Chương V Nghị định 114/2021/NĐ-CP: Quản lý thực hiện chương trình, dự án, phi dự án

Chapter V

MANAGEMENT OF THE PROGRAM/PROJECT/NON-PROJECT ASSISTANCE

Article 34. Arrangements for management over programs/projects/non-project assistance

Depending on the scale, nature, and conditions, capacity for program/project management, regulations on management of ODA and concessional loans of the foreign donor, the investment decision maker shall decide on any of the following arrangements for program/project management:

1. For Investment programs/projects: Comply with the law on public investment management and construction investment management.

2. For technical assistance projects and non-project assistance funded by ODA grants:

a) The managing agency shall directly manage the project or assign an affiliated unit to act as the project owner and administer the implementation of the program, project or non-project assistance. For technical assistance projects and non-project assistance funded by an ODA grant worth USD 200,000 or less, the managing agency and project owner is not required to establish a Project Management Unit but may use their own human resource to manage and administer project and non-project assistance implementation;

b) Foreign donors directly manage the entire program/project or non-project assistance: Where the program or project documents or specific international treaties/agreements on ODA and concessional loans stipulate that foreign donors directly manage the entire programs/projects or non-project assistance, the head of the managing agency or project owner shall assign their subordinate units to coordinate with foreign donors in monitoring the progress and quality, leveraging and using the outputs of the programs/projects or non-project assistance;

c) Foreign donors directly manage a part of the programs/projects or non-project assistance: Where the program or project documents or specific international treaties/agreements on ODA and concessional loans stipulate that foreign donors directly manage a part of the programs/projects or non-project assistance and the Vietnamese side manage the rest, the managing agency or project owner shall decide to establish a Project Management Unit to manage the work undertaken by the Vietnamese side in accordance with Vietnam's applicable regulations and commitments with foreign donors.

3. For other programs and projects, the managing agency shall decide to apply one of these following forms:

a) Establishing a new Project Management Unit;

b) Using the existing Project Management Unit to manage new programs and projects: The managing agency and project owner must issue a decision on supplementing management task in relation to new programs and projects for the existing Project Management Unit;

c) The project owners manage the programs and projects themselves.

4. Establishing a Project Management Unit to manage and implement a large-scale program/project, involving high technology application or related to national defense and security; a program/project with special funding sources or management model that needs a Project Management Unit, a program/project that is required to establish a Project Management Unit under an international treaty or agreement on ODA and concessional loan.

5. Project owners shall employ capable personnel to manage and implement small-scale projects and projects participated by the community.

6. Hire consultants to manage a part of or the entire implementation of programs and projects.

Article 35. Project management

1. Within 30 days after the issuance of the investment decision or the decision on approval of the project document, the head of the managing agency shall issue a decision to establish a Project Management Unit by using the sample given in Appendix VII hereto. In cases where the project owner has full legal personality, the head of the managing agency may authorize the project owner to issue a decision on the establishment of the Project Management Unit (except for specialized Project Management Units, regional Project Management Units established under the regulations on management of construction investment).

2. Where a new Project Management Unit is established under the provisions of point a of clause 3 of Article 34 in this Decree, the decision to establish a project management unit shall be enclosed with documents specifying the organizational structure, functions, tasks, and entitlements of the project management unit; and job description of some key positions thereof.

3. In case of using the existing Project Management Unit for the new programs and projects according to the provisions of point b of clause 3 of Article 34 in this Decree: Pursuant to the decision on the establishment of the Project Management Unit, the head of the managing agency or the project owners shall complement and adjust the functions and tasks of the existing Project Management Unit, open new account and obtain new seal to manage new programs or projects.

4. Where the project owners manage the programs/projects on their own account as prescribed in point c of clause 3 of Article 34 herein, on the basis of the decision of the head of the managing agency to assign the project owner to manage the project implementation, within 30 days since the investment decision is issued, the project owner shall issue the decision to assign additional tasks to the subordinate unit, individual to perform the management activities in accordance with the existing regulatory provisions. Accordingly, there must be at least an officer in charge of management and an officer in charge of financial issues, who work on a part-time or full-time basis and must have professional skills and qualifications suitable for the position held.

5. Within 15 days after the decision to establish the project management unit is issued, the head of the managing agency or the project owner having legal personality shall be authorized by the head of the managing agency to issue the regulations on the organization and operation of the project management unit. Where an international treaty or agreement on ODA and concessional loan for the program/project provides for organizational structure, duties and entitlements of the project management unit, such provisions must be fully elaborated and reflected in the regulations on organization and operation of the project management unit.

Article 36. Responsibilities and authority of the managing agency in program/project management and implementation

1. The decision on organizational structure for the management and implementation of the program/project, including: project owner; steering committee of the program and project (if necessary).

2. Approve the 05-year implementation plan for the program/project; compile and approval annual plans for program/project implementation.

3. Direct the procurement process in accordance with applicable regulatory provisions, international treaties, agreements on ODA and concessional loans on procurement.

4. Organize the monitoring and inspection of the plan implementation; supervise and evaluate the performance of implementation and disbursement of funds; ensure progress, quality and achievement of set objectives in accordance with regulatory provisions on public investment and regulations on monitoring and evaluation under this Decree.

5. Bear the additional costs incurred because of human errors, wastefulness, corruption and misconducts in management and use of ODA and concessional loans under its management in accordance with regulations of law on public investment.

6. Perform other duties and entitlements in accordance with law, specific international treaties and agreements on ODA and concessional loans for programs/projects.

Article 37. Responsibilities and authority of project owners in program/project management and implementation

1. Organize the structure for program/project management and implementation according to the decision of the managing agency.

2. Take responsibility for effective management and use of ODA, concessional loans and counterpart funds of programs/projects from preparation and implementation through operation phase.

3. Disburse funds, manage funds and assets of the programs/projects in case where the project owners manage and implement the programs/projects by themselves.

4. Formulate and submit master plans and annual plans for program/project implementation.

5. Formulate quarterly operation plans serving the management, monitoring and evaluation of the program/project.

6. Carry out the procurement process in accordance with applicable regulatory provisions on procurement, specific international treaties on ODA and concessional loans.

7. Negotiate, conclude and supervise the implementation of contracts, and resolve difficulties within their competence.

8. Cooperate with the local government in compensation for site clearance and resettlement in accordance with law and the specific international treaty or agreement on ODA or concessional loan (for construction projects).

9. Organize the monitoring and assessment of the program/project in accordance with law on supervision and assessment of public investment and regulations of this Decree, ensuring progress, quality and achievement of set objectives.

10. Perform accounting, account finalization and audit of the program/project in accordance with regulatory provisions; make reports on closing and account finalization of the program/project; audit and hand-over assets and documents of the program/project, and ensure compliance with regulations on project closing of the specific international treaty or agreement on ODA and concessional loans.

11. Take full responsibility for every loss, wastefulness, corruption, and misconduct that occurs during the implementation of the program/project if they cause economic, social, environmental damage, or affect the overall effectiveness of the program/project.

12. Regarding a program/project eligible for full or partial on-lending from the state budget, the project owner shall repay the on-lent amount in full and on time in accordance with on-lending terms agreed with the Ministry of Finance or the on-lending agency.

13. Perform other duties and entitlements in accordance with law, specific international treaties and agreements on ODA and concessional loans for the programs/projects.

14. Take responsibility to notify the Ministry of Finance of the designated service banks for its fund withdrawal and disbursement.

15. Bear responsibility before law and the managing agency within their rights and obligations prescribed in this Decree and other regulatory provisions.

Article 38. Responsibilities and entitlements of project management units in program/project management and implementation

1. Responsibilities and entitlements of the project management unit are assigned by the project owner under the decision on project management unit establishment. The project owner may authorize the project management unit to issue decisions or sign documents within the project owner’s competence in the process of program/project management and implementation. The authorization must be specified in the decision to establish project management unit or made into a specific authorization letter by the project owner.

2. The project management unit may be assigned to manage multiple programs/projects as long as it is accepted by the project owner and ensure that: Each program/project is not interrupted and is managed and accounted for in accordance with applicable regulatory provisions. If the project management unit is not capable of some management and supervision tasks, they may hire consultants to perform such tasks provided that it is accepted by the project owner.

3. The project management unit shall perform the tasks assigned by the project owner and be accountable to the project owner, including:

a) Formulate and submit master plans and annual plans for program/project implementation;

b) Prepare and implement the program/project;

c) Carry out activities related to procurement, contract management and compensation for site clearance and resettlement;

d) Disburse funds, manage funds and assets of the program/project;

dd) Monitor and evaluate the implementation of the program/project;

e) Prepare the acceptance and transfer of the completed program/project; finish payment, account finalization and audit work, transfer assets of the program/project; prepare the completion report using the sample given in Appendix X hereto and account finalization report of the program/project; follow regulations on project closing in the applicable international treaty or agreement on ODA and concessional loan;

g) Perform other tasks assigned by the project owner within the framework of the program/project.

4. Perform other duties and entitlements in accordance with law, specific international treaties and agreements on ODA and concessional loans for the programs/projects.

5. Bear responsibility before law and the managing agency within their rights and obligations prescribed in this Decree and other regulatory provisions.

Article 39. Organization and operation regulations of the project management unit

1. Within 15 days from the day on which the competent authority issues the decision to establish the project management unit, the Director of the project management unit shall submit organization and operation regulations to the managing agency or the project owner authorized by the managing agency referred to in clause 1 of Article 35 for approval according to the sample given in Appendix VIII hereto. The managing agency and/or the project owner shall send these Regulations to the Ministry of Planning and Investment, the Ministry of Finance, concerned agencies and foreign donors within 05 days from the day on which the Regulations are approved.

2. With respect to construction investment programs and projects, the organization and operation Regulations of the managing agency shall be subject to legislative regulations on construction.

3. The organization structure of the project management unit:

a) Appointment to the key positions of the project management unit shall be made by the managing agency under the decision to establish the project management unit, including: Director, Deputy Director (if any), Chief Accountant or Accountant in charge. The Director of the project management unit shall be accountable to the project owner and/or the managing agency for management and administration of the project management unit, and implementation of the project in accordance with law and specific international treaties or agreements on ODA and concessional loans already signed;

b) Where a new project management unit is founded: Based on the contents, scale, nature, extent of its operation, and arrangements for management of implementation, the project management unit must be fully staffed by properly qualified and experienced members to ensure the effective and sustainable management of implementation of the projects. The Director of the project management unit shall propose the organization structure of the project management unit, which may be composed of functional units in charge of day-to-day administration, human resource and training, planning, procurement, finance, monitoring and supervision work in the organization and operation regulations of the project management unit;

c) Where the project management unit that is in operation is assigned to manage the new programs/projects: The Director of the project management unit shall complement and adjust the tasks in the organization and operation regulations of the project management unit to match assigned duties, and submit revised and updated tasks to the managing agency and the project owner to seek their decision;

d) Where the project owner manages the program/project on their own, the project owner shall assign duties in writing to subordinate officers to take part in management and implementation of the programs/projects.

4. Personnel of the project management unit shall be recruited, appointed and discharged. Functions, tasks, powers, remuneration package (salaries, bonuses, allowances,...) are specified according to terms of assignment of jobs appropriate for positions and relevant law. Nominating, hiring and appointing officeholders who are not on the payroll of the project owner or the managing agency to hold posts at the project management unit shall be aligned with the contents of the program/project document already approved by the competent authority and comply with relevant law.

5. Seal and account of the project management unit:

a) The project management unit shall be allowed to use its own seal according to the regulatory provisions or the seal of the managing agency or the project owner according to the regulations of the managing agency or the project owner to serve the management and maintenance of the program/project;

b) The project management unit shall be entitled to open Vietnamese dong and/or foreign currency accounts of the programs/projects at commercial banks or the State Treasury for respective funding sources of the programs/projects in accordance with regulations of law and specific international treaties, agreements on ODA and concessional loans already signed with foreign donors.

6. Operating budget of the project management unit: The operating budget of the project management unit shall be allocated by the counterpart fund for preparation and implementation of the programs or projects specified in clause 2 of Article 44 in this Decree, or funded by ODA grants in accordance with the provisions of law and specific international treaties, agreements on ODA and concessional loans already signed with foreign donors.

7. The management and use of assets assigned by the managing agency or project owner to the project management unit for management and implementation of projects/programs:

a) Assets of programs/projects assigned by the managing agency or project owner to the project management unit for management and implementation of these projects/programs must be used economically, effectively, and serve correct purposes and beneficiaries in accordance with law and project documents, specific international treaties or agreements on ODA and concessional loans already signed with foreign donors;

b) In case where the consultant or consulting organization or the contractor transferring, donating or assigning the assets to the project management unit, the project management unit shall send the managing agency or project owner a written request for management and use thereof during the course of implementation of the program/project, and transfer thereof to the managing agency or project owner after the program/project is completed.

8. Upon completion of the program/project and dissolution of the project management unit:

a) The deadline for completion of the program/project funded by ODA or concessional loan is prescribed in the investment decision, the decision on approval of project documents, specific international treaty or agreement on ODA and concessional loan already signed with the foreign donor;

b) Within the maximum duration of 06 months from completion of the program/project, the project management unit is obliged to prepare and send the managing agency or the project owner the report on completion of the program/project in order for the project owner to submit that report to the managing agency. Program/project completion report shall be made on the basis of the report on completion of the program/project under law and the specific international treaty or agreement on ODA and concessional loan;

c) The project management unit shall transfer assets of the program/project of which the custody is awarded the managing agency or the project owner by the competent authority in accordance with law;

d) After the completion report or the financial report of the program/project is approved by the managing agency or the project owner, and the transfer of assets to the managing agency or the project owner is completed, the managing agency shall issue the decision on completion of the program/project and the decision on resolution of the project management unit;

dd) In case where it is necessary to settle financial obligations and complete all required procedures, the project management unit shall send the managing agency or the project management unit the letter of transmittal to request the issuance of the decision to allow prolonging of the activities of the project management unit, and the provision of adequate budget for these activities;

e) Where the project management unit manages various programs/projects, the managing agency or the project owner shall issue the decision on completion of each program/project, and adjust the corresponding functions and duties of the project management unit.

Article 40. Hiring of consultants for program/project management

1. The program/project management consultant shall perform the tasks and commitments under the contract with the project owner while complying with relevant applicable regulatory provisions.

2. The project owner shall select program and project management consultants through bidding and signing consultancy contracts according to applicable regulations. When hiring a program/project management consultant, the project owner must designate an affiliated specialized unit or appoint a unit in charge of inspecting and supervising the consultant’s contract performance.

Article 41. Formulation, appraisal, approval and assignment of the public investment plans funded by foreign funding sources for programs/projects funded by ODA and concessional loans

1. Formulation, appraisal, approval and assignment of the medium-term public investment plans funded by ODA and concessional loans shall be subject to the regulations laid down in Chapter III of the Law on Public Investment and the Government’s regulations detailing some articles of the Law on Public Investment.

2. ODA and concessional loans of foreign donors applying the domestic financial mechanism for on-lending thereof to domestic public non-business units shall comply with the provisions of international treaties, agreements on ODA and concessional loans, and the Law on Public Debt Management and other applicable regulatory provisions.

3. Programs and projects already obtaining investment policy decisions from competent authorities, and new projects, have to ensure that the time limit for disbursement of capital for implementation of category-A, category-B and category-C projects is 6, 4 and 3 years, respectively. In case of failing to meet the aforesaid time limit, the Prime Minister shall decide the implementation duration of projects funded by the central budget capital.   

The implementation duration of a program/project funded by ODA or concessional loan is determined from the time of allocating fund to the program or project by a competent authority.

Article 42. Preparing and approving master plans for implementation of programs/projects funded by ODA and concessional loans

1. The master plan for implementation of a program/project shall cover its entire duration, all components, items, activities, relevant funding sources (e.g. ODA, concessional loan, counterpart fund) and schedule.  

2. Within 30 working days from the day on which the specific international treaty or agreement on ODA and concessional loans is signed, based on the feasibility study report, program/project document approved by a competent authority, the decision on investment in the program/project, and the specific international treaty or agreement on ODA and concessional loan, the project owner shall coordinate with the foreign donor in preparing or reviewing, updating the master plan for program/project implementation before submitting it to the managing agency for approval.

3. Within 05 working days from the day on which the master plan for program/project implementation is approved, the managing agency shall send the decision on approval enclosed with the master plan to the Ministry of Planning and Investment, Ministry of Finance, concerned agencies, and the foreign donor to facilitate their monitoring, evaluation, and cooperation in implementing the program/project.

Article 43. Preparing and approving annual plans for implementation of programs/projects funded by ODA and concessional loans

1. Based on the master plan for the program/project implementation already approved by the managing agency; Based on the actual disbursement and disbursement plan specified in the applicable specific international treaties, agreements on ODA and concessional loans, the project owner shall review and submit annual implementation plan to the head of the managing agency for approval. The annual implementation plan for programs and projects funded by ODA and concessional loan is also part of the annual investment plan of the managing agency.

2. The content of the annual program/project implementation plan shall contain detailed information about its components (divided into technical assistance component and construction component), main activities, items, funding sources including counterpart fund, and tentative schedule.

3. The annual plan approved by the managing agency is the basis for the project owner to formulate quarterly plans serving the management, monitoring and evaluation of the program/project implementation.

4. Every year, when formulating the socio-economic development plan and state budget estimate in accordance with regulations in effect, the managing agency shall incorporate the annual program/project implementation plan in its annual public investment plan and annual budget plan. Based on the managing agency’s annual budget plan, the Ministry of Planning and Investment shall formulate the capital plan and coordinate with the Ministry of Finance in submitting the annual socio-economic development plan and annual budget plan to the National Assembly for approval.

5. Procedures for assigning tasks in the annual program/project implementation plan shall comply with applicable regulatory provisions on assigning annual socio-economic development tasks.

6. Within 05 working days from the day on which the annual plan for program/project implementation is approved, the project owner shall send the decision on approval enclosed with the annual program/project implementation plan to the managing agency and seek agreement from the managing agency to send it to Ministry of Planning and Investment, concerned agencies, and the foreign donor to facilitate their monitoring, evaluation, and cooperation in implementing the program/project.

7. Regarding a program/project eligible for full on-lending from the state budget: Every year when formulating the socio-economic development plan and state budget estimate, the project owner shall formulate the program/project implementation plan and submit it to the managing agency for approval of the ODA or concessional loan financing plan and submit it to the Ministry of Planning and Investment, the Ministry of Finance, and the authorized on-lending agency for supervision. The managing agency and the project owner shall provide sufficient counterpart fund according to the progress of the program/project.

8. Regarding a program/project eligible for partial on-lending from the state budget: Depending on the nature of each component (full grant or on-lending), the project owner shall apply the procedures for preparing and submitting the program/project plan for each component in accordance with clauses 1, 2, and 7 of this Article.

Article 44. Counterpart funds for preparing and implementing the program/project

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.

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.

3. Regarding a program/project eligible for full grant from the state budget: The managing agency shall allocate counterpart  fund  in  its  annual  budget  estimate  based  on budget  decentralization  arrangement  and  other  legitimate financial sources, which are clearly classified into capital expenditures and recurrent expenditures corresponding to spending  items  of  the  program/project;  ensuring  sufficient  and  timely  counterpart  fund  as  specified  in  the  feasibility study report and program/project document approved by a competent authority, the decision on investment, regulatory provisions on state budget and applicable specific international treaty or agreement on ODA and concessional loans.

4. Regarding a program/project eligible for full on-lending:

a) For localities eligible for full on-lending: The counterpart funds shall be provided by local government budgets;

b) For enterprises and public non-business units eligible for full on-lending: The project owner shall provide the counterpart fund at their own expense or seek the competent authority’s decision to ensure the adequate counterpart fund for the program/project according to regulations before signing the on-lending agreement.

5. For a programs/project with the hybrid financial mechanism (the combined grant and on-lending mechanism): The managing agency or the project owner shall allocate sufficient counterpart fund in accordance with applicable regulatory provisions before signing the on-lending agreement.

6. Regarding the program/project eligible for grant from the state budget that is not approved or concluded at the same time as the annual budget estimates, and hence not provided with counterpart fund: The managing agency shall request the Ministry of Planning and Investment and the Ministry of Finance in writing to take actions within their jurisdiction, or seek the competent authority’s decision on supplementation of the annual budget estimate.

If the counterpart fund plan is not made at the same time as the annual budget plan, the managing agency shall provide it from the allocated capital. If the managing agency is not able to provide counterpart fund, it shall request the  Ministry  of  Planning  and  Investment  and  the  Ministry  of  Finance  in  writing  to  seek  approval  of  capital  advance, which will be then deducted from the next year’s budget plan.

7. Norms of the counterpart fund shall be aligned with the state budget spending norms and conform to the regulations laid down in relevant legislation.

Article 45. Taxes and fees imposed upon programs/projects

Taxes and fees imposed upon programs and projects shall comply with applicable regulatory provisions on taxes and fees, and international treaties to which the Socialist Republic of Vietnam is a signatory.  Where there are discrepancies between Vietnam's domestic law and a signed international treaty on the same issue, the latter shall prevail.

Article 46. Compensation, support and resettlement

Compensation, support and resettlement in the course of implementation of programs/projects shall comply with applicable regulatory provisions and international treaties on ODA and concessional loan to which the Socialist Republic of Vietnam is a signatory.  Where there are discrepancies between Vietnam's domestic law and a signed international treaty on the same issue, the latter shall prevail.

Article 47. Procurement

1. The contractor selection shall be carried out in accordance with the international treaty between Vietnam and the foreign donor; where there are discrepancies on contractor selection between the international treaty to which Vietnam is a signatory and the Law on Bidding, such international treaty shall prevail. If the international treaty does not provide for contractor selection procedures, the contractor selection process shall be carried out in accordance with the Law on Bidding.

2. Delegation procedures for submission, appraisal and approval of bidding contents shall comply with Vietnam's regulations on bidding. The content of appraisal and approval shall comply with the international treaty under the rules prescribed in clause 1 of this Article.

Article 48. Surplus funds

1. Surplus funds may be used only after capital is fully provided for successfully accomplishing the objectives of a project or project items at an investment stage with respect to the project involves various staged loans.  

2. In cases where it is really necessary to use the surplus funds to promote the efficiency without altering major objectives specified in the investment policy decision of the ongoing program/project:

a) The managing agency shall be in charge of determining the necessity and efficiency to decide the use of the surplus funds; send the written proposal or agreement for use of the surplus funds of the foreign donor and other relevant documents to the Ministry of Planning and Investment; 

b) The Ministry of Planning and Investment shall take the lead and incorporate the comments of the Ministry of Finance, other relevant agencies and foreign donors into a report prepared for submission to the Prime Minister to seek his decision.

3. Where there is the demand for the surplus funds for implementation of a new program/project, the managing agency shall send a letter of transmittal to the Ministry of Planning and Investment, enclosing the report on the investment policy proposal for that program/project. The Ministry of Planning and Investment shall take the lead and coordinate with concerned agencies in working with the foreign donor to reach agreement on use of the surplus funds and the applicable financial mechanism, and proceeding with the procedures for decision on the investment policy stipulated in Article 14, 15, 16, 17 and 18 herein.

4. Cancellation of surplus funds: The managing agency shall synthesize comments of the Ministry of Planning and Investment and request the Ministry of Finance to cancel the surplus funds of the program/project. Based on the proposal of canceling the surplus funds, the Ministry of Finance shall inform the donor of the cancellation of surplus funds.

In case the cancellation incurs fund cancellation or other fees, the managing agency shall synthesize the comments of the Ministry of Planning and Investment and request the Ministry of Finance to cancel the surplus funds of the program/project. Based on the managing agency's proposal, the Ministry of Finance shall report to the Prime Minister for permission to cancel the surplus funds before informing the donor of the cancellation.

Article 49. Construction management, acceptance, hand-over, audit and account finalization

1. Regarding a construction project, the appraisal of the feasibility study report; the approval of the investment project; the appraisal and approval of the construction design; the grant of construction permit, construction quality management, acceptance, hand-over, project warranty and insurance shall comply with applicable regulatory provisions on construction management and international treaties on ODA and concessional loan to which the Socialist Republic of Vietnam is a signatory. Where there are discrepancies between Vietnam’s domestic law and the international treaty already in effect on the same issue, then the international treaty shall prevail.

2. Regarding a technical assistance program/project, upon completion, the managing agency shall carry out the acceptance procedures and take necessary measures to continuously operate it and maximize the achievements, as well as comply with applicable regulatory provisions on financial and asset management of the program/project.

3. The audit and account finalization of the program/project shall be carried out in accordance with applicable regulatory provisions and international treaties on ODA and concessional loans to which the Socialist Republic of Vietnam is a signatory, or at the request of the foreign donor. Where there are discrepancies between Vietnam’s domestic law and the signed international treaty on the same issue, the international treaty shall prevail. 

Article 50. Monitoring and evaluation of programs/projects funded by ODA and concessional loans

1. Monitoring, evaluation and supervision of programs/projects funded by ODA and concessional loans:

a) Monitoring, evaluation and supervision of programs/projects funded by ODA and concessional loans shall be subject to the regulations laid down in Article 69, 70, 71, 72, 73, 74, 75, 76 and 77 of the Law on Public Investment and other relevant law. Where there are discrepancies between Vietnam’s domestic law and a signed international treaty on the same issue, the international treaty shall prevail;

b) The Ministry of Planning and Investment shall develop and run the national information system and database on public investment; the information system for monitoring of investment evaluation;

c) Ministries, central authorities and local authorities shall develop and run the national information system and database on public investment; the information system for monitoring of investment evaluation within their remit.

2. Monitoring, evaluation and supervision of programs/projects funded by stand-alone ODA grants independent of any loan and non-project assistance:

a) Monitoring and inspection of the programs/projects and non-project assistance: The project owner shall monitor and inspect the implementation of programs, projects and non-project assistance on the basis of program, project or non-project assistance documents approved by the competent authorities to ensure achievement of the set objectives, and periodically report to the managing agency on the monitoring and inspection results;

b) Evaluation of programs, projects and non-project assistance: Within 3 months from the end of the program, project or non-project assistance, the project owner shall complete the evaluation report for the program, project or non-project assistance, covering the following contents: Implementation process; implementation results of objectives; resources mobilized; benefits from the programs, projects and non-project assistance to beneficiaries; impacts, sustainability; lessons learned and necessary recommendations; responsibilities of concerned agencies, organizations and individuals;

c) Reporting requirements on the implementation of programs, projects and non-project assistance for managing agencies and project owners: Managing agencies and project owners shall send reports according to applicable regulatory provisions.