On October 01, 2018, the Government of Vietnam issued Decree No. 132/2018/ND-CP, which regulates new points regarding the 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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