Circular No. 04/2001/TT-BKH guiding the implementation of Decision No. 64/2001/QD-TTg dated April 26, 2001 of the Prime Minister on the issuance of the Regulation on management and utilization of non-governmental foreign aid.

CIRCULAR

Guidelines for implementing Decision No. 64/2001/QĐ-TTg dated April 26, 2001 of the Prime Minister on the issuance of the Regulation on management and utilization of non-governmental foreign aid.

Pursuant to Decision No. 64/2001/QĐ-TTg dated April 26, 2001 of the Prime Minister on the issuance of the Regulation on management and utilization of non-governmental foreign aid, hereinafter referred to as the Non-Governmental Foreign Aid Regulation (PCP).

 

Based on Decree No. 75/CP dated November 1, 1995 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Planning and Investment.

Based on Decision No. 64/2001/QĐ-TTg dated April 26, 2001 of the Prime Minister on the issuance of the Non-Governmental Foreign Aid Regulation (PCP), hereinafter referred to as the PCP Aid Regulation.

The Ministry of Planning and Investment guides the implementation of Decision No. 64/2001/QĐ-TTg dated April 26, 2001 of the Prime Minister on the issuance of the PCP Aid Regulation for programs and projects as follows:

           

I. GENERAL PROVISIONS

1.1. Explanation of terms

In the PCP Aid Regulation and in this Circular, the following terms are understood as follows:

a)Donor" includes the following entities providing non-governmental foreign aid:

Foreign non-governmental organizations.

Foreign corporations.

Foreign universities, research institutes, centers, funds, or agencies.

Associations and friendship organizations established abroad, including overseas Vietnamese communities.

Individuals from foreign countries, including overseas Vietnamese.

b)Vietnam Party and State" includes the following bodies:

Bodies under the Central Committee of the Communist Party of Vietnam.

State bodies (Office of the National Assembly, Supreme People's Procuracy, Supreme People's Court...).

Ministries, bodies equivalent to ministries, and bodies under the Government.

People's Committees of provinces and centrally-administered cities.

Political mass organizations under the Vietnam Fatherland Front.

Civil society organizations including:

Social-professional organizations.

Associations and unions (including affiliated organizations) operating nationwide, established by competent authorities.

Associations and unions (including affiliated organizations) operating in provinces and centrally-administered cities, established by the Chairman of the People's Committee of the province or centrally-administered city.

c)Managing body" refers to the bodies mentioned in Section b above.

d)Program Manager" send a text message "Project Owner" (hereinafter referred to as Project Manager) is the organization entrusted with the direct responsibility for managing and utilizing donor funds to implement the aid program/project according to the approved content. 

 

II. PREPARATION OF CONTENTS, REVIEWING, APPROVING AND SIGNING PROGRAMS AND PROJECTS

2.1. Requirements for establishing program/project documents using PCP aid

a) All PCP foreign aid programs/projects must develop a program/project outline to solicit aid with the main contents specified in Appendix 1 attached to this Circular.

The program/project outline is used by the managing body to coordinate with the donor in developing the program/project document (Programme/Project Document).

b) After the donor issues a letter confirming its commitment to provide funding or consider funding for the program/project, the managing body collaborates with the donor to complete and unify the program/project dossier for review and approval.

2.2. Reviewing and approving programs/projects:

a) Program/project documents using PCP aid

as stipulated in Article 6, Clause 1, Points a, b, e, Clause 2, Point a of the PCP Aid Regulation must be reviewed and approved by the competent authority for signing and implementation. b) For programs/projects within the approval authority of the Prime Minister

as stipulated in Article 6, Clause 1, Points a, b, and e of the PCP Aid Regulation, the Ministry of Planning and Investment is the reviewing body. c) For programs/projects within the approval authority of the heads of the managing bodies of the Vietnam Party and State

as stipulated in Article 6, Clause 2, Point a of the PCP Aid Regulation, the reviewing body is determined by the managing body.d) During the review process

, opinions that have been agreed upon or remain differing between parties must be reflected in the review report by the reviewing body.e) Relevant bodies participating in the review

bear legal responsibility for the content of their contributions regarding PCP programs/projects. g) The reviewing body organizes the review

compiles the opinions of related bodies (in writing, signed by the head of the body) and prepares a review report. The review report must clearly address the following contents:compile the opinions of relevant agencies (in writing, signed by the agency's leadership) and prepare a review report. The review report must clarify the following contents:

The objectives of the program/project must be consistent with the priorities of the Government;

The feasibility of the program/project:

i) regarding management capacity and implementation of the project;

ii) regarding coordination mechanisms during the implementation process;

iii) regarding the contribution capability of Vietnam, particularly the counterpart funding;

Reasonableness in the budget structure of the program/project:

i) for experts both within and outside the country;

ii) for training both within and outside the country;

iii) for equipment and materials;

iv) management costs and other expenses;

Commitments, preconditions, and other conditions set by the Donor for the grant (if any), as well as commitments of the Vietnamese side to implement the program/project;

Effectiveness and sustainability of the program/project after completion;

h) A valid appraisal dossier for the PCP program/project includes:

The proposal requesting appraisal from the Project Leader.

The document proposing appraisal and approval of the program/project submitted by the Head of the Managing Authority (applicable to programs/projects under the Prime Minister's approval authority).

Original program/project documents in the language used by the Donor and the Vietnamese translation agreed upon between the Project Leader and the Donor.

Notification of the Donor's commitment to provide funding or consider providing funding for the program/project.

Memorandum of Understanding (MOU) or Agreement on PCP assistance signed between representatives of Vietnam and the Donor.

All comments and suggestions from relevant agencies concerning the program/project.

A copy of the Permit issued by the Committee for Non-Governmental Organizations (as per Decision No. 340/TTg dated May 24, 1996 of the Prime Minister). In cases where there is no Permit, the Managing Authority must submit a detailed explanation in writing.

i) The review process and time limit for programs/projects under the Prime Minister's approval authority are as follows:

Within five working days from the date of receiving a complete and valid dossier (eight copies) from the Managing Authority, the Ministry of Planning and Investment shall send a document to the Office of the Government, the Ministry of Finance, the Vietnam Friendship Association, and relevant government agencies and localities requesting formal opinions on the program/project.

Within fifteen working days from the date of issuance of the document by the Ministry of Planning and Investment, relevant agencies must submit their formal opinions in writing to the Ministry of Planning and Investment. Beyond this period, if agencies do not submit written opinions, it will be considered as agreement with the contents of the program/project documents.

Within ten working days from the deadline for agency comments, depending on the nature, content, and scale of the program/project, the Ministry of Planning and Investment will:

Summarize the opinions and present them to the Prime Minister for consideration and decision, or organize an appraisal of the programs/projects with the participation of agencies such as the Office of the Government, the Ministry of Finance, the Vietnam Friendship Association, and related ministries, sectors, and localities.

The results of the appraisal will be reflected in the appraisal report.

At the latest, within five working days from the date of appraisal (if the program/project does not require revision) or from the date of receipt of the revised program/project documents according to the conclusions in the appraisal report (if the program/project requires revision), the Ministry of Planning and Investment shall submit to the Prime Minister for consideration and decision on approval.

In cases where the program/project requires adjustment, the Managing Authority is responsible for coordinating with the Donor to make revisions according to the conclusions in the appraisal report. For proposals requiring revision that are not accepted by the Donor, the Managing Authority must notify the Ministry of Planning and Investment in writing to report to the Prime Minister for decision..

Within ten working days from the date of the Prime Minister's approval of the program/project, The Managing Authority shall notify the Donor of the approval result to proceed with signing and implementing the program/project.

Within fifteen working days from the date of signing, the Managing Authority must submit to the Office of the Government, the Ministry of Planning and Investment, the Ministry of Finance, and the Vietnam Friendship Association the signed program/project documents between representatives of Vietnam and the Donor, stamped with a matching seal.

k) For programs/projects under the approval authority of the Heads of the Managing Authorities as stipulated in Article 6, Clause 2, Point a of the PCP Assistance Regulation:

The Heads of the Managing Authorities shall approve programs/projects within their jurisdiction and bear personal responsibility for their decisions.

The review process and time limit for approval of programs/projects shall be prescribed and promulgated by the Managing Authority.

For programs/projects implemented in areas related to national defense, security, religion, and ethnic issues, before deciding to approve the program/project, the Managing Authority must reach consensus with relevant agencies such as the Ministry of Public Security, the Ministry of National Defense, and the Government Religious Council. For programs/projects implemented by central agencies in localities, before deciding to approve, opinions of the People's Committees at the provincial level where the assistance programs/projects are implemented must be sought. In cases where there are differing opinions, the approving authority must report to the Prime Minister for consideration and decision.

Within ten working days from the date of approval, the Managing Authority shall notify the Donor of the approval decision to proceed with signing and implementing the program/project.

Within fifteen working days from the date of signing the program/project documents, the Managing Authority must submit to the Ministry of Planning and Investment, the Ministry of Finance, and the Vietnam Friendship Association the original approval decision, along with the approved and signed program/project documents stamped with a matching seal.

l) For grants to address post-emergency consequences (as specified in Article 2, Clause 6 of the PCP Assistance Regulation) implemented as programs/projects, the review and approval procedures shall be applied as stated above.

 

III. MANAGEMENT OF IMPLEMENTATION OF PCP PROGRAMS AND PROJECTS

3.1. Project Leader

The project sponsor (including the component project sponsor, ifany) must be identified in the decision approving the program and project ofthe competent authority of the Vietnamese side.

3.2. Program and Project Management Board

a) The supervising agency shall issue a decision to establish theProgram and Project Management Board (hereinafter referred to as the ProjectManagement Board) immediately after the program and project documents have beenapproved by the competent authority.

b) The Project Management Board represents the Project Sponsor andhas full authority to act on behalf of the Project Sponsor to implement theassigned powers and tasks from the start until the completion of the project,including final settlement, acceptance, handover for operation and use of theproject.

c) The Project Management Board must have an organizationalregulation approved by the supervising agency.

3.3. Adjustment, amendment, supplementation of the content of thePCP program and project during implementation

a) In principle, the decision-making authority that approves theprogram and project will approve any adjustments, amendments, and supplementsduring implementation.

b) For programs and projects approved by the Prime Minister:

The following adjustments, amendments, and supplements must bereferred to the Prime Minister:

Adjustments, amendments, and supplements leading to changes in theobjectives, contents, and results of the programs and projects alreadyapproved.

Adjustments, amendments, and supplements increasing the totalcapital by more than 10% compared to the approved total capital or less than10% but exceeding US$50,000 (for a single instance or cumulatively for multipleinstances).

Other adjustments, amendments, and supplements are approved bythe heads of the supervising agencies.

The procedures and deadlines for reviewing and approvingadjustments, amendments, and supplements to the content of programs andprojects approved by the Prime Minister are stipulated as follows:

Within five working days from the date of receipt of thedocumentary request accompanied by detailed explanations from the supervisingagency, the Ministry of Planning and Investment shall send a document to theOffice of the Government, the Ministry of Finance, the Vietnam Association ofFriendship Organizations, and relevant government specialized managementagencies requesting their formal opinions on the proposed adjustments,amendments, and supplements to the program and project content.

Within fifteen working days from the date the Ministry ofPlanning and Investment issues the document, the relevant agencies must submittheir formal opinions in writing to the Ministry of Planning and Investment. Ifthe agencies do not submit their opinions in writing to the Ministry of Planningand Investment beyond this period, it will be deemed as approval, and theMinistry of Planning and Investment will compile and submit to the PrimeMinister for consideration and decision.

c) For programs and projects approved by the supervising agency:

Any adjustments, amendments, and supplements that cause theprogram or project to fall under any of the cases prescribed in Article 6 Clause1 Point a, b, and e of the PCP Aid Regulation must be submitted to the PrimeMinister for consideration and approval.

Other adjustments, amendments, and supplements are approved bythe heads of the supervising agencies. The approval procedures are prescribedand issued by the supervising agency.

 

VI. MONITORING AND EVALUATING PCP PROGRAMS AND PROJECTS

4.1. The reporting system for implementing PCP aid programs andprojects is conducted periodically every six months, annually, and uponcompletion as stipulated in Article 20 of the PCP Aid Regulation according tothe templates in Appendix 2 and 3 attached to this Circular.

4.2. The Ministry of Planning and Investment will coordinate with theMinistry of Finance to take the lead in preparing the content and organizingperiodic annual inspections at selected locations as prescribed in Clause 1Article 21 of the PCP Aid Regulation.

 

V. IMPLEMENTATION

5.1. The Ministers, Heads of Ministries equivalent to Ministries,Heads of government agencies, Chairpersons of People's Committees of provincesand centrally-administered cities, Chairperson of the Vietnam Association offriendship organizations, Heads of central agencies of mass organizations andpeople's organizations are responsible for implementing this Circular.

5.2This Circular takes effect fifteen days from the date ofsignature.

During the implementation process, if there are any difficulties,related ministries, localities, and units need to promptly reflect them to theMinistry of Planning and Investment for further supplementation and completionof this Circular./.

ANNEX 1

PROGRAM AND PROJECT PROPOSAL FOR FUNDS RAISING

 

Information required on the first page of the project

1. Name/number of theprogram/project:

2. Location of theprogram/project implementation:

3. Supervising agency:

4. Program sponsor orProject sponsor:

Address:

Contact address:

5. Total value of theprogram/project:

Where:

Capital funded by PCPNNorganization (in original currency and converted to US dollars):

Counterpart capital infunds or in-kind (Vietnamese Dong):

6. Implementation timeof the program/project (expected start and end dates):

Basic contents in theprogram/project documents:

1. Brief description ofthe project:

2. The necessity of theproject (the position of the project and the issues raised in the generalcontext of the industry, locality...):

3. Objectives of theproject:

Long-term objectives:

Short-term objectives:

4. Project outcomes:

5. Project activities:

6. Project budget: (specific allocation for each activity and annually)

7. Implementation plan for the project (if necessary, divided into phases):

8. Project effectiveness analysis:

Preliminary financial effectiveness assessment

Social impact, particularly in enhancing and developing human resources

Environmental impact

The sustainability of the project during subsequent development processes.

Appendix 2

REPORT ON RECEIVING AND MANAGING FOREIGN GOVERNMENT ASSISTANCE FUNDS FOR PROGRAMS, PROJECTS, AND NON-PROJECT ACTIVITIES (SIX-MONTHLY, ANNUAL, AND AT THE END OF THE PROJECT/ASSISTANCE PERIOD) APPLICABLE TO THE ADMINISTERING AUTHORITY

1. Name of the funding organization/Country

2. Name of the assistance program/project (for projects with programs)

3. Objectives of the project/assistance

4. Administering authority and Project Manager (direct recipient and user of the assistance)

5. Project implementation period (as agreed): from month...year... to month...year...

6. Value of the assistance as agreed (clear analysis of assistance items, in cash, in kind,...) and Counterpart Funds (if any)

7. Approval document of the competent authority

8. Assistance reception results: From the start of the project implementation to before the reporting period, during the reporting period

In cash: original currency - converted to USD - converted to VND

In equipment (with detailed list, condition, value)

For experts, technical support, training costs,...

1. Distribution and utilization of assistance results

2. Evaluation of assistance effectiveness

Tel:

MODEL REPORT ON FINANCIAL IMPLEMENTATION SITUATION

Non-Governmental Assistance (six-monthly, annually) (applicable to Ministries, sectors, localities)

I. Implementation situation

Unit of Measurement

II. Assessment of implementation situation (for each program/project listed above)

(Major Technical Specifications and Other Information)

HEAD OF THE UNIT

(Signature and stamp)

Note: * calculated based on the start and end months and years of the project.