CIRCULAR GUIDANCE ON THE IMPLEMENTATION Of\F THE REGULATION ON THE MANAGEMENT AND USE OF OFFICIAL DEVELOPMENT ASSISTANCE SOURCES No.7-UB/KTDN

CIRCULAR GUIDANCE ON THE IMPLEMENTATION Of\F THE REGULATION
ON THE MANAGEMENT AND USE OF OFFICIAL
DEVELOPMENT ASSISTANCE SOURCES No.7-UB/KTDN

(In accordance with Article 2 of Decree 20-CP dated 15th of March, 1994 of Government delineating
the regulation on management and use of official development assistance, the State Planning
Committee'sguidance to implement this regulation is as follows)

SUBJECT: DEVELOPMENT ASSISTANCE

ISSUING-DEPT: STATE PLANNING COMMITTEE OF VIETNAM

ISSUE-DATE: 07/18/1994

IMPLEMENT-DATE: 07/18/1994

LENGTH: 2244 words

TEXT:

I. THE SCOPE Of APPLICATION

1. The official development assistance (ODA)

The ODA sources under the guidance of this circular comprise those as mentioned in article 2 of the above mentioned Decree and are specified as follows:

a) ODA granted to the Vietnamese Government either directly by foreign Governments or indirectly via international organization, inter governmental non-governmental organizations.

b) ODA supplied by international, inter-governmental organizations, such as:

World bank (WB)
Asian development bank (ADB)
Other financial funds or international financial organizations as OPEC, Kuwait.
European Union (EU)

International organizations under United Nations as united Nations Development Program (UNDP), International fund for Agricultural Development (IfAD), United Nations children's fund (UNICEf), World food Program (WfP), food and Agriculture Organization ( fAO), United Nations Industrial Development Organization, (UNIDO), United Nations High Commissioner for Refugees (UNHCR) International Atomic Energy Agency (IAEA), United Nations Educational, Scientific and Cultural Organization (UNESCO), World Health Org anizations (WHO).

Other international, intergovernmental organizations.

c) ODA channeled by foreign governments via non-governmental organizations for implementation.

d) Mixed ODA jointly contributed by foreign Governments, business companies, or non-governmental organizations.

2. Areas with prior used of OAD

a) The use of non-refundable ODA for programmes and projects in the following areas is given priority:

Health care, population control and family planning
Strengthening medical facilities (equipment's, educational instruments, teachers training, syllabus making...), transforming and building new educational units.
Vocational training, university and upper university level training.
Operating intensive courses and refreshment courses.
Ecological Protection afforestation.
Biology diversification.
Projects, programmes involves in environmental protection, such as urban environment, aquatic environment, energy environment.
Strengthening the capability of environmental protection organizations.
Assistance's in scientific and technological researches
Strengthening capability of applicable science contributing to key scientific technological fields.
Technological Transfer.
Implementing projects, programmes jointly made by Vietnamese and foreign researchers, ect.
Assistance's in budget.
Importing goods for domestic consumption or receiving foreign exchange to improve the balance of payment in the State Budget.
Assistance's in manufacturing, business activities in some special cases, firstly the projects creating jobs, solving social problems, contributing to infrastructure development, ect.

b) Mixed of non-refundable and refundable ODA is given priority to use in following areas:

Energy:

Transforming and building new power plants
Transforming and building the electricity transport and distribution systems.
Communication
Upgrading and building new roads, rail-way, water way, bridges, ports, airports, urban transport
Agriculture
Assistance in developing credit system for rural area industry of agricultural products processing, agricultural encouragement, plants and husbandry development.
Irrigation
Developing, transforming, upgrading the main irrigation systems
Telecommunication:
Developing the interior cable network in large cities, coastal telecommunication system, rural telecommunication system with great capacity, etc.
Social affairs
The projects, programmes mostly use the non-refundable ODA for infrastructure development. However, the refundable ODA will be grant to some important projects:
Initial health care
Population control and family planning.
Building new universities and colleges.
Conducting reform in education and vocational training.
Supply and drainage of water, etc.
Special case

To implement the economic and social policy, the Government consider the using of refundable ODA for other areas, including special manufacturing projects.

II. CONTROL AND USE Of ODA

1) According to the Government, ODA management includes the determining policy and orientation of attracting and mobilizing foreign funds, negotiating and signing international Treaty; operating the supervision of projects implementation, evaluating the a chievements.

The State Planning Committee, financial Ministry, foreign Ministry, State Bank and the Governmental office help the premier in macro-management, the State Planning play the most important role to coordinate, manage and use the ODA sources.

2) Contents of management and use of ODA.

2.1 Determine the policy, orientation of ODA attraction and mobilization:

a) In accordance with economic and social strategy investment oriented planning, five years and annual plans, the state planning Committee drafts the ODA oriented planning and submits to the Premier for approval.

b) In accordance with the approved ODA oriented planning, the Ministries, Bodies at Ministry level, people committee of provinces, centrally managed cities, public organization at Governmental levels (the follows are branches and locality) submit the ODA requirement Documentation's to the State planning Committee, Governmental Office financial Ministry, foreign Relation Ministry, State Bank, then the State Planning Committee will operate the consideration and submission to the premier for approval.

Cultural and Social Affairs - famine removal and poverty reduction and implementation of humanitarian programmes.
Creating jobs and development of moutons and rural areas.
Alleviating social diseases, firstly drug addition and AIDS.
Improving the supply and drainage of water for cities, towns, districts, moutons and rural areas.
Transmissions & televisions making, cinema, publication...
Repairing cultural works
Developing of sports activities.
Researching development programmes, projects and strengthening institutional capabilities.
Making overall report on economic branches and social sectors
formulating master plans for economic branches and territorial regions.
Making feasibility studies for projects.
Conducting consulting services.
Strengthening institutional capabilities for organizations, training staffs in economics, administration, law, etc.
Environmental protection and urban management.
The ODA requirement Documentation:
Written proposal documents by Ministry, Body at Ministry level, People Committee of Province, City under Governmental authority, Central Public organization.
Outline o' Project (or programs)

(as appendix 1)

c) On the basis of approved ODA project, the ODA requirement documentation by branches and localities, and estimated ODA attractive ability in the coming time, the State Planning Committee of Vietnam in corporation with the Ministry of finance and other o rganizations concerned make a list of programmes and projects priority to use ODA sources in accordance with the foreign assistance, counter capital and other conditions, the submit to the Primer of Government to approve.

d) The State Planning Committee of Vietnam presides, co-operates with the Ministry of foreign Relation and other organizations concerned, relying on the approved projects given priority to use ODA, prepare and mobilize the ODA sources at the annual meetin g with foreign assistants as well as in regular relation with foreign Governments and international organizations granting ODA.

e) The Ministry of foreign Relation represented by Diplomatic Corporations, representatives of international organizations inter-governmental and non-governmental organizations in Vietnam, conduct the Vietnam A and representative offices in foreign countr ies, to mobilize ODA sources.

f) The branches and localities mobilizing ODA sources in the meeting with foreign partnership, as well as Embassies, foreign representative offices and other international offices in Vietnam, have to inform on time all concerning issues to the State Plann ing Committee, Ministry of foreign Relation and Ministry of finance.

2.2 Negotiating and signing the international Treaty on ODA.

a) List of projects, programmes given priority to use ODA, after being approved by Primer of Government will be submitted to the foreign countries and international organizations in conformity with ODA grant procedures.

b) In accordance with the agreement with foreign partner, State Planning Committee of Vietnam in corporation with Governmental Office, financial Ministry, foreign Relation Ministry, State Bank and other concerned organization prepare the contents of negot iation and submit to the Primer for approval.

c) In accordance with contents of negotiation approved by the Primer, State Planning Committee, in corporation with Governmental office, financial Ministry, foreign Relation Ministry, State Bank and other concerned organizations will negotiate with the fo reign Partner.

d) In case that the Premier designates another organization to preside over the meeting with foreign partner then this organization have to agree with the State Planning Committee on the contents of negotiation, with the Ministry of finance on terms and c onditions of payment (as for refundable OAD).

e) After negotiation, the organization that presides over the meeting have to report to the Primer of the Government on the contents of negotiation, the results achieved and other concerning proposals.

f.) (omitted)

g) If the documents signed are protocol, agreement, or other documents of ODA at Governmental level the organization designated by Premier of the Government have to report to the Premier on the contents of the signed document and propose person in title o f Government to sign this document. The submission to the Premier annexed with the written proposals by the State Planning Committee (case of other organization reporting to the Government), foreign Relation Ministry, Justice Ministry, financial Ministry.

h) In case that the Protocol, Agreement or other documents of ODA require to be signed under title of the Socialist Republic of Vietnam, State Planning Committee (or other organization designated to negotiate) report to the Governmental Office as of the S tarting negotiation day on the contents of the documents to be signed as well as implement the formalities written in Article 6, 7, 8 of Decree 182/HDBT dated 28th May of 1992 of Government.

2.3 Control, Management of ODA project implementation and evaluation of the project effectiveness.

a) When document of ODA have been signed, the reparation for project, programs will be carried on in accordance with ODA procedures of foreign assistance in documents reparation (making feasibility study), the investors and the superior body have to agree on contents of specific project. To some important projects, the State Planning Committee will submit to the Premier for approval. Only after the project outline have been approved or the State Planning Committee have agreed, the head of the project in c o-operation with foreign partner make a feasibly report.

The Head of Project/programs together with foreign partner sign the assignment of duties and obligations to implement the project preparation. This document will be regarded as additional document of ODA and as the basis to implement the relevant procedur es in country.

b) financial sources to prepare the project documentation:

- Capital in country: The project, programmes preparation expenditure come from the finical sources which cover this projects.

- financial assistance by foreign partner.

All the projects, programs in the investment plans have to conform with ODA plan.

c) Evaluation and approval of ODA project.

- The capital construction project in line with existing regulation on capital construction management.

- As for projects of budget assistance, education, institutional strengthening... the State Planning Committee preside, and in co-operation with financial Ministry and other functional bodies to evaluate and submit to the Premier for approval (in the eval uating period, it could be regard the proposals of ODA suppliers).

- Projects implemented by non-governmental organization in conformity with Decision 80/CT dated 28th March 1991 of Ministers council (now is Premier of Government).

d) With agreement of financial Ministry, State Bank and other organizations concerned, the State Planning Committee of Vietnam submit the plan for re-lending in country to the Premier for approval.

e) As for each ODA project, the State Planning Committee will report to Premier on the conditions and regulations on implementation set out by foreign partner.

f) In case that Vietnam is responsible for holding an international tender, it must be in a conformity with the State existing Regulation on tendering and evaluation of wining the tender.

g) In the progress of ODA project implementation, in accordance with the negotiation with foreign partner, the Heads of projects, programmes are responsible for operating the periodical or extraordinary reviews. Representatives of the State Planning Commi ttee, financial Ministry, foreign Relation Ministry, State Bank, Governmental office are representatives of the Government in these reviews.

h) Ministries, bodies at Ministry level, People Committee of Provinces, cities, and heads of programmes, projects make six months period and annual reports on the ODA projects implementation progress, and submit to the State Planning Committee of Vietnam, financial Ministry, State Bank, foreign Relation Ministry and the Governmental Office.

(As appendix 2)

i) After completing the projects, the Heads of ODA projects, programmes make a reports on the progress of projects implementation and analyses the achievements with a confirmation of the superior Body, the submit to the State Planning Committee, financial Ministry, State Bank, foreign Relation Ministry and the Governmental Office.

k) This circular of guidance will be added and completed in the progress of implementation.

for The State Planning Committee Minister

DO QUOC SAM (Signed)

Appendix 1: PROJECT OUTLINE REQUIRE USE Of ODA

I. Brief information of the project

1.1. Name of project:

1.2. Name of branch

Code [ ] (1)

1.3. Superior body (Ministry, bodies at ministry level, province people's committee.

1.4. Organization implementing the project:

Contract address

1.5. Project value counted in Vietnam Dong and U.S. Dollar of which:

- ODA amount:

- Counter-capital:

1.6. Classification of project (2)

- Non-refundable ODA

- ODA lending (lending)

- Mixed of non-refundable and refundable ODA

II. Contents of project.

2.1. Basis of project:

-Overall describing the branch

The outstanding problems needed to solve of the branch.
The necessary and the importance of the branch that leads to the making of project.
The relation between the branch and the project.
The reasons for project assistance.

2.2. The objectives of the project.

a. Short-run objectives

b. Long-run objectives

2.3. Describe contents of project in details

- The status of project

- Contents of project

- Conditions needed to be met to implement the project (infrastructure, electricity, water supply, land, environment...)

- The estimated project cost and dosimetric counter-capital

- Suggesting the assistant countries or organizations.

- The situation of initial contact (if any)

2.4. The plan of implementation of project.

- Estimated starting and finish time.

- Other sources mobilized to implement the project (labor, expert, workers force...)

2.5. The capabilities of organization implementing project

III. Analyze the economic, social and technical effectiveness of the project.

3.1. The immediate efficiency of implementation of the project.

3.2. The indirect efficiency of implementation of the project.

| Appendix 2: REPORT ON THE SITUATION Of PROJECT IMPLEMENTATION

Term of report (the first six month, 199...)
By (ministry, province, city, the head of project...)

A. INTERPRETATION

1. The impact of situation in first six months on the implementation of project.

The amount of projects (as for ministry, body at ministry level, province...)
The changes of country mechanism
The changes of mechanism outside country

- Other changes

2. The situation of project implementation

a. Project (or programs)

The progress of project implementation
The objectives which exceed the set standard or below the set standard
The reasons for the exceeding or the below-standard results.

b. Project (or programs)

3. Overall evaluation of project implementation.

Remark on favorable conditions and difficulties.
Evaluate the results achieved
Remaining difficulties
The measures taken by the head of the project.

4. New orientation for the coming months and proposals to the management organizations.

The prospect of fulfilling the project as planned.
The measures taken by the head of project and the Manager in remained period to fulfill the plan on time.
Proposals on the domestic mechanism, policies.
Proposals on foreign assistance
Proposals on co-operation of state management bodies
Proposals on ODA projects, programmes needed to be started after completing the project.
The progress of project in implementation (in connection with the report) Name of project: Branch code: foreign partner: Estimated total capital (1.000 USD): Implemented capital (1.000 USD):
Of which Specialists, Material and facilities, and Training makeup the specified ratios listed above.