DECREE

PROMULGATING THE REGULATION ON MANAGEMENT AND USE OF OFFICIAL DEVELOPMENT ASSISTANCE

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the December 16, 2002 State Budget Law;
Pursuant to the May 24, 2005 Law on Conclusion, Accession to and Implementation of Treaties;
At the proposal of the Minister of Planning and Investment,

DECREES:

Article 1.- To promulgate together with this Decree the Regulation on management and use of official development assistance.

Article 2.- This Decree takes effect 15 days after its publication in "CONG BAO", and replaces the Government's Decree No. 17/2001/ND-CP of May 4, 2001, promulgating the Regulation on management and use of official development assistance.

Article 3.- The Minister of Planning and Investment, the Minister of Finance, the Minister of Foreign Affairs, the Minister of Justice and the Governor of the State Bank of Vietnam shall guide and inspect the implementation of this Decree.

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ON BEHALF OF THE GOVERNMENT
PRIME MINISTER




Nguyen Tan Dung

REGULATION

ON MANAGEMENT AND USE OF OFFICIAL DEVELOPMENT ASSISTANCE
(Issued together with the Government's Decree No. 131/2006/ND-CP of November 9, 2006)

Chapter I

GENERAL PROVISIONS

Article 1.- Scope of regulation

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Official development assistance (hereinafter abbreviated to ODA) in this Regulation is understood as development cooperation between the State or the Government of the Socialist Republic of Vietnam and donors which are foreign governments, bilateral financing organizations and inter-state or inter-governmental organizations.

2. Forms of ODA provision include:

a/ Provision of non-refundable ODA, which means the provision of ODA which is not refundable to the donor;

b/ Provision of concessional ODA loans (also referred to as concessional credit), which means the provision of loans under concessional conditions on interest rates, grace periods and repayment durations with the non-refundable element (also referred to as "assistance element") accounting for at least 35 per cent of the value of binding loans or for at least 25% of the value of non-binding loans;

c/ Provision of mixed ODA loans, which means the provision of non-refundable loans or concessional loans together with commercial credits with the non-refundable element accounting for at least 35 per cent of the value of binding loans or for at least 25% of the value of non-binding loans.

3. Basic modes of ODA provision include:

a/ Support for project;

b/ Support for branches;

c/ Support for programs;

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4. Domestic financial mechanisms applicable to the use of ODA:

a/ Allocation from the state budget;

b/ Re-lending from the state budget;

c/ Partial allocation and partial re-lending from the state budget.

Article 2.- Basic principles in management and use of ODA

1. ODA constitutes an important source of the state budget and is used to support the implementation of priority socio-economic development programs and projects of the Government.

2. The Government performs the uniform state management of ODA on the basis of democratic centralism, publicity, transparency, responsibility assignment and decentralization, combination of power with responsibility, ensures coordinated management and close inspection and supervision and promotes the initiative of all levels, branch-managing agencies, localities and implementing units.

3. The attraction of ODA is associated with the improvement of the efficiency of ODA use and the assurance of the repayment of foreign debts and is compatible with the ODA receipt and use capacity of ministries, branches, localities and implementing units.

4. The uniformity and consistency of regulations on management and use of ODA, the wide participation of concerned parties and the harmony between the Government's and donors' procedures are ensured.

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Article 3.- Priority domains for ODA use

ODA capital shall be used for programs and projects in the following priority domains:

1. Agricultural and rural development (including agriculture, irrigation, forestry and aquaculture) in combination with hunger elimination and poverty alleviation.

2. Construction of synchronous and modernity-oriented economic infrastructure;

3. Construction of social infrastructure (in health, education and training, population and development and some other domains);

4. Protection of the environment and natural resources;

5. Enhancement of institutional capacity and development of human resources; technology transfer and improvement of research and development capacity.

6. Other domains as decided by the Prime Minister.

Article 4.- Interpretation of terms

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1. "Process of ODA management and use" means activities with the following specific steps:

a/ Formulation of lists of ODA programs and projects (hereinafter referred to as programs and projects for short) calling for financial support from each donor;

b/ Preparation of programs and projects, including signing of programs and projects;

c/ Implementation of programs and projects;

d/ Monitoring and evaluation of programs and projects (including post-program or -project evaluation); pre-acceptance test, financial settlement and hand-over of the implementation outcomes of programs and projects.

2. "ODA calling list" means a list of programs and projects summed up by the Ministry of Planning and Investment from the lists of programs and projects calling for ODA prepared by concerned agencies, which is approved by the Prime Minister under Article 8 of this Regulation and serves as a basis for the mobilization of ODA from each donor.

3. "Official financing list" means an ODA calling list that has been approved in principle by donors to provide ODA for programs and projects on the list.

4. "Project" means a combination of interrelated activities aiming to achieve one or several specified objectives and carried out in a given geographical area and within a given period of time on the basis of certain resources. Projects include investment projects and technical support projects.

5. "Investment project" means a project to create, expand or renovate certain physical bases in order to achieve a quantitative growth or to maintain, improve and raise the quality of products or services and to be carried out in a given geographical area and within a given period of time. Investment projects are of two types below:

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b/ Other investment projects, which are other than construction investment projects.

6. "Technical assistance project" means a project targeting at supporting institutional and capacity development or supplying technical input factors to prepare and implement investment programs or projects through activities of supplying experts, providing training, supporting equipment, data and records and organizing field visits and seminars.

7. "Important national project" means a project in which investment is approved and decided by the National Assembly in accordance with current law.

8. "Program or project associated with a policy framework" means a program or project involving policies and measures to reform the macro economy, a branch or domain which the Government of the Socialist Republic of Vietnam commits to implement according to a given roadmap with the financial and/or technical assistance of a donor.

9. "Program" means a combination of interrelated activities or projects which may relate to one or many different economic and technical branches, different geographical areas and different subjects, aim to achieve one or several specified objectives over a relatively long period or through many stages, and are carried out with resources possibly mobilized from different sources, at different points of time and by different modes.

10. "Program- or branch-based approach" means a mode of ODA provision whereby donors base themselves on the development program of a branch or domain to provide coordinated support to ensure the sustainable and effective development of that branch or domain.

11. "Budget support" means a mode of ODA provision whereby ODA loans are not connected to one or several specific projects but are transferred directly into the budget of the Socialist Republic of Vietnam, are managed and used according to regulations and budget procedures of Vietnam.

12. "Non-binding loan or non-refundable aid" means ODA loan or non-refundable ODA without accompanying conditions related to the supply and procurement of goods and services.

13. "Binding loan or non-refundable aid" means ODA loan or non-refundable ODA with accompanying conditions related to the supply and procurement of goods and services from certain suppliers or states designated by donors.

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a/ "Framework international agreement on ODA," which means an international agreement on ODA expressing commitments on general principles and conditions for development cooperation and containing contents on the strategy, policies, development cooperation framework, priority orientations in the ODA provision and use; domains, ODA programs or projects approved to be financed; ODA framework conditions and commitments for programs or projects for one or many years; principles regarding procedures and plans for the management and implementation of programs or projects.

b/"Specific international agreement on ODA," which means an international agreement on ODA expressing commitments on financing a specific program or project or supporting the budget and containing major contents on objectives, activities and outcomes to be achieved, implementation plan, financing conditions, capital, capital structure, obligations, powers and responsibilities of each party, principles and standards to be complied with in the program or project management and implementation, and disbursement and payment conditions of loans for the program or project.

14. "ODA program or project-managing agencies" (investment deciders for investment projects or approval deciders for technical assistance projects) means ministries, ministerial-level agencies, government-attached agencies, central agencies of socio-political organizations, professional organizations, National Assembly agencies, the Supreme People's Court, the Supreme People's Procuracy and People's Committees of provinces or centrally run cities (hereinafter referred to as provincial-level People's Committees for short) having ODA programs or projects.

16. "ODA program or project owners" (investors for investment programs or projects or project owners for technical assistance programs or projects, hereinafter collectively referred to as project owners) means units assigned by the Prime Minister or managing agencies mentioned in Clause 15 of this Article the responsibility to directly manage and use the sources of ODA capital and domestic contributed capital for implementing programs or projects according to the contents approved by competent authorities, and to manage and use related works after the completion of programs or projects.

17. "Domestic contributed capital" means contributions made by the Vietnamese party in kind and value for preparing and implementing ODA programs or projects as specified in Article 26 of this Regulation.

Chapter II

ODA MOBILIZATION, SIGNING OF FRAMEWORK INTERNATIONAL AGREEMENTS ON ODA

Article 5.- Bases for ODA mobilization

ODA mobilization is carried out on the following bases:

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2. National, branch, regional and local five-year and annual socio-economic development plannings and plans.

3. The comprehensive strategy on growth, hunger elimination and poverty alleviation.

4. The national strategy for borrowing and repayment of foreign debts and the national program on management of medium-term debts.

5. The orientation for ODA attraction and use.

6. Public investment programs; national target programs and target programs of branches and localities.

7. Strategies and programs on development cooperation between Vietnam and donors.

Article 6.- Coordination in ODA mobilization

1. The Ministry of Planning and Investment shall be the sole agency assisting the Government in making preparations for CG conferences and international forums on ODA for Vietnam. Ministerial-level agencies and branches shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment in, preparing and organizing ODA coordination meetings for their respective branches. Provincial-level People's Committees shall assume the prime responsibility for organizing ODA mobilization meetings for their respective localities under the guidance of the Ministry of Planning and Investment. Inter-branch, inter-regional and inter-local ODA mobilization conferences shall be chaired by the Ministry of Planning and Investment or another agency as decided by the Prime Minister.

2. Overseas diplomatic missions of the Socialist Republic of Vietnam shall coordinate with the Ministry of Planning and Investment and the Ministry of Foreign Affairs in mobilizing ODA in the host countries or international organizations in accordance with the provisions of Article 5 of this Regulation.

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1. The ODA calling list covers programs and projects selected and arranged in the priority order for calling ODA from each specific donor.

2. An ODA calling list is formulated through the following steps:

a/ The managing agency takes the initiative in formulating an ODA calling list in accordance with the provisions of Article 5 of this Regulation and takes into account:

- The support demands of the domain under its management; the ODA receipt and management capacity of the managing agency and project owners expected to be assigned ODA programs or projects for implementation; the system of priority criteria for allocation and use of ODA for each domain and locality promulgated by the Ministry of Planning and Investment;

- ODA policies and commitments and financing conditions; the list of programs and projects included in the report on the results of annual negotiations with related donors; the medium-term financing programs of several donors; and the donors' timetables for financing consideration publicized by the Ministry of Planning and Investment.

b/ The managing agency sends to the Ministry of Planning and Investment the ODA calling list together with the detailed outline of each program and project with the following principal contents:

- The background and necessity of the program or project within the development planning and plan of the beneficiary branch, locality or unit;

- A report on similar programs or projects which have been, are being and are prepared to be implemented in the domain under the management of the managing agency, including an evaluation of the previously implemented programs and projects;

- The objectives, scope and location of implementation of the program or project;

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- Contents of major components, items and activities of the program or project;

- Preliminary analysis and selection of technical assistance plan, the construction plan and the technology plan (if any);

- Preliminary analysis of the feasibility of the program or project (regarding economic, financial, technological aspects and implementation capacity);

- Proposed domestic financial mechanism of the program or project; proposed ODA provision mode as appropriate;

- Preliminary analysis of direct benefits for the implementing unit and economic, environmental and social impacts of the program or project on the branch, domain and locality;

- Capabilities of the project owner expected to be assigned the program or project for implementation, including its financial capability (for programs or projects funded with re-lent loans, an explanation of the debt repayment capability and plan of the program or project owner is also required);

- Estimated total fund for the program or project implementation, including ODA capital, source and form of supply of domestic contributed capital;

- Expected time of commencement and termination of the program or project;

- Sustainability of the program or project after it is completed.

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d/ The Ministry of Planning and Investment submits to the Prime Minister for approval the ODA calling list with the contents stipulated in Article 8 of this Regulation.

After obtaining the approval decision of the Prime Minister, the Ministry of Planning and Investment shall notify the ODA calling list to every donor.

e/ The Ministry of Planning and Investment notifies the official financing list to the managing agencies for proceeding with subsequent preparatory steps under the provisions of Chapter III of this Regulation.

3. For programs and projects which the managing agencies and donors have agreed with their financing proposals but are not on the ODA calling list already approved by the Prime Minister, the Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the concerned agencies in, considering and submitting to the Prime Minister for permission the additional inclusion of those programs or projects in the official financing list.

Article 8.- Prime Minister's decision approving the ODA calling list

A Prime Minister's decision approving the ODA calling list contains the following principal contents:

1. The names of the programs and projects and the donors.

2. The program- or project-managing agencies.

3. Main objectives and outcomes of the programs and projects.

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5. Expected ODA limit and type (non-refundable aid, loans) of the programs and projects.

6. Domestic capital source and financial mechanism applicable to the programs and projects.

Article 9.- Responsibilities for proposal, order and procedures for signing of framework international agreements on ODA

1. The Ministry of Planning and Investment shall base itself on the ODA mobilization requirements and results to assume the prime responsibility for, and coordinate with concerned agencies in, submitting the signing of framework international agreements on ODA to the Government.

2. The order and procedures for submission of and decision on the signing of framework international agreements on ODA shall comply with the law on conclusion, accession to and implementation of treaties.

3. After obtaining written approval of the Government, the Ministry of Planning and Investment shall negotiate and sign framework international agreements on ODA.

Chapter III

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

Article 10.- Tasks of managing agencies in relation to programs and projects under their approval-deciding (or investment-deciding) competence in the official financing list

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1. Issuing decisions on project owners according to the following provisions:

a/ For investment programs and projects, project owners must satisfy the conditions required by the current law on investment and construction management;

b/ For technical assistance programs and projects, project owners must have:

- Functions, tasks and activities relevant to the objectives and contents of technical assistance programs or projects;

- Other necessary conditions as required by law.

2. Supporting and guiding project owners to perform the following duties:

a/ Preparing the compilation of program or project documents on the basis of the official financing list; ensuring the timeliness and quality of those documents;

b/ Mobilizing appropriate resources for the preparation of programs or projects;

c/ Making plans for the preparation of programs or projects with the following principal contents:

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- The order of preparatory steps, major outcomes of each step, major activities to achieve each outcome;

- Assignment of implementation and organization responsibilities and identification of subjects to be involved in the preparatory process;

- Clear identification of discrepancies between Vietnam's procedures and the donor's procedures, measures to be taken to implement regulations and procedures of the two sides;

- The timetable for completion of activities, outcomes of the preparatory process and the schedule for mobilization of relevant inputs, clearly identifying requirements on personnel, training, funding, working equipment, including training requirements for the process of preparation and implementation of projects.

3. Appraising and issuing investment decisions (or approving documents of technical assistance programs or projects) according to current regulations on investment and construction management and on ODA management and use.

Article 11.- Tasks of project owners in preparing contents of programs or projects on the official financing list

1. Preparing investment projects:

a/ For important national projects: Project owners shall observe current legal provisions applicable to important national projects;

b/ For other projects: Project owners shall select consultants to formulate investment projects; inspect, appraise and take overall responsibility for project dossiers submitted for approval; consult concerned ministries, branches and localities before finalizing projects; and submit them to competent agencies for appraisal and decision on investment therein.

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2. Preparing programs:

- Project owners shall formulate programs on the use of ODA capital sources; inspect, appraise and take overall responsibility for the programs; consult concerned ministries, branches, localities and other subjects involved in implementing and benefiting from the programs;

- Project owners shall reach agreement with donors on the contents of program documents and carry out the appraisal and approval of programs according to the process and procedures provided for in Article 19 of this Regulation.

3. Preparing technical assistance projects:

- Project owners shall by themselves or with the support of the donors make documents of technical assistance projects and consult concerned agencies, especially branch-managing agencies, on the contents of technical assistance programs or projects;

- Project owners shall reach agreement with the donors on the contents of documents of technical assistance projects and submit them to competent agencies for appraisal and approval of projects.

Article 12.- Funds for program and project preparation

1. Programs and projects on the official financing list shall serve as a basis for planning funds for program and project preparation. Program or project preparation funds may cover the following expenses:

a/ Expenses for research, investigation, survey, gathering, analysis and synthesis of initial data;

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c/ Expenses for appraisal, supplementation and finalization of program or project documents till they are approved by competent authorities;

d/ Necessary expenses for training and raising the capabilities of personnel to work as the core in program or project management units.

2. For programs and projects funded by the State with state budget grants, the project owners shall make plans on preparation funds for incorporation in annual general budget plans of the managing agencies. The process of approval and allocation of funds for the preparation of programs or projects funded with grants shall comply with the law on the state budget.

When the time of planning funds for the preparation of a program or project eligible for financing does not fall within the annual budget planning period, the managing agency shall arrange such funds in the total budget already allocated for program and project preparation; if unable to arrange such funds, it shall send to the Ministry of Planning and Investment and the Ministry of Finance a written request for consideration and decision on advancing capital, which shall be later deducted from the subsequent fiscal year's budget allocated for program and project preparation.

3. For programs and projects funded with loans re-lent by the State from the budget or funded with both grants and re-lent loans, the project owners shall balance and arrange by themselves funds for program and project preparation.

4. When a donor provides financial supports through a technical assistance project for program or project preparation, the project owner shall report it to the managing agency for incorporation into the latter's annual program and project preparation funding plan.

Article 13.- Documents of ODA-funded investment projects

Documents of ODA-funded investment projects must be elaborated according to current regulations on investment and construction management and added with the following contents, depending on the particularities and requirements of ODA capital sources:

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

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3. The domestic financial mechanism applicable to the ODA project, an analysis of the financial efficiency and socio-economic benefits of the ODA-funded program or project, taking into consideration the binding conditions required by the donor and making a debt repayment plan for re-lent ODA capital.

4. Capability and source of domestic contributed capital.

5. The tentative general plan and project implementation plan for the first year, covering also the procurement, training, capacity building and ground clearance (if any).

6. Assessment of risks and proposed remedies.

7. The project monitoring and evaluation plan.

8. Sustainability of the project after completion.

9. Project implementation organization and management capabilities (including the financial capability) of the project owner.

If the document of an investment project is formulated according to a form set by the donor, the above contents must be taken into account in the process of cooperation with the donor in formulating this document in order to ensure the harmony between Vietnam's and the donor's processes and procedures.

Article 14.- Documents of ODA-funded technical assistance projects

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1. The background and necessity of the project within the framework of the long-term development planning and plans of the ODA-benefiting unit (agency, branch, domain or locality).

2. Short-term and long-term objectives of technical assistance.

3. Major outcomes of technical assistance and assessment of their applicability.

4. Major activities of technical assistance.

5. Obligations the Vietnamese side is committed to fulfill.

6. Total aid amount, plan on the use of the aid capital, way of allocating such capital to each activity according to given criteria, financial mechanism of the projects, regulations on disbursement, payment and financial finalization, accounting and capital management responsibility.

7. Domestic contributed capital and its source.

8. Mode of organizing the project implementation.

9. The tentative overall plan and project implementation plan for the first year.

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11. The project monitoring and evaluation plan.

12. Sustainability of the project after completion.

13. Project implementation organization and management capabilities of the project owner.

If the document of a technical assistance project is formulated according to a form set by the donor, the above contents must be taken into account in the process of cooperation with the donor in formulating this document in order to ensure the harmony between Vietnam's and the donor's processes and procedures.

Article 15.- Documents of ODA-funded programs

A document of an ODA-funded program contains the following principal contents:

1. The background and necessity of the program within the framework of the long-term development planning and plans of the ODA-benefiting unit (agency, branch, domain or locality).

2. Overall objectives, component objectives, contents of component projects (if any) or contents of main components and activities.

3. Detailed outlines of each component project or component.

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5. Structure of organizing the program implementation.

6. Mode of managing resources.

7. The tentative overall plan and program implementation plan for the first year.

8. Assessment of risks and proposed remedies.

9. The program monitoring and evaluation plan.

10. Sustainability of the program after completion.

11. Program implementation organization and management capabilities (including the financial capability) of the program owner; project implementation organization and management capabilities of component project owners.

If the document of a program is formulated according to a form set by the donor, the above contents must be taken into account in the process of cooperation with the donor in formulating this document in order to ensure the harmony between Vietnam's and the donor's processes and procedures.

Article 16.- Appraisal of programs and projects

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2. Documents of programs and projects specified in Articles 13, 14 and 15 of this Regulation and enclosed materials (including documents on adjustments and supplements thereto) must be appraised and approved by competent authorities to serve as a basis for negotiation, signing and implementation of specific international agreements on ODA with the donors.

3. For programs and projects subject to approval by the Prime Minister as stipulated in Clause 1, Article 19 of this Regulation:

- For those at Point a/: The appraisal shall comply with current regulations of the National Assembly of the Socialist Republic of Vietnam and current laws on important national projects and works in which investment is decided by the National Assembly;

- For those at Point b/: The managing agencies shall appraise program and project documents and submit them to the Prime Minister for approval and for permission on program or project implementation.

4. For programs and projects subject to approval by the heads of the managing agencies as stipulated in Clause 2, Article 19 of this Regulation, the order, procedures and contents of appraisal shall comply with current provisions of law.

5. Agencies in charge of appraisal may request specialized bodies at the central and local levels, independent consultancy organizations and consultants to assist in the appraisal of programs and projects.

6. Appraisal documents shall be made in 08 sets for programs and projects subject to approval by the Prime Minister, including at least 01 original set. Foreign language documents must be enclosed with Vietnamese translations.

7. In the course of appraisal, the agencies in charge of appraisal shall take into account the donors' appraisal order, procedures and contents to ensure necessary coordination and harmony, the contents already agreed upon with the donors, the appraisal opinions of the donors or their representatives. Similar or divergent opinions of the concerned parties must be reflected in the appraisal reports.

8. Agencies in charge of appraisal shall consult concerned agencies, make appraisal reports and submit to competent authorities for approval program or project documents. An appraisal report must be enclosed with a draft decision approving the program or project content.

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Article 17.- Dossiers of appraisal of programs or projects

An appraisal dossier comprises:

1. The written request for the appraisal of the program or project, made by the managing agency (for programs and projects subject to approval by the Prime Minister) or by the project owners (for programs or projects subject to approval by managing agencies);

2. The Ministry of Planning and Investment's notice on the official financing list;

3. The program or project document (in both Vietnamese and foreign language, if any).

4. All documents and replies given by the concerned agencies in the process of preparing the program or project and documents of agreement and memoranda of understanding with the donor or its representative, reports prepared by the team of appraising specialists at the donor's request (if any).

5. The project owner's financial statements of the latest three years, with the managing agency's certification (for programs or projects funded under the re-lending mechanism).

Article 18.- Contents and process of and time limit for appraisal of programs or projects

1. The contents and process of and time limit for appraisal of investment programs or projects shall comply with the current provisions of law on investment and construction management.

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The appraisal time limit must not exceed 45 working days for investment programs and projects and 15 working days for technical assistance projects, counting from the date of receipt of complete and valid dossiers as stipulated in Article 17 of this Regulation.

Within 10 days after the date of approval of a program or project by competent authorities under Article 19 of this Regulation, the managing agency shall send to the Ministry of Planning and Investment and the Ministry of Finance the program or project appraisal report and the approval decision (notarized copies), enclosed with the program or project documents which are affixed with authentication stamps.

Article 19.- Competence to approve ODA programs and projects

1. The Prime Minister shall:

a/ Approve investment in important national programs and projects;

b/ Approve programs and projects associated with policy frameworks, and technical assistance programs and projects in the security and defense domains.

2. The heads of the managing agencies shall decide on investment in investment programs or projects and approve technical assistance programs and projects not stipulated in Clause 1 of this Article.

Within 10 days after the date of receipt of the appraisal report of the agency in charge of appraisal, the head of the managing agency shall issue a decision to approve the program or project stipulated in Clause 2 of this Article.

Chapter IV

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Article 20.- Bases for proposing the signing of specific international agreements on ODA

Bases for proposing the signing of specific international agreements on ODA are program and project documents already approved by competent authorities under the provisions of Articles 13, 14, 15 and 19 of this Regulation.

Article 21.- Responsibility to submit to the Government the signing of specific international agreements on ODA

1. The Supreme People's Court, the Supreme People's Procuracy, ministries, ministerial-level agencies and government-attached agencies shall submit to the Government the signing of specific international agreements on ODA for programs and projects under their respective management after receiving the proposals of project owners.

After receiving the proposals of the managing agencies, the State Bank of Vietnam shall assume the prime responsibility for, and coordinate with the concerned agencies in, submitting to the Government the signing of specific international agreements on ODA with international financial institutions specified in Clause 1, Article 42 of this Regulation; the Ministry of Finance shall assume the prime responsibility for, and coordinate with the concerned agencies in, submitting to the Government the signing of specific international agreements on ODA with respect to other loans.

2. The responsibility to submit to the Government the signing of specific international agreements on ODA for programs and projects managed by agencies other than those specified in Clause 1 of this Article shall rest with the Ministry of Planning and Investment after receiving the proposals of the agencies managing ODA programs or projects.

Article 22.- Order and procedures for signing specific international agreements on ODA

1. The order and procedures for signing specific international agreements on ODA shall comply with the current law on the conclusion, accession to and implementation of treaties.

2. The agencies that submit to the Government the signing of international agreements specified in Clause 1, Article 21 of this Regulation shall, after receiving the written authorization decisions of the Government, assume the prime responsibility for, and coordinate with concerned agencies in, negotiating and signing specific international agreements on ODA.

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Chapter V

MANAGEMENT OF IMPLEMENTATION OF ODA PROGRAMS AND PROJECTS

Article 23.- Tasks, responsibilities and powers of managing agencies

1. Ensuring that their decisions on investment in programs and projects are for proper objectives, in line with plannings, plans, lawful and effective; ensuring the recoverability of investment capital and the repayment of loans (for ODA programs and projects funded with re-lent loans); ensuring the supply of sufficient domestic contributed capital according to the schedule agreed with donors. Ensuring that technical assistance programs and projects achieve the objective of capacity and institution enhancement in the domains under their management.

2. Approving issues related to the process of selecting contractors in accordance with the current law on biding.

3. Inspecting and supervising the program and project implementation by project owners in the process of project and program implementation.

4. Developing and implementing measures in accordance with the current law on prevention and combat of corruption, waste and misuse of capital which affect the program and project objectives and the national prestige.

5. Taking responsibility according to the current provisions of law for violations of regulations on the competence in the process of selecting project owners, appraising, issuing investment decisions, approving documents of technical assistance projects and supervising the program and project implementation.

6. Taking responsibility according to the current provisions of law for delayed or improper implementation of technical assistance programs or projects as compared with their investment decisions and decisions approving their documents, and for wrongdoings committed in the process of program and project implementation, causing loss, waste or corruption.

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Article 24.- Tasks, responsibilities and powers of project owners

1. General tasks, responsibilities and powers:

a/ Organizing the program or project management and implementation apparatus; signing contracts in accordance with law. If directly managing a program or project, the project owner shall ensure an adequate apparatus and capability to manage the project, and obtain the permission of a competent agency which is indicated in the investment decision or approval decision of the program or project.

b/ Appraising and approving technical designs, total cost estimates and estimates of construction items;

c/ Negotiating, signing and supervising the performance of contracts and handling contract breaches;

d/ Proposing to their managing agencies mechanisms and policies to ensure the program and project implementation in conformity with international commitments;

e/ Other rights and responsibilities as provided for by law.

2. Specific tasks, responsibilities and powers:

a/ Carrying out biddings in accordance with the current law on bidding;

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c/ Taking overall and continuous responsibility for managing the use of investment capital sources from the investment preparation and execution, the commission of programs or projects to the recovery and repayment of ODA loans (for cases of re-lending).

d/ Monitoring and evaluating projects and managing the operation of programs or projects;

e/ Taking overall responsibility for wrongdoings committed in the process of program and project management which cause adverse consequences to the economy, society, ecology, environment and national prestige;

f/ Taking responsibility as provided for by law, possibly paying compensation for economic losses or changing project owners, for the delayed or improper implementation of technical assistance programs or projects as compared with their investment decisions and decisions approving their documents, causing loss, waste or corruption and affecting the general objectives and effectiveness of programs or projects.

g/ Other rights and responsibilities as provided for by law.

3. When a project owner is changed, the new project owner shall take over all the rights, responsibilities and obligations of the predecessor, except liabilities due to the predecessors' wrongdoings.

Article 25.- Establishment of program or project management units (project management units)

1. Pursuant to Clause 4 of this Article, project owners shall issue decisions to establish project management units immediately after the program or project documents are approved by competent authorities.

2. Pursuant to Clause 4 of this Article, managing agencies shall issue decisions to establish project management units for technical assistance programs or projects immediately after their documents are approved by competent authorities.

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4. The Ministry of Planning and Investment shall issue a circular guiding the organizational structure, functions and tasks of project management units.

Article 26.- Domestic contributed capital for implementation preparation and implementation of programs and projects

1. Programs and projects must be ensured with adequate domestic contributed capital for their implementation preparation and implementation. The source, level and mechanism applicable to domestic contributed capital shall comply with the contents of the Prime Minister's decision approving the ODA calling list stipulated in Article 8 of this Regulation.

2. Domestic contributed capital for implementation preparation and implementation may cover the following expenses:

a/ Expenses for the program or project management units (salaries, bonuses, allowances, working offices and facilities, administrative expenses, project monitoring and evaluation, quality supervision, pre-acceptance test, hand-over and financial finalization);

b/ Expenses for design appraisal, approval of total cost estimates, completion of investment, construction and other necessary administrative procedures;

c/ Expenses related to the selection of contractors;

d/ Expenses for meetings, seminars and training in program and project management and implementation knowledge and skills;

e/ Expenses for receipt and dissemination of international technologies, experience and skills;

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g/ Expenses for domestic services and facilities supplied to foreign contractors to work under contracts in Vietnam;

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

i/ Expenses for payment of indirect taxes, customs charges and insurance premiums according to current regulations;

j/ Interests, deposits, commitment fees and other related fees payable to foreign parties during the construction period;

k/ Expenses for receipt of equipment and domestic transportation;

l/ Auditing expenses;

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

n/ Provisions and other reasonable expenses.

3. For programs and projects funded with state budget grants, the managing agencies shall arrange domestic contributed capital in their annual budgetary plans in accordance with current law; ensure the full and timely supply of such capital in accordance with the schedule set in the program and project documents already approved by competent authorities and with the law on the state budget and the ODA-related treaties to which the Socialist Republic of Vietnam is a contracting party.

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If meeting with unforeseen difficulties in acquiring domestic contributed capital, the project owners shall report them to the managing agencies for solution.

5. For programs and projects which are funded with state budget grants but for which domestic contributed capital has not yet been arranged in the annual budgetary plan or which have unexpected needs of domestic contributed capital, upon written request of the managing agencies, the Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Finance in, making handling decisions according to its competence or submit to competent authorities for decision the advance of the domestic contributed capital taken from the subsequent year's estimated budget for implementation. The managing agencies shall coordinate with concerned agencies in arranging the subsequent year's estimated budget to repay the capital advanced from the state budget.

6. The managing agency may transfer the unused portion of the domestic contributed capital already allocated in the plan year to a program or project to another program or project that needs more domestic contributed capital than the amount already distributed to it in the annual plan.

Article 27.- Advance capital for program or project implementation

For programs or projects for which ODA-financing commitments have been made and which have been included in the annual financial plan but ODA capital cannot be withdrawn yet, if they have urgent needs for advance capital for executing some items, the Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Finance in, considering and deciding on the advance of capital from the state budget source on the basis of the managing agencies' written explanations and the donors' written agreements. This advanced capital shall be recovered by state treasuries at all levels upon disbursement of ODA capital allocated to those items.

Article 28.- Taxes on programs and projects

Taxes on programs and projects shall comply with the current tax laws and ODA treaties to which the Socialist Republic of Vietnam is a contracting party.

Article 29.- Compensation, ground clearance and resettlement

1. The compensation, ground clearance and resettlement under programs and projects shall comply with the current laws and ODA treaties to which the Socialist Republic of Vietnam is a contracting party.

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Article 30.- Bidding

The bidding for implementation of a program or project shall comply with the current law on bidding and ODA treaties to which the Socialist Republic of Vietnam is a contracting party.

Article 31.- Adjustment, amendment and supplementation of contents of programs and projects during the course of implementation

1. If adjustments, amendments and supplements to the contents of a program or project during the course of its implementation result in:

a/ Changes in the signed specific international agreement on ODA: The managing agency shall comply with the law on conclusion, accession to, and implementation of treaties;

b/ Changes in the domestic financial mechanism or domestic re-lending conditions applicable to the program or project: The managing agency shall report them to the Ministry of Finance and the Ministry of Planning and Investment for submission to the Prime Minister for decision.

2. If a donor agrees on the use of post-bidding surplus capital amount of the program or project (surplus capital means the difference between the total financing value committed in the signed international agreement on ODA and the total value of the approved bid):

a/ If the surplus capital amount is to be used for implementing a new program or project in the direction of prioritizing the promotion of the efficiency of the ongoing program or project: The managing agency shall send to the Ministry of Planning and Investment an explanatory report enclosed with the document of the project or program expected to use the surplus capital amount so that the latter can coordinate with concerned agencies in examining and submitting to the Prime Minister for consideration and decision the use of the surplus capital amount.

b/ If the surplus capital amount is to be used for supplementing the capital of the ongoing program or project: The managing agency shall decide on the use of the surplus capital amount.

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1. For investment projects, the appraisal and approval of technical designs and total cost estimates, the grant of construction permits, the management of the quality of works, the pre-acceptance test, hand-over, warranty and insurance of construction works shall comply with the current law on investment and construction management.

2. For technical assistance programs and projects, after completion, the managing agencies shall organize pre-acceptance tests and take necessary measures to continue exploiting and promoting the attained outcomes and comply with the current provisions of law on management of finance and assets of programs and projects.

3. The financial settlement of programs and projects shall comply with the current laws and the international agreements on ODA effective in Vietnam.

Chapter VI

MONITORING AND EVALUATION OF ODA PROGRAMS AND PROJECTS

Article 33.- Monitoring of ODA programs and projects

Monitoring of programs and projects means regular and periodical updating of all information on the implementation of programs and projects; classification and analysis of information; timely proposal of options to serve the decision making of management authorities at different levels in order to ensure the program or project implementation for proper purposes, according to schedule, with quality and within the limits of specified resources.

Article 34.- Evaluation of programs and projects

1. Evaluation of projects means regular, comprehensive, systematic and objective examination of the relevance, efficiency, effectiveness, impacts and sustainability of a program or project so as to make necessary adjustments and draw lessons for application at subsequent implementation stages and to other programs and projects.

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

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

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

d/ Impact evaluation: to be conducted at an appropriate time within three years after the date the program or project is put into exploitation and use so as to clearly assess their efficiency, sustainability and socio-economic impacts against the objectives set at the beginning.

3. The evaluation plan, the organization of evaluation activities and evaluation funds which are deducted from the ODA capital or domestic contributed capital source must be pre-determined in the program or project document and be compatible with the nature of each type of program or project.

Article 35.- Responsibilities to monitor and evaluate programs and projects

1. Project management units shall regularly monitor and evaluate programs and projects according to the following provisions:

a/ Formulating master plans and annual detailed plans on the implementation of their programs or projects, clearly identify resources to be utilized, the implementation schedule, the completion deadline, quality objectives and criteria for acceptance of the outcomes of each activity of their programs or projects, for use as a basis for monitoring and evaluation. The master plans on the implementation of projects shall be prepared by the project management units 3 months before the beginning of the programs or projects and be approved by project owners. Annual detailed plans shall be made on the basis of the agreement of the donors and be submitted to project owners for approval in accordance with the annual planning schedules of the managing agencies.

b/ Establishing an internal information system, gathering and storing fully information, data, dossiers, materials, books and vouchers of programs or projects, reports of contractors, changes in the State's policies and laws, and the donors' regulations related to the implementation management;

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d/ Hiring consultants to conduct initial, mid-term and final evaluations according to the contents of the approved program or project documents; acting as coordinators with the donors or competent management agencies in evaluating the programs and projects.

2. Project owners shall direct, urge and assist project management units in monitoring and evaluating programs and projects. If facing difficulties or obstacles which they are unable to solve by themselves, project owners shall promptly report them to competent authorities for settlement.

3. Project owners shall publicly announce to socio-political organizations, local administrations and elected bodies located in the geographical areas where their programs or projects exist the purposes, contents of activities, ODA capital and domestic contributed capital amounts; the organizational structures and operation regulations of the project management units so as to make use of community supervision during the course of program or project implementation.

4. Managing agencies shall monitor the implementation of programs and projects under their management; fully and promptly respond to project owners' reports; and analyze the lists of programs and projects so as to determine the implementation thereof.

5. Managing agencies shall examine the results of evaluation of programs and projects conducted by project owners under their respective management. In case of necessity, they shall coordinate with donors and concerned agencies in conducting irregular evaluations of programs or projects.

6. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with state management agencies in charge of ODA, on the basis of their functions and tasks specified in Chapter VII of this Regulation, in, monitoring and evaluating the program and project implementation management capabilities of managing agencies and conduct national monitoring and evaluation of programs and projects.

The Ministry of Planning and Investment shall respond to reports of managing agencies so as to continuously improve the management and use of ODA capital.

In case of necessity, the Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Finance, branch-managing ministries and localities in, setting up inter-branch working teams to work directly with the project owners and project management units in considering, assessing and settling according to their competence the proposals related to those programs and projects. For matters falling beyond its competence, the Ministry of Planning and Investment shall sum up opinions of the concerned agencies and submit them to the Prime Minister for consideration and decision.

7. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with concerned agencies and donors in, building a national database on ODA to serve the monitoring and evaluation of ODA programs and projects and meet the demands for information on this capital source.

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Article 36.- Reporting on implementation of programs and projects

1. During the course of implementing programs or projects, the project management units shall make and send the following reports to the project owners for the later to send them to the managing agencies, the Ministry of Planning and Investment, the Ministry of Finance and the provincial-level People's Committees of the localities where the programs or projects are implemented:

a/ Monthly reports, within 10 working days after the month's end (applicable only to investment programs and projects approved by the Prime Minister);

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

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

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

e/ Reports on changes (if any) compared with the contents of the signed specific international agreements on ODA.

Reports addressed to the donors shall be made as agreed upon in the relevant international agreements on ODA.

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

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4. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with concerned agencies in, guiding the reporting regime and forms of reports on ODA, step by step harmonize ODA report forms with those of donors; supervise the observance of the reporting regime at all levels and periodically report to the Prime Minister on the performance of this work.

Article 37.- Examination, inspection and supervision of ODA receipt, management and use

The examination, inspection and supervision of the ODA receipt, management and use shall comply with current laws.

Chapter VII

STATE MANAGEMENT OF ODA

Article 38.- State management of ODA

The Government shall perform the uniform state management of ODA, including:

1. Deciding on the strategy, policies, plannings, plans and orientation for the ODA attraction and use in each period; authorizing the Prime Minister to approve lists of programs and projects calling for ODA and amendments and supplements thereto (if any);

2. Promulgating legal documents on ODA management and use according to its competence;

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Article 39.- Tasks of the Ministry of Planning and Investment

The Ministry of Planning and Investment shall assist the Government in performing the uniform state management of ODA. It has the following tasks and powers:

1. Acting as the sole body in the ODA attraction, coordination and management; assuming the prime responsibility for drafting the strategy, policies and plannings for ODA attraction and use; guiding managing agencies in making lists of programs and projects calling for ODA and synthesizing them into an ODA calling list for submission to the Prime Minister for approval.

2. Assuming the prime responsibility for drafting and submitting for promulgation or promulgating according to its competence legal documents on ODA management and use.

3. Assuming the prime responsibility for preparing and organizing the mobilization and coordination of ODA sources according to its competence;

4. Assuming the prime responsibility for, and coordinating with concerned agencies in, submitting to the Government the signing of, negotiating and signing framework international agreements on ODA; submitting to the Government the signing of specific international agreements on ODA for programs and projects specified in Clause 2, Article 21 of this Regulation.

5. Guiding concerned units and organizations in preparing programs and projects; assuming the prime responsibility for, and coordinating with the Ministry of Finance in, identifying the domestic financial mechanism applicable to the use of ODA capital;

6. Assisting concerned agencies in preparing the contents and monitoring the process of negotiating specific international agreements on ODA with donors;

7. Assuming the prime responsibility for, and coordinating with the Ministry of Finance in, synthesizing and making plans on the disbursement of ODA capital, arranging in time enough capital for the preparation of programs and projects, domestic contributed capital for implementation preparation and implementation of ODA programs and projects funded with state budget grants in annual capital plans.

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8. Monitoring and supervising the management and organization of implementation of programs and projects; urging and assisting the implementation of programs and projects.

Establishing, operating and perfecting a national system for monitoring and evaluation of programs and projects; sharing information with concerned agencies and donors, and effectively exploiting this system;

9. Conducting a general evaluation of the efficiency of the use of ODA capital; making periodical (biannual and annual) wrap-up reports and reports at the special request of the Party and the State on the management and implementation of ODA programs and projects and the effectiveness of ODA attraction and use.

10. Acting as the key agency in handling matters related to many ministries and branches; proposing to the Prime Minister for decision measures to deal with ODA-related matters falling within the competence of the Prime Minister;

11. Compiling and disseminating professional instruction materials on the mobilization, preparation, appraisal, implementation management, monitoring and evaluation of programs and projects, taking into account the requirement for harmonization with donors' procedures; assisting the training in program and project management toward professionalization and sustainability.

12. Assuming the prime responsibility for implementing coordinated measures to improve the effectiveness of ODA management and use.

Article 40.- Tasks of the Ministry of Finance

The Ministry of Finance has the following tasks and powers:

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

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

4. Performing the financial management of programs and projects:

a/ Assuming the prime responsibility for, and coordinating with concerned agencies in, guiding the application of financial management regulations to programs and projects;

b/ Assuming the prime responsibility for, and coordinating with the Ministry of Planning and Investment and concerned agencies in, submitting to the Prime Minister for approval the domestic re-lending conditions applicable to programs and projects;

c/ Specifying the procedures for capital withdrawal and capital withdrawal management to be complied with by programs and projects in accordance with current laws and international agreements on ODA already signed with donors;

d/ Assuming the prime responsibility for guiding tax policies applicable to programs and projects; settling tax-related problems;

e/ Arranging state budget capital and capital of other sources (if any) for the repayment of ODA loans when they are due;

f/ Monitoring and supervising the financial management of the use of ODA capital; organizing the state budget accounting of ODA capital; synthesizing data on capital withdrawal, payment and debt repayment related to programs and projects, reporting them to the Government and notifying them to concerned agencies;

g/ Coordinating with the Ministry of Planning and Investment in synthesizing and making ODA capital disbursement plans, arranging enough capital in time for program and project preparation, domestic contributed capital for implementation preparation and implementation of programs and projects funded with state budget grants in annual budget estimates; allocating enough domestic contributed capital according to schedule to programs and projects funded with state budget grants; coordinating with the Ministry of Planning and Investment in handling unexpected needs for domestic contributed capital and needs for advance capital for programs and projects according to the provisions of Clause 5, Article 26 and of Article 27 of this Regulation;

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Article 41.- Tasks of the Ministry of Justice

The Ministry of Justice has the following tasks and powers:

1. Appraising international agreements on ODA in accordance with the law on signing, accession to and implementation of treaties;

2. Providing legal opinions on international agreements on ODA or other legal matters at the request of the agencies proposing the signing of international agreements;

4. Appraising the contents of cooperation projects in the legal domain in accordance with current law.

Article 42.- Tasks of the State Bank of Vietnam

The State Bank of Vietnam has the following tasks and powers:

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

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

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Article 43.- Tasks of the Ministry of Foreign Affairs

The Ministry of Foreign Affairs has the following tasks and powers:

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

2. Participating in negotiating and contributing opinions on draft international agreements on ODA; supervising the proposals on negotiation and signing of international agreements on ODA; carrying out external procedures related to the signing and implementation of international agreements on ODA;

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

Article 44.- Tasks of the Government Office

The Government Office has the following tasks and powers:

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

2. Contributing opinions on the contents of programs and projects in the process of their preparation at the request of managing agencies or project owners; verifying and making proposals concerning policies, mechanism and ways of organizing the implementation of programs and projects before submitting them to the Government or the Prime Minister for consideration and decision.

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Article 45.- Tasks of other ministries, branches and provincial-level People's Committees

1. Other ministries, ministerial-level agencies and government-attached agencies have the following tasks:

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

b/ Assuming the prime responsibility for, and coordinating with concerned agencies in, submitting to the Government the signing of specific international agreements on ODA for programs and projects in the domains under their respective management in accordance with this Regulation;

c/ Ensuring the quality and efficiency of the use of ODA capital in the domains under their respective management;

d/ Discharging their function of state management of programs and projects in accordance with law. When requested, considering and making written opinions on matters related to programs and projects within the set time limit.

2. Provincial-level People's Committees have the following tasks:

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

b/ Coordinating with the Ministry of Planning and Investment in submitting to the Government the signing of specific international agreements on ODA for programs and projects under their respective management in accordance with this Regulation;

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d/ Taking responsibility for the land recovery and ground clearance and implementing compensation and resettlement policies for programs and projects in their respective localities in accordance with law.

Article 46.- Commendation, handling of violations

1. Organizations and individuals that make outstanding achievements in the implementation of this Regulation shall be commended and rewarded in accordance with the law on emulation and commendation.

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