Nghị định 16/2016/ND-CP

DECREE

MANAGEMENT AND USE OF OFFICIAL DEVELOPMENT ASSISTANCE AND CONCESSIONAL LOANS GRANTED BY FOREIGN SPONSORS

Pursuant to the Law on Government organization dated June 19, 2015;

Pursuant to the Law on Government Budget dated June 25, 2015;

Pursuant to the Law on Accession and implementation of international treaties dated June 14, 2005;

Pursuant to the Law on Public debt management dated June 17, 2009;

Pursuant to the Law on Bidding dated November 26, 2013;

Pursuant to the Law on Public investment dated June 18, 2014;

Pursuant to the Law on Construction dated June 18, 2014;

Pursuant to the Law on Investment dated November 26, 2014;

At the request of the Minister of Planning and Investment;

The Government promulgates a Decree on management and use of official development assistance (ODA) and concessional loans granted by foreign sponsors.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Decree provides for management and use of official development assistance (ODA) and concessional loans granted by foreign governments, international organizations, inter-government or international organizations, governmental organizations authorized by foreign governments (hereinafter referred to as foreign sponsors) to the State or the Government of Socialist Republic of Vietnam.

Article 2. Regulated entities

This Decree applies to agencies, organizations, and individuals that participate in or are related to the management and use of ODA and concessional loans granted by foreign sponsors and reciprocal capital of Vietnam.

Article 3. Definitions

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

1. “Steering Committee” means an organization established by the governing body of the program/project funded by ODA or concessional loans (hereinafter referred to as “program/project” participated by authorized representatives of relevant agencies and responsible for giving direction, cooperating, and supervising the execution of the program/project.  Where necessary under an agreement with the foreign sponsor, the Steering Committee may includes representatives of the foreign sponsor.

2. “Project Management Board” means an organization established to assist the project owner in managing the execution of one or some program/project.

3. “report on proposal of investment guidelines” means a report on proposal of investment guidelines defined in the Law on Public Investment made with regard to the program/project funded by ODA or concessional loans, except for projects of national importance and Group A projects funded by ODA or concessional loans, as the basis for competent authority to decide the investment guidelines for the program/project.

4. “pre-feasibility study report” means a pre-feasibility study report defined in the Law on Public Investment made with regard to projects of national importance and Group A projects funded by ODA or concessional loans as the basis for competent authority to decide the investment guidelines for the program/project.

5. “program” means a series of activities and projects funded by ODA or concessional loans that are interrelated and might be related to one or some fields, disciplines, territories, or subjects with an aim of achieving one or some targets and is executed in one or several stages.

6. “program associated to a policy framework” means a program that has conditions for disbursement of ODA or concessional loans of the foreign sponsor associated to the commitment of Vietnam’s government to building and implementing policies, regulations, solutions for socio-economic development according to the scale and schedule agreed among the parties.

7. "joint program/project” means a program/project in which an agency coordinates the whole program/project and other governing bodies participate in the management, execution, operation of component projects of the joint program/project.

8. “regional program/project” means a program/project that is sponsored globally or for which sponsorships are received by a group of nations or a region or several region to engage in cooperation in achieving certain targets and benefits of participating parties and common interests of the whole region or world. Vietnam’s participation in such program/project might be:

a) Participation in one or some activities designed by the foreign sponsor in the regional program/project;

b) Executing operations for which sponsorships are provided for Vietnam in order to prepare for and execute the program/project within the framework of the regional program/project.

9. “sectoral access program” means a program funded by ODA or concessional loans in which the foreign sponsor provides assistances according to the development program of an industry or sector in order to ensure harmony, sustainable and effective development of such industry or sector.

10. “governing body” means the central agency of a political organization, the People’s Supreme Procuracy, the People’s Supreme Court, an agency of the National Assembly, State Audit Agency, Office of the President, a Ministry, ministerial agency, Governmental agency, the People’s Committee of a province, central agency of Vietnamese Fatherland Front, of a socio-political organization, socio-political-professional organization, or socio-professional organization that has a program/project funded by ODA or concessional loans.

11. “project owner” means a unit assigned by the governing body to manage and use ODA, concessional loans, and reciprocal capital to execute the program/project.

12. “domestic financial mechanism” means regulations on the use of ODA and concessional loans from state budget for the program/project, including:

a) Full disbursement;

b) Partial on-lending;

c) Full on-lending.

13. “project” means a collection of proposals to use ODA, concessional loans, Vietnam’s reciprocal capital that are inter-related in order to achieve one or some targets and is executed within a specific area over a certain period of time and with a certain resources.  Projects are classified into investment projects and technical assistance projects depending on their nature.

14. Investment project means a project for investment activities within a specific area over a certain period of time Depending on their nature, investment projects are classified into:

a) Construction projects are projects for investment in construction, expansion, upgrade, or renovation of construction works in order to improve or maintain the quality of works, products or services over a certain period of time, including purchase of assets and equipment of the projects;

b) Non-construction investment project means a project for investment in purchase of assets, purchase, upgrade of machinery and equipment, and other investment projects not defined in Point a of this Clause.

15. ”technical assistance project” means a project for assistance in study into policies, institutions, professions, improvement of human capacity, or for preparation for another program/project through activities such as provision of domestic and foreign experts, training, provision of equipment and materials, survey, conventions in Vietnam and overseas. Technical assistance projects comprise technical assistance projects funded by ODA grant and technical assistance projects funded by ODA loans or concessional loans.

16. “international treaty on ODA or concessional loans” means an international treaty on the receipt, management, and use of ODA or concessional loans, which is either:

a) a framework treaty on ODA or concessional loan, which means an international treaty on framework conditions and principles related to the strategy, policies, cooperation, prioritized fields, programs and projects; standards to be complied with in provision and use of ODA or concessional loans; commitment on ODA or concessional loans for one or several years, and other contents agreed by its signatories; or

b) a specific international treaty on ODA or concessional loan, the content of which is related to the targets, activities, duration, conditions for assistance, capital, capital structure, financial requirements and repayment schedule; mechanism for management, duties and entitlements of the parties to management of the program/project funded by ODA or concessional loans, and other contents agreed by its signatories.

17. “budget assistance” means a method of capital provision that transfers the ODA or concessional loan directly to state budget, which will be managed and used in accordance with state budget regulations and procedures in order to achieve set targets under the agreement with the foreign sponsor.

18. “serving bank” means a commercial bank considered by the State bank of Vietnam as capable of processing ODA or concessional loan transaction and selected by the agency in charge of negotiation of the international treaty or agreement on ODA or concessional loan to process the international transactions of the program/project.

19. “non-project” means a method of providing ODA grant in the form of a separate assistance without establishing any project. The assistance may be cash, goods, experts, conventions, seminars, training, research, survey.

20. “decision on investment guidelines” means a decision issued by a competent authority on investment guidelines for the program/project. Its main content includes: name of the program/project, the foreign sponsor or co-sponsor; name of the governing body, main targets; time and location; capital limit; domestic financial mechanism and on-lending method; prioritized activities as the basis for the governing body to cooperate with the foreign sponsor in compiling the program/project instrument or non-project instrument.

21. “agreement on ODA or concessional loans” means a written agreement on ODA or concessional loans concluded in the name of the State or the Government of Socialist Republic of Vietnam and is not an international treaty.

22. “program/project instrument” means a document that presents the context, necessity, targets, contents, primary activities, economic, social and environmental effects, total capital, capital sources and structure, domestic financial mechanism, assistance or disbursement method via state budget; mechanism for on-lending via a commercial bank or directly from state budget, method for management of program/project execution. Program/project instruments include technical assistance program/project instruments and investment project instruments (feasibility study reports).

23. “ODA or concessional loan” means capital provided by a foreign sponsor for the State or the Government of Socialist Republic of Vietnam to assist in development, assurance of welfare and social security, which is either:

a) ODA grant, which does not has to be repaid to the foreign sponsor;

b) ODA loan, which has to be repaid to the foreign sponsor at a concessional rate, deadline, deferral. The minimum grant element is at least 35% for conditional assistance, and 25% for unconditional assistance. The calculation of grant element is specified in Appendix I hereof;

c) concessional loan, which means a loan that is granted at a more favorable interest rate than commercial loan but the grant element of which is lower than that of ODA loans as specified in Point b hereof.

24. “unconditional ODA or concessional loan” means ODA or concessional loan that is provided without any conditions that require purchase of goods and services from the sponsoring nation or a group of certain nations required by the foreign sponsor.

25. “conditional ODA or concessional loan” means ODA or concessional loan that is provided on condition that goods and services be purchased from the sponsoring nation or a group of certain nations required by the foreign sponsor.

26. “reciprocal capital” means capital provided by Vietnam (in cash or in kind) in the program/project funded by ODA or concessional loan in order to prepare for and execute the program/project. Reciprocal capital is provided by central government budget, local government budget, project owner, or contributed by the beneficiaries, or from other lawful capital sources.

Article 4. Methods for provision of ODA and concessional loans

1. Methods for provision of ODA and concessional loans include:

a) Program;

b) Project;

c) Budget assistance;

d) Non-project;

2. Programs/projects funded by ODA or concessional loans shall be classified in accordance with Article 6 of the Law on Public Investment.

Article 5. Priority of ODA and concessional loan provision

1. Assistance in execution of socio-economic infrastructure programs and projects.

2. Assistance in study into formulation of socio-economic development policies and improvement of state management institutions.

3. Assistance in development of human resources, scientific research and technological development.

4. Assistance in environmental protection, response to climate change, and green growth.

5. Use as state investment in PPP projects

6. Other prioritized fields decided by the Prime Minister.

Article 6. Rules for using ODA, concessional loans, and reciprocal capital

1. The use of ODA grant for the following activities shall be prioritized: execution of program/project for assistance in development of policies, institution, improvement of human capacity; direct assistance in improvement of financial, cultural, social, and environmental life of the people, especially poor people in rural areas, highlands, ethnic minorities; development of healthcare, education, scientific research, innovation; preparation for programs and projects funded by ODA loans or concessional loans, and PPP projects.

2. The use of ODA loans for the following activities shall be prioritized preparation and execution of projects that are not able to directly recover capital, programs and projects that are part of state budget expenditures and able to earn income serving socio-economic interest.

3. Concessional loans should be used for execution of programs and projects that can recover capital.

4. Grant of loans on conditions that suppliers or contractors be appointed by the foreign sponsor shall be applied to: Loans for solving emergency issues related to natural disasters, national defense, energy security; cases in which the project owner can prove that foreign sponsor’s goods or equipment are more advantageous in terms of technology or prices; other cases decided by the Prime Minister.

5. The use of ODA and concessional loans in other cases shall be decided by the Prime Minister.

6. Reciprocal capital should be provided for programs and projects funded by ODA and concessional loans that are fully disbursed by state budget from 5-year public investment plans and annual public investment plans on schedule under international treaties or agreements on ODA or concessional loans, and such capital are actually disbursed during the execution.

Article 7. Basic rules for state management of ODA and concessional loans

1. ODA and concessional loans belong to state budget, are used for socio-economic development of Vietnam, and reflected in state budget as prescribed by law.

2. The Government shall unify state management of ODA and concessional loans ensuring effective use of capital and solvency, decentralization associated with responsibilities, power, managerial capability of Ministries, regulatory bodies, and local governments; assurance of cooperation in management, supervision of relevant agencies according to applicable regulations of law.

3. Ensure openness and transparency; raise accountability in terms of policies, procedures for raising, managing, and using ODA and concessional loans among industries, sectors, and areas; the use of ODA and concessional loans and its effectiveness.

4. Prevent and deal with corruption, losses, and wastefulness in management and use of ODA and concessional loans in accordance with law.

Article 8. Rules for applying domestic financial mechanism to programs and projects funded by ODA and concessional loans

1. ODA and concessional loans shall be fully disbursed from state budget and provided for programs and projects for investment in infrastructure, social welfare, or other areas that cannot directly recover capital as state budget expenditures; ODA loans shall be partially disbursed or on-lent to programs and projects that are local government budget expenditures as prescribed by law.

2. The People’s Committees of provinces shall fully on-lend concessional loans to projects that are local government budget expenditures, use ODA loans and concessional loan as local government’s contribution in PPP projects.

3. Projects capable of fully or partially recovering capital: on-lent from state budget as prescribed by effective regulations of law.

Article 9. Access of private sector to ODA and concessional loans

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

2. Method for the private sector to access and use ODA and concessional loans:

a) Access and use ODA or concessional loans within the credit limit of domestic financial institutions and credit institutions to serve operations conformable with international treaties or agreements on ODA or concessional loans and loaning procedures of such financial institutions and credit institutions;

b) Access and use ODA or concessional loans used by the Government as state investment in PPP projects according to applicable regulations of law on public-private partnerships and specific international treaties on ODA or concessional loan;

c) Access and use ODA or concessional loans on-lent via commercial banks which incur all the risks;

d) Access and use ODA or concessional loans through participation in private sector assistance programs/projects of governing bodies

Article 10. Procedures for management and use of ODA and concessional loans

1. Procedures for management and use of ODA or concessional loan include:

a) Raising ODA or concessional loan;

b) Drafting, assessing, issuing the decision on investment guidelines for the program/project;

c) Drafting, assessing, issuing the decision on investment in the program/project;

d) Concluding the international treaty or agreement on ODA or concessional loan;

dd) Managing the execution of the program/project;

e) Completing, transferring the result of the program/project.

2. The procedures for management and use of ODA or concessional loan of a non-project or budget assistance are the same as those of programs and projects specified in Clause 1 of this Article, unless otherwise prescribed by this Decree.

Article 11. Raising ODA or concessional loan

1. ODA or concessional loan shall be raised through negotiation of development policies with foreign sponsor according to 10-year socio-economic development strategies, long-term strategy for public debt, and mid-term public debt management program; annual and 5-year limits on ODA and concessional loans; orientation of attraction of ODA and concessional loans; 5-year socio-economic development plan, nationwide, ministerial, sectoral, and local development plans; annual plans for taking and repaying foreign loans approved by competent authority.

2. The Ministry of Planning and Investment shall take charge and cooperate with relevant agencies and foreign sponsor in holding national, interdisciplinary, and regional conventions and forums to raise ODA and concessional loans.

3. Ministries, regulatory bodies, and local governments shall take account of the strategies, development plans, the need for ODA or concessional loan, capacity of execution, capacity of providing resources and cooperate with the Ministry of Planning and Investment, relevant agencies and foreign sponsors in holding sectoral or local conventions or forums to raise ODA or concessional loans.

4. Depending on available resources and subject to permission by competent authorities, Ministries and regulatory bodies may hold sector-specific Partnership Group to boost cooperation, share information, knowledge, experience, and assist each other among foreign sponsors, avoid repetition, and improve the effectiveness of ODA or concessional loan.

5. Overseas diplomatic missions of Vietnam or Vietnam’s representatives at international organizations shall cooperate with the Ministry of Planning and Investment in raising ODA and concessional loans at the home countries.

Chapter II

DRAFTING, ASSESSING, ISSUING THE DECISION ON INVESTMENT GUIDELINES

Article 12. The power to issue a decision on investment guidelines for a program/project

1. The power to issue a decision on investment guidelines for a national target program or project of national importance funded by ODA or concessional loan is specified in Clause 1 Article 17 of the Law on Public Investment.

2. The power to issue a decision on investment guidelines for a target program funded by ODA or concessional loan is specified in Clause 2 Article 17 of the Law on Public Investment.

3. The Prime Minister has the power to issue decisions on investment guidelines for programs and projects funded by ODA or concessional loan other than those mentioned in Clause 1 and Clause 2 of this Article, including:

a) Programs and projects funded by ODA loans or concessional loan;

b) Programs and projects, non-projects funded by ODA grant in the following cases: Group A and Group B investment programs and projects; joint programs and projects; programs, projects, non-projects associated with a policy framework; national defense, security, religion programs, projects, non-projects; sectoral access programs; technical assistance projects for preparation for programs and projects funded by ODA loans or concessional loans; technical assistance projects funded by at least USD 2 million; assistance in purchase of goods subject to permission by the Prime Minister; Vietnam’s participation in regional programs and projects;

c) Budget assistance.

4. The heads of governing bodies have the power to issue decisions on investment guidelines for programs, projects, non-projects other than those mentioned in Clause 1, Clause 2, and Clause 3 of this Article.

Article 13. Procedures for proposing and selecting proposals for programs and projects funded by ODA or concessional loan

1. The proposal of a program/project funded by ODA or concessional loan shall be formulated in accordance with Clause 1 and Clause 2 Article 24 of the Law on Public Investment. The specimen of such proposal is provided in Appendix II hereof.

2. Criteria for selecting proposals of programs and projects funded by ODA or concessional loan:

a) Suitability for socio-economic development strategies or master plans, annual and mid-term public investment plans approved by competent authorities; policies and orientation of priority for provision of foreign sponsors’ ODA and concessional loans;

b) Assurance of socio-economic, environmental effect and sustainable development;

c) Assurance of sustainable economic development;

d) Ability to balance ODA, concessional loans, and reciprocal capital;

dd) Ability to repay public debts, government debts and municipal debts (for programs and projects funded by ODA loans or concessional loans);

e) No overlapping with programs and projects that already have decisions on investment guidelines or investment decisions.

3. Procedures for selecting a program/project proposal and notifying the governing body to make a pre-feasibility study report or report on proposal of investment guidelines:

a) For programs and projects funded by ODA grant within the competence of the Prime Minister: the Ministry of Planning and Investment shall take charge and cooperate with relevant agencies in selecting an appropriate program/project proposal according to the criteria specified in Clause 2 of this Article and send a written notification of the selected program/project proposal to the governing body for it to make a pre-feasibility study report or report on proposal of investment guidelines;

b) For programs and projects funded by ODA loans or concessional loan: Ministry of Planning and Investment shall take charge and cooperate the Ministry of Finance and relevant agencies in selecting an appropriate program/project proposal according to the criteria specified in Clause 2 of this Article and request the Prime Minister to decide; the Ministry of Planning and Investment shall send the governing body a written notification of the Prime Minister’s decision on the program/project proposal.

4. While preparing the program/project, the governing body shall submit reports to the Ministry of Planning and Investment, the Ministry of Finance, and relevant agencies on the progress and difficulties to be dealt with by the Ministry of Planning and Investment, the Ministry of Finance and relevant agencies before submitting the decision on investment guidelines to competent authority.

Article 14. Procedures for issuing a decision on investment guidelines for a national target program, project of national importance, or target program funded by ODA or concessional loan

1. Procedures for issuing a decision on investment guidelines for a national target program or project of national importance funded by ODA or concessional loan are specified in Article 19 through 21 of the Law on Public Investment. The specimens of a report on proposal of investment guidelines and pre-feasibility study report are provided in Appendix IIIa and IIIb hereof.

2. Procedures for issuing a decision on investment guidelines for a target program funded by ODA or concessional loan are specified in Article 22 of the Law on Public Investment. The specimen of a report on proposal of investment guidelines is provided in Appendix IIIa hereof.

Article 15. Procedures for issuing a decision on investment guidelines for a Group A project funded by ODA or concessional loan

1. The head of the governing body has the responsibility to:

a) Pursuant to Clause 3 Article 13 hereof, appoint an affiliated unit to prepare the pre-feasibility study report according to specimen provided in Appendix IIIb hereof;

b) Appoint an affiliated unit in charge of assessment or establish a council to assess the pre-feasibility study report, the sources of ODA or concessional loan, reciprocal capital, and the ability to balance such sources;

c) Request the unit mentioned in Point a of this Clause to complete the pre-feasibility study report according to the assessment result before it is submitted to the Prime Minister.

2. The President of the People’s Committee of the province has the responsibility to:

a) Pursuant to Clause 3 Article 13 hereof, appoint an affiliated unit to prepare the pre-feasibility study report according to specimen provided in Appendix IIIb hereof;

b) Establish an assessment council to assess the pre-feasibility study report, the sources of ODA or concessional loan, reciprocal capital, and the ability to balance such sources; the chairperson of the council is a Deputy President of the People’s Committee of the province, the Department of Planning and Investment is the standing member, relevant agencies are members of the council;

c) Request the unit mentioned in Point a of this Clause to complete the pre-feasibility study report according to the assessment result and submit a report to the People’s Committee of the province;

d) Submit the pre-feasibility study report to the People’s Council of the province before it is submitted to the Prime Minister.

3. The Prime Minister shall decide whether to establish an interdisciplinary assessment council or appoint an agency to assess the pre-feasibility study report on the basis of the proposal of the Ministry of Planning and Investment.

4. The Ministry of Planning and Investment shall take charge and cooperate with the Ministry of Finance and the State bank of Vietnam (for capital provided by World Bank, Asia Development Bank, international financial institutions, and other international banks in which the State bank of Vietnam is a representative) in assessing the sources of ODA, concessional loan, reciprocal capital, and the ability to balance them, then send a report to the interdisciplinary assessment council or assessing agency mentioned in Clause 3 of this Article. The Ministry of Finance shall take charge and cooperate with the Ministry of Planning and Investment and relevant agencies in sending their comments on the domestic financial mechanism and on-lending method to the interdisciplinary assessment council or assessing agency mentioned in Clause 3 of this Article.

5. The interdisciplinary assessment council or assessing agency mentioned in Clause 3 of this Article shall send their comments to the governing body for it to complete and submit the pre-feasibility study report to the Prime Minister.

6. The Prime Minister shall consider issuing the decision on investment guidelines.

Article 16. Procedures for issuing a decision on investment guidelines for program/project or non-project funded by ODA or concessional loan within the competence of the Prime Minister other than Group A projects

1. Pursuant to Clause 3 Article 13 hereof, the governing body shall prepare a report on proposal of investment guidelines according to specimen provided in Appendix IIIc and Appendix IV hereof.

2. The governing body shall send a dispatch enclosed with the report on proposal of investment guidelines to the Ministry of Planning and Investment for assessment.

3. The Ministry of Planning and Investment shall take charge and cooperate with the Ministry of Finance and the State bank of Vietnam (for capital provided by World Bank, Asia Development Bank, international financial institutions, and other international banks in which the State bank of Vietnam is a representative) in assessing the sources of ODA, concessional loan, reciprocal capital, and the ability to balance them; collect comments on the report on proposal of investment guidelines from relevant agencies. The Ministry of Finance shall take charge and cooperate with the Ministry of Planning and Investment and relevant agencies in making comments on the domestic financial mechanism applied to the program/project or non-project and on-lending method.

4. In consideration of the comments on assessment of capital sources and the ability to balance them, comments of relevant agencies, and comments of the Ministry of Finance on the domestic financial mechanism applied to the program/project or non-project and the on-lending method, the Ministry of Planning and Investment shall take charge of the assessment of the report on proposal of investment guidelines by holding a convention or seeking comments from relevant agencies depending on the scale, nature, and contents of the program/project or non-project.

5. According to the assessment result, the Ministry of Planning and Investment shall send a dispatch enclosed with the assessment report to the Prime Minister.

6. The Prime Minister shall consider issuing the decision on investment guidelines.

Article 17. Procedures for issuing a decision on investment guidelines for program/project or non-project funded by ODA grant within the competence of the head of the governing body

1. For investment program/project:

a) Pursuant to Clause 3 Article 13 hereof, the governing body shall prepare a report on proposal of investment guidelines according to specimen provided in Appendix IIIc hereof;

b) The governing body shall send an official dispatch enclosed with the report on proposal of investment guidelines to the Ministry of Planning and Investment, the Ministry of Finance, and relevant agencies to seek their comments about the investment guidelines;

c) The Ministry of Planning and Investment shall take charge and cooperate with the Ministry of Finance and the State bank of Vietnam (for capital provided by World Bank, Asia Development Bank, international financial institutions, and other international banks in which the State bank of Vietnam is a representative) in assessing the sources of ODA, concessional loan, reciprocal capital, and the ability to balance them. The Ministry of Finance shall take charge and cooperate with the Ministry of Planning and Investment and relevant agencies in making comments on the domestic financial mechanism applied to the program/project and on-lending method.

d) In consideration of the comments of the Ministry of Planning and Investment on the capital sources and the ability to balance them, comments of the Ministry of Finance on the domestic financial mechanism applied to the program/project and on-lending method, the governing body shall organize the assessment by holding a convention or seeking comments about the report on proposal of investment guidelines from relevant agencies depending on the scale, nature, and contents of the program/project and issue the decision on investment guidelines.

2. For technical assistance projects and non-projects:

a) Pursuant to Clause 3 Article 13 hereof, the governing body shall prepare a report on proposal of investment guidelines according to specimen provided in Appendix IIIc and Appendix IV hereof;

b) The governing body shall send an official dispatch enclosed with the report on proposal of investment guidelines to the Ministry of Planning and Investment, the Ministry of Finance, and relevant agencies to seek their comments about the investment guidelines;

c) The Ministry of Planning and Investment shall take charge and cooperate with the Ministry of Finance and the State bank of Vietnam (for capital provided by World Bank, Asia Development Bank, international financial institutions, and other international banks in which the State bank of Vietnam is a representative) in assessing the sources of ODA, concessional loan, reciprocal capital, and the ability to balance them; domestic financial mechanism applied to the technical assistance project or non-project;

d) In consideration of the comments of other agencies, comments of the Ministry of Planning and Investment on the capital sources and the ability to balance them; domestic financial mechanism applied to the technical assistance project or non-project, the governing body shall consider issuing the decision on investment guidelines.

Article 18. Participation in regional programs and projects

1. The governing body shall send the Ministry of Planning and Investment an official dispatch enclosed with the instrument of the regional program/project which specifies interests and duties of participants. The Ministry of Planning and Investment shall take charge and cooperate with relevant agencies in requesting the Prime Minister to decide the participation in the regional program/project.

2. If the governing body of the regional program/project has not been identified, the Ministry of Planning and Investment shall take charge and cooperate with relevant agencies in requesting the Prime Minister to decide Vietnam’s participation in the regional program/project and the governing body.

3. Where a foreign sponsor provides ODA or concessional loan to develop and execute a program/project within the framework of a regional program/project, the governing body shall follow the procedures for issuing a decision on investment guidelines specified in Article 14 through 17 hereof depending on the type of the program/project.

Article 19. Prior activities

the governing body shall carry out prior activities during the preparation for the program/project, including:

1. After the decision on investment guidelines is issued by a competent authority, the governing body shall appoint the unit which proposes the program/project to:

a) Formulate a relocation policy framework and submit it to a competent authority for approval in the process of assessing the program/project instrument and deciding investment;

b) Make a plan for contractor selection; prepare the request for expression of interest, pre-qualification documents, bidding documents, request for proposals.

2. During the period since the investment in the program/project is decided by a competent authority until the international treaty on ODA or concessional loan for the program/project takes effect, the governing body shall organize the following activities:

a) Assessing and approving the plan for contractor selection; prepare the request for expression of interest, pre-qualification documents, bidding documents, request for proposals; organizing the contractor selection, verifying and approving the contractor selection result, negotiating and completing the contracts for purchase of goods, construction and installation to be executed within the first 12 months of the program/project and some consultancy contracts (project management consultancy, engineering design consultancy, supervision consultancy, consultancy on relocation, environmental and social issues);

b) The goods purchase, construction and installation, and consultancy contracts mentioned in Point a of this Clause may only be signed after the international treaty on ODA or concessional loan for the program/project takes effect.

3. Capital for carrying out prior activities shall be provided by the project owner from the source of capital for project preparation, or advanced and reimbursed by the project’s capital under a prior consensus with the foreign sponsor.

Article 20. Main content of decision on investment guidelines

Main content of a decision on investment guidelines:

1. Names of the program/project, foreign sponsor and co-sponsor(s).

2. Name of the governing body.

3. Primary targets and effects of the program/project.

4. Time and location for execution of the program/project.

5. Specific capital of the program/project (ODA grant, ODA loan, concessional loan, reciprocal capital).

6. Domestic financial mechanism and on-lending method applied to the program/project.

7. Prior activities

Article 21. Revising the decision on investment guidelines

In the course of implementation of the decision on investment guidelines, if the duration program/project is extended by not more than 6 months, the decision on investment guidelines does not have to be revised. In case of extension of the program/project duration by 6 months or more and other contents of the decision on investment guidelines:

1. a) For decision on investment guidelines for a national target program, project of national importance, target program, or Group A project:

a) The governing body shall send the Ministry of Planning and Investment, the Ministry of Finance, and relevant agencies an official dispatch on revisions to the decision on investment guidelines;

b) The Ministry of Planning and Investment shall take charge and cooperate with the Ministry of Finance and relevant agencies in discussing and reaching a consensus with the foreign sponsor on relevant revisions;

c) In consideration of comments of the Ministry of Planning and Investment, the Ministry of Finance, and relevant agencies, the governing body shall propose revisions to the decision on investment guidelines to the Prime Minister or a competent authority for decision.

2. For decision on investment guidelines for a program/project within the competence of the Prime Minister other than Group A projects:

a) The governing body shall send the Ministry of Planning and Investment, the Ministry of Finance, and relevant agencies an official dispatch on revisions to the decision on investment guidelines;

b) In consideration of the official dispatch sent by the governing body and comments of relevant agencies specified in Point a of this Clause, the Ministry of Planning and Investment shall take charge and cooperate with the Ministry of Finance in discussing and reaching a consensus with the foreign sponsor on relevant revisions and submit them to the Prime Minister (or a competent authority if the revisions are beyond the competence of the Prime Minister) for decision.

3. For decision on investment guidelines for a program/project within the competence of the head of the governing body:

a) The governing body shall seek comments on revisions to the decision on investment guidelines from the Ministry of Planning and Investment, the Ministry of Finance, and relevant agencies;

b) In consideration of such comments, the governing body shall discuss and reach a consensus with the foreign sponsor on revisions to the decision on investment guidelines;

c) Where the revisions to the decision on investment guidelines are beyond the competence of the governing body, the governing body shall follow the instructions in Clause 1 and Clause 2 of this Article.

Chapter III

DRAFTING, ASSESSING, ISSUING THE DECISION ON INVESTMENT

Article 22. Responsibilities of the governing body for drafting, assessing, issuing the decision on investment in the program/project

After a decision on investment guidelines is issued the governing body has the responsibilities to:

1. Issue a decision on the project owner and request the project owner to cooperate with the foreign sponsor in preparing the program/project instrument.

2. Appoint personnel to prepare and assess the program/project instrument.

3. Organize the assessment, approve the program/project instrument and decision on investment in the program/project within its competence; request the competent authority to assess and approve the program/project instrument and decision on investment in the program/project.

Article 23. Responsibilities of the project owner for drafting, assessing, issuing the decision on investment in the program/project

1. Cooperate with the foreign sponsor in preparing the program/project instrument in accordance with Article 27 hereof.

2. Make a report on assessment of the program/project instrument in accordance with Article 28 hereof and submit it to the governing body.

Article 24. Capital for program/project preparation

1. The decision on investment guidelines is the basis for planning and providing capital for program/project preparation. Capital for program/project preparation includes:

a) Expenditures on research, investigation, survey, collection, analysis, and processing initial data;

b) Expenditures on preparing and completing the program/project instrument, including consultancy and translation costs;

c) Expenditure on assessment of the program/project instrument;

d) Expenditure on provision of training for officials in charge of program/project management;

dd) Expenditures on prior activities based on the decision on investment guidelines specified in Clause 7 Article 20 hereof. Funding sources are specified in Clause 3 Article 19 hereof.

2. For a program/project eligible for full disbursement: the project owner shall prepare a plan for program/project preparation, which will be included in the annual budget plan of the governing body. The procedures for approving, providing capital for program/project preparation shall comply with regulations of law on state budget.

If the plan for provision of capital for program/project preparation is made at a different time from that of the annual budget plan, the governing body shall provide it from the allocated capital for program/project preparation; otherwise, the governing body shall request the Ministry of Planning and Investment and the Ministry of Finance to decide or request a competent authority to provide additional funding.

3. For a program/project eligible for full on-lending or partial on-lending from state budget: the project owner shall provide capital for program/project preparation themselves. If not capable, the project owner shall request the governing body to decide as prescribed by law.

4. Where capital for program/project preparation is provided by the foreign sponsor, the project owner shall send a report to the governing body in order to include it in the annual plan for provision of capital for program/project preparation of the governing body.

Article 25. The power to approve program/project instrument and decision on investment in the program/project

1. The Prime Minister has the power to approve the instrument and decision on investment of the following programs/projects:

a) National target programs, projects of national importance whose decisions on investment guidelines have been issued by the National Assembly;

b) Target programs whose decisions on investment guidelines have been issued by the Government;

c) Programs associated to policy frameworks; programs and projects in the area of national defense, security, religion that already have decisions on investment guidelines.

2. The head of a governing body has the power to approve the instrument and decision on investment of the programs and projects other than those specified in Clause 1 of this Article.

Article 26. Procedures for drafting, assessing, and issuing the decision on investment in the program/project

1. Procedures for drafting, assessing, and issuing a decision on investment in a national target program funded by ODA or concessional loan are specified in Article 41 of the Law on Public Investment.

2. Procedures for drafting, assessing, and issuing a decision on investment in a target program funded by ODA or concessional loan are specified in Article 42 of the Law on Public Investment.

3. The procedures for drafting, assessing, and issuing a decision on investment in a project of national importance funded by ODA or concessional loan are specified in Clause 1 Article 44 of the Law on Public Investment.

4. The procedures for drafting, assessing, and issuing a decision on investment in a construction program/project funded by ODA or concessional loan shall comply with regulations of law on construction and relevant regulations of law, except for projects of national importance.

5. Procedures for drafting, assessing, issuing a decision on investment in other programs and projects funded by ODA or concessional loan within the competence of the Prime Minister:

a) After a decision on investment guidelines is issued, the project owner shall cooperate with the foreign sponsor in preparing the program/project instrument and submit it to the governing body;

b) The governing body shall send an official dispatch enclosed with the program/project instrument to the Ministry of Planning and Investment for comments about the program/project (ODA, concessional loan, reciprocal capital) and the Ministry of Finance for comments about the domestic financial mechanism applied to the program/project, and other agencies for comments about relevant issues;

c) In consideration of such comments, the governing body shall request the project owner to complete the program/project instrument and compile an application for assessment of the program/project instrument;

d) The governing body shall send an official dispatch enclosed with the application to the Ministry of Planning and Investment;

dd) The Ministry of Planning and Investment shall seek comments from other agencies about relevant issues. By the deadline specified in Article 30 hereof, the Ministry of Planning and Investment shall organize the assessment of the program/project instrument by holding a convention or seeking comments from relevant agencies depending on the scale, nature, and content of the program/project;

e) The Ministry of Planning and Investment shall send an official dispatch enclosed with the assessment report to the Prime Minister for approval and issuance of the decision on investment in the program/project.

6. Procedures for drafting, assessing, issuing the decision on investment in the program/project within the competence of the head of the governing body:

a) After a decision on investment guidelines is issued, the project owner shall cooperate with the foreign sponsor in preparing the program/project instrument and submit it to the governing body for assessment;

b) The governing body shall seek comments of the Ministry of Planning and Investment about the capital sources and ability to balance them (ODA, concessional loan, reciprocal capital), comments of the Ministry of Finance about the domestic financial mechanism applied to the program/project, and comments of other agencies about relevant issues;

c) In consideration of such comments, the governing body shall request the project owner to complete the program/project instrument and compile an application for assessment of the program/project instrument;

d) The governing body shall organize the program/project instrument by holding a convention or seeking comments from relevant agencies depending on the scale, nature, and content of the program/project;

dd) According to the assessment report, the governing body shall approve the program/project instrument and issue the decision on investment in the program/project.

7. Procedures for drafting, assessing, issuing a decision on investment in a technical assistance project funded by ODA or concessional loan:

a) For technical assistance project having contents within the competence of the Prime Minister specified in Article 25 hereof or assistance in purchase of goods subject to permission by the Prime Minister according to applicable regulations of law: the governing body shall follow the procedures specified in Clause 5 of this Article, submit the project instrument to the Prime Minister for approval and issuance of a decision on investment;

b) The governing body shall not assess other technical assistance projects.  According to the decision on investment guidelines, the head of the governing body shall consider approving the project instrument and issue the decision on investment.

8. Procedures for drafting, assessing, issuing the decision on investment in a non-project:

a) For non-project having contents within the competence of the Prime Minister specified in Article 25 hereof or assistance in purchase of goods subject to permission by the Prime Minister according to applicable regulations of law: the governing body shall follow the procedures specified in Clause 5 of this Article, submit the non-project instrument to the Prime Minister for approval and issuance of a decision on investment;

b) The governing body shall not assess other non-projects.  According to the decision on investment guidelines, the head of the governing body shall consider approving the non-project instrument and issue the decision on investment.

9. For a program/project eligible for full on-lending or partial on-lending from state budget: its financial plan and project owner’s financial capacity shall be assessed in accordance with the Law on management of public debts, relevant legislative documents and instructions of the Ministry of Finance.

10. In the course of assessment, the assessing unit shall consider the procedures and progress of assessment of the foreign sponsor in order to maintain cooperation and harmony, review the contents agreed with the foreign sponsor, comments of the foreign sponsor or their representative.

11. the assessing unit is responsible for the result of assessment of the program/project instrument; other agencies participating in the assessment are responsible for the content of the program/project instrument related to their functions and duties as prescribed by law.

Article 27. Content of program/project instrument

1. The program/project instrument is prepared according to the decision on investment guidelines.

2. The specimens of program/project instruments provided in this Decree include: specimen of a non-construction project instrument (feasibility study report) in Appendix V; specimen of a construction project instrument (Feasibility study report) in Appendix VI; specimen of a technical assistance project instrument in Appendix VII; specimen of a program instrument in Appendix VIII; specimen of an joint program/project in Appendix IX; non-project instrument in Appendix X.

3. When preparing the program/project instrument according to the specimens in Appendix V, VI, VII, VIII, IX and X, the project owner must take into account the specimens provided by the foreign sponsor in order to ensure harmony between Vietnam’s and the foreign sponsor’s procedures.

Article 28. Application for assessment of program/project instrument

An application for assessment of a program/project instrument consists of:

1. A written request for assessment of the program/project instrument prepared by the governing body (if the program/project is within the competence of the Prime Minister) or project owner (if the program/project is within the competence of the head of the governing body).

2. A decision on investment guidelines.

3. The program/project instrument.

4. If the program/project is eligible for full on-lending or partial on-lending from state budget, the investor shall enclose documents proving the financial capacity, repayment plan, and other documents as instructed by the Ministry of Finance.

5. Written comments of the Ministry of Planning and Investment, the Ministry of Finance, and relevant agencies made during the preparation of the program/project instrument.

6. Documents related to the program/project in foreign languages must be enclosed with Vietnamese translations.

Article 29. Assessment content

1. For construction projects: The assessment content shall comply with applicable regulations of law on construction management.

2. For non-construction investment projects, assessment content consists of:

a) Assessment of the necessity of the project, including: suitability with the investment guidelines (context and necessity; targets of the project compared to demand for reform of policies, the regulatory institution, demand for development of human capacity; transfer of technologies, knowledge, managerial skills at national, sectoral, and local levels; finished products of the project; beneficiaries; budget allocation mechanism);

b) Assessment of elements affecting the project's feasibility: input elements, duration; human resources; risks and precautions;

c) Assessment of elements affecting the project's effectiveness and sustainability: ability to balance capital sources (ODA, concessional loan, reciprocal capital); effectiveness and impacts; ability of the nation, governing body, and project owner to maintain and take advantage of the project’s achievements;

d) General assessment of the project instrument in comparison with the decision on investment guidelines and relevant recommendations.

3. For programs, assessment content consists of:

a) The same contents specified in Clause 2 of this Article together with assessment of connectivity, mechanism for cooperation between sectors, localities and subjects participating in the program in order to maximize the effects and benefits of participants;

b) For construction projects within the framework of a program, the assessment content shall comply with Clause 1 of this Article;

c) For non-construction investment projects within the framework of a program, the assessment content shall comply with Clause 2 of this Article;

4. For joint programs/projects and component projects:

a) The content of assessment of a construction project shall comply with Clause 1 of this Article;

b) The content of assessment of a non-construction investment project shall comply with Clause 2 of this Article;

c) Apart from the contents specified in Point a and Point b of this Clause, the content of assessment of an joint program/project instrument shall include: analysis and assessment of the structure of the joint program/project and allocation of capital (ODA, concessional loan, reciprocal capital) among component projects, method of project management and decentralization of power between the management board of the joint program/project and management boards of component projects; the mechanism for cooperation, supervision, and assessment of the progress of the joint project and component projects.

5. For technical assistance project, assessment content consists of:

a) Assessment of the necessity and suitability with the investment guidelines for the project;

b) Assessment of the project's feasibility: input elements, duration; ability to balance capital sources (ODA, concessional loan, reciprocal capital); human resources; products of the project; risks and precautions;

c) General assessment of the project instrument in comparison with the decision on investment guidelines and relevant recommendations.

6. For non-project, assessment content consists of:

a) Assessment of the suitability of the non-project with the decision on investment guidelines;

b) Assessment of the elements affecting its feasibility: input elements, duration; ability to balance capital sources (ODA, concessional loan, reciprocal capital); human resources; products of the project; risks and precautions;

Article 30. Time limits for assessment and issuance of the decision on investment in the program/project

1. The time limit for assessing a program/project instrument begins from the day on which satisfactory documents are fully received:

a) For national target programs, projects of national importance, target programs: up to 90 days;

b) For Group A investment projects: up to 40 days;

c) For Group B investment projects: up to 30 days;

d) For Group B investment projects, technical assistance projects, and other programs and projects: up to 20 days;

2. Within 10 working days from the day on which the assessment report is received, the competent authority shall consider approving the program/project instrument and issuing the decision on investment in the program/project.

3. Within 5 working days from the day on which the decision on investment in the program/project is issued, the governing body shall notify the foreign sponsor and project owner of the decision, send it to the Ministry of Planning and Investment, the Ministry of Finance, and relevant agencies (original copies or notarized copies) enclosed with the approved program/project instrument bearing the seal of the governing body.

Chapter IV

CONCLUSION OF INTERNATIONAL TREATIES AND AGREEMENTS ON ODA AND CONCESSIONAL LOAN

Section 1: CONCLUSION OF INTERNATIONAL TREATIES ON ODA AND CONCESSIONAL LOAN

Article 31. Basis for proposing conclusion of international treaties on ODA and concessional loans

1. The basis for proposing the conclusion of framework treaties on ODA and concessional loans is the result of mobilization, strategy and policies on cooperation in development, the sector and program/project given priority to use ODA or concessional loan agreed between Vietnam’s competent authorities and the foreign sponsor.

2. The basis for proposing the conclusion of a specific international treaty on ODA or concessional loan is the approved instrument of the program/project and the decision on investment in the program/project.

Article 32. Authorities proposing conclusion of international treaties on ODA and concessional loans

1. The People’s Supreme Court, the People’s Supreme Procuracy, State Audit Agency, Ministries, ministerial agencies, Governmental agencies may propose to the Government conclusion of specific international treaties on ODA grant for their programs and projects other than those specified in Clause 3 of this Article.

2. The Ministry of Finance may propose to the Government conclusion of specific international treaties on ODA loans and concessional loans other than those specified in Clause 3 of this Article.

3. The State bank of Vietnam may propose to the Government conclusion of specific international treaties on ODA and concessional loans with World Bank, Asia Development Bank, International Monetary Fund, international financial institutions, and other international banks in which the State bank of Vietnam is a representative.

4. The Ministry of Planning and Investment may propose to the Government conclusion of the following international treaties on ODA and concessional loans:

a) Framework treaties on ODA and concessional loans;

b) Specific international treaties on ODA grant for programs and projects of authorities other than those specified in Clause 1 of this Article, except for ODA grant provided by World Bank, Asia Development Bank, International Monetary Fund, international financial institutions, and other international banks mentioned in Clause 3 of this Article.

Article 33. Procedures for concluding, revising, and extending international treaties on ODA and concessional loans

Procedures for concluding, revising, and extending international treaties on ODA and concessional loans shall comply with regulations of law on international treaties and public debt management.

Section 2: CONCLUSION OF AGREEMENTS ON ODA AND CONCESSIONAL LOAN

Article 34: Basis for proposing conclusion of agreements on ODA and concessional loans

The basis for proposing the conclusion of an agreement on ODA or concessional loan is an international treaty on ODA or concessional loan (if any), the approved instrument of the program/project and the decision on investment in the program/project.

Article 35: Authorities proposing conclusion of agreements on ODA and concessional loans

1. The People’s Supreme Court, the People’s Supreme Procuracy, State Audit Agency, Ministries, ministerial agencies, Governmental agencies may propose to the Prime Minister conclusion of agreements on ODA grant for their programs and projects for those specified in Clause 3 of this Article.

2. The Ministry of Finance may propose to the Prime Minister conclusion of agreements on ODA loans and concessional loans other than those specified in Clause 3 of this Article.

3. The State bank of Vietnam may propose to the Prime Minister conclusion of agreements on ODA and concessional loans with World Bank, Asia Development Bank, International Monetary Fund, international financial institutions, and other international banks in which the State bank of Vietnam is a representative.

4. The Ministry of Planning and Investment may propose to the Prime Minister conclusion of agreements on ODA grant for programs and projects of authorities other than those mentioned in Clause 1 of this Article, except for the cases in Clause 3 of this Article.

Article 36. Procedures for concluding, revising, and extending agreements on ODA and concessional loans

1. Procedures for concluding, revising, and extending agreements on ODA and concessional loans in the name of the State shall comply with regulations of law on international agreements and public debt management.

2. Procedures for concluding, revising, and extending agreements on ODA loans and concessional loans in the name of the Government shall comply with regulations of law on public debt management.

3. Procedures for concluding, revising, and extending agreements on ODA grant in the name of the Government:

a) The authority appointed by the Prime Minister to negotiate shall discuss and reach a consensus with the foreign party on the draft agreement;

b) After a consensus is reached, the negotiating authority shall produce the negotiation result and elicit comments from the Ministry of Foreign Affairs and the Ministry of Justice. The Ministry of Foreign Affairs and the Ministry of Justice shall respond in writing within five working days from the day on which the request for comments is received;

c) The negotiating authority shall discuss with the foreign party to complete the agreement and request the Prime Minister to consider the conclusion;

d) After the Prime Minister permits the conclusion, the head of the negotiating authority shall initiates the conclusion process or authorize another entity to conclude the agreement with the foreign party;

dd) If the content of the draft agreement is similar to the model agreement or framework agreement approved by the Prime Minister, the negotiating authority shall request the Prime Minister to decide the conclusion after negotiating and reaching a consensus with the foreign party. Regarding contents that differ from the model agreement or framework agreement approved by the Prime Minister, specific financial conditions, financial mechanism that are not mentioned in the model agreement or framework agreement, the negotiating authority shall request the Prime Minister consider approving them before concluding the agreement;

e) Regarding revisions to the agreement that change the commitment on ODA, the negotiating authority shall request the Prime Minister to decide. In other cases, the Prime Minister shall authorize the negotiating authority to negotiate and conclude the agreement with the foreign party.

Chapter V

 PROGRAM/PROJECT MANAGEMENT

Article 37. Methods for program/project management

Depending on the scale, nature, and conditions for execution of the program/project, capacity for program/project management, regulations on management of ODA and concessional loans of foreign sponsor, the investment-deciding person shall decide on any of the following methods for program/project management:

1. Establishing a specialized project management board, local project management boards to manage the programs and projects and their components within the same sector or administrative division.

2. Employing an operating project management board to manage a new program/project.

3. Establishing a project management board to manage a large-scale program/project, a program/project applying high technologies, related to national defense and security, a program/project with special capital sources or management model that need a project management board, a program/project that requires the establishment of a project management board under a international treaty or agreement on ODA or concessional loan.

4. Project owners shall employ capable person to manage and execute small-scale projects and projects participated by the community.

5. Hiring consultants on management of special program/projects. In this case, the project owner shall sign a consultancy contract with a consultant or advisory organization capable of program/project management as prescribed by effective regulations of law to perform all or some of program/project management tasks.

Article 38. The power to issue decision on establishment of project management board

1. Heads of governing bodies shall issue decisions on establishment of specialized project management boards and local project management boards mentioned in Clause 1 Article 37 hereof.

2. Project owners shall issue decisions on establishment of project management boards of the programs and projects mentioned in Clause 3 Article 37 hereof.

3. For self-management of projects: the project owners may select any of the project management methods specified in Clause 2, 4, 5 Article 37 hereof.

4. The decision on project management board establishment shall be enclosed with documents about the organizational structure, functions, tasks, and entitlements of the project management board and job description of some key positions of the board.

Article 39. Establishment of project management board

1. The person having the power to establish the project management board specified in Clause 1 and Clause 2 Article 38 of this Decree shall issue a decision on project management board establishment within 30 days after the decision on investment is issued.

2. Within 15 working days from the issuance date of the decision on project management board establishment, the project owner shall issue the Statute on organization and operation of the project management board. Where an international treaty or agreement on ODA or concessional loan for the program/project provides for organizational structure, duties and entitlements or the project management board, such provisions must be fully specified in the Statute on organization and operation of the project management board.

Article 40. Cases in which a project management board is not established

1. The investment-deciding person decides not to establish a project management board as prescribed in Clause 4 and Clause 5 Article 37 of this Decree.

2. The investment-deciding person decides not to establish a project management board in the following cases:

a) The total capital (including reciprocal capital) of a technical assistance program/project funded by ODA grant is under USD 200,000;

b) The total capital (including reciprocal capital) of an investment program/project funded by ODA grant is under USD 350,000;

c) Regional programs and projects, sectoral access programs, budget assistance, non-project.

d) Any program/project funded by ODA grant that requires that financial management be carried out by the foreign sponsor and suppliers be appointed by the foreign sponsor and does not require establishment of a project management board under a international treaty or agreement on ODA or concessional loan for the program/project.

Article 41. Responsibilities and entitlements of governing body to program/project management

1. Decide the organizational structure of the program/project management apparatus, including the Steering Committee (where necessary).

2. Formulate and approve the 5-year plan for execution of the program/project funded by ODA or concessional loan, which is part of the 5-year public investment plan.

3. Approve the overall plan for program/project execution; compile and approve annual plans for program/project execution.

4. Direct the bidding process in accordance with effective regulations of law, regulations on bidding of the international treaty or agreement on ODA or concessional loan.

5. Organize the supervision and assessment of the program/project progress; ensure punctuality, quality, and achievement of set targets in accordance with regulations of law on public investment and regulations on supervision and assessment of this Decree.

6. Bear the additional costs incurred because of human errors, wastefulness, corruption, and misconducts in management and use of ODA or concessional loan under its management in accordance with regulations of law on public investment.

7. Perform other duties and entitlements in accordance with law, specific international treaty or agreement on ODA or concessional loan.

Article 42. Responsibilities and entitlements of project owner to program/project management

1. Organize the program/project management and execution apparatus according to the decision of the governing body.

2. Take responsibility for effective management and use of ODA, concessional loan, reciprocal capital of the program/project from preparation, execution, until the program/project is put into operation.

3. Formulate and submit 5-year plans, overall plan, and annual plans for program/project execution to the governing body. If the program/project is eligible for full on-lending or partial on-lending from state budget and reciprocal capital is provided by the project owner, the project owner is responsible for making and approving the annual reciprocal capital plan.

4. Formulate quarterly operation plan serving the management, supervision, and assessment of the program/project.

5. Carry out bidding in accordance with effective regulations of law on bidding.

6. Negotiate, conclude, and supervise the execution of contracts, and resolves difficulties within their competence.

7. Cooperate with the local government in compensation for land clearance and relocation in accordance with law and the specific international treaty on ODA or concessional loan (for construction projects).

8. Supervise and assess the program/project in accordance with regulations of law on supervision and assessment of public investment and regulations of this Decree in order to ensure punctuality, quality, and achievement of set targets.

9. Direct the project management board to make the terminal report and financial statement of the program/project; audit and transfer of assets and documents of the program/project, and compliance with regulations on project shutdown of the international treaty or agreement on ODA or concessional loan.

10. Take responsibility for every loss, wastefulness, corruption, and misconduct that occurs during the execution of the program/project if they cause economic, social, environmental damage, affect the overall effectiveness of the program/project.

11. Regarding a program/project eligible for full on-lending or partial on-lending from state budget, the project owner shall fully and punctually repay the loan in accordance with on-lending terms agreed with the competent financial authority or bank.

12. Perform other duties and entitlements in accordance with law, specific international treaty or agreement on ODA or concessional loan.

13. Take responsibility before the law and the governing body for their rights and obligations prescribed by this Decree and relevant regulations of law.

Article 43. Responsibilities and entitlements of project management board to program/project management

1. Responsibilities and entitlements of project management board are decided by the project owner in the decision on project management board establishment.

The project owner may authorize the project management board to issue decisions or sign documents within the project owner’s competence in the process of program/project management. The authorization must be specified in the decision on project management board establishment or made into an authorization letter by the project owner.

2. The project management board may be assigned to manage multiple programs/projects as long as it is accepted by the project owner and ensure that each program/project is not interrupted and is managed in accordance with applicable regulations of law. If the project management board is not capable of some management and supervision tasks, it may hire consultants to perform such tasks as long as it is accepted by the project owner.

3. the project management board shall perform the tasks given by the project owner, including:

a) Formulate and submit overall plan and annual plans for program/project execution;

b) Prepare and carry out the program/project execution;

c) Carry out activities related to bidding, contract management, compensation for land clearance and relocation;

d) Disburse capital; carry out financial and asset management of the program/project;

dd) Monitor and assess the execution of the program/project;

e) Prepare the acceptance and transfer of the result of the program/project after completion; finish audit works, transfer assets of the program/project; make the terminal report and financial statement of the program/project; follow regulations on project shutdown in the international treaty or agreement on ODA or concessional loan;

g) Perform other tasks given by the project owner within the framework of the program/project.

4. Perform other duties and entitlements in accordance with law, specific international treaty or agreement on ODA or concessional loan.

5. Take responsibility before the law and the governing body for their rights and obligations prescribed by this Decree and relevant regulations of law.

Article 44. Hiring consultants on program/project management

1. Where the project owner hires a consultant on program/project management as prescribed in Clause 5 Article 37 hereof, the consultant must satisfy all requirements and their managerial capacity must be suitable for the scale or nature of the program/project. The responsibilities and entitlements of the program/project management consultant shall be performed in accordance with the consultancy contract. The program/project management consultant may hire other organizations or individuals to participate in the management as long as it is accepted by the project owner and conformable with the concluded consultancy contract.

2. The project owner shall select a capable program/project management consultant through bidding to assist the project owner in program/project management. When hiring a program/project management consultant, the project owner must employ all of the project owner’s specialized units or appoint an entity to inspect and supervise the execution of the consultancy contract, and may authorize the consultant to perform program/project management tasks under the project management contract.

3. The program/project management consultant shall perform the tasks, adhere to commitments under the contract with the project owner, and comply with relevant applicable regulations of law.

Article 45. 5-year program/project execution plan

1. The 5-year plan for execution of a program/project funded by ODA or concessional loan is part of the 5-year public investment plan of the governing body.

2. The basis for making a 5-year plan for execution of a program/project funded by ODA or concessional loan:

a) The programs and projects entering the 5-year period;

b) The programs and projects having decisions on investment guidelines issued by competent authorities intended to sign international treaties or agreements on ODA or concessional loan in the 5-year period;

c) Programs and projects having decision on investment guidelines that are not issued by competent authorities at the same time as the 5-year public investment plan shall be included in the 5-year public investment plan in accordance with regulations of law on revisions to the 5-year public investment plans.

3. The content, procedures for making and executing the 5-year plan for execution of the program/project funded by ODA or concessional loan shall comply with applicable regulations of law on the content, procedures for making and executing 5-year public investment plans.

Article 45. Making and approving overall plan for execution of program/project funded by ODA, concessional loan, reciprocal capital

1. The overall plan for execution of a program/project shall cover its entire duration, all components, items, activities, capital sources (ODA, concessional loan, reciprocal capital), and schedule.

2. Within 30 working days from the day on which the specific international treaty or agreement on ODA or concessional loan is signed, pursuant to the program/project instrument approved by a competent authority, the decision on investment in the program/project, and the specific international treaty or agreement on ODA or concessional loan, the project owner shall cooperate with the foreign sponsor in making or reviewing, updating the overall plan for program/project execution, then submit it to the governing body for approval.

3. Regarding a joint program/project, the overall plan shall include overall plans of component projects. The head of the governing body of the joint program/project shall approve its overall plan; the head of the governing body of each component project shall approve its overall plan.

4. Within 5 working days from the day on which the overall plan for program/project execution is approved, the governing body shall send the decision on approval enclosed with the overall plan to the Ministry of Planning and Investment, relevant agencies, and the foreign sponsor to facilitate their supervision, assessment, and cooperation in execution of the program/project.

Article 45. Making and approving plan for execution of program/project funded by ODA, concessional loan, reciprocal capital

1. On the basis of the 5-year plan and overall plan for execution of the program/project funded by ODA, concessional loan, reciprocal capital approved by the governing body, in consideration of the actual progress of disbursement and disbursement plan under the specific international treaty or agreement on ODA or concessional loan, the project owner shall formulate annual program/project execution plans and submit them to the governing body for approval. The annual program/project execution plan is part of the annual public investment plan of the governing body.

2. The content of the annual program/project execution plan shall contain detailed information about its components (divided into technical assistance component and construction component), main activities, items, capital sources including concessional loan, and schedule.

3. The annual plan approved by the governing body is the basis for the project owner to formulate quarterly plans serving the management, supervision, and assessment of the program/project execution.

4. Every year when formulating the socio-economic development plan and state budget estimate, the governing body shall include the annual program/project execution plan in its annual public investment plan and annual budget plan. On the basis of the governing body’s annual budget plan, the Ministry of Planning and Investment shall formulate the capital plan and cooperate with the Ministry of Finance in submitting the annual socio-economic development plan and annual budget plan to the National Assembly for approval.

5. Procedures for assigning tasks in the annual program/project execution plan shall comply with applicable regulations of law on assigning tasks in annual socio-economic development plan.

6. Within 5 working days from the day on which the annual program/project execution plan is approved, project owner shall send the approval decision enclosed with the plan to the governing body, the Ministry of Planning and Investment, relevant agencies, and the foreign sponsor to facilitate their supervision, assessment, and cooperation in execution of the program/project.

7. Regarding a program/project eligible for full on-lending from state budget:

Every year when formulating the socio-economic development plan and state budget estimate, the project owner shall formulate the program/project execution plan and submit it to the governing body; the governing body shall consider approving the plan and submit it to the Ministry of Planning and Investment and the Ministry of Finance for supervision. The governing body and the project owner shall provide sufficient reciprocal capital according to the progress of the program/project.

8. Regarding a program/project eligible for partial on-lending from state budget:

Depending on the nature of each component (full disbursement or on-lending), the project owner shall apply the procedures for making and submitting the program/project plan for each component in accordance with Clause 1, 2, 7 of this Article.

Article 48. Reciprocal capital for preparing and executing the program/project

1. The reciprocal capital must be sufficiently provided to prepare for and execute the program/project (including prior activities, if any). The sources, level, and mechanism of reciprocal capital must be suitable for the expenditures of the program/project agreed between the governing body and the foreign sponsor, and specified in the program/project instrument assessed and approved by a competent authority.

2. Reciprocal capital shall cover:

a) Operating costs of the project management board (salaries, bonuses, allowances, offices, working equipment, administrative costs);

b) Costs of design assessment, examination of overall budget estimate, completion of procedures for investment, construction, and other necessary administrative procedures;

c) Costs of contractor selection;

d) Costs of conventions, seminars, provision of training in management and execution of the program/project;

dd) Costs of receiving and imparting technologies, experience, skills;

e) Costs of propagation, advertising, and community activities;

g) Taxes, customs fees, insurance premiums according to applicable regulations;

h) Interest, deposit, guarantee, and relevant fees payable to the foreign party;

i) Costs of receiving and transporting equipment domestically (if any);

k) Costs of audit, making financial statements, and verification of financial statements;

l) Costs of compensation, land clearance, and relocation;

m) Costs of some basic activities of the program/project (survey, engineering design, construction of certain items, purchase of certain equipment);

n) Costs of supervision and assessment; quality assessment, acceptance, transfer, and making financial statement of the program/project;

o) Cost contingency and other reasonable expenses.

3. Regarding a program/project eligible for full disbursement from state budget: the governing body shall balance concessional loan in its annual budget estimate (capital shall be classified into capital for fundamental construction and administration corresponding to expenditures of the program/project); ensure that reciprocal capital is provided adequately, promptly, and suitably for the schedule in the program/project instrument approved by a competent authority and the decision on investment, conformable with regulations of law on state budget and the international treaty or agreement on ODA or concessional loan.

4. Regarding a program/project eligible for full on-lending or partial on-lending from state budget: the project owner shall provide reciprocal capital themselves or request the governing body to decide the amount of reciprocal capital before signing the on-lending contract.

5. Regarding the program/project eligible for disbursement from state budget that is not approved or concluded at the same time as the annual budget estimate, not provided reciprocal capital: the governing body shall request the Ministry of Planning and Investment and the Ministry of Finance in writing to handle the case or request a competent authority to include it in the annual budget estimate.

If the reciprocal capital plan is not made at the same time as the annual budget plan, the governing body shall provide it from the allocated capital. If the governing body is not able to provide reciprocal capital, it shall request the Ministry of Planning and Investment and the Ministry of Finance in writing to decide provision of capital in advance, which will be deducted from the next year’s plan.

6. If reciprocal capital has been allocated from the annual central government budget and is not completely used, the governing body may transfer it to another program/project after the capital-allocating authority decides according to applicable regulations.

7. Sources of reciprocal capital include: state budget, other funding sources of the State; capital of the project owner (for on-lending of ODA, concessional loan); ODA, concessional loan of foreign sponsor decided by the Prime Minister.

Article 49. Advance capital for program/project execution

In case of urgent need for capital for execution of some items of the program/project which is eligible for full disbursement from state budget while ODA or concessional loan is yet to be disbursed, the Ministry of Planning and Investment shall take charge and cooperate with the Ministry of Finance in requesting a competent authority to advance capital from state budget according to the explanation prepared by the governing body and written commitment of the foreign sponsor to reimburse the advanced amount. The advance capital shall be collected by State Treasuries when ODA or concessional loan for corresponding items is disbursed.

Article 50. Taxes and fees imposed upon programs and projects

Taxes and fees imposed upon programs and projects shall comply with applicable regulations of law on taxes and fees, and international treaties to which Socialist Republic of Vietnam is a signatory. Where there are discrepancies between Vietnam’s law and a signed international treaty on the same issue, the international treaty shall prevail. The Ministry of Finance shall provide guidelines for this issue.

Article 51. Compensation for land clearance and relocation

1. Compensation for land clearance and relocation in program/project execution shall comply with applicable regulations of law and international treaties on ODA and concessional loans to which Socialist Republic of Vietnam is a signatory. Where there are discrepancies between Vietnam’s law and a signed international treaty on the same issue, the international treaty shall prevail.

2. The application for approval for a compensation for land clearance and relocation plan of a program/project must include a written commitment of a competent authority on the schedule for completion of compensation for land clearance and relocation that is suitable for the progress of each contract of the program/project.

Article 52. Bidding

1. The contractor selection shall be carried out in accordance with the international treaty between Vietnam and the foreign sponsor; where the international treaty to which Socialist Republic of Vietnam is a signatory provides for contractor selection differently from the Law on Investment, such international treaty shall prevail. If the international treaty does not provide for application of contractor selection procedures, contractor selection shall be carried out in accordance with Law on Investment.

2. Procedures for submission, assessment and approval of bidding contents shall comply with Vietnam’s regulations of law on bidding. The content of assessment and approval shall comply with provisions of the international treaty under the rules prescribed in Clause 1 of this Article.

Article 53. Revisions to program/project contents and use of redundant capital after program/project execution

1. In case of revisions that lead to changes to the content of the decision on investment guidelines, the governing body shall follow instructions in Article 21 hereof.

After the revisions to the decision on investment guidelines are accepted by a competent authority, the governing body shall follow procedures for assessing and approving the program/project instrument and revising the decision on investment in the program/project.

2. In case of changes to the program/project content that lead to revisions or extension of the international treaty or agreement on ODA or concessional loan, the authority that proposes the conclusion of such international treaty or agreement shall follow the procedures specified in Article 33 and Article 36 hereof.

3. Redundant capital (ODA or concessional loan) after the program/project execution, including redundant capital after bidding, redundant capital due to changes in exchange rates, interest rates, unallocated reserved capital, and other redundant capital shall be used as follows:

a) If redundant capital is used within the framework of the program/project as determined n the decision on investment and conformably with the decision on approval for investment guidelines issued by a competent authority: after reaching a consensus with the Ministry of Planning and Investment and the Ministry of Finance, the governing body shall reach an agreement with the foreign sponsor on the use of redundant capital according to applicable regulations;

b) If redundant capital is used to execute a new program/project towards improving the effectiveness of the current program/project: the governing body shall send the Ministry of Planning and Investment and the Ministry of Finance an official dispatch enclosed with a report on proposal of investment guidelines for the new program/project for which redundant capital is used. The Ministry of Planning and Investment shall take charge and cooperate with relevant authorities in reaching an agreement with the foreign sponsor on how to use the redundant capital. The next steps related to submission, assessment, and issuance of the decision on investment guidelines are the same as those specified in Article 14 through 18 hereof.

Article 54. Construction management, acceptance, transfer, audit, making financial statement

1. Regarding a construction project, the assessment and approval of the construction design, total cost estimate, issuance of the license for construction, construction quality management, acceptance, transfer, warranty, construction insurance shall comply with effective regulations of law on construction management and international treaties on ODA or concessional loan to which Socialist Republic of Vietnam is a signatory.  Where there are discrepancies between Vietnam’s law and a signed international treaty on the same issue, the international treaty shall prevail.

2. Regarding a technical assistance program/project, after its completion, the governing body shall carry out the acceptance procedures and take necessary measures to maximize the effects and comply with effective regulations of law on financial and asset management of the program/project.

3. The audit, making of financial statement of the program/project shall be carried out in accordance with effective regulations of law and international treaties on ODA and concessional loans to which Socialist Republic of Vietnam is a signatory, or at the request of the foreign sponsor. Where there are discrepancies between Vietnam’s law and a signed international treaty on the same issue, the international treaty shall prevail.

Article 55. Settlement of contract disputes

Any contract dispute that arises in the process of program/project execution shall be resolved by the parties through negotiation. If a consensus cannot be reached between the parties, the dispute shall be settled through reconciliation, arbitration, or court proceedings in accordance with the contract or the international treaty/agreement on ODA/concessional loan for the program/project and relevant regulations of law.

Article 56. Supervision and assessment of program/project funded by ODA or concessional loan

1. The supervision of a program/project funded by ODA or concessional loan includes frequent monitoring, periodic inspections, and surprise inspection in the process of execution of the program/project funded by ODA or concessional loan by competent authorities in accordance with applicable regulations of law on supervision and assessment of public investment.

2. The assessment of a program/project funded by ODA or concessional loan includes periodic and irregular assessments in order to determine the progress of the program/project in accordance with applicable regulations of law on supervision and assessment of public investment. Assessment of a program/project funded by ODA or concessional loan consists of:

a) Initial assessment; midterm assessment; terminal assessment;

b) Irregular assessments;

c) Impact assessment;

3. Responsibility for supervision and assessment of program/project funded by ODA or concessional loan:

a) The project owners shall establish and operate their supervision and assessment system and provide necessary resources for such tasks;

b) The governing bodies shall establish and operate their supervision and assessment system and provide necessary resources for such tasks;

c) The Ministry of Planning and Investment shall assist the Prime Minister in supervising and assessing the management and use of ODA and concessional loans nationwide, join governing bodies, foreign sponsors, other agencies and local governments in carrying out impact assessment according to applicable regulations on supervision and assessment of public investment. The Ministry of Planning and Investment shall establish and operate the national supervision and assessment system and provide necessary resources for such tasks.

4. The supervision and assessment of programs and projects funded by ODA and concessional loans shall comply with effective regulations of law on supervision and assessment of public investment programs and projects, and specific international treaties on ODA and concessional loans to which Socialist Republic of Vietnam is a signatory. Where there are discrepancies between Vietnam’s law and a signed international treaty on the same issue, the international treaty shall prevail.

Chapter VI

STATE MANAGEMENT OF ODA AND CONCESSIONAL LOANS

Article 57. Content of state management of ODA and concessional loans

1. Promulgate and organize the implementation of legislative documents on management and use of ODA and concessional loans.

2. Formulate and implement schemes for attracting, managing, and using ODA and concessional loans in each stage to facilitate the implementation of 5-year socio-economic development plans; managerial solutions and policies, and effective use of such funding sources.

3. Provide information about management and use of ODA and concessional loans.

4. Supervise and assess the management and use of ODA and concessional loans according to applicable regulations of law on supervision and assessment of public investment, management and use of ODA and concessional loans.

5. Deal with violations; settle complaints and denunciations related to the management and use of ODA and concessional loans.

6. Reward Vietnamese entities and foreign sponsors that have considerable contributions to the provision, management, and use of ODA and concessional loans.

Article 58. Duties and entitlements of the Ministry of Planning and Investment

The Ministry of Planning and Investment shall assist the Government in unifying state management of ODA and concessional loans, and have the following duties and entitlements:

1. Take charge of raising, coordinating, managing, using ODA and concessional loans; developing strategies and policies on cooperation with foreign sponsors; developing plans for attraction, coordination, management, and use of ODA and concessional loans; analyze and assess the effectiveness of such funding sources.

2. Take charge of development, submission, or promulgation of legislative documents on management and use of ODA and concessional loans within its competence.

3. Prepare and organize the raising and coordination of ODA and concessional loans within its competence; aggregate and submit proposals of programs and projects funded by ODA loans and concessional loans to the Prime Minister; cooperate with foreign sponsors in formulating capital plans for the proposals of programs and projects funded by ODA loans and concessional loans after they are permitted by the Prime Minister.

4. Take charge and cooperate with the Ministry of Finance and the State bank (for capital provided by World Bank, Asia Development Bank, international financial institutions, and other international banks in which the State bank of Vietnam is a representative) in assessing sources of ODA, concessional loans, reciprocal capital, and the ability to balance them.

5. Aggregate investment guidelines for programs and projects funded by ODA and concessional loans within the competence of the Prime Minister, except for Group A projects, and submit them to the Prime Minister for consideration; send official requests for sponsorships for programs and projects to foreign sponsors after their decisions on investment guidelines are issued by competent agencies.

6. Take charge and cooperate with relevant agencies in proposing conclusion of framework treaties on ODA and concessional loans, specific international treaties on ODA grant to the Government as prescribed in Clause 4 Article 32 hereof; propose conclusion of agreements on ODA grant to the Prime Minister as prescribed in Clause 4 Article 35 hereof.

7. Take charge and cooperate with the Ministry of Finance in:

a) Formulating 5-year plans for execution of programs and projects funded by ODA and concessional loans, annual plans for execution of programs and projects funded by ODA and concessional loans nationwide; provide sufficient reciprocal capital from annual capital budget for preparation and execution of construction programs and projects eligible for capital allocation from central government budget;

b) Address the need for additional capital in annual budget estimates of programs and projects funded by ODA and concessional loans as prescribed in Clause 5 Article 48 and Article 49 hereof.

8. Cooperate with the Ministry of Finance and relevant agencies in determining domestic financial mechanism applied to the programs and projects as prescribed by law.

9. Supervise and assess programs and projects funded by ODA and concessional loans in accordance with regulations of law on supervision and assessment of public investment, management and use of ODA and concessional loans.

10. Resolve difficulties that arise during the process of execution of programs and projects; issues related to multiple Ministries or regulatory bodies in order to meet the schedule and speed up disbursement of ODA and concessional loans; request the Prime Minister to decide solutions for issues related to ODA and concessional loans within the competence of the Prime Minister.

Where necessary, establish an interdisciplinary working group to work directly with governing bodies, project owners, project management boards, and foreign sponsors to review, assess, and promptly address the issues within its competence.

11. Submit biannual and annual reports on mobilization, management, and use of ODA and concessional loans to the Prime Minister; propose solutions for the difficulties that arise during the process of execution of programs and projects.

12. Take measures to improve the effectiveness of management and use of ODA and concessional loans.

13. Compile and disseminate instructional documents about mobilization, preparation, assessment, management, supervision of programs and projects; assist in training in program/project management towards professionalism and sustainability.

Article 59. Duties and entitlements of the Ministry of Finance

1. Cooperate with the Ministry of Planning and Investment and relevant agencies in developing strategies and policies on cooperation with foreign sponsors; developing plans for attraction, coordination, management, and use of ODA and concessional loans; analyze and assess the effectiveness of such funding sources.

2. Provide instructions on preparation of contents related to conditions for use of capital, domestic financial mechanism, financial management of programs and projects; financial assessment of on-lent projects.

3. Cooperate with relevant agencies in providing instructions on registration of ODA loans and concessional loans, ensuring that public debts, government debts, and national foreign debts do not exceed the limits approved by the National Assembly.

4. Cooperate with relevant agencies in proposing conclusion of specific international treaties on ODA loans and concessional loans to the Government as prescribed in Clause 2 Article 32 hereof; propose conclusion of agreements on ODA loans and concessional loans to the Prime Minister as prescribed in Clause 2 Article 35 hereof.

5. Cooperate with the Ministry of Finance and the State bank (for capital provided by World Bank, Asia Development Bank, international financial institutions, and other international banks in which the State bank of Vietnam is a representative) in assessing sources of ODA, concessional loans, reciprocal capital, and the ability to balance them.

6. Represent the “borrowing party” in international treaties or agreements on ODA loans and concessional loans in the name of the State or the Government, except for the loans represented by the State bank of Vietnam, which is authorized to conclude such international treaties or agreements.

7. Carry out financial management of programs and projects:

a) Take charge and cooperate with relevant agencies in providing instructions on financial management of programs and projects;

b) Take charge and cooperate with the Ministry of Planning and Investment and relevant agencies in determining domestic financial mechanism applied to the programs and projects as prescribed by law.

c) Establish specific procedures for disbursement and management of disbursed capital of programs and projects in accordance with effective regulations of law and the international treaties and agreements on ODA and concessional loans with foreign sponsors;

d) Provide instructions on implementation of policies on taxes and fees applied to the programs and projects; resolves the difficulties related to taxes and fees;

dd) Provide capital from state budget and other funding sources to repay ODA loans and concessional loans when they are due;

e) Cooperate with the State bank of Vietnam in compiling and announcing the list of commercial banks qualified for processing ODA and concessional loan transactions;

g) Monitor, inspect financial management in the use of ODA and concessional loans;

h) Periodically (every six month, every year) collect data and submit reports about disbursement and repayment of ODA and concessional loans to the Prime Minister and relevant agencies;

i) Cooperate with the Ministry of Planning and Investment in formulating 5-year plans for execution of programs and projects funded by ODA and concessional loans, annual plans for execution of programs and projects funded by ODA and concessional loans nationwide; process the demand for additional capital in the annual budget estimates of the programs and projects as prescribed in Clause 5 Article 48 and Article 49 of this Decree;

k) Take charge and cooperate with the Ministry of Planning and Investment in providing sufficient reciprocal capital from administration funding sources for preparation and execution of the programs and projects eligible for capital allocation from central government budget;

l) Provide on-lending loans for the programs and projects eligible for on-lending from state budget and claim their repayment.

Article 60. Duties and entitlements of the State bank of Vietnam

1. Cooperate with the Ministry of Planning and Investment and relevant agencies in developing strategies and policies on cooperation with foreign sponsors; developing plans for attraction, coordination, management, and use of ODA and concessional loans; analyze and assess the effectiveness of such funding sources.

2. Cooperate with the Ministry of Planning and Investment and the Ministry of Finance in assessing sources of ODA, concessional loans, reciprocal capital, and the ability to balance them (for capital provided by World Bank, Asia Development Bank, international financial institutions, and other international banks in which the State bank of Vietnam is a representative).

3. Cooperate with relevant agencies in proposing conclusion of specific international treaties on ODA and concessional loans to the Government as prescribed in Clause 3 Article 32 hereof; propose conclusion of agreements on ODA and concessional loans to the Prime Minister as prescribed in Clause 3 Article 35 hereof.

4. Represent the “borrowing party" in the international treaties and agreements on ODA loans and concessional loans with World Bank, Asia Development Bank, International Monetary Fund, international financial institutions, and other international banks in which the State bank of Vietnam is a representative, and concludes such international and treaties in the name of the State or the Government.

5. Transfer every document and information related to a program/project to the Ministry of Finance after a specific international treaty or agreement on ODA or concessional loan comes into force, except for agreements with IMF.

6. Take charge and cooperate with the Ministry of Finance in compiling and announcing the list of commercial banks qualified for processing ODA and concessional loan transactions, which is the basis for negotiating authorities to selects banks for the programs and projects.

7. h) Periodically (every six month, every year) collect data and submit reports about disbursement and repayment via the accounts of the programs and projects opened at various banks to the Ministry of Finance, the Ministry of Planning and Investment and relevant agencies;

Article 61. Duties and entitlements of the Ministry of Justice

1. Examine the draft international treaties and agreements on ODA and concessional loans as prescribed by law.

2. Participate in negotiation and development of draft international treaties and agreements on ODA and concessional loans.

3. Make comments about reports on proposal of investment guidelines for judicial cooperation programs/projects.

4. Examine instruments of judicial cooperation programs/projects within the competence of the Prime Minister as prescribed by regulations of law on management of international judicial cooperation.

5. Make comments about legal issues related to draft relocation policy framework before it is submitted to the Prime Minister for approval.

6. Offer legal comments about international treaties and agreements on ODA and concessional loans as prescribed by law.

Article 62. Duties and entitlements of the Ministry of Foreign Affairs

1. Cooperate with relevant agencies, based on general diplomatic policies, in developing and implementing policies on raising ODA and concessional loans, cooperation policies; participate in raising ODA and concessional loans.

2. Take charge and cooperate with the Ministry of Planning and Investment and relevant agencies in directing diplomatic missions of Vietnam in other countries or at international organizations to raise ODA and concessional loans in accordance with effective policies and plans for attraction, coordination, management, and use of ODA and concessional loans.

3. Participate in negotiation and make comments about international treaties and agreements on ODA and concessional loans; inspect proposals of conclusion of international treaties and agreement on ODA and concessional loans.

4. Follow diplomatic formalities for concluding and implementing international treaties and agreements on ODA and concessional loans; archive and announce international treaties and agreements on ODA and concessional loans.

5. Participate in assessment of the programs and projects at the request of competent authorities.

6. Monitor and inspect the adherence to procedures for concluding and implementing international treaties and agreements on ODA and concessional loans as prescribed by law.

Article 63. Duties and entitlements of Government Office

1. Assist the Prime Minister in performing regulatory tasks and unifying state management of ODA and concessional loans.

2. Make comments about the programs and projects during their preparation at the request of their governing bodies or project owners; carry out inspections and propose policies or methods for execution of the programs and projects before they are submitted to the Government or the Prime Minister for consideration.

3. Assist the Government and the Prime Minister in inspecting and expediting the implementation of this Decree.

Article 64. Duties and entitlements of other Ministries, ministerial agencies, and Governmental agencies

1. Cooperate with the Ministry of Planning and Investment and relevant agencies in developing strategies and plans for attraction, coordination, management, and use of ODA and concessional loans; develop policies on coordination and improvement of effectiveness of ODA and concessional loans under their management.

2. Prepare and submit reports on proposal of investment guidelines or pre-feasibility study report to competent authorities for approval according to Clause 4 Article 12 of this Decree.

3. Cooperate with the Ministry of Finance and the State bank of Vietnam in proposing conclusion of specific international treaties on provision of ODA and concessional loans for their programs and projects to the Government as prescribed in Clause 2 and Clause 3 Article 32 hereof and implement such international treaties in accordance with regulations of law on international treaties; cooperate with the Ministry of Finance and the State bank of Vietnam in proposing conclusion of agreements on provision of ODA and concessional loans for their programs and projects to the Prime Minister as prescribed in Clause 2 and Clause 3 Article 35 hereof and implement such agreements as prescribed by law.

4. Propose conclusion of specific international treaties on provision of ODA grant to the Government as prescribed in Clause 1 Article 32 hereof and implement such international treaties in accordance with regulations of law on international treaties; Propose conclusion of agreements on provision of ODA grant to the Prime Minister as prescribed in Clause 1 Article 35 hereof and implement such agreement as prescribed by law.

5. Perform state management tasks regarding ODA and concessional loans under their management as prescribed by law.

6. Ensure openness, transparency, accountability for effectiveness of ODA and concessional loans provided for the programs and projects under their management.

Article 65. Duties and entitlements of the People’s Committees of provinces

1. Cooperate with the Ministry of Planning and Investment, other Ministries and relevant agencies in developing strategies and plans for attraction, coordination, management, and use of ODA and concessional loans; develop policies on coordination and improvement of effectiveness of ODA and concessional loans within their provinces.

2. Prepare and submit reports on proposal of investment guidelines or pre-feasibility study report to competent authorities for approval according to Clause 4 Article 12 of this Decree.

3. Cooperate with the Ministry of Finance and the State bank of Vietnam in proposing conclusion of specific international treaties on provision of ODA and concessional loans for their programs and projects to the Government as prescribed in Clause 2 and Clause 3 Article 32 hereof, and implement such international treaties in accordance with regulations of law on international treaties; cooperate with the Ministry of Finance and the State bank of Vietnam in proposing conclusion of agreements on provision of ODA and concessional loans for their programs and projects to the Prime Minister as prescribed in Clause 2 and Clause 3 Article 35 of this Decree and implement such agreement as prescribed by law.

4. Cooperate with the Ministry of Planning and Investment in proposing conclusion of specific international treaties on provision of ODA grant to the Prime Minister as prescribed in Clause 4 Article 32 hereof and implement such international treaties in accordance with regulations of law on international treaties; Cooperate with the Ministry of Planning and Investment in proposing conclusion of agreements on provision of ODA grant to the Prime Minister as prescribed in Clause 4 Article 35 hereof and implement such agreements as prescribed by law.

5. Direct and organize land withdrawal, land clearance, and compensation tasks of programs and projects in their provinces in accordance with law and international treaties on ODA and concessional loans to which Socialist Republic of Vietnam is a signatory.

6. Perform state management tasks regarding ODA and concessional loans in their provinces as prescribed by law.

7. Ensure openness, transparency, accountability for effectiveness of ODA and concessional loans provided for the programs and projects under their management.

8. Provide capital for central government budget to repay foreign parties with regard to the programs and projects that require the central government budget to provide ODA in the form of on-lending loans for provincial government budgets

Chapter VII

IMPLEMENTATION

Article 66. Organization of implementation

1. The Ministry of Planning and Investment shall take charge and cooperate with relevant agencies in promulgating Circulars providing guidelines for the implementation of this Decree.

2. The Ministry of Finance shall issue documents providing guidelines for the implementation of this Decree in terms of financial management, tax and fee policies related to ODA and concessional loans.

Article 67. Transition

Programs and projects whose list of sponsors have been approved by competent authorities before the effective date of this Decree shall be carried on in accordance with the Government's Decree No. 38/2013/ND-CP dated April 23, 2013 on management and use of ODA and concessional loans.

Article 68. Effect

1. This Decree comes into force from May 02, 2016 and replaces the Government's Decree No. 38/2013/ND-CP dated April 23, 2013 on management and use of ODA and concessional loans.

2. Ministers, Heads of ministerial agencies, Heads of Governmental agencies, Presidents of the People’s Committees of provinces, relevant organizations and individuals are responsible for the implementation of this Decree./.

APPENDIX I

CALCULATION OF GRANT ELEMENT
(Enclosed with the Government's Decree No. 16/2016/ND-CP dated March 16, 2016)

Grant element means a percentage (%) of the nominal value of the loan which reflects the degree of concessionality of the ODA loans or concessional loan according to a collection of input elements as follows:

1. Interest rate: aggregated interest rate of nominal interest rate, costs and fees of the foreign sponsor.

2. Grace period

3. Repayment period

Formula for calculation of grant element:

GE = 100%.

Where:

GE: grant element (%)

r: annual interest rate (%)

a: number of installments in a year (decided by the lender)

d: discount ratio of each period: d = (1 + d’)1/a - 1(%)

d’: discount period of the whole year (agreed between the negotiating authority and the lender) (%)

G: grace period (year)

M: Repayment period (year).

APPENDIX II

SPECIMEN OF A PROPOSAL OF PROGRAM/PROJECT FUNDED BY ODA OR CONCESSIONAL LOAN

I. NAME OF THE PROGRAM/PROJECT

II. BASIS FOR PROPOSAL

- Importance and necessity of the program/project in terms of economics, society, environment, technology, etc.

- Efforts made to solve the raised issues.

- Intended foreign sponsor.

III. PROPOSAL CONTENTS

1. Targets and scope of the program/project.

Description of overall targets, specific targets, and scope of the program/project.

2. Expected primary effects of the program/project

Summary of expected primary effects of the program/project.

3. Expected total capital and duration of the program/project

- ODA, concessional loan (ODA grant, ODA loan, concessional loan) in original foreign currency, VND and USD.

- Expected date of completion of the pre-feasibility study report and report on proposal of investment guidelines.

4. Proposed domestic financial mechanism, preliminary analysis of the ability to provide resources and repay (for on-lent projects)

5. Impact assessment

Assessment of impacts on the mid-term investment program of the proposing authority.

APPENDIX IIIa

SPECIMEN OF A PROPOSAL OF INVESTMENT GUIDELINES FOR A NATIONAL TARGET PROGRAM OR TARGET PROGRAM FUNDED BY ODA OR CONCESSIONAL LOAN

Contents of the report on proposal of investment guidelines for a national target program or target program funded by ODA or concessional loan shall include the contents specified in Article 34 of the Law on Public Investment and contents about ODA and concessional loan, including:

I. PRIMARY INFORMATION

1. Name of the project.

2. The governing body, proposing unit, and project owner (intended): names, addresses, and other relevant information.

3. Intended foreign sponsor and co-sponsor (if any).

II. PRIMARY CONTENT OF THE PROPSOED PROGRAM

1. Summary of other completed and in progress programs and projects funded by various funding sources (if any) to assist in solving relevant issues.

2. The need for ODA or concessional loan.

3. Expected capital provided by foreign sponsors (ODA grant, ODA loan, concessional loan) in original foreign currency, VND and USD.

4. Intended reciprocal capital and funding sources: central government budget, local government budget, project owner’s capital, bank loans and other funding sources (in VND and USD).

5. Conditions for use of ODA or concessional loan imposed by the foreign sponsor: explanation for the contents specified in Clause 4 Article 6 of this Decree (in case of conditional ODA or concessional loan).

6. Proposal of and the basis for proposing domestic financial mechanism applied to the program (full disbursement, full on-lending, partial on-lending from state budget; terms and conditions for on-lending; repayment plan); method for provision of sponsorship or disbursement via state budget; method for on-lending from a commercial bank or state budget.

7. Direct and indirect beneficiaries of the program.

8. Proposed method program management.

9. Prior activities.

Proposed prior activities prescribed in Article 19 of this Decree under consensus with the foreign sponsor, including expected costs, duration, responsibilities of Vietnamese agencies and the foreign sponsor./.

APPENDIX IIIb

SPECIMEN OF A PRE-FEASIBILITY STUDY REPORT OF A PROJECT OF NATIONAL IMPORTANCE OR GROUP A PROJECT FUNDED BY ODA OR CONCESSIONAL LOAN

Contents of the pre-feasibility study report of a project of national importance or Group A project funded by ODA or concessional loan shall include the contents specified in Article 35 of the Law on Public Investment and contents about ODA and concessional loan, including:

I. PRIMARY INFORMATION

1. Name of the project.

2. The governing body, proposing unit, and project owner (intended): names, addresses, and other relevant information.

3. Intended foreign sponsor and co-sponsor (if any).

II. PRELIMINARY STUDY INTO THE PROJECT

1. Summary of other completed and in progress programs and projects funded by various funding sources (if any) to assist in solving relevant issues.

2. The need for ODA or concessional loan.

3. Expected capital provided by foreign sponsors (ODA grant, ODA loan, concessional loan) in original foreign currency, VND and USD.

4. Intended reciprocal capital and funding sources: central government budget, local government budget, project owner’s capital, bank loans and other funding sources (in VND and USD).

5. Conditions for use of ODA or concessional loan imposed by the foreign sponsor: explanation for the contents specified in Clause 4 Article 6 of this Decree (in case of conditional ODA or concessional loan).

6. Proposal of and the basis for proposing domestic financial mechanism applied to the project (full disbursement, full on-lending, partial on-lending from state budget; terms and conditions for on-lending; repayment plan); method for sponsorship or disbursement via state budget; method for on-lending from a commercial bank or state budget.

7. Direct and indirect beneficiaries of the project.

8. Proposed method project management.

9. Prior activities.

Proposed prior activities prescribed in Article 19 of this Decree under consensus with the foreign sponsor, including expected costs, duration, responsibilities of Vietnamese agencies and the foreign sponsor, and a mechanism for carrying out such activities./.

APPENDIX IIIc

SPECIMEN OF A REPORT ON PROPOSAL OF INVESTMENT GUIDELINES FOR A PROGRAM/PROJECT FUNDED BY ODA OR CONCESSIONAL LOAN

I. PRIMARY INFORMATION

1. Name of the project.

2. Names and addresses of the governing body, proposing unit, and project owner (intended).

3. Intended foreign sponsor and co-sponsor (if any).

II. PRELIMINARY STUDY INTO THE PROGRAM/PROJECT

1. Context and necessity

a) The necessity and role of the program/project in the development plan of the sector or province.

b) Summary of other completed and in progress programs and projects funded by various funding sources (if any) to assist in solving relevant issues.

c) The need for ODA or concessional loan.

2. Primary content of the program/project

a) Overall targets and specific targets of the program/project

Description of overall targets and specific targets of the program/project.

b) Summary of expected products and effects of the program/project.

c) Brief description of the primary content and activities of the program/project and its components (programs).

d) Expected capital provided by foreign sponsors (ODA grant, ODA loan, concessional loan) in original foreign currency, VND and USD.

dd) Intended reciprocal capital and funding sources: central government budget, local government budget, project owner’s capital (intended), bank loans and other lawful funding sources (in VND and USD).

e) Schedule.

g) Conditions for use of ODA or concessional loan imposed by the foreign sponsor: explanation for the contents specified in Clause 4 Article 6 of this Decree (in case of conditional ODA or concessional loan).

h) Proposal of and the basis for proposing domestic financial mechanism applied to the program/project (full disbursement, full on-lending, partial on-lending from state budget; terms and conditions for on-lending; repayment plan); method for sponsorship or disbursement via state budget; method for on-lending from a commercial bank or state budget.

i) Direct and indirect beneficiaries of the program/project.

k) Proposed method program/project management.

l) Preliminary assessment of the program/project in terms of suitability (with policies on the use of ODA and concessional loans of the Government, policies on priority in provision of foreign sponsors’ ODA and concessional loans); effectiveness (economic, social, environmental), impacts (public debts, economic, social, environmental impacts); feasibility and sustainability of the program/project.

m) Prior activities.

Proposed prior activities prescribed in Article 19 of this Decree under consensus with the foreign sponsor, including expected costs, duration, responsibilities of Vietnamese agencies and the foreign sponsor, and a mechanism for carrying out such activities./.

APPENDIX IV

SPECIMEN OF A REPORT ON PROPOSAL OF INVESTMENT GUIDELINES FOR NON-PROJECT

I. NAME OF NON-PROJECT

II. NAME OF FOREIGN SPONSOR AND CO-SPONSOR

III. NAMES AND ADDRESSES OF THE GOVERNING BODY AND PROPOSING UNIT

IV. DURATION OF THE NON-PROJECT

V. DEMANDS OF THE NON-PROJECT

Necessity and the need for sponsorship of the non-project.

VI. TARGETS AND CONTENTS OF THE NON-PROJECT

VII. TOTAL CAPITAL OF THE NON-PROJECT

1. ODA (in original currency, VND and USD).

2. Reciprocal capital and sources thereof (in VND and USD).

3. Conditions for use of ODA imposed by the foreign sponsor: explanation for the contents specified in Clause 4 Article 6 of this Decree (in case of conditional ODA).

VIII. PROPOSED DOMESTIC FINANCIAL MECHANISM APPLIED TO THE NON-PROJECT

Proposal of and the basis for proposing domestic financial mechanism applied to the non-project (full disbursement, full on-lending, partial on-lending from state budget; terms and conditions for on-lending; repayment plan); method for sponsorship or disbursement via state budget; method for on-lending from a commercial bank or state budget./.

APPENDIX V

SPECIMEN OF AN INSTRUMENT OF A NON-CONSTRUCTION INVESTMENT PROJECT FUNDED BY ODA OR CONCESSIONAL LOAN

Contents of the instrument (feasibility study report) of a non-construction investment project funded by ODA or concessional loan shall include the contents specified in Clause 2 Article 47 of the Law on Public Investment and contents about ODA and concessional loan, including:

I. BASIC INFORMATION ABOUT THE PROJECT

1. Name of the project.

2. Foreign sponsor and co-sponsor.

3. Names and addresses of the governing body and project owner.

II. CONTEXT AND NECESSITY OF THE PROJECT

1. Suitability with and contributions of the project to national socio-economic development strategies and plans, sectoral and local development plans.

2. Relation with other programs and projects serving assistance in solving relevant issues of the program/project.

3. necessity of the project (specify the issues to be solved within the framework of the project).

4. The need for ODA or concessional loan.

III. BASIS FOR SUGGESTION OF FOREIGN SPONSOR

Specify the suitability of the project with the foreign sponsor’s orientation and priorities; conditions for providing ODA or concessional loan, and Vietnam’s ability to meet such conditions.

IV. PROJECT CONTENT

1. Analyzing, determining targets, objectives, results of the project; selecting a reasonable scale; determining investment stages; selecting investment methods.

2. Analyzing natural, economic – technical conditions; selecting investment location.

3. Analyzing, selecting technological solutions and equipment.

4. Plan for organizing management and operation of the project.

5. Environmental impact assessment and environmental protection solution.

6. Overall plan for compensation, land clearance, and relocation.

7. Project execution and investment schedule;

8. Capital:

a) Total capital;

b) Capital structure: ODA, concessional loan (in original currency and USD); reciprocal capital (in VND and USD).

c) Capital raising plan which specify sources of reciprocal capital (central, local government budget), value of contribution in kind. Providers of reciprocal capital, participants, and beneficiaries of the project (if any).

9. Conditions for use of ODA or concessional loan imposed by the foreign sponsor: explanation for the contents specified in Clause 4 Article 6 of this Decree (in case of conditional ODA or concessional loan).

10. Domestic financial mechanism applied to the project:

a) Full disbursement, full on-lending, partial on-lending; terms and conditions for on-lending; repayment plan;

b) Method for sponsorship or disbursement via state budget; method for on-lending from a commercial bank or state budget;

c) Fulfillment of conditions for on-lending of the project owner according to the Law on Public debt management (for on-lent program/project); the basis for calculation of revenue, expenditures, feasibility of the project under the conditions of the foreign loan; repayment loan, collateral plan.

11. Determination of cost of operation, maintenance, and major repairs during the project’s operation.

12. Organization of project management, including determination of project owner, selection of project management method, relation and responsibilities of entities related to the project execution; project operation apparatus.

13. Analysis of investment effectiveness, including socio-economic impacts, impacts on national defense and security, and the ability to recoup capital (if any).

14. Prior activities (if any): according to Article 19 of this Decree on the basis of prior activities in the decision on investment guidelines.

V. PROJECT EXECUTION, SUPERVISION, AND ASSESSMENT PLAN

1. Plan for carrying out prior activities (if any).

2. Overall plan and detailed plan for the first year.

3. Project supervision and assessment plan./.

APPENDIX VI

SPECIMEN OF AN INSTRUMENT OF A CONSTRUCTION PROJECT FUNDED BY ODA OR CONCESSIONAL LOAN

Contents of the instrument (feasibility study report) of a construction project funded by ODA or concessional loan shall include the contents specified in Article 54 of the Law on Construction and contents about ODA and concessional loan, including:

I. BASIC INFORMATION ABOUT THE PROJECT

1. Name of the project.

2. Foreign sponsor and co-sponsor.

3. Names and addresses of the governing body and project owner.

II. CONTEXT AND NECESSITY OF THE PROJECT

1. Suitability with and contributions of the project to national socio-economic development strategies and plans, sectoral and local development plans.

2. Relation with other programs and projects serving assistance in solving relevant issues of the program/project.

3. Necessity of the project (specify the issues to be solved within the framework of the project).

4. The need for ODA or concessional loan.

III. BASIS FOR SUGGESTION OF FOREIGN SPONSOR

Specify the suitability of the project with the foreign sponsor’s orientation and priorities; conditions for providing ODA or concessional loan, and Vietnam’s ability to meet such conditions.

IV. CAPITAL AND CAPITAL RAISING

1. Capital structure: ODA, concessional loan (in original currency and USD), reciprocal capital (in VND and USD).

2. Capital raising plan which specifies the sources of reciprocal capital (central, local government budget), value of contribution in kind. Providers of reciprocal capital, participants, and beneficiaries of the project (if any).

3. Conditions for use of ODA or concessional loan imposed by the foreign sponsor: explanation for the contents specified in Clause 4 Article 6 of this Decree (in case of conditional ODA or concessional loan).

4. Domestic financial mechanism applied to the project:

a) Full disbursement, full on-lending, partial on-lending; terms and conditions for on-lending; repayment plan;

b) Method for provision of sponsorship or disbursement via state budget; method for on-lending from a commercial bank or state budget;

c) Fulfillment of conditions for on-lending of the project owner according to the Law on Public debt management (for on-lent program/project); the basis for calculation of revenue, expenditures, feasibility of the project under the conditions of the foreign loan; repayment loan, collateral plan.

V. PROJECT EXECUTION, SUPERVISION, AND ASSESSMENT PLAN

1. Plan for carrying out prior activities (if any).

2. Overall plan and detailed plan for the first year.

3. Project supervision and assessment plan.

VI. PRIOR ACTIVITIES (if any)

Prior activities shall comply with Article 19 of this Decree on the basis of prior activities in the decision on investment guidelines./.

APPENDIX VII

SPECIMEN OF AN INSTRUMENT OF A TECHNICAL ASSISTANCE PROJECT FUNDED BY ODA OR CONCESSIONAL LOAN

I. BASIC INFORMATION ABOUT THE PROJECT

1. Name of the project.

2. Foreign sponsor and co-sponsor.

3. Names and addresses of the governing body and project owner.

4. Intended commencement time.

5. Project location.

II. CONTEXT AND NECESSITY OF THE PROJECT

1. Suitability with and contributions of the project to national socio-economic development strategies and plans, sectoral and local development plans.

2. Relation with other programs and projects serving assistance in solving relevant issues of the program/project.

3. Necessity of the project (specify the issues to be solved within the framework of the project).

4. The need for ODA or concessional loan.

III. BASIS FOR SUGGESTION OF FOREIGN SPONSOR

Specify the suitability of the project with the foreign sponsor’s orientation and priorities; conditions for providing ODA or concessional loan, and Vietnam’s ability to meet such conditions.

IV. TARGETS OF THE PROJECT

Overall and specific targets of the project.

V. PROJECT DESCRIPTION

Components, activities, and results of technical assistance; assessment of practicality of technical assistance.

VI. BENEFICIARIES

Direct and indirect beneficiaries of the project.

VII. PROJECT EXECUTION, SUPERVISION, AND ASSESSMENT PLAN

1. Plan for carrying out prior activities (if any).

2. Overall plan and detailed plan for the first year.

3. Project supervision and assessment plan.

VIII. ORGANIZATION OF PROJECT MANAGEMENT

Method for project management; mechanism for cooperation between the participants in the project execution and project management; capacity for project execution and project management of the project owner.

IX. TOTAL CAPITAL

1. ODA and concessional loan (in original currency and USD).

2. Reciprocal capital (in VND and USD). Specify the sources of reciprocal capital (central, local government budget), value of contribution in kind. Providers of reciprocal capital, participants, and beneficiaries of the project (if any).

X. CONDITIONS FOR USE OF ODA OR CONCESSIONAL LOAN IMPOSED BY THE FOREIGN SPONSOR

Explanation for the contents specified in Clause 4 Article 6 of this Decree (in case of conditional ODA or concessional loan).

XI. DOMESTIC FINANCIAL MECHANISM APPLIED TO THE PROJECT

1. Full disbursement, full on-lending, partial on-lending; terms and conditions for on-lending; repayment plan;

2. Method for provision of sponsorship or disbursement via state budget; method for on-lending from a commercial bank or state budget;

3. Fulfillment of conditions for on-lending of the project owner according to the Law on Public debt management (for on-lent program/project); the basis for calculation of revenue, expenditures, feasibility of the project under the conditions of the foreign loan; repayment loan, collateral plan.

XII. PRIOR ACTIVITIES

Prior activities shall comply with Article 19 of this Decree on the basis of prior activities in the decision on investment guidelines./.

APPENDIX VIII

SPECIMEN OF AN INSTRUMENT OF A PROGRAM FUNDED BY ODA OR CONCESSIONAL LOAN

I. BASIC INFORMATION ABOUT THE PROGRAM

1. Name of the program:

2. Foreign sponsor and co-sponsor:

3. Governing body:

a) Mailing address:

b) Tel/Fax:

4. Proposing unit:

a) Mailing address:

b) Tel/Fax:

5. Project owner:

a) Mailing address:

b) Tel/Fax:

6. Intended commencement time:

7. Program location:

II. CONTEXT AND NECESSITY OF THE PROGRAM

1. Suitability with and contributions of the program to national socio-economic development strategies and plans, sectoral and local development plans.

2. Relation with other programs and projects serving assistance in solving relevant issues of the program.

3. Necessity of the program (specify the issues to be solved within the framework of the program).

III. BASIS FOR SUGGESTION OF FOREIGN SPONSOR

Specify the suitability of the program with the intended foreign sponsor’s and co-sponsor’s orientation and priorities; conditions for providing ODA or concessional loan (including framework policy, if any), and Vietnam’s ability to meet such conditions:

1. Suitability of the proposal of ODA or concessional loan for the foreign sponsor’s policies and priorities.

2. Analysis of reasons for selection of the foreign sponsor and the foreign sponsor’s advantages in terms of technologies, experience of management and counseling in the sponsored sector.

3. Conditions imposed by the foreign sponsor (if any) and the Vietnam’s ability to meet such conditions.

IV. TARGETS OF THE PROGRAM

Specify overall targets, specific targets, long-term and short-term targets of the program; components of component projects (if any).

V. BENEFICIARIES

Specify direct and indirect beneficiaries of the program.

VI. PROGRAM EXECUTION, SUPERVISION, AND ASSESSMENT PLAN

1. Plan for carrying out prior activities (if any).

2. Overall plan and detailed plan for the first year.

3. Program supervision and assessment plan.

VII. PRIMARY RESULTS OF THE PROGRAM

VIII. ORGANIZATION OF PROGRAM MANAGEMENT

Specify the method for program management; mechanism for cooperation between the participants in the project execution and program management; capacity for program execution and project management of the project owner, including financial capacity.

IX. TOTAL CAPITAL

1. ODA and concessional loan (in original currency and USD).

2. Reciprocal capital (in VND and USD). Specify the sources of reciprocal capital (central, local government budget), value of contribution in kind. Providers of reciprocal capital, participants, and beneficiaries of the project (if any).

X. CONDITIONS FOR USE OF ODA OR CONCESSIONAL LOAN IMPOSED BY THE FOREIGN SPONSOR

Explanation for the contents specified in Clause 4 Article 6 of this Decree (in case of conditional ODA or concessional loan).

XI. DOMESTIC FINANCIAL MECHANISM APPLIED TO THE PROGRAM

1. Full disbursement, full on-lending, partial on-lending; terms and conditions for on-lending; repayment plan;

2. Method for provision of sponsorship or disbursement via state budget; method for on-lending from a commercial bank or state budget;

3. Fulfillment of conditions for on-lending of the project owner according to the Law on Public debt management (for on-lent program/project); the basis for calculation of revenue, expenditures, feasibility of the project under the conditions of the foreign loan; repayment loan, collateral plan.

XIII. PRIOR ACTIVITIES

Prior activities shall comply with Article 19 of this Decree on the basis of prior activities in the decision on investment guidelines./.

APPENDIX IX

SPECIMEN OF AN INSTRUMENT OF A JOINT PROGRAM/PROJECT FUNDED BY ODA OR CONCESSIONAL LOAN

I. BASIC INFORMATION ABOUT THE JOINT PROGRAM/PROJECT

1. name of the joint program/project:

2. Foreign sponsor and co-sponsor:

3. Governing body proposing the joint program/project:

a) Mailing address:

b) Tel/Fax:

4. Governing bodies participating in the joint program/project:

a) Mailing address:

b) Tel/Fax:

5. Owner of the joint program/project:

a) Mailing address:

b) Tel/Fax:

6. Intended commencement time:

7. Location:

II. CONTEXT AND NECESSITY OF THE PROGRAM/PROJECT

1. Suitability with and contributions of the joint program/project to national socio-economic development strategies and plans, sectoral and local development plans.

2. Relation with other programs and projects serving assistance in solving relevant issues of the joint program/project.

3. Necessity of the program/project (specify the issues to be solved within the framework of the joint program/project).

III. BASIS FOR SUGGESTION OF FOREIGN SPONSOR

Specify the suitability of the joint program/project with the foreign sponsor’s orientation and priorities; conditions for providing ODA or concessional loan, and Vietnam’s ability to meet such conditions:

1. Suitability of the targets of the joint program/project with foreign sponsor’s policies and priorities.

2. Analysis of reasons for selection of the foreign sponsor and the foreign sponsor’s advantages in terms of technologies, experience of management and counseling in the sponsored sector.

3. Conditions imposed by the foreign sponsor (if any) and the Vietnam’s ability to meet such conditions.

IV. TARGETS OF THE PROGRAM/PROJECT

Specify overall targets, specific targets, long-term and short-term targets of the joint program/project and component projects.

1. Overall targets of the joint program/project.

2. Targets of component projects.

V. DESCRIPTION OF THE PROGRAM/PROJECT

Activities and expected results of the joint program/project and its component projects. relation between component projects and corresponding resources.

VI. BENEFICIARIES

Specify direct and indirect beneficiaries of the joint program/project and component project.

VII. SOLUTION FOR PROGRAM/PROJECT EXECUTION

1. Overall plan for land clearance, relocation, and assistance in infrastructure construction (if any).

2. Architectural designing plan for urban constructions and other constructions in demand (if any).

3. Plan for operation of the joint program/project and exploitation of its results.

VIII. PROGRAM/PROJECT EXECUTION, SUPERVISION, AND ASSESSMENT PLAN

1. Plan for carrying out prior activities (if any).

2. Overall plan and detailed plan for the first year.

3. Program supervision and assessment plan.

IX. PROGRAM/PROJECT IMPACT ASSESSMENT

1. Economic and social effects; environmental impact assessment, risks, and sustainability of the joint program/project after its completion.

2. Mechanism for monitoring and assessing the impacts of the joint program/project.

X. ORGANIZATION OF PROGRAM/PROJECT MANAGEMENT

Specify the method for program/project management; mechanism for cooperation between the participants in the project execution and joint program/project management; capacity for joint program/project execution and project management of the governing body and the joint program/project owner, the Steering Committee (if any), governing bodies and owners of component projects, including their financial capacity.

XI. TOTAL CAPITAL

1. ODA, concessional loan (in original currency, VND and USD).

2. Reciprocal capital (in VND and USD). Specify the sources of reciprocal capital (central, local government budget), value of contribution in kind. Providers of reciprocal capital, participants, and beneficiaries of the project (if any).

XII. CONDITIONS FOR USE OF ODA OR CONCESSIONAL LOAN IMPOSED BY THE FOREIGN SPONSOR

Explanation for the contents specified in Clause 4 Article 6 of this Decree (in case of conditional ODA or concessional loan).

XIII. DOMESTIC FINANCIAL MECHANISM APPLIED TO THE PROGRAM/PROJECT

1. Full disbursement, full on-lending, partial on-lending; terms and conditions for on-lending; repayment plan;

2. Method for provision of sponsorship or disbursement via state budget; method for on-lending from a commercial bank or state budget;

3. Fulfillment of conditions for on-lending of the project owner according to the Law on Public debt management (for on-lent program/project); the basis for calculation of revenue, expenditures, feasibility of the project under the conditions of the foreign loan; repayment loan, collateral plan.

XIV. PRIOR ACTIVITIES (if any)

Prior activities shall comply with Article 19 of this Decree on the basis of prior activities in the decision on investment guidelines./.

APPENDIX X

SPECIMEN OF A NON-PROJECT INSTRUMENT

I. NAME OF THE NON-PROJECT

II. FOREIGN SPONSOR AND CO-SPONSOR

III. NAMES AND ADDRESSES OF THE GOVERNING BODY AND PROPOSING UNIT

IV. DURATION OF THE NON-PROJECT

V. DEMANDS OF THE NON-PROJECT

1. Necessity and the need for sponsorship of the non-project.

2. The basis for suggestion of the foreign sponsor.

VI. TARGETS AND CONTENTS OF THE NON-PROJECT

Specify the overall and specific targets of the non-project.

VII. ORGANIZATION OF NON-PROJECT MANAGEMENT

Specify the mechanism for cooperation between the participants in the non-project execution and management; capacity for non-project execution and management of the project owner.

VIII. TOTAL CAPITAL OF THE NON-PROJECT

1. ODA, concessional loan (in original currency, VND and USD).

2. Reciprocal capital and sources thereof (in VND and converted into USD).

IX. CONDITIONS FOR USE OF ODA GRANT IMPOSED BY THE FOREIGN SPONSOR

Explanation for the contents specified in Clause 4 Article 6 of this Decree (in case of conditional ODA grant).

X. DOMESTIC FINANCIAL MECHANISM APPLIED TO THE NON-PROJECT

1. Full disbursement, full on-lending, partial on-lending; terms and conditions for on-lending; repayment plan;

2. Method for provision of sponsorship or disbursement via state budget; method for on-lending from a commercial bank or state budget;

3. Fulfillment of conditions for on-lending prescribed by the Law on Public debt management./.