Thông tư 49/2009/TT-BNNPTNT

CIRCULAR

GUIDING THE MANAGEMENT AND USE OF FOREIGN AID SOURCES OF THE MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT

THE MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT

Pursuant to the Government's Decree No. 01/2008/ND-CP of January 3, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Agriculture and Rural Development;
Pursuant to the Government's Decree No. 131/2006/ND-CP of November 9, 2006, promulgating the Regulation on Management and Use of Official Development Assistance Sources;
Pursuant to the Prime Minister's Decision No. 64/2001/QD-TTg of April 26, 2001, promulgating the Regulation on Management and Use of Foreign Non-Governmental Aid;
The Ministry of Agriculture and Rural Development guides the management and use of foreign aid sources under its management as follows;

Chapter I

GENERAL PROVISIONS

Article 1. Governing scope

This Circular guides the attraction, mobilization, management and use of various foreign aid sources, including official development assistance (ODA) sources and foreign non-governmental (FNG) aid sources, which are managed and used by the Ministry of Agriculture and Rural Development.

Article 2. Subjects of application

This Circular applies to all state management units and non-business units under the Ministry (below collectively referred to as units), which manage and use foreign aid sources managed by the Ministry of Agriculture and Rural Development.

Article 3. Foreign aid sources

1. ODA sources include:

a/ Non-refundable ODA programs and projects, which are a form of provision of ODA which shall not be refunded to the donors;

b/ Preferential ODA loan programs and projects (preferential credit), which are loans with preferential conditions on interest rate, grace period and debt payment, ensuring that the "non­refundable element" (also called the support component) represents at least 35%. for binding loans, and 25%, for non-binding loans;

c/ Mixed ODA loan programs and projects, which are non-refundable aid amounts or preferential loan amounts provided simultaneously with commercial credits, which are aggregated with the "non-refundable element" representing at least 35%, for binding loans, and 25%, for non-binding loans;

2. FNG aid sources include:

a/ Aid provided through programs or projects;

b/ Non-project aid (including emergency relief) provided as supports by foreign organizations and individuals or overseas Vietnamese in the forms of financial support, assistance in kind, supply of equipment and technology (machinery and operation secrets), supplies (commodities, plant varieties, animal breeds), research and development, technical assistance, provision of specialists and training.

Article 4. Principles for attraction, management and use of foreign aid sources

1. The attraction, management and use of foreign aid sources comply with current Vietnamese laws, ensuring national security and effectiveness, and comply with treaties or international agreements to which Vietnam is a contracting party;

2. Ensuring the uniformity and consistency of regulations on management and use of foreign aid sources; ensuring wide participation of parties concerned; simplifying and harmonizing procedures between the Ministry and donors; decentralizing management and implementation, clearly defining responsibilities, intensifying supervision and raising the effectiveness of foreign aid sources.

Chapter II

MOBILIZATION AND PREPARATION FOR RECEIPT OF FOREIGN AID SOURCES

Article 5. Aid mobilization priority domains of the Ministry

1. Development of rural infrastructure (agriculture, forestry and irrigation) in combination with hunger elimination and poverty reduction;

2. Prevention, combat and mitigation of consequences of natural disasters and epidemics, and adaptability to global climate change;

3. Food security, hygiene and safety;

4. Protection of the environment and natural resources in rural areas;

5. Enhancement of capability, institution, management and techniques and development of human resources, technological transfer, raising of research and development capacity;

6. Some other domains, based on strategies and planning for the sector's development, regulations of the Government and the Ministry.

Article 6. Grounds for the proposed lists of programs and projects requiring ODA capital attraction, mobilization and use

Based on the strategy for socio-economic development, the comprehensive strategy on growth and hunger elimination and poverty reduction (CPRGS), the national strategy on foreign loans and debt payment and the national program on management of medium-term debts, the strategies and programs on development cooperation between Vietnam and donors and the (short-term, medium-term and long-term) socio­economic development plannings and plans of the nation and sectors, the Ministry of Agriculture and Rural Development shall draw up and register the lists of its annual programs and projects requiring ODA capital attraction, mobilization and use.

Article 7. Selection of lists of programs, projects prioritized for ODA attraction, mobilization and use

1. Units shall take the initiative in proposing lists of programs and projects requiring ODA attraction and mobilization and send the outline of every program or project to the International Cooperation Department, which is enclosed with the dossier for registration of lists of ODA requests, including an official letter of the unit requesting the registration of lists of programs and projects requiring ODA attraction and mobilization together with 8 sets of the outline of every program or project (each set will comprise documents made in Vietnamese and English).

2. The International Cooperation Department shall assume the prime responsibility for, and coordinate with concerned units in, scrutinizing and collecting the registered lists of aid-requiring programs and projects and submit them to the Minister for consideration and send documents to the Ministry of Planning and Investment.

3. The International Cooperation Department shall assume the prime responsibility for, and coordinate with proposing units in. preparing and formulating detailed schemes and discussing with donors on the lists of programs and projects prioritized for aid mobilization of the Ministry of Agriculture and Rural Development to be submitted to the Ministry for sending to competent agencies for approval.

4. The detailed schemes of programs or projects on the registered lists shall each contain the following principal details:

a/ The names of the program or project and the donor.

b/ The program/ project- managing agency.

c/ The program/project owner (investor) and coordinating agencies (if any).

d/ The short-term and long-term objectives and major outcomes of the program or project.

e/ The position, role and contributions of the program or project to the sector development planning, plan and program.

f/ Location for program or project implementation.

g/ The program or project- commencing and -completing time.

h/ Main contents, operations, outputs and results of components or sub-projects.

i/ The contents of discussions with donors on commitments, conditions on aid of donors, and obligations of the recipients.

j/ The projected level and type of capital of the program or project.

k/ Domestic financial sources and mechanisms of the program or project.

l/ The tentative master plan and the first year implementation plan, plans for program or project monitoring and supervision.

m/ The capability to organize the project implementation and management, the sustainability upon project completion, analysis of risks and impacts of the program or project and remedies (if any).

Article 8. Program or project preparation

1. ODA capital-funded program or project preparation

Within 5 working days after the receipt of the written notice on the Prime Minister's approval of the official aid lists, the International Cooperation Department shall coordinate with concerned units in proposing the Minister to issue decisions allowing project owners to perform the task of project preparation. The state management units of the Ministry shall only implement projects on technical assistance to specialized strategies and policies, and projects on capacity and institution building. Projects on technical assistance to the formulation of loan projects will be implemented by loan project owners.

The preparation of contents of programs and projects on the official aid lists by project owners complies with Article 9.

2. Preparation of FNG capital-funded programs, projects and non-project aid amounts

a/ Through the International Cooperation Department, units shall take the initiative in proposing, discussing and preparing basic k contents and preliminary memorandum of understanding of donors, dossiers for aid receipt and submit the documents to the Minister for consideration and approval or report to the Government for comment.

b/ FNG aid program or project documents must fully express the project information and basic contents prescribed in the Regulation on Management of FNG aid sources, guiding documents and donors' requests. The basic contents of an aid document include:

- The brief description of the project;

- The necessity of the project (position of the project and matters to be tackled in the general context of the sector, each locality...);

- The project's long-term and short-term objectives;

- The outcomes of the project;

- The project's activities;

- The project's budget (allocated specifically for every activity and every year).

- The implementation plan (in case of necessity to phase out the project implementation);

- Analysis of the project effectiveness: Preliminary assessment of financial and social effectiveness, particularly the human resource development; environmental effectiveness; and the sustainability of the project in the subsequent development process.

c/ Units using non-project aid sources in the forms of direct budgetary support, package aid or via trust funds, FNG aid for research, exchange of information and experience, and professional knowledge and skill training, shall send reports to the Ministry via the International Cooperation Department, clearly stating the methods, objectives, contents and beneficiaries of aid and aid receipt, the implementation duration and total fund. Aid in kind (commodities, supplies and equipment) or cash must be clarified in quantity, list of aid commodities and estimated total value of aid in kind or cash.

3. Determination of foreign capital and domestic capital for program or project preparation

The International Cooperation Department shall coordinate with the Planning Department and the Finance Department in formulating capita] plans, based on proposals of project owners or aid recipients and preliminary agreements with donors.

Article 9. Contents of ODA-funded program and project documents

1. Investment programs or projects

a/ The contents of pre-feasibility and feasibility study reports and investment projects comply with the Government's Regulation on ODA Management and Use. Regulations on investment and construction management in the State Budget Law, the Investment Law, the Construction Law, the Bidding Law and their guiding documents and the regulations of donors;

b/ The program or project documents should be consistent with the approved detailed schemes, expressing fully the basic contents defined in Clause 4 of Article 7.

2. Technical assistance programs or projects

The contents of technical assistance programs or projects should be prepared with adequate dossiers prescribed in the Government's Regulation on ODA Management and Use, guiding documents and donors' requests and comply with the approved detailed schemes, fully expressing the basic contents defined in Clause 4 of Article 7.

Article 10. Contents of FNG capital- funded programs and projects

The contents of program or project documents should be fully prepared in accordance with the Regulation on Management and Use of FNG aid sources with the following principal details:

- The program's or project's objectives in conformity with the Government's priority.

- The feasibility of the program, project, with regard to project management and implementation capability; mechanisms of coordination in the course of implementation and capability of the Vietnamese side, especially in contributing domestic capital;

- The rationality of the structure of the program's or project's budget reserved for domestic and foreign specialists: domestic and overseas training, equipment and supplies, management costs and other expenses;

- Commitments, preconditions and other conditions (if any) of donors on aid amounts as well as commitments of the Vietnamese party to implementing the program or project;

- The effectiveness and sustainability of the program or project after completion.

Article 11. Program and project codes

Programs and projects, after being incorporated into the official list of priority programs and projects of the Ministry, will be granted project codes by the Ministry. Codes granted to every program or project will be stored at the International Cooperation Department for synthesis and monitoring of foreign aid sources of the Ministry.

The International Cooperation Department shall assume the prime responsibility for coordinating the formulation and submission to the Minister for promulgation of a Regulation on codes of programs and projects funded by foreign aid sources managed by the Ministry of Agriculture and Rural Development.

Chapter III

APPRAISAL AND APPROVAL OF ODA PROGRAMS AND PROJECTS

Article 12. Appraisal and approval of ODA programs and projects

1. Appraisal conditions

a/ Programs and projects falling under the approving competence of the Minister of Agriculture and Rural Development, being on the lists of the Ministry's programs and projects with mobilization priority and being agreed upon in writing by donors shall be appraised. Programs and projects outside such lists will be appraised only after they are agreed upon in principle in writing by the Minister.

The Minister shall approve programs and projects other than national important programs and projects or programs and projects accompanied with policy frameworks. For ODA programs and projects falling under the approving competence of the Prime Minister, the International Cooperation Department shall assume the prime responsibility for coordinating the prepation of adequate dossiers and documents for submission to the appraising agencies of the Government according to regulations.

b/ A valid appraisal dossier comprises:

- The written notice of the competent body on the official assistance list;

- The unit's written request for approval of the program or project;

- The program or project document (in both Vietnamese and a foreign language, if any), with 5 sets (at least one original set). The document contents shall be expressed in Vietnamese and a foreign language (if any) and conform to the approved detailed program or project scheme.

- Documents and written replies of concerned bodies in the course of program or project preparation and written consent and memoranda minutes of understanding with donors (or their representatives), reports of the expert teams conducting the appraisal at donors' request (if any);

- The project owner's financial statement for the last three years, with the certification of the managing agency (for programs and projects under the re-lending mechanism).

- The draft treaty or agreement on the project, which will be concluded between Vietnam's representative and donor's representative (if any).

2. Appraisal contents, process and time limits

a/ The contents, process and time limits of appraising investment programs and projects comply with the Government's Regulation on Management and Use of ODA sources and current laws on investment and construction management such as the Construction Law, the Bidding Law and their guiding documents, and donors' regulations.

b/ The contents, process and time limits of appraising technical assistance program or project documents comply with the Government's Regulation on Management and Use of ODA Sources and guiding documents of ministries or sectors.

c/ The appraisal and approval of documents on program- or sector-approached supports umbrella programs or projects, regional programs or projects of which Vietnam is a contracting party comply with the process defined at Point e of this Article.

d/ Project owners may not appraise their own technical assistance projects.

e/ The appraisal process:

- Step 1: Assessment of the validity of the submitted appraisal dossiers.

The validity of appraisal dossiers complies with the Regulation on ODA Management and Use and guiding documents. The document contents must conform to the contents of the documents approving the Ministry's list of aid requests.

- Step 2: Consultation with concerned agencies or units

After receiving adequate valid dossiers of project owners, the International Cooperation Department shall propose the from of appraisal, set up appraisal councils and send dossier sets enclosed with documents asking for comments to concerned agencies or units before the appraisal.

- Step 3: Appraisal

Units assuming the prime responsibility for appraisal may opt for either of two forms of appraisal (synthesis of written comments or comments presented at appraisal meetings) and conduct the appraisal of the document contents.

- Step 4: Approval

After completing steps 1, 2 and 3, the units assuming the prime responsibility for appraisal shall make reports on program or project appraisal and gather and send relevant documents together with the draft decisions approving the project contents to the Ministry's leadership for approval.

f/ Program and project appraisal time limits

The appraisal time limit must is 45 working days for investment programs and projects or 15 working days, for technical assistance projects after the receipt of complete and valid dossiers as prescribed at Point b. Clause 1 of this Article.

Within 10 days after a program or project is approved, the appraising unit shall coordinate with the project owner in compiling a dossier comprising the appraisal report, the program or project-approving decision (the notarized copies) and the approved program or project documents appended with a stamp on every two adjoining pages to the Government Office, the Ministry of Planning and Investment, the Ministry of Finance and concerned agencies.

3. Organization of appraisal

a/ The International Cooperation Department shall assume the prime responsibility for, and coordinate with the Planning Department, the Finance Department and units with the state management function in, organizing the appraisal.

b/ Appraisal participants are answerable to law and the Minister for their comments on programs and projects with foreign aid sources.

c/ Appraisal results will be expressed in the appraisal records enclosed with the dossiers prescribed at Point b. Clause 2 of this Article, and the draft decisions for submission to the Minister for approval.

Article 13. Fund for program or project preparation, formulation and appraisal

1. Funds for program or project preparation comply with the Government's Regulation on ODA Management and Use, specifically as follows:

a/ Fund for ODA program, project preparation and formulation to be allocated from the state budget will be estimated by the Ministry of Agriculture and Rural Development and included in its annual budget plan; the Planning Department will sum up funding needs, balance and arrange funds for projects of investment nature; the Finance Department will sum up funding needs, balance and arrange funds for technical assistance projects of administrative and non-business nature;

For programs or projects falling beyond the planning period, the Planning Department or the Finance Department shall, depending on their characteristics, prepare and submit documents to the Minister for sending to the Ministry of Planning and Investment or the Ministry of Finance, requesting capital advances from the central budget reserve sources;

b/ Funds for the preparation of programs and projects eligible for budget re-lending or lump­sum allocation by the State: The Planning Department will sum up funding needs, balance and arrange funds for projects of investment nature; the Finance Department will sum up funding needs, balance and arrange funds for technical assistance projects of administrative and non-business nature.

c/ Funds for the preparation of technical assistance projects (whole or partial funding support for program or project preparation): Project beneficiaries will prepare and submit funding estimates to the Ministry for inclusion in annual preparation capital plans;

d/ ODA capital via technical assistance projects for the preparation of investment programs and projects will be prepared by the International Cooperation Department in coordination with project owners and submitted to the Ministry according to plan;

2. The use of domestic capital for the preparation of programs and projects complies with the State Budget Law and the Government's decree on decentralization of management, estimation, implementation and settlement of the state budget. Depending on each program or project, domestic capital can be used for all or some of the expenses according to regulations and concluded documents.

3. Formulation and appraisal funds will be channeled from foreign aid sources or state budget capital already arranged for projects or from lawful funds of project-preparing units or project owners.

The appraisal fund, the regime of collection, remittance and use of fees for appraisal of investment projects comply with the investment and construction consultancy norms promulgated by the Minister of Construction and the Minister of Finance.

4. Program or project owners shall manage funds for the preparation, formulation and appraisal of programs or projects and pay the project- formulating or -appraising units according to regulations.

Chapter IV

APPRAISAL AND APPROVAL OF PROGRAMS AND PROJECTS AND FNG AID-FUNDED NON-PROJECT AID

Article 14. Appraisal and approval

1. A dossier submitted for appraisal and approval of program or project documents comprises:

a/ The written request of the program or project owner (aid-receiving agency, unit or organization) for approval;

b/ The original program or project documents in languages used by donors and the Vietnamese versions agreed upon between the program or project owner and the donor:

c/ The donor's written notification on commitments to provide aid or to consider provision of aid for the program or project;

d/ The memorandum of understanding or aid agreement between representative of aid-receiving agency, unit or organization and the donor's representative (if any);

e/ The written comments of concerned agencies, units and organizations on the aid program or project (if any);

f/ The copies of permits granted by the Committee for Non-Governmental Organizations to foreign non-governmental organizations; copies of operation registration papers of foreign non-governmental organizations (if any). If permits are not available, the project owners shall submit their written explanations to the Minister for consideration.

2. Appraisal and approval of non-project aid amounts

a/ Based on discussions and agreements with donors, the unit heads shall send reports to the Ministry via the International Cooperation Department for sum up and implementation and take responsibility before the Minister and law for activities related to the receipt of non-project aid amounts. The project- finance management of aid amounts complies with the State Budget Law, the Accounting Law, tax laws and the commitments already signed with donors.

b/ If the Ministry of Agriculture and Rural Development is a contracting party to the international agreement, to be- prepared documents include:

- The unit's written request for approval of aid receipt;

- The draft aid agreement between the donor and the Ministry (or the aid-receiving unit), clearly stating the aid contents, the names of the aid-providing organization and the aid-receiving unit, the list of aid goods, supplies and equipment and their estimated value or the total cash value.

c/ For emergency aid amounts, apart from the above requirements, the extent of damage and the essential demands to be immediately met should be clearly stated, in case of emergency.

3. Appraisal and approval process and time limits

a/ The International Cooperation Department shall act as the focal point assisting the Minister in receiving dossiers, appraising, submitting for approval FNG aid amounts for units of the Ministry according to regulations.

b/ The process and time limits of appraising and approving programs and projects under the approving competence of the Minister comply with the Regulation on Management of FNG Aid and guiding documents and are specified as follows:

- Within 5 working days after the receipt of complete and valid dossiers, the International Cooperation Department shall, depending on the characteristics and size of programs or projects, send documents (enclosed with the program or project dossiers) to concerned agencies, units and organizations for comment, and organize meetings to appraise the programs or projects.

- If appraisal is organized in the form of collecting written comments, within 15 working days after receiving the written requests of the International Cooperation Department, the concerned units shall give their written comments. If past the above-said time limit, they fail to give their written replies, they will be considered having agreed with the contents of documents.

- Within 10 working days after receiving the written comments of concerned agencies and organizations, the International Cooperation Department shall sum up the appraising opinions and propose the Minister to consider and approve the programs or projects or advise the Minister on the notification of reasons for disapproval and return the dossiers to program or project owners.

c/ The process and time limits of appraising and approving non-project aid amounts: Within 5 days after receiving the written requests (enclosed with valid dossiers) of the aid-receiving units, the International Cooperation Department shall make reports and propose the Minister to approve or send written requests to concerned units for examination of their dossiers of request for aid receipt.

The process and procedures for appraisal and approval of non-project aid amounts provided in the form of programs or projects comply with Item b above.

Article 15. Funds for program and project preparation, formulation and appraisal

1. Funds for program and project preparation comply with the Government's Regulation on Management of FNG Aids, specifically as follows:

a/ Fund for the preparation and formulation of FNG programs or projects will be proposed and submitted by units to the Ministry via the Planning Department or the Finance Department for consideration and inclusions in the Ministry's annual budget plan.

For programs or projects falling beyond the planning period, depending on their respective nature, the Planning Department or the Finance Department shall prepare and submit documents to the Minister for sending to the Ministry of Planning and Investment or the Ministry of Finance, requesting capital advances from the central budget reserve sources;

b/ Funds for the preparation of programs and projects entitled to state re-lending from the budget or lump-sum allocation: Depending on the characteristics of programs or projects, the Planning Department or the Finance Department shall assume the prime responsibility for, and coordinate with units, in balancing and allocating funds according to regulations of the Ministry of Finance.

2. The domestic capital for programs and projects complies with the State Budget Law and the Government's decrees on decentralization of the state budget management, estimation, implementation and settlement. Depending on each program or project, the domestic capital can be used to cover all or some of the expenses according to regulations and concluded documents.

3. Formulation and appraisal funds will be channeled from foreign aid sources or state budget capital already allocated to projects or from lawful funds of project-preparing units on project owners.

Depending on the characteristics of each program, project and aid amounts, the Planning Department and the Finance Department shall balance and allocate funds, based on the proposals of units assigned to prepare programs or projects, according to the State Budget Law.

Article 16. Approving competence of the Minister

The Minister shall approve programs, projects and non-project aid amounts with specific addresses, with a value not beyond the approval decentralization under the Prime Minister's regulations, without contents related to policy, law, administrative reform, culture and information, religion, defense and security, the import of used commodities or goods restricted from import under the Government's regulations.

For programs and projects falling under the approving competence of the Prime Minister, the International Cooperation Department shall assume the prime responsibility for. and coordinate with units in. fully preparing the prescribed dossiers and documents for submission to the appraising bodies of the Government according to regulations.

Chapter V

NEGOTIATION ON AND CONCLUSION OF TREATIES AND INTERNATIONAL AGREEMENTS AND PROGRAM OR PROJECT DOCUMENTS

Article 17. Concluding competence and authorities

1. The negotiation on and conclusion of treaties on foreign aid comply with the law on conclusion, accession to, and implementation of, treaties, guiding documents and other provisions of Liu.

2. Units negotiating and concluding treaties or international agreements in the name of the Ministry of Agriculture and Rural Development on foreign development assistance sources must be authorized in writing by the Minister.

3. Multilateral cooperation programs or projects (or regional projects involving various sectors and localities), of which the Ministry of Agriculture and Rural Development is a contracting party, can be authorized by the Minister to heads of units directly participating in negotiations on the contents related to the domains managed by the Ministry.

Article 18. Process of negotiation, conclusion and approval

1. Units compiling program or project documents shall submit them to the Minister via the International Cooperation Department for discussion with donors in order to identify programs, projects and aid sources for document compilation. For documents not falling under the concluding competence of the Minister, the International Cooperation Department shall assume the prime responsibility for preparing the dossiers and documents to be submitted to competent authorities for consideration.

2. For documents to be concluded under the competence of the Minister of Agriculture and Rural Development, the International Cooperation Department shall assume the prime responsibility for contacting donors in order to determine types of treaty or agreement.

3. Depending on types of to be concluded documents, based on the provisions of the Law on Conclusion. Accession to and Implementation of Treaties or the Ordinance on Conclusion and Enforcement of International Agreements and their guiding documents, the International Cooperation Department shall coordinate with concerned units in proposing the Minister to set up negotiation delegations and preparation of relevant documents.

4. Necessary dossiers to be submitted for approval and conclusion include any of the following documents: Treaty, Agreement, Memorandum of Understanding, Minutes of Agreement, Minutes of Discussions. Cooperation Program, Cooperation Plan (or otherwise titled) together with a letter of commitment of donor, project dossier and letter of authorization (if the signatory is authorized by his/her superior).

5. After conclusion of negotiations, the heads of negotiation delegations shall send reports to competent bodies for approval of negotiation results, contents and documents already agreed or concluded with foreign partners.

6. For programs or projects with negotiation delegations headed by agencies other than the Ministry of Agriculture and Rural Development, which is just a member, the International Cooperation Department shall coordinate with the project owners in preparing document contents related to the sector and recommend a list of negotiation participants of the Ministry for the Ministry leadership to approve, serving as a basis for participation in negotiations. After the conclusion of negotiations, it shall report to the Ministry and copy relevant documents and send them to participating members and concerned units for implementation.

7. The International Cooperation Department shall assume the prime responsibility for. and coordinate with project owners and concerned units in. organizing the signing of program, project documents as assigned by the Minister.

Article 19. Management of concluded documents, exchange of documents

1. Documents concluded by the Minister of Agriculture and Rural Development under the Prime Minister's authorization will have their originals archived at the Ministry's Office and their copies archived at the International Cooperation Department and related units.

2. The archival of, access to, exchange and provision of information, dossiers, documents and specimen articles with foreign parties comply with current state laws and regulations of the Ministry of Agriculture and Rural Development.

3. After programs or projects are concluded and approved and project directors are appointed, the project owners shall hand over all documents and papers related to the program or project implementation to the project directors.

4. When programs or projects are completed and put to use, project directors shall deposit at the Ministry the concluded documents and project dossiers according to law.

Chapter VI

MANAGEMENT OF PROGRAM AND PROJECT IMPLEMENTATION

Article 20. Division of responsibilities

1. The International Cooperation Department

To perform the tasks and exercise the powers over foreign aid sources as defined in the Minister of Agriculture and Rural Development's Decision No. 11/2008/QD-BNN of January 28, 2008, on the functions, tasks, powers and organizational apparatus of the International Cooperation Department and the provisions of this Regulation, specifically:

a/ To assume the prime responsibility for formulation and submission of legal documents and international treaties related to foreign aid sources within the sector to the Minister for promulgation;

b/ To assume the prime responsibility for. and coordinate with donors as well as concerned agencies and units in, preparing, formulating, appraising and approving negotiations, recommending implementing agencies and directors of foreign aid-financed programs and projects within the sector. For loan projects negotiated with donors by agencies other than the Ministry (according to documents on responsibility division by the Prime Minister), the International Cooperation Department shall submit to the Ministry's leadership lists of the Ministry's negotiation team members and act as the Ministry's chief delegate to join other ministries or sectors in negotiations:

c/ To recommend implementing agencies and directors of foreign aid-financed programs and projects within the sector;

d/ To guide, monitor, evaluate, sum up and periodically report to the Ministry's leadership and caucus commission on the management and use of foreign aid sources in the domains managed by the Ministry;

e/ To coordinate with donors and concerned agencies or units in the monitoring, evaluation, sum-up and periodical report according to regulations.

2. The Planning Department

To perform the tasks and exercise the powers over foreign aid sources as defined in the Minister of Agriculture and Rural Development's Decision No. 08/2008/QD-BNN on the functions, tasks, powers and organizational apparatus of the Planning Department;

To assume the prime responsibility for, and coordinate with the International Cooperation Department in. implementing the Regulation on strategies, planning, plans and development investment falling within the scope of management of the Ministry. To allocate domestic capital for foreign aid- financed investment projects of the Ministry.

3. The Finance Department

To perform the tasks and exercise the powers over foreign aid sources as defined in the Minister of Agriculture and Rural Development's Decision No. 09/2008/QD-BNN of January 28, 2008, on the functions, tasks, powers and organizational apparatus of the Finance Department;

To assume the prime responsibility for, and coordinate with the International Cooperation Department in. implementing the Regulation on finance, accounting and pricing falling within the scope of management of the Ministry. To assume the prime responsibility for allocating domestic capital for foreign aid-funded administrative and non-business projects of the Ministry. To formulate and promulgate regulations and guidance on the management of foreign aid sources placed under the Ministry's state management. To verify the settlement of programs, projects and non-project aid amounts every year and upon program or project completion.

4. The Organization and Personnel Department

To perform the tasks and exercise the powers over foreign aid sources as defined in the Minister of Agriculture and Rural Development's Decision No. 13/2008/QD-BNN of January 28, 2008, on the functions, tasks, powers and organizational apparatus of the Organization and Personnel Department;

To assume the prime responsibility for, and coordinate with the International Cooperation Department in, implementing the Regulation on organizational apparatus, payroll, personnel, training and retraining, emulation and commendation, disciplining and policies towards cadres, officials, public servants under the Ministry's management.

5. The Ministry's Inspectorate

To perform the tasks and exercise the powers over foreign aid sources as defined in the Minister of Agriculture and Rural Development's Decision No. 14/2008/QD-BNN of January 28, 2008, on the functions, tasks, powers and organizational apparatus of the Ministry's Inspectorate;

To assume the prime responsibility for and coordinate with the International Cooperation Department and functional bodies in, conducting inspection and, examination to prevent and combat corruption in the use of foreign capital sources.

6. State management agencies under the Ministry

Depending on their respective functions, tasks and powers, specialized management units shall assume the prime responsibility for. or coordinate with the International Cooperation Department and concerned units in. performing their tasks defined in this Regulation.

7. Units assigned to act as program or project owners (investors for investment projects)

Units assigned by the Minister to act as program or project owners shall organize the management and implementation of programs or projects and set up program or project implementation management sections. The unit heads are answerable to the Minister for all matters related to the management and implementation of assigned programs or projects.

The Agricultural Project Management Unit, the Forestry Project Management Unit and the Central Irrigation Project Management Unit, which are assigned to act as owners (investors) of loan programs or projects and technical assistance projects shall assist in the implementation of loan capital programs and projects financed by foreign aid sources according to the Minister's assignment.

Article 21. Organization of apparatuses and human resources for implementation of ODA programs and projects

1. The Project Steering Committee (also referred to as the Program or Project Management Board)

Depending on the requirements, contents and scale of each project, the Minister shall issue a decision to set up the Project Steering Committee. The Organization and Personnel Department shall assume the prime responsibility for, and coordinate with the International Cooperation Department in. recommending the composition, tasks and functions of the Project Steering Committee and submitting them to the Minister for decision.

2. Program or project owners (project owners)

After being notified of the official aid list, the International Cooperation Department shall propose the Minister to decide to assign a unit of the Ministry to act as project owner (investors for investment projects). The functions and tasks of project owners comply with the Government's Regulation on Management and Use of ODA and other current regulations.

3. Program or project management units (project management units)

a/ The program or project management units (for ODA programs or projects) or the coordinating units (for FNG projects) set up by the Minister or project owners shall manage and implement the projects. The project management units will be set up, based on the functions, tasks and powers of the managing agencies and project owners, on investment decisions or program or project-approving decisions and on international treaties or agreements concluded with donors.

b/ The functions, tasks and organizational structure of project management units comply with the Regulations on ODA Management and Use and relevant guiding documents.

c/ The key personnel of a project management unit will includes the director (or the project management unit head), deputy directors (if any), chief accountant appointed or relieved from duty by the agency deciding on the establishment of the project Management unit. Other staff members of the project management unit will be recruited and decided by the project director as provided for in the Regulation on ODA Management and Use, the Regulation on Management of FNG Aid Sources and guiding documents.

4. Project management unit directors

Project Management Unit directors (project directors) are heads of Project management units, taking full responsibility for activities of the project management units before project owners and law, regarding the management and organization of the implementation of projects under concluded documents, regulations of the State and donors. Project owners shall appoint and relieve from duty project management unit directors after consulting the International Cooperation Department and the Organization and Personnel Department.

5. Owners of sub-projects (or components, if any) of projects managed by the Ministry of Agriculture and Rural Development: Being authorities deciding on investment in sub-projects in localities or domains, they shall direct and take full responsibility for the preparation, formulation, appraisal and approval of mini-projects and the implementation thereof.

6. Owners of component projects of umbrella projects managed by the Ministry of Agriculture and Rural Development: To be set up by sub-project owners and tasked to manage and organize the performance of all tasks and powers, and take responsibility before project owners (investors) for the assigned sub-projects or project components according to project documents, regulations of the State and rules of donors.

Article 22. Organization of implementation of FNG programs and projects

Based on the requirements, contents and scale of their respective programs or projects as well as on the agreements with donors, project owners shall formulate regulations on program or project management to ensure their implementation and take responsibility for the management of raised resources; if necessary, they can send documents via the International Cooperation Department to the Minister for consideration and decision.

After programs or projects are approved, project owners shall complete the dossiers and procedures for aid certification according to the order and time set by the Ministry of Finance.

Article 23. Adjustment and modification of contents of programs, projects

In the course of program or project implementation, modifications or adjustments, if so required, will be effected as follows:

a/ Project owners (or aid-receiving units) shall send their written explanations of adjustment details and plans to the International Cooperation Department for appraisal before submitting them to the Minister for approval or to competent bodies for comment.

b/ The forms of appraisal comply with the Government's Regulation on ODA Management and Use and Regulation on FNG Aid Management and guiding documents.

c/ The decision on program or project adjustment complies with the Government's Regulation on ODA Management and Use and Regulation on FNG Aid Management and guiding documents. The modification or adjustment of concluded international treaties or agreements must comply with the Law on Accession to. Conclusion and Enforcement of Treaties and the documents guiding the order and procedures for conclusion and enforcement of treaties, the Ordinance on Conclusion and Enforcement of International Agreements, and its guiding documents.

Chapter VII

IMPLEMENTATION MONITORING AND EVALUATION

Article 24. Implementation monitoring and evaluation

1. The International Cooperation Department shall act as the Ministry's local point body in organizing monitoring, guiding project owners to conduct examination and evaluation, or, when necessary, proposing the Ministry's leadership to decide on hiring consultants (or coordinating with donors) to evaluate the implementation programs and projects managed and implemented by the Ministry.

2. Project owners shall direct Project Management Units to strictly realize the contents of approved programs or projects; monitor and inspect operations of programs or projects in terms of implementation schedule, capital disbursement and effectiveness, periodically report thereon to the Minister (via the International Cooperation Department) and agencies performing the state management of ODA and FNG aids and propose solutions, if necessary, according to regulations.

3. Project Management Units shall directly manage the project implementation, organize annual, mid-term and final evaluation; monitor the implementation progress, capital disbursement and effectiveness and periodically report thereon to the project owners and state management bodies according to regulations.

4. The fund for inspections, evaluation and pre-acceptance checks coming from foreign development assistance sources or Vietnamese domestic capital should be specified in program or project documents.

5. Expenses for inspection, monitoring and evaluation by managing agencies shall be allocated by the Finance Department, based on the proposal of the International Cooperation Department according to annual plans approved by the Minister.

Article 25. Reporting regime

Project owners shall make periodical or extraordinary reports on the program or project implementation and financial reports according to regimes and forms set by functional bodies and send them to the International Cooperation Department, the Planning Department, the Finance Department and concerned agencies or units.

Reports on ODA programs and projects will be made on the quarterly, biannual, annual, mid­term and project completion basis in writing and electronically according to regulations and set forms. Group-A investment projects shall prepare annual reports according to set forms and send them to the International Cooperation Department and concerned bodies and units of the Ministry and concerned state agencies for summing up.

Reports on FNG programs and projects will be made biannually, annually and upon project completion. Project owners shall prepare reports in writing and electronically according to regulations and set forms and send them to the International Cooperation Department, concerned agencies and units and state agencies for sum-ups.

Article 26. Pre-acceptance check, exploitation of program and project results

1. Construction investment programs and projects

Project owners shall strictly observe state regulations on pre-acceptance check, handover of parts or all, inventory, draw up plans for the handling of, register assets and settle aid sources according to the law on investment in capital construction and the State Budget Law, other current regulations of the State and rules of donors.

2. Technical assistance programs and projects

Project owners shall organize the pre-acceptance check, settlement, handover, exploitation and use thereof according to law; and apply measures to maintain and bring into full play the effectiveness of these programs or projects.

3. All programs and projects, before being completed and put to use (for construction investment projects) or after being completed (for technical assistance projects), must be pre-acceptance checked, settled and put to use strictly according to this Article and legal provisions on the use of foreign investment sources, ensuring their sustainability.

4. Funds for the pre-acceptance check of programs and projects must be stated in project documents according to the Government's Regulation on ODA Management and Use and Regulation on Management of FNG Aids.

Article 27. Examination and inspection of the receipt, management and use of foreign aid sources

1. Investors and project management units shall regularly and periodically examine the receipt, management and use of foreign aid sources for programs and projects according to law and regulations of the Ministry.

2. When necessary, the Minister shall decide to set up teams to examine and inspect the implementation of programs and projects financed by foreign aid sources according to law.

3. Units and individuals assigned to mobilize, attract and use foreign aid sources, that let negative practices happen or violate regulations on the management of ODA. FNG aid and non-project activities, shall, depending on the severity of their violations, be disciplined, administra­tively handled or examined for penal liability according to law.

Chapter VIII

IMPLEMENTATION PROVISIONS

Article 28. Effect

1. This Circular takes effect 45 days from the date of its signing and replaces the contents related to Decision No. 45/2004/QD-BNN of September 30, 2004, of the Minister of Agriculture and Rural Development, promulgating the Regulation on Management and Use of Foreign Aid Sources within the agriculture and rural development sector.

2. Foreign aid source-funded programs and projects underway and completed before the effective date of the Regulation continue to comply with Decision No. 45/2004/QD-BNN of September 30. 2004. of the Minister of Agriculture and Rural Development. For jobs to be done after this Circular takes effect, project owners shall propose necessary adjustments and perform them under the new Regulation.

Article 29. Implementation responsibilities

The director of the Ministry Office, the director of the International Cooperation Department and heads of units under the Ministry shall implement this Circular.

Any problems arising in the course of implementation should be promptly reported to the International Cooperation Department for sum-up and submission to the Minister who shall consider and decide on amendments and supplements to suit the practical situation.