Tiếng Việt| THE MINISTRY OF PLANNING AND INVESTMENT
| SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness |
| No. 04/2007/TT-BKH | Ha Noi, July 30, 2007 |
Pursuant to the Government’s Decree 61/2003/ND-CP of June 6, 2003, on the functions, tasks, powers and organizational structure of the Ministry of Planning and Investment;
Pursuant to Article 3 of the Government’s Decree 131/2006/ND-CP of November 9, 2006, promulgating the Regulation on management and use of official development assistance;
The Ministry of Planning and Investment guides the implementation of the Government’s Decree 131/2006/ND-CP of November 9, 2006, promulgating the Regulation on management and use of official development assistance (below referred to as the Regulation for short) as follows:
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2. Donors’ loans under concessional conditions on interest rates, grace periods and repayment durations which fail to ensure the non-refundable element stated at Points b and c, Clause 2, Article 1 of the Regulation will fall under the scope of regulation of this Regulation if:
a/ Loans within the framework of official development assistance between the Government of Vietnam and donors (national programs, credit lines and other financial supports).
b/ The use of these loans complies with the requirements on donors’ and Vietnam’s process and procedures similar to those applicable to concessional loans defined at Points b and c, Clause 2, Article 1 of the Regulation.
For other cases, if donors’ loans fail to satisfy the conditions specified at Points a and b above, the Ministry of Planning and Investment shall consult the OECD-DAC on the application of the Regulation to these loans.
1. Programs or projects include:
a/ Programs or projects with one or more than one component in one or more than one domain but under the management of only one agency.
b/ Programs or projects with many component projects which are participated in by many managing agencies, including one managing agency holding the coordinating role and other agencies managing component projects. In this case, programs or projects are referred to as umbrella programs or projects. The managing agency holding the coordinating role is referred to as umbrella program- or project-managing agency.
2. Regional programs or projects are programs or projects that finance a group of countries within a certain geographical area to cooperate in implementing activities in a specific domain so as to achieve specified objectives in their common interests.
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4. Program- or branch-based approach: Donors base themselves on the development program, planning or plan of a branch or domain, which has been approved by a competent Vietnamese agency, to provide additional resources to ensure that the program is implemented in a coordinated, sustainable and effective manner.
In some cases, program- or branch-based approach may be attached with some conditions agreed upon between donors and Vietnam in order to encourage the implementation of some development policies.
When policy conditions set by a donor fall beyond their deciding competence, managing agencies shall submit them to the Prime Minister for consideration and decision.
Program- or branch-based approach may be implemented through the following forms of funding:
a/ Budget support: Donors additionally provide ODA capital directly for the state budget, central budget or budgets of provinces, cities or districts to support the attainment of socio-economic development objectives in a plan period, comply with the budget law and regulations of Vietnam on budgeting; budget implementation; supervision, monitoring and evaluation of the process of budget implementation.
Budget support includes:
- General budget support (GBS): One donor or a group of donors provides ODA capital for the central budget, local budgets or a branch’s budget.
- Target budget support (TBS): One donor or a group of donors provides ODA capital for the budget of a specific target program.
b/ Pooling fund: One donor or a group of donors agrees to contribute ODA capital to a common fund to finance the implementation of a specific program or domain.
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d/ Sector loan: A donor provides ODA loans for the implementation of projects in order to support the development of a branch or domain with many different beneficiary units and on a large area. Sector loans are a type of umbrella program or project.
ODA MOBILIZATION AND PREPARATION OF ODA-CALLING LISTS
I. COORDINATION IN ODA MOBILIZATION STIPULATED IN ARTICLE 6 OF THE REGULATION IS GUIDED AS FOLLOWS:
1. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with concerned Vietnamese agencies, the World Bank and other donors in, preparing agendas for and organizing CG conferences for Vietnam, including informal mid-term CG conferences and formal annual CG conferences; and assume the prime responsibility for Vietnam’s participation in international forums on ODA for Vietnam.
Within 10 working days from the closing date of a conference or forum, the Ministry of Planning and Investment shall send a report to the Prime Minister on the results of the conference or forum and publicize its outcomes and documents on the Ministry’s website and the mass media.
2. If managing agencies intend to mobilize ODA on the occasion of high-ranking Party and State visits or negotiations, they shall coordinate with the Ministry of Planning and Investment in suggesting ODA mobilization contents before submitting them to the Prime Minister for consideration and decision on their inclusion in the working or negotiation agendas with other countries and donors.
3. Ministerial-level agencies, branches and provincial-level People’s Committees shall assume the prime responsibility for organizing ODA mobilization meetings for their respective branches, domains or localities in accordance with current regulations on organization of international conferences and seminars.
In the course of preparing and organizing ODA mobilization conferences for their respective branches, domains or localities, organizing agencies at different levels shall work with the Ministry of Planning and Investment on relevant issues such as guidelines and policies on ODA mobilization for branches, domains or localities; share necessary information on funding sources and conditions as well as funding process and procedures so as to ensure that ODA mobilization activities are in line with general guidelines and polices, practical and highly effective.
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4. When wishing to organize an inter-branch, inter-regional or inter-local ODA mobilization conference or receiving a joint proposal of provinces and cities in a region, several regions or localities, the Ministry of Planning and Investment or another agency as decided by the Prime Minister shall assume the prime responsibility for organizing a regional, inter-regional or inter-local conference in accordance with current regulations on organization of international conferences and seminars.
Within 10 working days from the closing date of a conference, the Ministry of Planning and Investment or the organizing agency shall send a report on the outcomes of the conference to the Prime Minister and also to the provinces and cities participating in the conference and concerned agencies and branches. These reports shall be publicized on the websites of the Ministry of Planning and Investment and the mass media.
5. For the purpose of ODA mobilization work, the Ministry of Foreign Affairs or an overseas diplomatic mission of the Socialist Republic of Vietnam may request the Ministry of Planning and Investment to supply necessary information and documents on development cooperation in Vietnam and relevant donors; guidelines and policies of the Party and State on ODA attraction and use.
1. Step 1: Preparing for the formulation of ODA-calling lists with respect to each donor
Managing agencies and units seeking for ODA shall prepare and study the following relevant documents:
a/ Development plannings and plans of the State, branches, domains and localities; public investment programs; national target programs and branches’ and localities’ target programs; general documents on ODA; the strategic orientation on borrowing and repayment of foreign loans and the orientation on attraction and use of official development assistance in each period; and the system of use criteria for making a general list of ODA-calling projects;
b/ Information and documents on donors publicized by donors (donors’ financing policies and programs; donors’ financing programs and priority areas for Vietnam; and financing process and procedures). Such information and documents are available on the websites of the embassies or aid agencies and publications distributed by these agencies. Interested Vietnamese organizations and units may directly request the embassies or donors’ aid agencies in Vietnam to supply these documents;
c/ Information on the website of the Ministry of Planning and Investment covers ODA capital commitments, financing conditions and procedures; reports on results of negotiations on development cooperation with relevant donors; and medium-term financing programs already signed with donors.
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2. Step 2: Formulating detailed outlines of programs and projects and submitting them to managing agencies
On the basis of the information mentioned at step 1, units seeking for ODA shall take the initiative in formulating or shall formulate under the direction and instruction of managing agencies detailed outlines of programs and projects according to the contents specified at Point b, Clause 2, Article 7 of the Regulation and the form of detailed outline of a technical assistance project (Appendix 2a); the form of detailed outline of ODA-funded investment project (Appendix 2b); the form of detailed outline of ODA-funded program (Appendix 2c) or the form of detailed outline of program- or branch-approached ODA support (Appendix 2d) to this Circular (not printed herein).
For umbrella programs or projects, managing agencies shall put forward umbrella program or project proposals, and coordinate with managing agencies expected to participate in umbrella programs or projects in formulating their detailed outlines under the guidance in Appendix 2e to this Circular (not printed herein).
3. Step 3: Selecting programs and projects for inclusion in the ODA calling list
Managing agencies shall consider and select ODA programs and projects proposed by their attached units on the following bases:
a/ Proposed programs and projects must be in the domains prioritized for ODA use stipulated in Article 3 and have ODA mobilization grounds specified in Article 5 of the Regulation;
b/ Proposed programs and projects must conform with donors’ policies and capabilities;
c/ Proposed programs’ and projects’ detailed outlines meet the requirements prescribed in this Circular;
d/ Units proposing ODA programs or projects are capable of receiving, managing and implementing the programs or projects and exploiting and using the outcomes of completed programs or projects, if they are assigned to act as program or project owners.
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Within two months before the Ministry of Planning and Investment exchanges opinions or negotiates with each donor, the managing agency shall send to the Ministry of Planning and Investment a complete and valid dossier, consisting of the managing agency’s official written request for funding, briefly explaining the bases for proposing each program or project, enclosed with eight sets of the detailed outline of each program or project proposed to be funded with ODA in Vietnamese and English. For an umbrella program or project, the managing agency proposing the program or project shall also send written agreements of managing agencies expected to participate in the program or project.
5. Step 5: Synthesizing and submitting to the Prime Minister an ODA-calling list
After receiving complete and valid dossier sets of managing agencies proposing the inclusion of programs or projects in the ODA-calling list, the Ministry of Planning and Investment shall base itself on the domains prioritized for ODA use specified in Article 3, the bases for ODA mobilization specified in Article 5 of the Regulation, and the system of criteria used for drawing up an ODA-calling list specified in this Circular, collect opinions of state management agencies in charge of ODA and concerned agencies, and consult donors to draw up a ODA-calling list at the proposal of managing agencies.
When many localities seek for ODA in a certain domain but donors’ ODA capital available for this domain is limited, the Ministry of Planning and Investment may use the criteria system provided in Appendix 3 to this Circular to select one or some appropriate localities to participate in programs or projects.
At least one month before exchanging opinions or negotiating with donors, the Ministry of Planning and Investment shall submit to the Prime Minister ODA-calling lists with respect to each donor enclosed with the detailed outline of each program and project. If opinions remain divergent on the contents of programs and projects, the Ministry of Planning and Investment shall review all opinions, propose solutions and report them to the Prime Minister for consideration and decision.
For other cases, the drawing up of an ODA-calling list is guided as follows:
- For a donor that has no program on regular provision of ODA for Vietnam or has no schedule on annual or periodical negotiations on development cooperation programs, managing agencies and their attached units seeking for ODA from this donor shall take the initiative in obtaining information and documents on the donor and base themselves on the guidance in this Circular to prepare detailed outlines for programs or projects calling for financial assistance. Then, managing agencies shall send to the Ministry of Planning and Investment written requests for inclusion of programs or projects in the ODA-calling list, enclosed with the detailed outline of each program or project as guided at Point 4 of this Section.
Basing itself on each specific case and the results of exchange of opinions with the donor and the guidance in this Circular, the Ministry of Planning and Investment shall make and submit to the Prime Minister an ODA-calling list.
- When a donor proposes and reaches agreement with a managing agency or its attached unit on financing a program or project not on the ODA-calling list already approved by the Prime Minister, the managing agency shall send to the Ministry of Planning and Investment a written explanation together with the detailed outline of the program or project already drawn up under the guidance of this Circular. The Ministry of Planning and Investment shall consult concerned agencies before submitting to the Prime Minister for permission the additional inclusion of this program or project in the official financing list.
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- For other arising cases, the Ministry of Planning and Investment shall report them to the Prime Minister for consideration and decision.
Within five working days from the date the Ministry of Planning and Investment submits to the Prime Minister an ODA-calling list, the Ministry of Planning and Investment shall send official letters informing the reasons for non-inclusion of programs and projects in the ODA-calling list to managing agencies.
6. Step 6: Notifying the ODA-calling list
Within five working days from the date of receiving the Prime Minister’s decision approving the ODA-calling lists with respect to each particular donor, the Ministry of Planning and Investment shall officially notify in the form of notes the donors of the ODA-calling list enclosed with the detailed outline of each program or project; and at the same time send official letters notifying managing agencies of programs and projects disapproved by the Prime Minister.
7. Step 7: Notifying the official financing list
Within five working days from the date of receiving the donors’ official documents notifying their acceptance to provide ODA for programs and projects on the ODA-calling list already approved by the Prime Minister or according to documents signed with the donors on the results of annual or periodical negotiations on development cooperation already approved by the Prime Minister, the Ministry of Planning and Investment shall notify in writing managing agencies of programs and projects included in the official financing list and those disapproved by the donors.
Prime Minister decisions approving the ODA-calling list and Ministry of Planning and Investment notifications on the official financing list serve as a legal basis for formulating program and project documents and carrying out other preparatory jobs.
PREPARATION, APPRAISAL AND APPROVAL OF CONTENTS OF ODA PROGRAMS AND PROJECTS
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Within five working days from the date of receiving a written notification of the Ministry of Planning and Investment on the official financing list, managing agencies shall issue decisions on program or project owners in accordance with Clause 16, Article 4 and Points a and b, Clause 1, Article 10 of the Regulation.
1. For important national investment programs and projects falling under the investment-deciding competence of the Prime Minister stipulated at Point a, Clause 1, Article 19 of the Regulation, the Prime Minister shall decide on their investors in investment decisions.
2. For technical assistance programs and projects falling under the approving competence of the Prime Minister stipulated at Point b, Clause 1, Article 19 of the Regulation, the Prime Minister shall decide on their owners in his/her decisions approving technical assistance programs or projects.
3. For technical assistance programs and projects falling under the approving competence of managing agencies stipulated in Clause 2, Article 19 of the Regulation, managing agencies shall directly manage and direct, or assign their attached units to act as project owners directly managing and directing, the implementation of these programs or projects.
4. For investment programs or projects that are decided by the heads of managing agencies stipulated in Clause 2, Article 19 of the Regulation, investment decision issuers shall assign units in charge of managing and using works to act as investors.
If at the time of issuance of an investment decision the managing agency cannot yet identify a unit in charge of managing, exploiting or using the work, it shall select a qualified unit to act as investor. In the course of implementing a program or project, the managing agency shall identify or set up a unit in charge of managing and using the work and assign this unit to join the investor in testing and taking over the work before putting it to operation and use according to current regulations.
If the unit in charge of managing, operating and using the investment program or project fails to meet all conditions specified at Point a, Clause 1, Article 10 of the Regulation to act as investor, the managing agency shall select a qualified unit as investor. The investor shall appoint a staff of the unit in charge of managing and using the work to an appropriate position to participate in managing the process of preparation and implementation of the program or project. At the same time, this staff shall, together with the investor, join in testing the work before taking over and putting it to use. If the investor sets up a project management unit, a deputy head of the unit must be a staff of the unit in charge of managing and using the work.
If a program or project belongs to a managing agency and consists of various multi-sector components to be implemented and benefited from by its attached units, the managing agency shall select a qualified unit from these units to as a program or project owner. The program or project owner shall set up a project management unit consisting of members who come from the units implementing and benefiting from the program’s or project’s components.
5. For umbrella programs or projects falling under the approving competence of managing agencies:
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- Managing agencies of component projects shall issue decisions on owners of component projects.
Within five working days from the date of issuance of decisions on program or project guidelines, managing agencies shall officially notify them to the Ministry of Planning and Investment and relevant donors.
1. Project owners shall coordinate with donors and owners of component projects (for umbrella programs or projects) in organizing the formulation of ODA program or project documents up to required quality and according to schedule.
2. The structure and contents of documents of technical assistance projects, ODA-funded programs and umbrella programs or projects must comply with the forms provided in Appendices 4a, 4b and 4c to this Circular (not printed herein).
Documents of ODA-funded investment projects must be formulated according to current regulations on investment and construction management, taking into account requirements stated in Article 13 of the Regulation.
3. If applying the program- or branch-based approach, managing agencies shall coordinate with donors and concerned agencies in formulating appropriate support documents.
1. Appraisal and approval of ODA-funded technical assistance projects
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In order to ensure the quality of appraisal toward sustainability and professionalization, managing agencies should identify an attached unit specializing in appraising technical assistance programs and projects.
Pending the identification of a unit specializing in appraising technical assistance programs and projects, depending on each specific case and the contents of technical assistance projects, the managing agency shall appoint an attached unit with relevant professional capacity to appraise specific technical assistance projects.
Project owners may not appraise their technical assistance projects.
For technical assistance projects falling under the approving competence of the Prime Minister, the Prime Minister shall decide on agencies in charge of appraisal at the proposal of the Ministry of Planning and Investment.
b/ Contents of appraisal
Appraisal of an ODA-funded technical assistance project must clarify the following issues:
- Rationality of the project in terms of:
+ Development objectives compared with the Government’s priorities, principles and policies of the donor, compared with the objectives identified in the detailed outline and the official financing list;
+ Direct objectives, impacts of the project implementation on the specific development objectives of the ministry, branch and locality, and the unit implementing and benefiting from the project;
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+ Each project component, output products of each component and activities of creating these output products;
+ The budget allocation structure of the project, consisting of ODA capital and contributed domestic capital set aside for domestic and foreign consultants, local and overseas training, equipment and supplies, management expenses and other expenses;
+ Project implementation indicators.
- Feasibility of the project in terms of:
+ Input factors (funding, equipment, experts and other factors) of the whole project;
+ Objectives, outcomes, activities and input requirements for each activity and method of organization of implementation;
+ Implementation duration;
+ Mechanisms of management and organization of implementation (including financial management mechanisms and coordination mechanisms);
+ Impacts of the project from direct beneficiaries to indirect beneficiaries;
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+ Measures to monitor, evaluate and promote the project implementation (tasks and responsibilities of implementing and coordinating units; mechanism for sharing and updating project management information; mechanism for project evaluation and reporting evaluation results; measures to attract beneficiaries’ concern and participation);
+ The Vietnamese party’s ability to contribute domestic capital.
- Sustainability of the project in terms of:
+ Necessary factors that ensure the impacts of the project upon completion;
+ Commitments or conditions that may be set by the donor and Vietnamese party to ensure the project’s sustainability.
c/ Appraisal time frame
Within 15 working days from the date of receipt of complete and valid dossiers as stipulated in Clauses 1 thru 4, Article 17 of the Regulation.
d/ Appraisal process
- Step 1: Assessing the validity of the dossier for appraisal
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+ Comparing and matching the contents of the project document with six contents of the Prime Minister’s decision approving the ODA-calling list stipulated in Article 8 of the Regulation;
+ If the project document contains changes compared with the contents of the Prime Minister’s decision approving the ODA-calling list in the project title and donor; managing agency; project objectives and outcomes; project implementation duration; increase or change of type of ODA capital (non-refundable and loan); or change of the domestic source and financial mechanism regarding ODA capital, the agency in charge of appraisal shall report them to the managing agency for the latter to consult the Ministry of Planning and Investment, the Ministry of Finance and other concerned agencies on these changes and submit them to the Prime Minister for consideration and decision. On the basis of the Prime Minister’s opinion, the managing agency shall direct the project owner to revise the project document and assign the agency in charge of appraisal to appraise the project following the steps from 2 to 4 below.
- Step 2: Consulting concerned agencies
After receiving eight valid dossier sets from the project owner, the agency in charge of appraisal shall send through the managing agency these dossier sets enclosed with a written request for opinions to the Ministry of Planning and Investment, the Ministry of Finance and concerned agencies, units and localities on the contents of the technical assistance project subject to appraisal.
- Step 3: Appraisal
The agency in charge of appraisal selects either of the following forms of appraisal:
+ Form 1: Reviewing appraisal opinions
This form applies to technical assistance projects with clear contents consistent with the project’s detailed outline enclosed with the ODA-calling list already approved by the Prime Minister and receiving the consent of agencies consulted on the project document contents. In this case, the agency in charge of appraisal proceeds with the following steps:
For projects falling under the deciding competence of the Prime Minister: The agency in charge of appraisal shall prepare a report on appraisal results enclosed with an appraisal record made according to a form provided in Appendix 5 to this Circular (not printed herein) for the managing agency to submit the project document to the Prime Minister for approval.
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If the dossier of the project document is incomplete, the agency in charge of appraisal shall request the project owner to supplement, revise and complete the dossier, then proceed with the above steps.
+ Form 2: Organizing appraisal meetings
If unable to apply form 1, the agency in charge of appraisal shall appoint a chairperson and a secretary before organizing an appraisal meeting.
If the appraisal meeting reaches a conclusion adopting the project document, the agency in charge of appraisal shall take the following steps:
For projects falling under the deciding competence of the Prime Minister: The agency in charge of appraisal shall prepare a report on appraisal results enclosed with an appraisal record made according to a form provided in Appendix 5 to this Circular for the managing agency to submit the project document to the Prime Minister for approval.
For projects falling under the deciding competence of managing agencies: The agency in charge of appraisal shall prepare a report on appraisal results enclosed with an appraisal record made according to a form provided in Appendix 5 and a draft decision approving the project document contents, made according to a form provided in Appendix 6 to this Circular for the managing agency to approve the project document.
If the dossier of the project document is incomplete, the agency in charge of appraisal shall request the project owner to supplement, revise and complete the dossier, then proceed with the above steps.
- Step 4: Notifying the approval result
Within 10 working days from the date the Prime Minister (for projects falling under the approving competence of the Prime Minister) or the head of the managing agency (for projects falling under the approving competence of the managing agency) approves the project document, the managing agency shall notify the donor and project owner of the approval, and at the same time send to the Ministry of Planning and Investment and the Ministry of Finance the appraisal report and the approval decision (originals or notarized copies) enclosed with the approved project document in Vietnamese and English, which has been appended with the managing agency’s seal on the inner edges of every two adjoining pages.
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2. Appraisal and approval of ODA-funded investment projects
a/ Identification of an agency in charge of appraisal
The identification of an agency in charge of appraisal of ODA-funded investment projects complies with current regulations on work investment and construction management.
b/ Contents of appraisal
Apart from the contents prescribed in legal documents on investment and construction management, in the process of appraisal, attention should be paid to the following points:
- Project objectives: Comparing the project objectives identified in the detailed outline and with those indicated in the official financing list;
- Domestic financial mechanism applicable to ODA projects;
- Total investment amount of the project, in which ODA capital must be compared with the total investment amount and ODA capital already determined in the detailed outline and the official financing list;
- The Vietnamese party’s possible contributions, especially contributed capital, taking into account the donor’s disbursement regulations and Vietnam’s process of making and approving budget plans;
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- Risks and risk prevention measures;
- Reasonableness of the project implementation management method in the aspects of the investor’s project implementation and management capacity and coordination mechanism in the implementation process.
c/ Appraisal time frame
Within 45 working days from the date of receipt of complete and valid dossiers under Article 17 of the Regulation.
d/ Appraisal process
The process of appraisal of ODA-funded investment projects complies with current regulations on investment and construction management, with attention paid to the following contents:
- Assessing the validity of a dossier for appraisal in accordance with Article 17 of the Regulation;
- Comparing and matching the contents of the project document with six contents of the Prime Minister’s decision approving the ODA-calling list stipulated in Article 8 of the Regulation. If detecting that the project document contains changes compared with the contents of the Prime Minister’s decision approving the ODA-calling list in the project title and donor; managing agency; project objectives and outcomes; project implementation duration; increase or change of type of ODA capital (non-refundable and loan); or change of the domestic source and financial mechanism regarding ODA capital, the agency in charge of appraisal shall report them to the managing agency for the latter to consult the Ministry of Planning and Investment, the Ministry of Finance and other concerned agencies on these changes and submit them to the Prime Minister for consideration and decision. On the basis of the Prime Minister’s opinion, the managing agency shall direct the project owner to revise the project document and assign the agency in charge of appraisal to appraise the project according to the process guided at this Point.
- If the donor organizes a field appraisal team, the investor shall organize and arrange necessary conditions for the agency in charge of appraisal to appoint a representative to join the field appraisal.
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e/ Notification of investment decisions and sending of investment project documents
Within 10 working days from the date the Prime Minister (for projects falling under the approving competence of the Prime Minister) or the head of the managing agency (for projects falling under the approving competence of the managing agency) issues an investment decision, the managing agency shall notify in writing the donor and project owner of the decision, and at the same time send to the Ministry of Planning and Investment and the Ministry of Finance the appraisal report and the investment decision (originals or notarized copies) enclosed with the approved investment project document in Vietnamese and English, which has been appended with the managing agency’s seal on the inner edges of every two adjoining pages.
3. Appraisal and approval of umbrella programs and projects
a/ Identification of an agency in charge of appraisal
The issuer of the decision approving the umbrella program or project document shall appoint an attached unit in charge of appraisal or set up an appraisal council headed by his/her representative and consisting of representatives of managing agencies of component projects.
b/ Contents of appraisal
On the basis of the principal contents stipulated in Article 15 of the Regulation, in the course of appraisal, the following issues should be clarified:
- The overall framework of the umbrella program or project, covering the general objectives of the umbrella program or project and the objectives of component projects, and relationships between component projects;
- Major activities of the umbrella program or project and component projects and their relationships in the implementation process, including their implementation durations;
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- Method of organizing the implementation and management of the umbrella program or project:
+ Necessity to set up a steering committee (if any); its structure and operation mechanism;
+ Tasks, powers and responsibilities of the managing agency of the umbrella program or project and managing agencies of component projects;
+ Organization of the umbrella program or project management unit and component project management units under the provisions of Circular 03/2007/TT-BKH of March 12, 2007, of the Ministry of Planning and Investment;
+ Relationships, responsibilities and duties divided between the umbrella program or project owner and component project owners; between the umbrella program or project management unit and component project management units.
c/ Appraisal time frame
Within 45 working days from the date the program-managing agencies receive complete and valid dossiers as stipulated in Article 17 of the Regulation.
d/ Process of appraisal
- Step 1: Assessing the validity of a dossier for appraisal
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+ Comparing and matching the contents of the umbrella program or project document with six contents of the Prime Minister’s decision approving the ODA-calling list stipulated in Article 8 of the Regulation.
+ If detecting that the umbrella program or project document contains changes compared with the contents of the Prime Minister’s decision approving the ODA-calling list in the program or project title and donor; program- or project-managing agency; program or project objectives and outcomes; program or project implementation duration; increase or change of type of ODA capital (non-refundable and loan); or change of the domestic source and financial mechanism applicable to ODA capital, the agency in charge of appraisal or the appraisal council shall report them to the umbrella program or project-managing agency for the latter to consult the Ministry of Planning and Investment, the Ministry of Finance and other concerned agencies on these changes and submit them to the Prime Minister for decision. On the basis of the Prime Minister’s opinion, the umbrella program- or project-managing agency shall direct the umbrella program or project owner to revise the program or project document and assign the agency in charge of appraisal or the appraisal council to appraise the program or project following the steps from 2 to 4 guided at this Point.
- Step 2: Consulting concerned agencies
After receiving eight valid dossier sets from the umbrella program or project owner, the agency in charge of appraisal shall send through the umbrella program or project-managing agency these dossier sets enclosed with a written request for opinions (in case of collecting opinions) or participation in an appraisal meeting (in case of organizing an appraisal meeting) to the Ministry of Planning and Investment, the Ministry of Finance, representatives of component projects and concerned agencies, units and localities on the contents of the umbrella program or project to be appraised.
- Step 3: Appraisal
+ Form 1: Summing up appraisal opinions
This form applies to umbrella programs or projects with clear contents consistent with the programs’ or projects’ detailed outlines enclosed with the ODA-calling list already approved by the Prime Minister and receiving the consent of agencies consulted on the umbrella program or project document contents. In this case, the agency in charge of appraisal or the appraisal council proceeds with the following steps:
For programs or projects falling under the approving competence of the Prime Minister: The agency in charge of appraisal or the appraisal council shall prepare a report on appraisal results enclosed with an appraisal record made according to a form provided in Appendix 5 to this Circular for the umbrella program- or project-managing agency to submit the umbrella program or project document to the Prime Minister for approval.
For programs or projects falling under the approving competence of managing agencies: The agency in charge of appraisal or the appraisal council shall prepare a report on appraisal results enclosed with an appraisal record made according to a form provided in Appendix 5 and a draft decision approving the program or project document contents, made according to a form provided in Appendix 6 to this Circular, for the umbrella program or project-managing agency to approve the umbrella program or project document.
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+ Form 2: Organizing appraisal meetings
If unable to apply form 1, the agency in charge of appraisal or the appraisal council shall appoint a chairperson and a secretary for organizing an appraisal meeting.
If the donor organizes a field appraisal team, the umbrella program or project owner shall organize and arrange necessary conditions for the agency in charge of appraisal or the appraisal council to appoint a representative to join the field appraisal.
If the appraisal meeting reaches a conclusion adopting the umbrella program or project document, the agency in charge of appraisal or the appraisal council shall take the following steps:
For programs or projects falling under the approving competence of the Prime Minister: The agency in charge of appraisal or the appraisal council shall prepare a report on appraisal results enclosed with an appraisal record made according to a form provided in Appendix 5 to this Circular for the umbrella program- or project-managing agency to submit the umbrella program or project document to the Prime Minister for approval.
For programs or projects falling under the approving competence of managing agencies: The agency in charge of appraisal or the appraisal council shall prepare a report on appraisal results enclosed with an appraisal record made according to a form provided in Appendix 5 and a draft decision approving the project document contents, made according to a form provided in Appendix 6 to this Circular, for the umbrella program- or project-managing agency to approve the umbrella program or project document.
If the appraisal meeting requests revision and completion of the dossier of the program or project document, the agency in charge of appraisal or the appraisal council shall request the umbrella program or project owner to coordinate with component project owners in supplementing, revising and completing the program or project dossier pursuant to the appraisal meeting’s conclusions, then proceed with the above steps.
e/ Notifying approval decisions and sending umbrella program or project documents
Within 10 working days from the date the Prime Minister (for programs and projects falling under the approving competence of the Prime Minister) or the head of the umbrella program- or project-managing agency (for programs or projects falling under the approving competence of heads of program or project managing agencies) issues a decision approving the umbrella program or project, the umbrella program- or project-managing agency shall notify in writing the decision to the donor and umbrella program or project owner, and at the same time send to the Ministry of Planning and Investment and the Ministry of Finance the appraisal report and the approval decision (originals or notarized copies) enclosed with the approved umbrella program or project document in Vietnamese and English, which has been appended with the managing agency’s seal on the inner edges of every two adjoining pages. The umbrella program- or project-managing agency shall send copies of these documents to managing agencies of component projects.
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+ For technical assistance projects: They shall follow the process of appraisal and approval stipulated at Point 1, Section III of this Part.
+ For investment projects: They shall follow the process of appraisal and approval stipulated at Point 2, Section III of this Part.
4. Appraisal and approval of program or project-based assistance documents
The process of appraisal of program- or branch-based assistance documents is similar to the process of appraisal of umbrella programs or projects stipulated at Point 3, Section III of this Part.
Authorities issuing decisions approving branch or domain development programs, plannings and plans shall approve program- or branch-based assistance.
5. Appraisal and approval of regional programs and projects
Managing agencies are responsible for appraising and approving the Vietnamese side’s participation activities similar to other ODA programs or projects stipulated at Points 1, 2 and 3, Section III of this Part.
SIGNING OF SPECIFIC INTERNATIONAL AGREEMENTS ON ODA
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1. The Ministry of Planning and Investment shall submit to the Prime Minister the signing of specific international agreements on non-refundable ODA (excluding specific international agreements on ODA signed with international financial institutions specified in Clause 1, Article 42 of the Regulation) for ODA programs and projects belonging to National Assembly agencies, central agencies of socio-political organizations or professional organizations, and People’s Committees of provinces and centrally run cities.
2. To discharge the above responsibility, according to regulations on the order and procedures for signing and implementing treaties pertaining to official development assistance sources, the Ministry of Planning and Investment shall submit to the Prime Minister:
a/ The negotiation and signing of specific international agreements on ODA on the basis of official written proposals of managing agencies mentioned at Point 1, Section II of this Part sent to the Ministry of Planning and Investment together with all necessary documents and the implementation according to schedule.
b/ The ratification or approval of specific international agreements on ODA of managing agencies mentioned at Point 1, Section II of this Part, for specific international agreements on ODA subject to ratification or approval, in order to carry out the formalities for the agreements to become effective.
c/ Plans for implementation of specific international agreements on ODA shall be made by managing agencies specified at Point 1, Section II of this Part and sent to the Ministry of Planning and Investment.
3. If authorized by the Prime Minister, managing agencies specified at Point 1, Section II of this Part shall formulate and sign international agreements on ODA according to current regulations.
In the course of implementing specific international agreements on ODA, if any adjustments, amendments and supplements stated at Point a, Clause 1, Article 31 of the Regulation are needed, agencies proposing the signing of specific international agreements on ODA shall collect written opinions of the Ministry of Planning and Investment and concerned agencies before submitting these adjustments, amendments and supplements to the Prime Minister for consideration and decision according to current relevant regulations.
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MANAGEMENT OF IMPLEMENTATION OF ODA PROGRAMS AND PROJECTS
The order of establishment, organizational structure, functions, tasks and powers of ODA project management units, responsibility relationships between project management units and project owners, managing agencies and state management agencies are stipulated in Circular 03/2007/TT-BKH of March 12, 2007, of the Ministry of Planning and Investment on the organizational structure, functions, tasks and powers of ODA project management units.
For umbrella programs or projects, on the basis of umbrella programs or project documents already approved by competent authorities:
- Umbrella program or project owners shall establish umbrella program or project management units cum management units of component projects under their management (if any).
- Component project owners shall set up component project management units after reaching agreement with umbrella program or project owners on the organizational structure, functions, tasks, responsibilities and powers of these management units with respect to umbrella programs or projects and component projects.
1. Reviewing, updating and approving program or project implementation plans
a/ Immediately after setting up project management units, managing agencies and project owners shall direct the project management units to coordinate with donors in reviewing, updating and adjusting (if necessary) master plans on ODA program or project implementation and making detailed implementation plans for the first year.
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- Milestones of time (commencement and completion) for items, outputs and major activities of the program or project and for the whole program or project;
- Work volume to be performed in each stage, including jobs which can be started before the specific international agreement on ODA enters into force;
- Volumes of input resources required for each item, output and activity in each stage, including jobs which can be started before the specific international agreement on ODA enters into force.
In reviewing and updating the master plan on program or project implementation, if only adjusting implementation schedules (commencement and completion time) of items, outputs and activities of the program or project without modifying the program or project completion time specified in the program or project document, the managing agency shall issue a decision approving the master plan on program or project implementation.
2. Within five working days from the date of approval of the master plan on program or project implementation, the managing agency shall send the approval decision (original) to the Ministry of Planning and Investment, the Ministry of Finance and the donor as a basis for monitoring and evaluating the program or project implementation process.
3. On the basis of the updated master plan on program or project implementation approved by the managing agency, the project owner shall approve detailed ODA program or project implementation plans for the first year and each subsequent year.
4. Annual ODA program or project implementation plans must be made and approved according to annual planning schedules of managing agencies.
Annual ODA program or project implementation plans serve as a basis for the allocation of resources for program or project activities and for quarterly planning work, management, monitoring, supervision, evaluation and reward of project management activities of project management units.
5. Project management units shall make disbursement plans according to Appendix 7 to this Circular (not printed herein). Project owners shall submit to managing agencies annual disbursement plans for sum-up and reporting under the guidance of the Ministry of Planning and Investment on making of annual plans.
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Project owners shall make compensation, ground clearance and resettlement plans for ODA programs or projects according to current regulations on compensation, ground clearance and resettlement.
Before approving program or project documents, if donors’ regulations on compensation, ground clearance and resettlement are different from Vietnam’s current regulations on compensation, ground clearance and resettlement, managing agencies shall submit the case to the Prime Minister for consideration and decision.
If a signed specific international agreement on ODA contains provisions on compensation, ground clearance and resettlement different from Vietnam’s current regulations on compensation, ground clearance and resettlement, the signed specific international agreement is complied with.
Agreed compensation and resettlement plans must be notified to relevant functional agencies and publicized among stakeholders.
IV. BIDDING STIPULATED IN ARTICLE 30 OF THE REGULATION IS GUIDED AS FOLLOWS:
Bidding for ODA programs and projects complies with current regulations on bidding.
Before approving program or project documents, if donors’ bidding regulations are different from Vietnam’s current bidding regulations, managing agencies shall submit the case to the Prime Minister for consideration and decision.
If a signed specific international agreement on ODA contains provisions on bidding different from Vietnam’s current bidding, the signed specific international agreement is complied with.
In this case, project owners shall direct project management units to coordinate with donors to integrate donors’ appraisal process, procedures and duration into the procedures for submission, appraisal and approval of contents on the bidding plan and contractor selection result according to Vietnam’s current regulations. This integration process must be publicly announced to parties involved in bidding activities.
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1. With respect to changes in the domestic financial mechanism or re-lending conditions stipulated at Point b, Clause 1 of Article 31, project owners shall report them to managing agencies for the latter to reach agreement with the Ministry of Planning and Investment and the Ministry of Finance before submitting them to the Prime Minister for consideration and decision.
2. With respect to the surplus capital amount resulted from changes in exchange rate, interest rate, unallocated reserve capital and other surplus capital amounts arising in the process of implementation stipulated at Point b, Clause 2 of Article 31, managing agencies shall negotiate with the Ministry of Planning and Investment, the Ministry of Finance and the donor to decide on the use of these surplus capital amounts within the framework of the programs or projects, and proceed with using them according to current regulations.
3. With respect to the surplus capital amount to be used for implementing a new program or project stipulated at Point a, Clause 2 of Article 31, at the proposal of the managing agency, the Ministry of Planning and Investment shall submit this proposal to the Prime Minister for permission to use this surplus capital amount. After obtaining the Prime Minister’s permission, the managing agency shall appraise and approve the document of the new program or project and organize its implementation according to current regulations.
MONITORING AND EVALUATION OF ODA PROGRAMS AND PROJECTS
1. Requirements and objectives of monitoring ODA programs or projects:
a/ To ensure accurate, full and regular (daily, weekly, monthly and annual) update of information concerning the program and project implementation and management.
b/ To ensure timely identification of difficulties, problems and incidents that may affect the implementation progress, quality and costs of programs and projects.
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2. Program and project monitoring responsibilities and contents
a/ Project management units
Monitoring is part of day-to-day management work and a duty of project management units.
Monitoring at project management unit level:
- Monitoring and updating information on program and project implementation, covering:
+ Project implementation progress;
+ Implemented volumes;
+ Quality;
+ Cost;
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- Monitoring and updating information on project and program management, covering:
+ Making and concretization of program and project management plans;
+ Update of the implementation and adjustment of plans;
+ Update of the assurance of quality and effectiveness of program and project management;
- Monitoring and updating information on the processing of and response to feedback on programs and projects, covering:
+ Assurance of reported information;
+ Processing of reported information;
+ Settlement of difficulties and problems and its results.
b/ Project owners:
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- Arranging necessary resources to ensure monitoring work at project management units;
- Providing feedback and promptly handling issues falling within their competence in the course of program or project implementation;
- Reporting and proposing solutions to difficulties and problems and issues beyond the competence of project owners so that managing agencies can issue timely decisions to deal with problems in the program or project implementation.
c/ Managing agencies
For programs and projects falling under their management, managing agencies shall:
- Check the completeness, timeliness and accuracy of information on programs and projects supplied by project owners;
- Provide feedback and promptly handle issues falling within their competence;
- Supervise and monitor programs’ and projects’ changes compared with planned contents (implementation progress, disbursement, bidding, ground clearance, resettlement, environmental protection, and social welfare);
- Report on and propose solutions to difficulties and problems, and issues falling beyond their competence so that concerned agencies can issue timely decisions to deal with problems in the program or project implementation;
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- Ensure necessary resources (personnel, funding, material and technical facilities and other related issues) for program and project monitoring activities at managing agencies. Support and enhance project owners’ program and project monitoring capacity.
d/ State management agencies in charge of ODA
To monitor ODA programs and projects in relevant domains defined in Chapters VI and VII of the Regulation and report monitoring information to managing agencies and donors.
1. Requirements and objectives of the evaluation of each specific program or project:
a/ To compare the results achieved at the time of evaluation with the program or project implementation plan.
b/ To detect occurred or potential difficulties and problems in the program or project implementation.
c/ To evaluate the observance of principles and procedures for program and project management.
d/ To propose necessary measures to ensure that the program or project is implemented for proper objectives and in accordance with regulations on progress, scope, volume, quality and cost, and management principles and procedures.
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f/ To draw experience lessons for the subsequent stages of implementation of the evaluated program or project and/or for the implementation of other programs or projects.
2. Evaluation
In order to ensure the objectivity and transparency, evaluation must be conducted by independent experts or a group of independent experts and consultants who are hired according to current regulations and who possess adequate professional qualifications and necessary experience. Project owners shall coordinate with donors in determining the duration and funding for evaluation work immediately at the stage of designing program or project documents.
On a case-by-case basis and as agreed with donors, evaluation may be conducted in the following stages:
a/ Initial evaluation
Initial evaluation must be conducted immediately after a program or project is implemented.
The project owner may assign the project management unit or hire independent consultants to conduct initial evaluation.
Initial evaluation focuses on examining the actual situation of a program or project after it is started in the following aspects:
- The project management unit’s preparation for the implementation, organization and mobilization of resources to ensure the program or project implementation according to the set objectives and plan;
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- Solutions to encountered difficulties and problems;
- Issues arising due to objective factors such as changes in the legal environment, requirements for rescheduling or modification of some items to suit the climate and geological conditions or due to subjective factors such as capacity and organizational structure of the project management unit.
The findings of initial evaluation serve a basis for reviewing and updating the overall program or project implementation plan and elaborating a detailed program or project implementation plan for the first year.
b/ Mid-term evaluation
The project management unit may hire independent experts or a group of independent consultants to conduct mid-term evaluation in the middle of the program or project implementation duration or at the end of a stage of implementation of a multiple-staged program or project.
Mid-term evaluation focuses on:
- The relevance of the program or project implementation outcomes with the set objectives;
- Degree of completion of the program or project by the time of evaluation compared with the approved program or project implementation plan;
- Recommendations, including those on adjustment of the program or project design or objectives, if necessary;
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Within one month from the date of receipt of a mid-term evaluation report prepared by consultants, the project owner shall send to the managing agency and donor this report and the project owner’s feedback on this report, which analyzes the findings, issues and proposals presented in the evaluation report and clearly indicates measures to deal with problems, activities to be carried out in response to these proposals, and lessons learned from the program or project implementation.
Mid-term evaluation reports and feedback reports on programs and projects in which investment has been decided by the Prime Minister and on group-A programs and projects must be sent through managing agencies to the Ministry of Planning and Investment and the Ministry of Finance to serve supervision, monitoring and evaluation activities.
c/ Final evaluation
The project management unit shall hire independent experts or consultancy organizations to conduct final evaluation of the program or project immediately after the program or project is completed and this evaluation must be finished within six months from the date of completion of the program or project stated in the program or project document. Final evaluation focuses on comprehensively examining and evaluating the following aspects:
- Program or project design;
- Program or project implementation process;
- Program or project management activities;
- Results of achievement of program or project objectives;
- Resources already mobilized for the program or project;
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- Impacts of the program or project;
- Sustainability of the program or project and factors to ensure the sustainability of the program or project;
- Lessons learned from the program or project implementation process;
- Necessary recommendations.
Final evaluation report prepared by consultants and written comments of the project owners must be sent to the managing agency and donor.
Final evaluation report prepared by consultants serve as a reference for project management units and project owners to make program or project completion reports.
Final evaluation reports prepared by consultants on programs and projects in which investment has been decided by the Prime Minister and on group-A programs and projects must be sent to the Ministry of Planning and Investment and the Ministry of Finance to serve supervision, monitoring and evaluation activities.
d/ Impact assessment (post-project assessment)
The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with managing agencies and donors in, elaborating annual plans on impact assessment of ODA programs and projects.
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Impact evaluation shall be conducted within three years from the date a program or project is put to operation or use, focusing on the following major issues:
- Actual economic and technical operation of the program or project;
- Economic, political and social impacts of the program or project;
- Environmental and ecological impacts of the program or project;
- Sustainability of the program or project;
- Success and failure lessons from the program or project designing, implementation and operation stages.
Impact assessment reports on programs and projects in which investment has been decided by the Prime Minister and on group-A programs and projects must be sent to the Ministry of Planning and Investment and the Ministry of Finance to serve the management of investment portfolios and the formulation of investment strategies and policies.
e/ Extraordinary evaluation
Extraordinary evaluation is conducted when unexpected problems, difficulties and impacts arise in the course of program or project implementation.
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- The situation and nature of unexpectedly arising issues;
- Impacts and degree of impact of these arising issues on the program or project implementation and the possibility of attaining the set objectives;
- Intervention measures, agencies responsible for implementing these measures and time limit for taking these measures.
Extraordinary evaluation reports serve as a basis for managing agencies to undertake timely interventions and take necessary support measures to prevent the failure of programs or projects.
If the managing agency finds that handling measures fall beyond its competence, it shall send a document enclosed with an extraordinary evaluation report to concerned state management agencies or submit them to the Prime Minister for consideration and decision.
1. The system of reports on the implementation of ODA programs and projects consists of three levels:
a/ Program and project owner level (referred to as program and project level for short): Project owners shall report on the implementation of ODA programs or projects to managing agencies, the Ministry of Planning and Investment, the Ministry of Finance, concerned ministries and branches and provincial-level People’s Committees of localities where programs or projects are implemented, and donors.
b/ Managing agency level: Managing agencies shall make general reports on ODA mobilization results and evaluation of the implementation of ODA programs or projects, and send them to the Ministry of Planning and Investment and the Ministry of Finance.
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2. Reporting regime and forms: To comply with regulations and specific guidance in Decision 803/2007/QD-BKH of July 30, 2007, of the Minister of Planning and Investment, promulgating the regime of reporting on the implementation of ODA programs and projects.
a/ Project owners shall make monthly reports (on programs and projects falling under the approving competence of the Prime Minister and programs and projects equivalent to group-A ones), and quarterly and annual reports, and program or project completion reports.
b/ Managing agencies shall make quarterly reports.
c/ The Ministry of Planning and Investment and the Ministry of Finance shall make biannual and annual reports.
3. Reward regime:
The Ministry of Planning and Investment shall give appropriate rewards and incentives to agencies and units that have well observed the reporting regime in accordance with Decision 803/2007/QD-BKH of July 30, 2007, of the Minister of Planning and Investment, promulgating the regime of reporting on the implementation of ODA programs and projects.
4. Sanctions against violations of the reporting regimes:
The Ministry of Planning and Investment shall sanction violations of the reporting regime as follows:
a/ Irregular violations of the reporting regime: The Ministry of Planning and Investment shall send written requests to violating agencies for explanations about the causes of their violations and commitment to take remedies.
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c/ Prolonged systematic violations of the reporting regime: The Ministry of Planning and Investment shall report these cases to the Prime Minister and propose appropriate handling measures, including proposing the Prime Minister to disapprove ODA-calling programs or projects proposed by these agencies till their observance of the reporting regime is improved.
Managing agencies shall prescribe appropriate rewards as well as sanctions to ensure the observance of reporting regulations by project owners and project management units under their management.
ORGANIZATION OF IMPLEMENTATION
I. This Circular replaces Circular 06/2001/TT-BKH of September 20, 2001, guiding the implementation of the Regulation on management and use of official development assistance, promulgated together with the Government’s Decree 17/2001/ND-CP of May 4, 2001.
II. FOR ONGOING PROGRAMS AND PROJECTS:
1. For the contents of these programs and projects falling under the approving competence of the Prime Minister according to Decree 17/2001/ND-CP but now, according to Decree 131/2006/ND-CP, falling under the approving competence of heads of managing agencies, Decree 131/2006/ND-CP applies to issues related to the competence of agencies issuing decisions approving programs or projects.
2. Managing agencies shall review these programs’ and projects’ implementation plans so as to add the project monitoring and evaluation contents and ensure resources for the implementation of these contents.
III. This Circular takes effect 15 days after its publication in “CONG BAO.” In the course of implementation, any arising problems should be reported by concerned ministries, branches, localities and units to the Ministry of Planning and Investment for further addition and revision of this Circular.
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MINISTER OF PLANNING AND INVESTMENT
Vo Hong Phuc
- 1 Circular No. 06/2001/TT-BKH of September 20, 2001, guiding the implementation of the regulation on the management and use of official development assistance.
- 2 Circular No. 01/2014/TT-BKHDT dated January 09, 2014, guidelines Decree No. 38/2013/ND-CP on management and use of official development assistance (ODA) and concessional loans of donors
- 3 Circular No. 01/2014/TT-BKHDT dated January 09, 2014, guidelines Decree No. 38/2013/ND-CP on management and use of official development assistance (ODA) and concessional loans of donors
- 1 Decision No. 11/2008/QD-BYT of February 26, 2008, promulgating the regulation on management and use of Official Development Assistance (ODA) of the Health Ministry.
- 2 Decision No. 803/2007/QD-BKH of July 30, 2007, on issuance of reporting mechanism on implementation of ODA programs and projects
- 3 Circular No. 03/2007/TT-BKH of March 12, 2007, on guiding the organizational structure, functions and responsibilities of ODA program or project management units
- 4 Decree of Government No.131/2006/ND-CP of November 09, 2006 promulgating the regulation on management and use of official development assistance
- 5 Decree No. 61/2003/ND-CP of June 06, 2003, prescribing the functions, tasks, powers and organizational structure of the Ministry of Planning and Investment
- 6 Decree No. 17/2001/ND-CP of May 04, 2001 promulgated by The Government, issuing the regulation on the management and use of official development aid.