Circular 78/2004/TT-BTC guiding the management of withdrawal of Official Development Assistance (ODA) capital

CIRCULAR

CIRCULAR NO. 78/2004/TT-BTC OF AUGUST 10, 2004 OF THE MINISTRY OF FINANCE GUIDING THE MANAGEMENT OF WITHDRAWAL OF FUNDS FROM OFFICIAL DEVELOPMENT ASSISTANCE (ODA)

- Pursuant to Decree No. 17/2001/NĐ-CP dated May 4, 2001 of the Government promulgating the Regulation on Management and Use of Official Development Assistance (ODA) Sources;

- Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

- Pursuant to Decree No. 77/2003/CP-NĐ dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

The Ministry of Finance guides in detail the procedures and formalities for withdrawing ODA funds as follows:

PART I. GENERAL PROVISIONS

I. SCOPE OF APPLICATION:

1. This Circular applies to the management of withdrawal of funds and related financial issues concerning the withdrawal of ODA loan and co-financing aid in ODA loan programs/projects; or independent aid programs/projects with withdrawal methods consistent with this Circular. Counterpart fund withdrawal shall be carried out according to the procedures and formalities stipulated in current documents.

2. For ODA programs/projects with specific characteristics, the Ministry of Finance may issue specific guidelines depending on management requirements.

3. In cases where certain non-reimbursable aid projects must apply the method of direct management and implementation by the donor as stipulated in the Agreement/supplementary document on aid, such projects shall be implemented in accordance with the Agreement/supplementary document signed with the donor.

4. For aid provided in the form of trust funds managed by the Government, the Ministry of Finance will issue separate guidelines.

II. GLOSSARY:

In this Circular, some terms and phrases are understood as follows:

1. "Program/project" refers to a program/project using ODA funds.

2. "Program/project owner" is the entity entrusted with the direct responsibility for managing and utilizing ODA funds and counterpart funds to implement the program/project in accordance with the approved content.

3. "Program/project management board" (hereinafter referred to as the Project Management Board) is the agency representing the Project Owner, having full authority to act on behalf of the Project Owner to perform assigned duties and responsibilities from the start until the completion of the project, including final settlement, acceptance, handover for operation and use, and execution of withdrawal transactions and payments from program/project funds.

4. "Service bank" is a commercial bank selected in accordance with current regulations or through an agreement between the Government and the donor in international treaties to serve the program/project in opening transaction accounts, implementing foreign withdrawal procedures (if applicable), and executing payment transactions.

5. "Expenditure control agency" is:

- The State Treasury at various levels (based on the delegation of each program/project) performs expenditure control activities of the program/project (i) funded by the state budget or part of the program/project credit funded by the state budget (if applicable); and (ii) non-credit components within credit program/projects.

- The Development Support Fund controls expenditures of programs/projects funded by the state budget through the Development Support Fund under the authorization of the Ministry of Finance.

- Programs/projects with both parts funded by the state budget and parts lent back by the state budget, implemented by the same Project Management Board: The Ministry of Finance determines the expenditure control agency based on the nature of the project, ensuring the principle that no two agencies control the same activity of the program/project.

6. "Financial plan" is the investment capital plan (for construction projects) or annual budget estimate (for administrative and public service projects) to implement the program/project, including ODA funds (foreign aid) and counterpart funds (domestic funds).

III. MANAGEMENT PRINCIPLES:

1. ODA funds allocated for programs/projects are state budget sources and must be fully recorded in the budget and managed in accordance with the State Budget Law and current guiding documents.

2. The Ministry of Finance implements its function of state financial management for program/project fund withdrawals, accounting for state budget revenues and expenditures of ODA funds, guiding and inspecting the implementation of financial management systems, project settlements, and guiding and inspecting units to transfer assets, materials, and project funds upon completion.

3. The program/project owner is primarily responsible under the law for implementing programs/projects in accordance with commitments stipulated in international treaties, strictly adhering to state regulations on program/project implementation, financial management, accounting, auditing, and settlement in accordance with current state regulations.

4. Depending on the nature of each specific program/project (construction investment project, administrative and public service project, mixed project with both construction and administrative/public service components, credit project...), corresponding management procedures regarding financial planning, expenditure control, payment, accounting, and settlement shall be applied in accordance with current regulations.

IV. FINANCIAL PLAN

1. The financial plan of the program/project, once approved by the competent authority, serves as the basis for controlling withdrawals for the program/project. After the financial plan is approved, the Project Management Board sends the financial plan to the Ministry of Finance (Department of Foreign Financial Affairs) and the Expenditure Control Agency.

2. The preparation of the financial plan for the program/project is carried out in accordance with Circular No. 02/2003/TTLT-BKH-BTC dated March 17, 2003 of the Ministry of Planning and Investment and the Ministry of Finance guiding the preparation of financial plans for programs/projects using ODA funds.

V. SERVICE BANK AND ACCOUNTS

1. Accounts:

1. 1. The project management board shall manage the opening of transaction accounts at the serving bank in accordance with current regulations. For projects with advance payment accounts/special accounts where the agreement with the financier stipulates that the project management board is the account holder, the project management board shall open these accounts at the serving bank and notify the Ministry of Finance (Department of Foreign Finance) and the Expenditure Control Agency of the details of such accounts.

1. 2. Special accounts/advance payment accounts shall accrue interest at rates agreed upon between the serving bank and the account holder. Interest accrued on these accounts constitutes revenue for the State Budget for programs and projects funded by the State Budget; and is revenue for the Project Owner for programs and projects financed by the State Budget through loans.

1. 3. For hybrid programs and projects having components both funded by the State Budget and refinanced by the State Budget using the same special account/advance payment account (the time when the State Budget refinances is the time when funds are withdrawn from the special account/advance payment account), interest accrued on the account is revenue for the State Budget.

2. Responsibilities of the Serving Bank

2. 1. The serving bank shall implement the opening of relevant accounts for the project according to the request of the project management board, carry out transactions and fund withdrawals based on the request of the project management board, in accordance with current regulations.

2. 2. On a monthly basis and upon request of the account holder, the serving bank shall notify the account holder and the Department of Finance of the interest accrued on special accounts/advance payment accounts of programs and projects; service fees collected by the serving bank; the difference between interest and fees; beginning and ending balances.

2. 3. Within two working days of receiving notice of funds withdrawn from the financier, the serving bank shall report the receipt to the account holder.

2. 4. Annually, within six months following the end of the fiscal year, the serving bank shall transfer to the Ministry of Finance the remaining interest accrued on special accounts/advance payment accounts of programs and projects funded by the State Budget, after deducting service fees, and shall notify the Ministry of Finance.

3. Banking Fees:

3. 1. The serving bank shall be entitled to charge fees in accordance with current regulations regarding service charges for services provided to programs and projects.

3. 2. Banking service fees shall be recorded as part of the total costs of programs and projects.

PART II. SPECIFIC PROVISIONS

A. WITHDRAWAL PROCEDURES

I. EXPENDITURE CONTROL

1. Principles of Expenditure Control:

1. 1. Expenditure control applies to all expenditures of programs and projects, except for payments made under letters of credit (L/C) or direct payments under non-cancellable payment authorization letters in bilateral aid projects. In these cases, the examination of supporting documents for payment shall be carried out by the bank issuing the L/C (or the advising bank) or the agency bank/or another organization authorized by the financier (see provisions in Part II, Section A, Subsection III, Points 3.3 and 3.5).

1. 2. Expenditure control aims to ensure that expenditures of programs and projects comply with the Agreement/Project Documentation (legitimate expenditure, legitimate procurement methods, correct funding ratio according to the Agreement, validly signed and approved contracts, ensuring pre-approval by the financier if applicable), and current domestic financial management regulations.

1. 3. Expenditure control for ODA funds may not be limited by the financial plan of the program/project in the following cases:

- Programs/projects without an approved financial plan but with a letter from the managing authority sent to the Ministry of Finance and the Expenditure Control Agency, committing to approve the financial plan for the program/project within two (02) months from the date of issuance of the letter.

- Programs/projects withdrawing funds exceeding the approved financial plan but with a commitment letter from the managing authority to supplement the capital plan for the program/project. Within three (03) months from the date of withdrawal outside the approved financial plan, the program/project must complete procedures for building and approving a supplementary financial plan.

2. Expenditure Control Documents

2. 1. Documents and procedures for expenditure control for construction projects or construction cost components in mixed projects: shall be implemented in accordance with Circular 44/2003/TT-BTC dated May 15, 2003, issued by the Ministry of Finance, guiding the management and settlement of investment and development funds and construction funds from state budget sources or other amended, supplemented, or replaced circulars.

2. 2. Documents and procedures for expenditure control for administrative and public service projects or administrative and public service cost components in mixed projects: shall be implemented in accordance with Circular 79/2003/TT-BTC dated August 13, 2003, issued by the Ministry of Finance, guiding the management, allocation, and settlement of state budget funds through the State Treasury or other amended, supplemented, or replaced circulars.

2. 3. Documents and procedures for expenditure control for loan components in programs and projects shall be based on the loan statement sent by the lending financial institution to the Ministry of Finance (a consolidated loan statement, not detailed payment documents). The lending financial institution is responsible under the law for the accuracy and validity of the statements sent to the Ministry of Finance.

3. Confirmation of Expenditure Control

3. 1. After conducting expenditure control, the Expenditure Control Agency shall confirm on the payment invoice/payment statement/advance payment request form (collectively referred to as the Payment Invoice).

3. 2. The Payment Invoice with confirmation (original) from the Expenditure Control Agency serves as the basis for withdrawing ODA funds from the financier.

3. 3. The amount of ODA funds requested for withdrawal from the financier must match the amount of foreign source funds confirmed by the Expenditure Control Agency on the Payment Invoice. Each Payment Invoice can only be used once for expenditure control.

4. Post-Expenditure Control

4. 1. Post-expenditure control involves the Expenditure Control Agency reviewing and confirming the legitimacy of expenditures after the project management board has withdrawn funds for payment to beneficiaries.

4. 2. Post-payment control shall be applied in the following cases:

- Payment from Special Account/Advance Account for expenditures at the direct management level of the Special Account/Advance Account based on a written approval of the Program/Project Manager to apply post-payment control.

- Transfer payment when implementing programs/projects funded by JBIC, except for the final payment of all contracts or for contracts that are paid only once, which must apply pre-payment control.

- Direct payment in government loan refinancing projects, except for the final payment of all contracts or for contracts that are paid only once, which must apply pre-payment control.

4. 3. Post-payment control process:

- When there is a need for payment, the Project Management Board: (i) requests the serving bank to deduct funds from the Special Account/Advance Account (for payment through the Special Account/Advance Account); or (ii) signs/requests the Ministry of Finance to sign a withdrawal form sent to the sponsor (for direct payment, transfer payment) to pay the contractor/supplier/advisor based on quantity and valid documentation.

- Within five working days after payment from the Special Account/Advance Account; or after sending the withdrawal form for direct payment, transfer payment to the sponsor, the Project Management Board sends the payment file to the expenditure control agency for post-payment control. The post-payment control file is implemented according to the provisions in Part II, Section A, Item I, Point 2.

- Within five working days from receiving complete valid files, the Expenditure Control Agency provides comments on the post-payment control (confirmation/rejection of confirmation), and simultaneously pays the counterpart capital (if the project or corresponding component is eligible for counterpart grant/loan).

- The payment voucher with the confirmation of the Expenditure Control Agency (original) serves as the basis for the Project Management Board to request subsequent withdrawals from the sponsor. The Ministry of Finance may refuse subsequent withdrawals for payment if it finds that the program/project does not comply with the post-payment control confirmation regulations of the Expenditure Control Agency.

5. Pre-payment control:

5. 1. Pre-payment control is the action of the Expenditure Control Agency checking and confirming the legitimacy of the expenditure before the Project Management Board withdraws funds for payment to the beneficiary.

5. 2. Pre-payment control applies in all cases where post-payment control methods specified in Part II, Section A, Item I, Point 4.2 are not applicable, specifically as follows:

- Direct payment (except for direct payment, transfer payment as specified in Part II, Section A, Item I, Point 4.2 above).

- Retroactive payment.

- Payment/advance payment for expenditures at the implementation level of the project not directly managing the Special Account/Advance Account.

- Payment/advance payment for expenditures at the implementation level of the project directly managing the Special Account/Advance Account upon written request of the Program/Project Manager to apply pre-payment control.

- Final payment for all contracts, or for contracts paid only once (including payments from the Special Account/Advance Account).

- Other cases.

5. 3. Pre-payment control process:

- When there is a need for payment, the Project Management Board prepares the Expenditure Control File and sends it to the Expenditure Control Agency requesting pre-payment control.

- The Expenditure Control File is implemented according to the provisions in Part II, Item A, Section I, Point 3.

- In the quarter/year within the framework of the ODA program/project, and the final account report of completed works in accordance with the current regulations. Within five working days, the Expenditure Control Agency reviews the file, confirms the foreign capital eligible for payment, and pays the counterpart capital (if the project or corresponding component is eligible for counterpart grant/loan).

- Based on the expenditure confirmed by the Expenditure Control Agency as eligible for payment, the Project Management Board issues a payment mandate to the serving bank along with the payment voucher with the original confirmation of the Expenditure Control Agency to pay the beneficiary.

- In cases where the Project Management Board does not directly manage the Special Account/Advance Account, the subordinate Project Management Board sends a payment request to the superior Project Management Board, accompanied by the payment voucher with the original confirmation of the Expenditure Control Agency at the same level for the superior Project Management Board to proceed with withdrawing funds from the Special Account/Advance Account or from the sponsor for the beneficiary.

- The serving bank will only withdraw funds from the Special Account/Advance Account when the payment request from the Project Management Board for the beneficiary is accompanied by the payment voucher with the original confirmation of the Expenditure Control Agency.

 II. WITHDRAWAL OF ODA FUNDS UNDER PROGRAMS

FAST DISBURSEMENT IN CASH

1. 1. For ODA funding provided under budget support programs, fast disbursement in cash to implement reform tasks committed by the Government to sponsors, the program management agency implements and coordinates the fulfillment of committed withdrawal conditions; collaborates with the Ministry of Finance to withdraw ODA funds based on directives from

1. 2. The Ministry of Finance is the agency signing/jointly signing withdrawal forms for program loans. Specifically, for program loans from the World Bank, Asian Development Bank, the State Bank signs the withdrawal form after reaching a consensus with the Ministry of Finance.

III. WITHDRAWAL OF ODA FUNDS UNDER PROJECTS

1. Depending on the provisions in international treaties/documents, the withdrawal and payment of ODA funds through project financing methods are carried out through one or several common methods: direct payment withdrawal, withdrawal based on commitment letters, repayment withdrawal, retroactive withdrawal, payment through special accounts/advance accounts, and other special withdrawal methods agreed upon separately with sponsors.

2. Initial withdrawal file: The Project Management Board submits the initial file as the basis for managing ODA fund withdrawal to the Ministry of Finance (Department of Foreign Financial Affairs). The file includes the following documents:

- Investment decision by the competent authority;

- International treaty on ODA signed between Vietnam and the sponsor and related project documents;

- Financial plan assigned by the competent authority.

- Agreement on rescheduling signed between the project owner and the authorized rescheduling agency (if applicable to rescheduled projects);

- Decision of the competent authority recognizing the successful bidder (or decision appointing the bidder) and/or decision of the competent authority approving the contract signed with the contractor (if any);

- Contract (construction, procurement, consultancy, etc...) between the project owner and the contractor or approved budget expenditure plan (if the expenditure activity does not follow a contractual form);

- In cases where the contract requires prior consent from the financier, an additional "no objection" opinion from the financier is required;

- Bank guarantee for performance issued by the contractor's bank;

- Advance payment guarantee (for advance payment settlements);

The Project Management Board only needs to submit the above documents once for the entire project, except for the annual investment capital plan/financial plan which must be submitted annually. These documents only need to be submitted in copy. The Project Management Board is responsible under the law for the authenticity of the copies provided to the Ministry of Finance.

3. Withdrawal Procedures:

(See the diagram describing withdrawal procedures in Appendix 1)

3.1. Withdrawal Request Form and Supporting Documents Accompanying the Withdrawal Request Form (collectively referred to as the Withdrawal Request Form): The Withdrawal Request Form is prepared and signed by the Project Management Board before submission to the Ministry of Finance (Department of Foreign Financial Affairs). The Project Management Board is legally responsible for the legality and authenticity of the Withdrawal Request Form.

3.2. Direct Payment/Transfer Procedure:

3.2.1. When there is a need to withdraw funds for direct payment/transfer, the Project Management Board sends the following documents to the Ministry of Finance (Department of Foreign Financial Affairs):

- Letter requesting fund withdrawal accompanied by the Withdrawal Request Form and account statements according to the model prescribed by the financier;

- Invoice/payment request from the contractor;

- Payment voucher with confirmation (original) from the Expenditure Control Agency for cases applying pre-expenditure control procedures; or Payment voucher with confirmation (original) from the Expenditure Control Agency for direct payments/transfers made in previous periods for cases applying post-expenditure control procedures.

- In special cases, the Ministry of Finance may require the Project Management Board to provide additional supporting documents to prove the legitimacy of the fund withdrawal.

3.2.2. Within five working days from receiving complete and valid documents, the Ministry of Finance (Department of Foreign Financial Affairs) will examine and sign/co-sign the Withdrawal Request Form sent to the financier.

- For projects financed by the World Bank (WB) and Asian Development Bank (ADB), within five working days from receiving complete and valid documents, the Ministry of Finance (Department of Foreign Financial Affairs) will issue a written opinion to the Project Management Board and the servicing bank. Within two working days, based on the approval of the Ministry of Finance, the Project Management Board and the servicing bank will sign the Withdrawal Request Form and send it to the financier.

3.2.3. If the financier accepts the withdrawal request, they will directly transfer the funds into the contractor's account. For JBIC projects, the payment transfer into the contractor's account will go through the servicing bank.

3.3. Direct Payment Procedure Based on Non-Cancellable Withdrawal Authorization Letter (applicable to some bilateral financing projects, usually applied to equipment purchase contracts):

On the basis of the commercial contract signed and approved according to current regulations, the Project Management Board sends the Ministry of Finance (Department of Foreign Financial Affairs) a letter requesting fund withdrawal and related documents.

Within five working days from receiving complete and valid documents, the Ministry of Finance (Department of Foreign Financial Affairs) will examine and issue a non-cancellable withdrawal authorization letter to the agency authorized by the financier to manage withdrawals for payment to the contractor/supplier/advisor according to the contract.

3.4. Guarantee Commitment Procedure

- When there is a need to withdraw funds for payment according to this procedure, the Project Management Board sends the Ministry of Finance a request for issuance of a guarantee commitment (Withdrawal Request Form), along with account statements according to the financier's model (for JBIC projects, the Withdrawal Request Form and account statements do not need to be submitted), and draft L/C (or a copy of the opened L/C).

- Within five working days from receiving complete and valid documents, the Ministry of Finance will examine and sign/co-sign the Withdrawal Request Form requesting the financier to issue a guarantee commitment and notify the servicing bank.

- For projects financed by the World Bank (WB) and Asian Development Bank (ADB), within five working days from receiving complete and valid documents, the Ministry of Finance (Department of Foreign Financial Affairs) will issue a written opinion to the Project Management Board and the servicing bank. Within two working days, based on the approval of the Ministry of Finance, the Project Management Board and the servicing bank will sign the Withdrawal Request Form requesting issuance of a guarantee commitment and send it to the financier.

3.5. Payment Procedure Using L/C Without Guarantee Commitment (applicable to certain cases where the financier authorizes a bank to manage withdrawals on their behalf and act as the seller's bank):

- When there is a need to make payments according to this procedure, the Project Management Board sends the Ministry of Finance (Department of Foreign Financial Affairs) a letter requesting issuance of an L/C and related documents.

- Within five working days from receiving complete and valid documents, the Ministry of Finance will examine and issue an opinion on the issuance of the L/C to the Project Management Board and the servicing bank, and send a non-cancellable authorization letter to the financier for payment according to the L/C.

3.6. Refund/Reimbursement Procedure

3.6.1. Withdrawal according to the refund procedure: applicable when paying for expenditures previously funded by the Borrower/Recipient from other sources of the Borrower after the Loan/Grant Agreement becomes effective.

3.6.2. Withdrawal according to the reimbursement procedure: applicable for payments for costs incurred before the Loan/Grant Agreement became effective.

3.6.3. When there is a need to withdraw funds for payment according to this procedure, the Project Management Board sends the Ministry of Finance (Department of Foreign Financial Affairs) the following documents:

- Fund withdrawal request, Withdrawal Request Form, and account statements according to the model;

- Confirmation of receipt of payment funds from the contractor/beneficiary.

- The Withdrawal Request Form must specify the name and account number of each unit that has received advances. For advances paid from the State Budget, the name and account number of the State Budget level where the advance was received must be clearly stated. The name and account number of the advance provider must be confirmed by the Expenditure Control Agency.

- A payment voucher with the original confirmation of the Expenditure Control Agency;

- In special cases, the Ministry of Finance may request additional explanatory documents;

3. 6.4. Within five working days from the date of receipt of a complete set of valid documents, the Ministry of Finance shall examine and sign/approve the Withdrawal Request Form sent to the sponsor;

- For projects financed by the World Bank (WB) and Asian Development Bank (ADB), within five working days from receiving complete and valid documents, the Ministry of Finance (Department of Foreign Financial Affairs) will issue a written opinion to the Project Management Board and the servicing bank. Within two working days, based on the approval of the Ministry of Finance, the Project Management Board and the servicing bank will sign the Withdrawal Request Form and send it to the financier.

3. 6.5. For withdrawals for repayment/reimbursement to state budgets at all levels where funds were borrowed (or from sources with budget origins), the withdrawn amount must be immediately remitted back to the budget where the funds were borrowed;

3. 7. Special Account/Advance Payment Account Procedures

3. 7.1. First withdrawal to the Special Account/Advance Payment Account

- The first withdrawal to the Special Account/Advance Payment Account shall be based on the limit (or ceiling) specified in the Loan Agreement/Aid Agreement. For ODA projects under state budget allocation, the Ministry of Finance may refuse a full 100% withdrawal based on a consideration of: actual expenditure needs for the next three months of the project, foreign interest costs, and interest generated by the servicing bank.

- To withdraw funds, the Project Management Board sends to the Ministry of Finance (Department of Foreign Financial Affairs) a letter requesting withdrawal, the Withdrawal Request Form, and accompanying statements according to the sponsor's model.

- Within five working days from the date of receiving a complete set of valid documents, based on signed international agreements, the Ministry of Finance (Department of Foreign Financial Affairs) will examine and sign/approve the Withdrawal Request Form sent to the sponsor.

- For projects financed by the World Bank (WB) and Asian Development Bank (ADB), within five working days from receiving complete and valid documents, the Ministry of Finance (Department of Foreign Financial Affairs) will issue a written opinion to the Project Management Board and the servicing bank. Within two working days, based on the approval of the Ministry of Finance, the Project Management Board and the servicing bank will sign the Withdrawal Request Form and send it to the financier.

3. 7.2. Supplementing the Special Account/Advance Payment Account To supplement the Special Account/Advance Payment Account, the Project Management Board sends the following documents to the Ministry of Finance (Department of Foreign Financial Affairs):

- A letter requesting supplementary withdrawal from the Special Account/Advance Payment Account, the Withdrawal Request Form, and accompanying statements according to the sponsor's model;

- A statement prepared by the Project Management Board detailing each expenditure from the Special Account/Advance Payment Account, itemized by: payment date, gross amount, equivalent USD amount, VND amount, USD/VND exchange rate, payment purpose, beneficiary, expenditure control area, branch of the Expenditure Control Agency, confirmation number/date of the Expenditure Control Agency for each expenditure. This statement serves as the basis for the Ministry of Finance to record income and expenditure (or reduce income/reduce expenditure if applicable) in the state budget for expenditures used for the project;

- A payment voucher with the original confirmation of the Expenditure Control Agency. Payments listed on the statement must match the confirmed amount on the payment voucher. Each payment voucher with confirmation can only be used once; for credit projects, the statement must show the amounts re-lent. The Ministry of Finance may require detailed documentation proving the re-lending (if necessary);

- A statement of the Special Account/Advance Payment Account from the servicing bank, showing all transactions on the account during the period requested for supplementary withdrawal for expenditures made;

- An agreement on debt acceptance signed between the Project Management Board and the Re-lending Agency (in the case of re-lending projects);

Within five working days from the date of receiving a complete set of valid documents, the Ministry of Finance (Department of Foreign Financial Affairs) will examine and sign/approve the Withdrawal Request Form sent to the sponsor.

- For projects financed by the World Bank (WB) and Asian Development Bank (ADB), within five working days from receiving complete and valid documents, the Ministry of Finance (Department of Foreign Financial Affairs) will issue a written opinion to the Project Management Board and the servicing bank. Within two working days, based on the approval of the Ministry of Finance, the Project Management Board and the servicing bank will sign the Withdrawal Request Form and send it to the financier.

3. 8. Withdrawal from the JBIC Project Special Account

Withdrawals from the Special Account in JBIC projects are carried out in accordance with Circular No. 129/1999/TT-BTC dated November 5, 1999, issued by the Ministry of Finance, guiding the management mechanism for loans for specialized credit programs.

B. REPORTING, AUDITING, ACCOUNTING, SETTLEMENT

I. REPORTING

1. Quarterly, the Project Management Board is responsible for preparing statements of amounts withdrawn by sponsors according to each withdrawal method, detailed by source of funds, beneficiaries, expenditure control agencies, and areas where sub-program/project accounts are registered, to be submitted to the Ministry of Finance (Department of Foreign Financial Affairs) and the Expenditure Control Agency. This report serves as the basis for accounting and reconciling income-expenditure records in the state budget for programs and projects.

2. Monthly, the Expenditure Control Agency prepares statements of amounts confirmed as eligible for payment, detailed by confirmed capital, activity, source of funds, beneficiaries, and areas receiving funding, to be submitted to the Ministry of Finance (Department of Foreign Financial Affairs, State Budget) to process accounting entries for income-expenditure in the state budget for ODA programs and projects.

II. INSPECTION

The Ministry of Finance conducts regular and surprise financial inspections of organizations and units using ODA funds, particularly inspecting
the use of Special Accounts/Advance Payment Accounts of programs and projects.

III. AUDIT

1. The Ministry of Finance will issue separate guidelines on audit frameworks for ODA programs and projects.

2. The Project Management Board selects an auditing company through bidding or direct assignment according to the provisions of the Agreement/project document and current domestic regulations. The audit framework, decision on selecting the auditing company, and audit contract must comply with the Agreement/project document and be approved according to current national regulations.

3. The audit report must be submitted to the Ministry of Finance no later than fifteen days after completion.

IV. SETTLEMENT

The Project Leader directs the Project Management Boards to prepare implementation reports on investment capital plans or administrative and public service expenditure settlements quarterly/yearly within ODA programs and projects, and submit final settlement reports on completed works according to current regulations.
quý/năm thuộc chương trình, dự án ODA và báo cáo quyết toán công trình hoàn thành theo quy định hiện hành.

PART III. IMPLEMENTATION 

This Circular shall take effect fifteen days from the date of publication in the Official Gazette. Previous provisions that are inconsistent with this Circular shall cease to be effective.