What are regulations on counterpart funds for preparing and implementing the program/project financed by ODA and concessional loans in Vietnam?

What are regulations on counterpart funds for preparing and implementing the program/project financed by ODA and concessional loans in Vietnam?

Pursuant to Clause 1, Article 44 of the Decree 114/2021/ND-CP stipulating counterpart funds for preparing and implementing the program/project financed by ODA and concessional loans in Vietnam as follows: 

1. The counterpart fund must be sufficiently provided in a timely manner and according to the set schedule to prepare and implement the program/project (including prior activities, if any). The funding sources, level, and mechanism of the counterpart fund must be suitable for the expenditures of the program/project agreed between the managing agency and the foreign donor, and specified in the feasibility study report and program/project document as appraised and approved by a competent authority.

What shall be covered by counterpart funds for the program/project financed by ODA and concessional loans in Vietnam?

Pursuant to Clause 2, Article 44 of the Decree 114/2021/ND-CP stipulating as follows: 

2. Counterpart funds shall cover:

a) Operating costs of the project management unit (e.g. salaries, bonuses, allowances, offices, work equipment, administrative costs);

b) Costs of design appraisal, examination of overall budget estimates, completion of procedures for investment, construction and other necessary administrative procedures;

c) Costs of contractor selection;

d) Costs of workshops, conferences, training in management and implementation of the program/project;

dd) Costs of receiving and imparting international technologies, experience and skills;

e) Costs of communication, advertising and community activities;

g) Taxes, customs fees, insurance premiums according to applicable regulations;

h) Interest expenses, deposits, commitment fees and other relevant fees payable to the foreign donor;

i) Costs of receiving and transporting equipment domestically (if any);

k) Costs of account finalization and verification of final accounts;

l) Compensation, support and resettlement costs;

m) Costs of some basic activities of the program/project (e.g. survey, technical design, construction of certain items, procurement of certain equipment);

n) Costs of monitoring and evaluation; quality assurance and control, acceptance, hand-over and account finalization of the program/project;

o) Contingencies and other reasonable expenses.

Best regards!