Vietnam: Procedures for preparing, selecting and approving the proposal of a program/project funded by ODA or concessional loan

Specifically, Decree No. 132/2018/ND-CP of Vietnam’s Government stipulates that the following entities shall have the power to approve proposed programs and projects:

- The Prime Minister is entitled to approve programs and projects funded by ODA loans and concessional loans;

- The governing body of the program/project funded by an ODA grant shall prepare a report on proposal of investment guidelines instead of a project proposal.

Moreover, Decree No. 132/2018/ND-CP also specifies criteria for selecting a program/project as follows:

In order to be selected, a program/project must:

- be suitable for socio-economic development strategies or master plans, public debt safety and solvency; policies on attraction of ODA and concessional loan; policies on provision of ODA and concessional loans by foreign sponsors;

- ensure effectiveness, socio-economic and environmental sustainability;

- be able to balance ODA, concessional loans and reciprocal capital;

- not coincide with another program/project approved by a competent authority.

Selection and approval of programs and projects by the Prime Minister shall be carried out as follows:

- The governing body shall send a written proposal to the Ministry of Planning and Investment;

- The Ministry of Planning and Investment shall take charge and cooperate with relevant authorities in assessing the necessity, feasibility socio-economic effect and environmental impacts (if any) of the program/project with account taken of the mid-term public investment plan, and submit the program/project to the Prime Minister for approval; The Ministry of Finance shall determine the grant element and impact of the ODA loan or concessional loan to public debt safety, determine the domestic financial mechanism and submit a report to the Prime Minister;

- The Prime Minister shall consider approving the proposed program/project.

More details can be found in Decree No. 132/2018/ND-CP of Vietnam’s Government, which takes effect from October 01, 2018.

-Thao Uyen-

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