Decision No. 189/QD-TTg Approving the List of Projects under the "Northern Mountainous Urban Program" to be Financed by the World Bank

Pursuant to …;

Regarding the approval of the project list for the "Northern Mountain Urban Program," to be financed by the World Bank

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PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to Decree No. 38/2013/NĐ-CP dated April 23, 2013 of the Government on management and use of official development assistance (ODA) and preferential loans from donors;

Considering the proposal of the Minister of Planning and Investment in document number 212/BKHĐT-KTĐN dated January 13, 2014,

DECISION:

Article 1. Approve the project list for the "Northern Mountain Urban Program" (the Project) with the main contents as follows:

1. Sponsor: The World Bank (WB).

2. Managing agency: Ministry of Construction, People's Committees of the provinces: Bac Kan, Cao Bang, Dien Bien, Hoa Binh, Thai Nguyen, Tuyen Quang, and Yen Bai.

Project coordinating agency: Ministry of Construction.

3. Main objectives: Improve urban infrastructure, environmental sanitation conditions, and enhance living standards for residents to promote sustainable economic and social development in cities and towns in seven northern mountainous provinces including Bac Kan, Cao Bang, Dien Bien, Hoa Binh, Thai Nguyen, Tuyen Quang, and Yen Bai; strengthen central capacity to plan and develop national urban development policies, build strategies to implement the results-based program approach nationwide; and enhance planning, programming, and urban management capabilities for local authorities.

4. Main activities of the Project:

- Invest in building urban infrastructure in cities and towns in the aforementioned seven provinces, including constructing new roads, bridges, reservoirs, drainage systems, and kindergartens;

- Develop and implement national urban development policies, provide technical support to units managing and operating technical infrastructure in localities;

- Verify results and monitor, audit the Project.

5. Implementation period of the Project: Six years from the date the loan agreement becomes effective.

6. Total investment cost of the Project: 301.856 million USD, of which:

- Loan from the International Development Association (IDA) of the WB: 250 million USD;

- Counterpart funds from Vietnam: 51.856 million USD, allocated from the budgets of the aforementioned seven provinces and the Ministry of Construction;

- Specific allocation of loan and counterpart funds by the managing agencies as proposed by the Ministry of Planning and Investment in the aforementioned document.

7. Domestic financial mechanism: A mixed mechanism, including both state budget disbursement and relending.

Article 2. The Ministry of Finance shall take the lead, coordinate with relevant agencies to propose specific domestic financial mechanisms for the Project in accordance with current regulations, submit to the Prime Minister for consideration and decision before negotiating with the WB.

Article 3. The Ministry of Construction is the focal agency, responsible for overall coordination, supporting localities in implementing the Project. People's Committees of the provinces: Bac Kan, Cao Bang, Dien Bien, Hoa Binh, Thai Nguyen, Tuyen Quang, Yen Bai, and the Ministry of Construction shall incorporate comments from relevant agencies, finalize the Project documentation, approve and organize implementation of the Project in accordance with current regulations, ensuring that the Project is approved by the WB in June 2014.

Article 4. Agree that the managing agencies may proceed with pre-implementation activities in accordance with current regulations to expedite the Project's progress.

Article 5. This Decision shall take effect from the date of signing.

Ministers of the Ministries of Construction, Planning and Investment, Finance, Justice, Foreign Affairs, Governor of the State Bank of Vietnam, Chairmen of the People's Committees of participating provinces, and heads of relevant agencies are responsible for enforcing this Decision./.