external procedures for granting writtendelegationfor negotiation andconclusion ofInternational treaties on ODA and concessional loans with the same donor.

Article 33. Dossierforsubmission tothe Prime Ministeronnegotiation,conclusion andapproval of international treaties on ODA and concessional loans

1.Dossier oftheproposing agencytosubmit to the Prime Minister for the negotiation andconclusion ofInternational treaties on ODA and concessional loans including the following documents:

a. Report of the proposing agencytosubmit to the Prime Minister for consideration and decision on the negotiation andconclusionof International treaties on ODA and concessional loans;

b. Program and project documentsenclosed with decisionson approval by competent agencies.

c. Draft International treaties, enclosed with Vietnameseversionin case those International treaties are signed only in foreign language;

d. Written opinions of relevant agencies, the inspection opinion of the Ministry of Foreign Affairs and the appraisal opinion of the Ministry of Justice regarding those draft International treaties.

2.Dossier oftheproposing agency tosubmit to the Prime Minister for the negotiation andconclusionof International treaties on ODA and concessional loans which have been signed in the name of the Government including the following documents:

a. Report oftheproposing agencytothe Prime Minister for consideration and approval of International treaties on ODA and concessional loans which have been signed in the name of the Government with donors;

b. Copy of International treaties, enclosed with Vietnameseversionin case those International treaties are signed only in foreign language;

c. Written opinions of relevant agencies;

d. Expected plans to perform in case the signed International treaties have no provisions on this content.

Article 34. Dossierforsubmission tothe Prime Minister for consideration and submissionto thePresident for ratification of international treaties on ODA and concessional loans

1.Report oftheproposing agencytothe Prime Minister for consideration and submission tothe State president for ratification of International treaties on ODA and concessional loans which have been signed with the donor.

2.Draft report of the Prime Minister onsubmissionto thePresident for ratification of international treaties.

3.Copy of International treaties, enclosed with Vietnameseversionin case those International treaties are signed only in foreign language.

4.Written opinions of relevant agencies.

5.Expected plans to perform in case the signed International treaties have no provisions on this content.

Article 35. Amendment, supplementationand extension ofInternational treaties on ODA and concessional loans

1. Amendment, supplementation and extension of International treaties on ODA and concessional loans which are required ratification after signingshall comply with regulations in the Law on Conclusion, Accession to and Implementation of Treaties and the Public Debt Management Law.

2.For amendment, supplementation and extension of international treaties on ODA and concessional loans in the name of Governmentthat arenot specified in clause 1 of this Article;

a. In case it is required to sign a new International treaty in the name of Government: The proposing agency shall submit to the Prime Minister for consideration and decision according to the orders and procedures specified in Article 31 of this Decree;

b. In case through exchanging letters,diplomatic noteswith the donors:

For the amendment, supplementation and extension of International treaties on ODA and concessional loans in the name of the Governmentthatincrease the obligation on foreign debt payment of the Government (such as interest, loan duration, loan level, charges) or, change other commitments of the Government in comparison with previous time, the proposing agency shall collect written opinions of the Ministry of Planning and Investment, the Ministry of Foreign Affairs, the Ministry of Justice and other relevant agencies to summarize and submit the Prime Minister for consideration and decision.

For the amendments, supplementationsthat donot increase the obligation on foreign debt payment of the Government (such as interest, loan duration, loan level, charges) or, not change other commitments of the Government in comparison with previous time, the proposing agency shall decide amendments, supplementations on the basis of written opinions of the Ministry of Planning and Investment, the Ministry of Foreign Affairs, the Ministry of Justice and other relevant agencies. The proposing agencies shall report on their decisions to the Prime Minister. In case agencies have different opinions, the proposing agencies shall submit to the Prime Minister for decsion.

c. The proposing agencies shall notify with the donors, the Ministry of Planning and Investment, the Ministry of Foreign Affairs and other relevant agencies of amendments, supplementations or extension of International treaties on ODA and concessional loans. In case it is required for notification by diplomatic note by the Ministry of Foreign Affairs, the proposing agencies shall coordinate with the Ministry of Foreign Affairs for the Ministry of Foreign Affairs to finish procedures for the external notification regarding these amendments and supplementations or this extension.

Chapter 5.

MANAGEMENT OF IMPLEMENTATION OF PROGRAMS AND PROJECTS

Article 36.Modalities of program and project management

The Line agencies shall decide selection of one of the followingmodalities of program and project management:

1.The Line agenciesshall takeroleofthe project owneranddirectly manageprograms and projects.

2.The project owner shall directly manage programs and projects.

3.The project owner shall hire aconsultingorganization to manage programs and projects.

Article 37. Tasks and powers of the Line agencies in management of implementation of programs and projects

1. Makingdecisions onorganizingthe management apparatus for implementation of programs and projects.

2. Approvingthe master plan on performing programs and projects; summingup and approvingthe annual allocation plansof programs and projects.

3. Carrying outthe tender as prescribed bythe existing laws and regulationson tender.

4. Organizing thesupervisionandevaluation ofthe situation of implementation, ensuringprograms and projectsto be implemented onschedulewithquality andto achievetheir planned targets.

5.Takingresponsibility fortheloss, wastefulness, corruption andmisdeedsin the management and utilization of ODA and concessional loans under the management competenceof line agencies.

6. Implementingother tasks and powers as prescribed by law, International treaties on ODA and concessional loans of programs and projects.

Article 38. Tasks and powers of the project ownersin management of implementation of programs and projects

1. Organizingthemanagementapparatus forimplementationof programs and projects on the basis of decision of the Line agencies.

2.Takingresponsibility for effective management and utilizationofthe financial resources of programs and projects from the preparation,implementation tillthe programs and projects are put intoexploitation.

3. Preparingand submittingto the Line agencies for approval of the master plan on performing programs and projects; approvingthe annualimplementationplan of programs and projects in order to serve as basis forthe line agencies toapprovethe annualbudgetallocation plan of the Line agencies.

Especially for programs and projectsthat receiveODA and concessional loansin the form of on-lending mechanismfrom the Governmentwithcounterpart fundallocated on their own, the project owners shall beresponsible forpreparingand approving theannualbudgetplans.

4. Formulatingthequarterlyaction plan to serve for the administration, supervision andevaluation ofprograms and projects.

5. Organizingappraisalandapproval of technical design, total estimated budgetand estimated budgetof work items (for constructionandinvestment projects).

6. Carrying outthe tender as prescribed bythe existinglaw on tender.

7. Negotiating,signing, supervisingtheimplementationof contracts andresolvingviolations of contracts.

8. Coordinatingwith the local authorities toorganize implementation ofcompensation, assistance and resettlementin accordance withlaws, specific International treaties on ODA and concessional loans of programs and projects (for construction investment projects).

9. Supervisingandevaluatingprograms and projects,ensuringprograms and projectsto be implemented onschedulewithquality andto achieve their planned targets.

10.Under their management competence, to take responsibility fortheloss, wastefulness, corruption andmisdeedsin the management andimplementationof programs and projectsthatcause damages tothe society,economy andenvironment, influence to theoverallobjectivesand effeciencyof programs and projects.

11. With respect toprograms and projectsthat applytheon-lendingmechanism, the project ownersshall repayfully and timely theloans in line with the agreed on-lendingconditions.

12.Other task and powers as prescribed by laws,specificInternational treaties on ODA and concessional loans of programs and projects.

Article 39. Establishment of the project management unit

1.In case of direct management ofprograms and projects as prescribed in clauses 1 and 2 Article 36 of this Decree, within 30 working days after the programs andprojects areapproved by competentagencies, the project ownersshall issue a decision on establishment of the project management units.

2. Whenestablishingthe project management unit, the project ownersmust consider thepossibility of usingthe professional project management units ortheirexisting project management units for reducing managementexpenses andmakinguse of capacity and experiences of the project managingteam.

3.For the advance activities regarding establishment of the project management unit: shall comply with clause 1 Article 17 of this Decree.

4.Within 15 working days after having decision on establishment of project management unit, the project ownersshall issue a Regulation on organization and opertion of the project management unit. In casewhereInternational treaties on ODA and concessional loans for programs and projects signed with donors haveregulations on organizational structure of project management, tasks and powers of the project management unit, theseregulations  must be concretized and fullyreflectedin the Regulation on organization and operation of the project management units.

Article 40. Tasks and powers of the project management units

1.The project owner shall assign the tasks and powers to the project management unit on the basis of decision on establishment of the project management units.

The project owner maydelegateto the project management unitto makedecision or sign documentson their behalfin the management course of implementation. Thisdelegationmust be specified in the Decisionson establishment of the project management unitsor in the specificdelegationdocuments of the project owners.

2.The project management unitsmay be assigned task to managemore than oneprograms and projectsat the same time with permission oftheirproject ownersand ensuringthe principle:There in no interruption in process of implementation of each program or project,and each program or projectis subject to themanagementand finalizationof paymentin accordance with existing laws. In caseaproject management unit failsto qualify for implementation of several parts of project management and supervision, it may hireconsultantsto perform this work with the acceptance of the project owner.

3.The project management unit shall have the following specific tasks:

a.Supportingthe project ownersin making the master plan and the detailed annual plan onimplementationof programs and projects;

b.Supportingthe project ownersin preparation for implementation and implementation of programs and projects;

c.Supportingthe project ownersin implementation of tender and contract management activities;

d.Supportingthe project ownersin disbursement, financial and asset management of programs and projects;

dd.Followingup andevaluatingthe situation ofimplementationof programs and projects;

e.Preparingforthe project owners to carry out taking-receipt and hand-ofofoutcomes of programs and projects after completion; finish the audit work, handingof assets of programs and projects; makingthecompletionreport and financial reconciliation report of programs and projects;

g.Performingother tasksunderthe framework of programs and projects assigned by the project owners.

Article 41.Hiring project managementconsultants

1.In casewherethe project ownershireconsultantsfor management of programs and projects as prescribed in clause 3 Article 36 of this Decree, thatconsultingorganization must be eligible and havesufficient capacity inorganization and management in conformity with the sizeand nature of programs and projects. The tasks and powers of theseproject managementconsultantsshall be performed on the basis of contractsof hiringconsultant. The project managementconsultingorganization is entitled to hireconsulting institutions andindividuals to participate in managementwith acceptance ofthe project ownersand in conformity with the signedconsultingcontracts.

2.The project ownersshall select and sign contractswith a project managementconsultingorganizations that areeligible and havesufficientcapacity inorganization and management in order tosupportthe project ownersin project management. When applying forms of hiringconsultantsfor project management, the project ownersstill must use theirfunctional apparatus or appoint a focalpointunitfor checking, supervising the implementationof project managementconsultingcontracts.

3. Project managementconsultingorganizationshaveresponsibility for realization of affairs and commitments under the contractssigned with the project ownersandin compliance with the relevant existing regulations and laws.

Article 42. Cases not required for establishment of the project management units

The project owners are not required toestablish project management units but they canusetheirfunctional apparatus for managing and executingprograms and projects orthey canhire thespecialized and experiencedpersons to assist it in management andimplementationof programs and projects in the following cases:

1.The technicalassistanceprogramorprojectfunded byODA non-refundable aid with the totalbudget(includingcounterpart fund) of less than USD 200,000.

2.The programs and projectsfunded byODA non-refundable aid with the total investment level (includingcounterpart funds) of less than USD 350,000.

3. Regional programs and projects, sectoral orbudget support programs and non-project aid.

Article 43. Counterpart fund for the preparationof implementationandfor implementationof programs and projects

1.Counterpart funds must be ensuredfullyfor preparationof implementationandfor implementationof programs and projects (includingthe advance activities, if any). The source,amountand mechanism of counterpart fund must be suitable with contentsstated in the program or project documentsapproved by competent agencies.

2.Counterpart funds for preparationof implementationandfor implementationof programs and projects may include the followingexpenditure items:

a. Expenses for activities of the program and project managementunit(salary, bonus, allowance, office, workingfacilitiesandoverheadexpense);

b. Expenses for design appraisal, approval of total estimate, completion of investment, construction procedures and other necessary administrative procedures;

c. Expenses relating to selectionofcontractors;

d. Expenses for conferences,seminars, training and coaching the professional operations for management andimplementationof programs and projects;

dd. Expenses foracceptance  and  dissemination  of international  technologies, experiences and skills;

e. Expenses forcommunication andadvertisement of programs and projects andforcommunityparticipatoryactivities;

g. Paymentof taxesof all kinds, customsandinsurancechargesin accordance withexistingregulations;

h.Payment for interest, deposits, commitmentchargesand other relevantcharges madeto foreign parties;

i. Expenses foracceptance ofequipment andlocaltransportation(if any);

f. Expenses for auditing;

l. Expenses forimplementation ofseveral basic activities of programs and projects (survey, technical design, construction; compensation,siteclearance and resettlement; construction of several work items, procurement of several equipment);

m. Expenses for supervision andevaluationactivities; qualitycontroland testing, acceptance, hand-of and finalization of programs and projects;

n.Contingency and other resonable expenses.

3.For programs and projectsthat have fundsallocated from the State budget: The Line agencies shall balance counterpart funds in their annual budget estimates as prescribed by existing law and clearly delimitate according to thebudgetsource for fundamental construction, non-business administrative operations corresponding to the expenditure content of programs and projects; ensuringthe full and timely provision of counterpart funds in conformity with the progress prescribed in the program and project documentthat wasapproved by competent agencies,andin conformity with regulationsof State budgetLawand International treaties on ODA and concessional loans.

4.For programs and projectsof which mechanism is in the form of totally or partly on-lending and partly granted from the state budget: The project ownersshall allocate counterpart fundson their ownorthey cansubmit to the Line agencies for decisiononensuring adequatecounterpart funds for programs and projects before signingon-lendingcontracts.

5.For programs and projectsgrantedfrom the State budget with the time of approval orconclusionnot coincided with the term of making the annual budget estimates, andthereforecounterpart fundscan not beallocated: The Line agencies shallsenda written request to the Ministry of Planning and Investmentandthe Ministry of Financeto resolve this issueunder competence or submit to competent agencies forsupplementation of counterpart funds fromthe annual budget estimates.

In case timeof making counterpart fund plans for preparationandimplementation ofprograms and projects considered for aid does not coincide with the term of making the annual budget plan, the Line agenciesshall balance in the total allocatedbudget. In casewhere balancing of the funds is not possible,Line agenciesshallsenda writtenrequestto the Ministry of Planning and Investment, the Ministry of Finance for consideration and decision on advancement of counterpart funds that will then bedeductedin thebudgetplanof following year.

6.In casewherethe annual counterpart funds allocated from the central budget for programs and projects are not used up, the Line agencies mayre-allocate thesecounterpart fundstoother programs and projectsthat have demand for fundafterhaving approval ofthe agencies competent to allocatebudgetin accordance with existing regulations.

Article 44.Advancement of fundsforimplementationof programs and projects

In casewhere there is urgent need foradvancement of funds to implementseveral work items of programs and projectswhich issubject to be allocated from the State budget,andhave been alreadycommitted byODA and concessional loans andincludedin the annual financial plan butODA andconcessional loans have not yetbeenwithdrawn, the Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Finance in consideration and decision on advancefundingfrom the State budget on the basis of the written explaination of the Line agenciesand written commitment of the donor for withdrawal of these advancefunds. State Treasuries of all levels shallcollectedthese fundsafter the ODA and concessional loans are disbursed to allocate for those work items.

Article 45. Taxes and charges for programs and projects

Taxes and charges applicable to programs and projects shall comply with existing regulations on taxes and charges, International treaties to which the Socialist Republic of Vietnam is a contracting party. In cases wherethere is a discrepancy between any provision in the signed international treaties and Vietnameselaws, such treatiesshall take precedence. The Ministry of Finance shall specifyguidance onthisissue.

Article 46. Compensation, assistance and resettlement

1.Compensation, assistance and resettlementforprograms and projects shall comply with existing regulations and International treaties on ODA and concessional loans to which the Socialist Republic of Vietnam is a contracting party. In cases where there isdiscrepancybetween provisions ofVietnameselaw andinternationaltreaties, suchinternationaltreaties shall take precedence.

2.Dossier to submit a plan on compensation, assistance and resettlementof a program or project must have officialwrittencommitment of a competent agency for progress, time limit to complete compensation, assistance and resettlement in conformity with the implementationscheduleof each bidding package of program or project.

Article 47. Tender

1.Tender for implementation of programs and projects shall comply with existing regulations and International treaties on ODA and concessional loans to which the Socialist Republic of Vietnam is a contracting party. In cases where there isdiscrepancybetween provisions ofVietnameselaw andinternationaltreaties, suchinternationaltreatiesshall take precedence.

2.For the advance activities related to tender work specified in the Decision on approval for the funding list: The Line agencies and project owners shallconductadvance activities relatingto the tender work specified in Article 17 of this Decree.

Article 48. Amendments and supplementations to contentsof programs and projects and useofresidualduring implementation of programs and projects

1. In casewhereamendments and supplementations makecontentsin Decision on approval for the funding list changed: The Line agencies shall comply with Article 19 of this Decree.

On the basis ofacceptanceon changes in contentsof Decision on approval of the funding list by competent agencies, the Line agencies shall carry out procedures relatingto the approval of documentsof amended and supplemented programs and projects.

2.In case amendments and supplementations to contentsof programs and projectscreateamendments,supplementations, extension of International treaties on ODA and concessional loans, the proposing agencies shall comply with provision in Article 35 of this Decree.

3.The use ofresidual(ODA and concessional loans)thatarisesduring implementation of programs and projectsand constitutes by residual fromtender,fromchangesinexchange rate, interestrate,from unallocatedprovisional budgetand othersshall comply as follows:

a. For cases of usingresidualin scope of programs and projects: on the basis of agreement with donors, the Line agencies shall decide use ofthis residualin accordance with existing regulations;

b. For case of usingresidualfor implementation of new programs and projectswithpriority aim toincrease theeffectiveness ofon-goingprograms and projects: On the basis of agreement with donors, the Line agencies shall send awritten requestto the Ministry of Planning and InvestmenttogetherwiththeOutline of new programs and projects. The next steps relating to the approval of the funding list shall comply with clauses 3 and 4 Article 13 of this Decree.

Article 49. Management of construction, acceptance, hand-over, auditingandpaymentfinalization

1.For investment projects, appraisalandapproval of construction designsand totalcostestimates,issuanceof construction permits, control ofconstructionquality, acceptance, hand-over, warranty,andinsurance of constructionworks shall comply with existing regulations on investment management and International treaties on ODA and concessional loans to which the Socialist Republic of Vietnam is a contracting party.Ifthere isadiscrepancybetween any provision in the signed international treaties on ODA and concessional loansandVietnameselawsandregulations,theprovisionsinsuchinternational treaties shall take precedence.

2.For technicalassistanceprograms and projects,upon their completion, the Line agencies shall organize acceptance and carry out the necessary measures to furtherexploitand develop theachiever outcomesas well as comply with regulations of existing laws on financialand assetmanagement of programs and projects.

3. Auditing and paymentfinalizationforprograms and projects mustcomplywith existing regulations and International treaties on ODA and concessional loans to which the Socialist Republic of Vietnam is a contracting party or at the request of donors..Ifthereisadiscrepancy between any provision in the signed international treaties on ODA and concessionalloansandVietnameselawsandregulations,theprovisionsinthe international treaties shall take precedence.

Article 50. Handling of contract disputes

In case ofcontractdisputes during implementation of programs and projects,the relatedparties shallbe responsible fornegotiationfor settlement.Ifrelatedpartiescannotreachagreement, the disputes shall beresolved bymediationorarbitration or Courtin accordance withcontracts,regulations of International treaties on ODA and concessional loans of programs and projects, relevant international treaties and laws.

Chapter 6.

SUPERVISION AND AND EVALUATION OF PROGRAMS AND PROJECTS

Article 51. Supervision ofprograms and projects

Supervision ofprograms and projects includes activities of following up and checkingin processof implementation of programs and projectswith the aimto ensure theachivementof objectives, efficiencyand effectiveness of programs and projects, of which:

1.Following up programs and projects includes regular and periodic activitiesat variousmanagement levels to update all information related to situation of implementation of programs and projects;toclassify and analyzeinformation;to recommenttimely the handling plansin orderto ensure the implementation in accordance with objective, progress and quality in theresource framework of programs and projects.

2.Checking of program or project includes: The periodic activities under plans or thead hocactivities toexaminethe compliance of regulationsin management, timely detecting the misdeeds, weakness in implementation of Vietnamese regulationsandlaws and specific International treaties on ODA and concessional loans;recommendingto competent agenciesabouthandling ofmisdeedsand supervisingrealization ofcorrectingmeasures.

Article 52.Evaluationof programs and projects

1. Evaluationof programs and projects includesperiodical activitieswith the aim to review in a comprehensive, systematicand objectivemanner in terms ofsuitability, effectiveness, efficiency, impact and sustainabilityof programs and projects in order to have necessary adjustmentsanddrawexperienceswhich mayapply to thesubsequentimplementationstages and other programs and projects.

2. Evaluation can becarried outon aperiodicor ad hoc basis(in necessary case). Dependingon each specific circummstanceand under the agreement with donors, the stagesof evaluation caninclude:

a. Initial evaluation: Being carried out as soon as beginning implementation of programs and projects with the aim to consider practical changes in comparison with the approvedprogram and project documents forhavingmeasuresof handling;

b. Mid-termevaluation: Being carried out in the middle of period of program and project implementation with the aim to consider situation of implementationat thetime of evaluationforthe necessary adjustments;

c. Terminalevaluation: Being carried out as soon ascompletingprograms and projectswith the aim toconsiderentirecourse of implementation,providinga basis for making reporton completion ofprograms and projects;

d. Impact evaluation: Beingcarried outwithin 3 years, after the programs and projectswereput into operation and usewith the aimtoassesstheireffeciency, sustainability and impacts in comparison with their initialobjectives.

3.In order to assure the objectivityand transparency, the evaluation must beconductedby expertsor group of experts, independenceconsultantsrecruitedhired or recruitedin accordance with theexisting regulations, having sufficient qualification and necessary experiences (except the initial evaluationthat canbeconducted by the project management units). The project owners must coordinate with donors in defining time andbudgetfor the evaluation at the stage of formulation of the program and project document.

4. The evaluation plansmust be formulated in the program and project documentsand must be comformable with nature of programs and projects.

Article 53. Responsibility of the Line agencies in supervision and evaluation

1. Organizingtheestablishmentand operation of the supervision and evaluation system of programs and projects at their levels,organizingthe examination of these programs and projects at least once each year and allocatingthe necessaryresources for these activities.

2. Coordinatingwith the Ministry of Planning and Investment in supervision and evaluation of programs and projects at national level.

3. Implementingthe reportingregimesin accordance withtheexisting regulations and guidanceof the Ministry of Planning and Investment.

4. Providing adequateand timelyfeedbacks to recommendations of the project owners stated in reports onprogress andevaluation result of programs and projects;when necessary,coordinatingwith donors and relevant agencies to carry outad hocevaluations.

5. Organizingthe impact evaluations for programs and projects under their competencebased onthe annual impact evaluation plansof the Ministry of Planning and Investment.

6.Sharinginformation via the supervision and evaluation system of programs and projects at the level of Line agencies to ensure transparency and facilitating supervision by the community.

Article 54. Responsibility of the project owners in supervision and evaluation

1. Organizingtheestablishmentand operation of the supervision and evaluation system at the project owner level and allocatingthe necessaryresources for these activities; appointing a permanent unit to take responsibility inregular supervision and evaluation for their programs and projects.

2. Organizingtheimplementation ofsupervision and evaluationactivitiesin accordance with the plans already approved in the program and project documents.

3. Resolvingtimely difficulties or problems under their competence andrecommendations stated in the evaluation reports.In case of falling beyond their competence,the project owners reportto the Line agenciesfor the solvingmeasures.

4. Implementingthe reportingregimesin accordance withtheexisting regulations and guidanceof the Ministry of Planning and Investment.

5. Hiring consultantstoconductevaluationin line with thesupervision and evaluationplanstated in the program and project documents.

6. Sharinginformation via the supervision and evaluation system of programs and projects at the project owner level to ensure the transparency and facilitating supervision by the community.

Article 55. Responsibility of the project management unitsin monitoring and evaluation

1. Establishingan internal information system, collectingand storingfully information, data, dossiers, documents,accountbooksandvouchers of programs and projects, reports of contractors, changes inVietnamesepoliciesandlaws and regulations of donors relating to the management of programs and projects.

2. Preparingthe realization reports in accordance with regulations, supplying andsharinginformationthroughthe supervision and evaluation systematsectoral, local and national levels.

3. Supportingthe project owners in supervision and evaluation of programs and projects.

Article 56. Responsibility of the Ministry of Planning and Investment in supervision and evaluation

The Ministry of Planning and Investment shall be the focalpointagencythat supportsthe Prime Minister in organization of supervision and evaluation of ODA and concessional loans at the national level.The Ministry of Planning and Investment hasthe following specific tasks:

1. Organizingtheestablishmentand operation of thenationalsupervision and evaluation system andallocatingthe necessaryresources forthese activities.

2. Assumingthe prime responsibility for making the annual supervision and evaluation plan of ODA and concessional loans at the national level and coordinate with Ministries, sectors, localities and donors in implementation of this plan.

3. Resolvingtimely difficulties under its competence stated in reports of the project owners, Line agencies and donors;givingout solutions to improve situation of implementation of programs and projects andenhancethe effective utilization of ODA and concessional loans.

4. Assumingthe prime responsibility for, and coordinate with the Ministry of Finance and relevant agencies in supervision of the compliance with law and specific International treaties of ODA and concessional loans, the effective utilizationofbudgetfor programs and projects. In the necessary case,setting upan inter-sectormissionto directly work withthe Line agencies and the project ownerstosolve problemsarisingduring the implementation of programs and projects to ensure the progresson scheduleand effective investment. Forissuesthatfall beyond its competence,theMinistry of Planning and Investmentshall report tothe Prime Minister for consideration and decision.

5. Assumingthe prime responsibility for, and coordinatingwith the Line agencies and donors in selecting programs and projectsfor itsannual impact evaluation plans.

6. Sharinginformationthroughthe supervision and evaluation system of programs and projects at the national level to ensure the transparency and facilitating supervision by the community.

Article 57. Thereportingregime onsituation of receiptand utilization ofODA and concessional loan

1.The project owner level:

The project ownersshall make reports on situation of implementation of programs and projects and send them to theirLine agencies, the Ministry of Planning and Investment, the Ministry of Finance, Ministries managing relevant sectors, the provincial People’s Committees where programs and projectsare implementedandtodonors, including:

a. Monthlyreports, within 10 days aftertheendday of previousmonth (just apply to programs and projects under the approval competence of the Prime Minister and investment projectsof group A);

b. Quarterlyreports, within 15 days aftertheenddate of previousquarter;

c.Yearlyreports, not later than January 31 of thefollowingyear;

d. Thecompletionreports, within 6 months aftercompletionof programs and projects;

e. Reports on changes (if any) in comparison with contentsof specific International treaties on ODA and concessional loans already concluded.

Reports to donorsshall beperformed in accordance with agreements in specific International treaties on ODA and concessional loans of programs and projects.

2.The level of Line agencies:

Within 20 days after each quarter, the Line agencies shall make theconsolidatedreportson mobilization, receipt and utilization of ODA and concessional loans, assessment onprograms and projects under their management competence and sendthemto the Ministry of Planning and Investment, the Ministry of Finance and the Ministry of Foreign Affairs for summarization under their assigned functions and tasks.

3.The national level:

The following agencies shall biannually and annually make the consolidated report toreportto the Prime Minister. The deadline for6-month reportsisbefore July 31of currentyear and thedeadline ofannual reportsisbefore January 31 of thefollowingyear.

a. The Ministry of Planning and Investment shallsendthe consolidated reportsto the Prime Ministeraboutthe situation of mobilization, management and utilization of ODA and concessional loans at the national level as prescribed in clause 11 Article 61 of this Decree;

b. The Ministry of Finance shallsendthe consolidated reportsto the Prime Ministeraboutthe situation of debts, debt payment,disbursement,fundwithdrawalof ODA and concessional loans as prescribed in point i clause 5 Article 62 of this Decree;

4.The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with relevant agencies in guidingonthe reportingregime and the unifiedreport forms on ODA and concessional loans, gradually performingharmonity of report forms with donors; supervisingthe compliance ofthereportingregime on ODA and concessional loans at all levels and periodically reportingthe situation ofimplementation of this work to the Prime Minister.

Article 58.Costsfor supervision and evaluation of the receipt, management and utilization of ODA and concessional loans

1.Expenses for supervision and evaluation of programs and projects at the level of project owners shall bealocatedbyODA and concessional loans orCounterpart fundsasdefined in program and project documents.

2.Expenses for supervision and evaluation of the receipt, management and utilization of ODA and concessional loans at level of thelineagencyand national levels shall beallocated in the annual State budget estimates.

Article 59. Inspection on receipt, management and utilization of ODA and concessional loans

Inspection on receipt, management and utilization of ODA and concessional loans shall comply withtheexisting regulations of law.

Chapter 7.

STATE MANAGEMENT ON ODA AND CONCESSIONAL LOANS

Article 60. State management on ODA and concessional loans

The Governmentshallperform theunifiedstate managementofODA and concessional loans in the following contents:

1. Makingdecisions onstrategies, policies, master plans, orientations onmobilization and utilization of ODAand concessional loansin each period.

2. Issuinglegal documents on management and utilization of ODA and concessional loans under its competence.

3. Executingmacro-levelmanagement and utilization of ODA and concessional loans.

Article 61. Tasks and powers of the Ministry of Planning and Investment

The Ministry of Planning and Investment shall assist the Government to performthe unifiedstate management ofODA and concessional loanswiththe following tasks and powers:

1. Acting asthe focalpointagency in mobilization,coordination, management and utilization of ODA and concessional loans;assumingthe prime responsibility for drafting strategies, policies on development cooperation with donors, master plans onmobilization, management and utilization of ODA and concessional loans; analyzingand assessingeffectiveness of using thesefunds.

2. Assumingthe prime responsibility for draftingandsubmissionfor issuanceor issuing the legal documents on management and utilization of ODA and concessional loans under its competence.

3. Assumingthe prime responsibility for preparation of content and mobilization,coordinationof ODA and concessional loans under its competence.

4. Summingup and submittingto the Prime Minister for approval of the funding list according to clause 3 Article 13 and clause 1 Article 14 of this Decree.

5. Assumingthe prime responsibility for, and coordinatingwith relevant agencies in submissionto the Prime Minister for conclusion of framwork International treaties on ODA and concessional loans and specific International treaties on ODA non-refundable aid as prescribed in clause 4 Article 30 of this Decree.

6. Coordinatingwith the Ministry of Finance in submissionto the Prime Minister for approval of the domestic financial regime applicable to programs and projects using ODA and concessional loans.

7. Assumingthe prime responsibility for, and coordinatingwith the Ministry of Finance in:

a. Submitting to the Prime Minister for approval of the domestic financial regime applicable to programs and projects using ODA non-refundable aid under competence to approve the funding list of the Prime Minister; defining the domestic financial mechnism applicable to programs and projects using ODA non-refundable aid under competence to approve the funding list of the Line agencies.

b.Summingup and makingplan on the disbursement of ODA and concessional loans, counterpart funds; fully and timely arrangingthe preparation capital for programs and projects, counterpart funds of fundamental construction source in order to prepare for implementation of and perform programs and projectssubject to be allocated from the central budget in the annual capital plans;

c. Handling demand on adding capital in the annual plans on budget estimate of programs and projects as prescribed in clause 5 Article 43 and Article 44 of this Decree.

8.Formulating, operating and completing the supervision and evaluation system of programs and projects at national level; sharing information with relevant agencies and donors, exploiting effectively this system.

9.Following up, checking the management of and organizing implementation of programs and projects; urging, assisting the implementation of programs and projects.

10. Acting asthe focalpointagencyinsolvingdifficulties during implementation of programs and projects; matters involving many Ministries, sectors in order to ensure the implementation progress and promote the disbursement of ODA and concessional loans; proposing the Prime Minister for decision onthehandling measures for matters on ODA and concessional loans under competence of the Prime Minister.

In the necessary case, assuming the prime responsibility for establishment of the inter-sector work delegation to directly work with the Line agencies, the project owners, the project management units and donors in order to consider, assess and timely solve difficulties under its competence.

11.Submitting the periodical (biannually, annually) andad hocconsolidated reports on the situation of mobilization, management and utilization of ODA and concessional loans to the Prime Minister; proposing solutions to remove difficulties during implementation of programs and projects.

12.Assuming the prime responsibility for implementation of synchronous measures with the aim to increase the effective management and utilization of ODA and concessional loans.

13.Compiling anddissemination ofdocuments guiding professional operations on mobilization, preparation, appraisal, managementofimplementation, supervision and evaluation of programs and projects;providing assistance inthe training on management of programs and projects in the professional and sustainable directions.

Article 62. Tasks and powers of the Ministry of Finance

1. Coordinatingwith the Ministry of Planning and Investment and relevant agencies informulatingstrategies, policies on development cooperation with donors, master plans on mobilization, regulation, management and utilization of ODA and concessional loans; analyzingand assessingeffectiveness of using thesefunds.

2. Providingguidance onpreparation of content involving conditions on usingfunds, financial management of programs and projects.

3. Assumingthe prime responsibility for, and coordinatingwith relevant agencies in submitting to the Prime Minister for theconclusionof specific International treaties on ODA and concessional loans as prescribed in clause 2 Article 30 of this Decree.

4. Officiallyrepresentingthe State or the Governmentas"the borrower" for ODA and preferential loans inrelationwith the donors, except loansforwhich the State bank of Vietnam ison behalf and delegatedto conclude in International treaties on such loans.

5. Executing financial management for programs and projects:

a.Assumingthe prime responsibility for, and coordinatingwith relevant agencies in guiding on financial management for programs and projects;

b.Assumingthe prime responsibility for, and coordinatingwith the Ministry of Planning and Investment, the Line agencies and relevant agencies in submissionto the Prime Minister for approval of the domestic financial regime applicable to programs and projects using ODA and concessional loans beforeconclusion ofspecific International treaties on ODA and concessional loans;

c.Coordinatingwith the Ministry of Planning and Investment in submissionto the Prime Minister for approval of the domestic financial regime applicable to programs and projects using ODA non-refundable aid underthecompetence to approve the funding list of the Prime Minister; defining the domestic financial mechnism applicable to programs and projects using ODA non-refundable aid underthecompetence to approve the funding list of the Line agencies;

d.Specifyingthe procedures forfundwithdrawal and management offundwithdrawal of programs and projects on the basis of regulations of existing laws and regulations in International treaties on ODA and concessional loans already signed with donors;

dd.Assumingthe prime responsibility for guiding on implementation of policies on taxes and charges applicable to programs and projects; solvingproblems involving taxes and charges;

e.Allocating budgetfrom the State budget and otherfundingsourcesforpayment ofODA and concessional loans ona due course;

g.Coordinatingwith the State bank of Vietnam in defining and publishing the list of commercial banks eligible to perform the external payment transactions related to ODA and concessional loans;

h.Followingup and checkingthe financial management in utilization of ODA and concessional loans and organizingthe accounting of the State budget related to these funds;

i.Summingup periodically (biannually, annually)dataof disbursement, withdrawalof fundsand debt payment related to ODA and concessional loans in order to report to the Prime Minister and notify with relevant agencies;

k.Coordinatingwith the Ministry of Planning and Investment in summing up and making the plans on disbursement of ODA and concessional loans, counterpart funds; handlingdemand onsupplementation of fundsin the annual budget estimate plans of programs and projects as prescribed in clause 5 Article 43 and Article 44 of this Decree;

l.Assumingthe prime responsibility for, and coordinatingwith the Ministry of Planning and Investment in fully and timely arrangingcounterpart funds from the non-business and administrative source in order to prepare implementation and perform programs and projects subject to be allocated from the central budget in the annualfundingplans;

m.Organizing provision of on-lendingand withdrawal of fundsused foron-lendingof programs and projectsthat are subject totheon-lendingmechanism of the State budget.

Article 63. Tasks and powers of the State bank of Vietnam

1. Assumingthe prime responsibility for, and coordinatingwith relevant agencies in submitting to the Prime Minister for conclusion of specific International treaties on ODA and concessional loans with the internationalmonetaryand finance organizations as prescribed in clause 3 Article 30 of this Decree.

2. Handingoverdossier and all information involving programs and projects to the Ministry of Finance after the specific International treaties on ODA and concessional loans come into effect, except the loan agreementswith the international monetary fund.

3. Assumingthe prime responsibility for, and coordinatingwith the Ministry of Finance in defining and publishing the list of commercial banks eligible to perform the external payment transactionforODA and concessional loans as basis for the Line agencies to negotiate the specific International treaties on ODA and concessional loans and to select banks serving for programs and projects.

4. Summingup periodically (biannually, annually) and notifyingthe Ministry of Finance, the Ministry of Planning and Investment amd relevant agencies of situation offundwithdrawal and payment through the system ofbankaccounts of programs and projects;

Article 64. Tasks and powers of the Ministry of Justice

1. Appraisingthe draft International treaties on ODA and concessional loans as prescribed by law on international treaties.

2. Participatingin negotiation andproviding commentsin formulating contentsof draft International treaties on ODA and concessional loans.

3. Providing comments on program and project Outlines regardingcooperation with foreign partiesin legal sector.

4. Appraisingthe program and project documentson cooperation with foreign partiesin legal sectorunder the approval competence of the Prime Minister.

5. Providing commentsfrom legal aspectson the draft resettlement framewok policy before submissionto the Prime Minister for approval.

6. Providingthe legal opinionsrelated to International treaties on ODA and concessional loans or other relevant legalmatters at the request of competent agencies.

Article 65. Tasks and powers of the Ministry of Foreign Affairs

1.Coordinatingwith concerned agencies in elaborating and implementing guidelines and directions for ODA and concessional loan mobilization as well aspartnershippolicies on the basis of the general external relation policies; participating in mobilizationofODA and concessional loans.

2.Assumingthe prime responsibility for, and coordinatingwith the Ministry of Planning and Investment and relevant agencies in, directing representative agencies of the Socialist Republic of Vietnam abroad or in international organizations to mobilize ODA and concessional loans in line with the guidelines and orientations on mobilization,master plansand plans onmobilizationand utilization of ODA and concessional loans in each period.

3. Checking, proposingfor negotiation,conclusion ofthe International treaties on ODA and concessional loans; joiningin negotiation,providing comments in draft International treaties on ODA and concessional loans.

4. Conductingexternal procedures on conclusion and implementation of International treaties on ODA and concessional loans; organizingstorage, copying from the original, announcingInternational treaties on ODA and concessional loans.

5. Participatingin evaluation of programs and projectsfunded byODA and concessional loans.

6. Followingup, checkingthe implementation of procedures for conclusion and implementation of International treaties on ODA and concessional loans as prescribed by law on International treaties.

Article 66. Tasks and powers of the Office of Goverment

1. Assistingthe Government and the Prime Minister in leading, directing and operating the uniform state management on ODA and concessional loans.

2. Providingopinions on contentsin the course of preparing the programs and projects at the request of the Line agencies or project owners; appraisingandmaking recommendationson policies, mechanisms, method of organizing implementation of programs and projects before submission tothe Goverment, the Prime Minister for consideration and decision.

3. Assistingthe Government and the Prime Minister for checking and urging implementation of this Decree.

Article 67. Tasks and powers of the Ministries, Ministerial-level agencies, Governmental agencies

1. Coordinatingwith the Ministry of Planning and Investment and relevant agencies in building strategies, master plans to orient themobilization and utilization ofODA and concessional loans; formulatingpolicies, methods of regulation and enhancing the effective utilization of ODA and concessional loans in the fields under their responsibilities.

2. FormulatingOutlines of programs and projects and submittingthem to competent agencies for approval or approve under their competence as prescribed in Article 13 of this Decree.

3. Coordinatingwith the Ministry of Finance, the State bank of Vietnam in submission to the Prime Minister relating to conclusion of specific International treaties on ODA and concessional loans for programs and projects managed by them as prescribed in clauses 2 and 3 Article 30 of this Decree.

4. Proposingto the Prime Minister for conclusion of specific International treaties on ODA non-refundable aid specified in this Decree and organizingimplementation of such International treaties after signing.

5. Executingthe functionsof state management of ODA and concessional loans according to sectors or fields under their responsibility in accordance with law.

6.Performingpublicly and transparently and takingresponsibility for the effective utilization of ODA and concessional loans for programs and projectsunder theirdirect management and implementation.

Article 68. Tasks and powers of the provincial People’s Committees

1.Coordinatingwith the Ministry of Planning and Investment, other ministries, branches and concerned agencies in formulating the strategiesand planningson mobilization and utilization ofODA and concessional loans; formulating policies and measures to coordinate andenhancethe effectivenessof the utilization of ODA and concessional loans in their respective provinces or cities.

2. FormulatingOutlines of programs and projects and submittingthem to competent agencies for approval or approvingunder their competence as prescribed in Article 13 of this Decree.

3. Coordinatingwith the Ministry of Finance, the State bank of Vietnam in submission to the Prime Minister relating to conclusion of specific International treaties on ODA and concessional loans for programs and projects managed by them specified in clauses 2 and 3 Article 30 of this Decree and perform such International treaties after signing.

4.Coordinatingwith the Ministry of Planning and Investment in submissionto the Prime Minister for conclusion of specific international treaties on ODA non-refundable aidspecified in this Decree and organize implementation of such International treaties after signing.

5.Takingresponsibility for directing and organizing the landacquisition, compensation andsiteclearance for programs and projects in their respective localities in accordance with law,International treaties on ODA and concessional loans to which the Socialist Republic of Vietnam is a contracting party.

6. Executingthe functionsof state management of ODA and concessional loansin their respective localitiesin accordance with law.

7. Ensuringpublicity and transparencyand takingresponsibility for the effective utilization of ODA and concessional loans for programs and projectsundertheirdirect management and implementation.

8. Arranging funds topay debtstothe central budgetforforeign debtswith regards to the on-lendingprograms and projectsthatapplythe mechanism ofon-lending ofODA and concessional loansfromthe central budgettothe provincial-level budget.

Article 69.Commendation, handling of violations

1.Organizations and individuals thathaveoutstanding achievements in the implementation of this Decree shall be commended and rewarded in accordance with the law on commendation.

2.Organizations and individuals that violate the provisions of this Decree shall, depending on the nature and severity of their violations, be handled in accordance with law.

Chapter 8.

PROVISIONS OF IMPLEMENTATION

Article 70.Organizationfor implementation

1.The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with relevant agencies to promulgate a Circular guiding implementation of this Decree.

2.The Ministry of Finance shall issue documents guiding implementation of this Decree on financial management, policies on taxes, and charges for ODA and concessional loans under its competence.

Article 71. Effectiveness of implementation

1.This Decreeshall come into effectiveon June 06, 2013 and replace the Government’s Decree No. 131/2006/ND-CP, of November 09, 2006, on the management and utilization of official development assistance.

2.Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, thechairpersons of People’s Committees of central-affiliated cities and provinces, relevant organizations and individuals shall implement this Decree.

ANNEX 1

METHODS OF CALCULATING GRANT ELEMENT OF ODA AND CONCESSIONAL LOANS

(Issued with the Government’s Decree No 38/2013/ND-CP, of April 23, 2013)

Grant elements  are percentage of notional value   of loan reflecting concessional level of ODA and concessional loans. Grant elements are calculated by basing on groups of the following inputs:

1. Interest rate

2. Grace period

3. Maturity for debt payment

Formula calculating grant elements:

Of which:

GE       : Non-refundable component (%)

r           : Annual interest rate (%)

a          :  Times  of  repayment  made  annually  (in  line  with  the  terms  and conditions set by

the lending side)

d          : Discount rate of each period: d = (1 + d )^1/a-1 (%)

d   : Discount rate of the year (as agreement between the agencies taking main responsibility for negotiation and the lending party) (%)

G  : Grace period (years)

M  : Repayment period (years)

ANNEX IIa

OUTLINE OF PROGRAM OR PROJECT

(Issued with the Government’s Decree No. 38/2012/ND-CP of April 23, 2013)

 I. Program of Project Title

II. Name of Donor, co-donor

III. Name of Line Agency, Project Owner (tentative)

IV. Duration of the Program or Project

V. Context and Necessity of the Program or Project:

1.  The necessity, the role and position of the program or project in the sectoral or provincial development master plan, plan that are relevant to the program or project contents.

2.  Brief  introduction  about  other  completed  and  on-going  programs  and projects  funded  by  different  sources (if any)  with  the  aim  to  support  the  program  or project proposing agency in solving its relevant issues.

3. The demand for financing from ODA and other concessional loans to the program or project.

VI. Basis for Proposing the Donor

The appropriateness of the program or project with the direction of cooperation and priority areas of the donor; the possibility of satisfying the donors’ conditions for the ODA and concessional loan provision from Vietnamese side.

VII. Objectives of the Program or Project

Description about overall and specific objectives of the program or project; the objectives of components (with regards to the programs).

VIII. Beneficiaries of the Program or Project

IX. Brief description about Major Outcomes of the Program or Project

Expected outcomes of the whole program or project, of respective components and items of the program or project.

X. Total Budget of the Program or Project

1.  ODA, concessional loans (in donor’s currency, equivalent to VND and USD).

2.  Counterpart fund and source of counterpart fund (in VND and equivalent to USD).

XI. Proposals of Domestic Financial Mechanism for the Program or Project

Recommendation for domestic financial mechanism applicable to ODA and concessional loans (With regards to the re-lending or on-lending programs or projects) the possibility and plan for debt payment shall be required to clearly state.

XII. Organization for Management and Implementation of the Program or Project

Proposing the modality of organization for the management and implementation of the program or project, in which giving a brief introduction about the working mechanism and relationship among the  concerned  parties: Line Agency, Project Owner, Project Management Unit, Donor and other parties involved in the management and implementation of the program or project.

XIII. Preliminary Analysis and Selection of Construction and Technology plan (with regards to Investment Project only)

XIV. Preliminary Analysis of the Efficiency, Impacts and Sustainability of the Program or Project

1. Economic and social efficiency of the program or project;

2.  Economic, environmental and social impacts to the sector, field and locality (with regards to investment project);

3. Sustainability of the program or project after completion.

XV. Advanced Activities

Upon agreement with the donor, proposing activities as specified in Article 17 in this Decree, in which   stating clearly estimated costs, timeframe, responsibilities of Vietnamese   agencies and the donor, mechanism for implementation of these activities.

ANNEX IIb

OUTLINE OF NON-PROJECT AID

(Issued with the Government’s Decree No. 38/2013/ND-CP, of April 23, 2013)

I. Non-Project Aid Title

II. Name of Donor, co-donor

III. Line Agency and Receiving Unit of Non-Project Aid (Tentative)

IV. Implementation duration of Non-Project Aid

V. Demand for Non-Project Aid

Describe the necessity and demand for non-project aid.

VI. Objectives and Contents of Non-Project Aid

VII. Total Budget of non-project aid

1. ODA loans (in donor’s currency and equivalent to VND and USD).

2.  Counterpart fund and source of counterpart fund (in VND and equivalent to USD).

VIII. Proposals of Domestic Financial Mechanism for non-project aid

Recommendation for domestic financial mechanism applicable for non-project aid. (With regards to the re-lending or on-lending non-project aid) the possibility and plan for debt payment shall be required to clearly state.

ANNEX IIIa

CONTENTS OF INVESTMENT PROJECT DOCUMENTS (FEASIBILITY STUDY REPORT)

(Issued with the Government’s Decree No. 38/2013/ND-CP, of April 23, 2013)

I. Basic Information of the Project

1. Project Title:

2. Name of Donor, co-donor:

3. Name of Line Agency:

a) Address:…………      b) Tel/Fax:……………

4. Project Proposing Agency:

a) Address:…………      b) Tel/Fax:……………

5. Project Owner:

a) Address:…………      b) Tel/Fax:……………

6. Tentative Duration of the Project implementation:

7. Project Location:

II. Background and Necessity of the Project

1. Appropriateness and contributions of the project to the national socio-economic development plan and strategy, sectoral, regional and local development master plans.

2. Relationship with other programs and projects that support to solve the relevant issues of project.

3.  The  necessity  of  the  project,  especially  the  issues  that  need  to  be addressed in the framework of the project.

III. Basis for Proposing the Donor

Stating clearly the appropriateness of the project to the direction of cooperation and priority areas of   the donor; conditions on provision of ODA and other concessional loans of the donor and the possibility of satisfying them from Vietnamese side:

1.  The appropriateness of the objectives of the project with the policies and priorities of the donor.

2.  Analysis  of  reasons  for  selection  and  advantages  of  donors  in  terms  of technology, management experiences, policy advice in the funded sectors, areas.

3.  The tied conditions in the donor’s regulations (if any) and the possibility of satisfying these conditions from Vietnamese side.

IV. Objectives of the Project

1.  Overall objectives

2.  Specific Objectives

3.  Long-term Objectives

4.  Short-term Objectives

V. Description of the Project

Clearly stating the scale of investment, components and activities of the project, analysis of selection of technical and technology plans.

VI. Beneficiaries of the Project

Indicate direct and indirect beneficiaries of the project.

VII. Major outcomes of the Project

Clearly stating expected outcomes of the project (by component, item if any).

VIII. Solution for Project Implementation

1.   General   solution   on   land   clearance, resettlement; and solution   on supporting technical infrastructure construction (if any).

2. Solution on designing and architecture with regards to the civil works in the urban areas and to the civil works having architecture requirements (if any).

3. Technical design options for technological system, machines and equipment (if any).

4. Solutions on exploitation and utilization of the outcomes of the project.

IX. Implementation, Monitoring and Evaluation plans of the Project

1. Implementation plan and advanced activities (if any).

2.  Overall implementation plan and detailed implementation plan of the project in the first year.

3. Monitoring and evaluation plan of the project.

X. Project Impact Assessment

1.  Economic-financial efficiencies and social efficiencies.

2.  Environmental impact assessment, risks and sustainability of the project after it completion.

3.  Monitoring and evaluation mechanism linked to the impacts of the project.

XI. Organization for Management and Implementation of the Project

Clearly  stating  the modality of organization for management and implementation; mechanism of coordination among the agencies involved in process of preparation, implementation and management of the project; capacity of project owner in project organization and management, including financial capacity.

XII. Total Project Budget

Detailed by components and items, budget line for development investment and recurrent expenditures, including:

1. ODA and concessional loans (donor’s currency and equivalent to USD).

2. Counterpart funds (in VND and equivalent to USD). Clearly stating the sources of counterpart fund (allocated from the central or provincial State budget) and in-kind contribution (if any).  Responsibility for allocation of the counterpart funds by different levels of budget agencies and the implementing   agencies and beneficiaries of the project (if any).

VIII. Domestic Financial Mechanism for project

Stating  clearly  the  modalities  of  domestic  financial  mechanism  (granted from the State budget, totally or partly on-lending and partly granted from the State budget). With regards to the on-lending or re-lending projects the justifications on the financial capacity and solutions for repayment shall be required.

1.  With regard to ODA and concessional loans:

- ODA: ………..…. in donor’s currency, equivalent to ………….VND and converted to USD

- Concessional loan:…..….in donor’s currency, equivalent to……..VND and converted to USD

In which:

-  Granted from the State budget for capital construction…………..  % of the total ODA and concessional loans

- Granted from the State budget for recurrent expenditures….……….. % of the total ODA and concessional loans

-  On-lending or re-lending………………………………………% of the total ODA and concessional loans

2.  With regard to counterpart Fund:

Counterpart fund: …………. VND,

Of which:

- In kind: Equivalent to……….. VND

- In cash: ………VND

- Granted from the central State Budget: …………VND (…%) of total counterpart fund.

-  Other sources (specifying clearly):  ………….VND (…%) of total counterpart fund.

XIV. Advanced Activities

Based on the advanced activities in the decision on approval of funding list, clearly stating advanced activities in details as specified in Article 17 of this Decree.

ANNEX IIIb

CONTENTS OF TECHNICAL ASSISTANCE PROJECT DOCUMENT

(Issued with the Government’s Decree No. 38/2013/ND-CP, of April 23, 2013)

I. Basic Information of the Project

1. Project Title:

2. Name of Donor, co-donor:

3. Name of Line Agency:

a) Address:…………      b) Tel/Fax:……………

4. Project Proposing Agency:

a) Address:…………      b) Tel/Fax:……………

5. Project Owner:

a) Address:…………      b) Tel/Fax:……………

6. Tentative Duration of the Project:

7. Project Location:

II. Background and Necessity of the Project

1. Appropriateness and contribution of the project to the national socio-economic development plan and strategy, sectoral, regional and local development master plans.

2.  Relationship with other programs and projects that support to solve the relevant issues of program or project.

3.  The necessity of the project, especially the issues that need to be addressed in the scope of the project.

4. Needs for technical assistance by ODA source.

III. Basis for Proposing the Donor

Stating clearly the appropriateness of the project to the direction of cooperation and priorities of the   donor; conditions on provision of ODA and other concessional loans of the donor and the possibility of satisfying them from Vietnamese side.

 IV. Objectives of the Project

1.  Overall Objectives

2.  Specific Objectives

3.  Long-term Objectives

4.  Short-term Objectives

V. Description of the Project

Components, major activities and results of technical assistance, assessment of possibility of application of the technical assistance in practice.

VI. Beneficiaries of the Project

Clearly indicate direct and indirect beneficiaries of the project.

VII. Implementation, Monitoring and Evaluation plans of the Project

1. Implementation plan and advanced activities (if any).

2.  Overall implementation plan and detailed implementation plan of the project in the first year.

3. Monitoring and evaluation plan of the project.

VII. Organization for Management and Implementation of the Project

Clearly stating the modality of organization for management and implementation; coordination mechanism of the agencies involved in process of preparation, implementation and management of the project; capacity of project owner in organization and management for project implementation.

IX. Total Project Budget

Classified by components and items, the budget line for development investment and recurrent expenditure, including:

1. ODA loans (donor’s currency and converted to USD).

2. Counterpart funds (in VND and converted to USD). Stating the sources of counterpart fund (allocated from the central or provincial State budget) and value of in-kind contribution (if any).  Responsibility for allocation of the counterpart funds by different levels of budget agencies, the implementing agencies and beneficiaries of the project (if any).

 X. Domestic Financial Mechanism for project

Stating clearly the modalities of domestic financial mechanism for technical support source (granted from the State budget, totally or partly on-lending and partly granted from the State budget). With regards to the on-lending or re-lending projects the justifications on the financial capacity and solutions for repayment shall be required.

1.  With regard to ODA and concessional loans:

- ODA: ………..…. in donor’s currency, equivalent to …………..VND and converted to USD

- Concessional loan:…..….in donor’s currency, equivalent to……..VND and converted to USD

In which:

-  Granted from the State budget for capital construction…………..  % of the total ODA and concessional loans.

- Granted from the State budget for recurrent expenditures….……….. % of the total ODA and concessional loans.

-  On-lending or re-lending………………………………………% of the total ODA and concessional loans.

2.  With regard to counterpart Fund:

Counterpart fund: …………. VND,

Of which:

- In kind: Equivalent to……….. VND.

- In cash: ………VND.

- Granted from the central State Budget: …………VND (…%) of total counterpart fund.

-  Other sources (specifying clearly):  ………….VND (…%) of total counterpart fund.

XIV. Advanced Activities

Based on the advanced activities in the decision on approval of funding list, clearly stating advanced activities in details as specified in Article 17 of this Decree.

ANNEX IIIc

CONTENTS OF PROGRAM DOCUMENT

(Issued with the Government’s Decree No.38/2013/ND-CP, of April 23, 2013)

I. Basic Information of the Program

1. Program Title:

2. Name of Donor, co-donor:

3. Name of Line Agency:

a) Address:…………      b) Tel/Fax:……………

4. Program Proposing Agency:

a) Address:…………      b) Tel/Fax:……………

5. Project Owner:

a) Address:…………      b) Tel/Fax:……………

6. Tentative Duration of the Program:

7. Program Location:

II. Background and Necessity of the Program

1.  Appropriateness and contributions of the program to the national socio- economic development plan and strategy, sectoral, regional and local development master plans.

2. Relationship with other programs and projects that support to solve the relevant issues of the program.

3.  The necessity of the program, especially the issues that need to be addressed in the scope of the program.

III. Basis for Proposing the Donor

Stating clearly the appropriateness of the program to the direction of cooperation and priorities of the   donor, tentative co-donor; conditions on provision of ODA and other concessional loans (including policy framework, if any) and the possibility of satisfying them from Vietnamese side:

1.  The appropriateness of proposals for ODA aid with the policies and priorities of the donor.

2.  Analysis of reasons for selection and advantages of donors in terms of technology, management experiences, policy advice in the funded sector and area.

3.  The tied conditions in the donor’s regulations (if any) and the possibility of satisfying these conditions from Vietnamese side.

IV. Objectives of the Program

Clearly stating the overall and specific, long-term and short-term objectives of the program and its components (if any).

VI. Beneficiaries of the Program

Indicate direct and indirect beneficiaries of the program.

VI. Implementation, Monitoring and Evaluation plans of the Program

1. Implementation plan and advanced activities (if any).

2. Overall implementation plan and detailed implementation plan of the program in the first year.

3. Monitoring and evaluation plans of the project.

VII. Major Outcomes of the Program

VIII. Organization for Management and Implementation of the Project

Clearly stating the modality of organization for management and implementation; coordination mechanism of parties involved in process of preparation, implementation and management of the program; capacity of project owner in program organization and management, including financial capacity.

IX. Total Budget of Program

Classified by components, items, and the development investment and recurrent expenditure budget line, including:

1. ODA loans (donor’s currency and converted to USD).

2. Counterpart funds (in VND and converted to USD). Stating the sources of counterpart fund (allocated from the central or provincial State budget) and value of in-kind contribution (if any). Responsibility for allocation of the counterpart funds by different levels of budget agencies, implementing agencies and beneficiaries of the project (if any).

VIII. Domestic Financial Mechanism for program

Stating  clearly  the  modalities  of  domestic  financial  mechanism  (granted from the State budget, totally or partly on-lending and partly granted from the State budget). With regards  to  the  on-lending  or  re-lending  program  the  justifications on the financial capacity and solutions for repayment shall be required.

1.  With regard to ODA and concessional loans:

- ODA: ………..…. in donor’s currency, equivalent to …………..VND and converted to USD

- Concessional loan:…..….in donor’s currency, equivalent to……..VND and converted to USD

In which:

-  Granted from the State budget for capital construction…………..  % of the total ODA and concessional loans.

- Granted from the State budget for recurrent expenditures….……….. % of the total ODA and concessional loans.

-  On-lending or re-lending………………………………………% of the total ODA and concessional loans

2.  With regard to counterpart Fund:

Counterpart fund: …………. VND,

Of which:

- In kind: Equivalent to……….. VND

- In cash: ………VND

- Granted from the central State Budget: …………VND (…%) of total counterpart fund.

-  Other sources (specifying clearly):  ………….VND (…%) of total counterpart fund.

XIV. Advanced Activities

Based on the advanced activities in the decision on approval of funding list, clearly stating advanced activities in details as specified in Article 17 of this Decree.

ANNEX IIId

CONTENTS OF JOINT PROGRAM OR PROJECT DOCUMENT

(Issued with the Government’s Decree No. 38/2013/ND-CP, of April 23, 2013)

I. Basic Information of the Joint Program or Project

1. Joint Program or Project Title:

2. Name of Donor, co-donor:

3. Name of Line Agency that Proposes the Joint Program or Project:

a) Address:…………      b) Tel/Fax:……………

4.  Name of Line Agencies Participating in the Joint Program or Project:

a) Address:…………      b) Tel/Fax:……………

5. Owner of the Joint Program or Project:

a) Address:…………      b) Tel/Fax:……………

6. Tentative Duration of the Joint Program or Project:

7. Joint Program or Project Location:

II. Background and Necessity of the Joint Program or Project

1.  Appropriateness and contributions of the joint program or project to the national socio-economic development plan and strategy, sectoral, regional and local development master plans.

2. Relationship with other programs and projects that support to solve the relevant issues of the joint program or project.

3. The necessity of the joint program or project, especially the issues that need to be addressed in the scope of the program, project.

III. Basis for Proposing the Donor

Stating clearly the appropriateness of the joint program or project to the direction of cooperation and priorities of the donor; conditions on provision of ODA and other concessional loans of the donor and the possibility of satisfying them from Vietnamese side:

1. The appropriateness of the objectives of the joint program or project with the policies and priorities of the donor.

2. Analysis of reasons for selection and advantages of donors in terms of technology, management experiences, policy advice in the funded areas.

3. The tied conditions in the donor’s regulations (if any) and the possibility of satisfying these conditions from Vietnamese side.

IV. Objectives of the Joint Program or Project

Clearly stating overall and specific, long-term and short-term objectives of the joint program or project and its components or sub-projects.

1.  Overall objectives of the joint program or project.

2.  Overall objectives of components or sub-projects.

V. Description of the Joint Program or Project

Clearly stating the contents of activities and expected outcomes of the joint program or project and its component or sub- projects. Stating clearly the relationship among the component or sub-projects and their corresponding resources.

VI. Beneficiaries of the Joint Program or Project

Clearly stating the direct and indirect beneficiaries of the joint program or project and its component or sub-projects.

VII. Solution for Implementation of the Joint Program or Project

1. General   solution   on   land   clearance   and   resettlement;   solution   on supporting technical infrastructure construction (if any).

2. Solution on designing and architecture with regards to the civil works in the urban areas and to the civil works having architecture requirements (if any).

3. Solutions on exploitation and utilization of the outcomes of the joint program or project.

VIII. Implementation, Monitoring and Evaluation plans of the Joint Program or Project

1. Implementation plan and advanced activities (if any).

2. Overall implementation plan and detailed implementation plan of the joint program or project in the first year.

3. Monitoring and evaluation plans of the joint program or project.

 IX. Impact Assessment of the Joint Program or Project

1.  Social, economic and financial efficiencies; environment impacts, risks and sustainability of the joint program or project after its completion.

2.  Monitoring and evaluation mechanisms linked to the impacts of the joint program or project.

X. Organization  for Management and Implementation of the Joint Program or Project

Stating clearly organizational structure of management and implementation of the joint program or project; coordination mechanism of parties engaged in process of preparation for           implementation, implementation  and management of the joint program or project; organization and management capacity of the line agency and the owner of the joint program or project, the  Steering  Committee  of the joint program or project (if any), the  line agencies and project owners of the components or sub-projects, including financial capacity.

XI. Total Budget for Implementation of the Joint Program or Project and its components or sub-projects

Classified by components and items, development investment and recurrent expenditure budget line, plan on financial allocation for agencies participating in joint program or project, including:

1. ODA and concessional loans (donor’s currency and converted to VND and USD).

2. Counterpart funds (in VND and converted to USD). Stating the sources of counterpart fund (allocated from the central or provincial State budget) and value of in-kind contribution (if any). Responsibility for allocation of the counterpart funds by different levels of budget agencies, implementing agencies and beneficiaries of the project (if any).

XII. Domestic Financial Mechanism for joint program, project

Stating clearly the modalities of domestic financial mechanism (granted from the State budget, totally or partly on-lending and partly granted from the State budget). With regards to the on-lending or re-lending projects, the justifications on the financial capacity and solutions for repayment shall be required.

1.  With regard to ODA loans:

- ODA: ………..…. in donor’s currency, equivalent to ………….VND and converted to USD

- Concessional loan:…..….in donor’s currency, equivalent to……..VND and converted to USD

In which:

-  Granted from the State budget for capital construction…………..  % of the total ODA and concessional loans.

- Granted from the State budget for recurrent expenditures….……….. % of the total ODA and concessional loans.

-  On-lending or re-lending………………………………………% of the total ODA and concessional loans

8.  With regard to counterpart Fund:

Counterpart fund: …………. VND,

Of which:

- In kind: Equivalent to……….. VND

- In cash: ………VND

- Granted from the central State Budget: …………VND (…%) of total counterpart fund.

-  Other sources (specifying clearly):  ………….VND (…%) of total counterpart fund.

XIV. Advanced Activities

Based on the advanced activities in the decision on approval of funding list, clearly stating advanced activities in details as specified in Article 17 of this Decree.