Thông tư 01/2014/TT-BKHDT

CIRCULAR

GUIDELINES FOR THE GOVERNMENT'S DECREE NO. 38/2013/ND-CP DATED APRIL 23, 2013 ON MANAGEMENT AND USE OF OFFICIAL DEVELOPMENT ASSISTANCE (ODA) AND CONCESSIONAL LOANS OF DONORS

Pursuant to the Government's Decree No. 38/2013/ND-CP dated April 23, 2013 on management and use of Official Development Assistence (ODA) and concessional loans of donors;

Pursuant to the Government's Decree No. 116/2008/ND-CP dated November 14, 2008 on defining the functions, tasks, powers and organizational structure of the Ministry of Planning and Investment;

At the request of the Director of International Trade Department;

The Minister of Planning and Investment promulgates a Circular on guidelines for the Government's Decree No. 38/2013/ND-CP dated April 23, 2013 on management and use of Official Development Assistence (ODA) and concessional loans of donors.

Chapter 1.

GENERAL PROVISIONS

Article 1. Scope

This Circular provides guidelines for the Government's Decree No. 38/2013/ND-CP dated April 23, 2013 on management and use of Official Development Assistence (ODA) and concessional loans of donors (hereinafter referred to as the Decree No. 38/2013/ND-CP) according to Clause 1 Article 70 of the Decree No. 38/2013/ND-CP.

Article 2. Donors of ODA and concessional loans

Donors of ODA include:

1. Bilateral donors:

The governments of Ireland, India, Austria, Poland, Belgium, Canada, Kuwait, Denmark, Germany, Netherlands, Hungary, Italia, Luxemburg, Malaysia, the United States, Norway, Japan, New Zealand, Australia, Finland, France, Czech, Spain, Thailand, Sweden, Switzerland, China, Singapore, and India.

2. Multilateral donors:

a) International financial institutions:

World Bank, International Monetary Fund (IMF), Asia Development Bank (ADB), OPEC Fund for International Development, Kuwait fund, Arab Investment Fund, Nordic Development Fund (NDF), Nordic Investment Bank (NIB).

b) International organizations and inter-governmental organizations:

European Union, United Nations High Commissioner for Refugees (UNHRC), Joint United Nations Programme on HIV/AIDS (UNAIDS), UN Development Programme (UNDP), UN Environment Programme (UNEP), UN Human Settlement Programme (UN-HABITAT), UN Volunteers (UNV), UN Women, United Nations Conference on Trade and Development (UNCTAD), United Nations Educational, Scientific and Cultural Organization (UNESCO), Food and Agriculture Organization of the United Nations (FAO), International Labour Organization (ILO), World Health Organization (WHO), International Organization for Migration (IOM), United Nations Industrial Development Organization (UNIDO), United Nations Children’s Fund (UNICEF), United Nations Population Fund (UNFPA), International Fund for Agricultural Development (IFAD), Global Environment Fund (GEF), United Nations Capital Development Fund (UNCDF), Global Fund to Fight AIDS, Tuberculosis, and Malaria, International Trade Center (ITC), United Nations Office on Drugs and Crime (UNODC).

3. Other donors that provide ODA and concessional loans for the government of Socialist Republic of Vietnam.

Article 3. Management and use of non-project aid

1. Non-project aid includes:

a) Separate aid that do not form a specific project in cash or in kind, goods, experts, conventions, seminars, training courses, research, survey.

b) Emergency aid to relieve suffering in the event of natural disasters, epidemics, or other calamities that persist for up to 03 months from the occurrence of the emergency.

2. The management and use of non-project aid are similar to those of the programs and projects (hereinafter referred to as projects) in the Decree No. 38/2013/ND-CP and this Circular, except for the cases in Clause 4 Article 12 of this Circular.

Article 4. Access to ODA and concessional loans of the private sector mentioned in Clause 1 Article 9 of the Decree No. 38/2013/ND-CP

1. In the cases mentioned in Point a Clause 1 Article 9 of the Decree No. 38/2013/ND-CP:

Owners of projects in the private sector shall send applications for capital loans to domestic financial institutions and credit institutions in accordance with the regulations on on-lending of such financial institutions and credit institutions; international agreements on such capital sources and the loan-granting procedures of financial institutions and credit institutions must be adhered to.

Domestic financial institutions and credit institutions shall consider granting loans in accordance with current regulations of law on on-lending foreign loans of the government.

2. For execution of projects that are given priority when using ODA and concessional loans of the government (on-lent by government budget) mentioned in Point b Clause 1 Article 9 of the Decree No. 38/2013/ND-CP:

Regulations on on-lending foreign loans of the government and other applicable regulations of law shall apply.

3. In the cases mentioned in Point c Clause 1 Article 9 of the Decree No. 38/2013/ND-CP:

Owners of projects in the private sector shall make proposals and execute their projects in accordance with applicable regulations of law on investment in the form of Public-Private Partnerships.

4. In the cases mentioned in Point d Clause 1 Article 9 of the Decree No. 38/2013/ND-CP:

a) For the projects under construction that are enumerated in the funding list:

The governing body shall make an announcement of the project that provides support for the private sectors in order for the eligible entities in the private sectors (hereinafter referred to as private entities) to propose their subprojects (for master projects) or modules of the projects they can execute. The governing body shall choose some subprojects or modules to formulate a project proposal and follow the next procedures in the Decree No. 38/2013/ND-CP and this Circular.

b) If the project is under a particular International Agreement on ODA and concessional loans that has been concluded:

If the private entities that participate in the project are determined, the governing body of the project shall request them to execute the project in accordance with the concluded International Agreement on ODA and concessional loans.

The governing body shall propose projects that provide support for the private sectors, the eligible entities in the private sectors shall propose their subprojects (for master projects) or components of the projects they execute. The governing body of the project shall decide the participation of the private entities in the execution of the project according to the concluded International Agreement on ODA and concessional loans.

Chapter 2.

COMPILING AND APPROVING THE FUNDING LIST

Article 5. Compiling and approving the funding list as mentioned in Article 13 of the Decree No. 38/2013/ND-CP

1. Considering the cooperation plan and the fields given priority by the government and donors in each period, which are announced by the Ministry of Planning and Investment, considering the demand for ODA and concessional loans, the governing body shall send the Ministry of Planning and Investment a written request for aid together with a Proposal of project using the form in Appendix Ia enclosed herewith or a Proposal of non-project aid using the form in Appendix Ib enclosed herewith (hereinafter referred to as Proposal). The proposal shall be made into 08 copies in Vietnamese and English, every of which must bear the seal of the governing body.

2. The Ministry of Planning and Investment shall take charge and cooperate with the Ministry of Finance and relevant bodies in discussing the selection of proposals with the donors according to:

a) The fields given priority, the ODA and concessional loans that are raised according to Article 7 and Article 11 of the Decree No. 38/2013/ND-CP;

b) The priority given to the donors in each period.

3. After selecting appropriate proposals, the Ministry of Planning and Investment shall request governing body and the donors to cooperate in formulating a project outline using the form in Appendix IIa or the non-project aid outline using the form in Appendix IIb of the Decree No. 38/2013/ND-CP (hereinafter referred to as outline).

The governing body of the master project shall cooperate with the governing bodies of subprojects in formulating the outline using the form in Appendix IIa enclosed with the Decree No. 38/2013/ND-CP which specifies the rights and obligations of the governing body of the master project, the its leading role in coordinating the joint operations of the master project; rights and obligations of governing bodies of the subprojects, their roles in cooperating with the governing body of the master project, and their responsibility for the subproject they execute.

The outline of the master project must specify:

a) Contents of the subprojects, including their names, governing body, owners, primary targets and results, deadlines, limits on capital, domestic financial mechanism and capital sources, prior tasks (if any);

b) Modalities of cooperation, management, and execution of the master project and subprojects.

4. If the funding list is within the competence of the Prime Minister as mentioned in Clause 1 Article 14 of the Decree No. 38/2013/ND-CP:

a) The governing body shall send a dossier to the Ministry of Planning and Investment, which consists of:

- A written request that the Ministry of Planning and Investment submit the funding list to the Prime Minister for approval;

- The outline of the project or non-project aid, which is made into 08 copies in Vietnamese and English and bears the seal of the governing body;

- Documents about the ability to accumulate ODA and concessional loans from donors according to Clause 6 of this Article. The documents in other languages must be enclosed with Vietnamese translations.

b) The funding list shall be compiled and approved in accordance with Clause 3 Article 13 of the Decree No. 38/2013/ND-CP.

5. If the funding list is within the competence of the governing body as mentioned in Clause 2 Article 14 of the Decree No. 38/2013/ND-CP:

a) The governing body shall send a dossier to the Ministry of Planning and Investment, the Ministry of Finance, and relevant bodies, which consists of:

- The outline of the project or non-project aid, which is made into 08 copies in Vietnamese and English and bears the seal of the governing body;

- Documents about the ability to accumulate ODA and concessional loans from donors according to Clause 6 of this Article. The documents in other languages must be enclosed with Vietnamese translations.

b) The funding list shall be compiled and approved in accordance with Clause 4 Article 13 of the Decree No. 38/2013/ND-CP.

6. Documents about the ability to accumulate ODA and concessional loans from donors are any of the documents below:

a) Documents about cooperation programs, national cooperation strategies of the donors showing that the project or non-project aid is enumerated in the list of projects under consideration;

b) Agreements on aid capacity between Vietnamese bodies/organizations and representatives of the donors;

c) Official Dispatches from the donors to Vietnamese bodies/organizations about the commitments to provide assistance or the aid capacity.

Article 6. Compiling and approving funding lists in exceptional cases

1. Where the donor or ODA or concessional loans has not had a program for cooperation in development with Vietnam: by getting information about the policies and fields given priority by the donor, the governing body shall send the Ministry of Planning and Investment the request for aid together  with the proposal specified in Clause 1 Article 5 of this Circular. The next steps are specified in Clause 3 and Clause 4 Article 13 of the Decree No. 38/2013/ND-CP Clauses 3, 4, 5, and 6 Article 5 of this Circular.

2. If the donor proactively makes a proposal of provision of aid for the project or non-project aid:

a) The governing body shall send a written request together with a dossier to the Ministry of Planning and Investment, which consists of:

- The outline of the project or non-project aid, which is made into 08 copies in Vietnamese and English and bears the seal of the governing body;

- Documents about the ability to accumulate ODA and concessional loans from the donor according to Clause 6 Article 5 of this Circular. The documents in other languages must be enclosed with Vietnamese translations.

b) Within 05 working days, the Ministry of Planning and Investment shall send the Ministry of Finance and relevant bodies written request for opinions about the project outline.

c) Within 15 working days from the receipt of the written request for opinions, the Ministry of Finance and relevant bodies shall send their written opinions to the Ministry of Planning and Investment.

d) Within 15 working days from the receipt of the opinions from relevant bodies:

- If the outline is satisfactory, the Ministry of Planning and Investment shall aggregate the opinions and request the Prime Minister to decide the approval for the funding list, or request the governing body to approve the funding list if the list is within its competence.

- If the outline is not satisfactory, within 05 working days from the receipt of opinions, the Ministry of Planning and Investment shall request the governing body to cooperate with the donor to complete the outline, which is the basis for considering the approval for the funding list.

3. For projects and urgent non-project aid aimed for disaster recovery, epidemic prevention, or unusual calamities:

a) The governing body shall send the Ministry of Planning and Investment and relevant bodies the outline and the donor’s written request that the Ministry of Planning and Investment request the Prime Minister to apply simplified procedures for approving the funding list.

b) Simplified procedures:

- Within 05 working days from the receipt of the written request from the competent authority, relevant bodies shall send their written opinions to the Ministry of Planning and Investment. After this deadline, the bodies that do not offer their opinions are considered to concur with the request of the governing body.

- Within 05 working days from the receipt of opinions for relevant bodies, the Ministry of Planning and Investment shall request to the Prime Minister to consider and decide.

Article 7. Regulations on the Prime Minister’s competence to approve the funding list mentioned in Points c, d, and dd Clause 1 Article 14 of the Decree No. 38/2013/ND-CP

1. ODA grants are projects or non-project aid funded by ODA grants.

2. Technical assistance in preparation of projects funded by ODA and concessional loans are technical assistance via projects or non-project aid for the purpose of preparation of the projects funded by ODA and concessional loans with the operations and budget for preparation specified in Clause 1 Article 3 of the Decree No. 38/2013/ND-CP.

3. Aid for purchases of goods under the management of the State are the equipment, supplies, raw materials, bio-chemical products, and other products banned from import subject to conditional export/import as prescribed by the government of regulatory bodies.

Article 8. Prior tasks mentioned in Article 17 of the Decree No. 38/2013/ND-CP

Depending on the prior tasks in the Outline enclosed with the funding list approved by a competent authority, the governing body and the project owner shall carry out the following tasks:

1. Establishment of the project management board mentioned in Point a Clause 1 Article 17 of the Decree No. 38/2013/ND-CP:

a) The governing body shall issue a decision on the project owner according to Article 9 of this Circular;

b) The project owner or the governing body that acts as a project owner shall establish a project management board according to Article 15 of this Circular. The project management board shall assist the project owner in preparation of the project, including preparing the documentation, completing the application to follow the procedures for appraisal and ratification of the documentation, formulating a policy framework for relocation, preparing a bidding plan, bidding documents, invitations to tender, and performing other tasks given by the governing body and the project owner;

c) After the project documentation is approved by a competent authority, the governing body or the project owner shall consider improving the organizational structure of the project management board by giving additional functions or tasks to the existing project management board that was established as prescribed in Point a Clause 1 of this Article, or decide to establish a new project management board that meets the requirements in Article 15 and Article 16 of this Circular.

2. Tasks mentioned in Point a Clause 2 Article 17 of the Decree No. 38/2013/ND-CP:

If the project is funded by ODA and concessional loans under a particular international agreement: the governing body shall cooperate with the authority in charge of negotiation to reach an agreement with the donor on the progress and the tasks mentioned in Point a Clause 2 Article 17 of the Decree No. 38/2013/ND-CP which are the basis for all parties to initiate the performance of such tasks right after the negotiation is concluded.

3. The budget for the performance of such tasks shall be provided by the capital for preparation of the project mentioned in Article 23 of the Decree No. 38/2013/ND-CP the counterpart capital for preparation of the project mentioned in Article 43 of the Decree No. 38/2013/ND-CP and other capital sources provided by the donor via technical assistance in preparation of the project.

Chapter 3.

PREPARATION, ASSESSMENT, AND APPROVAL OF PROJECT DOCUMENTATION

Article 9. Governing body’s Decision on project owner mentioned in Clause 1 Article 20 of the Decree No. 38/2013/ND-CP

Pursuant to the competent authority’s Decision on approval for the funding list, within 10 working days, the governing body shall issue a decision on the project owner, which specifies:

1. Name of the project or non-project aid;

2. Name of the project owner;

3. Basic information about the project owner;

4. Tasks and entitlements of the project owner with regard to the preparing, appraising, and approving the documentation of the project or non-project aid are specified in Article 21 of the Decree No. 38/2013/ND-CP; Tasks and entitlements of the project owner with regard to management of execution of the project or non-project aid are specified in Article 38 of the Decree No. 38/2013/ND-CP

Article 10. Procedures for appraisal of project documentation mentioned in Point b Clause 3 Article 25 of the Decree No. 38/2013/ND-CP

1. The governing body shall appoint one of its affiliate as the appraising body.

If the project is a master project, the governing body of the master project shall appraise its documentation in cooperation with governing bodies of subprojects. After the documentation of the master project is approved by a competent authority, governing bodies of subprojects shall appraise the documentation of subprojects in accordance with decision on approval for the master project documentation.

2. Pursuant to Article 26 of the Decree No. 38/2013/ND-CP on the application for appraisal of project documentation, the project owner shall submit 08 sets of application, at least one of which is the original set, to the appraising body. The documents in other languages must be enclosed with Vietnamese translations.

3. Within 03 working days from the receipt of the satisfactory application, the appraising body, via the governing body, shall send the application together with a written request for opinions about the project documentation to the Ministry of Planning and Investment, the Ministry of Finance, and relevant bodies. If the application fails to meet the requirements in Article 26 of the Decree No. 38/2013/ND-CP the appraising body shall request the project owner to complete the application before the appraisal is carried out.

4. Within 12 working days from the receipt of the application and the written request for opinions from the governing body, the bodies that receive such requests as mentioned in Clause 3 of this Article must send the written opinions to the appraising body via the governing body.

5. Within 05 working days from the receipt of written opinions by the deadline mentioned in Clause 4 of this Article, the appraising body shall aggregate the opinions, make an appraisal report that specify the assenting opinions and dissenting opinions.

During the appraisal, the appraising body must consider the appraisal procedures and progress of the donor to ensure harmony and effective cooperation, consider the agreements with the donor, opinions of the donor or the donor’s representative. The appraising body is entitled to request the project owner to provide explanation, additional documents, and hold an appraisal convention or meetings to clarify the appraisal contents if necessary.

If the project documentation fails to meet the requirements, the appraising body shall notify the project owner of necessary complements and the deadline for submitting them to the appraising body in order to take the next steps.

6. According to the conclusion of the appraisal report, the appraising body shall perform the following tasks:

a) Where the project is within the competence of the Prime Minister:

- If the project documentation is satisfactory, the appraising body shall draft a report, a decision on approval for the project documentation, and send them together with the appraisal report to the governing body; then the governing body shall submit them to the Prime Minister for consideration and decision.

- If the project documentation is not satisfactory, the appraising body send a notification to the governing body, requesting the governing body to cooperate with the Ministry of Planning and Investment in asking for the Prime Minister’s decision on removing such project from the funding list.

b) Where the project is within the competence of the governing body:

- If the project documentation is satisfactory, the appraising body shall draft a report, a decision on arpproval for the project documentation, and send them together with the appraisal report to the governing body for consideration and decision.

- If the project documentation is not satisfactory, the appraising body send a notification to the governing body, requesting the governing body to cooperate with the Ministry of Planning and Investment in asking for the Prime Minister’s decision on removing such project from the funding list that is within the competence of the Prime Minister, or requesting the governing body to decide the removal of such project from the funding list if the funding list is under the authority to approve of the governing body.

Article 11. Rules for appraisal of project documentation mentioned in Point b Clause 3 Article 25 of the Decree No. 38/2013/ND-CP

1. The appraisal of the project documentation must take into account the suitability for the Outline, the comparison between the documentation of the project and non-project aid with the Decision to approve the funding list issued by a competent authority as mentioned in Article 18 of the Decree No. 38/2013/ND-CP  If a change to the contents of the Decision to approve the funding list is made, the governing body shall follow the regulations in Article 19 of the Decree No. 38/2013/ND-CP.

2. If the project also includes the technical assistance module and investment module, the following aspects of the investment module must be appraised apart from the aspects mentioned in Article 12 of this Circular:

a) The rationality of the investment scale, the technological plan, and quality standards.

b) Assess the feasibility of the following factors (if any):

- The plan for the location and land use; the scheme for using national resources;

- The fundamental design.

- The solutions for environment protection, relocation plans; solutions for resolving social issues of the project.

- The factors related to national defense and security; fire safety.

Article 12. Contents of appraisal of project documentation mentioned in Clause 2 Article 25 of the Decree No. 38/2013/ND-CP

1. Contents of appraisal of documentation a technical assistance project:

According to the application for appraisal of the technical assistance project documentation mentioned in Article 26 of the Decree No. 38/2013/ND-CP the appraisal must clarify:

a) The rationality of the project, in particular:

- The context and necessity.

- Targets of the project compared to priority polices of the State, the Ministries, and local authorities.

- Intended outcomes or products compared to the project targets.

- Each part and the role of each part in producing the outcomes or products.

- Beneficiaries.

- Mechanism for allocating budget (ODA grants, counterpart capital) to various operations including domestic and international advisors, domestic and foreign training, equipment and supplies, administrative expense, and other expenses.

b) The feasibility of the project with regard to:

- Resources (finance, equipment, experts, and other elements) for the whole project and each operation.

- Scale and capital sufficiency rate of the project (ODA grants, counterpart fund), domestic financial mechanism applied to the project.

- Execution time.

- Solutions for executions, including prior tasks (if any).

- Organization, management, and execution of the project (including financial management and cooperation mechanism).

- Vietnam’s ability to meet the donor’s requirements.

- Plans and measures for supervising, assessing, and boosting the project progress.

- Effects of the project.

- Risks and risk reduction measures.

c) The sustainability of the project with regard to:

- Necessary factors for ensure the effects of the project after completion.

- Commitments or conditions of the donor and Vietnam’s party for ensuring the sustainability of the project.

2. Contents of appraisal of documentation of a program

The contents of appraisal of documentation of a program are similar to those prescribed in Clause 1 of this Article. The links, mechanism for cooperation among the fields, sectors, territories, and entities in achieving certain targets, and results of the program must be clarified.

3. Contents of appraisal of documentation of a master project and subprojects

The contents of appraisal of documentation of the master project and subprojects are similar to those prescribed in Clause 1 of this Article. The rationality and feasibility of the project must also be assessed, in particular:

a) The relation between primary operations of the master project and primary operations of subprojects;

b) The mechanism for capital distribution (ODA, concessional loans, counterpart capital) among the master project and subprojects;

c) The methods for execution and management of the master project.

4. Contents and procedures for appraisal of non-project aid

a) If the non-project aid is worth below USD 20,000, the governing body shall consider approving such non-project aid pursuant to the Decision to approve the funding list issued by a competent authority instead of carrying out an appraisal;

b) If the non-project aid is worth USD 20,000 or more, the documentation of the non-project aid shall be appraised in accordance with the procedures and rules specified in Article 10 and Article 11 of this Circular. The appraisal documents are specified in Article 26 of the Decree No. 38/2013/ND-CP where the documentation of the non-project aid is made by elaborating the contents of the outline of the non-project aid in the funding list approved by a competent authority. The appraisal contents are similar to those prescribed in Clause 12 of this Article. If the non-project aid consists of only investment activities or includes investment activities, the appraisal shall be carried out in accordance with Point a Clause 3 Article 25 of the Decree No. 38/2013/ND-CP.

Article 13. Approving project documentation mentioned in Clause 2 and Clause 3 Article 27 of the Decree No. 38/2013/ND-CP

1. After the appraisal is finished, the appraising body shall send an appraisal report to the governing body; the governing body shall request a competent authority to consider approving the project documentation according to Clause 2 Article 27 of the Decree No. 38/2013/ND-CP.

2. Within 05 working days from the day on which the project documentation is approved by the competent authority, the governing body shall notify the result to the donor and the project owner, send the Ministry of Planning and Investment, the Ministry of Finance, and relevant bodies the decision on approval (the original copy or a notarized copy) together with the approved documentation of the project, which bear the seals of the governing body. If the project is a master project, the governing body of the master project and governing bodies of subprojects must inform each other of the approval result.

Chapter 4.

MANAGEMENT OF PROJECT EXECUTION

Article 14. Modalities of project management mentioned in Article 36 of the Decree No. 38/2013/ND-CP

1. Where the project mentioned in Clause 1, Clause 2 Article 36 of the Decree No. 38/2013/ND-CP is under the direct management of the governing body or the project owner:

a) If a project management board is established, the project owner or the governing body that acts as a project owner shall issue a decision on establishment of a project management board in accordance with Article 39 of the Decree No. 38/2013/ND-CP;

b) If a project management board is not established, the project owner or the governing body that acts as a project owner shall make use of the existing apparatus to management the execution of the project in accordance with Article 42 of the Decree No. 38/2013/ND-CP;

c) If the governing body acts as a project owner, the governing body must issue a document specifying the tasks and entitlements of the governing body and the project owner role in management and execution of the project in order to ensure objectivity and accountability.

2. Where a advisory organization is hired to manage the project according to Clause 3 Article 36 of the Decree No. 38/2013/ND-CP:

a) According to the modalities of hiring an advisory organization to manage the project in the project documentation approved by a competent authority, the project owner shall hire an advisory organization to act as a project management board or to manage part of the project.

b) The selection of an advisory organization and conclusion of a project management contract therewith must be carried out in accordance with applicable regulations of law. The project management contract must specify the tasks, responsibilities, and entitlements of the advisory organization and the project owner;

c) When an advisory organization is hired to management the project, the project owner still have to employ its professional units or appoint some units to inspect, supervise the contract execution of the advisory organization hired, and is ultimately responsible for the project management, costs, quality, and progress of the project, and is jointly responsible for the violations committed by the advisory organization hired to manage the project.

Article 15. Establishment of project management board mentioned in Article 39 of the Decree No. 38/2013/ND-CP

1. Within 30 working days after the project documentation is approved by a competent authority as prescribed in Clause 1 Article 39 of the Decree No. 38/2013/ND-CP pursuant to the decision on the project owner mentioned in Article 9 of this Circular, the project owner shall issue a Decision on establishment of a project management board using the form in Appendix II of this Circular.

The establishment of the project management board must take into account of the possibility of using a professional project management board or using the existing project management board in order to improve the quality and reduce costs by utilizing the experience of managerial officers.

2. Within 15 working days revenues the Decision on establishment of the project management board is signed according to Clause 4 Article 39 of the Decree No. 38/2013/ND-CP pursuant to the decision on the project owner mentioned in Article 9 of this Circular, the project owner shall issue a Regulation on organization and operation of the project management board based on the request of the Director of the project management board (the form is provided in Appendix III enclosed herewith).

Within 05 working days from the day on which the Decision on establishment of the project management board is signed, the body that decides the establishment of the project management board shall send a notarized copy of the Decision to the Ministry of Planning and Investment, the Ministry of Finance, and relevant bodies in order to seek cooperation in management and execution of the project.

3. Organizational structure and personnel of the project management board:

a) Depending on the contents, scale, nature, scope of the project, and modality of project management, the Director of the project management board shall propose a organizational structure of the project management board to the governing body or project owner, which may include units in charge of administration, personnel and training, planning, bidding, and finance according to the Regulation on organization and operation of project management board. For a project of investment, secondary units in charge of land clearance, design and construction supervision may be established;

b) The key positions of the project owner include: Director, Deputy Director (if any), Chief accountant or accountant who is designated in the Decision on establishment of the project management board. The Director and the Chief accountant (or accountant) of the project management board must be personnel of the Vietnam’s party. The Director shall designate and dismiss other positions in project management board. Functions, tasks, entitlements and benefits of such positions must be specified and notified to the governing body and relevant parties.

c) Requirements for organization and personnel of the project management board:

- The organizational structure of the management board must be appropriate with qualified and experienced personnel that suit the effective and sustainable management and execution of the project.

- Functions, tasks, and entitlements of each unit (if any); the relationships among the units must be specified in the Regulation on organization and operation of the project management board.

If some officers of the project management board are dispatched by other bodies, such dispatch must be agreed in writing with such bodies.

External officers must be hired in accordance with the project documentation approved by a competent authority and applicable regulations of law.

4. Seal and account of project management board:

The project management board may use a separate seal as prescribed by law, or use the seal of the governing body or project owner to serve the management and execution of the project.

The project management board may open accounts of the project at State Treasuries and commercial banks in accordance with regulations of law and the international agreement with the donor on ODA or concessional loans.

5. Budget for project management board:

Budget for the project management board shall be provided by the capital for preparation of the project mentioned in Article 23 of the Decree No. 38/2013/ND-CP the counterpart capital for preparation of the project mentioned in Article 43 of the Decree No. 38/2013/ND-CP or ODA/concessional loans under an international agreement with the donor on ODA or concessional loans

6. Management and use of assets transferred by the project owner to the project management board to serve the management and execution of the project:

a) The assets transferred by the project owner to the project management board to serve the management and execution of the project must be used properly and efficiently in accordance with regulations of law and the international agreement with the donor on ODA and concessional loans.

b) If asset are transferred or given by consultancy units, contractors to the project management board, the project management board shall request the project owner to permit the use of such assets during the execution of the project, and promise to return them after the project is completed.

7. Finalizing the project and dissolving the project management board:

a) Time of completion of the ODA project according to the international agreement with the donor on ODA and concessional loans.

Within 06 months after the project is completed, the project management board must send the project owner a completion report and financial statement of the project; the project owner shall submit them to the governing body. The project management board shall return the assets transferred by the project owner as prescribed by law.

After the completion report and financial statement of the project is approved by a competent authority and all assets are returned to the project owner, the project owner or the governing body that acts as a project owner shall issue a Decision to finalize the project and dissolve the project management board.

b) If the tasks above cannot be done by the deadline, according to the explanation provided by the project management board, the approval by the governing body, the project owner shall issue a decision to extend the deadline by up to 06 months in order for the project management board to finish their jobs and provide sufficient budget for sustaining the operation of the project management board throughout the extension period.

c) If a project management board manages multiple projects, the project owner shall issue separate decision to finalize each of the projects, and concurrently adjust the functions and tasks of the management board in accordance with the Decree No. 38/2013/ND-CP and this Circular.

Article 16. Tasks and entitlements of project management board mentioned in Article 40 of the Decree No. 38/2013/ND-CP

1. Assist the project owner in making an overall plan and annual plans for execution of the project in accordance with Point a Clause 3 Article 40 of the Decree No. 38/2013/ND-CP:

The project management board shall assist the project owner in making an overall plan and annual plans for execution of the project (disbursement plan, spending plan, bidding plan, etc.), and submit such plans to a competent authority for approval.  The plans must specify the resources being used, the schedule, the targets, quality, and criteria for acceptance of results of each operation of the project.

The overall plan for execution of the project must be approved by the governing body at least 03 months before the project is commenced.

Annual project execution plans must be formulated and approved in accordance with agreements with the donor, the schedule for annual capital distribution of the governing body, and the project progress under the concluded international agreement on ODA and concessional loans.

2. Assist the project owner in preparing and executing the project in accordance with Point b Clause 3 Article 40 of the Decree No. 38/2013/ND-CP.

3. Engage in bidding activities and assist the project owner contract management in accordance with Point c Clause 3 Article 40 of the Decree No. 38/2013/ND-CP.

a) Perform the tasks related to bidding given by the project owner in accordance with the bidding laws and the donor’s regulations on bidding;

b) Monitor the fulfillment of obligations in the contracts with contractors that are signed by competent persons (with regard to the progress, workload, quality, occupational safety, and environmental safety). Monitor and assess the operations of contractors. Resolve the issues that arise during the contract execution in a timely manner;

c) Carry out product acceptance and make payments in accordance with law.

4. Assist the project owner in disbursement, financial management and asset management in accordance with Point d Clause 3 Article 40 of the Decree No. 38/2013/ND-CP.

Complete the procedures for disbursement, financial management and asset management in accordance with laws and the donor’s regulations.

5. Monitor and assess the execution of the project in accordance with Point dd Clause 3 Article 40 of the Decree No. 38/2013/ND-CP.

The project execution shall be monitored and assessed in accordance with Article 55 of the Decree No. 38/2013/ND-CP and Article 24 of this Circular.

6. Prepare the acceptance and transfer of products of the project after its completion; finish the tasks related to audit, asset transfer; make a completion report and financial statement of the project in accordance with Point e Clause 3 Article 40 of the Decree No. 38/2013/ND-CP in particular:

a) Prepare the acceptance and transfer of the completed project to the transferee in order for the transferee to put it into operation;

b) Make are report on project completion and financial statement of the project by the deadline mentioned in Article 49 of the Decree No. 38/2013/ND-CP.

7. Perform other tasks given by the project owner in accordance with Point g Clause 3 Article 40 of the Decree No. 38/2013/ND-CP including:

a) Administrative management and coordination:

- Manage the office and personnel of the project management board.

- Establish an internal information system; gather, classify, store all information and original documents related to the project and project management board in accordance with law.

- Represent the project owner when making business transactions within the competence of the representative specified in the Regulation on organization and operation of the project management board company the letter of authorizations.

- Act as a contact of the project owner and other bodies that participate in the execution of the project in order to discuss the issues arising during the project execution with the donor.

- Coordinate the participation of various units of the project owner in the project activities.

b) Transparency and accountability:

- Provide an internal control mechanism, including financial mechanism.

- Make preparations for the project owner to announce the contents, organization, progress, and budget of the project among the direct beneficiaries of the project, local authorities, local socio-political organizations and elective bodies.

- Provide accurate information for law enforcement bodies, inspection bodies, audit bodies, the donor, the media, and relevant individuals within their competence, except for the information restricted from disclosure by law.

Article 17. Amendments to the project contents during the project execution mentioned in Clause 2 Article 25 of the Decree No. 38/2013/ND-CP

1. Where an adjustment to the project contents leads to a change to the Decision to approve the funding list: Clause 1 Article 48 of the Decree No. 38/2013/ND-CP shall apply. The procedures for approving the documentation of the adjusted project are specified in Clause 4 of this Article.

2. Where an adjustment to the project contents leads to a change to or extension of the international agreement on ODA and concessional loans:

a) If an adjustment to the project contents leads to a change in the Decision to approve the funding list: follow the regulations in Clause 1 of this Article. This is the basis for adjusting or extending the international agreement on ODA and concessional loans according to Clause 2 Article 48 of the Decree No. 38/2013/ND-CP.

b) If an adjustment to the project contents does not lead to a change in the Decision to approve the funding list: the governing body shall follow the procedures for approving the documentation of the adjusted project as prescribed in Clause 4 of this Article. This is the basis for adjusting or extending the international agreement on ODA and concessional loans according to Clause 2 Article 48 of the Decree No. 38/2013/ND-CP.

3. Where an adjustment to the project contents does not lead to a change in the Decision to approve the funding list and also does not lead to an adjustment or extension of the international agreement on ODA and concessional loans: the governing body shall follow the procedures for approving the documentation of the adjusted project as prescribed in Clause 4 of this Article.

4. Approving documentation of adjusted project.

a) If the project is within the competence of the Prime Minister:

- The governing body shall send the Ministry of Planning and Investment, the Ministry of Finance and relevant bodies written request for opinions together with proposals and reasons for the adjustment to project, and an agreement with the donor;

- After considering to the opinions of the Ministry of Planning and Investment, the Ministry of Finance and relevant bodies, within 10 working days, the governing body shall request the Prime Minister to consider the adjustments.

b) If the project is within the competence of the governing body:

- The governing body shall send the Ministry of Planning and Investment, the Ministry of Finance and relevant bodies written request for opinions together with proposals and reasons for the adjustment to project, and an agreement with the donor;

- After considering to the opinions of the Ministry of Planning and Investment, the Ministry of Finance and relevant bodies, within 10 working days, the governing body shall issue a decision on adjustments to relevant contents.

Chapter 5.

FORMULATING AND APPROVING CAPITAL PLANS OF PROJECTS

Article 18. Making and approving the overall plan for project execution mentioned in Clause 2 Article 37 of the Decree No. 38/2013/ND-CP

1. The overall plan for project execution covers the whole execution period of the project, and includes all modules, parts, groups of operations, resources, and intended progress.

2. Within 30 working days from the day on which the international agreement on ODA and concessional loans is concluded, according to the project documentation approved by a competent authority and the international agreement, the project owner shall cooperate with the investor in reviewing or formulating an overall plan for project execution, then submit it to the governing body for consideration and approval.

3. The overall plan of a master project must include the overall plans for execution of all subprojects.  The head of the governing body of the master project shall approve the overall plan for execution of the master project; the heads of the governing bodies of subprojects shall approve the overall plans for execution of the subprojects.

4. Within 05 working days from the day on which the overall plan for project execution is approved, the governing body of the project, including the master project, shall send a decision on approval together with the overall plan for project execution to the Ministry of Planning and Investment, relevant bodies, and the donor in order for them to supervise, assess, and cooperate in the execution of such project.

Article 19. Making and approving the annual plan for project execution mentioned in Clause 3 Article 38 and Point a Clause 3 Article 40 of the Decree No. 38/2013/ND-CP

1. The annual plan for project execution shall be made every year and must contain detailed information about the modules (sorted by technical assistance module and investment module), the parts, primary operations, capital sources, including counterpart capital, and intended progress.

This annual plan is the basis for making quarterly plans serving the management, supervision, and assessment of the project execution, for the project owner to make and submit annual plans for capital distribution to the governing body in accordance with regulations on planning socio-economic development and annual the state budget estimate.

2. According to on the overall plan for project execution approved by the governing body, the disbursement plan under the concluded international agreement on ODA and concessional loans, the project management board shall cooperate with the donor in making the annual plan for project execution (using the form in Appendix IV to this Circular), which is then submitted to project owner for consideration.

3. Within 05 working days from the day on which the annual plan for project execution is approved, the project owner shall send a decision on approval together with the annual plan to the governing body, request the governing body to send them to the Ministry of Planning and Investment, relevant bodies, and the donors in order to facilitate the supervision, assessment, and cooperation in execution of the project.

Article 20. Making and approving the annual capital distribution plan of the project mentioned in Clause 2 Article 37 of the Decree No. 38/2013/ND-CP

1. Annual capital distribution plan of the project include the plan for distribution of ODA and concessional loans (ODA grants, ODA loans, and concessional loans), and the plan for distribution of counterpart capital. In particular:

a) The plan for distribution of ODA and concessional loans is formulated based on the capital sources for infrastructure development (applied to investment project or module), administration (applied to technical assistance project or module), budget support, on-lending by each donor. This plan shall be formulated using the form in Appendix Va of this Circular;

b) The plan for distribution of counterpart capital is formulated based on the central budget, local budget, domestic loan capital, and project owner’s capital, and other domestic capital sources prescribed by law. This plan shall be formulated using the form in Appendix Vb of this Circular.

2. If the project is funded by government budget:

a) Every year when formulating the socio-economic development plan and making government budget estimate, the project owner shall send the governing body a plan for intended capital distribution, which is then aggregated with the annual budget plan of the governing body. Based on the annual budget plan of governing bodies, the Ministry of Planning and Investment shall cooperate with the Ministry of Finance in making a government budget estimate and request the National Assembly to consider;

b) Procedures for allocating annual capital to the projects shall comply with applicable regulations of law.

3.  If the project is funded by on-lent loans of the government:

Every year when formulating the socio-economic development plan and making government budget estimate, the project owner make and send the annual capital distribution plan to the governing body, the Ministry of Planning and Investment, and the Ministry of Finance. The project owner must provide sufficient counterpart capital during the execution of the project.

4. If the project is funded by both government budget and on-lent loans:

Depending on the nature of each project module (funded or on-lent), the project owner shall follow the corresponding procedures for making and submitting the capital distribution plan in accordance with Clause 2 and Clause 3 of this Article.

Chapter 6.

PROJECT SUPERVISION AND EVALUATION

Article 21. Project evaluations mentioned in Article 52 of the Decree No. 38/2013/ND-CP

1. Project evaluations include:

a) Initial evaluation;

b) Midterm evaluation;

c) Finalizing evaluation;

d) Effect evaluation;

Depending on the nature of the project and requirements of the governing body or donor, the project shall under go one or all of the aforesaid evaluations. Apart from periodic evaluations, irregular evaluations may be carried out where necessary.

2. Contents of initial evaluation:

Initial evaluation is carried out by the experts or an independent advisory organization hired by the project owner or by the project management board before initiating the project execution. Initial evaluation focuses on:

a) Assess the preparations for the execution, mobilization of resources by the project management board to ensure that the project is executed in accordance with the set targets and plan;

b) Assess of the issues that arise compared to the approved documentation of the project, propose solutions;

c) Find and suggest solutions for the issues due to external causes (such as changes in the legal system, changes in the schedule or some parts to suit the climate, geology, traditions, population, etc.) or internal causes (competence and organizational structure of the project management board, project owner, etc.).

Results of the initial evaluation shall be used to review and update the overall plan for project execution and the detailed plan for project execution in the first year.

Within 15 working days from the receipt of the report on initial evaluation from the experts, the independent advisory organization, or the project management board, the project owner must send this report and their response to such report to the governing body and the donor, which contains the analysis of the issues, the proposals, solutions, necessary actions, and the lessons learned during the project execution.

For the projects whose documentation is approved by the Prime Minister and Group A projects, within 15 working days from the receipt of the reports on initial evaluation from the project owners, the governing bodies shall send such reports and their opinions to the Ministry of Planning and Investment and relevant bodies to facilitate supervision and evaluation by central authorities.

3. Contents of midterm evaluation:

Midterm evaluation is carried out by the experts or an independent advisory organization hired by the project owner, during the project execution or after a completion of a stage if the project consists of multiple stages. Midterm evaluation focuses on:

a) Assess the suitability of the results for the targets of the project;

b) Assess the workload and work quality at the evaluation time compared to the plan;

c) Find and assess the issues that arise during the  project execution due to external causes (such as changes in the legal system, changes in the schedule or some parts to suit the climate, geology, traditions, population, etc.) or internal causes (competence and organizational structure of the project management board, project owner, etc.);

d) Suggest solutions for ensuring the achievement of targets, punctuality, and quality as planned over the remaining period or stages.  The plan for using surplus capital may be adjusted where necessary.

Within 15 working days from the receipt of the report on midterm evaluation from the experts or the independent advisory organization, the project owner must send this report and their response to such report to the governing body and the donor, which contains the analysis of the issues, the proposals, solutions, necessary actions, and the lessons learned during the project management and execution.

For the projects whose documentaton is approved by the Prime Minister and Group A projects, within 15 working days from the receipt of the reports on midterm evaluation from the project owners, the governing bodies shall send such reports and their opinions to the Ministry of Planning and Investment and relevant bodies to facilitate supervision and evaluation by central authorities.

4. Contents of finalizing evaluation:

Finalizing evaluation is carried out by the experts or an independent advisory organization hired by the project owner, and must be done within 06 months from the date on which the project is completed according to the international agreement on ODA and concessional loans. Finalizing evaluation is the basis for making the report on the project finalization.

The finalization report focuses on assessing the stages during the project progress, including:

a) Assess the suitability of the results and the targets of the project;

b) Assess the result of the project, including: the management of project execution, capital allocation and mobilization of resources for project execution; operations, outcomes and final result of the project; direct and indirect benefits provided by the project for the beneficiaries;

c) Assess the impacts of the project after completion, including the economic impacts, social impacts, technological impacts, and impacts on manpower development;

d) Assess the sustainability of the project and assurance factors;

dd) The lessons learned from the preparation and execution of the project;

e) Recommendations for ensuring the effectiveness of the project.

Within 15 working days from the receipt of the report on finalizing evaluation from the experts or the independent advisory organization, the project owner must send this report and their response to such report to the governing body and the donor.

For the projects whose documentaton is approved by the Prime Minister and Group A projects, within 15 working days from the receipt of the reports on finalizing evaluation from the project owners, the governing bodies shall send such reports and their opinions to the Ministry of Planning and Investment and relevant bodies to facilitate supervision and evaluation by central authorities.

5. Impact evaluation (post-project evaluation):

Based on the annual plan for evaluating impacts of the project formulated by the Ministry of Planning and Investment, the governing body shall hire experts or an independent advisory organization to carry out an impact evaluation. For the projects whose documentaton is approved by the Prime Minister, the impact evaluation shall be carried out by an independent advisory organization appointed by the Prime Minister (or appointed by the Ministry of Planning and Investment under the authorization of the Prime Minister).

The impact evaluation shall be done within 03 years from the day on which the project is put into operation, and focuses on the following issues:

a) The economic and technical condition of the project during its operation;

b) The economic, political and social impacts of the project;

c) Impacts of the project on the environment;

d) Sustainablility of the project;

dd) The lessons learned from the design, management, and operation of the project.

For Group A projects, within 15 working days from the day on which the impact evaluation is completed, the governing bodies shall send the impact evaluation reports made by the experts and independent advisory organizations together with their opinions to the Ministry of Planning and Investment and relevant bodies to facilitate the evaluation of aid effectiveness by central authorities.

For the projects whose documentaton is approved by the Prime Minister, within 15 working days from the day on which the impact evaluation is completed, according to the impact evaluation reports made by the independent advisory organizations and responses of the governing bodies, the Ministry of Planning and Investment shall submit an impact evaluation report to the Prime Minister.

6. Contents of irregular evaluation:

An irregular evaluation shall be carried out when unexpected issues arise during the project execution. The irregular evaluation is meant to:

a) Identify the seriousness and nature of unexpected issues;

b) Assess the impact of such issues on the project execution and achievement of set targets;

c) Suggest necessary measures and deadlines for taking such measures.

The governing body shall take charge and cooperate with relevant bodies and the donor in establishing an evaluation commission. The irregular evaluation result is the basis for the governing body to intervene and take necessary measures for preventing the failure of the project. If the measures are beyond the competence of the governing body, it shall send notifications enclosed with the irregular evaluation result to relevant regulatory bodies or the Prime Minister for consideration.

Article 22. Responsibilities of the governing body for supervision and evaluation mentioned in Article 53 of the Decree No. 38/2013/ND-CP

1. The governing body is responsible for the supervision as follows:

a) Check, update the sufficiency and accuracy of the information about the project provided by project owner, and adherence to the reporting practice prescribed in Article 57 of the Decree No. 38/2013/ND-CP and Article 24 of this Circular;

b) Adhere to the reporting practice prescribed in Clause 2 Article 57 of the Decree No. 38/2013/ND-CP and Article 27 of this Circular;

c) Supervise the changes compared to the plan for capital distribution, progress, disbursement, bidding, land clearance, relocation, environment protection, and social security (if any);

d) Promptly deal with the issues within their competence. Report the issues beyond their competence to competent authorities for timely settlement in order to boost the execution and disbursement.

dd) Ensure sufficient resources (manpower, finance, equipment, and relevant issues) that are necessary for project supervision at the governing body.  Provide support and improve the project supervision capacity of the governing body itself and the project owners under its management;

e) Carry out at least one inspection a year of the project execution, the adherence to Vietnam’s lawn and the donor’s regulations on project management.

2. The governing body is responsible for the evaluation as follows:

a) Based on the annual plan for evaluating impacts of the project formulated by the Ministry of Planning and Investment, the governing body shall allocate capital and necessary resources for evaluating impacts of the project. Where the donor and the governing body carry out a joint evaluation, the impact evaluation plan of the governing body must specify the responsibilities and obligations of the parties during the evaluation;

b) Consider and offer opinions about the reports on initial evaluation, midterm evaluation, finalizing evaluation, and irregular evaluation; offer opinions about impact evaluation reports of the ODA projects within its competence;

c) Examine and approve the report on project finalization made by the project owner; send such report to the Ministry of Planning and Investment, relevant bodies, and the donor.

Article 23. Responsibilities of the project owner for supervision and evaluation mentioned in Article 54 of the Decree No. 38/2013/ND-CP

1. The project owner is responsible for the supervision as follows:

a) Provide necessary resources for the project management board to carry out supervision;

b) Supervise, inspect the adequacy, timeliness and accuracy of the information about the project executed by the project management board;

c) Adhere to the reporting practice prescribed in Clause 1 Article 57 of the Decree No. 38/2013/ND-CP and Article 26 of this Circular;

d) Promtply deal with the issues reported by the project management board during the project execution. Report the issues beyond the project owner’s competence to the governing body for timely settlement in order to boost the execution and disbursement.

dd) Prepare necessary materials and conditions for annual supervision of the governing body;

e) Inspect the adherence of the project management board to Vietnam’s law and the donor’s regulations on project management.

2. The project owner is responsible for the evaluation as follows:

a) Examine the evaluation plan, provide capital and necessary resources for evaluation;

b) Take charge and cooperate with the donor in carrying out initial evaluation, midterm evaluation, and finalizing evaluation of the project; cooperate with the governing body, relevant bodies, and the donor in carrying out impact evaluation and irregular evaluation of the project;

c) Make and submit the report on project finalization to the governing body.

Article 24. Responsibilities of the project management board for supevision and evaluation mentioned in Article 55 of the Decree No. 38/2013/ND-CP

1. The project management board is responsible for the supervision as follows:

a) Monitor, update information about the project execution in terms of the progress, workload, quality, costs, and changes;

b) Assist the project owner in making reports according to Clause 1 Article 57 of the Decree No. 38/2013/ND-CP and Article 26 of this Circular;

c) Monitor and update information about project management, ensure the adherence of the project management board to Vietnam’s law and the donor’s regulations on project management.

d) Assist the project owner in preparing necessary materials and conditions for annual supervision by the governing body;

dd) Monitor, update information about responses to feedbacks: information confidentiality, information processing, and solutions for the problems of the project owner, the governing body, competent authorities, and the donors.

2. The project management board is responsible for the evaluation as follows:

a) Formulate a project evaluation plan and submit it to the project owner for approval;

b) Assist the project owner in carrying out initial evaluation, midterm evaluation, and finalizing evaluation of the project; assist the project owner in cooperating with the governing body in carrying out irregular evaluation of the project;

c) Make a report on finalizing evaluation of the project and submit it to the project owner (form V-GSDG5 in Appendix V enclosed herewith)

Article 25. Responsibilities of the Ministry of Planning and Investment for supervision and evaluation mentioned in Article 56 of the Decree No. 38/2013/ND-CP

1. The Ministry of Planning and Investment is responsible for the supervision as follows:

a) Establish and operate a national supervision system and provide necessary resources for such system;

b) Make annual national supervision plans based on the supervision reports from governing bodies and results of the meetings with the donors about progress of the projects;

c) Adhere to the reporting practice prescribed in Clause 3 Article 57 of the Decree No. 38/2013/ND-CP and Clause 1 Article 28 of this Circular; supervise the adherence to the regulations on ODA and concessional loans reporting; send periodic reports on such tasks to the Prime Minister;

d) Settle the issues reported by the project owners, governing bodies, and donors if they are within the Ministry’s competence; offer solutions for improving the progress of the projects and raising the efficiency of ODA and concessional loans;

dd) Take charge and cooperate with the Ministry of Finance, the Ministry of Foreign Affairs, and relevant bodies in supervising the adherence to the law, international agreements on ODA and concessional loans, and efficiency of such sources;

e) Make and submit annual reports on national supervision to the Prime Minister.

2. The Ministry of Planning and Investment is responsible for the evaluation as follows:

a) Make annual plans for national evaluation of the use of ODA and concessional loans; cooperate with other Ministries, bodies, local authorities, and donors in implementing such plans;

b) Cooperate with governing bodies and donors in selecting the projects that have been completed and in operation to formulate annual plans for impact evaluation when the annual plan for socio-economic development and the State budget estimate is being made;

c) Organize the evaluation of the impacts of projects of national importance as assigned by the Prime Minister; cooperate with governing bodies in evaluating the impacts of the projects under the competence of such governing bodies;

d) Analyze and evaluate the efficiency of ODA and concessional loans.

Article 26. Project owner’s reports on receipt and use of ODA and concessional loans mentioned in Clause 1 Article 57 of the Decree No. 38/2013/ND-CP

1. For projects:

The project owners shall make and send reports on the project execution to the Ministry of Planning and Investment, the Ministry of Finance, the Governing Ministries, the People’s Committees of the provinces where the projects are located, and the donors.

The reports forms, including the monthly report form V-GSDG 1, quarterly report form V-GSDG 2, annual report form V-GSDG 3, and finalization report form V-GSDG 4, are provided in Appendix 5 enclosed herewith. The project management board must make and submit the aforesaid reports to project owners; project owners shall send them to governing bodies and relevant bodies.

a) Monthly report:

Monthly reports are only applied to the projects within the competence of the Prime Minister and to Group A projects.

Within 10 days from the end of the month, the project owner must send a monthly report on the project execution using form VI-GSDG 1 in Appendix V enclosed herewith (except for the months when quarterly reports are made according to Point b of this Clause) in writing or by email to the governing body, the Ministry of Planning and Investment, the Ministry of Finance, the governing Ministries, and the People’s Committee of the province where the project is executed. The form GSDG 1.1 is only sent one in the reporting period of the first month, and shall be sent again when a change in the concluded international agreement on ODA and concessional loans is made.

b) Quarterly reports

Quarterly reports are applied to all projects.

Within 15 days from the end of the quarter, the project owner must send a quarterly report on the project execution using form VI-GSDG 2 in Appendix V enclosed herewith by email (the form GSDG 2.1 and 2.2 must be sent both in writing and by email) to the governing body, the Ministry of Planning and Investment, the Ministry of Finance, the governing Ministries, and the People’s Committee of the province where the project is executed, and the donor (in English, unless otherwise agreed). The form GSDG 2.1 is only sent one in the reporting period of the first quarter, and shall be sent again when a change in the concluded international agreement on ODA and concessional loans is made.

Forms GSDG 2.6 and GSDG 2.7 are not required if the project does not involve compensation for land clearance, relocation, or environment protection.

c) Annual report

Annual reports are applied to all projects.

By January 31 of the next year, the project owner must send an annual report on the project execution using form VI-GSDG 3 in Appendix V enclosed herewith both in writing and by email to the governing body, the Ministry of Planning and Investment, the Ministry of Finance, the governing Ministries, and the People’s Committee of the province where the project is executed, and the donor.

d) Project finalization report

Project finalization reports are applied to all projects.

Within 06 months from the completion date of the project, the project owner must send a project finalization report using form VI-GSDG 4 in Appendix V enclosed herewith both in writing and by email to the governing body, the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Foreign Affairs, the governing Ministries, and the People’s Committee of the province where the project is executed, and the donor.

2. For subprojects of a master project:

Project owners of subprojects shall apply the reporting practice and use the report forms for projects provided in the Decree No. 38/2013/ND-CP and Clause 1 of this Article. Reports shall be sent to the governing bodies of the subprojects and the owner of the master project. The owner of the master project shall aggregate reports on subprojects with the report on the master project, apply the reporting practice and use the report forms provided in the Decree No. 38/2013/ND-CP and Clause 1 of this Article.

3. For non-project aid:

The reporting practice and use the report forms for projects provided in the Decree No. 38/2013/ND-CP and Clause 1 of this Article shall apply.

4. For private entities that are granted access to ODA and concessional loans:

The reporting regime and report forms for recipients of ODA and concessional loans in Article 9 of the Decree No. 38/2013/ND-CP shall apply, in particular:

a) For private entities that take loans from domestic financial/credit institutions via the credit limit programs funded by ODA and concessional loans programs: Owners of the private projects shall make reports in accordance with Clause 1 of this Article. Reports shall be sent to the domestic financial/credit institutions that grant loans, the Ministry of Planning and Investment, and the Ministry of Finance;

b) For participants in projects given priority when using on-lent ODA and concessional loans of the government: Owners of the private projects shall make reports in accordance with Clause 1 of this Article. Reports shall be sent to the Ministry of Planning and Investment and the Ministry of Finance.

c) For participants in PPP projects partially funded by ODA and concessional loans of the government: private entities shall make reports in accordance with Clause 1 of this Article. Reports shall be sent to governing bodies, the Ministry of Planning and Investment, and relevant bodies;

d) For participants in the projects where private entities are supported: Private entities shall make reports in accordance with Clause 1 of this Article. Reports shall be sent to governing bodies, the Ministry of Planning and Investment, and relevant bodies.

4. Other regulations on reporting practice and report forms:

a) Apart from the regulations on reporting and report forms mentioned in Clause 1, Clause 2 and Clause 3 of this Article, the project owner must notify the governing body, the Ministry of Planning and Investment, the Ministry of Finance, relevant bodies, and the People’s Committee of the province where the project is executed if the concluded international agreement on ODA and concessional loans is revised or extended during the project execution;

b) If reporting practice and report forms are already provided for in the international agreement on ODA and concessional loans, the governing body must apply such reporting practice and report forms apart from those in the Decree No. 38/2013/ND-CP.

Article 27. Government body’s reports on receipt and use of ODA and concessional loans mentioned in Clause 2 Article 57 of the Decree No. 38/2013/ND-CP

Within 30 days after each quarter, governing bodies must make and send a report on the accumulation, receipt, and use of ODA and concessional loans, and the result of ODA projects within their competence using form VI-GSDG 5 in Appendix VI enclosed herewith to the Ministry of Planning and Investment, the Ministry of Finance, and the Ministry of Foreign Affairs (in writing or by email).

Article 28. Ministries’ reports on receipt and use of ODA and concessional loans mentioned in Clause 3 Article 57 of the Decree No. 38/2013/ND-CP

1. The Ministry of Planning and Investment shall make biannual and annual reports on the accumulation, receipt, and use of ODA and concessional loans with regard to the national projects using form VI-GSDG 6 in Appendix VI enclosed herewith, submit them to the Prime Minister (in writing), and send them to the Ministry of Finance and relevant bodies (both in writing and by emails). Biannual reports shall be sent by July 31; annual reports shall be sent by January 31 of the next year.

2. The Ministry of Finance shall make biannual and annual reports on the disbursement, and repayment of ODA loans and concessional loans with regard to the national projects using form VI-GSDG 7 in Appendix VI enclosed herewith, submit them to the Prime Minister (in writing), and send them to the Ministry of Planning and Investment and relevant bodies (both in writing and by emails). Biannual reports shall be sent by July 31; annual reports shall be sent by January 31 of the next year.

Article 29. Dealing with violations during supervision and evaluation

1. Bodies and units are responsible for the damage caused by the following violations:

a) Failure to comply or fully comply with regulations on supervision and evaluation in the Decree No. 38/2013/ND-CP and this Circular;

b) Provision of false information about the management, use of ODA and concessional loans under their management.

2. Penalties for violations against regulations on reporting the receipt and use of ODA and concessional loans:

a) For irregular violations (no reports are submitted over 02 consecutive reporting periods or 03 reporting period): the Ministry of Planning and Investment shall request a competent authority in writing to impose penalties upon the violators;

b) For systematic violations (no reports are submitted over 04 consecutive reporting periods or 06 reporting periods): the Ministry of Planning and Investment shall report the violations to the Prime Minister and request the issuance of a warning, request competent authorities to not consider approving the funding list of the new projects proposed by such violators.

Chapter 7.

IMPLEMENTATION

Article 30. Transition

The programs, projects, and non-project aid that are established during the transition from the Government's Decree No. 131/2006/ND-CP dated November 09, 2006 on ODA management to the Government's Decree No. 38/2013/ND-CP dated April 23, 2013 shall be dealt with as follows:

1. Where the governing body has submitted the project documentation but the funding list has not been approved according to the Decree No. 131/2006/ND-CP: The governing body shall complete the documentation and follow the steps in Clause 2 Article 6 of this Circular. The funding list shall be approved in accordance with the Decree No. 38/2013/ND-CP.

2. If a Decision to approve the funding list has been issued according to the Decree No. 131/2006/ND-CP but changes are made during the project preparation or execution according to Article 18 of the Decree No. 38/2013/ND-CP then Article 19 of the Decree No. 38/2013/ND-CP shall apply.

3. For the projects that apply the Decree No. 31/2006/ND-CP and the issues that arise are not regulated in the Decree No. 38/2013/ND-CP and this Circular, project owners shall request the governing bodies to consider making a decision. Governing bodies shall report the cases beyond their competence to the Prime Minister.

Article 31. Effect

1. This Circular takes effect on February 26, 2014.

2. This Circular supersedes the Circular No. 04/2007/TT-BKH dated July 30, 2007 of the Ministry of Planning and Investment on guidelines for the regulations on ODA management, the Circular No. 03/2007/TT-BKH dated March 12, 2007 of the Ministry of Planning and Investment on functions, tasks, and organizational structure of ODA project management boards, and the Decision No. 803/2007/QD-BKH dated July 30, 2007 of the Ministry of Planning and Investment on reporting ODA project execution.

Article 32. Implementation

Ministries, relevant bodies, local governments, and relevant entities are responsible for the implementation of this Circular./.