The Government issue Decree on management and use of official development assistance (ODA) and concessional loans of foreign donors.This Decree prescribes the management and use of official development assistance (ODA) and concessional loans provided by foreign governments, international organizations and inter-governmental or inter-state organizations or governmental organizations authorized by foreign governments (below collectively referred to as foreign donors) to the State or the Government of the Socialist Republic of Vietnam.
According to the Decree, priority fields for ODA and concessional loan use are listed as follow:
1. Support for implementation of socio-economic infrastructure projects.
2. Support for research and formulation of socio-economic development policies and strengthening of state management institutions.
3. Support for human resources development; scientific research and technology development.
4. Support for environmental protection, climate change response and green growth.
5. Use as investment funds of the State for the implementation of projects in the form of public-private partnership (PPP).
6. Other priority fields as decided by the Prime Minister.
The process of management and use of ODA or concessional loan for a program or project consists of: Mobilizing ODA or concessional loan; Formulating and appraising, and deciding on investment policy on, a program or project; Formulating and appraising, and deciding on investment in, a program or project; Concluding a treaty or an agreement on ODA or concessional loan; Managing the program or project implementation; Completing and handing over the program or project implementation result.
A decision on investment policy must have the following principal details: Names of the program or project and foreign donor or co-donors; Name of the managing agency; Main objectives and results of the program or project; The period and place of implementation of the program or project; The funding limit of the program or project (non-refundable ODA aid, ODA loan, concessional loan and counterpart fund); Domestic financial mechanism and onlending method for the program or project; Activities to be carried out in advance (if any).
After obtaining the investment policy decision, the managing agency shall:
+ Issue a decision on project owner and assign the project owner to work with the foreign donor in preparing the program or project document.
+ Allocate resources according to its competence for preparation and appraisal of the program or project document.
+ Organize appraisal and approval of the program or project document and decide on investment in the program or project according to its competence; submit to competent authorities for appraisal and approval the program or project document and decision on investment in the program or project.
The Prime Minister shall approve documents of, and decide on investment in:
a/ National target programs and important national projects on which investment policy has been decided by the National Assembly;
b/ Target programs on which investment policy has been decided by the Government;
c/ Programs associated with policy frameworks; programs and projects in the fields of security, national defense and religion on which investment policy has been decided.
Heads of managing agencies shall approve documents of, and decide on investment in, programs or projects other than those specified in Clause 1 of this Article.
For investment projects without construction components: The content of appraisal of the project document includes:
a/ Assessment of the necessity of the project: conformity with the investment policy (background and necessity, objectives of the project in comparison with requirements on policy renewal, improvement of management and administration mechanisms, demand for human capacity development; transfer of technology, knowledge, managerial and administration skills at national, sectoral and local levels; end products of the project; beneficiaries; structure of allocation of the project budget);
b/ Assessment of factors ensuring the feasibility of the project; input factors; implementation period; human resources participating in the project implementation; possible risks and preventive measures;
c/ Assessment of factors ensuring the efficiency and sustainability of the project: ability to balance funding sources (ODA loan, concessional loan, counterpart fund); efficiency and impact; ability to maintain and develop the project results with respect to the country, managing agency and project owner;
d/ Overall assessment of the content of the project document in comparison to the content of the investment policy decision and relevant proposals.
The time limit for appraisal of program or project documents shall be counted from the date of receiving a complete and valid dossier:
a/ For national target programs, national important projects and target programs: 90 days;
b/ For group-A investment projects: 40 days;
c/ For group-B investment projects: 30 days;
d. For group-C investment projects, technical assistance projects and other programs and projects: 20 days.
Within 10 working days after receiving the appraisal report of the agency or unit assigned with appraisal tasks, competent authorities shall consider and approve the program or project document and decide on investment in the program or project.
Within 5 working days after a competent authority issues the program or project investment decision, the managing agency shall notify the foreign donor and project owner of the decision and concurrently send the decision (original or notarized copy) enclosed with the approved program or project document bearing the managing agency’s seals on the edges of every two adjoining pages to the Ministry of Planning and Investment, the Ministry of Finance and related agencies for supervision and coordinated implementation.
Contents of state management of ODA and concessional loans: Promulgating, and organizing the implementation of, legal documents on ODA and concessional loan management and use Formulating, and organizing the implementation of, schemes on ODA and concessional loan attraction, management and use for each period to support the implementation of 5-year socio-economic development plans; solutions and policies for management and efficient use of these funding sources. Providing information on ODA and concessional loan management and use.
The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with related agencies in, promulgating a circular guiding the implementation of this Decree. The Ministry of Finance shall promulgate according to its competence documents guiding the implementation of this Decree regarding financial management and policies on taxes and charges for ODA and concessional loans.
Programs and projects approved by competent authorities and included in the aid list before this Decree takes effect may be further implemented in accordance with the Government’s Decree No. 38/2013/ND-CP of April 23, 2013, on management and use of ODA and concessional loans of donors.
This Decree takes effect on May 2, 2016, and replaces the Government’s Decree No. 38/2013/ND-CP of April 23, 2013, on management and use of ODA and concessional loans of donors. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related organizations and individuals shall implement this Decree.