Vietnam: Procedures for proposing a program/project funded by ODA

According to Circular No. 12/2016/TT-BKHDT of the Ministry of Planning and Investment of Vietnam, the governing body shall instruct an affiliate to prepare the proposal for a program/project funded by ODA or concessional loan (hereinafter referred to as “program/project proposal”) on the basis of:

- The need for ODA or concessional loan to implement 5-year and annual socio-economic development plans of the governing body;

- Policies and fields that need funding from ODA or concessional loans prescribed by law, cooperation orientation and fields for which provision of ODA and concessional loans by foreign sponsors is prioritized according to the Ministry of Planning and Investment.

Besides, the program/project proposal shall be prepared in accordance with regulations, in which the following contents shall be specified:

- “Intended foreign sponsor”: If there is an intended foreign sponsor, the governing body shall provide information, documents and evidence (if any) about the proposed program/project such as a memorandum between the governing body and such foreign sponsor, relevant reports or studies;

- “Estimated capital and duration”: The total capital of the proposed program/project (ODA or concessional loan and reciprocal capital) shall be estimated according to general norms or similar programs/projects that were executed or other Vietnamese and foreign documents.

- “Proposed domestic financial mechanism and basis thereof”: Allocation of ODA or concessional loan from state budget; on-lending of ODA or concessional loan at a specific rate.

More details can be found in Circular No. 12/2016/TT-BKHDT of the Ministry of Planning and Investment of Vietnam, which takes effect from September 22, 2016.

-Thao Uyen-

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