Thông tư 09/2009/TT-BKH

CIRCULAR

GUIDING THE IMPLEMENTATION OF THE SPECIALIZED CREDIT PROGRAM FUNDED WITH LOANS OF THE JAPAN INTERNATIONAL COOPERATION AGENCY

THE MINISTRY OF PLANNING AND INVESTMENT

Pursuant to the Government's Decree No. 116/2008/ND-CP of November 14, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Planning and Investment;
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 (ODA);
Pursuant to the provisions of specialized credit agreements (below referred to as the agreements) concluded between the Government of the Socialist Republic of Vietnam and the Japan Bank for International Cooperation (JBIC), now the Japan International Cooperation Agency (JICA),
The Ministry of Planning and Investment guides the implementation of the projects under the specialized credit program as follows:

Part I

GENERAL PROVISIONS

1. The specialized credit program (below referred to as the Program) regulated by this Circular is the Program funded with JICA loans for implementing hunger elimination and poverty reduction infrastructure projects in localities nationwide in the domains specified in the agreements.

2. The Program's loans shall be included in the state budget and allocated as development investment for localities to build infrastructure for the purposes of raising living standards for people and reducing poverty.

3. The management and implementation of the Program's projects comply with the Vietnamese Government's current regulations on state budget decentralization, investment and construction management, bidding, investment supervision and community-based supervision, and other provisions of the agreements.

4. JICA loans shall be paid for projects based on their practical implementation progress after the take-over test and certification of volumes and value according to current domestic procedures for capital construction payment, regardless of annually allocated capital plans.

5. JICA loans may be used only for.

a/ Payment for the value of volumes of construction and installation and procurement of domestic supplies and equipment of the projects;

b/ Import of domestically unavailable goods or equipment for the projects;

c/ Hiring of consultants for the Program;

d/ Payment of charges to foreign banks and for withdrawing JICA loans.

After finishing the process of capital withdrawal under the agreements, the Program Management Board shall notify expenses mentioned at Item (c) to project management units and project owners for work construction accounting and finalization.

The JICA loan amount notified to each project is the maximum withdrawal limit of capital. Any amount incurred in excess of this limit in the implementation process shall be covered by the local budget. The use of post-bidding surplus capital of each project must follow the steps applicable to a new project.

6. JICA loans must not be used to pay:

a/ Payable taxes;

b/ Ground clearance and compensation expenses;

c/ Project management expenses, including the management expense of the provincial project management unit;

d/ Other indirect expenses.

The above expenses shall be paid from the source of domestic capital. Domestic capital may come from local budgets or be raised from other sources to ensure that projects are implemented according to the schedules determined when they are assigned for implementation.

Part II

ORGANIZATION OF MANAGEMENT AND TASKS OF CONCERNED AGENCIES

1. The Ministry of Planning and Investment shall:

- Decide to invest under the Program and under law, aiming at achieving the objectives and complying with development plannings and plans;

- Notify the list of projects and their specific capital amounts to provincial People's Committees for implementation;

- Give approval in the process of selecting consultancy contractors under the current bidding law;

- Inspect and supervise the Program implementation. Allocate necessary resources for the Program monitoring, management and supervision;

- Devise and take measures under law to prevent and control corruption and waste or prevent the improper use of capital, affecting the achievement of the Program's objectives;

- Take responsibility under current law for violations of the regulations on competence in the process of supervising the program implementation;

- Take responsibility under current law for delayed implementation, or violations in the Program implementation, causing waste or corruption;

- Coordinate with the JICA in considering and deciding on the selection of projects for replacement at the proposal of provincial-level People's Committees;

- Coordinate with the JICA in considering and deciding on the use of the Program's surplus capital.

2. The Ministry of Finance shall:

- Carry out procedures for accepting payment for projects under regulations;

- Promptly carry out mutual ceasing procedures for provincial Finance Departments to include loans in local budgets;

- Withdraw additional capital in time from the special account;

- Refund loan principals and interests as specified in the agreements;

- Coordinate with the Program Management Board and the JICA in monitoring and evaluating the Program.

3. The Vietnam Foreign Trade Joint-Stock Commercial Bank (Vietcombank) shall:

- Make payment by the capital withdrawal methods specified in the JICA loan agreements at the request of the Ministry of Finance and send notices prescribed in the Circular guiding the mechanism for managing loans of the JICA specialized credit program;

- Monitor and notify to the Ministry of Finance and the Program Management Board the balance of the special account after each payment and capital withdrawal from the special account.

4. Provincial-level People's Committees shall:

- Decide to invest in projects according to the objectives, plannings, plans and law, ensuring their efficiency; allocate sufficient domestic capital for implementing projects according to the schedules specified in the agreements;

- Give approval in the process of selecting contractors for projects under the current bidding law;

- Inspect and supervise project owners in implementing projects;

- Devise and apply under law measures to prevent and control corruption and waste or prevent the improper use of capital, affecting the achievement of projects' objectives:

- Take responsibility under current law for violations of the regulations on competence in the process of supervising the implementation of projects;

- Take responsibility under current law for delayed implementation or violations in the implementation of projects, causing waste or corruption;

- Report and explain before September every year to the Ministry of Planning and Investment and the JICA on any changes in projects compared to the announced lists of projects.

5. Organizational structure of the Program Management Board and tasks of management units at all levels:

5.1. The JICA specialized credit program management board (below referred to as the PMB) is attached to the Ministry of Planning and Investment and set up under decision of the Minister of Planning and Investment.

Tasks of the PMB:

a/ Working out of plans for the Program implementation:

- To coordinate with the JICA in reviewing, updating and adjusting (when necessary) the master plan for the Program implementation, which must indicate the volume of jobs to be completed in each period, including activities which may be carried out before the agreements take effect;

- To coordinate with the JICA in working out annual plans for the Program implementation.

b/ Bidding and contract management:

- For the Program's consultancy bidding packages: To conduct consultancy bidding under Vietnam's current regulations on bidding and signed agreements. To supervise and evaluate contractors' activities and their outcomes. To promptly solve problems arising in the process of performing consultancy contracts. To make payment and finalization for contracts under law.

- For contracts of projects under the Program:

+ To sum up and supervise bidding activities in localities;

+ To sum up contractor selection results and lists of contracts for projects notified by provincial project management units. Within 7 working days after receiving a province's document, the PMB shall notify the list of contracts to the Ministry of Finance for use as a basis for capital disbursement.

c/ Finance and asset management and capital disbursement:

- To manage finance and assets and perform capital disbursement tasks under law and regulations of the JICA;

- To review payment request dossiers submitted by provincial-level JICA project management units (under Clause 2.3, Part III of this Circular). If detecting violations, to notify them to the Ministry of Finance and propose solutions;

- To collect and send documents to the Ministry of Finance for carrying out procedures for additional withdrawal of capital from the special account.

d/ Administrative and coordination tasks and explanation responsibility:

- To organize and manage personnel of the PMB;

- To coordinate with foreign consultants in establishing a management information system (MIS) for supervising the implementation of projects and identifying problems arising in the process of implementation. To guide project management units (below referred to as PMUs) in using, updating, exploiting and exchanging information via this system;

- To archive the Program-related original documents under law;

- To examine and urge the implementation of the Program's projects already signed with the JICA, ensuring their schedule, quality and efficiency;

- To act as the focal point in contacting provincial-level PMUs, foreign consultants and the JICA regarding matters related to the Program;

- To coordinate the provision of information on the Program to inspection and examination agencies and the JICA within the ambit of its assigned responsibilities and tasks.

e/ Supervision and evaluation of and reporting on the Program implementation:

- Quarterly or extraordinarily, to inspect the management and implementation of projects in localities. If detecting any cases of improper use of capital or violations in capital construction investment, bidding or capital disbursement, to recover the allocated capital or suspend the allocation of capital so as to take appropriate handling measures;

- For violators of the reporting regime under this Circular, to remind or reprimand them or request the Ministry of Finance to suspend the disbursement of capital for projects which have been reminded but still commit reporting violations;

- To make Program implementation reports under regulations on ODA management and signed agreements;

- To evaluate the Program under the provisions of the agreements. To sum up reports on the Program implementation and completion under Vietnam's current regulations on ODA management and use and the provisions of the agreements.

g/ To make reports summing up the Program finalization under regulations.

5.2. Provincial-level JICA PMUs are attached to provincial Planning and Investment Departments and set up under decisions of competent provincial authorities.

Tasks of provincial-level PMUs:

a/ To act as the focal points in planning, administering and reporting on the implementation of projects in localities.

b/ To work out plans and submit them to provincial-level People's Committees for approval and allocation of domestic capital for projects in provinces and operating funds of provincial-level PMUs.

c/ Bidding supervision and contract management:

- To inspect and supervise the process of organizing bidding and signing contracts to procure goods, supplies or equipment (if any) and construction and installation contracts between PMUs and contractors;

- Within 10 working days after obtaining bidding results, provincial-level PMUs shall sum up and send these results to the PMB:

+ Bidding plans (originals or certified copies);

+ Contractor selection results (originals or certified copies);

+ Lists of project contracts (made according to the form provided in Appendix 1 to this Circular, not printed herein).

d/ Finance and asset management and capital disbursement:

- To manage finance under law and regulations of the JICA;

- To act as the focal points in summing up and examining dossiers and carrying out procedures to disburse capital for JICA loan-funded projects in provinces under regulations and take responsibility before the PMB for managing these loans. To take responsibility for dossier appraisal results. To collect and archive dossiers and original documents of capital disbursement and work payment and finalization;

- To supply documents under Clause 2, 3. Part III of this Circular to the PMB for additionally withdrawing capital from the special account.

e/ Administrative and coordination tasks and explanation responsibility:

- To organize and manage their personnel;

- To make estimates of their annual operating funds under current regulations and submit them to provincial-level People's Committees for approval;

- To coordinate with local specialized management agencies in guiding and supervising PMUs in the project implementation. To inspect the observance of the Vietnamese Government's current regulations on work investment and construction management and bidding;

- To provide information on projects in localities to inspection and examination agencies and the JICA within the ambit of their assigned responsibilities and tasks.

g/ Supervision, evaluation and reporting.

- To supervise and regularly update information on the disbursement of capital for projects;

- Ten days after the end of a quarter, to sum up and report on the implementation progress of projects in localities to the PMB (made according to the form provided in Appendix 2 to this Circular, not printed herein);

- Within 15 days after receiving finalization reports from PMUs (or project owners in case PMUs have been dissolved), to sum up and send finalization reports to the PMB. In addition to data, a finalization report must give explanations about:

+ Advantages, disadvantages and problems in the process of project implementation (guiding documents, capital disbursement procedures, receipt of supplies and equipment (if any),etc);

+ Evaluation of socio-economic benefits and recommendations (if any);

+ The whole work's or a work item's additional capacity thanks to investment benefits.

5.3. The management unit of each project (referred to as PMU) shall be set up under the project owner's decision.

Tasks of a PMU:

a/ Formulation of project implementation plans:

- To formulate project implementation plans (capital disbursement, spending and bidding plans. ...). which determine the volume of jobs to be completed in each period:

- To take responsibility before law for the management and use of allocated JICA loans according to prescribed objectives and principles.

b/ Bidding and contract management:

- To organize the implementation of projects under the Vietnamese Government's current regulations on work investment and construction management and bidding. Particularly, JICA loan-funded construction and installation bidding packages and bidding packages for procurement of domestic goods, supplies and equipment which are valued at over JPY 0.3 billion (which shall be converted into Vietnam dong at the JPY/ VND exchange rate announced by Vietcombank at the time of contract signing) for the specialized credit program VN X-3, or over JPY 0.5 billion for the specialized credit program VN XIII-8, and subsequent JICA loan-funded specialized credit programs, must, in addition to the above regulations, comply with regulations of the JICA and may have contract approval procedures completed by the JICA;

- To manage the performance of the obligations indicated in the contracts signed with contractors (regarding the progress, volume, quality, labor safety amd environmental sanitation). To monitor, supervise and evaluate the operation of contractors. To promptly settle problems arising in the process of contract performance;

- Within 15 days after a contract is signed, to send project management dossiers to the provincial-level PMU, each comprising:

+ The competent authority's decision approving the investment project (the original or a certified copy);

+ The decision approving designs and total estimates (the original or a certified copy);

+ The provincial-level People's Committee's capital notification decision (the original or a certified copy);

+ The bidding plan (the original or a certified copy);

+ The document approving contractor selection results (the original or a certified copy);

+ The original contract, signed between the PMU and the contractor, indicating the JICA loan amount;

+ The contract approval decision (for contracts subject to approval under Vietnam's regulations on bidding and regulations of the JICA (the original or a certified copy);

- To conduct payment and finalization for contracts under law.

c/ Finance and asset management and capital disbursement:

- To manage finance and assets and disburse capital under law and regulations of the JICA;

- To test before take-over and determine completed capital construction volumes eligible for payment under current regulations and the Program's regulations on payment to proper payees and according to the designated capital sources, and send them to local treasuries for certification;

- To send complete payment request dossiers specified in Clause 2.2, Part III of this Circular to the provincial PMU for carrying out capital disbursement procedures for projects.

d/ Administrative, coordination and reporting tasks:

- To organize and manage its personnel;

- To regularly provide information for and update data into the Program's management information system (MIS). To detect in lime and report problems falling beyond its competence to the provincial-level PMU and the PMB;

- To regularly monitor the implementation of projects in terms of their progress, volume, quality, expenses and changes, and promptly adjust plans;

- To provide project-related information within the ambit of its assigned responsibilities and tasks;

- Within 5 days after the end of a quarter, to report on the project implementation progress to the provincial-level PMU (made according to the form provided in Appendix 2 to this Circular. not printed herein).

e/ Project take-over test, handover and finalization:

- To make preparations for the project owner to test before take-over and hand over projects to recipients for operation under regulations;

- To make finalization for projects under the Vietnamese Government's current regulations on work investment and construction management. Within 3 months after take-over test and handover of a work, to send the finalization report to the provincial-level PMU.

Part III

WITHDRAWAL OF CAPITAL FOR PAYMENT AND ADDITIONAL WITHDRAWAL OF CAPITAL FROM THE SPECIALACCOUNT

1. The PMB shall withdraw capital for payment of expenses for consultants under the Finance Ministry's Circular No. 132/2008/TT-BTC of December 29, 2008, guiding the mechanism for management of loans of the JICA specialized credit program.

2. Payment in Vietnam dong to domestic construction contractors and goods and service suppliers:

2.1. Payment principles:

a/ Payment shall be made only for JICA loan-funded projects on the list notified to each locality by the Ministry of Planning and Investment;

b/ Payment shall be made only within the limit of JICA loans already notified for each project;

c/ Payment shall be made only for the completed volume as certified by the PMU and the local state treasury;

d/ Payment shall be made only to contractors named in the bid-winning decision or the contractor designation decision under current regulations on bidding:

e/ Payment shall be made only for the contracts on the list notified by the PMB to the Ministry of Finance;

g/ Payment shall be made only for projects with implementation progress reports under Clause 5.3.d, Part II of this Circular.

2.2. A dossier of request for the payment of JICA loans, prepared by the PMU and submitted to the provincial-level PMU, comprises:

a/ A record of take-over test of the completed volume, enclosed with the calculation of the value of the tested volume (the original or a certified copy):

b/ The list of payment prices for the completed capital construction volume (2 originals):

c/ The contractor's written request for payment, with certification of the PMU (2 originals).

For capital advance, in addition to the above documents, there should be the commercial bank's written guarantee for advance.

2.3. The process of making payment to domestic contractors complies with the Finance Ministry's Circular guiding the mechanism for management of loans of the JICA specialized credit program. To assist in supervising and managing capital disbursement and additional withdrawal of capital from the special account, the provincial PMU shall send to the PMB an official letter requesting the Ministry of Finance to make payment, enclosed with:

- The general list of projects requested for payment (made according to the form provided in Appendix 3 to this Circular, not printed herein);

- The list of payment prices of the completed capital construction volume:

- The contractor's written request for payment;

- The money transfer notice (to be sent after being received from Vietcombank).

3. Additional withdrawal of capital from the special account:

Based on the capital disbursement progress, the PMB shall request the Ministry of Finance to carry out procedures for additional withdrawal of capital from the special account under the provisions of the agreements. The process of additional withdrawal of capital complies with the Finance Ministry's Circular guiding the mechanism for management of loans of the JICA specialized credit program.

Part IV

IMPLEMENTATION PROVISIONS

1. This Circular replaces Circular No. 06/ 2003HT-BKH of September 9, 2003, and takes effect 45 days from the date of its signing.

2. Any problems arising in the process of implementation should be reported to the Ministry of Planning and Investment for timely settlement.-