Decision No. 622/QD-TTg approves the feasibility study report for the project "community-based rural infrastructure".

Pursuant to …;

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:Approving the feasibility study report for the project "Rural infrastructure based on community participation"

relying on the community"

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PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

Considering the Memorandum No. 2365 BKH/ĐP dated April 17, 2001, submitted by the Ministry of Planning and Investment,

Pursuant to …;

Article 1. Approving the feasibility study report for the Project "Rural infrastructure based on community participation" funded by the World Bank (WB) with the main contents as follows:

1. Scope and scale of the project:

a) The project will be implemented in 611 communes in 98 districts of 13 provinces including: Thanh Hoá, Nghệ An, Hà Tĩnh, Thừa Thiên Huế, Quảng Nam, Quảng Ngãi, Bình Định, Phú Yên, Khánh Hoà, Ninh Thuận, Bình Thuận, Lâm Đồng, and Bình Phước.

b) Principles for selecting poor communes to participate in the project:

- List of poor communes according to Decision No. 1232/QĐ-TTg dated December 24, 1999 and Decision No. 42/2001/QĐ-TTg dated March 26, 2001 of the Prime Minister regarding the number of poor communes under Program 135 (Decision No. 135/1998/QĐ-TTg dated July 31, 1998 of the Prime Minister approving the Program for economic and social development in extremely difficult communes, mountainous areas, and remote regions).

- Communes selected from the two lists above but located within national forest reserves, natural conservation areas, and buffer zones with high levels of migration shall not fall within the scope of investment of this project.

- Communes proposed for selection within the project area but currently receiving investments from other foreign organizations or being invested through Program 135 shall be reviewed and decided upon by the Ministry of Planning and Investment in coordination with relevant central ministries, departments, and the provinces in the project area together with the World Bank after two years of implementation, ensuring no overlapping investments.

2. Objectives of the project:

The general objective is to contribute to the National Poverty Reduction Program of the Government of Vietnam. Specific objectives and tasks:

a) Enhance the capacity of communities at commune level in planning activities through the preparation of plans, organization of community mobilization, supervision, construction management, final accounts settlement, and maintenance of facilities during operation.

b) Narrow the gap in small-scale public infrastructure for poor communes through investment in communal and inter-communal infrastructure projects in the project area.

c) Create job opportunities and increase income for people in communes.

3. Main components of the project:

a) Strengthening planning and implementation capacity for projects at the commune level.

Conduct training and instruction for local officials at all levels on knowledge and experience in planning, implementing, and managing rural infrastructure projects, with a total of approximately 12,467 participants expected to be trained, including 858 officials at district level and above (with 11,609 at commune level); the training period will be conducted over the first four years of the project (for district level and above, the first two years).

b) Developing infrastructure through investment in the construction of rural infrastructure projects within the following scope and scale:

- Commune-level projects: each commune will finance between $63,000 and $186,000 (over three years, with equal funding allocated annually) to construct or repair small-scale public infrastructure mainly serving villages (hamlets). All commune-level projects will serve irrigation for 10,710 hectares; provide 65,506 cubic meters of water per day and night; supply electricity to 18,611 households; build and repair 6,041 kilometers of roads; construct and repair 185 commune health stations and 1,425 schools.

- Inter-commune projects: invest in infrastructure projects serving two or more poor communes, including transportation networks, power grids, water conservancy works, and flood prevention.

c) Supporting services for the project, Implementing supporting service activities of the project, focusing on the management and operations of the Central Project Management Board, provincial Project Management Boards, Technical Support Groups at the district level, and Commune Project Coordination Boards during the implementation, monitoring, and evaluation processes.

4. Sources of investment and allocation of funds: the total investment amount is $123.41 million, of which:

a) World Bank loan: $102.78 million, accounting for 83.28%, allocated by the state budget for the following activities:

- Infrastructure investment: $96.35 million, of which $79.4 million for commune-level infrastructure and $14.9 million for inter-commune infrastructure, and $2.05 million for planning and project implementation support at the commune level.

- Training and capacity enhancement investment: $2.59 million. If the World Bank finds non-reimbursable funding sources, this amount will be redirected to investment in commune-level infrastructure projects.

- Monitoring and evaluation project activities (domestic and international consulting): $1.44 million. If the World Bank finds non-reimbursable funding sources, this amount will be redirected to infrastructure investment.

- Project activity support costs (transportation means, office equipment for Project Management Boards, salaries for community facilitators, and three positions at the Central Project Management Board including Project Coordinator, Training Coordinator, and Chief Accountant): $2.41 million.

b) State budget: $16.81 million, accounting for 13.62%, balanced in the annual plans of the provinces and the Ministry of Planning and Investment, used for investment preparation work, counterpart funding for equipment purchases, resettlement compensation costs (if applicable), training and capacity enhancement at the commune level, and project management activities at various levels.

c) Community contribution: $3.82 million, accounting for 3.1%, mainly in the form of labor days and local materials.

5. There is no need to prepare a feasibility study report for the Project "Rural Infrastructure Based on Community Participation." The People's Committee Chairmen of the provinces in the project area are tasked with directing subordinate levels to develop investment reports for commune and inter-commune sub-projects, approve investments according to the mechanisms of Program 135 and the current investment and construction management regulations.

6. Implementation period of the project: from 2001 to 2006, divided into annual phases.

Article 2. Organization of Project Implementation

1. At the central level: The Ministry of Planning and Investment is the lead coordinating agency responsible for implementing the Project according to current regulations, with the following responsibilities:

- Establish a Project Management Board to oversee, inspect, monitor, and evaluate the implementation of the project according to approved objectives to manage and direct the overall Project.

- Take the lead and coordinate with relevant ministries and sectors to guide the management process of the "Community-based Rural Infrastructure" Project investment;

- Together with the leading agency negotiating the Project with the World Bank (WB) and related agencies, cooperate with the WB to find non-repayable funding sources for training activities, capacity building, and domestic and foreign consulting experts.

2. Provincial level: The provincial People's Committee is the project investor at the provincial level and is responsible for:

- Directing the organization and implementation of the project within the province.

- Deciding on the establishment of the Provincial Project Management Board to manage and implement the project in accordance with the current Investment and Construction Management Regulations.

- Approving (or delegating to the Director of the Provincial Department of Planning and Investment) the approval of feasibility reports for village and inter-village sub-projects (without preparing a pre-feasibility report).

3. District level: The district People's Committee is the investor of inter-village sub-projects and is responsible for:

- Organizing and supervising the implementation of inter-village investment works.

- Establishing a District Technical Support Group headed by a Deputy Chairman of the District People's Committee to assist villages in planning, developing, and submitting investment reports, providing technical construction guidance, and financial management procedures.

4. Commune level: The commune People's Committee is the investor of village sub-projects and implements communal infrastructure works through the Commune Project Coordination Board, headed by the Chairman or a Deputy Chairman of the Commune People's Committee.

Article 3. The Minister of Planning and Investment, the Chairpersons of the People's Committees of the 13 provinces involved in the project, the Ministers and Heads of the Ministry of Ethnic Affairs and Highland Areas, the Ministries of Finance, Construction, Labor - Invalids and Social Affairs, Agriculture and Rural Development, Science and Technology, Environment, the Governor of the State Bank, and the heads of related agencies are responsible for implementing this Decision./.