Decree No. 16/2016/NĐ-CP on Management and Use of Official Development Assistance (ODA) and Preferential Loans from Foreign Donors

DECREE

Von the management and use of official development assistance (ODA) capital

and preferential loans from foreign sponsors

_________________

 

pursuant to the Government Organization Law on June 19, 2001015;

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to Decree No. 106/2012/ND-CP dated December 20, 2012 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor - Invalids and Social Affairs;intention joining and implementing international treaties on June 14, 2005;

pursuant to the Public Debt Management Law on June 17, 2009;intention pursuant to the Public Investment Law on June 18, 2014;

Pursuant to the Law on Bidding dated November 26, 2013;

pursuant to the Investment Law on December 26,

Pursuant to the Law on Construction promulgated on June 18, 2014;

2013; 11 year 2014;

At the proposal of the Minister of Finance,inTHE MINISTER OF PLANNING AND INVESTMENT,

Government issues this Decree on the management and use of official development assistance (ODA) capitalỗ and preferential loans from foreign sponsors.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates the management and use of official development assistance (ODA) capital and preferential loans provided by foreign sponsors, international organizations, intergovernmental or interregional organizations, or governmental organizations authorized by foreign governments (hereinafter referred to collectively as foreign sponsors) to the State or the Government of the Socialist Republic of Vietnam.

Article 2. Applicability

This Decree applies to agencies, organizations, and individuals participating in or related to the activities of managing and using ODA capital and preferential loans from foreign sponsors, and counterpart funds from the Vietnamese side.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

1. The Steering Committee for Programs and Projects Using ODA and Preferential Loans (hereinafter referred to as "Steering Committee") is an organization established by the competent agency managing programs and projects using ODA and preferential loans (hereinafter referred to as "programs and projects") with the participation of representatives of relevant agencies to direct, coordinate, and supervise the implementation of programs and projects. In certain cases, upon agreement with foreign sponsors, the Steering Committee may include representatives of foreign sponsors.

2. The Management Board for Programs and Projects Using ODA and Preferential Loans (hereinafter referred to as "Project Management Board") is an organization established to assist the project sponsor in managing and implementing one or more programs and projects.

3. The Report Proposing Investment Policy for Programs and Projects Using ODA and Preferential Loans (hereinafter referred to as "Report Proposing Investment Policy") is the report proposing investment policy as prescribed in the Public Investment Law, prepared for programs and projects using ODA and preferential loans, except for national key projects and Group A projects using ODA and preferential loans, serving as the basis for the competent authority to decide on the investment policy for programs and projects.

4. The Preliminary Feasibility Study Report for Projects Using ODA and Preferential Loans (hereinafter referred to as "Preliminary Feasibility Study Report") is the preliminary feasibility study report as prescribed in the Public Investment Law, prepared for national key projects and Group A projects using ODA and preferential loans, serving as the basis for the competent authority to decide on the investment policy for projects.

5. A program is a set of activities and projects using ODA and preferential loans that are related to each other and may relate to one or more sectors, fields, regions, and different subjects aimed at achieving one or more specific goals, implemented over one or more phases.

6. A program with a policy framework is a program where the disbursement conditions for ODA and preferential loans from foreign sponsors are linked to the commitment of the Vietnamese Government to develop and implement policies, institutions, and solutions for socio-economic development according to the scale and implementation schedule agreed upon by all parties.

7. A program or project with a lead agency (hereinafter referred to as "program or project with a lead agency") is a program or project in which one agency plays the role of the lead agency, performing the overall coordination function, while other lead agencies participate in managing, implementing, and benefiting from component projects within the program or project.

8. Regional and Global Programs and Projects (hereinafter referred to collectively as "Regional Programs and Projects") are programs and projects funded on a global scale or for a group of countries within a region or multiple regions to carry out cooperative activities to achieve specific goals for the benefit of participating parties and the common good of the region or the world. Vietnam's participation in these programs and projects can take two forms:

a) Participating in implementing one or more activities already designed by foreign sponsors in regional programs and projects;

b) Implementing activities to prepare and carry out programs and projects within the framework of regional programs and projects for Vietnam.

9. An industry-oriented access program is a program using ODA and preferential loans based on the development plan of a sector or field to provide comprehensive support, ensuring sustainable and effective development of that sector or field.

10. The competent agency managing programs and projects using ODA and preferential loans (hereinafter referred to as "Competent Agency") is a central agency of political organizations, the Supreme People's Procuracy, the Supreme People's Court, agencies under the National Assembly, the State Audit Office, the Office of the President, Ministries, ministerial-level agencies, agencies under the Government, Provincial People's Committees (hereinafter referred to collectively as "Provincial People's Committees"), central agencies of the Vietnam Fatherland Front and political-social organizations, political-social-professional organizations, and social-professional organizations that have programs and projects using ODA and preferential loans.

11. The Program and Project Sponsor Using ODA and Preferential Loans (the investor for investment programs and projects, the project sponsor for technical assistance programs and projects - hereinafter referred to collectively as "Project Sponsor") is the unit entrusted by the competent agency with the responsibility to manage and use ODA and preferential loans, and counterpart funds to implement programs and projects.

12. The domestic financial mechanism applicable to programs and projects using ODA and preferential loans (hereinafter referred to as "domestic financial mechanism") includes provisions on the use of ODA and preferential loans from the state budget for programs and projects, including:

a) Full allocation;

b) Partial loan repayment with a specific loan repayment ratio;

c) Full loan repayment.

13. The project is a collection of proposals for using ODA funds, preferential loans, and counterpart funds of Vietnam that are related to each other to achieve one or more specific objectives, implemented in a specific area within a defined period and based on determined resources. Depending on their nature, projects are classified into investment projects and technical assistance projects.

14. An investment project is a project conducting investment activities in a specific area within a defined period. Depending on their nature, investment projects include two types:

a) Investment projects with construction components are new construction, expansion, upgrading, or renovation projects aimed at developing, maintaining, or improving the quality of facilities, products, or services within a certain period, including the purchase of assets and equipment for the project;

b) Investment projects without construction components are asset purchase projects, repair, upgrade of equipment and machinery, and other investment projects not specified in point a of this clause.

15. A technical assistance project is a project with the goal of supporting policy research, institutional, professional, and operational capacity building, or preparing to implement other programs and projects through activities such as providing domestic and international experts, training, supporting some equipment, materials, and documents, field visits, and seminars both domestically and internationally. Technical assistance projects include technical assistance projects using non-repayable ODA funds and technical assistance projects using ODA loans and preferential loans.

16. International agreements on ODA funds and preferential loans are international agreements concerning the reception, management, and use of ODA funds and preferential loans, including:

a) Framework international agreements on ODA funds and preferential loans are international agreements regarding principles and framework conditions related to strategy, policies, cooperation frameworks, priority sectors, programs, and projects; standards to be followed in the provision and use of ODA funds and preferential loans; commitments of ODA funds and preferential loans for one year or multiple years, and other contents agreed upon by the contracting parties;

b) Specific international agreements on ODA funds and preferential loans are international agreements concerning specific contents related to objectives, activities, implementation timeframes, and results to be achieved; financing conditions, capital, capital structure, financial conditions of loans, and repayment schedules; management procedures; obligations, responsibilities, and authorities of the parties in managing and implementing programs and projects using ODA funds and preferential loans, and other contents agreed upon by the contracting parties.

17. Budget support is a method of providing ODA funds and preferential loans whereby the support amount is directly transferred into the state budget, managed and used in accordance with state budget regulations to achieve the set goals based on agreements with foreign donors.

18. A bank serving programs and projects using ODA funds and preferential loans is a commercial bank recognized and announced by the State Bank of Vietnam as meeting the criteria for handling foreign exchange transactions for ODA funds and preferential loans, and selected by the agency responsible for negotiating international agreements and agreements on ODA funds and preferential loans to handle foreign exchange transactions for programs and projects.

19. Non-project aid is a method of providing non-repayable ODA funds in the form of individual grants that do not constitute specific projects, provided in the form of money, goods, materials, experts, conference activities, seminars, training, research, surveys, and training.

20. The decision on the investment orientation of programs and projects using ODA funds and preferential loans (hereinafter referred to as "Investment Orientation Decision") is a document deciding on the investment orientation of programs and projects by the competent authority, including main contents: Name of the program, project, and donor, co-financing from abroad; name of the supervising agency; objectives and main results; time and location of implementation; funding limit; domestic financial mechanism and loan rescheduling methods; activities carried out beforehand (if any) as a basis for the supervising agency to cooperate with foreign donors in drafting program and project documents, non-project documents.

21. Agreements on ODA funds and preferential loans are agreements on ODA funds and preferential loans signed on behalf of the State or the Government of the Socialist Republic of Vietnam, which are not international agreements.

22. Program and project documents using ODA funds and preferential loans (hereinafter referred to as "Program and Project Documents") are documents presenting the context, necessity, objectives, contents, main activities, results, economic, social, and environmental impacts, total capital, sources and capital structure, other resources, domestic financial mechanisms, project financing methods or disbursement through the state budget, loan rescheduling methods through commercial banks or direct loans from the state budget, organizational forms for managing and implementing programs and projects. Program and Project Documents include: Program and Project Documents for technical assistance and Program and Project Documents for investment projects (Feasibility Study Reports).

23. ODA funds and preferential loans are sources of funds provided by foreign donors to the State or the Government of the Socialist Republic of Vietnam to support development, ensure welfare, and social security, including:

a) Non-repayable ODA funds are ODA funds that do not need to be repaid to foreign donors;

b) ODA loans are ODA funds that must be repaid to foreign donors with favorable interest rates, grace periods, and repayment periods, ensuring a non-repayment element of at least 35% for tied loans and 25% for untied loans. The calculation method for the non-repayment element is specified in Appendix I of this Decree;

c) Preferential loans are loans with higher preferential terms than commercial loans, but the non-repayment element does not meet the standard for ODA loans as stipulated in point b of this clause.

24. ODA funds, concessional loans without binding conditions are ODA funds and concessional loans that do not come with terms and conditions related to procurement of goods and services from the funding country or a specific group of countries as stipulated by the foreign funding source.

25. ODA funds, concessional loans with binding conditions are ODA funds and concessional loans that come with terms and conditions related to procurement of goods and services from the funding country or a specific group of countries as stipulated by the foreign funding source.

26. Counterpart funds are contributions made by Vietnam (in kind or cash) for programs and projects utilizing ODA funds and concessional loans aimed at preparing and implementing such programs and projects, sourced from central government budgets, local government budgets, project sponsors' own arrangements, contributions from beneficiaries, and other legitimate sources.

Article 4. Methods of providing ODA funds and concessional loans

1. Methods of providing ODA funds and concessional loans include:

a) Programs;

b) Projects;

c) Budget support;

d) Non-project assistance.

2. Programs and projects using ODA funds and concessional loans are classified according to the classification of public investment projects as provided for in Article 6 of the Public Investment Law.

Article 5. Priority areas for the use of ODA funds and concessional loans

1. Supporting the implementation of programs and projects on economic and social infrastructure.

2. Supporting research and development of policies for economic and social development and strengthening state management institutions.

3. Supporting human resource development; scientific research and technological development.

4. Supporting environmental protection, climate change response, and green growth.

5. Using as the State's investment capital to participate in implementing projects under the public-private partnership (PPP) model.

6. Other priority areas as decided by the Prime Minister.

Article 6. Principles for the use of ODA funds, concessional loans, and counterpart funds

1. Unreimbursable ODA aid funds shall be prioritized for use in implementing programs and projects to support policy formulation, institutional development, and capacity building; direct support to improve the economic, cultural, social, and environmental livelihoods of people, especially the poor in rural, mountainous, and ethnic minority regions; developing healthcare, education, scientific research, technology, innovation; preparing programs and projects using ODA loans, concessional loans, and PPP investment projects.

2. ODA loans shall be prioritized for use in preparing and implementing programs and projects that cannot directly recover costs; programs and projects within the State budget expenditure responsibilities that have the potential to generate revenue to serve economic and social benefits.

3. Concessional loans shall be prioritized for use in implementing programs and projects that have the potential to recover costs.

4. Borrowing through the method of designating suppliers and contractors by the foreign funding source applies to: Loans to address urgent issues related to natural disasters, catastrophes, ensuring national security, defense, energy security; Cases where the project sponsor demonstrates that goods and equipment from the foreign funding source have significant technological and cost advantages; Specific cases as decided by the Prime Minister.

5. The use of ODA funds and concessional loans for other cases shall be carried out as decided by the Prime Minister.

6. Counterpart funds shall be prioritized for programs and projects using ODA funds and concessional loans that are fully funded from the five-year medium-term public investment plan and the annual public investment plan according to the schedule specified in international treaties, agreements on ODA funds and concessional loans for programs and projects, and the actual disbursement of these funds during implementation.

Article 7. Basic principles in state management of ODA funds and preferential loans.No.preferential loan

1. ODA funds and preferential loans are sources of capital under the state budget used to implement national socio-economic development goals and reflected in the state budget in accordance with the provisions of the law.

2. The Government uniformly manages state affairs regarding ODA funds and preferential loans on the basis of ensuring the effective use of capital and debt repayment capacity, implementing decentralization tied to responsibilities, authorities, and management capabilities of ministries, sectors, and localities; ensuring coordinated management, supervision, and evaluation by relevant agencies in accordance with current legal regulations.

3. Ensuring transparency and accountability regarding policies, procedures, and processes for mobilizing, managing, and using ODA funds and preferential loans among sectors, fields, and localities, the implementation status, and results of using ODA funds and preferential loans.

4. Preventing and combating corruption, loss, and waste in the management and use of ODA funds and preferential loans, preventing and handling such actions in accordance with the provisions of the law.

Article 8. Principles for applying domestic financial mechanisms for programs and projects using ODA funds.No.preferential loan

1. Full allocation from the state budget shall be applied to infrastructure investment programs, social welfare programs, or other areas without the ability to directly recover funds, which are part of central government expenditure tasks; partial support allocations and partial loan repayments with specific refinancing ratios for ODA loans for programs and projects within the expenditure tasks of local government budgets, in accordance with the provisions of the law.

2. Provincial People's Committees may refinance the entire amount of preferential loans for projects within the expenditure tasks of local government budgets and ODA loans and preferential loans raised as the local contribution in public-private partnership (PPP) projects.

3. Projects capable of fully or partially recovering funds: may refinance from the state budget according to the current legal provisions.

Article 9. Private sector access to and use of ODA funds and preferential loans.

1. In line with foreign donor countries' policies on providing ODA funds and preferential loans, the private sector may access and use ODA funds and preferential loans.

2. Forms of accessing and using ODA funds and preferential loans by the private sector include:

a) Accessing and using ODA funds and preferential loans within credit limits for lending to domestic financial and credit institutions to carry out activities consistent with international treaties, agreements on ODA funds and preferential loans, and adhering to the lending procedures of financial and credit institutions;

b) Accessing and using ODA funds and preferential loans that the Government uses as state investment capital participating in PPP projects in accordance with current laws on public-private partnerships and specific international treaties on ODA funds and preferential loans;

c) Accessing and using ODA funds and preferential loans through full risk-bearing commercial bank systems;

d) Accessing and using ODA funds and preferential loans through participation in programs and projects supporting the private sector managed by competent authorities.

Article 10. Procedures for managing and using ODA funds and concessional loans

1. The procedures for managing and using ODA funds and concessional loans for programs and projects include:

a) Mobilizing ODA funds and concessional loans;

b) Preparing, examining, and deciding on the investment policy orientation for programs and projects;

c) Preparing, examining, and deciding on investment for programs and projects;

d) Signing international treaties and agreements regarding ODA funds and concessional loans;

đ) Managing the implementation of programs and projects;

e) Completing and transferring the results of program and project implementation.

2. The procedures for managing and using ODA funds and concessional loans for non-project support and budgetary assistance shall be carried out according to the procedures for managing and using ODA funds and concessional loans for programs and projects as stipulated in Clause 1 of this Article, except where otherwise provided for in this Decree.

Article 11. Mobilizing ODA funds and concessional loans

1. The work of mobilizing ODA funds and concessional loans is conducted through development policy dialogues with foreign donors based on the Socio-Economic Development Strategy for ten years; the Long-Term Public Debt Strategy and the Medium-Term Public Debt Management Program; annual and five-year medium-term limits on ODA borrowing and concessional loans; directions for attracting ODA funds and concessional loans; the five-year socio-economic development plan and national, sectoral, and local development plans; the annual plan for external borrowing and repayment approved by the competent authority.

2. The Ministry of Planning and Investment shall take the lead in coordinating with relevant agencies and foreign donors to organize national, inter-ministerial, and regional conferences and forums to mobilize ODA funds and concessional loans.

3. Ministries, sectors, and localities, based on their strategies, plans, development needs, and ODA fund and concessional loan requirements, their capacity to organize implementation, and resource allocation, shall take the lead and coordinate with the Ministry of Planning and Investment, relevant agencies, and foreign donors to proactively organize sectoral and local conferences or forums to mobilize ODA funds and concessional loans.

4. Depending on specific conditions and with the permission of the competent authority, ministries and sectors may establish Partnership Groups in specific fields to cooperate, share information, knowledge, and development experience among foreign donors, avoid duplication, and enhance the effectiveness of ODA fund and concessional loan utilization.

5. Vietnam's representative offices abroad or representatives at international organizations shall coordinate with the Ministry of Planning and Investment to mobilize ODA funds and concessional loans in the receiving country or at the international organization.

Chapter II

PREPARATION, EXAMINATION, DECISION ON INVESTMENT POLICY ORIENTATION FOR PROGRAMS AND PROJECTS

PROGRAMS AND PROJECTS

Article 12. Authority to decide on the investment policy orientation for programs and projects

1. The authority to decide on the investment policy orientation for national target programs and important national projects using ODA funds and concessional loans shall be implemented in accordance with Clause 1 of Article 17 of the Law on Public Investment.

2. The authority to decide on the investment policy orientation for national target programs using ODA funds and concessional loans shall be implemented in accordance with Clause 2 of Article 17 of the Law on Public Investment.

3. The Prime Minister decides on the investment policy orientation for programs and projects using ODA funds and concessional loans in cases not specified in Clauses 1 and 2 of this Article, including:

a) Programs and projects using ODA loans and concessional loans;

b) Programs, projects, and non-project activities using ODA grants in the following cases: group A and group B investment programs and projects; O programs and projects; programs, projects, and non-project activities accompanied by policy frameworks; programs, projects, and non-project activities in the fields of security, defense, and religion; sector-based access programs; technical assistance projects preparing ODA loan and concessional loan-funded programs and projects; technical assistance projects with a grant value of two million US dollars or more; procurement aid for goods that require Prime Minister approval; Vietnam's participation in regional programs and projects;

c) Budgetary support.

4. The head of the managing agency decides on the investment policy orientation for programs, projects, and non-project activities in cases not specified in Clauses 1, 2, and 3 of this Article.

Article 13. Procedures and formalities for proposing and selecting proposals for programs and projects using ODA funds and concessional loans

1. The construction of proposals for programs and projects using ODA funds and concessional loans shall be carried out in accordance with the provisions of Clauses 1 and 2 of Article 24 of the Public Investment Law. The format of the proposal for programs and projects using ODA funds and concessional loans is specified in Appendix II of this Decree.

2. Criteria for selecting proposals for programs and projects using ODA funds and concessional loans:

a) Consistency with strategies, master plans, socio-economic development plans, medium-term and annual public investment plans that have been approved by competent authorities; foreign donor countries' policies and priority directions for providing ODA funds and concessional loans;

b) Ensuring economic and social effectiveness, environmental protection, and sustainable development;

c) Ensuring economic sustainability;

d) Consistency with the ability to balance ODA funds, concessional loans, and counterpart funds;

đ) Consistency with the capacity to repay public debt, government debt, and local authority debt (for programs and projects using ODA loans and concessional loans);

e) Not overlapping with programs and projects that have already had investment direction decisions or investment decisions.

3. Procedures and formalities for selecting suitable proposals for programs and projects and notifying the competent agency to prepare a Preliminary Feasibility Study Report or an Investment Direction Proposal Report are as follows:

a) For programs and projects using non-reimbursable ODA funds under the Prime Minister's authority to decide on investment direction: The Ministry of Planning and Investment shall take the lead and coordinate with relevant agencies to select suitable program and project proposals according to the criteria stipulated in Clause 2 of this Article and notify in writing the competent agency of the selected proposals to proceed with preparing a Preliminary Feasibility Study Report or an Investment Direction Proposal Report;

b) For programs and projects using ODA loans and concessional loans: The Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Finance and relevant agencies to select suitable program and project proposals according to the criteria stipulated in Clause 2 of this Article, submit to the Prime Minister for consideration and decision; the Ministry of Planning and Investment shall notify in writing the competent agency of the Prime Minister's decision regarding the permitted proposals to proceed with preparing a Preliminary Feasibility Study Report or an Investment Direction Proposal Report.

4. During the preparation of programs and projects, the competent agency has the responsibility to report to the Ministry of Planning and Investment, the Ministry of Finance, and relevant agencies on progress and difficulties to enable the Ministry of Planning and Investment to lead and coordinate with the Ministry of Finance and relevant agencies to promptly address issues before submitting to the competent authority for investment direction decision.

Article 14. Procedures and formalities for deciding on investment direction for national target programs, important national projects, and programs using ODA funds and concessional loansBriefing signed on February 18, 2025national program, project|||1. Procedures and formalities for deciding on investment direction for national target programs and important national projects using ODA funds and concessional loans shall be implemented in accordance with Articles 19, 20, and 21 of the Public Investment Law. The Investment Direction Proposal Report and Preliminary Feasibility Study Report shall follow the formats specified in Appendices IIIa and IIIb of this Decree.

2. Procedures and formalities for deciding on investment direction for programs using ODA funds and concessional loans shall be implemented in accordance with Article 22 of the Public Investment Law. The Investment Direction Proposal Report shall follow the format specified in Appendix IIIa of this Decree.

2. The procedures for deciding on investment policies for target programs and projects using ODA funds and preferential loans shall be carried out in accordance with Article 22 of the Public Investment Law. The proposal report for investment policy shall be submitted in the format specified in Appendix IIIa of this Decree.

Article 15. Procedures and formalities for deciding on investment orientation for Group A projects using ODA funds and preferential loans

1. The head of the managing agency shall be responsible for:

a) Based on Clause 3, Article 13 of this Decree, assigning subordinate units to prepare the Preliminary Feasibility Study Report according to the Model specified in Appendix IIIb of this Decree;

b) Assigning subordinate units with the function of reviewing or establishing a Review Board to review the Preliminary Feasibility Study Report, ODA funds, preferential loans, counterpart funds, and the ability to balance these sources of funds;

c) Directing the unit specified in point a of this clause to complete the Preliminary Feasibility Study Report based on the review results before submitting it to the Prime Minister.

2. The Chairman of the provincial People's Committee shall be responsible for:

a) Based on Clause 3, Article 13 of this Decree, assigning subordinate units to prepare the Preliminary Feasibility Study Report according to the provisions set out in Appendix IIIb of this Decree;

b) Establishing a Review Board chaired by a Deputy Chairman of the Provincial People's Committee, with the Department of Planning and Investment as the Standing Body of the Review Board and relevant departments and agencies as members to review the Preliminary Feasibility Study Report, ODA funds, preferential loans, counterpart funds, and the ability to balance these sources of funds;

c) Directing the unit specified in point a of this clause to perfect the Preliminary Feasibility Study Report based on the review opinions specified in point b of this clause, and report to the provincial People's Committee;

d) Submitting the matter to the People's Council at the provincial level for comments before the provincial People's Committee submits it to the Prime Minister.

3. The Prime Minister decides to establish an inter-ministerial Review Board or assigns a leading agency to review the Preliminary Feasibility Study Report based on the proposal of the Ministry of Planning and Investment.

4. The Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Finance and the State Bank of Vietnam (for World Bank, Asian Development Bank, international financial and monetary organizations, and other international banks represented by the State Bank of Vietnam) to review ODA funds, preferential loans, counterpart funds, and the ability to balance these sources of funds, and send their opinions to the inter-ministerial Review Board or the leading agency specified in Clause 3 of this Article. The Ministry of Finance shall take the lead and coordinate with the Ministry of Planning and Investment and relevant agencies to provide opinions on domestic financial mechanisms and loan repayment methods, and send them to the inter-ministerial Review Board or the leading agency specified in Clause 3 of this Article.

5. The inter-ministerial Review Board or the leading agency specified in Clause 3 of this Article shall send their review opinions to the managing agency to perfect the Preliminary Feasibility Study Report for submission to the Prime Minister.

6. The Prime Minister shall consider and decide on the investment orientation.

Article 16. Procedures and formalities for deciding on investment orientation for programs, projects, and non-project activities using ODA funds and preferential loans within the authority of the Prime Minister, except for Group A projects

1. Based on Clause 3, Article 13 of this Decree, the managing agency shall prepare the Investment Orientation Proposal Report according to the Model specified in Appendices IIIc and IV of this Decree.

2. The managing agency shall submit the Investment Orientation Proposal Report along with a letter to the Ministry of Planning and Investment for review.

3. The Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Finance and the State Bank of Vietnam (for World Bank, Asian Development Bank, international financial and monetary organizations, and other international banks represented by the State Bank of Vietnam) to review ODA funds, preferential loans, counterpart funds, and the ability to balance these sources of funds; seek opinions from relevant agencies on the Investment Orientation Proposal Report. The Ministry of Finance shall take the lead and coordinate with the Ministry of Planning and Investment and relevant agencies to provide opinions on domestic financial mechanisms for programs, projects, and non-project activities and loan repayment methods.

4. Based on the review opinions on funding sources and the ability to balance funds, opinions from relevant agencies, and the Ministry of Finance's opinions on domestic financial mechanisms for programs, projects, and non-project activities and loan repayment methods, the Ministry of Planning and Investment shall lead the review of the Investment Orientation Proposal Report through organizing a Review Conference or seeking review opinions from relevant agencies depending on the scale, nature, and content of the programs, projects, and non-project activities.

5. Based on the review results, the Ministry of Planning and Investment shall submit a letter along with the Review Result Report to the Prime Minister.

6. The Prime Minister shall consider and decide on the investment orientation.

Article 17. Procedures and formalities for deciding on investment policies for programs, projects, and non-project programs using ODA funds not requiring repaymentện trnational incomplete - "not subject to the authority of the head of the managing agency"periodi thu|||incomplete - "of the managing agency"ầincomplete - "1. For investment programs and projects:"

1. For investment programs and projects:

a) In accordance with Clause 3 of Article 13 of this Decree, the managing agency shall prepare the Investment Policy Proposal Report according to the Model at Appendix IIIc of this Decree;

b) The managing agency shall send a letter along with the Investment Policy Proposal Report to solicit opinions from the Ministry of Planning and Investment, the Ministry of Finance, and other relevant agencies regarding the investment policy;

c) The Ministry of Planning and Investment shall take the lead, coordinating with the Ministry of Finance and the State Bank of Vietnam (for World Bank, Asian Development Bank, international financial and monetary organizations, and other international banks represented by the State Bank of Vietnam) to assess the ODA grant funds, counterpart funds, and the ability to balance these funds. The Ministry of Finance shall take the lead, coordinating with the Ministry of Planning and Investment and other relevant agencies to provide opinions on the domestic financial mechanism for the program and project and the loan repayment method;

d) Based on the opinions of the relevant agencies, the assessment opinions of the Ministry of Planning and Investment on the funds and the ability to balance the funds, and the opinions of the Ministry of Finance on the domestic financial mechanism applicable to the program and project and the loan repayment method, the managing agency shall organize an assessment through the form of an Assessment Conference or soliciting assessment opinions on the Investment Policy Proposal Report from relevant agencies depending on the scale, nature, and content of the program and project, and decide on the investment policy.

2. For technical assistance projects and non-project programs:

a) In accordance with Clause 3 of Article 13 of this Decree, the managing agency shall prepare the Investment Policy Proposal Report according to the Model at Appendix IIIc and Appendix IV of this Decree;

b) The managing agency shall send a letter along with the Investment Policy Proposal Report to solicit opinions from the Ministry of Planning and Investment, the Ministry of Finance, and other relevant agencies regarding the investment policy;

c) The Ministry of Planning and Investment shall take the lead, coordinating with the Ministry of Finance and the State Bank of Vietnam (for World Bank, Asian Development Bank, international financial and monetary organizations, and other international banks represented by the State Bank of Vietnam) to assess the ODA grant funds, counterpart funds, and the ability to balance these funds; the domestic financial mechanism for technical assistance projects and non-project programs;

d) Based on the opinions of the relevant agencies, the assessment opinions of the Ministry of Planning and Investment on the funds and the ability to balance the funds, and the domestic financial mechanism applied to technical assistance projects and non-project programs, the managing agency shall consider and decide on the investment policy.

Article 18. Participation in regional programs and projects

1. The managing agency shall submit a document to the Ministry of Planning and Investment along with the program and project documentation, specifying the rights and obligations when participating. The Ministry of Planning and Investment shall take the lead, coordinating with relevant agencies to submit to the Prime Minister for consideration and decision on participation in regional programs and projects.

2. In cases where the managing agency of the regional program or project has not been determined, the Ministry of Planning and Investment shall take the lead, coordinating with relevant agencies to submit to the Prime Minister for consideration and decision on Vietnam's participation and the managing agency of that program or project.

3. In cases where foreign sponsors provide ODA and concessional loans to establish and implement programs and projects within the framework of regional programs and projects, based on the type of program or project, the managing agency shall follow the procedures and formalities for deciding on investment policies as stipulated in Articles 14, 15, 16, and 17 of this Decree.

Article 19. Activities to be carried out before implementation

The managing agency shall carry out activities prior to implementation during the preparatory phase for programs and projects, including:

1. After the investment proposal has been decided upon by the competent authority, the managing agency shall assign the unit proposing the program or project to:

a) Develop and submit to the competent authority for approval the framework policy on resettlement during the review of the program and project documentation and investment decision;

b) Prepare the plan for selecting contractors; prepare the notice of interest, prequalification dossier, tender dossier, and request dossier.

2. From the time the program or project is decided upon for investment by the competent authority until the specific international agreement, ODA capital agreement, and preferential loan agreement for the program or project becomes effective, the managing agency shall organize the following activities:

a) Review and approve the plan for selecting contractors, notice of interest, prequalification dossier, tender dossier, and request dossier; organize the selection of contractors and review and approve the results of the contractor selection; negotiate and finalize contracts for procurement packages of goods and construction works for the first 12 months of the program or project implementation and some consultancy packages (project management consultancy, technical design consultancy, supervision consultancy, resettlement, environment, and social consultancy);

b) Procurement contracts for goods, construction works, and consultancy services specified in point a of this clause may only be signed after the specific international agreement, ODA capital agreement, and preferential loan agreement for the program or project become effective.

3. The funds for carrying out pre-implementation activities shall be allocated from the project preparation fund or advanced and reimbursed retrospectively from the project fund based on the prior consent of the foreign financier.

Article 20. Main Content of the Investment Decision

The investment decision includes the following main contents:

1. Name of the program or project and the financier, co-financier from abroad.

2. Name of the managing agency.

3. Objectives and main outcomes of the program or project.

4. Time and location for implementing the program or project.

5. Capital limit of the program or project (non-repayable ODA aid, ODA loan, preferential loan, counterpart funding).

6. Domestic financial mechanism and rescheduling method for the program or project.

7. Pre-implementation activities.

Article 21. Amendment of the Content of the Investment Decision

During the implementation of the investment decision, if the program or project is extended by no more than six months compared to the deadline stipulated in the investment decision, there is no need to amend the investment decision. Amendments to the implementation period of the program or project exceeding six months and other contents of the investment decision shall be carried out as follows:

1. For the investment decision of national target programs, important national projects, target programs, and group A projects:

a) The managing agency shall send a letter to the Ministry of Planning and Investment, the Ministry of Finance, and relevant agencies regarding changes compared to the content of the investment decision;

b) The Ministry of Planning and Investment shall take the lead, coordinate with the Ministry of Finance and relevant agencies to examine and exchange views, and reach consensus with the foreign financier on related changes;

c) Based on the opinions of the Ministry of Planning and Investment, the Ministry of Finance, and relevant agencies, the managing agency shall submit to the Prime Minister the contents of the changes compared to the content of the investment decision for the Prime Minister's decision or submit to the competent authority for decision within its jurisdiction.

2. For the investment decision of programs and projects under the Prime Minister's authority to decide on the investment proposal, except for group A projects:

a) The managing agency shall send a letter to the Ministry of Planning and Investment, the Ministry of Finance, and relevant agencies regarding changes compared to the content of the investment decision;

b) Based on the letter from the managing agency and the opinions of relevant agencies as stipulated in point a of this clause, the Ministry of Planning and Investment shall take the lead, coordinate with the Ministry of Finance to examine, exchange views, and reach consensus with the foreign financier on related changes and submit to the Prime Minister for decision or submit to the competent authority for decision within its jurisdiction in cases where changes lead to exceeding the Prime Minister's authority.

3. For the investment decision of programs and projects under the authority of the head of the managing agency to decide on the investment proposal:

a) The managing agency shall send a letter to the Ministry of Planning and Investment, the Ministry of Finance, and relevant agencies seeking opinions on the contents of the changes compared to the content of the investment decision;

b) Based on the opinions of the agencies as stipulated in point a of this clause, the managing agency shall work and reach consensus with the foreign financier to amend the content of the investment decision;

c) In cases where the contents of the changes compared to the content of the investment decision lead to exceeding the managing agency's authority, the managing agency shall implement according to the provisions of clauses 1 and 2 of this Article.

Chapter III

PREPARATION, REVIEW, AND INVESTMENT DECISION FOR PROGRAMS AND PROJECTS

Article 22. Tasks of the managing agency in establishing, reviewing, and deciding on investment programs and projects

After issuing the investment policy decision, the managing agency shall perform the following tasks:

1. Issuing a decision on the project leader and assigning the project leader to cooperate with foreign sponsors in drafting program and project documentation.

2. Allocating resources within its authority for the establishment and review of program and project documentation.

3. Organizing the review and approval of program and project documentation and making investment decisions on programs and projects within its authority; submitting program and project documentation and investment decisions on programs and projects for review and approval by competent authorities.

Article 23. Tasks of the project leader in establishing, reviewing, and deciding on investment programs and projectscouncillORS1. Cooperating with foreign sponsors in drafting program and project documentation in accordance with the provisions of Article 27 of this Decree.

2. Preparing the review dossier for program and project documentation in accordance with the provisions of Article 28 of this Decree and reporting it to the managing agency.

Article 24. Preparation funds for programs and projects

1. The investment policy decision serves as the basis for planning and allocating preparation funds for programs and projects. Preparation funds for programs and projects include the following costs:

a) Costs for research, investigation, survey, data collection, analysis, and synthesis of initial data;

b) Costs for drafting and perfecting program and project documentation, including consulting fees and translation costs;

c) Costs for reviewing program and project documentation;

d) Costs for training and enhancing the capacity of key staff in program and project management;

đ) Costs for activities permitted to be carried out prior to the issuance of the investment policy decision as stipulated in Clause 7, Article 20 of this Decree. The source of funding is specified in Clause 3, Article 19 of this Decree.

2. For programs and projects fully funded from the state budget: the project leader shall prepare a plan for preparation funds for programs and projects to be included in the annual consolidated budget plan of the managing agency. The approval and allocation process for preparation funds for programs and projects shall be carried out in accordance with the laws on the state budget.

In cases where the timing of the preparation fund plan does not coincide with the annual budget planning period, the managing agency shall balance within the total allocated preparation funds for programs and projects; if unable to balance this source of funds, the managing agency shall submit a document to the Ministry of Planning and Investment and the Ministry of Finance requesting consideration and decision-making within their authority or reporting to the competent authority for a decision on additional budget supplementation.

For programs and projects fully or partially refinanced from the state budget: the project leader shall allocate preparation funds for programs and projects independently. In cases where this source of funds cannot be balanced, the project leader shall submit to the managing agency for consideration and resolution in accordance with the law.

4. In cases where foreign sponsors provide funding for preparing programs and projects, the project leader shall have the responsibility to report to the managing agency for approval in accordance with current regulations and inclusion in the annual preparation fund plan for programs and projects of the managing agency.

4. In cases where foreign sponsors provide funding to prepare programs and projects, the project owner shall have the responsibility to report to the supervising authority for approval in accordance with current regulations and include it in the annual capital preparation plan for programs and projects of the supervising authority.

Article 25. Competence to Approve Program and Project Documents and Investment Decisions for Programs and Projects

1. The Prime Minister shall approve program and project documents and investment decisions for programs and projects as follows:

a) National Target Programs and Important National Projects that have been decided on the investment policy by the National Assembly;

b) Target Programs that have been decided on the investment policy by the Government;

c) Programs accompanied by policy frameworks; programs and projects in the fields of national security, defense, and religion that have been decided on the investment policy.

2. The head of the managing agency shall approve program and project documents and investment decisions for programs and projects in cases not provided for in Clause 1 of this Article.

Article 26. Procedures for Establishing, Reviewing, and Making Investment Decisions for Programs and Projects

1. The procedures for establishing, reviewing, and making investment decisions for National Target Programs using ODA funds and preferential loans shall be carried out in accordance with the provisions of Article 41 of the Public Investment Law.

2. The procedures for establishing, reviewing, and making investment decisions for Target Programs using ODA funds and preferential loans shall be carried out in accordance with the provisions of Article 42 of the Public Investment Law.

3. The procedures for establishing, reviewing, and making investment decisions for Important National Projects using ODA funds and preferential loans shall be carried out in accordance with the provisions of Clause 1 of Article 44 of the Public Investment Law.

4. The procedures for establishing, reviewing, and making investment decisions for programs and projects using ODA funds and preferential loans with construction components shall be carried out in accordance with the laws on construction and other relevant laws, except for Important National Projects.

5. The procedures for establishing, reviewing, and making investment decisions for other programs and projects using ODA funds and preferential loans within the competence of the Prime Minister:

a) After receiving the decision on the investment policy, the project proponent shall cooperate with foreign sponsors to establish program and project documents and report to the managing agency;

b) The managing agency shall send a letter along with the program and project documents to seek the opinions of the Ministry of Planning and Investment on the programs and projects (ODA funds, preferential loans, counterpart funds), the Ministry of Finance on domestic financial mechanisms applicable to the programs and projects, and the opinions of other agencies on related matters;

c) Based on the opinions of the agencies, the managing agency shall instruct the project proponent to complete the program and project documents and prepare the dossier for reviewing the program and project documents;

d) The managing agency shall submit a proposal along with the dossier for reviewing the program and project documents to the Ministry of Planning and Investment for review;

đ) The Ministry of Planning and Investment shall issue a letter to seek the opinions of the agencies on the review of the program and project documents. Within the time limit for reviewing the program and project documents as stipulated in Article 30 of this Decree, the Ministry of Planning and Investment shall organize the review of the program and project documents through a review meeting or seek the opinions of relevant agencies depending on the scale, nature, and content of the program and project;

e) The Ministry of Planning and Investment shall issue a letter along with a report on the results of the review to submit to the Prime Minister for consideration and approval of the program and project documents and investment decisions for the programs and projects.

6. The procedures for establishing, reviewing, and making investment decisions for programs and projects within the competence of the head of the managing agency:

a) After receiving the decision on the investment policy, the project proponent shall cooperate with foreign sponsors to establish program and project documents and report to the managing agency for review;

b) The managing agency shall send a letter to seek the opinions of the Ministry of Planning and Investment on sources of funding and the ability to balance funding for the programs and projects (ODA funds, preferential loans, counterpart funds), the Ministry of Finance on domestic financial mechanisms applicable to the programs and projects, and other agencies on related matters;

c) Based on the opinions of the agencies, the managing agency shall instruct the project proponent to complete the program and project documents and prepare the dossier for reviewing the programs and projects for review;

d) The managing agency shall organize the review of the program and project documents through a review meeting or seek the opinions of relevant agencies depending on the scale, nature, and content of the programs and projects;

đ) Based on the report on the results of the review, the managing agency shall approve the program and project documents and make investment decisions for the programs and projects.

7. The procedures for establishing, reviewing, and making investment decisions for technical assistance projects using ODA funds and preferential loans:

a) For technical assistance projects with contents falling under the investment decision-making authority of the Prime Minister as stipulated in Article 25 of this Decree or requiring procurement of goods that require permission from the Prime Minister according to current laws: The managing agency shall follow the review procedures as stipulated in Clause 5 of this Article, submit to the Prime Minister for consideration and approval of the project documents and investment decisions;

b) For other technical assistance projects: The managing agency shall not organize reviews. The head of the managing agency shall base on the Decision on the Investment Policy to approve the project documents and make investment decisions.

8. The procedures for establishing, reviewing, and making investment decisions for non-project items:

a) For non-project items with contents falling under the investment decision-making authority of the Prime Minister as stipulated in Article 25 of this Decree and requiring procurement of goods that require permission from the Prime Minister according to current laws: The managing agency shall follow the review procedures as stipulated in Clause 5 of this Article, submit to the Prime Minister for consideration and approval of the non-project item documents and investment decisions;

b) For other non-project items: The managing agency shall not organize reviews. The head of the managing agency shall base on the Decision on the Investment Policy to approve the non-project item documents and make investment decisions.

9. For programs and projects borrowing entirely or partially from the state budget, the review of the financial plan of the programs and projects and the financial capacity of the project proponents shall be carried out in accordance with the Public Debt Management Law, other relevant regulations, and guidelines issued by the Ministry of Finance.

10. During the review process, the leading agency or unit responsible for the review must consider the procedures, processes, and progress of the review conducted by the foreign sponsor to ensure necessary coordination and harmonization, examine the contents agreed upon with the foreign sponsor, and take into account the review opinions of the foreign sponsor or its representative.

11. The leading agency or unit responsible for the review bears responsibility for the results of the review of the program and project documentation; participating agencies bear responsibility for the contents of the program and project documentation related to their functions and tasks as prescribed by law.

Article 27. Contents of Program and Project Documentation

1. Program and project documentation is established based on the contents of the Investment Policy Decision.

2. Program and project documentation is prepared according to the model specified in this Decree, including: Model of non-construction investment project documentation (Feasibility Study Report) as stated in Appendix V; Model of construction investment project documentation (Feasibility Study Report) as stated in Appendix VI; Model of technical assistance project documentation as stated in Appendix VII; Model of program documentation as stated in Appendix VIII; Model of program and project documentation as stated in Appendix IX; Model of non-project documentation as stated in Appendix X.

3. When establishing program and project documentation according to the models in Appendices V, VI, VII, VIII, IX, and X, the project owner must consider the contents of the models provided by the foreign sponsor, ensuring the contents of the Investment Policy Decision and harmonizing the procedures and processes between Vietnam and the foreign sponsor.

Article 28. Review Documentation Fileitself This Circular takes effect from August 1, 2022./.

The application for reviewing program and project documentation includes:

1. A request for review of program and project documentation from the managing agency (for program and project documentation within the Prime Minister's approval authority) or from the project owner (for program and project documentation within the head of the managing agency's approval authority).

2. The Investment Policy Decision for the program and project.

3. Program and project documentation.

4. In cases where the program or project is refinanced entirely or partially from the state budget, the project owner must submit financial capability proof documents, repayment plans, and other documents as guided by the Ministry of Finance.

5. Written opinions of the Ministry of Planning and Investment, the Ministry of Finance, and relevant agencies during the preparation of program and project documentation.

6. Foreign language documents related to the program and project must be accompanied by Vietnamese translations.

Article 29. Contents of Program and Project Documentation Review

1. For construction investment projects: The review of project documentation is carried out in accordance with current laws on construction investment management.

2. For non-construction investment projects: The review of project documentation includes:

a) Evaluation of the necessity of the project, including: Alignment with the investment policy (context and necessity; project objectives compared to requirements for policy reform, improved management systems, human capacity development needs; technology transfer, knowledge, and management skills at national, sectoral, and local levels; final products of the project; beneficiaries; budget allocation structure of the project);

b) Evaluation of factors ensuring the feasibility of the project, including: input factors; implementation time; human resources involved in implementing the project; potential risks and preventive measures;

c) Evaluation of factors ensuring the effectiveness and sustainability of the project, including: ability to balance funding sources (ODA funds, preferential loans, counterpart funds); effectiveness and impact; ability to maintain and enhance project outcomes for the country, managing agency, and project owner;

d) General evaluation of the project documentation content in comparison with the content of the investment policy decision and related recommendations.

3. For programs: The review of program documentation includes:

a) Content similar to that stipulated in Clause 2 of this Article, supplemented with an assessment of the connectivity and coordination mechanisms among sectors, fields, regions, and different subjects involved in implementing the program to maximize efficiency and benefits for all participants;

b) For construction investment projects within the framework of the program, the review of project documentation follows the provisions of Clause 1 of this Article;

c) For non-construction investment projects within the framework of the program, the review of project documentation follows the provisions of Clause 2 of this Article.

4. For program and project clusters and component projects:

a) The review of construction investment projects follows the provisions of Clause 1 of this Article;

b) The review of non-construction investment projects follows the provisions of Clause 2 of this Article;

c) In addition to the review contents stipulated in points a and b of this clause, the review of program and project cluster documentation must include: Analysis and evaluation of the structure of the program and project cluster and allocation of funds (ODA funds, preferential loans, counterpart funds) for component projects, organizational forms of project management, hierarchical management between the program and project cluster management board and component project management boards, coordination mechanisms, monitoring, and evaluation of the implementation of the program and project clusters and component projects.

5. For technical assistance projects: The review of project documentation includes:

a) Evaluation of the necessity and alignment with the investment policy of the project;

b) Evaluation of factors ensuring the feasibility of the project, including: input factors; implementation time; ability to balance funding sources (ODA funds, preferential loans, counterpart funds); human resources involved in implementing the project; project products; potential risks and preventive measures;

c) General evaluation of the project documentation content in comparison with the content of the investment policy decision and related recommendations.

6. For non-project items: The review of non-project documentation includes:

a) Evaluation of the appropriateness of the non-project item with the investment policy decision.

b) Evaluate the factors ensuring the feasibility of non-project items, including: input factors; the ability to balance funding sources (ODA funds, preferential loans, counterpart funds); implementation time; human resources participating in project implementation; potential risks and preventive measures.

Article 30. Time for review and investment decision on programs and projects

1. The time for reviewing program and project documents starts from the date when all valid files are received:

a) For national target programs, important national projects, and target programs: not exceeding 90 days;

b) For Group A investment projects: not exceeding 40 days;

c) For Group B investment projects: not exceeding 30 days;

d) For Group C investment projects, technical support projects, and other programs and projects: not exceeding 20 days.

2. Within 10 working days from the date of receiving the review report from the agency or unit responsible for the review, the competent authority shall consider and approve the program and project documents and make the investment decision on the program and project.

3. Within 5 working days from the date the competent authority issues the investment decision on the program and project, the managing agency shall notify foreign sponsors and the project owner about the investment decision on the program and project, and simultaneously send the original or certified copy of the investment decision on the program and project along with the approved program and project documents stamped by the managing agency for supervision and coordination in implementation to the Ministry of Planning and Investment, the Ministry of Finance, and relevant agencies.

Chapter IV

SIGNING INTERNATIONAL AGREEMENTS AND AGREEMENTS ON ODA FUNDS,

PREFERENTIAL LOANS

Section 1

SIGNING INTERNATIONAL AGREEMENTS ON ODA FUNDS, PREFERENTIAL LOANS

Article 31. Basis for proposing to sign international agreements estimate on ODA funds, preferential loans

1. The basis for proposing to sign framework international agreements on ODA funds, preferential loans is the result of mobilization efforts, cooperation development strategies and policies, priority fields and programs/projects using ODA funds, preferential loans that have been agreed between the competent authority of Vietnam and foreign sponsors.

2. The basis for proposing to sign specific international agreements on ODA funds, preferential loans is the approved program/project documents and the investment decision on the program and project.

Article 32. Agencies proposing to sign international agreements on ODA funds, preferential loans

1. The Supreme People's Court, the Supreme People's Procuracy, the State Audit Agency, Ministries, ministerial-level agencies, and government agencies are the agencies proposing to the Government to sign specific international agreements on ODA grants for programs and projects under their own jurisdiction, except as provided for in Clause 3 of this Article.

2. The Ministry of Finance is the agency proposing to the Government to sign specific international agreements on ODA loans and preferential loans, except for ODA loans and preferential loans as provided for in Clause 3 of this Article.

3. The State Bank of Vietnam is the agency proposing to the Government to sign specific international agreements on ODA funds, preferential loans with the World Bank, the Asian Development Bank, the International Monetary Fund, international financial and monetary organizations, and other international banks represented by the State Bank of Vietnam.

4. The Ministry of Planning and Investment is the agency proposing to the Government to sign international agreements on ODA funds, preferential loans in the following cases:

a) Framework international agreements on ODA funds, preferential loans;

b) Specific international agreements on ODA grants for programs and projects of agencies not specified in Clause 1 of this Article, except for ODA grants from the World Bank, the Asian Development Bank, the International Monetary Fund, international financial and monetary organizations, and other international banks specified in Clause 3 of this Article.

Article 33. Procedures for signing, amending, supplementing, and extending international agreements on ODA funds and concessional loans

The procedures for signing, amending, supplementing, and extending international agreements on ODA funds and concessional loans shall be carried out in accordance with the provisions of laws on international agreements and public debt management.

Section 2

SIGNING AGREEMENTS ON ODA FUNDS AND CONCESSIONAL LOANS

Article 34. Basis for proposing to sign agreements on ODA funds and concessional loansinternational

The basis for proposing to sign agreements on ODA funds and concessional loans is the international agreement on ODA funds and concessional loans (in cases where an international agreement has been signed), program and project documents that have been approved, and investment decisions for programs and projects.

Article 35. Authorities proposing to sign agreements on ODA funds and concessional loans

1. The Supreme People's Court, the Supreme People's Procuracy, the State Audit Agency, Ministries, ministerial-level agencies, and government agencies are authorities proposing to the Prime Minister regarding the signing of agreements on non-refundable ODA funds for programs and projects under their jurisdiction, except in cases provided for in Clause 3 of this Article.

2. The Ministry of Finance is the authority proposing to the Prime Minister regarding the signing of agreements on ODA loans and concessional loans, except in cases provided for in Clause 3 of this Article.

3. The State Bank of Vietnam is the authority proposing to the Prime Minister regarding the signing of agreements on ODA funds and concessional loans with the World Bank, the Asian Development Bank, the International Monetary Fund, and other international financial and monetary organizations and international banks represented by the State Bank of Vietnam.

4. The Ministry of Planning and Investment is the authority proposing to the Prime Minister regarding the signing of agreements on non-refundable ODA funds for programs and projects of agencies not specified in Clause 1 of this Article, except in cases provided for in Clause 3 of this Article.

Article 36. Procedures for signing, amending, supplementing, and extending agreements on ODA funds and concessional loans

1. The procedures for signing, amending, supplementing, and extending agreements on ODA funds and concessional loans signed on behalf of the State shall be carried out in accordance with the provisions of laws on international agreements and public debt management.

2. The procedures for signing, amending, supplementing, and extending agreements on ODA loans and concessional loans signed on behalf of the Government shall be carried out in accordance with the provisions of laws on public debt management.

3. The procedures for signing, amending, supplementing, and extending agreements on non-refundable ODA funds signed on behalf of the Government shall be carried out as follows:

a) The agency entrusted by the Prime Minister to lead negotiations actively discusses and reaches consensus with the foreign party on the draft agreement;

b) After reaching consensus with the foreign party, the leading negotiation agency compiles the negotiation results to simultaneously seek the review opinion of the Ministry of Foreign Affairs and the examination opinion of the Ministry of Justice. Agencies requested for opinions are responsible for responding in writing within five working days from the date of receipt of the request for opinions;

c) The leading negotiation agency exchanges again with the foreign party to finalize the draft agreement and submit to the Prime Minister for signing;

d) After receiving the Prime Minister's decision to allow signing, the head of the leading negotiation agency proceeds to sign or authorize the signing of the agreement with the foreign party;

đ) In cases where the content of the draft agreement is similar to a model agreement or framework agreement already approved by the Prime Minister, the leading negotiation agency submits to the Prime Minister for a decision on signing after negotiating and reaching consensus with the foreign party. For contents different from the model agreement or framework agreement already approved by the Prime Minister, specific financial conditions and financing mechanisms not mentioned in the model agreement or framework agreement, the leading negotiation agency must report to the Prime Minister for approval before signing;

e) For amendments and supplements to agreements that change the commitment on the ODA fund ceiling, the leading negotiation agency submits to the Prime Minister for a decision; in other cases, the Prime Minister authorizes the leading negotiation agency to reach consensus and sign with the foreign party;

Chapter V

MANAGEMENT OF PROGRAM IMPLEMENTATION AND PROJECTS

Article 37. Forms of management organization for programs and projectsứ||| Organization forms for managing programs and projects shall be determined based on the scale, nature, specific conditions for implementing programs and projects, the capacity of the program/project management organizations of their units, regulations on organizing ODA capital and concessional loan capital from foreign sponsors, and the investor's decision to apply one of the following forms of program/project management organization:

1. Establishing specialized project management boards or regional project management boards to manage programs and projects, components of projects within the same specialty or implemented in a specific region.

2. Utilizing existing project management boards to manage new programs and projects.

3. Establishing a project management board to manage large-scale programs and projects that apply advanced technology, relate to national security and defense, have special characteristics regarding sources of funding or implementation models requiring the establishment of a project management board, or are required to establish a project management board according to international treaties or agreements on ODA and concessional loans.

4. The project proponent uses subordinate professional bodies with sufficient conditions and capacity to manage and implement small-scale projects; projects involving community participation.

5. Hiring consulting firms to manage programs and projects with unique or individual characteristics. In this case, the project proponent enters into a management consulting contract with a consulting firm or organization that has the necessary conditions and capacity to manage programs and projects under current laws to perform all or some management tasks for the programs and projects.

Article 38. Authority to issue Decisions on Establishing Project Management Boards

1. For specialized project management boards and regional project management boards as stipulated in Clause 1 of Article 37 of this Decree: The head of the supervising agency issues the decision to establish specialized project management boards or regional project management boards.intention of the project

2. For project management boards to manage programs and projects as stipulated in Clause 3 of Article 37 of this Decree: The project proponent issues the decision to establish a project management board to manage a program or project.

3. For cases where the project is self-managed: The project proponent selects the project management form prescribed in Clauses 2, 4, and 5 of Article 37 of this Decree.

4. The decision to establish a project management board must be accompanied by a document detailing the organizational structure; functions and responsibilities; powers and delegations; and job descriptions for key positions in the project management board.

Article 39. Establishment of Project Management Boards

1. The person authorized to establish project management boards as stipulated in Clauses 1 and 2 of Article 38 of this Decree shall issue the decision to establish the project management board within thirty days after the investment decision is made.

2. Within fifteen working days from the date of the decision to establish the project management board, the project proponent shall issue the Regulations on the organization and operation of the project management board. In cases where international treaties or agreements on ODA and concessional loans for programs and projects specify the organizational structure of the project management board, its tasks and powers, these provisions must be detailed and fully reflected in the Regulations on the organization and operation of the project management board.

2. Within 15 working days from the date of the decision to establish the Project Management Board, the project owner shall issue the Regulation on the organization and operation of the Project Management Board. In cases where international treaties, agreements on ODA funds and preferential loans for programs and projects specify organizational structures, tasks, and authorities of the Project Management Board, these provisions must be detailed and fully reflected in the Regulation on the organization and operation of the Project Management Board.

Article 40. Cases where the Project Management Board shall not be established

1. The investment decision maker decides not to establish the Project Management Board for programs and projects as prescribed in Clause 4 and Clause 5 of Article 37 of this Decree.

2. The investment decision maker decides not to establish the Project Management Board in the following cases:

a) Technical assistance programs and projects funded by ODA grants with a total capital amount (including counterpart funds) under US$200,000;

b) Investment programs and projects funded by ODA grants with a total investment amount (including counterpart funds) under US$350,000;

c) Regional programs, sectoral access programs, budget support, non-project activities;

d) Programs and projects funded by ODA grants managed financially by foreign donors, organizations providing services and goods according to the conditions set forth by foreign donors regarding the use of ODA grants for programs and projects, and agreed upon not to establish a Project Management Board in international treaties, agreements on ODA and concessional loans for programs and projects.

Article 41. Tasks and Authorities of the Controlling Authority in Managing and Implementing Programs and Projects

1. Decide on the organizational structure for managing and implementing programs and projects, including the Program Steering Committee (if necessary).

2. Develop and approve plans for implementing programs and projects using ODA and medium-term concessional loans over five years within the medium-term public investment plan over five years.

3. Approve overall implementation plans for programs and projects; aggregate and approve annual implementation plans for programs and projects.

4. Direct bidding activities in accordance with current laws, international treaties, and agreements on ODA and concessional loans concerning bidding.

5. Organize supervision and evaluation of implementation situations to ensure that programs and projects are implemented on schedule, meet quality standards, and achieve set objectives as stipulated by laws on public investment and the supervision and evaluation provisions of this Decree.

6. Bear responsibility for costs arising from subjective reasons, losses, waste, corruption, and other violations in the management and use of ODA and concessional loans within their jurisdiction as stipulated by laws on public investment.

7. Perform other tasks and authorities as prescribed by laws, specific international treaties, and agreements on ODA and concessional loans for programs and projects.

Article 42. Tasks and Authorities of the Project Owner in Managing and Implementing Programs and Projects

1. Establish the organizational structure for managing and implementing programs and projects based on decisions made by the controlling authority.

2. Be responsible for effectively managing and utilizing ODA and concessional loan funds, and counterpart funds of programs and projects from preparation through implementation until the programs and projects are put into operation and use.

3. Prepare and submit to the controlling authority for approval the medium-term five-year plan, overall plan, and annual implementation plans for programs and projects. For programs and projects that borrow entirely or partially from the state budget, the project owner is responsible for preparing and approving the annual counterpart fund plan if the counterpart funds are self-arranged by the project owner.

4. Develop quarterly activity plans to serve operational management, supervision, and evaluation of programs and projects.

5. Conduct bidding activities in accordance with current laws on bidding.

6. Negotiate, sign, supervise the execution of contracts, and resolve emerging issues within their authority.

7. Coordinate with local authorities to organize compensation, support, and resettlement work in accordance with laws, specific international treaties on ODA and concessional loans for programs and projects (for construction investment projects).

8. Carry out supervision and evaluation of programs and projects in accordance with laws on supervision and evaluation of public investment and the provisions of this Decree to ensure that programs and projects are implemented on schedule, meet quality standards, and achieve set objectives.

9. Direct the Project Management Board to prepare final reports and financial settlement reports for programs and projects; audit and hand over assets and outputs of programs and projects, and comply with project closure regulations in international treaties, agreements on ODA and concessional loans for programs and projects.

10. Be responsible for losses, waste, corruption, and violations within their authority in organizing and implementing programs and projects that cause economic, social, and environmental damage, affecting the goals and overall effectiveness of programs and projects.

11. For programs and projects that borrow entirely or partially from the state budget, the project owner is responsible for fully and promptly repaying borrowed funds according to the conditions agreed upon with the competent financial and banking authorities.

12. Other tasks and authorities as prescribed by laws, specific international treaties, and agreements on ODA and concessional loans for programs and projects.

13. Be accountable before the law and the controlling authority within the scope of their rights and obligations as prescribed by this Decree and other relevant laws.

Article 43. Tasks and Authorities of the Project Management Board in Managing and Implementing Programs and Projects

1. The tasks and authorities of the Project Management Board shall be assigned by the project owner according to the Decision on Establishing the Project Management Board.

The project owner may delegate to the Project Management Board the authority to decide or sign documents within their own jurisdiction during the process of managing and implementing programs and projects. Such delegation must be stipulated in the Decision on Establishing the Project Management Board or in a specific delegation document issued by the project owner.

2. The Project Management Board may be tasked with managing multiple programs and projects, but such assignments must be approved by the project owner and must ensure the principle that each program and project is not interrupted, managed, and settled according to current legal regulations. In cases where conditions for performing certain management and supervision tasks are not met, the Project Management Board may hire consultants to perform these tasks with the approval of the project owner.

3. The Project Management Board has the responsibility to carry out tasks assigned by the project owner to report to the project owner, including:

a) Preparing overall plans and annual plans for implementing programs and projects;

b) Preparing for and implementing programs and projects;

c) Performing activities related to bidding, contract management, and compensation, support, and resettlement work;

d) Disbursing funds, managing finances and assets of programs and projects;

đ) Monitoring and evaluating the implementation status of programs and projects;

e) Preparing for acceptance and handover of program and project outputs upon completion; completing audit work, handing over assets of programs and projects; preparing final reports and settlement reports for programs and projects; implementing provisions regarding project closure under international treaties, agreements on ODA and concessional loans for programs and projects;

g) Performing other tasks within the framework of programs and projects as assigned by the project owner.

4. Other tasks and authorities as prescribed by law, specific international treaties, and agreements on ODA and concessional loans for programs and projects.

5. Shall be responsible before the law and supervisory agencies within the scope of their rights and obligations as stipulated in this Decree and other relevant laws.

Article 44. Hiring Consultants to Manage Programs and Projects

1. In cases where the project owner hires consultants or consulting organizations - hereinafter referred to as program and project management consultants as prescribed in Clause 5, Article 37 of this Decree, such consultants must have sufficient qualifications and organizational management capabilities appropriate to the scale and nature of the programs and projects. The responsibilities and authorities of program and project management consultants shall be carried out based on the consultancy hiring contract. Program and project management consultants may hire individuals or organizations to participate in management, but such hiring must be approved by the project owner and consistent with the signed consultancy hiring contract.

2. The project owner is responsible for selecting through tendering and signing contracts with program and project management consultants who have sufficient organizational management qualifications to assist the project owner in managing programs and projects. When applying the method of hiring program and project management consultants, the project owner still needs to use specialized units within their own system or designate focal points to monitor and supervise the implementation of contracts by program and project management consultants and authorize consultants to perform management tasks for programs and projects according to the project management contract.

3. Consulting organizations managing programs and projects are responsible for performing tasks and commitments according to the contracts signed with the project owner and complying with current legal regulations.

Article 45. Plan for Implementing Programs and Projects Using ODA Funds, Preferential Loans, and Counterpart Funds for the Five-Year Medium-Term Period ứmedium-term 5-year plan

1. The plan for implementing programs and projects using ODA funds and preferential loans for the five-year medium-term period is part of the five-year public investment plan of the managing agency.

2. The basis for formulating the implementation plan for programs and projects using ODA funds and preferential loans under the medium-term 5-year plan includes:

2. The basis for establishing the plan for implementing programs and projects using ODA funds and preferential loans for the five-year medium-term period includes:

a) Programs and projects currently being implemented that will continue into the next five-year planning period;

b) Programs and projects for which the competent authority has made an investment decision and plans to sign international agreements or agreements on ODA funds and preferential loans during the five-year planning period;

c) Programs and projects for which the competent authority makes an investment decision at a time not coinciding with the period for preparing and consolidating the five-year public investment plan, which will be supplemented into the five-year public investment plan according to the provisions of the law on supplementing and adjusting the five-year public investment plan.

Article 46. Formulation and Approval of the Overall Implementation Plan for Programs and Projects Using ODA Funds, Preferential Loans, and Counterpart Funds

3. The content, procedures for establishing and assigning the plan for implementing programs and projects using ODA funds and preferential loans for the five-year medium-term period and counterpart funds shall be carried out in accordance with the current legal regulations on the content and procedures for establishing and assigning the five-year public investment plan.

2. Within 30 days from the signing of specific international treaties, agreements on ODA funds and preferential loans, based on approved program and project documents, investment decisions for programs and projects, and specific international treaties, agreements on ODA funds and preferential loans for programs and projects, the project owner shall cooperate with foreign sponsors to formulate or review and update the overall implementation plan for programs and projects, and submit it to the supervising authority for examination and approval.

Article 46. Establishing and Approving the Comprehensive Plan for Implementing Programs and Projects Using ODA Funds, Preferential Loans, and Counterpart Funds

4. Within 5 working days from the approval of the overall implementation plan for programs and projects, the supervising authority of the programs and projects, including special programs and projects, shall send the Decision on Approval along with the overall implementation plan for programs and projects to the Ministry of Planning and Investment, relevant agencies, and foreign sponsors to serve monitoring, evaluation, and coordination in implementing programs and projects.

1. The comprehensive plan for implementing programs and projects must cover the entire implementation period of the program or project and must include all components, items, groups of activities, corresponding sources of funding (ODA funds, preferential loans, counterpart funds), and the expected progress schedule.

1. Based on the implementation plan for programs and projects using ODA funds, preferential loans, and counterpart funds under the medium-term 5-year plan and the overall implementation plan for programs and projects already approved by the supervising authority; taking into account the actual disbursement situation and the disbursement plan according to specific international treaties, agreements on ODA funds and preferential loans for programs and projects, the project owner shall consider and submit for approval by the head of the supervising authority the annual implementation plan for programs and projects. The annual implementation plan for programs and projects using ODA funds and preferential loans is part of the annual public investment plan of the supervising authority.

2. Within thirty days from the date of signing specific international agreements or agreements on ODA funds and preferential loans, based on the approved program and project documentation, investment decisions, and specific international agreements or agreements on ODA funds and preferential loans for the program or project, the project leader shall cooperate with foreign sponsors to establish or review and update the comprehensive plan for implementing the program or project, and submit it to the managing agency for consideration and approval.

3. After being approved by the supervising authority, the annual plan serves as the basis for the project owner to develop quarterly implementation plans to facilitate management, supervision, and assessment of the implementation of programs and projects.

3. For bundled programs or projects, the comprehensive plan must include the comprehensive plans of the component projects. The head of the managing agency of the bundled program or project approves the comprehensive plan for the bundled program or project; the head of the managing agency of the component project approves the comprehensive plan for the component project.

5. The process and procedures for assigning annual tasks and plans for implementing programs and projects shall be carried out in accordance with current laws on assigning annual tasks and plans for economic and social development.

4. Within five working days from the date of approving the comprehensive plan for implementing the program or project, the managing agency of the program or project, including bundled programs or projects, sends the Decision on Approval along with the comprehensive plan for implementing the program or project to the Ministry of Planning and Investment, relevant agencies, and foreign sponsors to serve monitoring, evaluation, and coordination in implementing the program or project.

7. For programs and projects that borrow entirely from the state budget:

Article 47. Establishing and Approving the Annual Implementation Plan for Programs and Projects Using ODA Funds, Preferential Loans, and Counterpart Funds

8. For programs and projects that partially borrow from the state budget:

1. Based on the five-year medium-term plan for implementing programs and projects using ODA funds, preferential loans, and counterpart funds, and the comprehensive plan for implementing programs and projects already approved by the managing agency; taking into account the actual disbursement situation and the disbursement plan under specific international agreements or agreements on ODA funds and preferential loans for the program or project, the project leader reviews and submits the annual implementation plan for the program or project to the head of the managing agency for approval. The annual implementation plan for programs and projects using ODA funds and preferential loans is part of the annual public investment plan of the managing agency.

Article 48. Counterpart funds ứfor preparation and implementation of programs and projectscouncillORS implement and carry out programs and projects

1. Counterpart funds must be fully guaranteed to prepare and implement programs and projects (including pre-implementation activities, if any). The sources, amount, and mechanism of counterpart funds must be consistent with the expenditure content of the programs and projects that have been agreed upon between the managing agency and foreign sponsors and reflected in the program and project documents which have been appraised and decided on investment by competent authorities.

2. Counterpart funds may be used for the following expenses:

a) Operating costs for the Project Management Board (salaries, bonuses, allowances, office space, working equipment, administrative expenses);

b) Costs for design review, total budget approval, completion of necessary investment procedures, construction, and other administrative procedures;

c) Costs related to the tender selection process;

d) Costs for conferences, seminars, training, and professional management and program/project implementation workshops;

đ) Costs for receiving and disseminating international technology, experience, and skills;

e) Costs for promoting and advertising the program/project and community activities;

g) Payment of taxes, customs duties, insurance premiums according to current regulations;

h) Interest payments, deposits, commitment fees, and other fees payable to the foreign side;

i) Costs for receiving equipment and domestic transportation (if any);

k) Audit, final settlement, and verification costs;

l) Compensation, land clearance, and resettlement costs;

m) Costs for implementing some basic activities of the program/project (surveying, technical design, construction; building certain project components, purchasing some equipment);

n) Costs for monitoring and evaluation activities; quality monitoring, acceptance, handover, and final settlement of the program/project;

o) Contingency costs and other reasonable costs.

3. For programs and projects funded entirely from the state budget: The managing agency is responsible for balancing counterpart funds in the annual budget estimate of the managing agency in accordance with current laws, and clearly defining them according to construction capital, administrative and public service funds corresponding to the expenditure content of the program/project; ensuring adequate, timely allocation of counterpart funds in line with the schedule specified in the program/project documents approved and decided on investment by competent authorities, in compliance with state budget laws and specific international treaties, agreements on ODA and concessional loan funds for the program/project.

4. For programs and projects fully or partially refinanced from the state budget: The project owner shall allocate counterpart funds or submit to the managing agency for decision to ensure sufficient counterpart funds for the program/project before signing the refinancing loan agreement.

5. For programs and projects funded from the state budget at approval or signing times not coinciding with the annual budget planning period, without allocated counterpart funds: The managing agency shall issue a document requesting the Ministry of Planning and Investment, the Ministry of Finance to handle within their authority or submit to competent authorities for consideration and decision to supplement into the annual budget plan.

In cases where the timing of counterpart fund planning for preparation and implementation of programs and projects does not coincide with the annual budget planning period, the managing agency shall balance within the total allocated funds. If unable to self-balance, the managing agency shall issue a document sent to the Ministry of Planning and Investment, the Ministry of Finance requesting consideration and submission to competent authorities for decision on temporary funding and subsequent deduction from the next year's plan.

6. In cases where counterpart funds allocated annually from the central budget for programs and projects are not fully utilized, the managing agency may reallocate to other programs and projects with needs after being authorized by the competent authority in accordance with current regulations.

7. Sources of counterpart funds include: state budget and other state funds; project owner’s funds (for cases of refinancing ODA and concessional loans); ODA and concessional loan funds from foreign sponsors according to the Prime Minister's decision.

Article 49. Advance Capital for Implementing Programs and Projects

In cases where there is an urgent need for advance capital to implement certain components of programs and projects that have been fully funded from the state budget and committed to be financed from ODA funds and preferential loans, which have been included in the annual financial plan but have not yet withdrawn ODA funds and preferential loans, the Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Finance to compile and submit to the competent authority for consideration and decision on temporarily advancing capital from the state budget based on the explanatory documents of the managing agency and the written commitment of foreign sponsors regarding the retroactive repayment of these advance funds. This portion of capital will be recovered by the State Treasury at all levels when disbursing ODA funds and preferential loans allocated to those components.

Article 50. Taxes and Fees for Programs and Projects

Taxes and fees applicable to programs and projects shall be implemented according to the current laws on taxes and fees and international treaties to which the Socialist Republic of Vietnam is a member. In cases where there are differences between domestic legal provisions and international treaties already signed on the same issue, the provisions of the international treaty shall apply. The Ministry of Finance shall be responsible for providing specific guidance on this matter.

Article 51. Compensation, Support, and Resettlement

1. Matters of compensation, support, and resettlement in the implementation of programs and projects shall be carried out in accordance with the current laws and international treaties on ODA funds and preferential loans to which the Socialist Republic of Vietnam is a member. In cases where there are differences between domestic legal provisions and international treaties already signed on the same issue, the provisions of the international treaty shall apply.

2. The dossier for reviewing the compensation, support, and resettlement plan of programs and projects must include a formal written commitment from the competent authority regarding the progress, deadlines for completing compensation, support, land clearance, and resettlement consistent with the implementation schedule of each package within the program and project.

Article 52. Tendering

1. The selection of contractors shall be carried out in accordance with the provisions of international treaties between Vietnam and foreign sponsors; in cases where international treaties to which the Socialist Republic of Vietnam is a member provide different provisions on contractor selection compared to the Law on Bidding, the provisions of the international treaty shall apply. In cases where international treaties do not provide for the application of tender procedures, the selection of contractors shall be carried out in accordance with the provisions of the Law on Bidding.

2. Procedures for submitting, examining, and approving tender contents shall be carried out in accordance with Vietnamese laws on bidding. The examination and approval contents shall comply with the provisions of international treaties in accordance with the principle set forth in Clause 1 of this Article.

Article 53. Adjustments to Program and Project Contents and the Use of Excess Funds During Implementation

1. In cases where adjustments lead to changes in the content of the Investment Decision, the managing agency shall implement in accordance with the provisions of Article 21 of this Decree.

Based on the approval of the adjustment to the content of the Investment Decision by the competent authority, the managing agency shall proceed with related procedures for examining and approving program and project documents and adjusting investment decisions for programs and projects.

2. In cases where adjustments to program and project contents lead to amendments, supplements, or extensions of international treaties and agreements on ODA funds and preferential loans, the agency proposing to sign international treaties and agreements on ODA funds and preferential loans shall follow the procedures and steps stipulated in Articles 33 and 36 of this Decree.

3. The use of excess funds (ODA funds and preferential loans) arising during the implementation of programs and projects, including excess funds after tendering, excess funds due to exchange rate and interest rate changes, unallocated contingency reserves, and other excess funds, shall be handled as follows:

a) For cases where excess funds are used within the scope of the program and project as determined in the investment project decision document, consistent with the investment decision approval of the competent authority: after reaching agreement with the Ministry of Planning and Investment and the Ministry of Finance, the managing agency shall negotiate with foreign sponsors to decide on the use of excess funds in accordance with current regulations;

b) For cases where excess funds are used to implement new programs and projects in a priority manner to enhance the effectiveness of ongoing programs and projects: the managing agency shall send a document to the Ministry of Planning and Investment and the Ministry of Finance along with a report proposing the investment policy for new programs and projects using excess funds. The Ministry of Planning and Investment shall take the lead and coordinate with relevant agencies to work with foreign sponsors to agree on the use of excess funds. Subsequent steps related to the submission, examination, and approval of the investment policy for new programs and projects shall be carried out in accordance with Articles 14, 15, 16, 17, and 18 of this Decree.

Article 54. Construction Management, Acceptance, Handover, Audit, Final Accounts Settlement

1. For investment construction projects, the review and approval of design and total budget estimates, issuance of construction permits, quality management of works, acceptance, handover, warranty, and construction insurance shall be carried out in accordance with current laws on investment construction management and international agreements on ODA and concessional loans to which the Socialist Republic of Vietnam is a party. In cases where there are differences between domestic legal provisions and international agreements already signed on the same issue, the provisions of the international agreement shall apply.

2. For technical assistance programs and projects, upon completion, the managing agency shall organize acceptance and take necessary measures to continue exploitation and utilize the achieved results, as well as comply with current laws on financial and asset management of the program and project.

3. The audit and final accounts settlement of programs and projects must be conducted in accordance with current laws and international agreements on ODA and concessional loans to which the Socialist Republic of Vietnam is a party or at the request of foreign sponsors. In cases where there are differences between domestic legal provisions and international agreements already signed on the same issue, the provisions of the international agreement shall apply.

Article 55. Dispute Resolution for Contracts

In case disputes arise related to contracts during the implementation of programs and projects, the parties involved have the responsibility to negotiate and resolve them. If mutual agreement cannot be reached among the parties, dispute resolution shall be carried out through mediation, arbitration, or court proceedings according to the provisions of the contract or international agreements, agreements on ODA and concessional loans for the program and project, and relevant laws.

Article 56. Supervision and Evaluation of Programs and Projects Using ODA and Concessional Loansitself 1. Supervision of programs and projects using ODA and concessional loans includes regular monitoring activities and periodic inspections according to plans or unscheduled checks on the implementation process of ODA and concessional loan-funded programs and projects by levels of ODA and concessional loan management authorities in accordance with current laws on supervision and evaluation of public investment.|||ODA funds, preferential loans

2. Evaluation of programs and projects using ODA and concessional loans includes periodic evaluations according to plans or unscheduled assessments aimed at determining the level of implementation of ODA and concessional loan-funded programs and projects in accordance with current laws on supervision and evaluation of public investment. Evaluation of programs and projects using ODA and concessional loans includes:

a) Initial assessment; Mid-term or phase assessment; Final assessment;

b) Unscheduled assessment;

c) Impact assessment.

3. Responsibilities for supervising and evaluating programs and projects using ODA and concessional loans:

a) The project proponent is responsible for establishing and operating a supervision and evaluation system at the project proponent level and allocating necessary resources for this work;

b) The managing agency is responsible for establishing and operating a supervision and evaluation system at the managing agency level and allocating necessary resources for this work;

c) The Ministry of Planning and Investment is the lead agency assisting the Prime Minister in organizing the supervision and evaluation of ODA and concessional loan management and utilization at the national level, participating together with the managing agency, foreign sponsors, and other relevant agencies and localities in conducting impact assessments in accordance with current laws on supervision and evaluation of public investment. The Ministry of Planning and Investment is responsible for establishing and operating a supervision and evaluation system at the national level and allocating necessary resources for this work.

4. The supervision and evaluation of programs and projects using ODA and concessional loans shall be carried out in accordance with current laws on supervision and evaluation of public investment programs and projects and specific international agreements on ODA and concessional loans for programs and projects to which the Socialist Republic of Vietnam is a party. In cases where there are differences between domestic legal provisions and international agreements already signed on the same issue, the provisions of the international agreement shall apply.

STATE MANAGEMENT OF ODA AND CONCESSIONAL LOANS

Chapter VI

STATE MANAGEMENT OF ODA FUNDS AND PREFERENTIAL LOANS

Article 57. Contents of State Management over ODA and Preferential Loan Funds

1. Issuing and implementing normative legal documents on management and utilization of ODA and preferential loan funds.

2. Developing and implementing projects to attract, manage, and utilize ODA and preferential loan funds for each period to support the implementation of five-year socio-economic development plans; measures and policies to effectively manage and utilize these sources of funds.

3. Providing information on the management and utilization of ODA and preferential loan funds.

4. Supervising and evaluating the situation and results of managing and utilizing ODA and preferential loan funds according to current laws on investment public supervision and evaluation and management and utilization of ODA and preferential loan funds.

5. Handling violations, resolving complaints and denunciations related to the activities of managing and utilizing ODA and preferential loan funds.

6. Awarding agencies, organizations, individuals from Vietnam and foreign sponsors with outstanding achievements in the provision, management, and utilization of ODA and preferential loan funds.

Article 58. Tasks and Authorities of the Ministry of Planning and Investment

The Ministry of Planning and Investment assists the Government in uniformly managing state affairs regarding ODA and preferential loan funds, with the following tasks and authorities:

1. Being the lead agency in mobilizing, coordinating, managing, and utilizing ODA and preferential loan funds; taking the lead in drafting cooperation strategies and policies with foreign sponsors; planning, attracting, coordinating, managing, and utilizing ODA and preferential loan funds; analyzing and assessing the effectiveness of these funding sources.

2. Taking the lead in drafting, submitting for issuance, or issuing normative legal documents on management and utilization of ODA and preferential loan funds within its authority.

3. Taking the lead in preparing content and organizing mobilization, coordination of ODA and preferential loan funds within its authority; compiling and submitting to the Prime Minister proposals for programs and projects using ODA and preferential loans; collaborating with sponsors to develop funding plans for programs and projects using ODA and preferential loans after approval by the Prime Minister.

4. Taking the lead and coordinating with the Ministry of Finance and the State Bank of Vietnam (for World Bank, Asian Development Bank, international financial monetary organizations, and other international banks represented by the State Bank of Vietnam) in appraising ODA and preferential loan funds, counterpart funds, and the ability to balance these funding sources.

5. Compiling and submitting to the Prime Minister for consideration and decision on investment policies for programs and projects using ODA and preferential loan funds under the Prime Minister's authority, except for Class A projects; sending formal letters requesting foreign sponsors to fund programs and projects after investment policies have been decided by authorized bodies.

6. Taking the lead and coordinating with relevant agencies in presenting to the Government matters concerning the signing of framework international treaties on ODA and preferential loan funds, specific international treaties on non-reimbursable ODA funds as stipulated in Clause 4, Article 32 of this Decree; proposing to the Prime Minister the signing of agreements on non-reimbursable ODA funds as stipulated in Clause 4, Article 35 of this Decree.

7. Taking the lead and coordinating with the Ministry of Finance:

a) Compiling and formulating medium-term five-year plans and annual plans for implementing programs and projects using ODA and preferential loan funds nationwide; ensuring full balance and allocation of annual counterpart funds from the budget to prepare for and implement construction investment programs and projects funded from the central government budget within the annual capital plan;

b) Handling additional funding needs in the annual budget plan of programs and projects using ODA and preferential loan funds according to Clause 5, Article 48 and Article 49 of this Decree.

8. Coordinating with the Ministry of Finance and relevant agencies to determine domestic financial mechanisms applicable to programs and projects in accordance with the law.

9. Implementing supervision and evaluation of programs and projects using ODA and preferential loan funds according to laws on public investment supervision and evaluation and management and utilization of ODA and preferential loan funds.

10. Serving as the focal point to resolve difficulties and obstacles during the implementation of programs and projects involving multiple ministries and sectors to ensure progress and promote disbursement of ODA and preferential loan funds; recommending the Prime Minister to decide measures to address issues related to ODA and preferential loan funds within the Prime Minister's authority.

In necessary cases, leading the establishment of inter-ministerial working groups to directly work with the main management agencies, project leaders, project management boards, and foreign sponsors to review, assess, and promptly resolve obstacles within their authority.

11. Submitting periodic (six-monthly, annually) and ad hoc reports to the Prime Minister on the situation of mobilizing, managing, and utilizing ODA and preferential loan funds; recommending solutions to overcome difficulties during the implementation of programs and projects.

12. Leading the implementation of comprehensive measures to enhance the efficiency of managing and utilizing ODA and preferential loan funds.

13. Drafting and disseminating guidance materials on mobilizing, preparing, appraising, organizing management and implementation, supervising, and evaluating programs and projects; supporting professional and sustainable training in program and project management.

Article 59. Tasks and Limitations of the Ministry of Financeon1. Coordinate with the Ministry of Planning and Investment and relevant agencies to develop strategies and policies for cooperation and development with foreign donors, planning, attracting, coordinating, managing, and utilizing ODA funds and preferential loans; analyze and evaluate the effectiveness of using these sources of funding.

2. Guide the preparation of contents related to conditions for using funds, domestic financial mechanisms, financial management of programs and projects; the work of financial appraisal of rescheduling projects.

3. Take the lead and coordinate with relevant agencies to guide the registration of ODA loans and preferential loans, ensuring within the limits of public debt, government debt, and national foreign debt approved by the National Assembly.

4. Take the lead and coordinate with relevant agencies to submit to the Government specific international treaties regarding ODA loans and preferential loans as stipulated in Clause 2, Article 32 of this Decree; propose to submit to the Prime Minister agreements on ODA loans and preferential loans as stipulated in Clause 2, Article 35 of this Decree.

5. Coordinate with the Ministry of Planning and Investment, the State Bank of Vietnam (for World Bank, Asian Development Bank, international financial monetary organizations, and other international banks represented by the State Bank of Vietnam) to appraise ODA funds, preferential loans, counterpart funds, and the ability to balance these sources of funding.

6. Officially represent the "borrower" for ODA loans and preferential loans on behalf of the State or Government with foreign donors, except for loans where the State Bank of Vietnam represents Vietnam and is authorized to sign international treaties and agreements on those loans.

7. Financial management of programs and projects:

a) Take the lead and coordinate with relevant agencies to guide financial management of programs and projects;

b) Take the lead and coordinate with the Ministry of Planning and Investment and relevant agencies to determine domestic financial mechanisms applicable to programs and projects according to the provisions of the law;

c) Specify detailed procedures for withdrawing funds and managing withdrawals of programs and projects based on current legal regulations and provisions of international treaties and agreements on ODA loans and preferential loans signed with foreign donors;

d) Take the lead and guide the implementation of tax and fee policies for programs and projects; resolve issues related to taxes and fees;

đ) Allocate state budget funds and other sources of funds to repay ODA loans and preferential loans when due;

e) Coordinate with the State Bank of Vietnam to identify and announce a list of commercial banks meeting the criteria to conduct settlement transactions for ODA funds and preferential loans;

g) Monitor and inspect financial management in the use of ODA funds and preferential loans and organize state budget accounting for these sources of funding;

h) Periodically compile (every six months, annually) data on disbursement, withdrawal, and repayment of ODA funds and preferential loans to report to the Prime Minister and notify relevant agencies;

i) Coordinate with the Ministry of Planning and Investment to compile and prepare plans to implement programs and projects using ODA funds, preferential loans, and medium-term five-year counterpart funds, annual plans to implement programs and projects using ODA funds, preferential loans, and annual counterpart funds nationwide; handle additional capital requirements in the annual budget plan of programs and projects according to Clause 5, Article 48 and Article 49 of this Decree;

k) Take the lead and coordinate with the Ministry of Planning and Investment to allocate sufficient and timely administrative and operational counterpart funds to prepare for and implement programs and projects funded from the central budget in the annual capital plan;

l) Organize the rescheduling and recovery of rescheduled loan portions of programs and projects applying the state budget rescheduling mechanism.

l) Organizing the relending and recovery of the portion of the relending capital of programs and projects applying the state budget relending mechanism.

Article 60. Tasks and Authorities of the State Bank of Vietnam

2. Guide the preparation of contents related to conditions for using funds, domestic financial mechanisms, financial management of programs and projects; the work of financial appraisal of rescheduling projects.

2. Coordinate with the Ministry of Planning and Investment and the Ministry of Finance to appraise the sources of ODA funds, preferential loans, counterpart funds, and the ability to balance these sources of funds (for the sources of funds from the World Bank, the Asian Development Bank, international financial and monetary organizations, and other international banks for which the State Bank of Vietnam acts as representative).

3. Take the lead and coordinate with relevant agencies to submit to the Government on the signing of specific international treaties concerning ODA funds and preferential loans as stipulated in Clause 3, Article 32 of this Decree; propose to submit to the Prime Minister on the signing of agreements concerning ODA funds and preferential loans as stipulated in Clause 3, Article 35 of this Decree.

4. Officially represent the "borrower" in ODA loans and preferential loans on behalf of the State or Government with the World Bank, the Asian Development Bank, the International Monetary Fund, international financial and monetary organizations, and other international banks for which the State Bank of Vietnam acts as representative and is authorized to sign international treaties and agreements regarding such loans.

5. Transfer files and all related information about programs and projects to the Ministry of Finance after specific international treaties and agreements concerning ODA funds and preferential loans become effective, except for loan agreements with the International Monetary Fund.

6. Take the lead and coordinate with the Ministry of Finance to determine and announce a list of commercial banks meeting the criteria for conducting foreign exchange transactions with ODA funds and preferential loans, serving as a basis for the agency leading negotiations on specific international treaties and agreements concerning ODA funds and preferential loans to select banks to serve programs and projects.

7. Periodically compile (every six months, annually) and notify the Ministry of Finance, the Ministry of Planning and Investment, and relevant agencies about the situation of withdrawing funds and payments through the account system opened at banks for programs and projects.

Article 61. Tasks and Authorities of the Ministry of Justice

1. Appraise draft international treaties and agreements concerning ODA funds and preferential loans according to the provisions of the law.

2. Participate in negotiations and provide comments on the content of draft international treaties and agreements concerning ODA funds and preferential loans.

3. Provide opinions on the Report proposing investment policies for programs and projects cooperating with foreign sponsors regarding laws.

4. Appraise legal documents for programs and projects cooperating with foreign sponsors within the Prime Minister's approval authority according to the provisions of the law on managing international cooperation in the field of law.

5. Provide opinions on legal issues concerning the draft resettlement policy framework before submitting to the Prime Minister for approval.

6. Issue legal opinions on international treaties and agreements concerning ODA funds and preferential loans according to the provisions of the law.

Article 62. Tasks and Authorities of the Ministry of Foreign Affairs

1. Coordinate with relevant agencies based on the overall foreign policy, develop and implement policies and directions for mobilizing ODA funds and preferential loans, partnership policies; participate in mobilizing ODA funds and preferential loans.

2. Take the lead and coordinate with the Ministry of Planning and Investment and relevant agencies to direct overseas diplomatic missions or international organizations to mobilize ODA funds and preferential loans in line with policies and directions for mobilization, planning, attracting, coordinating, managing, and utilizing ODA funds and preferential loans during each period.

3. Participate in negotiations and provide comments on draft international treaties and agreements concerning ODA funds and preferential loans; review proposals for signing international treaties and agreements concerning ODA funds and preferential loans.

4. Implement diplomatic procedures for signing and implementing international treaties and agreements concerning ODA funds and preferential loans; organize storage, copying, and publication of international treaties and agreements concerning ODA funds and preferential loans.

5. Participate in evaluating programs and projects as required by competent authorities.

6. Monitor and inspect the implementation of procedures for signing and implementing international treaties and agreements concerning ODA funds and preferential loans according to the provisions of the law.

Article 63. Tasks and Authorities of the Government Office

1. Assist the Government and the Prime Minister in leading, directing, and managing state administration uniformly over ODA capital and preferential loan capital.

2. Participate in providing opinions on contents during the preparation process of programs and projects at the request of the managing agency or project owner; review and propose recommendations and suggestions on policies, mechanisms, and methods for implementing programs and projects before submitting them to the Government and the Prime Minister for consideration and decision.

3. Assist the Government and the Prime Minister in inspecting and urging the implementation of this Decree.

Article 64. Tasks and Authorities of Ministries, Agencies Equivalent to Ministries, and Government Agencies

1. Coordinate with the Ministry of Planning and Investment and relevant agencies in developing strategies, plans, and programs for attracting, coordinating, managing, and utilizing ODA capital and preferential loan capital; develop policies and measures for coordinating and enhancing the effectiveness of using ODA capital and preferential loan capital within their respective fields of responsibility.

2. Develop proposals for investment policies or preliminary feasibility studies reports to be submitted to competent authorities for decision-making or decide according to their authority as stipulated in Clause 4, Article 12 of this Decree.

3. Coordinate with the Ministry of Finance and the State Bank of Vietnam in presenting to the Government specific international treaties regarding ODA capital and preferential loan capital for programs and projects under their management as stipulated in Clauses 2 and 3, Article 32 of this Decree, and implement such international treaties in accordance with laws on international treaties; coordinate with the Ministry of Finance and the State Bank of Vietnam in presenting to the Prime Minister agreements on ODA capital and preferential loan capital for programs and projects under their management as stipulated in Clauses 2 and 3, Article 35 of this Decree, and implement such agreements in accordance with laws.

4. Propose to the Government the signing of specific international treaties regarding non-reimbursable ODA capital as stipulated in Clause 1, Article 32 of this Decree, and organize the implementation of such international treaties in accordance with laws on international treaties; propose to the Prime Minister the signing of agreements on non-reimbursable ODA capital as stipulated in Clause 1, Article 35 of this Decree, and organize the implementation of such agreements in accordance with laws.

5. Perform state management functions over ODA capital and preferential loan capital within their respective sectors and fields of responsibility in accordance with laws.

6. Ensure transparency and accountability for the effectiveness of using ODA capital and preferential loan capital for programs and projects directly managed and implemented by them.

Article 65. Tasks and Authorities of Provincial People's Committees

1. Coordinate with the Ministry of Planning and Investment, ministries, sectors, and relevant agencies in developing strategies, plans, and programs for attracting, coordinating, managing, and utilizing ODA capital and preferential loan capital; develop policies and measures for coordinating and enhancing the effectiveness of using ODA capital and preferential loan capital within their provincial jurisdiction.

2. Develop proposals for investment policies or preliminary feasibility studies reports to be submitted to competent authorities for decision-making or decide according to their authority as stipulated in Clause 4, Article 12 of this Decree.

3. Coordinate with the Ministry of Finance and the State Bank of Vietnam in presenting to the Government specific international treaties regarding ODA capital and preferential loan capital for programs and projects under their management as stipulated in Clauses 2 and 3, Article 32 of this Decree, and implement such international treaties in accordance with laws on international treaties; coordinate with the Ministry of Finance and the State Bank of Vietnam in presenting to the Prime Minister agreements on ODA capital and preferential loan capital for programs and projects under their management as stipulated in Clauses 2 and 3, Article 35 of this Decree, and implement such agreements in accordance with laws.

4. Coordinate with the Ministry of Planning and Investment in presenting to the Prime Minister specific international treaties regarding non-reimbursable ODA capital as stipulated in Clause 4, Article 32 of this Decree, and organize the implementation of such international treaties in accordance with laws on international treaties; coordinate with the Ministry of Planning and Investment in presenting to the Prime Minister agreements on non-reimbursable ODA capital as stipulated in Clause 4, Article 35 of this Decree, and organize the implementation of such agreements in accordance with laws.

5. Be responsible for directing and organizing the recovery of land, compensation, and clearance of construction sites for programs and projects within their jurisdiction in accordance with laws and international treaties on ODA capital and preferential loan capital where the Socialist Republic of Vietnam is a member.

6. Perform state management functions over ODA capital and preferential loan capital within their jurisdiction in accordance with laws.

7. Ensure transparency and accountability for the effectiveness of using ODA capital and preferential loan capital for programs and projects directly managed and implemented by them.

8. Allocate sufficient funds to repay central government budget debts on time to repay foreign debts for programs and projects applying the central government budget mechanism for provincial budgets to borrow ODA capital and preferential loan capital.

Chapter VII

IMPLEMENTING PROVISIONS

Article 66. Organizationứ1. Thông tư này có hiệu lực thi hành kể

1. The Ministry of Planning and Investment shall take the lead and coordinate with relevant agencies to issue Circulars guiding the implementation of this Decree.

2. The Ministry of Finance shall issue guiding documents for the implementation of this Decree regarding financial management, tax and fee policies for ODA funds and preferential loans within its authority.

Article 67. Transitional Provisions

Programs and projects that have been approved by competent authorities before the effective date of this Decree shall continue to be implemented in accordance with the provisions of Government Decree No. 38/2013/NĐ-CP dated April 23, 2013 on the management and use of official development assistance (ODA) and preferential loan sources from donors.

Article 68. Effective Date of Implementation

1. This Decree takes effect from May 2, 2016 and replaces Government Decree No. 38/2013/NĐ-CP dated April 23, 2013 on the management and use of official development assistance (ODA) and preferential loan sources from donors.

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees under central cities, and related organizations and individuals are responsible for implementing this Decree./.