CIRCULAR NoCIRCULAR No. 06/2001/TT-BKH OF SEPTEMBER 20, 2001 GUIDING THE IMPLEMENTATION OF THE REGULATION ON THE MANAGEMENT AND USE OF OFFICIAL DEVELOPMENT ASSISTANCE
(Issued together with the Government�s Decree No. 17/2001/ND-CP of May 4, 2001)
Pursuant to the Government�s Decree No. 75/CP of November 1, 1995 on the functions, tasks, powers and organizational apparatus of the Ministry of Planning and Investment;
In furtherance of Article 4 of the Government�s Decree No. 17/2001/ND-CP of May 4, 2001 issuing the Regulation on the management and use of official development assistance (hereinafter referred to as the Regulation for short).
The Ministry of Planning and Investment hereby guides the implementation of the Government�s Decree No. 17/2001/ND-CP of May 4, 2001 issuing the Regulation on the management and use of official development assistance as follows:
I. GENERAL PROVISIONS
1. Scope of regulation
The Regulation on the management and use of official development assistance (ODA) regulates activities of attracting, managing and using this resource which is provided by the following donors and in the following forms:
1.1. ODA-providing donors include:
1.1.1. Foreign governments;
1.1.2. Inter-governmental or inter-state organizations, including:
a/ Development organizations of the United Nations (UN) such as: The United Nations Development Program (UNDP); the United Nations Children�s Fund (UNICEF); the World Food Program (WFP), the United Nations Food and Agriculture Organization (FAO); the United Nations Fund for Population Activities (UNFPA); the United Nations Development Capital Fund (UNDCF); the United Nations Industrial Development Organization (UNIDO); the United Nations High Commissioner for Refugees (UNHCR); the World Health Organization (WHO); the International Atomic Energy Agency (IAEA); the United Nations Educational, Scientific and Cultural Organization (UNESCO); the International Fund for Agricultural Development (IFAD); the International Monetary Fund (IMF); the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD) under the World Bank (WB) group.
b/ The European Union (EU), the Organization for Economic Cooperation and Development (OECD), the Association of South-East Asian Nations (ASEAN).
c/ International financial organizations: The Asian Development Bank (ADB); the Organization of Petroleum Exporting Countries (OPEC); the Northern Europe Investment Bank (NIB); the Northern Europe Development Fund (NDF); the Kuwait Fund.
1.2. Forms of ODA provision include:
1.2.1. Non-refundable ODA, which is the ODA not to be refunded to the donors.
1.2.2. Preferential ODA loans (also called preferential credit), which are borrowed by the Vietnamese Government at concessional interest rates and under preferential conditions with the "non-refundable component" (also called "support component") accounting for at least 25% of the total value of each loan.
1.2.3. Mixed ODA, which are non-refundable aid amounts or preferential loans provided simultaneously together with commercial credit amounts with the "non-refundable component" accounting for at least 25% of the total value of these amounts.
The method of calculating the "non-refundable component" is provide for in Appendix I to this Circular (not printed herewith).
1.3. The activities of attracting, managing and using loans with a support component of under 25% from international financial organizations, including loans from the International Monetary Fund (IMF), loans from the International Bank for Reconstruction and Development (IBRD) under the WB, and the Ordinary Capital Resource Fund (OCR) under the ADB, also fall under the governance scope of the Regulation and this Circular.
2. Priority domains for ODA use:
Support with ODA loans for a number of manufacturing domains in order to solve socio-economic problems mentioned at Point e, Clause 2, Article 3 of the Regulation is construed as production and business programs and projects which primarily aim to support the solution of a particular social matter such as job creation, increase of incomes for the poor, tackling of social vices, etc.
II. MOBILIZATION, NEGOTIATION, CONCLUSION OF INTERNATIONAL FRAMEWORK AGREEMENTS ON ODA
1. Lists of priority programs and projects for ODA mobilization at the annual conferences of donors� consulting group (CG conferences).
1.1. In the first week of August every year, the Ministry of Planning and Investment shall send written guidance to the managing agencies on how to prepare lists of programs and projects for selection and incorporation in the lists of priority programs and projects for ODA mobilization to be presented at the annual CG conferences.
1.2. Prior to the end of September every year, the managing agencies shall send to the Ministry of Planning and Investment the lists of priority programs and projects for ODA mobilization at the CG conferences. The outline of each program or project shall be made according to the set form.
2. Coordination in ODA mobilization
The coordination in ODA mobilization provided for in Article 8 of the Regulation is guided as follows:
2.1. Branch-based ODA coordination meetings
The branch-based ODA coordination meetings (called the branch-based ODA meetings for short) are organized to promote the mobilization and ensure the efficient use of ODA according to the approach to each branch or field in line with the national socio-economic development strategy, the development strategy and planning of each branch and the five-year plan of each branch or field.
The branch-based ODA meetings must be conducted according to the State�s current regulations on organization of international meetings and seminars under the Prime Minister�s Decision No. 122/2001/QD-TTg of August 21, 2001.
2.1.1. The ministerial-level agencies and branches shall assume the prime responsibility for preparing and organizing branch-based ODA meetings. The Ministry of Planning and Investment shall coordinate with them in preparing for and co-preside over, such meetings.
2.1.2. Preparation for branch-based ODA meetings:
- At least 30 working days before the expected opening of a meeting, the ministerial or branch-level agency organizing such meeting shall send a written request to the Ministry of Planning and Investment regarding the organization of the meeting, attaching therewith a plan on coordination in organizing the meeting.
- Within 10 working days after receiving the written request of the ministerial-level agency or branch, the Ministry of Planning and Investment shall issue a written reply, clearly stating its opinions on the meeting and the plan for coordination in organizing the meeting.
- At least 10 working days before the expected opening of the meeting, the ministerial-level agency or branch with the prime responsibility for organizing the meeting shall consult with the Ministry of Planning and Investment on the contents of the documents to be prepared and presented by the Vietnamese side at the meeting.
2.2. Territory-based ODA mobilization meetings
Territory-based ODA mobilization meetings are organized to increase the opportunity to attract ODA for socio-economic development of one or several provincial-level units. The contents of provincial-level ODA mobilization must be in line with the five-year socio-economic development strategy, planning and plan of each province or territory.
The organization of territory-based ODA mobilization meetings shall comply with the State�s current regulations on the organization of international meetings and seminars in the Prime Minister�s Decision No. 122/2001/QD-TTg of August 21, 2001. The Ministry of Planning and Investment shall have the responsibility to guide the organization of territory-based ODA mobilization meetings.
2.2.1. Presidency over territory-based ODA mobilization meetings
- For a meeting on mobilization of ODA for a single territory consisting of two or more provincial-level units, it shall be presided over by the Ministry of Planning and Investment.
- For a meeting on ODA mobilization for a single province or city, it shall be presided over by the provincial/municipal People�s Committee.
2.2.2. Preparation for territory-based ODA mobilization meetings:
a/ For provincial-level ODA mobilization meetings presided over by the provincial/municipal People�s Committees:
- At least 30 working days before the expected opening of a meeting, the provincial/municipal People�s Committee shall send a written request to the Ministry of Planning and Investment for the organization of the meeting, attaching therewith a meeting-preparation plan.
- Within 10 working days after receiving the written request of the provincial/municipal People�s Committee, the Ministry of Planning and Investment shall issue a written guidance on the organization of the meeting.
- At least 10 working days before the expected opening of the meeting, the provincial/municipal People�s Committee with the prime responsibility for organizing the meeting shall consult with the Ministry of Planning and Investment on the contents of the documents to be prepared and presented by the Vietnamese side at the meeting.
b/ For territory-based ODA mobilization meetings presided over by the Ministry of Planning and Investment:
- At least 30 working days before the expected opening of a meeting, the Ministry of Planning and Investment shall send written requests to the concerned provincial/municipal People�s Committees for the latter�s coordination in organizing the meeting, attaching therewith the plan for organizing the meeting.
- Within 10 working days after receiving the written requests of the Ministry of Planning and Investment, the concerned provincial/municipal People�s Committees shall issue written replies, clearly stating their opinions on the meeting and their respective plans for coordination.
2.3. Contents of the meeting preparation plan include: the meeting�s purposes; the meeting�s results to be obtained; the meeting contents, the participants; the meeting�s time and venue; the meeting agenda; outlines of materials and documents to be handed out at the meeting; the funding for organizing the meeting; necessary activities in preparation for the meeting; and their implementation timetable; and assignment of preparatory work (expected presiding agency(ies) and coordinating agency(ies)).
2.4. Reporting on the meeting results:
Within 20 working days after the end of a branch-based ODA meeting or provincial-level ODA mobilization meeting, the ministerial-level agency or provincial/municipal People�s Committee, which has assumed the prime responsibility for organizing such meeting, shall send to the Ministry of Planning and Investment a report on the meeting results, clearly stating the meeting�s proceedings and results against the set objectives, agreements already reached, matters (if any) on which the parties still have divergent opinions and proposed solutions thereto. For a territory-based ODA mobilization meeting presided over by the Ministry of Planning and Investment, the Ministry of Planning and Investment shall, also within the above-said time-limit, issue written notices on the meeting�s results to the concerned provinces.
2.5. ODA mobilization by Vietnam�s overseas diplomatic missions
2.5.1. Vietnam�s overseas diplomatic missions shall mobilize ODA in line with the strategy, planning and plan on ODA attraction and use, the lists of priority programs and projects for ODA mobilization publicized at CG Conferences and by corresponding donors.
2.5.2. The Ministry of Planning and Investment shall supply documents on the strategy, planning and plans on ODA attraction and use, the lists of priority programs and projects for ODA mobilization, legal documents on ODA, annual reports on ODA and relevant information at the requests of the Ministry for Foreign Affairs and Vietnam�s overseas diplomatic missions for carrying out ODA mobilization activities.
2.5.3. The Ministry for Foreign Affairs and Vietnam�s overseas diplomatic missions shall notify in time the Ministry of Planning and Investment of ODA-related information for coordination in the mobilization work.
3. Lists of ODA programs and projects for corresponding donors
3.1. Lists of ODA programs and projects for corresponding donors include one or several programs and/or projects selected and arranged in the priority order which the Prime Minister has considered, approved and permitted the calling of ODA from donors for their implementation.
3.2. For each particular donor, on the basis of the ODA provision mechanism agreed with the donor, the Ministry of Planning and Investment shall issue a separate guidance on the mode and tempo of listing ODA programs and projects calling for financial support.
The Ministry of Planning and Investment shall sum up and arrange the lists of ODA programs and projects calling for financial support and submit them to the Prime Minister for consideration and approval based on:
- The lists of priority programs and projects for ODA mobilization at CG Conferences;
- ODA programs and projects proposed by the managing agencies;
- ODA programs and projects proposed by the donors.
3.3. ODA programs and projects which are proposed to be included in the lists must be prepared according to the detailed outline form.
3.4. According to the schedule for each particular donor as guided by the Ministry of Planning and Investment, the managing agencies shall send the Ministry of Planning and Investment the program and/or project outlines together with their written proposals and 08 document sets in Vietnamese and English also as guided by the Ministry of Planning and Investment.
3.5. Within 15 working days after the end of the time limit for the managing agencies to send their written proposals as guided by the Ministry of Planning and Investment at Point 3.4, Section II of this Circular, the Ministry of Planning and Investment shall send a draft list of programs and projects for submission to the Prime Minister together with their outlines to the Government Office, the Ministry for Foreign Affairs, the Ministry of Finance and concerned functional agencies for the latter�s comments.
3.6. After studying and summing up the opinions of the Government Office, the Ministry of Finance, the Ministry for Foreign Affairs and concerned functional agencies, the Ministry of Planning and Investment shall make a general list of programs and projects calling for ODA from the corresponding donors and submit it to the Prime Minister for consideration and approval.
4. ODA amounts provided by the donors for separate programs or projects mentioned in Clause 6, Article 9 of the Regulation are construed as falling in one of the following forms:
- ODA amounts which the donors have agreed to provide but are not on the lists of ODA programs and projects for the corresponding donors, already approved by the Prime Minister.
- ODA amounts which the donors have agreed to provide but such donors have no practice of pledging with Vietnam through international framework agreements.
These are peculiar cases and dealt with as follows:
a/ For programs and projects falling under the approving competence of the managing agencies, the Ministry of Planning and Investment shall consult with the concerned agencies and submit them to the Prime Minister for consent on their reception and assignment to the managing agencies for approval thereof.
b/ For programs and projects falling under the approving competence of the Prime Minister, the Ministry of Planning and Investment shall appraise them before submitting them to the Prime Minister for approval according to the provisions of the Government�s Decree No. 17/2001/ND-CP of May 4, 2001 on the ODA management and use.
III. PREPARATION, APPRAISAL AND APPROVAL OF THE CONTENTS OF ODA PROGRAMS AND PROJECTS
1. ODA program or project preparation plans
Within 30 working days after the issuance of decisions on setting up Program or Project Preparation Boards, the chairmen of the Boards shall have to submit the ODA program or project preparation plans to the managing agencies or project owners for approval.
2. Appraisal of technical support ODA programs and projects
The appraisal of technical support ODA programs or projects that fall under the approving competence of the Prime Minister as stated in Clause 5, Article 19 of the Regulation is guided as follows:
2.1. The Ministry of Planning and Investment is the agency assuming the prime responsibility for organizing the appraisal.
2.2. The concerned agencies shall be invited by the Ministry of Planning and Investment to participate in appraising technical support programs and projects on the basis of their functions of performing the State management over ODA as stated in Articles 37, 38, 39, 40, 41, 42, 43, 44 and 45 of the Government�s Decree No. 17/2001/ND-CP of May 4, 2001 on the ODA management and use as well as the nature of each specific program or project. These agencies shall be responsible before law for their contributed opinions on the technical support programs or projects.
2.3. Preparation for appraisal of technical support programs and projects:
2.3.1. Dossiers of to-be-appraised technical support programs or projects, which are sent to the Ministry of Planning and Investment, shall be deemed valid if they comprise:
a/ The document on the submission of the program or project to the Prime Minister, endorsed by the head of the managing agency;
b/ The original document of the program or project in Vietnamese and English, already agreed with the donor (8 sets).
c/ The draft agreement (or treaty) on the project to be signed between the representatives of the Vietnamese side and the donor, 8 sets in Vietnamese and in either English or another language as agreed upon by the two sides (if any).
2.3.2. Appraisal conditions:
To be eligible for appraisal, a technical support project must satisfy all the following conditions:
- It is on the list of ODA programs and projects already approved by the Prime Minister.
- It has a valid dossier set as provided for at Point 2.3.1, Section III of this Circular.
2.3.3. Where a dossier for appraisal of a technical support program or project is not valid under Point 2.3.1 and fails to meet the conditions stated at Point 2.3.2, within five working days after receiving the dossier, the Ministry of Planning and Investment shall notify such to the managing agency and request it to make necessary supplements or amendments to validate the dossier.
2.3.4. Within five working days after receiving the complete and valid dossiers (8 sets each) from the managing agencies and if the projects are eligible for appraisal, the Ministry of Planning and Investment shall send documents to the agencies which are invited to participate in the appraisal as stated at Point 2.2, Section III of this Circular, requesting them to give their official opinions on the technical support programs or projects.
2.3.5. Within 15 working days after the Ministry of Planning and Investment sends its written requests, the appraising agencies must send their official written opinions to the Ministry of Planning and Investment. Past this time limit, if they have no written opinions, they shall be deemed to have agreed to the contents of the technical support programs or projects.
2.3.6. Basing itself on the contents, size and nature of each technical support program or project to be appraised, the Ministry of Planning and Investment shall decide on the form of appraisal in either of the two following ways:
a/ Summing up (written) opinions of the appraising agencies and submitting them to the Prime Minister for consideration and approval, for technical support programs or projects having their contents unanimously agreed upon by the appraising agencies.
b/ Organizing a meeting to appraise the technical support program or project and submitting its results to the Prime Minister for consideration and approval, for technical programs or projects having complicated contents on which there remain divergent opinions among the appraising agencies.
2.4. Appraisal of technical support programs and projects
2.4.1. Where the appraisal is organized in the form specified at Point 2.3.6.a, Section III of this Circular, within 10 working days after the end of the time limit for the agencies to give their opinions, the Ministry of Planning and Investment shall sum up opinions and submit them to the Prime Minister for consideration and decision.
2.4.2. Where the appraisal is organized in the form specified at Point 2.3.6.b, Section III of this Circular, within 10 working days after the end of the time limit for the appraising agencies to give their opinions, the Ministry of Planning and Investment shall organize the appraisal meeting(s).
In special cases, the appraisal meetings for technical support programs or projects may be organized after the end of the above-said time limit but must be within 20 working days after the end of the time limit for the agencies to give their opinions.
2.4.3. In the process of appraising a technical support program or project, the following contents must be clarified:
a/ The conformity of the technical support program�s or project�s objectives with the Government�s priorities; the explicitness and compatibility of the expected results (or output products) of the program or project with the set objectives.
b/ The feasibility of the mode of organizing the implementation of the program or project in terms of the project management and implementation capacity and the coordination mechanism in the implementation process.
c/ The contributing capability of the Vietnamese side, especially the reciprocal capital source and the rationality of the program�s or project�s budgetary structure earmarked for foreign and Vietnamese experts, domestic and overseas training, equipment and supplies, managerial costs and other expenses.
d/ The donor�s commitments, prerequisites and other conditions (if any) on the aid amounts as well as the Vietnamese side�s commitments to implementing the technical support program or project.
e/ The effectiveness and sustainability of the technical support program or project after its completion.
f/ Opinions which have been unanimous or remain divergent between the sides.
2.4.4. The results of the appraisal meetings shall be recorded in appraisal reports which clearly state: The contents already agreed upon by the appraising agencies; the contents which should be supplemented and/or adjusted (if any); the time limit for finishing such supplements and/or adjustments; and opinions which remain divergent and are proposed to be reserved (if any).
2.5. After the appraisal meetings:
2.5.1. Where an appraisal meeting concludes that the technical support program or project satisfies all conditions for approval, within five working days after its organization, the Ministry of Planning and Investment shall submit the technical support program or project to the Prime Minister for approval.
2.5.2. Where an appraisal meeting requires any supplement, adjustment or explanation, within five working days after the appraisal meeting is organized, the Ministry of Planning and Investment shall send a notice on the meeting�s conclusions and requirements to the managing agency. Basing itself on the specific contents and nature of the requirements for supplement, adjustment or explanation, the Ministry of Planning and Investment shall set a time limit for the satisfaction of these requirements. The managing agency shall, upon receiving the notice on the appraisal meeting�s conclusions and requirements, have to make the necessary supplement, adjustment or explanation as mentioned in the notice. Where it needs to negotiate with the donor on such supplement, adjustment or explanation, the managing agency shall have to carry out the negotiation; when re-submitting the finalized document of the technical support program or project, it must have a written report on the negotiation results, clearly stating the supplement, adjustment or explanation which has been accepted or declined by the donor.
2.5.3. Where after the appraisal the appraising agencies have opinions different from the written opinions they made earlier, they must send to the Ministry of Planning and Investment an additional document to supplement and revise the appraisal reports to be submitted to the Prime Minister.
2.5.4. Within 10 working days after the Prime Minister approves the technical support programs or projects, the Ministry of Planning and Investment shall notify the donors and the managing agencies of such approval for the latter to proceed with the signing and implementation of the programs or projects.
IV. NEGOTIATION AND SIGNING OF SPECIFIC ODA INTERNATIONAL AGREEMENTS
Within five working days after the end of the negotiation, the agencies with the prime responsibility for the negotiation shall issue written notices on the negotiation results as mentioned in Article 23 of the Regulation with the following contents:
1. The names of the agency with the prime responsibility for the negotiation and the negotiation-participating agencies.
2. The place and time of the negotiation.
3. Legal grounds for the negotiation.
4. A summary of the developments and results of the negotiating process, clearly stating the agreements already reached and matters (if any) not yet agreed upon between the sides and proposed solutions thereto.
V. MANAGEMENT AND IMPLEMENTATION OF ODA PROGRAMS AND PROJECTS
1. The Management Boards of ODA programs or projects
1.1. Decisions on the establishment of the Management Boards of ODA programs or projects
1.1.1. Within 15 working days after the feasibility study reports or the documents of the ODA programs or projects are approved by competent authorities, the managing agencies must issue decisions on the basis of the proposals of the project owners, or authorize the project owners to issue decisions, to establish the Management Boards of the ODA programs or projects (called the Project Management Boards for short).
The managing agencies and project owners may assign the responsibility to manage the newly-approved project to the Project Management Board which is managing another ODA program or project. In this case, within 15 working days after the feasibility study reports or the documents of the ODA programs or projects are approved by competent authorities, the managing agencies shall issue decisions or authorize the project owners to issue decisions to adjust or supplement all (or some) contents of the decisions on the establishment of the existing Project Management Boards as stated at Point 1.1.2, Section V of this Circular; to adjust or supplement all (or some) contents of the Operation Regulations of the existing Project Management Boards as stated at Point 1.7.2, Section V of this Circular.
1.1.2. A decision on the establishment of a Project Management Board must contain the following contents:
a/ The program or project title;
b/ Legal grounds for the establishment of the Project Management Board;
c/ The names of the managing agency and the project owner;
d/ Subjects and scope of management of the Project Management Board;
e/ Objectives to be achieved by the Project Management Board;
f/ Functions and tasks of the Project Management Board;
g/ Powers of the Project Management Board;
h/ Legal person status of the Project Management Board;
i/ Organizational structure and personnel of the Project Management Board.
1.2. Functions and tasks of the Project Management Boards
Within the scope of the tasks and powers of the project owners, the Project Management Boards are project owners� representative bodies, have the right to perform the assigned powers and tasks on behalf of the project owners. The Project Management Boards shall be responsible to the project owners and before law for their activities.
The Project Management Boards shall have the following functions and tasks:
a/ Representing the project owners in legal relations and in relations with State management bodies, donors, enterprises, individuals and other organizations inside and outside the country within the scope authorized by the project owners.
b/ Coordinating with the donors in formulating and deploying the program or project implementation plans, ensuring the right objectives, objects, tempo and commitments inscribed in the signed ODA international agreements as well as the approved ODA program or project contents. After establishment, the Project Management Boards must collect and systemize all ODA-related regulations of the Vietnamese State, the concerned donors� regulations on the program or project management and implementation, study and thoroughly understand these documents and the international agreements on the programs and/or projects under their charge, thereby to work out detailed project implementation plans, attaching importance to the timetable and necessary measures to ensure harmony between the Vietnamese sides� and concerned donors� procedures.
c/ Coordinating with the donors in determining the tasks for each post in the Project Management Boards, organizing and selecting people to work in the Project Management Boards under the authorization of the project owners.
d/ Based on the program or project implementation plans and tempos, coordinating with the donors in administering in time and efficiently using resources of the programs or projects; handling technical incompatibilities among the units participating in the program or project implementation.
e/ Making annual plans on the withdrawal of reciprocal capital and ODA capital according to the domestic financial mechanism and the donors� regulations for their programs and/or projects and carrying out procedures for withdrawing such capital in line with the project implementation tempo.
f/ Coordinating with the donors in selecting consultants for the program or project implementation.
g/ Preparing technical requirements and criteria of goods, construction and installation and services to be procured for the programs and/or projects and organizing bidding to select contractors in accordance with the Vietnamese State�s regulations and the ODA international agreements already agreed upon with the donors.
h/ Preparing and signing contracts within the frameworks of the programs and/or projects and organizing the performance of the signed contracts; supervising the concerned parties� performance of their contractual obligations.
i/ Strictly observing the regime of reporting on the implementation situation as prescribed in Article 35 of the Regulation, financial mechanisms, statistical, accounting and auditing regimes according to the State�s current regulations and satisfying requirements (if any) of the donors on financial reporting and auditing.
j/ Organizing the execution of decisions and submitting to the inspection and supervision of the project owners and competent superior agencies according to the provisions of law.
k/ Projecting risks which may occur to the programs or projects; proposing and taking measures in order to proactively prevent and mitigate such risks.
l/ Detecting cases where adjustments, modifications and/or supplements should be made to their programs and/or projects; preparing necessary documents and filling in procedures to propose them to the competent authorities for approval.
m/ Acting as coordinators for the project owners and agencies participating in the program or project implementation in contacting the donors on various matters arising in the program or project implementation course.
n/ Performing other tasks falling into the scope of the project owner�s tasks and powers as provided for by the specific ODA international agreements.
o/ Handing over the completed programs or projects to the receiving units according to regulations for operation and exploitation; discharging the responsibility to repay to the State budget loans as stated in the already signed lending contracts.
p/ Other tasks within the frameworks of the programs or projects as assigned by the project owners.
Particularly, the Project Management Boards of the programs or projects involving construction shall be assigned the following additional tasks and powers:
q/ Representing the project owners to work with the local administrations and concerned organizations and individuals to settle matters related to ground clearance, compensation and resettlement according to schedule and under the conditions set forth in the international agreements with the donors.
r/ Preparing the construction grounds, blue-print materials and technical standards to be handed over to the contractors according to the contractual conditions.
s/ Sending persons who have professional capability and administrative competence to the construction sites to settle matters arising during the construction.
Depending on the size and nature of each program or project (investment or technical support, allocated or re-lent loans or mixed loans�), the complexity of the program or project (number of components, input and output products, activities, participants, implementation place, impact scope, etc.) as well as its conditions and staff, the project owner may assign the Project Management Board all or some of the above-said tasks and powers.
The tasks, powers and responsibilities of a Project Management Board shall be stated in its establishment decision.
1.3. Where a Project Management Board is not assigned all the tasks and powers specified at Point 1.2, Section V of this Circular, in order to perform the remaining tasks and powers, the project-managing agency shall simultaneously issue decisions on the organization of the program or project implementation for various functional sections of the managing agency or authorize the project owners to issue decisions on the organization of the program or project implementation for various functional sections under the project owner�s charge as mentioned at Point 2, Section V of this Circular.
1.4. On the organization of the Project Management Boards
The organization of a Project Management Board principally covers the following:
1.4.1. The key posts in the Project Management Board as mentioned at Point 1.5.1, Section V of this Circular, the sections attached to the Project Management Board and the functions and tasks of the key posts and the attached sections.
1.4.2. The relationships between the key posts and the sections in the Project Management Board; the relationship among the sections in the Project Management Board.
1.4.3. The official payroll of a Project Management Board, including:
a/ Number of officials and employees on the official payroll;
b/ Number of officials and employees working on a part-time basis;
c/ Number of employees working under long-term and short-term contracts within the scope of operation of the Project Management Board.
1.5. Staff of the Project Management Boards
Each Project Management Board must have enough staff to discharge the assigned tasks and powers. Depending on the size of each program or project, the contents and scope of operation, the assigned responsibilities and powers, the organizational structure and operation of a Project Management Board and its staff shall be determined on the following principles:
1.5.1. Posts to be decided and appointed by the managing agencies or by the project owners under the authorization of the managing agencies
a/ The chairman of the Project Management Board (or project director or general director for the Management Board of a large-scale key national project) who manages and administers on behalf of the project owner all activities of the program or project. The chairman of the Project Management Board shall be responsible to the project owner for the program or project implementation activities and results according to the functions and tasks prescribed in the Project Management Board establishment decision.
b/ Vice-chairmen of the Project Management Board: A Project Management Board may have one or several vice-chairmen who assist the chairman in the tasks assigned by the chairman; vice-chairmen shall be selected by the chairman and appointed by the project owner at the proposal of the chairman.
c/ The project�s chief-accountant, who shall be responsible to the project owner and the chairman for all financial and auditing management work of the project or program. He/she shall be appointed by the project owner after consulting with the chairman.
d/ Other key posts (if necessary).
1.5.2. Officials and employees who are selected and decided by the Project Management Board chairmen
Basing themselves on the functions, tasks and organizational structures as well as payroll limits of the Project Management Boards as stated in the Project Management Board establishment decisions, the Project Management Board chairmen shall select and decide on officials and employees who do not fall under the deciding competence of the managing agencies or project owners.
1.5.3. Selection of officials and employees for the Project Management Boards
Officials and employees of the Project Management Boards (including those who are transferred from the project owner�s apparatus or recruited from elsewhere) must be selected according to the criteria (for professional fields, qualifications, experiences and personal qualities) which are specified in the "job descriptions" or "job assignment terms" determined and publicized by the chairmen prior to selection.
1.6. Assurance of the operations of the Project Management Boards
1.6.1. The Project Management Boards must be furnished with office equipment, communication and information equipment and have enough office spaces to meet the requirements of the program or project management and implementation.
1.6.2. The Project Management Boards shall have fundings for the project management work; fundings for payment of officials� and employees� salaries as prescribed in their Organization and Operation Regulations.
1.6.3. For programs and projects involving re-lent loans, if deeming it necessary, the project owners shall base themselves on the current regulations to add the owner�s capital source to the operation fundings of the Project Management Boards in order to step up, and enhance the effectiveness of, their activities.
1.7. Regulations on the Organization and Operation of the Project Management Board
1.7.1. Within 15 working days after the Project Management Board establishment decisions are issued, the managing agencies shall decide or authorize the project owners to issue Regulations on the Organization and Operation of the Project Management Boards.
1.7.2. A Regulation on the Organization and Operation of the Project Management Board shall be issued at the proposal of the Project Management Board and must contain the following contents:
a/ Legal grounds for the issuance of the Regulation;
b/ Material and technical conditions ensuring the operations of the Project Management Board;
c/ Stipulations on the operation regimes: administering regime, regime on coordination within the Project Management Board and with outside agencies, regime on coordination with the donor regarding matters related to the project activities; reporting regime of the Project Management Board;
d/ Other regulations.
2. Decisions on the organization of program or project implementation
2.1. Decisions on the organization of program or project implementation shall be issued by the project-managing agencies or by the project owners under the authorization of the project-managing agencies simultaneously with the Project Management Board establishment decisions.
2.2. A decision on the organization of program or project implementation must contain the following contents:
a/ Legal grounds for the issuance of the decision;
b/ The names of the project-managing agency and project owner;
c/ The subjects and scope of regulation of the decision;
d/ The organizational structures and operations of the sections regulated by the decision and the relationships between these sections with the concerned agencies and with the donor;
e/ Tasks and powers of the sections or personnel regulated by the decision;
f/ Material and technical conditions ensuring the operation of the functional sections regulated by the decision;
g/ Other regulations.
3. Adjustment of, amendment and supplement to the ODA program or project contents during the implementation process
3.1. The adjustment of and supplement to ODA programs and projects falling under the approving competence of the Prime Minister as stated at Point a, Clause 1, Article 31 of the Regulation are understood as follows:
3.1.1. Any adjustment of, amendment or supplement to the program or project contents which results in a change in the approved objective.
3.1.2. Any adjustment of or supplement to program or project contents, which increases the approved total capital amount (for one adjustment or accumulated adjustments) by more than 10% or by 10% or less but the increased amount exceeds USD one million for investment programs and projects, or USD 100,000 for technical support programs and projects (for amounts in the donor�s currency, they must be converted into the US dollar at the exchange rate set by the donor).
3.1.3. Adjustment of, amendment or supplement to, the completion deadline, the deadline for the final withdrawal of capital of the program or project, which leads to the readjustment of the agreement signed between the Vietnamese Government and the donor.
3.2. Dossiers of application for adjustment of and/or supplement to ODA programs or projects
3.2.1. For requests for adjustment of, amendment and/or supplement to programs or projects mentioned at Points 3.1.1 and 3.1.2, Section V of this Circular, the dossiers thereof sent to the Ministry of Planning and Investment shall consist of:
a/ The written request for the adjustment of, amendment and/or supplement to the program or project, endorsed by the head of the managing agency;
b/ For once adjusted, amended and/or supplemented ODA programs and projects which fall under the competence of the managing agencies as prescribed at Point b, Clause 1, Article 31 of the Regulation, the copies of the feasibility study report (or the document of the technical support program or project) already adjusted, amended and/or supplemented at the last time and the decision approving such feasibility study report (or the document of the technical support program or project), which is issued by the head of the managing agency; the written explanation on the previous adjustments, supplements and/or amendments;
c/ The written notice on the donor�s commitment to the adjustment, amendment and/or supplement (a copy written in a language agreed upon by the two sides and its Vietnamese version), if any;
d/ A draft agreement on the ODA adjustment of, amendment and/or supplement, to be signed between the representatives of the Vietnamese side and the donor (a copy written in a language agreed upon by the two parties and its Vietnamese version);
e/ Where the dossier of appraisal of the adjustment, amendment and/or supplement to the ODA program or project is not valid, the Ministry of Planning and Investment shall notify such to the managing agency and ask the latter to make necessary supplements or amendments to validate the dossier. Within five working days after receiving the complete and valid dossiers, the Ministry of Planning and Investment shall complete the appraisal procedures.
3.2.2. As for requests for adjustment of the completion deadline and/or the deadline for the final withdrawal of capital of the program or project as mentioned at Point 3.1.3, Section V of this Circular, the dossiers thereof sent to the Ministry of Planning and Investment shall consist of:
a/ The written request for adjustment of the completion deadline and/or the deadline for the final withdrawal of capital of the program or project, endorsed by the head of the managing agency, clearly stating the reasons therefor and related matters arising from the adjustment (if any);
b/ The donor�s consent on the adjustment of the completion deadline and/or the time limit for closing the account of the program or project.
3.3. The form, process and time limit for appraisal of the content adjustment, amendment and/or supplement stated at Points 3.1.1 and 3.1.2, Section V of this Circular for ODA-funded investment programs and projects shall comply with the evaluation provisions in the Regulation on Investment and Construction Management.
3.4. The form, process and time limit for evaluation of the content adjustment, amendment and/or supplement stated at Points 3.1.1 and 3.1.2, Section V of this Circular for technical support programs and projects shall comply with the provisions of Point 2, Section III of this Circular.
3.5. The submission to the Prime Minister for consideration and decision of the adjustments of and/or supplements to the completion deadline and/or the deadline for the final withdrawal of capital of the programs or projects as stated at Point 3.1.3, Section V of this Circular is as follows: Within five working days after the Ministry of Planning and Investment receives the complete and valid dossiers, it shall, depending on the dosier contents, assume the prime responsibility for submitting them in either of the following two forms:
3.5.1. Submitting them to the Prime Minister for consideration and decision.
3.5.2. Sending documents to the concerned agencies (attaching therewith the managing agencies� dossiers of application for adjustment and/or supplement) requesting them to give their official opinions on the adjustment and/or supplement:
- Within 10 working days after the Ministry of Planning and Investment sends the written requests, the concerned agencies shall send their written opinions to the Ministry of Planning and Investment.
- Within five working days after the end of the time limit for the concerned agencies to give their written opinions, the Ministry of Planning and Investment shall submit them in writing to the Prime Minister for consideration and decision.
4. Approval of adjustments of, amendments and/or supplements to the contents of ODA programs and projects by the managing agencies and project owners
The approval of adjustments of, amendments and/or supplements to the contents of programs and projects as mentioned at Points 3.1.1 and 3.1.2, Section V of this Circular by the managing agencies as prescribed at Point a, Clause 2, and Point b, Clause 1, Article 31 of the Regulation and by the project owners as prescribed at Point b, Clause 2, Article 31 of the Regulation must ensure the uniform management over ODA. At least 10 working days prior to approval, the agencies that issue approval decisions must send to the Ministry of Planning and Investment the written agreements or adjustment requests of the donors.
VI. PROJECT MONITORING AND EVALUATION
1. The Project Management Boards� reporting on the situation of ODA program and project implementation
In the course of implementing ODA programs and projects, the Project Management Boards must send the following periodical reports according to regulations to the managing agencies, the Ministry of Planning and Investment, the Ministry of Finance, the concerned provincial-level People�s Committees and the branch-managing ministries:
1.1. Monthly reports:
For investment programs and projects which have been approved by the Prime Minister and are key national ones, within 10 working days after the end of each month, the Project Management Boards must send reports made according to the set form. Particularly for the first month�s implementation reports, right after the agreements come into force, these reports must be sent together with the "Basic information on the project" made according to the set form.
1.2. Quarterly reports:
Within 15 working days after the end of every quarter, all Project Management Boards must send reports made according to the set form. For programs and projects which are not key national ones, particularly for the first quarter�s implementation reports, immediately after the agreements come into force, these reports must be sent together with the "basic information on the project" made according to the set form.
1.3. Annual reports:
Not later than January 31 of the subsequent year, the Project Management Boards must send reports made according to the set form.
1.4. Completion reports:
Within six months after the completion of the implementation of the ODA programs or projects, the Project Management Boards must send reports made according to the set form.
2. The managing agencies� reports
Quarterly, within 20 working days after the end of the quarter, and 40 days after the end of the year, the managing agencies must make sum-up reports for the whole quarter and the whole year on the ODA mobilization results, reports evaluating the situation of the implementation of ODA programs and projects under their respective management, made according to the set forms, and send them to the Ministry of Planning and Investment and the Ministry of Finance.
3. Handling of breaches of the reporting regime
For agencies that fail to abide by the prescribed reporting regime, depending on the seriousness of their breaches, the managing agencies or the Ministry of Planning and Investment shall assume the prime responsibility in coordinating with the concerned agencies according to their functions to:
3.1. Request the agencies with the reporting responsibility to directly present in detail the contents required by the reporting regime.
3.2. Handle, within the ambit of their powers, breaches of the reporting regime committed by the reporting agencies or notify the matter beyond their competence to the competent agencies for handling.
4. Formulation of the systems of monitoring and evaluating ODA programs and projects
The formulation of the systems of monitoring and evaluating ODA programs and projects at the managing agencies mentioned in Clause 5, Article 45 of the Regulation is guided as follows:
4.1. At the Planning and Investment Services of the provincial/municipal People�s Committees and the Planning and Investment Departments (or departments in charge of ODA management) of the ministries and branches, there should be full-time (or part-time) sections in charge of monitoring and evaluating ODA programs and projects under the management by the managing agencies.
4.2. Functions and tasks of the sections in charge of project monitoring and evaluation are as follows:
- Monitoring the situation of the implementation of ODA programs and projects under the management of the managing agencies; updating problems arising in the course of implementation of ODA programs and projects and coordinating with the concerned agencies in solving them.
- Monitoring and urging the handling of problems in the course of implementation of ODA programs and projects; summing up and reporting to the unit heads the situation of the project implementation and proposing measures to solve problems.
- Urging the Project Management Boards under the managing agencies and concerned Project Management Boards according to the State management functions (for the provinces and cities, they are projects managed by the ministries or branches but implemented in these provinces or cities; for the ministries and branches, they are projects under their management but implemented by the provinces or cities) to abide by the prescribed reporting regime.
- Making reports according to regulations and sending them to the managing agencies.
- Assuming the prime responsibility for organizing the evaluation of ODA programs and projects at the requests of the heads of the managing agencies.
- Developing, utilizing and applying information technologies to, and guiding professional skills in, the work of management, monitoring and evaluation of ODA programs and projects under the managing agencies.
VII. ORGANIZATION OF IMPLEMENTATION
1. This Circular replaces Circular No. 15/1997/TT-BKH of October 24, 1997 of the Ministry of Planning and Investment guiding the implementation of Decree No. 87/CP of August 5, 1997.
2. This Circular takes effect 15 days after its signing. In the course of implementation if there arise any problems, the ministries, localities and concerned units should promptly report them to the Ministry of Planning and Investment for further supplements to and finalization of this guiding Circular.
Minister of Planning and Investment
TRAN XUAN GIA