Decision No. 784/QD-BXD on approving the technical assistance project document "Wastewater and Solid Waste Management in Vietnamese Urban Areas - Phase 3" funded by无偿的德国政府援助

Pursuant to …;

Regarding the approval of the project document for the Technical Support Project "Wastewater and Solid Waste Management in Vietnamese Urban Areas - Phase 3", funded by无偿的德国政府援助

________

THE MINISTER OF CONSTRUCTION

Pursuant to Decree No. 17/2008/NĐ-CP dated February 4, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Construction;

Pursuant to Decree No. 131/2006/NĐ-CP dated November 9, 2006, issued by the Government on the regulations governing the management and utilization of official development assistance;

Pursuant to Circular No. 319/TTg-QHQT dated March 9, 2012, issued by the Prime Minister approving the list of projects "Wastewater and Solid Waste Management in Vietnamese Urban Areas - Phase 3", funded by无偿的德国政府援助, and simultaneously assigning the Ministry of Construction to review and approve the project document (as per Circular No. 859/BKHĐT-KTĐN dated February 22, 2012, issued by the Ministry of Planning and Investment);

Pursuant to Circular No. 04/2007/TT-BKH dated July 30, 2007, issued by the Ministry of Planning and Investment guiding the implementation of Decree No. 131/2006/NĐ-CP dated November 9, 2006, issued by the Government on the regulations governing the management and utilization of official development assistance;

Pursuant to the Report on the Results of the Review of the Project Document for Phase 3 dated August 17, 2012, by the Department of Planning and Finance;

Considering the proposal of the Director of the Infrastructure Technology Administration at Circular No. 190/HTKT-CTN dated August 7, 2012, regarding the approval of the Project Document;

At the proposal of the Director of the Department of Planning and Finance,

DECISION:

Article 1. Approves the Project Document for the Technical Support Project "Wastewater and Solid Waste Management in Vietnamese Urban Areas - Phase 3", funded by无偿的德国政府援助, with the main contents as follows:

1. Project Name: Wastewater and Solid Waste Management in Vietnamese Urban Areas - Phase 3.

2. Donor: The German Government.

3. Managing Authority: Ministry of Construction.

4. Implementing Agency/Project Owner: Infrastructure Technology Administration - Ministry of Construction.

5. Project Implementation Area: Hanoi (Ministry of Construction), Bac Ninh, Hai Duong, Nghe An, Can Tho, Soc Trang, Tra Vinh, Lang Son, Hoa Binh, Son La.

6. Project Implementation Period: 2012-2014.

7. Project Objectives:

- General Objective: The general objective of the Financial and Technical Cooperation Program in wastewater and solid waste management in urban areas in Vietnam is to improve sustainable environmental sanitation conditions and support the updating of sector policies based on lessons learned from participating localities in the Program.

- Specific Objectives: The specific objective of the Technical Support Project Phase 3 is to enhance the effective management capacity of the Ministry of Construction, companies, and urban authorities in managing existing assets of wastewater collection and treatment systems, solid waste, and assets formed by the Financial Support Project, to provide sustainable services.

8. Main Results of the Project:

* The Project is divided into three main components:

- Component 1: Consulting for the Ministry of Construction in the field of wastewater and solid waste management.

- Component 2: Consulting for urban authorities on wastewater and solid waste management.

- Component 3: Consulting for units directly managing and operating wastewater and solid waste.

* Main results of the Project Phase 3:

- Lessons learned about the sustainable provision of wastewater collection and solid waste disposal services in provincial capital cities under the Program and other supported drainage and sanitation programs are summarized and used to develop and update appropriate regulations and standards for the drainage and sanitation sector.

- Enhancing the professional management capacity of state officials in the Ministry of Construction, related agencies, and urban authorities in participating provinces/cities through regular training, on-the-job training, and study tours both domestically and internationally.

- Units managing and operating drainage system assets, wastewater treatment, and solid waste will establish and implement corporate development plans (CDPs); effectively manage and operate existing assets of drainage systems, wastewater treatment, and solid waste, and assets supplemented by the Financial Support Project; provide sustainable services based on transitioning to a market economy.

- Units managing and operating drainage system assets, wastewater treatment, and solid waste will have regular revenue based on service fees, moving towards service prices that cover operational costs, maintenance, and depreciation for short-cycle assets such as electromechanical equipment.

- Customers within the project area recognize their rights and obligations related to drainage, wastewater treatment, and solid waste services.

- Community awareness of environmental protection is enhanced, improved, and gradually changes individual behavior in the field of wastewater collection and solid waste.

- Enhancing the management capacity of wastewater discharge points and waste disposal sites of the Provincial Departments of Natural Resources and Environment in the project area.

- Urban authorities recognize their role as "owners" of the drainage system assets, wastewater treatment, and solid waste, properly exercising their rights and responsibilities as contracting parties with the management and operation units.

9. Total Cost of the Project:

The total cost of the Technical Support Project Phase 3 is: 4,380,000 Euros; Of which:

- Contribution of the German Government (ODA) from non-refundable aid: 4,000,000 Euros.

- Contribution of Vietnam: 380,000 Euros (Of which: Ministry of Construction: 200,000 Euros and participating provinces contribute 180,000 Euros).

10. Sources and Financial Mechanism:

- ODA Funds: Non-refundable aid from the German Government; this fund is directly managed and disbursed by GIZ for consulting and project implementation activities based on plans and expenditure items agreed upon by Germany and the Ministry of Construction.

- Counterpart Funds: The Ministry of Construction and participating provinces will allocate these funds in the annual budget according to the State Budget Law.

11. Project Implementation Management Organization:

- The Infrastructure Technology Administration - Ministry of Construction will strengthen the personnel of the Project Management Board for Phase 2 to continue implementing Phase 3 of the project.

- Provinces: Provinces that participated in Phase 2 (Bac Ninh, Hai Duong, Nghe An, Can Tho, Soc Trang, Tra Vinh) will strengthen the personnel of the Project Management Boards established in Phase 2 to continue implementing Phase 3 of the project. New provinces joining Phase 3 (Son La, Lang Son, Hoa Binh) will establish Project Management Boards to organize the management and implementation of the project.

Article 2. This Decision takes effect from the date of issuance.

Article 3. The Director of the Technical Infrastructure Department, the Chairpersons of the People's Committees of Bac Ninh, Hai Duong, Nghe An, Soc Trang, Tra Vinh, Son La, Lang Son, Hoa Binh, Can Tho; the Heads of the Functional Departments under the Ministry of Construction: Planning-Finance, International Cooperation, Organization-Human Resources, and the Heads of related units shall be responsible for implementing this Decision.