Procedures for proposing programs and projects using ODA or concessional loans in Vietnam

Procedures for proposing programs and projects using ODA or concessional loans in Vietnam (Internet image)

Procedures for proposing programs and projects using ODA or concessional loans in Vietnam

The content mentioned in Decision 1395/QD-BKHDT in 2023 announcing the amended and supplemented administrative procedures in the field of investment with official development assistance (ODA) and non-refundable aid that is not part of official development assistance under the management function of the Ministry of Planning and Investment.

Procedures for proposing programs and projects using ODA or concessional loans are as follows:

**The order of execution:

- Step 1: Ministries, central, and local agencies shall prepare proposals for programs and projects using ODA loans or foreign concessional loans and send them to the Ministry of Planning and Investment, the Ministry of Finance, and relevant agencies. according to the regulations of the Law; clearly explain the reason for the loan proposal according to the donor's binding conditions (if any).

- Step 2: The Ministry of Finance shall assume the prime responsibility for determining the incentive element, assessing the impact of the new loan on the public debt safety indicators, determining the domestic financial mechanism, and reporting to the Prime Minister according to the provisions of the Law on Public Debt Management and jointly sending it to the Ministry of Planning and Investment.

- Step 3: The Ministry of Planning and Investment sends a document to collect opinions from relevant agencies on the program/project proposal. On the basis of summarizing the opinions of the Ministry of Finance according to the provisions of Step 2 above and the opinions of relevant agencies, the Ministry of Planning and Investment evaluates the necessity of the program or project, the preliminary assessment of feasibility and socio-economic efficiency, the preliminary environmental impacts (if any) and impacts of the program or project on the medium-term public investment plan. It then selects proposals of suitable programs and projects and submits them to the Prime Minister for consideration and decision.

- Step 4: The Prime Minister considers and approves the Program/Project Proposal with the following contents: name of the program/project; name of sponsor; name of foreign co-sponsor (if any); name of the governing body; objectives and expected main results; total expected investment and capital structure; domestic financial mechanism; re-lending method.

Step 5: The Ministry of Planning and Investment officially informs the donor of the Prime Minister's decision approving the Program/Project Proposal.

For the adjustment of Program/Project Proposal:

During the process of formulating, appraising, and deciding on investment policies, in case there is a change compared to the main contents of the project proposal approved by the Prime Minister, the governing body shall carry out the order and procedures for adjusting the Program/Project Proposal as follows:

- In case of adjustment of total investment due to exchange rate changes; reduce ODA and concessional loans and do not change other main contents of the Program/Project Proposal specified at Point d, Clause 2, Article 13 of Decree 114/2021/ND-CP: The governing body is not required to make adjustments to the Program/Project Proposal;

- In case the main contents of the program/project proposal are changed as prescribed at Point d Clause 2 of this Article and do not increase ODA or concessional loan capital: The governing body shall send a document and report on the reasons for the adjustment to the Ministry of Planning and Investment to summarize the opinions of the Ministry of Finance and relevant agencies and submit it to the Prime Minister for consideration and decision;

- In case of an increase in ODA or concessional loans: the governing body shall develop a proposal for a program or project and implement the order and procedures in Clause 2, Article 13 of Decree 114/2021/ND-CP in the dossier submitted to the competent authority to clarify the reasons and contents of the adjustment of the program/project proposal;

- For national target programs, national important projects, public investment programs; Group A investment programs and projects; Programs and projects under the approval authority of the Prime Minister: No adjustment is required to the Program/Project Proposal as prescribed in Clause 4, Article 1 of Decree 20/2023/ND-CP dated May 4 2023.

- Method of implementation: Directly at the headquarters of state administrative agencies; Through the postal system.

Profile composition:

+ Proposing programs and projects according to the form in Appendix II to Decree 20/2023/ND-CP dated May 4, 2023; a document of the governing body requesting submission to the competent authority for approval of the program/project proposal; other relevant documents (if any).

+ Proposing the program or project with the certification stamp of the governing body.

+ The number of dossiers sent to the Ministry of Planning and Investment is 08 sets (including 01 original set).

+ The number of dossiers to be sent to the Ministry of Finance is 03 sets (including 01 original dossier);

- Number of records:

+ The number of dossiers sent to the Ministry of Planning and Investment is 08 sets (including 01 original set).

+ The number of dossiers to be sent to the Ministry of Finance is 03 sets (including 01 original dossier);

- Time limit for settlement: The time limit for considering and submitting to the Prime Minister program or project proposals from the date on which the Ministry of Planning and Investment and the Ministry of Finance receive complete and valid dossiers is no more than 45 days.

See more administrative procedures in Decision 1395/QD-BKHDT in 2023.

Duong Chau Thanh

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