Joint Circular No. 127/2010/TTLT-BTC-BYT amends and supplements certain points of Joint Circular No. 88/2005/TTLT-BTC-BYT dated October 11, 2005, of the Ministry of Finance and the Ministry of Health guiding the financial management mechanism and some cost standards for the "HIV/AIDS Prevention and Control Project in Vietnam" funded by the World Bank's grant aid.

CIRCULAR

Amending and supplementing certain points of Circular Joint No. 88/2005/TTLT-BTC-BYT

dated October 11, 2005 of the Ministry of Finance and the Ministry of Health guiding financial management mechanisms and some expenditure norms of the project "Preventing and Controlling HIV/AIDS in Vietnam"funded by the World Bank's grant aid

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Pursuant to Decree No. 131/2006/NĐ-CP dated November 9, 2006 of the Government on issuing the Regulation on Management and Use of Official Development Assistance;

Pursuant to the Grant Agreement No. 152-VN dated May 26, 2005 between the Government of the Socialist Republic of Vietnam and the International Development Association regarding grant aid for the Project "Preventing and Controlling HIV/AIDS in Vietnam";

The Ministry of Finance and the Ministry of Health amend and supplement certain points of Circular Joint No. 88/2005/TTLT-BTC-BYT dated October 11, 2005 of the Ministry of Finance and the Ministry of Health guiding financial management mechanisms and some expenditure norms of the project "Preventing and Controlling HIV/AIDS in Vietnam" funded by the World Bank's grant aid as follows:

Article 1: Amending and supplementing certain points of Circular Joint No. 88/2005/TTLT-BTC-BYT:

1. Amend Section 2, Part I, as follows:

2. Sources of Funds of the Project

The total budget and structure of funding sources of the Project "Preventing and Controlling HIV/AIDS in Vietnam" (hereinafter referred to as the Project) are stipulated in Decision No. 260/QĐ-BYT dated February 4, 2005 of the Minister of Health approving the project "Preventing and Controlling HIV/AIDS in Vietnam," the Grant Agreement No. 152-VN dated May 26, 2005 between the Government of the Socialist Republic of Vietnam and the International Development Association, and any subsequent amendments and supplements when other donors provide funding through the World Bank for the Project.

2.1. Non-reimbursable grant funds from the World Bank and other sources provided by other donors through the World Bank for the Project.

2.2. Counterpart funds of the Government of the Socialist Republic of Vietnam:

a. Contributions in the form of physical assets, technical equipment, and existing staff of beneficiary units.

b. Contributions in the form of money allocated from the central and local state budgets to cover procurement expenses and activities of the Project Management Board at the central and local levels according to the current state budget decentralization:

- For the Central Project Management Board: To be arranged in the annual state budget estimate of the Ministry of Health by the Central State Treasury.

- For the Local Project Management Boards: To be guaranteed by the local state budget.

2. Amend Point 4.2, Section 4, Part I, as follows:

4.2. Allocation of Expenditure Responsibilities

4.2.1. For the Central Project Management Unit (CPMU)

a. Implement procurement procedures in accordance with the World Bank's regulations for medical equipment, office equipment, medicines, transportation means, and other specialized equipment to supply to provinces benefiting from the Project.

b. Expenses for minor repairs of treatment facilities at the Rehabilitation Centers and district health centers (or other healthcare facilities selected by the Ministry of Health).

c. Expenses for information, education, communication activities, and program monitoring and evaluation activities.

d. Expenses for individual and unit consultancy both domestically and internationally.

đ. Expenses for seminars, conferences, visits, training, and capacity-building programs.

e. Expenses for organizing competitions, developing initiatives, and rewarding initiatives to encourage innovation.

g. Additional activity expenses: Including travel and incidental expenses for project staff, office expenses, communication and postal service expenses, transportation expenses, tender-related expenses, and other reasonable operational expenses but excluding salaries and allowances for civil servants and public officials.

The disbursement ratio according to the source of funds for each category of expenditure shall be carried out in accordance with the provisions of the Grant Agreement No. 152-VN dated May 26, 2005 between the Government of the Socialist Republic of Vietnam and the International Development Association and any subsequent amendments and supplements.

4.2.2. For Provincial Project Management Units (PPMU)

a. Expenses for the eight provincial action programs: Including (1) Information, Education, and Communication Program to change behaviors to prevent HIV/AIDS transmission; coordinating with drug abuse and prostitution prevention programs to prevent HIV/AIDS transmission; (2) Harm Reduction Intervention Program in HIV/AIDS Prevention; (3) Care and Support Program for People Living with HIV/AIDS; (4) HIV/AIDS Surveillance, Monitoring, and Evaluation Program; (5) Treatment Access Program for HIV/AIDS; (6) Prevention of Mother-to-Child Transmission of HIV Program; (7) Management and Treatment Program for Sexually Transmitted Infections; (8) Capacity Building and International Cooperation Program in HIV/AIDS Prevention.

b. Expenses for procurement of office equipment managed and used by the PPMU.

c. Expenses for hiring individual and unit consultants.

d. Additional activity expenses: Including travel and allowance expenses for project staff, office expenses, communication and postal service expenses, tender-related expenses, but excluding salaries and allowances for civil servants...

The disbursement ratio according to the source of funds for each category of expenditure shall be carried out in accordance with the provisions of the Grant Agreement No. 152-VN dated May 26, 2005 between the Government of the Socialist Republic of Vietnam and the International Development Association and any subsequent amendments and supplements.

3. Amend Paragraph 5.1.3, Point 5.1, Section 5, Part II, as follows:

The CPMU is directly responsible for withdrawing funds from the World Bank. The CPMU may consider applying withdrawal methods from special accounts, supplementary special accounts, repayment, direct payment, and commitment letters as stipulated in Circular No. 108/2007/TT-BTC dated September 7, 2007 of the Ministry of Finance on guiding the management and disbursement of official development assistance.

4. Amend Paragraph 6.2.3.c, Point 6.2, Section 6, Part II, as follows:

6.2.3.c. If Provincial Project Management Units (PPMUs) disburse less than 50% of the initial capital within six months, the Director of the CPMU (after obtaining approval from the Ministry of Health and the World Bank) has the authority to reallocate funds to other provinces with higher demand and better disbursement progress. This provision applies from 2007 until before the special account of the project is closed.

5. Amend Section 1, Section 2, Section 3, Part III, as follows:

Add Section 1.3 to Section 1, Part III with the following content:

1.3 Adjust and supplement certain budgetary standards: The budgetary standards attached as an appendix will replace the old budgetary standards upon the effective date of this Circular.

2. Wages

2.1. Employees and collaborators hired to work regularly or irregularly at CPMU/PPMU shall be paid 100% from the World Bank (WB) grant fund (Consultancy Item, Annex 1 of the Grant Agreement). After reaching agreement with the World Bank, the Joint Ministries will guide certain wage and remuneration levels for specific professional activities as set out in the appendix attached to this Circular.

3. Allowances

Allowances shall apply to civil servants and state employees assigned to work concurrently at Project Management Units at various levels. Allowances shall be paid from the counterpart funds of the Project in accordance with Circular No. 219/2009/TT-BTC dated November 19, 2009, issued by the Ministry of Finance on establishing certain budgetary standards applicable to Projects utilizing Official Development Assistance (ODA) loans.

Article 2: Effective Date:

This Circular shall take effect 45 days from the date of issuance./.