THE GOVERNMENT

DECREES:

Article 1.- To issue together with this Decree the Regulation on the management and use of official development aid (hereinafter abbreviated to ODA).

Article 2.- This Decree takes effect 15 days after its signing and replaces the Government�s Decree No. 87/CP of August 5, 1997, issuing the Regulation on the management and use of official development aid.

Article 3.- Within three months after this Decree takes effect, all issues related to the ODA attraction, management and use as well as the implementation of ODA programs and projects prior to the effective date of this Decree must be adjusted to be compliant with the provisions of this Decree.

Article 4.- The Minister of Planning and Investment, the Minister of Finance, the Minister for Foreign Affairs, the Governor of the State Bank of Vietnam and the heads of the concerned ministries, branches and organizations shall have to guide and inspect the implementation of this Decree.

Article 5.- The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People�s Committees of the provinces and centrally-run cities and the heads of the concerned organizations shall have to implement this Decree.

On behalf of the Government
Prime Minister
PHAN VAN KHAI

Article 1.- Scope of regulation

1. This Regulation regulates the attraction, management and use of official development aid.

Official development aid (hereinafter abbreviated to ODA) in this Regulation is construed as the development cooperation between the State or the Government of the Socialist Republic of Vietnam and the donors which include:

a/ Foreign governments;

b/ Inter-governmental or inter-state organizations.

2. Forms of ODA provision include:

a/ Non-refundable ODA;

b/ Concessional ODA loans with the non-refundable component (also called "assistance component") accounting for at least 25 per cent of the loan�s value.

3. Modes of ODA provision include:

a/ Support for the balance of payment;

b/ Support for programs;

c/ Support for projects.

Article 2.- Basic principles

1. ODA constitutes an important source of the State budget and is used to support the attainment of priority socio-economic development objectives.

2. The Government performs the uniform State management over ODA on the basis of responsibility assignment and enhancement and ensures a close coordination among the levels, branch-managing agencies and localities.

3. The process of attracting, managing and using ODA must satisfy the following requirements:

a/ It ensures the managing and directing role of the Government, brings into the fullest play the sense of initiative and responsibility of the managing agencies as well as the implementing agencies and units;

b/ It ensures integrity, uniformity and synchronism in the ODA management work;

c/ It ensures the wide participation of the concerned parties, including beneficiaries;

d/ It ensures explicitness and transparency in the concerned parties� powers and responsibilities;

e/ It ensures the harmony between Vietnam�s and the donors� procedures.

4. The ODA attracting, managing and using process must comply with the State Budget Law, the Regulation on the Management and Use of Official Development Aid, the Regulation on the Management of the Borrowing and Repayment of Foreign Debts and other current management regimes of the State. Where an international agreement on ODA signed between the State or the Government and a donor contains different provisions, the provisions of such international agreement shall apply.

Article 3.- Priority domains for ODA use

1. The non-refundable ODA capital shall be used with priority given to programs and projects in the following domains:

a/ Hunger elimination and poverty alleviation, first of all in rural, remote and deep-lying areas;

b/ Health, population and development;

c/ Education and development of human resources;

d/ Social issues (job creation, supply of water for daily-life use, prevention and fight of epidemics and diseases, prevention and combat of social evils);

e/ Environmental protection, protection and development of natural resources; scientific and technological research; enhancement of research and development capacity;

f/ Research in preparation for development programs and projects (planning, basic surveys);

g/ Administrative reform, justice, enhancement of capacity of central and local State management bodies, and institutional development;

h/ A number of other domains as decided by the Prime Minister.

2. ODA loan capital shall be used with priority given to programs and projects in the following domains:

a/ Hunger elimination and poverty alleviation, agriculture and rural development;

b/ Communications and transport, information and communication;

c/ Energy;

d/ Social infrastructures (public welfare facilities, health, education and training, water supply and drainage, environmental protection);

e/ Support for a number of production fields with a view to solving socio-economic problems;

f/ Support for the balance of payment;

g/ Other domains as decided by the Prime Minister.

In the course of implementation, the list and order of priority domains for ODA use shall be adjusted by the Government to suit each period of development.

Article 4.- Process of attracting, managing and using ODA

The process of attracting, managing and using ODA shall be effected according to the following major steps:

1. Formulation of lists of priority programs and projects for ODA mobilization and use.

2. ODA mobilization.

3. Negotiation and signing of framework international agreements on ODA.

4. Notification of framework international agreements on ODA.

5. Preparation of documents on ODA programs and projects.

6. Appraisal and approval of the contents of ODA programs and projects.

7. Negotiation, signing, ratification or approval of specific international agreements on ODA.

8. Implementation of ODA programs and projects.

9. Monitoring, evaluation, pre-acceptance test, final settlement and hand-over of the results of ODA programs and projects.

Article 5.- Interpretation of terms

In this Regulation a number of terms are construed as follows:

1. "Project" means a combination of inter-related activities which aim to achieve one or several given objectives and are carried out in a specified period of time on the basis of definite resources. Projects include investment projects and technical support projects.

2. "Investment projects" mean projects to create, expand or renovate certain material bases in order to achieve a quantitative growth or maintain, improve and raise the quality of products or services in a specified period of time.

3. "Technical support projects" mean projects focussing primarily on the supply of technical software factors, including projects to develop institutional capacity, develop human resources, transfer technologies or knowledge and experiences, and supply technical input factors to prepare and implement investment programs and projects.

4. "Program" means a combination of inter-related activities and/or projects, which may relate to different economic and technical branches, different geographical areas and different subjects, are implemented through the multidisciplinary approach over a relatively long period or through many stages, and resources for such implementation may be mobilized from different sources and by different modes.

5. "ODA program or project" means a program or project using official development aid (ODA).

6. "International agreements on ODA" mean written agreements signed between the representative of the Vietnamese State or Government and the representative of the donor on ODA-related matters, including treaties, protocols, programs� and projects� documents and documents of equivalent value exchanged between the concerned parties.

7. "Framework international agreements on ODA" mean principled international agreements on ODA, containing contents pertaining to the strategy, policies, cooperation framework, priority orientations in the ODA provision and use; lists of domains, ODA programs or projects; ODA framework conditions and commitments for projects and programs for one or many years; principles regarding the procedures and plans for the management and implementation of programs and projects.

8. "Specific international agreements on ODA" mean international agreements on ODA, which demonstrate the commitments regarding the contents of the specific programs and projects to be financed (objectives, activities, outcomes to be achieved, implementation plans, financing conditions, capital, capital structure, obligations, powers and responsibilities of each party, principles and standards to be complied with in the program and project management and implementation, and disbursement conditions as well as conditions on repayment of loans for programs and projects).

9. "The provincial-level People�s Committees" mean the People�s Committees of the provinces and centrally-run cities.

10. "The managing agencies" mean ministerial-level agencies, branches and People�s Committees of the provinces and centrally-run cities, having ODA programs and projects.

11. " Project owners" mean organizations assigned the responsibility to directly manage and use the ODA capital source and the reciprocal capital source for implementing programs and projects according to the approved contents.

12. "Reciprocal capital" means the value of domestically mobilized resources (in cash and kind�) for preparing and implementing ODA programs and projects according to their requirements. Depending on each program or project, reciprocal capital may include all or some of the following components:

a/ Capital for preparing ODA programs and projects:

- Expenses for research, investigation, surveys, gathering, analysis and synthesis of initial data;

- Expenses for compiling programs� and projects� documents;

- Expenses for appraisal, supplement and finalization of programs� and projects� documents till they are approved by competent authorities;

- Expenses for the program or project-preparing committees (including necessary expenses for training and raising the capabilities of the contingent of officials to work as the core in the program or project management boards in the subsequent stages).

b/ Capital for the implementation preparation and implementation of ODA programs and projects:

- Expenses for the program and project management boards (salaries, bonuses, allowances, working offices and facilities, administrative expenses, monitoring and evaluation of projects, quality supervision, pre-acceptance test, hand-over and final settlement);

- Expenses for design evaluation, total cost estimate approval, completion of investment, construction and other necessary administrative procedures;

- Expenses for bidding organization;

- Expenses for meetings, seminars, training in the program and project management and implementation;

- Expenses for reception and dissemination of international technologies, experiences and skills;

- Expenses for propagation and advertisement of programs, projects and for the community�s participatory activities;

- Expenses for domestic services and means supplied for foreign contractors to work under contracts in Vietnam;

- Expenses for hiring organizations and individuals to appraise, monitor and evaluate programs and projects;

- Expenses for payment of indirect taxes, customs fees, insurance premiums according to current regulations;

- Payable interests, deposits, commitment fees and other related fees in the construction period;

- Expenses for reception of equipment and domestic transportation;

- Auditing expenses;

- Expenses for carrying out a number of basic activities of the programs and projects (survey, technical and construction design; compensation and ground clearance and resettlement, construction of several construction items, purchase of some equipment);

- Reserve and other reasonable expenses.

Chapter II

MOBILIZATION, NEGOTIATION AND SIGNING OF FRAMEWORK INTERNATIONAL AGREEMENTS ON ODA

Article 6.- Principles for ODA mobilization

ODA mobilization shall be carried out on the basis of the socio-economic development strategy, the strategy for borrowing and repayment of foreign debts, the State�s public investment programs, socio-economic plannings and plans, national programs, development plannings and plans of the localities or branches, the needs for reception of capital, technologies, managerial knowledge and experiences, capabilities of receiving and using ODA in each period.

Article 7.- Lists of priority programs and projects for ODA mobilization

1. Before the fourth quarter of each year, the managing agencies shall notify the Ministry of Planning and Investment of the lists of priority programs and projects for ODA mobilization, attached with the outlines of these programs and projects, which clearly state the necessity and compatibility with the plannings, the objectives and expected outcomes, major activities, expected implementation duration, expected amounts of ODA capital and reciprocal capital, expected domestic financial mechanism applicable to the ODA capital use (budgetary grants, re-lending), forecasts on the economic, social and environmental impacts of these programs and projects.

2. The Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Ministry of Finance, the Ministry for Foreign Affairs, the Government Office, the Ministry of Justice (regarding the domain of law cooperation with foreign countries), the Government Commission for Organization and Personnel (regarding the domain of administrative reform), the ministries and the branch-managing agencies in considering and synthesizing the managing agencies� lists of priority programs and projects for ODA mobilization into a list of priority programs and projects for incorporation in the Government�s report for ODA mobilization at the annual conferences of Donors� Consulting Group (CG).

3. This list shall be reviewed, added and adjusted annually by the Ministry of Planning and Investment on the basis of the implementation situation as well as newly-arising ODA demands.

Article 8.- Coordination in ODA mobilization

1. The Ministry of Planning and Investment shall be the Government�s key agency in making preparations for the CG Conferences and international forums on ODA for Vietnam. The ministerial-level agencies and branches shall assume the prime responsibility for preparing and organizing ODA coordination meetings for their respective branches, with the coordination and co-chairing of the Ministry of Planning and Investment. The provincial-level People�s Committees shall assume the prime responsibility for organizing ODA mobilization meetings for their respective territories under the guidance of the Ministry of Planning and Investment.

2. The overseas Vietnamese diplomatic missions shall take initiative in mobilizing ODA under the guidance of the Ministry of Planning and Investment.

Article 9.- Negotiation and signing of framework international agreements on ODA

1. The Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Ministry of Finance, the Ministry for Foreign Affairs, the Government Office and the concerned functional agencies in making the lists of ODA programs and projects of the corresponding donors and submitting them to the Prime Minister for consideration and approval.

2. The Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Ministry of Finance, the Ministry for Foreign Affairs, the Government Office and the agencies in need of ODA in preparing the contents of, negotiating and signing with the donors framework international agreements on ODA.

3. In cases where a draft framework international agreement on ODA contains clauses at variance with the current law provisions, the Ministry of Planning and Investment shall have to solicit written opinions from the Ministry of Finance, the Ministry for Foreign Affairs, the Ministry of Justice and the ministerial-level agencies, then synthesize and submit them to the Prime Minister for consideration and decision.

4. The signing of framework international agreements on ODA shall comply with the provisions of the Ordinance on the Conclusion and Implementation of International Agreements.

5. After a framework international agreement on ODA is signed, the Ministry of Planning and Investment shall notify in writing the managing agency of the programs and/or projects which the donors have agreed to consider their financing in each period for proceeding with subsequent preparatory steps.

6. For ODA amounts provided by the donors for separate programs or projects not included in any plan and without requiring the signing of a framework international agreement on ODA, the Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Ministry of Finance, the Ministry for Foreign Affairs, the Government Office and the functional agencies in submitting to the Prime Minister for consideration and approval the direction and procedures for reception thereof.

Chapter III

PREPARATION, APPRAISAL AND APPROVAL OF THE CONTENTS OF ODA PROGRAMS AND PROJECTS

Article 10.- Requirement of compilation of documents of ODA programs and projects

All ODA programs and projects must have their documents compiled with the major contents specified in Chapter III of this Regulation, compliant with the regulations on investment and construction management, current laws and compatible with the donors� requirements and guidance.

Article 11.- Domestic financial mechanism applicable to the ODA use

1. The domestic financial mechanism applicable to the use of the ODA capital source for programs and projects shall take the following forms:

a/ Grants from the State budget;

b/ Loans re-lent from the State budget;

c/ Both grants and loans re-lent from the State.

2. The application of forms of domestic financial mechanism to each particular domain, ODA program or project shall comply with current regulations, based on the practical conditions of each ODA program or project and of the agency or locality that implements such program or project.

Article 12.- Capital for ODA program and project preparation

1. ODA programs and projects on the list already approved by the Prime Minister and agreed by the donors to consider their financing (according to the notices of the Ministry of Planning and Investment) shall serve as basis for planning the capital for ODA program and project preparation for each year and many years.

2. For ODA programs and projects funded with grants from the State budget, the managing agencies shall make plans on preparation capital for incorporation in the annual general budget plans of the branches or localities. The process of approval and distribution of capital for preparation of ODA programs and projects funded with grants shall comply with law provisions on the State budget.

Where programs or projects which are considered for financing do not fall within the annual budget planning period, the managing agencies shall have to send to the Ministry of Planning and Investment and the Ministry of Finance written proposals for consideration and decision on advancing capital from the reserve source of the central budget, which later shall be deducted from the budgetary plans on allocation of capital for preparation of these programs or projects in the subsequent fiscal year.

3. For ODA programs and projects funded with loans re-lent from the State�s budget or funded with both grants and re-lent loans, the project owners shall have to balance on their own and arrange capital for program and project preparation.

4. Where donors provide technical support for project preparation, finance the whole or part of the funding for ODA program and/or project preparation (including also the training in and raising of the program or project management capacities for the subsequent stages), the managing agencies shall have to incorporate such into the annual preparation capital plans and notify the Ministry of Planning and Investment and the Ministry of Finance thereof for synthesis and monitoring.

Article 13.- ODA program or project preparation committees

1. Within 15 working days as from the date of receiving the official notices from the Ministry of Planning and Investment on the list of ODA programs and projects already approved by the Prime Minister and agreed by the donors to consider their financing, the heads of the managing agencies shall issue decisions to set up the program or project preparation committees, appoint their chairmen and a number of key officials. Such a program or project preparation committee must be composed of some capable and qualified members who shall work as the core in the program or project management boards in the subsequent stages.

2. The ODA program or project preparation committee has the following tasks:

a/ Studying and firmly grasping the regulations of the Vietnamese State and the donors on the process of preparing and implementing the program or project;

b/ Getting to know clearly the objectives, requirements and conditions set for the program or project;

c/ Making a program or project preparation plan and submit it to the managing agency for approval;

d/ Clearly determining the requirements on personnel, training, funding and working facilities as well as relations to be dealt with in the process of preparing the program or project;

e/ Organizing the mobilization of resources suitable to the program or project preparation;

f/ Holding the key role in coordinating with domestic organizations and donors in the process of compiling the program or project documents;

g/ Drafting the regulations on its organization and operation and other necessary documents for the project management board;

h/ Participating in negotiating specific international agreements on ODA.

Article 14.- Major contents of ODA program or project preparation plans

An ODA program or project preparation plan shall contain the following principal contents:

1. The objectives and outcomes to be attained in the preparatory process, enclosed with a detailed outline and content requirements for the program or project documents.

2. The order of preparatory steps, major outcomes of each step, major activities to serve each outcome.

3. The assignment of implementation and organization responsibilities and clear identification of subjects to be involved in the preparatory process.

4. Disparities between Vietnam�s procedures and donor�s procedures, measures needed to harmonize such procedures.

5. The time table for completion of activities, outcomes of the preparatory process and the schedule for mobilization of relevant inputs.

Article 15.- Reports on pre-feasibility study of ODA-using investment programs and projects

Reports on pre-feasibility study of ODA-using investment programs and projects must be elaborated according to current regulations on the investment and construction management and added with the following contents, depending on the particularities of the ODA capital source:

1. The position and role of the program or project in the development planning of the branch or locality;

2. Reasons for use of ODA capital; donor�s strengths in terms of technology, managerial experiences and policy consultancy in the financed domain;

3. Assessment of binding conditions set by the donor for the ODA program or project.

Article 16.- Reports on feasibility study of ODA-using investment programs and projects

Reports on feasibility study of ODA-using investment programs and projects must be elaborated according to current regulations on the investment and construction management and added with the following contents, depending on the particularities of the ODA capital source:

1. Analysis of the program�s or project�s environmental impacts;

2. Analysis of the program�s or project�s financial and socio-economic efficiency, taking into account bindings set by the donor;

3. Sustainability of the program or project after completion (managerial and operating capabilities).

Article 17.- Principal contents of the documents of technical support ODA programs and projects

Documents of a technical support program or project must contain the following principal contents:

1. The background and necessity of the program or project within the framework of the long-term development planning and plans of the branch or locality.

2. The objectives and contents of activities, particularly the consultancy activities, specific input and output factors of each activity and the general quantitative and/or qualitative outcome of the whole program or project.

3. Obligations the Vietnamese side is committed to fulfill.

4. Total aid amount, plan on the use of the aid capital, way of distributing such capital to each activity according to given norms.

5. Reciprocal capital (in kind, cash) and its source.

6. Mode of organizing the program or project implementation.

7. Sustainability of the program or project after its completion.

Besides the above-said contents, documents of a technical support program or project may contain other ones on the basis of agreement reached with the donor.

Article 18.- Appraisal of ODA programs and projects

1. ODA programs and projects submitted to competent authorities for appraisal must be on the list of ODA programs and projects already approved by the Prime Minister and agreed by the donors on their financing.

2. Documents of ODA programs and projects as specified in Articles 15, 16 and 17 of this Regulation and other enclosed materials (including written adjustments and/or supplements thereto) must be appraised and approved by competent authorities to serve as basis for negotiation, signing and implementation of specific international agreements on ODA with the donors.

3. For ODA programs and projects subject to approval by the Prime Minister as prescribed in Clause 1, Article 20 of this Regulation, the Ministry of Planning and Investment shall assume the prime responsibility to organize the appraisal thereof.

4. For ODA programs and projects subject to approval by the heads of the managing agencies as prescribed in Clause 2, Article 20 of this Regulation, the authorities competent to approve them shall assign their attached functional agencies to assume the prime responsibility to organize the appraisal thereof.

5. Agencies assuming the prime responsibility for organizing appraisal may ask the specialized bodies at the central and local levels, independent consultancy organizations and consultants for their help in the appraisal of programs and projects.

6. In the course of appraisal, the agencies assuming the prime responsibility for organizing the appraisal shall have to consider the contents already agreed upon with the donors, the appraisal opinions of the donors or their representatives. Alike or divergent opinions of the concerned parties must be reflected in the appraisal reports.

7. The concerned agencies participating in the appraisal shall be held responsible before law for the contents of the ODA programs and projects, which are related to their respective competence.

8. An ODA program or project appraisal dossier consists of:

a/ The project owner�s written request for appraisal thereof.

b/ The written opinion of the head of the managing agency (for programs and projects subject to approval by the Prime Minister).

c/ The program�s or project�s document (for investment programs and projects, such document is the pre-feasibility or feasibility study report).

d/ All documents made by the concerned agencies in the process of preparing the program or project.

e/ Documents of agreement, memoranda of understanding with the donors or their representatives, reports prepared by the group of appraising specialists at the donor�s request (if any).

Each appraisal dossier shall be made in eight sets for programs and projects subject to approval by the Prime Minister, or five sets for those subject to approval by the heads of the managing agencies, of which at least one is the original set. All of them shall be sent to the agency assuming the prime responsibility for organizing the appraisal as defined in Clauses 2 and 3 of this Article. Documents in foreign languages must be accompanied with Vietnamese translations.

9. The agencies assuming the prime responsibility for organizing the appraisal shall sum up opinions of the concerned agencies, make appraisal reports and submit them to the authorities competent to approve the contents of the programs� or projects� documents. Such an appraisal report must clearly state the appraisal opinions on:

a/ Accuracy of data, justifications, calculations, conclusions and proposals stated in the appraised document;

b/ The program�s or project�s feasibility;

c/ Reasonability of the use of ODA capital for the program or project;

d/ Inadequacies and constraints, directions and measures to handle them, organizations responsible for handling them and the handling time limit;

e/ Commitments to mechanism and policy changes, disparities in the ODA program or project implementation procedures, requirements and prerequisites, conditions (if any) set by the donors for the ODA amount;

f/ Proposals to the agency assuming the prime responsibility for negotiating specific international agreements on ODA.

In case of necessity, the appraisal reports must be enclosed with the draft decisions to approve the programs� or projects� contents.

The agencies assuming the prime responsibility for organizing the appraisal and the agencies participating in the appraisal shall be accountable to competent authorities and law for their appraisal reports.

10. The process and time limit for appraisal of ODA-funded investment projects and programs subject to approval by the Prime Minister shall comply with current regulations on investment and construction management.

11. The process and time limit for appraisal of ODA-funded investment projects and programs subject to approval by the heads of the managing agencies shall be decided by the heads of the managing agencies.

Within 10 working days as from the date of completion of the appraisal and approval work, the managing agencies shall have to send to the Ministry of Planning and Investment and the Ministry of Finance the reports on the appraisal of the programs or projects and decisions on the approval thereof (originals), enclosed with the programs� or projects� documents, which are affixed with page-overlapping stamps.

Article 19.- Appraisal of technical support ODA programs and projects

1. Technical support ODA programs and projects submitted for appraisal and approval must be on the list of technical support ODA programs and projects already approved by the Prime Minister and agreed by the donors on their financing.

2. For technical support ODA programs and projects subject to approval by the Prime Minister as prescribed in Clause 1, Article 20 of this Regulation, the Ministry of Planning and Investment is the agency assuming the prime responsibility for organizing the appraisal thereof.

3. For technical support ODA programs and projects subject to approval by the heads of the managing agencies as specified in Clause 2, Article 20 of this Regulation, the authorities competent to approve them shall assign their attached functional agencies to assume the prime responsibility for organizing the appraisal thereof.

4. Documents of technical support ODA programs and projects, which are compiled in the names and with the responsibility of the managing agencies, must have contents compatible with the outlines of technical support ODA programs and projects, which are submitted together with the list of such ODA programs and projects to the Prime Minister for approval.

5. The Ministry of Planning and Investment shall guide the contents and procedures for appraisal of technical support ODA programs and projects subject to approval by the Prime Minister.

6. The managing agencies shall guide the contents and procedures for appraisal of technical support ODA programs and projects subject to their approval.

With 10 working days as from the date of completion of the appraisal and approval work, the managing agencies shall have to send to the Ministry of Planning and Investment and the Ministry of Finance the appraisal reports and decisions (the originals) to approve technical support ODA programs and projects, enclosed with the programs� and projects� documents already approved and affixed with page-overlapping stamps.

Article 20.- Competence to approve the contents of ODA programs and projects

1. The Prime Minister shall approve Group-A ODA programs and projects, including:

a/ ODA-using credit programs to support the balance of payment;

b/ National, branch-level or inter-regional ODA-using development programs and projects;

c/ ODA-using programs and projects with the objectives related to the State institution and policies, law, administrative reform, culture and information, security, defense (regardless of their capital size);

d/ ODA-using programs and projects having investment capital amounts according to current regulations on investment and construction management. The conversion of the donor countries� currencies into Vietnam dong shall be effected at the exchange rate prescribed by the State Bank of Vietnam at the time of compilation of documents of ODA-using investment projects;

e/ Technical support ODA-using programs and projects capitalized at USD one million or more; if the donor�s currency is used, it shall be converted into the US dollar at the exchange rate set by the donor at the time of project formulation.

2. The heads of the managing agencies shall approve ODA programs and projects not specified in Clause 1 of this Article. When issuing approval decisions, the heads of the managing agencies should base themselves on the priority domains for ODA use as prescribed in Article 3 of this Regulation, on the socio-economic efficiency of ODA programs and projects, the list of ODA programs and projects already approved by the Prime Minister and shall take personal responsibility for their decisions.

3. Within 20 working days as from the date of receipt of the appraisal reports, the Prime Minister shall issue decisions to approve ODA programs and projects specified in Clause 1 of this Article. Within 10 working days as from the date of receipt of the appraisal reports, the heads of the managing agencies shall issue decisions to approve ODA programs and projects specified in Clause 2 of this Article.

Chapter IV

NEGOTIATING AND SIGNING SPECIFIC INTERNATIONAL AGREEMENTS ON ODA

Article 21.- Bases for negotiating and signing specific international agreements on ODA

1. Bases for negotiating and signing specific international agreements shall be documents of ODA programs and projects (for investment programs and projects, they are feasibility study reports or investment decisions) already approved by Vietnamese competent authorities.

2. In some special cases, in order to ensure the tempo of ODA mobilization, basing itself on the written expositions of the managing agencies and the nature of ODA programs and projects, the Ministry of Planning and Investment may propose the Prime Minister to permit the use of pre-feasibility study reports of the ODA programs and projects already approved by competent authorities as basis for negotiating and signing specific international agreements on ODA.

3. The Ministry of Planning and Investment shall notify the donors of the competent authorities� decisions to approve ODA programs and projects. After getting the approval from the donors, the Ministry of Planning and Investment shall notify the managing agencies thereof for coordination in preparing the contents for the negotiation of specific international agreements on ODA.

Article 22.- Negotiation of specific international agreements on ODA

1. The prime responsibility for negotiating specific international agreements on ODA:

a/ The managing agencies shall be authorized to assume the prime responsibility and coordinate with the concerned agencies in negotiating specific international agreements on non-refundable ODA;

b/ The Ministry of Finance shall be authorized to assume the prime responsibility and coordinate with the concerned agencies in negotiating specific international agreements on ODA loans;

c/ The State Bank of Vietnam shall be authorized to assume the prime responsibility and coordinate with the concerned agencies in negotiating specific international agreements on ODA with international financial institutions specified in Clause 1, Article 40 of this Regulation;

d/ In case of necessity or at the donors� requests, the Prime Minister shall assign a suitable agency to represent the Government or propose the State President to authorize a suitable agency to represent the State in assuming the prime responsibility for negotiating specific international agreements on ODA.

2. In the course of negotiation, the agencies with the prime responsibility for the negotiation shall directly consult with the concerned agencies in order to reach agreement with the donors on the contents of specific international agreements on ODA. If an international agreement has altered its content as compared to the decisions to approve the contents of ODA programs and projects, the authorities that have issued such approval decisions shall have to consider and decide on contents needed to be changed accordingly.

For ODA programs and projects subject to approval by the Prime Minister, before submitting the adjustments and supplements thereto to the Prime Minister for consideration and decision, the agencies with the prime responsibility for the negotiation shall have to solicit written opinions from the Ministry of Planning and Investment, the Ministry of Finance, the Ministry for Foreign Affairs and other concerned agencies. Within 10 working days after receiving written requests from the agencies with the prime responsibility for the negotiation, the above-mentioned agencies must issue written replies.

3. Where the draft of a specific international agreement on ODA contains details contrary to or not yet provided for in Vietnam�s legal documents or institutional and/or policy commitments beyond their competence, the agency with the prime responsibility for the negotiation thereof shall have to report them to the Prime Minister for consideration and decision.

Article 23.- Signing of specific international agreements on ODA

1. After conclusion of negotiation, the agencies with the prime responsibility for the negotiation shall have to notify in writing the Ministry of Planning and Investment, the Ministry of Finance, the Ministry for Foreign Affairs, the Ministry of Justice and concerned agencies of the negotiation results, enclosed with the drafts of the specific international agreements on ODA.

2. For ODA loan-using programs and projects as well as programs and projects subject to approval by the Prime Minister, after obtaining opinions of the concerned agencies, the agencies with the prime responsibility for the negotiation thereof shall submit to the Prime Minister for approval the negotiation results and for decision the persons authorized to sign on behalf of the Government the specific international agreements on ODA with the donors.

3. For non-refundable ODA-using programs and projects subject to approval by the heads of the managing agencies, after obtaining opinions from the concerned agencies specified in Clause 1 of this Article, the heads of the agencies with the prime responsibility for their negotiation shall be authorized by the Government to sign the specific international agreements on ODA with the donors.

4. Where a specific international agreement on ODA must be signed in the name of the State of the Socialist Republic of Vietnam, the Prime Minister shall submit the case to the State President for consideration and decision.

5. The signing of specific international agreements on ODA shall comply with the Ordinance on the Conclusion and Implementation of International Agreements; where an agreement between the Vietnamese competent authorities and the donor provides otherwise, such agreement shall be complied with.

Chapter V

MANAGEMENT OF IMPLEMENTATION OF ODA PROGRAMS AND PROJECTS

Article 24.- Project owners

1. Project owners (including owners of component projects, if any) must be identified in the Vietnamese competent authorities� decisions to approve ODA programs and projects.

2. The ministerial-level agencies, the provincial-level People�s Committees and their attached administrative and public-service agencies may act as project owners for ODA programs and projects funded with the State�s grants but not for ODA programs and projects funded with loans re-lent by the State; particularly for programs and projects funded with both the State�s grants and re-lent loans, the Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Ministry of Finance in submitting these cases to the Prime Minister for consideration and decision.

Article 25.- Management boards of ODA programs and projects

1. The managing agencies shall issue decisions to set up project management boards immediately after the documents of the ODA programs and projects are approved by the competent authorities.

2. The ODA program or project management boards (hereinafter referred to as the project management boards for short) shall, in the capacity of the project owners� representatives, have the full power to perform on behalf of the project owners the assigned powers and tasks from the commencement till the conclusion of the projects, including the settlement, pre-acceptance test, hand-over and putting of the projects into exploitation and use.

3. The project management boards shall have their organization and operation regulations approved by the managing agencies. The Ministry of Planning and Investment shall guide in detail a model regulation on the functions, tasks, organization and operation of the project management boards.

4. The project management boards may use their own seals, open bank accounts under decisions of the project owners in order to implement the programs and projects in accordance with law provisions and the signed specific international agreements on ODA.

Article 26.- Reciprocal capital for implementation preparation and implementation of ODA programs and projects

1. ODA programs and projects must be ensured with enough reciprocal capital for their implementation preparation and implementation. The source and the mechanism for the use of reciprocal capital must be defined in the decisions to approve the ODA programs� or projects� documents.

2. Reciprocal capital for implementation preparation and implementation of ODA programs and projects funded with the State�s grants shall be arranged by the managing agencies in full, in time and in accordance with the tempo set in the ODA programs� and projects� documents already approved by the competent authorities, as well as with the law provisions on the State budget and the signed international agreements on ODA.

3. For ODA programs and projects funded with loans re-lent by the State from the budget and programs and projects funded with both the State�s grants and re-lent loans, the project owners shall have to acquire on their own the whole amount of reciprocal capital and make adequate explanations on their capability and plans to ensure such reciprocal capital before signing the re-lending contracts. In this case, the project owners shall be given priority to borrow capital from the State�s credit sources or from the Development Assistance Fund. If meeting with unforeseen difficulties in acquiring reciprocal capital, the project owners shall have to report them to the managing agencies for solution.

4. For ODA programs and projects for which reciprocal capital has not yet been arranged in the annual budget plan or which have unexpected needs of reciprocal capital, the project owners and the managing agencies shall request in writing the Ministry of Planning and Investment and the Ministry of Finance to consider and decide on the advance of the reciprocal capital from the central budget�s reserve source, which shall later be deducted from the reciprocal capital plan of the subsequent planning period.

5. The managing agencies may transfer the unused reciprocal capital already distributed in the plan year to the programs or projects to other programs or projects in need of more reciprocal capital than the capital amount already distributed to them in the annual plan.

Article 27.- Advance capital for implementation of ODA programs and projects

For programs or projects to be ODA-financed as pledged, if they have urgent needs of advance capital for implementing some items, the Ministry of Finance shall assume the prime responsibility and coordinate with the Ministry of Planning and Investment in considering and deciding on the advance of capital from the State budget source on the basis of the managing agencies� written explanations and the donors� written agreements. The Ministry of Finance shall recover this capital amount when disbursing ODA capital to these items.

Article 28.- Taxes on ODA programs and projects

1. Taxes on ODA programs and projects shall comply with current regulations.

2. All interests on ODA loans, which are not subject to enterprise income tax, shall comply with the provisions of the Enterprise Income Tax.

3. Where an international agreement which Vietnam has signed or acceded to contains different tax provisions related to the implementation of ODA programs and projects, such provisions shall apply.

Article 29.- Ground clearance

1. The compensation, ground clearance and resettlement under ODA programs and projects shall comply with current regulations of the State. Where an international agreement which the Vietnamese State or Government has signed contains ground clearance- and resettlement-related provisions different from Vietnam�s provisions, the provisions of such international agreement shall apply.

2. The ODA programs� or projects� dossiers submitted for the approval of bidding plans must contain official written commitments of the agencies with competence over ground clearance to the tempo and deadline for completion of the compensation, ground clearance and resettlement compatible with the implementation tempo of each bid package under the above-said ODA programs or projects.

Article 30.- Bidding

The bidding applicable to ODA programs and projects shall comply with law provisions.

Article 31.- Adjustment, revision and supplement of the contents of ODA programs and projects during the course of implementation

1. For ODA programs and projects subject to approval by the Prime Minister as prescribed in Clause 1 of Article 20, if there arise needs to adjust and/or supplement their contents during the course of their implementation, the managing agencies shall have to send written explanations thereon to the Ministry of Planning and Investment for settlement according to the following regulations:

a/ The Ministry of Planning and Investment shall assume the prime responsibility for organizing the appraisal and submit to the Prime Minister for approval the following cases:

- Adjustments of and supplements to the programs� or projects� contents, which lead to alteration of the approved objectives;

- Adjustments of and supplements to the programs� or projects� contents, which result in an increase of over 10% in their approved total capital or an increase of less than 10% but worth more than USD 1,000,000 for investment programs and projects, and more than USD 100,000 for technical support programs and projects (if the donor�s currency is used, it must be converted into the US dollar at the exchange rate set by the donor).

b/ The managing agencies shall approve cases of adjustment and supplement not specified at Item a, Clause 1 of this Article.

2. For ODA programs and projects subject to approval by the managing agencies, if there arise needs to adjust and/or supplement their contents in the course of implementation, the project management boards shall send written explanations for such adjustment and/or supplement to the project owners and the agencies assuming the prime responsibility for the appraisal as prescribed in Clause 4, Article 18 of this Regulation for settlement according to the following regulations:

a/ The heads of the managing agencies shall be competent to approve ODA programs and projects, on the basis of written opinions of the agencies assuming the prime responsibility for organizing the appraisal and of the project owners, for the following cases:

- Adjustments of and supplements to the programs� or projects� contents, which result in the alteration of the approved objectives;

- Adjustments of and supplements to the programs� or projects� contents, which result in an increase of over 10% in their approved total capital or an increase of less than 10% but worth more than USD 500,000 for investment programs and projects, and more than USD 50,000 for technical support programs and projects (if the donor�s currency is used, it must be converted into US dollar at the exchange rate set by the donor).

b/ The project owners shall approve other cases of adjustment and supplement not specified at Item a, Clause 2 of this Article.

3. Apart from the provisions of Item b of Clause 2 above, the project owners may decide on adjustments and supplements in the following cases:

a/ Adjustment of the total capital amounts (converted into Vietnam dong) of the ODA programs or projects due to a change in the exchange rate or the adjustment of or supplement to the value of the self-mobilized reciprocal capital portion;

b/ Adjustment of the capital structures (adjustment of the budget flow) of the ODA programs or projects without changing their objectives and increasing their approved total capital amounts.

4. Adjustments and supplements that cause the programs or projects to fall into any of the cases specified in Clause 1, Article 20 of this Regulation, shall comply with the provisions in Clause 1 of this Article.

5. Where a donor agrees on the use of post-bidding surplus capital amount of the ODA program or project (surplus capital means the difference between the total financing value stated in the signed international agreement on ODA and the approved total value of the bidding result), the use of such capital amount shall be effected like an independent ODA project in the prioritized direction of promoting the efficiency of the implemented program or project. The managing agency shall have to notify such to and coordinate with the Ministry of Planning and Investment in carrying out necessary procedures for using such surplus capital amount.

6. Where the related ODA international agreement must be amended and/or supplemented, the provisions of the Ordinance on Conclusion and Implementation of International Agreements shall apply.

Article 32.- Construction management, pre-acceptance test, hand-over and settlement

1. The appraisal and approval of technical designs and total cost estimates, the granting of construction permits, the management of the quality of works, the pre-acceptance test, hand-over, warranty and insurance of construction works of the investment ODA programs and projects shall comply with the State�s regulations on investment and construction management.

2. For technical support ODA programs and projects, after completion of their implementation, the project owners shall organize pre-acceptance tests and take necessary measures to continue exploiting and promoting the attained results.

3. The settlement of ODA programs and projects must be carried out in accordance with the provisions of the signed international agreements on ODA and the State�s regulations.

Chapter VI

MONITORING, EVALUATION OF ODA PROGRAMS AND PROJECTS

Article 33.- Monitoring and evaluation of ODA programs and projects

1. Monitoring of ODA programs and projects means a regular and periodical activity of updating the situation of implementation of programs and projects.

2. Evaluation of programs and projects is a regular and periodical activity aiming to clearly analyze the relationship between the actually obtained results and the to be-attained objectives set in the programs� or projects� documents already approved by the competent authorities, and at the same time, to discover difficulties and obstacles (which had occurred or are potential) in order to devise measures to overcome or effectively prevent them and clearly assess the observance of management regulations. The evaluation work shall be conducted through the following four major steps:

a/ Initial evaluation: to be conducted immediately after starting the implementation of the program or project with a view to considering the actual situation of the program or project as compared with the approved document so as to apply handling measures right from the stage of technical design and making detailed implementation plans;

b/ Mid-term evaluation: to be conducted by the middle of the program or project implementation duration in order to review the implementation process from the start and propose necessary adjustments;

c/ Final evaluation: to be conducted immediately after the conclusion of the program or project implementation in order to assess the obtained results and sum up the whole implementation process, and draw necessary experiences for use as basis for making final reports on the program or project completion;

d/ Operation evaluation (activity evaluation): to be conducted at an appropriate time within five years after the date the programs or projects are put into exploitation and use so as to clearly assess their efficiency, sustainability and socio-economic impacts against the objectives set at the beginning.

3. The plan on the implementation organization and funding of the monitoring and evaluation, which is deducted from the ODA capital or reciprocal capital source, must be pre-determined in the ODA programs� or projects� documents and be suited to the nature of each type of program or project.

Article 34.- Responsibilities to monitor and evaluate ODA programs and projects

1. The project management boards shall have to regularly monitor and evaluate ODA programs and projects and to:

a/ Clearly identify resources to be utilized, the implementation tempo, the completion deadline, quality objectives and criteria for acceptance of the outcomes of each activity of their ODA programs or projects, for use as basis for monitoring and evaluation;

b/ Establish an internal information system, gather and archive fully information, data, dossiers, materials, books and vouchers of the ODA programs or projects, reports of contractors, changes in the State�s policies and laws, and the donors� regulations related to the implementation management;

c/ Draw up implementation reports as prescribed; supply and share information through the monitoring and evaluation information systems at the branch, local and national levels;

d/ Assume the prime responsibility for studying and drawing up, or hire consultants to study and draw up, initial, mid-term and final evaluation reports according to the contents of the approved ODA programs� and projects� documents; act as coordinators with the donors or competent management bodies in evaluating the programs and projects.

2. The project owners shall have to direct, urge and assist the project management boards in monitoring and evaluating ODA programs and projects. If facing difficulties or obstacles which they cannot solve by themselves, the project owners shall have to promptly report them to the competent authorities for settlement. The concerned agencies shall have to consider, process and respond to the requests of the project management boards and project owners within 15 working days; if they cannot handle them within the above-said time limit, they shall have to inform such to the project management boards and project owners.

3. The managing agencies shall assume the prime responsibility and coordinate with the concerned agencies in evaluating or hiring consultants to evaluate activities of ODA programs and projects in cases where this evaluation step is required.

4. The agencies managing ODA programs and projects shall assume the prime responsibility and coordinate with the concerned agencies and the donors in organizing regular and irregular meetings to review each ODA program or project or each group of ODA programs or projects.

5. The Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the bodies performing the State management over ODA, on the basis of their functions and tasks specified in Chapter VII of this Regulation, in monitoring and evaluating ODA programs and projects. In case of necessity, the Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Ministry of Finance, the branch-managing ministries and localities in setting up inter-branch working teams to work directly with the management boards of ODA programs or projects in considering and settling according to their competence the proposals related to these ODA programs and projects. For matters falling beyond its competence, the Ministry of Planning and Investment shall have to sum up opinions of the concerned agencies and submit them to the Prime Minister for consideration and decision.

6. The Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the General Department of Statistics in formulating and synthesizing periodical statistical indexes on the situation of reception and use of ODA, coordinate with the concerned agencies in establishing and operating the information system to monitor and evaluate ODA programs and projects, creating favorable conditions for the sharing of information and exploitation of this system.

Article 35.- Reporting on the implementation of ODA programs and projects

1. In the course of implementing ODA programs or projects, the project management boards shall have to draw up and send the following reports to the project owners, the managing agencies, the Ministry of Planning and Investment, the Ministry of Finance and the concerned provincial-level agencies:

a/ Monthly reports, within 10 working days after the month�s end (applicable only to investment programs and projects approved by the Prime Minister, which are key national programs and projects, at the written requests of the Ministry of Planning and Investment);

b/ Quarterly reports, within 15 working days after the quarter�s end;

c/ Annual reports, not later than January 31 of the subsequent year;

d/ Final report, within 6 months after the conclusion of implementation of the program or project.

Reports addressed to the donors shall be drawn up as agreed upon in the signed international agreements on ODA.

2. Quarterly, the managing agencies shall make wrap-up reports on the results of the ODA mobilization and reports on the evaluation of the implementation of ODA programs and projects under their management and send them to the Ministry of Planning and Investment, the Ministry of Finance within 20 working days after the quarter�s end.

3. The Ministry of Planning and Investment shall make biannual wrap-up reports and annual reports on the nationwide ODA attraction and use for submission to the Government, assume the prime responsibility and coordinate with the concerned bodies in guiding the uniform reporting regime and model reports on ODA.

Article 36.- Supervision and inspection of the ODA reception, management and use

The supervision and inspection of the ODA reception, management and use shall comply with law provisions.

Chapter VII

STATE MANAGEMENT OVER ODA

Article 37.- The Government performs the uniform State management over ODA

The Government shall decide on the strategy, plannings and plans for the ODA attraction and use in each period, approve lists and contents of ODA programs and projects calling for financial support and ODA programs and projects subject to approval by the Prime Minister, administer on a macro-scale the management and implementation of ODA programs and projects, and promulgate legal documents on the ODA management and use.

Article 38.- The Ministry of Planning and Investment, a key body in the ODA attraction, coordination and management, has the following tasks:

1. Assuming the prime responsibility for drafting the strategy and plannings for ODA attraction and use; guiding the managing agencies in making lists and outlines of priority programs and projects for ODA mobilization, synthesizing lists of ODA-using programs and projects for submission to the Prime Minister for approval.

2. Assuming the prime responsibility for preparing and organizing the mobilization and coordination of ODA sources in conformity with the ODA attraction and use strategy and planning and the list of priority programs and projects for ODA mobilization.

3. Preparing the contents of and negotiating framework international agreements on ODA; representing the Government in signing framework international agreements on ODA with the donors.

4. Guiding the concerned units and organizations in preparing ODA programs and projects; assuming the prime responsibility and coordinating with the Ministry of Finance in identifying forms of use of ODA granted or re-lent from the State budget; appraising and submitting to the Prime Minister for approval the documents of ODA programs and projects subject to approval by the Prime Minister.

5. Monitoring and assisting in the preparation of the contents and the negotiation of specific international agreements on ODA with the donors.

6. Assuming the prime responsibility and coordinating with the Ministry of Finance in synthesizing and making plans on the disbursement of ODA capital, arranging in time enough capital for preparation of ODA programs and projects, reciprocal capital for implementation preparation and implementation of ODA programs and projects funded with the grants from State�s budget in the annual capital plans; together with the Ministry of Finance assuming the prime responsibility and coordinating with the concerned agencies in determining a reasonable reserve portion in the central budget when making the annual budget estimates for submission to the Prime Minister and the National Assembly, which shall be used to meet unexpected needs of reciprocal capital for ODA programs and projects.

7. Assuming the prime responsibility for monitoring, evaluating and inspecting the management, implementation and effect of activities of ODA programs and projects; urging and assisting the implementation of ODA programs and projects; holding the key role in the handling of matters related to many ministries and branches; proposing the Prime Minister to consider and decide on measures to handle ODA-related matters under the latter�s prescribed competence.

8. Establishing, operating and perfecting the information system for monitoring and evaluation of ODA programs and projects; creating conditions for the information sharing and the effective exploitation of this system.

9. Making periodical (biannual, annual) wrap-up reports and reports at the special requests of the Party and the State on the management and implementation of ODA programs and projects and the effectiveness of ODA attraction and use.

10. Compiling and disseminating professional instruction materials on the mobilization, preparation, appraisal, implementation management, monitoring and evaluation of ODA programs and projects, taking into account the requirement for compatibility with the donors� procedures.

Article 39.- The Ministry of Finance has the following tasks:

1. Coordinating with the concerned agencies in formulating the ODA attraction and use strategy and planning, and coordinating ODA sources; guiding the preparation of the contents of ODA programs and projects related to the conditions for capital use, financial management, analysis and evaluation of the efficiency of the use of ODA capital.

2. Preparing the contents of negotiation on ODA loan programs and projects with the donors; under the authorization of the State President or the Prime Minister, negotiating specific international agreements on ODA loans, except international agreements on ODA specified in Clause 1, Article 40 of this Regulation.

3. Officially representing the "borrower" being the State or the Government of the Socialist Republic of Vietnam in specific international agreements on ODA, even in cases where the State President or the Prime Minister authorizes another agency to assume the prime responsibility for negotiating the above-said international agreements.

4. Performing the financial management of ODA programs and projects:

a/ Assuming the prime responsibility and coordinating with the concerned agencies in formulating the financial management regime applicable to ODA programs and projects and submitting it to the Prime Minister for decision;

b/ Assuming the prime responsibility and coordinating with the Ministry of Planning and Investment and the concerned agencies in preparing and submitting to the Prime Minister for approval the financial mechanism applicable to ODA programs and projects;

c/ Specifying the procedures for capital withdrawal and capital withdrawal management to be adhered to by ODA programs and projects on the basis of current law provisions and provisions of the international agreements on ODA already signed with the donors;

d/ Coordinating with the Ministry of Planning and Investment in synthesizing and making ODA capital disbursement plans, arranging enough capital in time for ODA program and project preparation, reciprocal capital for implementation preparation and implementation of ODA programs and projects funded with grants by the State from the budget in the annual budget estimates; allocating enough reciprocal capital according to the implementation tempo to ODA programs and projects funded with grants by the State from its budget; together with the Ministry of Planning and Investment assuming the prime responsibility and coordinating with the concerned agencies in determining a reasonable reserve portion in the central budget when making the annual budget estimates for submission to the Prime Minister and the National Assembly, which shall be used to meet unexpected needs of reciprocal capital for ODA programs and projects.

Organizing the re-lending and recovering of re-lent capital amounts of ODA programs and projects funded with loans re-lent by the State.

e/ Arranging the State budget capital for repayment of due ODA loans;

f/ Monitoring and supervising the financial management in the use of ODA capital; organizing the State budget accounting of ODA sources, summing up the data on capital withdrawal, payment and debt repayment in ODA programs and projects, reporting them to the Government and informing them to the concerned agencies.

5. Compiling and disseminating professional instruction materials regarding capital disbursement and financial management of ODA programs and projects.

Article 40.- The State Bank of Vietnam has the following tasks:

1. Coordinating with the concerned agencies in preparing the negotiation contents; negotiating, under the authorization of the State President or the Prime Minister, specific international agreements on ODA with international financial institutions: the World Bank, the International Monetary Fund and the Asian Development Bank; handing over capital and all information relating to ODA programs and projects to the Ministry of Finance after the specific international agreements on ODA take effect, except loans agreements with the International Monetary Fund.

2. Coordinating with the Ministry of Finance in selecting and designating commercial banks for authorized external payment transactions related to the ODA capital sources, for authorized re-lending and recovery of capital for repayment of debts to the budget in cases of necessity.

3. Summing up periodically (biannually and annually) and reporting to the Ministry of Finance and the concerned agencies on the situation of the capital withdrawal and payment through the system of accounts of ODA-using programs and projects, opened at banks.

Article 41.- The Ministry for Foreign Affairs has the following tasks:

1. Coordinating with the concerned agencies in elaborating and implementing policies and orientations for ODA mobilization as well as cooperation policies on the basis of the general external relation policies.

2. Participating in negotiating and contributing opinions on the draft international agreements on ODA; carrying out necessary external procedures in the authorization of negotiation, authorization of signing, notification, approval and ratification of international agreements on ODA.

3. Notifying the concerned Vietnamese agencies of the time and conditions for the signed international agreements on ODA to come into force.

4. Assuming the prime responsibility and coordinating with the Ministry of Planning and Investment in directing the overseas Vietnamese diplomatic missions to mobilize ODA in line with the planning and plans on attraction and use of ODA capital sources in each period.

Article 42.- The Ministry of Justice has the following tasks:

1. Contributing opinions on legal aspects in draft international agreements on ODA before they are submitted to the Prime Minister for approval.

2. Appraising and giving opinions on disparities between international agreements on ODA and domestic laws at the requests of the agencies authorized to assume the prime responsibility for negotiation; monitoring the handling of these matters in the course of implementing international agreements on ODA.

3. Providing legal opinions on international agreements on ODA or other legal matters at the requests of the agencies authorized to assume the prime responsibility for negotiation.

4. Implementing the provisions of the Government�s Decree No. 103/1998/ND-CP of December 26, 1998.

Article 43.- The Government Office has the following tasks:

1. Assisting the Government and the Prime Minister in leading, directing and administering the uniform State management over ODA.

2. Contributing opinions on the contents of ODA programs and projects in the process of their preparation; verifying and making proposals concerning policies, mechanism and way of organizing the implementation of ODA programs and projects before submitting them to the Government and the Prime Minister for consideration and decision.

3. Assisting the Government and the Prime Minister in inspecting and urging the implementation of this Regulation.

Article 44.- The tasks of other ministries, branches and the provincial-level People�s Committees

1. The ministries, the ministerial-level agencies and the agencies attached to the Government shall discharge their function of State management over ODA programs and projects according to their assigned respective functions and tasks. When requested, they shall have to consider and make written opinions on matters related to ODA programs and projects within the prescribed time limit.

2. The People�s Committees of the provinces and centrally-run cities have the following tasks:

a/ Coordinating with the Ministry of Planning and Investment and the concerned agencies in formulating the ODA attraction and use strategy and plannings; formulating policies and measures to coordinate and raise the efficiency in the use of ODA in their respective provinces and cities;

b/ Performing the function of territory-based State management over all ODA programs and projects in their respective provinces and cities, including those which are implemented by the ministries, branches or other provinces and cities.

Article 45.- The managing agencies have the following tasks:

1. Performing their functions and tasks as specified in this Regulation.

2. Designating an attached organization to advise the leadership and hold a key role in the general management of ODA programs and projects in their domains, branches or localities; defining the functions and tasks of such key agency and notify the agencies performing the State management over ODA thereof.

3. Directing, urging and supporting attached units in determining, preparing, managing and implementing effectively ODA programs and projects.

4. Arranging enough and in time capital to prepare for ODA programs and projects and reciprocal capital for implementation preparation and implementation of the signed ODA programs and projects under their approving competence.

5. Establishing and perfecting the systems of monitoring and evaluating ODA programs and projects in their respective branches and localities; solving in time problems and difficulties of ODA programs and projects according to their competence; strictly abiding by the reporting regime prescribed in Article 35 of this Regulation.

Chapter VIII

FINAL PROVISION

Article 46.- Provision on the agencies of the National Assembly, the Supreme People�s Court, the Supreme People�s Procuracy, political, socio-political and social organizations that receive ODA

This Regulation also generally applies to the agencies of the National Assembly, the Supreme People�s Court, the Supreme People�s Procuracy, political, socio-political and social organizations that receive ODA.

On behalf of the Government
Prime Minister
PHAN VAN KHAI