Circular No. 134/1998/TT-BTC guides the financial management mechanism for the Forest Protection and Rural Development Project.

CIRCULAR

of the Ministry of Finance No. 134/1998/TT-BTC dated October 15, 1998 guiding

 the financial management mechanism for the forest protection and rural development project

Pursuant to:

Credit Agreement for Development signed between the Government of Vietnam and the International Development Association (IDA) on November 8, 1997 regarding the Forest Protection and Rural Development Project;

Agreement between the Government of Vietnam and the International Development Association signed on November 8, 1997 concerning the Dutch government's co-financing entrusted to the International Development Association to implement the Forest Protection and Rural Development Project;

Decree No. 87/CP dated August 5, 1997 of the Government promulgating the regulations on managing and using official development assistance;

Decree No. 42/CP dated July 16, 1996 and Decree No. 92/CP dated August 23, 1997 of the Government promulgating and amending the charter for investment and construction management;

Decree No. 43/CP dated July 16, 1996 and Decree No. 93/CP dated August 23, 1997 of the Government promulgating and amending the bidding regulations;

Decree No. 87/CP dated December 19, 1996 of the Government detailing the procedures for managing, preparing, and executing the state budget and related Circulars guiding the implementation of these Decrees.

Decree No. 178/CP dated October 28, 1994 of the Government stipulating the tasks, authorities, and organizational structure of the Ministry of Finance;

Joint Circular No. 81/1998/TTLT/BTC/NHNN dated June 17, 1998 of the Ministry of Finance and the State Bank of Vietnam guiding the procedures, formalities, and management of withdrawing funds from official development assistance sources;

Decision No. 693/TTg dated August 27, 1997 of the Prime Minister approving the Forest Protection and Rural Development Project;

After reaching consensus with the Ministry of Agriculture and Rural Development;
The Ministry of Finance guides the management and use of project funds as follows:

PartI

INTERPRETATION OF TERMS

In this Circular, the following terms shall be understood as follows:

1.1. The project owner is the Ministry of Agriculture and Rural Development (MARD). To implement the project and coordinate project activities, MARD establishes the Central Project Management Board.

1.2. The Provincial Project Management Board is one of the provincial Project Management Boards (5 provinces) and the protected area (1 area) with powers and responsibilities defined in the decisions establishing the Project Management Boards of MARD.

1.3. IDA is the International Development Association.

1.4. The project is the Forest Protection and Rural Development Project according to Decision No. 693/TTg dated August 27, 1997 of the Prime Minister.

1.5. Loan capital is the IDA loan capital provided to the Government of Vietnam under the Development Credit Agreement No. 2996-VN signed on November 8, 1997 for the project. 1.6. Grant capital is the non-reimbursable grant capital provided by the Dutch Government to the Government of Vietnam under the Grant Agreement No. TF 021604 signed on November 8, 1997 for the project. This grant capital is entrusted at IDA and disbursed from IDA.

1.7. The Agreements are the Development Credit Agreement No. 2996-VN and the Non-Reimbursable Grant Agreement No. TF 021604 signed between the Government of Vietnam and IDA on November 8, 1997 for the project.

1.8. Counterpart capital is the capital contribution of the Government of Vietnam in the project, allocated in the annual investment plan for construction and development handed over to MARD. This capital is disbursed by the central budget to MARD to implement the project.

1.9. Serving bank is the Vietnam Agricultural and Rural Development Bank (VARD Bank).

1.10. Special account: Is the project account (Central Project Management Board) opened at VARD Bank to receive loan/grant capital transferred from IDA.

1.11. Capital disbursement account: Is the accounts of the Project Management Boards opened at the Provincial Investment Development Bureaus to monitor the use of loan, grant, and counterpart capital disbursed to the project.

1.12. Currency of the special account: is US Dollar.

1.13. Currency of the capital disbursement account: is Vietnamese Dong.

PartII

GENERAL PROVISIONS

       I. SOURCES OF PROJECT FUNDS

1. The project is funded by the following sources:

1.1. IDA loan capital;

1.2. Non-reimbursable grant capital of the Dutch Government entrusted through IDA

1.3. Counterpart capital of the Government of Vietnam.

II. CONTENTS OF EXPENDITURE FROM PROJECT FUNDS:

2.1. IDA loan capital

- Land allocation

- Social support program - Agricultural support services

- Buffer zone forest management

- Rural infrastructure development

- Project management and organizational strengthening

2.2. Grant capital

- Protected area forest management

- Community planning

- Project management and organizational strengthening

2.3. Counterpart capital:

- Protected area forest management

- Community planning

- Land allocation

- Social support program

- Agricultural support services

- Buffer zone forest management

- Rural infrastructure development

- Project management and organizational strengthening.

2.4. The IDA loan capital and the Dutch Government grant capital are part of the State Budget revenue of the Government of Vietnam. The Ministry of Finance is responsible for collecting them into the State Budget and allocating them through the Provincial Investment Development Bureau to MARD to implement the approved project, and monitoring the loan and repayment when due (both principal and interest).

2.5. The Provincial Investment Development Bureau responsible for allocating funds to the project must manage the finances, inspect, confirm the volume of work completed, and directly allocate funds to the project.

2.6. The project receives funding from two sources, domestic and foreign. Domestic funding is implemented according to current State regulations. Foreign funding is allocated according to this Circular, consistent with domestic regulations and donor requirements.

2.7. MARD is responsible for using the funds for their intended purposes and contents as approved, consistent with the conditions committed in the loan agreement, grant agreement, and related documents.

2.8. MARD is responsible for managing and supervising the assets of the project and the Project Management Board according to current State regulations.

2.9. VARD Bank is responsible for serving the withdrawal of funds from IDA for payment to the project upon approval by the Ministry of Finance. During the process of withdrawing loan funds, VARD Bank will charge service fees for each withdrawal (including opening L/C fees, document submission fees, telegrams, faxes...) according to the current decision of the Governor of the State Bank on charging service fees for bank transactions. These service fees are included in the total project costs.

PartIII

SPECIFIC PROVISIONS

I. OPENING ACCOUNTS:

1.1. At VARD Bank, the Central Project Management Board opens 2 Special Accounts, one for IDA capital and one for Dutch capital (hereinafter referred to as Special Account).

1.2. At the Hanoi Investment Development Bureau, the Central Project Management Board opens a disbursement account to monitor the use of funds allocated for the project.

1.3. At the Local Investment Development Bureau, the Provincial Project Management Board opens a disbursement account to receive counterpart funds and monitor foreign funds allocated for the project in the province.

II. ESTABLISHING AND REGISTERING THE PROJECT CAPITAL PLAN

2.1. Annually, based on the provisions set forth in the guiding documents implementing the State Budget Law, the Law Amending and Supplementing Certain Provisions of the State Budget Law; based on the expenditure standards and norms prescribed for the project, the Central Project Management Board prepares the annual budget estimate of the project to be submitted to the Ministry of Agriculture and Rural Development for consolidation into the annual state budget estimate (Construction Investment and Construction Cost Recovery), which will then be sent to the Ministry of Planning and Investment and the Ministry of Finance for consolidation into the national state budget estimate to be submitted to the Government and the National Assembly for approval.

2.2. The capital plan for the project must detail the tasks to be carried out, sources of loan and grant funds, the schedule for withdrawing loan and grant funds, and the necessary counterpart funds for each component of the project.

2.3. Based on the annual budget estimate assigned by the Prime Minister, the Ministry of Agriculture and Rural Development allocates capital to the project and notifies the Central Project Management Board.

After receiving notification from the Ministry of Agriculture and Rural Development, the Central Project Management Board prepares a detailed budget estimate consistent with the plan announcement for approval by the Ministry of Agriculture and Rural Development.

Based on the approved detailed annual budget estimate of the project, the Central Project Management Board establishes a withdrawal plan. The content of the withdrawal plan is detailed by quarter, by each task, and by each source of funding including counterpart funds, among which separate plans must be established for components paid under the Special Account mechanism. This plan must be registered with the Ministry of Finance (Department of Financial Affairs for Foreign Relations) and simultaneously sent to relevant agencies (Investment General Department, Agricultural Bank of Vietnam).

On the basis of the registered annual withdrawal plan, quarterly, the Central Project Management Board establishes a quarterly withdrawal plan through the Special Account and sends it to the Ministry of Finance (Investment Development General Department) for review and approval. This plan must be detailed according to the content of the work and the proportion of funding from each source (loans, grants).

In the plan registered with the Ministry of Finance, the activities and capital implemented at the central level and the activities and capital implemented at each local level must be clearly stated.

The registration form for the plan follows the model specified in Circular Jointly Issued by the Ministry of Finance and the State Bank of Vietnam No. 81/1998/TC-NH dated June 17, 1998, guiding procedures, formalities, and management of the withdrawal of funds from official development assistance.

2.4. The approved budget estimate of the project is notified by the Investment Development General Department to the relevant Local Investment Development Bureaus to monitor the use and allocation of project funds.

III. PRINCIPLES OF DISBURSEMENT, STANDARDS, AND UNIT PRICES IN THE USE OF LOAN FUNDS, GRANT FUNDS, AND COUNTERPART FUNDS

3.1. Principles of disbursement:

3.1.1. For forest regeneration investment:

- Forest protection and conservation quotas are disbursed monthly

- Reforestation is disbursed and settled according to reasonable technical stages, including:

. Preparation of seedlings, fertilizers, and conditions for reforestation.

. Implementation of reforestation

. Care and protection in the first year

Disbursements are made in accordance with Decision No. 661/QĐ/TTg dated July 29, 1998 of the Prime Minister. The project is advanced 30% of the approved budget estimate. When the project manager achieves 50% progress, an additional 40% can be advanced. At the end of the year, after the acceptance report is approved, the Investment Development Bureau settles the remaining amount of the approved budget estimate.

3.1.2. For infrastructure and public welfare investment funds, they are managed and disbursed according to the current regulations on construction investment and construction cost recovery.

3.1.3. For funds with a public service nature:

- Project Management Board expenses, agricultural and forestry extension costs are temporarily disbursed monthly: At the end of the month, the unit that has received funds is responsible for settling with the Investment Development Bureau the amount disbursed according to the approved budget estimate and the current state regulations. After reviewing this settlement, the Investment Development Bureau advances the next month's expenses.

- Funds for relocation and resettlement activities of the project are disbursed based on the actual number of households relocated to the project area within the approved annual plan. The Project Management Boards are advanced 50% of the approved amount for each relocation phase. After completing the relocation phase, the Project Management Boards are responsible for preparing a settlement file with confirmation from the provincial relocation agency to disburse the remaining amount according to the prescribed regulations.

3.2. Standards and unit prices for settlement

3.2.1. Domestic training and seminars:

The average expenditure does not exceed 200 USD/person/week (including materials, accommodation, speakers...).

3.2.2. Overseas training and instruction:

The expenditure for officials participating in overseas training and instruction is applied according to Circular No. 32 TC/TCĐN dated April 21, 1995 and Circular No. 44 TC/TCĐN dated May 21, 1994 of the Ministry of Finance.

3.2.3. Expenses for consulting experts:

The selection of consultants must be carried out according to domestic regulations (Decree 43/CP, Decree 93/CP) and the regulations of the sponsors. The consultant's dossier (domestic and foreign) must be officially approved in writing by the Ministry of Agriculture and Rural Development.

Domestic consultants: domestic consultants must be carefully selected based on specific project requirements, expertise, and current regulations on consultant selection. The salary of domestic consultants shall not exceed 500 USD/month.

3.2.4. For construction works: apply current construction standards and unit prices.

3.2.5. For forestry works such as planting and protecting forests, apply the standards of the State as for projects under the 5 million hectares of forest program (according to Decision No. 661/QĐ/TTg dated July 29, 1998 of the Prime Minister) and adjust according to each period.

3.2.6. For other works, follow the current regulations.

3.2.7. In the absence of established norms or unit prices, the norms approved by the Ministry of Agriculture and Rural Development for each specific case shall be applied, based on the participation opinions of the Ministry of Finance and other relevant agencies.

IV. TRANSFERS OF FOREIGN FUNDS BETWEEN LEVELS

4.1. Withdrawal from IDA to make direct payments and special commitments:

This procedure is carried out at the central level.

Based on the payment request from the supplier of goods or services, upon verification that the request meets the conditions for payment, the Central Project Management Board prepares a withdrawal application from the loan and grant accounts and necessary documents to send to the Ministry of Finance (Department of Foreign Finance). The payment file includes:

- Application form for withdrawal

- Letter requesting withdrawal

- Copy of procurement contract for goods and equipment (only sent once)

- Copy of consultancy contract (only sent once)

- Copy of other economic contracts (only sent once)

- Documents proving the validity of the contract (government approval document or government authority, opinion of IDA or tender results for construction contracts and procurement over $150,000 and consultancy contracts over $100,000 for companies and over $50,000 for individuals) (only sent once).

- Bank guarantee (advance payment guarantee and performance guarantee) in cases of advance payment under the contract.

Within five working days from the date of receipt of complete and valid withdrawal files, the Ministry of Finance (Department of Foreign Finance) examines and reviews and issues a written opinion to the Central Project Management Board and the Agricultural Bank.

Based on the written approval of the Ministry of Finance, within a maximum of two working days, the Agricultural Bank cooperates with the Central Project Management Board to sign the withdrawal application to be sent to IDA for payment to the beneficiary (contractor, supplier).

After receiving notification from IDA about the completion of the withdrawal payment, the Central Project Management Board is responsible for notifying the Ministry of Finance (Department of Foreign Finance) to process the budget accounting (record loan and grant receipts; record expenditures for the Ministry of Agriculture and Rural Development).

The circulation of documents and the relationship between agencies in direct payments and special commitments are shown in Appendix 1 and Appendix 2.

4.2. Withdrawal to Special Account

The initial withdrawal to the Special Account is based on existing effective agreements, annual budget estimates approved, and project withdrawal plans registered.

Additional withdrawals to the Special Account are based on annual budget estimates approved, project withdrawal plans registered, and legitimate expenditures already paid from the project's Special Account.

To withdraw funds to the Special Account, the Project Management Board prepares the following documents to submit to the Ministry of Finance (Department of Foreign Finance):

- Withdrawal application form according to IDA's template.

- Request for withdrawal of funds.

For additional withdrawals to the Special Account, the Central Project Management Board sends the following additional documents to the Ministry of Finance (Department of Foreign Finance):

- Expenditure statement prepared by the Central Project Management Board.

- Payment vouchers confirmed by the Ministry of Finance (Investment Development Department where the funds were provided).

- For withdrawals from the Special Account to repay Investment Development Departments as stipulated in Section 5.3 below, confirmation from the National Investment Development General Department is not required but must include a statement from the Investment Development Department where the funds were advanced (copy).

- Detailed statement of Special Account usage prepared by the Agricultural Bank.

Based on the aid agreement, approved budget estimates, and registered project withdrawal plans, within five working days, the Ministry of Finance reviews and issues a written opinion to the Agricultural Bank and the Central Project Management Board.

Based on the written approval of the Ministry of Finance, within no more than two working days, the Agricultural Bank cooperates with the Central Project Management Board to sign the withdrawal application to be sent to IDA.

Upon receipt of notification that the funds have been transferred to the project's Special Account, the Agricultural Bank immediately notifies the Ministry of Finance (Department of Foreign Finance, National Investment Development General Department) and the Central Project Management Board in writing.

The process of withdrawing funds to the Special Account is illustrated in the diagram in Appendix 3.

V. IMPLEMENTATION OF FUNDS DISBURSEMENT FROM THE SPECIAL ACCOUNT

Funds disbursement from the Special Account is based on legitimate expenditures: consistent with the project content, included in the approved budget estimate and registered withdrawal plan, and in accordance with regulations, management levels, and project expenditure review procedures.

Confirmation of project payments at the central level (from the Special Account to pay for Central Project Management Board expenditures) will be processed through the Investment Development Department where the Central Project Management Board has an account.

Inspection and disbursement of funds (including counterpart funds) for projects at the local level will be processed through the Provincial Investment Development Department.

5.1. Disbursement at the Central Level.

Each payment from the Special Account must comply with the foreign-to-domestic funding ratio specified in loan and aid agreements. If non-compliance with the specified ratio is detected, the Ministry of Finance will suspend additional withdrawals for that expenditure.

Based on the approved budget estimate, the registered annual withdrawal plan, the quarterly withdrawal plan reviewed by the National Investment Development General Department, and the project work volume meeting payment conditions, the Central Project Management Board requests the Agricultural Bank to make payments from the Special Account (for final contract payments or one-time payments, prior confirmation from the Ministry of Finance (Hanoi Investment Development Department) is required).

To supplement the Special Account, the Central Project Management Board sends the following documents to the Hanoi Investment Development Department to confirm the legitimacy of expenditures from the Special Account according to the general plan:

- Bid award decision (only sent once).

- Economic contracts signed between the Central Project Management Board and winning bidders have been approved by the competent authority according to the prescribed regulations (to be sent only once).

- Completion quantity acceptance certificates between the project owner and contractors and other related documents.

Within five working days from receipt of the documents, the Hanoi Investment Development Bureau shall examine and verify the validity of each expenditure item and issue a confirmation letter to the Central Project Management Board.

The process of transferring funds for payment to the Central Project Management Board is described in Appendix 4.

5.2. Disbursement at the local level

The counterpart funds in the annual plan approved and announced by the General Department of Investment Development for the respective Investment Development Bureaus to be used for (i) disbursing counterpart funds for projects according to the progress of work and (ii) serving as a source of advance payments to settle or temporarily advance funds for valid payment requests of the Provincial Project Management Boards.

Valid payment requests of the project are payment requests for project activities carried out in accordance with the stipulated ratios in the Agreements, current procedures of IDA, and the Vietnamese Government, meeting the conditions for payment or temporary advances while applying the principles and disbursement rates specified in Part III of this Circular.

The Provincial Investment Development Bureau, based on the annual counterpart fund limit announced for the project in the province, shall make payments or temporary advances for valid payment requests of the Provincial Project Management Board.

After making payments or temporary advances to the project, the Provincial Investment Development Bureau shall implement the procedures to recover the counterpart funds for the portions already advanced or temporarily paid instead of foreign funds as provided in Section 5.3 below.

To obtain funds, the Provincial Project Management Board shall submit the following documents to the Provincial Investment Development Bureau:

- Payment or advance request for funds broken down by the ratio of each funding source.

- The project's annual capital plan announced by the superior agency including the assigned forest planting, care, and protection targets (to be sent only once). - Budget estimates, total budget estimates (including supplements) approved by the competent authority (once).

- Bid award decision (to be sent only once).

- Economic contracts signed between the Project Management Board and households (regarding forestry investment), and units that have been awarded contracts, which have been approved by the competent authority according to the prescribed regulations.

- Completion quantity acceptance certificates between the project owner and households receiving assignments, contractors, and other related documents.

Within five working days from receipt of complete and valid documents, the Provincial Investment Development Bureau shall be responsible for reviewing and inspecting the volume of work or construction works that meet the conditions for disbursement or temporary advances, and carry out payments or temporary advances to the Provincial Project Management Board according to the prescribed regulations.

The disbursement process at the local level is illustrated in the diagram in Appendix 5.

5.3. Recovery of Funds for Provincial Investment Development Bureaus

5.3.1. After disbursing counterpart funds and advancing foreign funds to the Provincial Project Management Board (or within a maximum of one month in case the project has expenses in the month), the Provincial Investment Development Bureau shall prepare a recovery request to send to the Provincial Project Management Board, simultaneously sending it to the General Department of Investment Development.

The recovery request sent to the Provincial Project Management Board shall be accompanied by a detailed statement of advances made by the Investment Development Bureau, itemized by each advance period, each category, amount advanced, and funding ratio.

Within a maximum of two working days from receipt of the recovery request and the detailed statement of advances made by the Provincial Investment Development Bureau, the Provincial Project Management Board shall review and confirm the payment or temporary advance received and send a recovery request to the Central Project Management Board for the Provincial Investment Development Bureau.

Within a maximum of two working days from receipt of the recovery request from the Provincial Project Management Board, the Central Project Management Board shall prepare a request to withdraw funds from the Special Account of the project to the Agricultural Bank. Upon receipt of the withdrawal request from the Central Project Management Board, within a maximum of two working days, the Agricultural Bank shall transfer the recovered funds to the Provincial Investment Development Bureau, simultaneously informing the Central Project Management Board and the General Department of Investment Development. In the notification, the date of transfer, the amount transferred, and the exchange rate at the time of transfer must be clearly stated.

Upon receipt of the notification from the Agricultural Bank, the Central Project Management Board shall inform the Provincial Project Management Board to monitor the use of funds.

Recovered funds for the Investment Development Bureau shall be used as one of the sources for advancing funds for subsequent periods.

In cases where the Investment Development Bureau does not have sufficient sources to advance funds (for the foreign portion) to the Provincial Project Management Board, the Investment Development Bureau shall report to the General Department of Investment Development. In such cases, after verifying the volume of work that meets the conditions for payment or temporary advances, the Investment Development Bureau shall issue a confirmation letter for valid payment requests and return them to the Provincial Project Management Board. The Provincial Project Management Board shall submit the payment request with the confirmation of the Investment Development Bureau to the Central Project Management Board to withdraw funds from the Special Account of the project.

The process of recovering funds for the Provincial Investment Development Bureau is shown in Appendix 5.

The format of the statement is shown in Appendix 6.

VI. DISBURSEMENT AND PAYMENT OF COUNTERPART FUNDS:

6.1. Based on the approved annual counterpart fund plan (allocated to central and local levels) of the project, the General Department of Investment Development system shall manage and disburse counterpart funds according to the project implementation schedule, in compliance with current regulations on managing and disbursing basic construction investment funds.

VII. STATEMENTS FROM THE AGRICULTURAL BANK, INTEREST ON DEPOSITS:

7.1. Monthly, the Agricultural Bank must send a statement of the Special Account of the project at the bank to the Ministry of Finance (Department of Foreign Finance), showing the amount withdrawn during the month; detailed usage by each usage and exchange rate; end-of-month balance.

7.2. For withdrawals from the Special Account to repay capital to Provincial Investment Development Bureaus as stipulated in Part 5.3, the Agricultural Bank must clearly record in the statement the number and date of the request for repayment issued by the Provincial Investment Development Bureau accompanying the withdrawal request from the Central Project Management Board.

7.3. While unused loan funds on the Special Account generate interest (interest rate for demand deposits), on the 5th day of each month, the Agricultural Bank must remit all accrued interest from the Special Account to the State Budget (the State's foreign currency reserve account at the State Bank (Trading Department)). Account number 331.213.020.1.

VIII. ACCOUNTING RECORDS, AUDIT, REPORTING AND SETTLEMENT:

8.1. Accounting Records:

The Project Management Boards shall conduct accounting records and statistics in accordance with current regulations of the State.

The Provincial Investment Development Bureaus shall conduct accounting and statistics in accordance with the guidance of the General Bureau of Investment Development.

8.2. Inspection:

The supervisory bodies of the project, central and local functional management agencies, and the General Bureau of Investment Development have the responsibility to inspect the implementation of plans, financial management systems, and actual progress of the project, and promptly reflect any issues or difficulties encountered during management to the Ministry of Finance and the Ministry of Planning and Investment for resolution.

Any violations (if any) discovered during inspections and audits shall be handled in accordance with current regulations.

Funds allocated to projects that are found to be misused or improperly disbursed through audits and inspections shall be recovered and deposited into the State Budget.

Annually, the Special Account, ledgers, and accounting files of the project must be audited by an independent auditing agency in compliance with State regulations, loan agreements, and aid agreements. Audit documents will be submitted to the Ministry of Finance and serve as one of the bases for considering additional disbursements to the Special Account or withdrawals from the Special Account for payments, as well as for evaluating the implementation of the project.

8.3. Reporting:

Monthly, the Provincial Project Management Board has the responsibility to prepare and submit implementation reports to the Provincial Investment Development Bureau that provided funding, while also submitting to the Central Project Management Board.

The Provincial Investment Development Bureaus that provided funding have the responsibility to compile and report to the General Bureau of Investment Development on the allocation and advance payment situation in their respective areas. Quarterly, based on the reports from the Provincial Investment Development Bureaus, the General Bureau of Investment Development compiles and reports to the Ministry of Finance.

Quarterly, the Central Project Management Board has the responsibility to report in detail on expenditures from the Special Account according to the levels approved by the Ministry of Finance to the Ministry of Agriculture and Rural Development and the Ministry of Finance (Department of Foreign Financial Affairs, General Bureau of Investment Development).

Every six months, the Ministry of Agriculture and Rural Development has the responsibility to compile and report to the Ministry of Finance (Department of Foreign Financial Affairs, General Bureau of Investment Development), the Ministry of Planning and Investment, and the State Bank on the implementation of projects including forest protection and rural development projects, the use of loan funds, aid funds, and government counterpart funds.

Monthly, the Agricultural Bank has the responsibility to notify the Ministry of Finance (Department of Foreign Financial Affairs) and the State Bank (Trading Department) about the expenditure statements of the Special Account. In the statement, it clearly indicates the interest accrued in the month and the date of transferring the interest to the Ministry of Finance.

The Central Project Management Board provides detailed guidelines on the reporting formats of the project.

8.4. Annual Capital Settlement and Final Project Settlement:

Local Project Management Boards prepare final settlement reports for expenses incurred locally, confirmed by the Provincial Investment Development Bureau that provided funding, and report to the Central Project Management Board.

The Central Project Management Board prepares final settlement reports for expenses incurred centrally, confirmed by the funding authority, and simultaneously compiles the entire project settlement report for review and approval by the Ministry of Agriculture and Rural Development. The Ministry of Agriculture and Rural Development is responsible for settling the project implementation costs and final settlement with the Ministry of Finance.

Part 4

IMPLEMENTING PROVISIONS

This Circular takes effect fifteen days from the date of signature. During implementation, if there are any issues, the Central Project Management Board, the Ministry of Agriculture and Rural Development, the Agricultural Bank, and other relevant agencies need to promptly reflect them to the Ministry of Finance for study, revision, and supplementation.

 

ANNEX 1
DIRECT PAYMENT

1. The Central Project Management Unit signs a contract with the contractor. The contractor implements the contract and requests payment.

2. The Central Project Management Unit reviews and approves payment to the contractor and prepares withdrawal forms and supporting documents for submission to the Ministry of Finance for review.

3. The Ministry of Finance reviews and agrees for the Agricultural Bank to sign the withdrawal form to send to the World Bank.

4. The World Bank reviews the withdrawal form and pays the contractor.

 

ANNEX 2
SPECIAL COMMITMENT PROCEDURE PAYMENT

(1) The Project Management Board signs a contract with the contractor.

(2) The Project Management Board collects documents and sends them to the Ministry of Finance.

(3) The Ministry of Finance reviews and provides comments to the Project Management Board and the servicing bank. Based on the Ministry of Finance's agreement, the Project Management Board requests the servicing bank to open a Letter of Credit and sign a special commitment issuance application.

(4) Based on the Ministry of Finance's comments, the servicing bank opens a Letter of Credit and signs a special commitment letter to send to the World Bank.

(5) The World Bank reviews and issues the special commitment and notifies the Project Management Board and the seller's bank.

(6) The World Bank pays the seller (or the seller's bank) according to the contract terms.

 

ANNEX 3
INITIAL AND ADDITIONAL FUNDS WITHDRAWAL FOR THE SPECIAL ACCOUNT

1. The Central Project Management Unit collects documents to request initial and additional fund withdrawal into the Special Account and submits them to the Ministry of Finance (Department of Foreign Financial Affairs).

2. The Ministry of Finance reviews and agrees for the Agricultural Bank to sign the withdrawal form to send to the World Bank.

3. The World Bank reviews and transfers funds into the Special Account (at the Agricultural Bank).

 

ANNEX 4
WITHDRAWAL FROM THE SPECIAL ACCOUNT

1. Register annual withdrawal plan (foreign funds, counterpart funds) (Ministry of Finance - Department of Foreign Financial Affairs)

2. Request approval of quarterly withdrawal plan (General Bureau of Investment Development)

3. Contractor requests payment

4. BQLDATU reviews based on the approved withdrawal plan and requests the Agricultural Bank to make payment

5. The Agricultural Bank transfers payment to the contractor.

ANNEX 5
PROVINCIAL LEVEL ALLOCATION AND CAPITAL REPAYMENT
FOR PROVINCIAL INVESTMENT DEVELOPMENT BUREAU

1. The contractor requests payment

2. The Provincial Project Management Board examines and recommends the Provincial Investment Department to make payment according to the contractor's request. 3. The Provincial Investment Department makes payment according to the recommendation of the Provincial Project Management Board

4. The Provincial Investment Department requests the Provincial Project Management Board to repay the capital

5. The Provincial Project Management Board sends the request for repayment to the Central Project Management Board

6. The Provincial Project Management Board requests the Agricultural Development Bank to transfer the repayment capital to the Provincial Investment Department

7. The Agricultural Development Bank transfers the capital to the Provincial Investment Department

ANNEX 6

REIMBURSEMENT VOUCHER FOR THE CAPITAL ALREADY ADVANCED FOR PROVISIONAL PAYMENT OF THE PROJECT

Forest Protection and Agricultural Development Project

Provincial Investment Development Department:

Period: from...to...