DECREE

ON MANAGEMENT AND UTILIZATION OF OFFICIAL DEVELOPMENT AIDS RESOURCES

THE GOVERNMENT

Pursuant to the Law on Organization of Government dated 30 September 1992;
Pursuant to the Ordinance on signing and implementing the international Treaties of S.R. of Vietnam dated 7 October 1989;
To manage solely the Official Development Aids resources;
On the proposals of the Minister, Chairman of the State Planning Committee, the Minister of Finance, Justice and the Government of the State Bank of Vietnam

DECREES

Article 1

To promulgate hereby in conjunction with this Decree the Regulation on Management and Utilization of Official Development  Aids (ODA) resources.

Article 2

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The Minister, Chairman of the State Planning Committee will be responsible for providing guidance on the implementation of this Regulation.

Article 3

The Ministers, the head of ministry ranking bodies, the heads of governmental offices, the chairmen of the people's committee of the provinces and cities under central authority and the heads of the central offices of the Mass Organizations shall be responsible for the implementation of this Degree.

FOR THE GOVERNMENT
VICE PRIME MINISTER




Phan Van Khai

REGULATION

ON MANAGEMENT AND UTILIZATION OF OFFICIAL DEVELOPMENT AIDS

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Chapter 1

GENERAL PROVISIONS

Article 1

The Government of the Socialist Republic of Vietnam welcomes all foreign  governments and organizations to support Vietnam by providing Official Development Aids on the principles of respecting its independence and sovereignty.

The Government of Vietnam undertakes to utilize Official Development Aids in the most effective way, for the right purposes and in compliance with the international treaties on Official Development Aids that have been signed between Vietnam's government and the foreign governments and organizations.

Article 2

The "Official Development Aids" (hereafter referred to as ODA) in this Regulation mean a form of development cooperation between Vietnam's government and foreign governments, multi-government international organizations, Non- Governmental Organizations.(hereafter referred to as foreign party).

Article 3

ODA are non-refundable assistance and credits with privileged conditions in respect to interest and term of payment, ODA include the following forms:

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+ ODA program

+ ODA project

Article 4

ODA for Vietnam is one of important budgetary sources of the State and should be used for prior targets of socio- economic building and development.

a/ A priority for having non - refundable ODA will be given to programs and projects in the following fields:

+ Health care, population control and family planning

+ Education and training

+ Social Affairs (doing away with starvation and poverty, rural and highlands development, domestic water supply, ect.)

+ Studying the development programs and projects (overview, planning, feasibility reports etc.)

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+ Supporting the budgets

+ Supporting the scientific and technological research activities

+ Supporting the production and business operations in some specific cases.

b/ A priority for getting ODA loans will be given to projects and programs for constructing or upgrading the socio-economic infrastructure in the following fields:

+ Energy

+ Transport and Communication

+ Agriculture

+ Water resources development

+ Information and Telecommunication

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+ Some others, including specific production projects.

In some concrete cases, the combination of non- refundable ODA and loans shall be possible.

Article 5

a/ The government will solely manage ODA. The management includes : To lay down the guidelines and orientations attracting and canvassing foreign parties. To negotiate and sign international treaties. To conduct supervising and evaluating activities during implementation The State Planning Committee, the Ministries of  Finance, Foreign Affairs, the State Bank of Vietnam and the Government's office shall assist the Prime Minister in macro management. The State Planning Committee will be the key body functioning the dispatch, management and utilization  of ODA resources.

b/ The Ministries and ministry ranking bodies, government offices, the People's committee of provinces and cities under central authority and the central offices of mass organizations shall be responsible to the government for effective management and utilization of ODA resources offered to the programs and projects in their respective sphere of responsibility.

c/ The ODA program  directors, ODA project managers and investors shall be responsible for the implementation of the state provisions on the ODA management and utilization as well as the  terms of international treaty relevant to the received ODA.

Chapter II

SIGNING THE ODA INTERNATIONAL TREATIES.

Article 6

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The State Planning Committee will co-ordinate the ministries, ministry ranking bodies and government offices concerned to set forth the ODA canvassing guidelines and orientations, the proposed ODA planning and to draw up the list of privileged ODA programs and projects to be submit to the government for approval.

The State Planning Committee will cooperate with the Ministry of Foreign Affairs and the related bodies in preparation and organization of ODA canvassing campaign.

Article 7

Based on approved ODA planning and the list of privileged ODA programs and projects, the State Planning Committee and the Ministry of Finance should come to an agreement on the limit and conditions of ODA loan and payment to prepare the contents to be negotiated with foreign partner and submit them to the Prime Minister for approval.

After approving, the Prime Minister will assign the State Planing Committee or a state body to hold talks with foreign party. Before holding talk, the assigned body must agree with the State Planning Committee on the negotiation of contents and with  the Ministry of Finance on the limit and conditions of ODA loan and  payment (in case of ODA credits).

Any amendment of the approved contents arises from the talks must be submitted to the Prime Minister for his consideration and decision, it would consult the State Planning Committee.

If the negotiating body was other than the State Planning Committee, before referring the amendments to the Prime Minister, it would consult the State Planning Committee.

Article 8

After the end of the talk, the authorized to hold talks body will refer the results of the talk, the proposed agreement to be signed to the Prime Minister and nominate a candidate who will be on the government to sign international treaty with the foreign party to the submitted document official comments in will written form of the State Planning Committee, the Ministry of Foreign Affairs, Justice, Finance must be attached.

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The procedure of signing, submitting the origin of the ODA international treaty to the  Government for approval is in compliance with the terms stipulated in the Article 6 (item 3) the article 7 and 8 of Decree No 182/HDBT dated 28 May 1992 of the Government.

Article 10

In case the ODA international treaty is required to be signed by the name of the State of Vietnam , the proposing body must comply with the stipulation of Article 7,8 and 9 of this Regulation so that the Prime Minister can submit the matter to the President of the Vietnam for his consideration and decision.

Article 11

In case if there were in the ODA  international treaty the clauses which are in contrary to the law of Vietnam, the proposing body would have to cooperate with the Ministries of Foreign Affairs and Justice to make a report then send it to the Prime Minister, the last will submit the matter to the President of the Vietnam for his consideration and decision.

Chapter III

ODA MANAGEMENT

Article 12

ODA resources in form of money, goods, machinery, equipment, construction works must be managed in compliance with the system of the State budgetary management.

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Article 13

ODA management in capital construction must be in compliance with the above mentioned regulation and with in effect at present state system of investment management in capital construction. Any capital construction work must have, as stipulated, its completed legal file.

Construction schedule must be described and balanced in annual investment plan for capital construction of the state, the Ministry, branch and locality as well. If the foreign regulation on funds use, applied to some concrete programs or projects, are not fit for Vietnam's regulation in effect at present, the related ministries and branches must submit the matter to the Government for decision.

Article 14

The non-refundable ODA items may be re-allocated by the Government in form of the State budgetary financing of capital construction or in form of the state investment credits. The Government allocates the non - refundable ODA items by the state budgetary financing of capital construction, display in the annual investment plan for capital construction as the investment for  building socio-economic infrastructures that are insolvent projects.

Through some banks, appointed by the Government, ODA items for solvent programs and projects shall be used for re- crediting. The State Planning Committee, subject to the specific characteristics of each borrowed fund and assistance, after consulting the Ministry of Finance and the State Bank of Vietnam on the re-crediting plan, will submit it to the Prime Minister for approval.

The project implementing agency using the ODA items re-credited by the state is responsible for repayment the loan in accordance with the present regulations.

Article 15

The State Planning Committee, in cooperation with the state bodies concerned, will distribute ODA resources to the programs and projects which are suitable for the nature and particularities of each sponsorship to ensure maximum efficiency of resources use.

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ODA programs and projects must be implemented by international competitive tender. Only in some special cases, the decision will be subject to the Prime Minister. The international tendering for implementation of ODA programs and projects will be performed in accordance with the regulation on international bid stipulated by the Government.

Article 17

The heads of Ministries, branches, localities and the central offices of mass organizations shall be responsible to the Government for controlling, supervising the reception and utilization of ODA resources of programs and projects in their respective sphere of management.

The State Planning Committee, the Ministry of Finance, the State Bank of Vietnam, the Ministry of Foreign Affairs and Government's office shall be responsible for guiding and helping the ministries, branches and localities in the inspection and supervision, at the same time, according to their respective functions, shall directly carry out periodical and sudden inspection and  supervision of ODA management and utilization of the ministries, branches and localities concerned.

The inspection of the ODA capital construction works must be in compliance with the provisions on management of capital construction valid at present.

Article 18

Every quarter and every year ODA project managers and ODA programs directors have to make reports on ODA reception and utilization to be submitted to the related managerial bodies.

After the termination of a project or program, project manager or program director has to send to the body in charge, the State Planning Committee, the Ministry of Finance, the State Bank of Vietnam and the Government's office a report on the final results of ODA reception and utilization, to which financial report should be attached.

The management of non-governmental sources will continue complying with the regulations on assisting relationship with non-governmental organizations, issued in conjunction with decision No 80/CT dated 28 March 1991 of the Chairman of the Council of Ministers ( Now- the Prime Minister)