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THE
MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
39/2001/TT-BTC
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Hanoi, June 05, 2001
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CIRCULAR
GUIDING THE
MANAGEMENT AND USE OF THE COOPERATION RECIPROCAL FUND OF THE KINGDOM OF BELGIUM, 2ND PHASE
Pursuant to the Special Agreement signed on
December 7, 2000 between the Government of the Socialist Republic of Vietnam
and the Government of the Kingdom of Belgium on the reduction of Vietnam’s
foreign debts by Belgium and funding for projects in Vietnam (hereafter called
Agreement for short), the Ministry of Finance provides the following guidance
for the management and use of the Cooperation Reciprocal Fund of the Kingdom of
Belgium in Vietnam 2nd Phase (hereafter called Reciprocal Fund II for short)
set up from the Belgian debt conversion source under the Agreement:
I. GENERAL PROVISIONS:
1. The Ministry of Finance shall set up
Reciprocal Fund II from the State budget�s source for repayment of debt to the
Belgian Government.
2. The account of Reciprocal Fund II shall be
opened at the Central State Treasury, owned by the Foreign Financial Relations
Department of the Ministry of Finance and shall be used to cover VND
expenditures of bilateral cooperation projects/programs within the framework of
the cooperation program between Belgium and Vietnam in the period 2001-2003.
The use of money from Reciprocal Fund II for these projects/programs shall be
carried out through an agreement between the two governments.
3. The execution of Reciprocal Fund II shall be
conducted by the Executive Board composed of the following members:
- The representative of the Ministry of
Finance
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- The International Cooperation Counselor of the
Belgian Embassy
- The representative of the Belgian Technical
Cooperation Agency
- The representative of the Vietnamese agency
performing the cooperation project/program.
The Ministry of Finance shall preside over
meetings of the Executive Board.
The Executive Board has responsibilities to
appraise the impact and the durability of the future projects to be funded by
Reciprocal Fund II; to analyze the progress and the mode of implementation of
the project; to inspect the execution of Reciprocal Fund II and to determine
the necessary amounts for the selected projects.
4. The Ministry of Finance shall have to inform
the Belgian Technical Cooperation Agency of the use of capital from Reciprocal
Fund II for the projects so that the Belgian side can carry out the procedures
for amortizing debts for Vietnam according to the Agreement.
II. SPECIFIC PROVISIONS ON THE MODE OF
MANAGEMENT AND USE OF RECIPROCAL FUND II
1. The total value of Reciprocal Fund II shall
be the amount of VND corresponding to 317,591,164 Belgian Francs (BEF) or
7,872,879.31 Euro (EUR). Basing itself on the annual funding plan (with
quarterly allocations) made by the project/program owner entitled to use
Reciprocal Fund II (hereafter called project owner for short) and sent to the
Ministry of Finance periodically once every six months (on January 15 and July
15 each year), the Ministry of Finance shall transfer money from the State
budget to the account of Reciprocal Fund II at the Central State Treasury and
make the accounting for debt repayment to the Belgian side.
2. The projects, which have been accepted by the
Vietnamese and Belgian Governments as being funded by Reciprocal Fund II, shall
have to record clearly in separate Agreements of the project the monetary value
funded by Reciprocal Fund II and must specify details of the expenditures in
the financial-technical dossier of the project.
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4. Basing themselves on the progress of
implementation of the project, the project owner shall draw up plans of using
the money from Reciprocal Fund II quarterly and yearly and send them to the higher
controlling agency for approval, and also to the Ministry of Finance (the
External Financial Relations Department) in order to enter the balance of the
State budget. These plans shall also be sent to the Vietnamese and Belgian
members in the Executive Board for coordination in monitoring and guidance of
implementation.
If the amounts used in Reciprocal Fund II listed
in the project documents are in foreign currencies (Belgian Franc or Euro), the
exchange rate in VND for the planning and real fund allocation from Reciprocal
Fund II shall be announced by the Ministry of Finance (based on the market
exchange rate on the first working day of that fiscal year as stipulated in the
Agreement).
5. Allocation procedures:
a/ For the first allocation of fund, the project
owner shall send to the Ministry of Finance (the External Financial Relations
Department):
- The separate agreement attached to the
financial-technical dossier of the project;
- The approval decision of the project document
by the competent authorities;
- The plan of fund use in the plan year;
- The written request for monetary allocation
attached with the identification number of the account at the State Treasury
where transactions are conducted, signed by the two co-directors of the
project, Vietnamese and Belgian.
The first allocation of fund shall be performed
on the basis of the plan of fund use of the project in the plan year.
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- A written request for the allocation with
specification of the amount of money in VND, the corresponding original
currency, the identification number of the account for money transfer signed by
two co-directors of the project, Vietnamese and Belgian;
- The report on the expenditures from the amount
allocated in the previous period certified by the State Treasury where
transactions are conducted.
After full reception of the above required
documents, within three working days the Ministry of Finance (the External
Financial Relations Department) shall fill procedures for the transfer of money
to the source account opened by the project owner at the State Treasury.
6. State budget accounting:
On the basis of the money transferred to the
project from Reciprocal Fund II, the Ministry of Finance shall fill procedure
of accounting to record the State budget collection of the aid money from the
source to convert the debts to the Belgian government and make accounting for
supplementary target allocation to the People’s Committee of the province or
city or transfer the fund to the ministry or central agency managing the
project.
The People’s Committees of the provinces and
cities and the ministries, the central agencies managing the projects shall
have to inform the project owners of the above State budget allocation so that
the project owners can make the accounting in the books and make the final
settlement of expenditures for the project.
7. The State Treasury at all levels shall have
to inspect the expenditures as currently prescribed on the basis of the
Financial-Technical Dossier of the project, including the stipulations on the
project items eligible to use money from Reciprocal Fund II and the
certification of the expenditures from the amount that can be used in the
projects within the program of Belgian debt conversion.
8. Reporting and final settlement regime.
- Periodically every six months and yearly, the
project owner shall have to report on the situation of implementing the
project, the use of the fund allocated from the Reciprocal Fund in the previous
period to the Ministry of Finance, the People’s Committee of the province and
centrally run city or the ministry or central agency managing the project. The
project owner has to observe the regime of reporting to the Executive Board of
the Reciprocal Fund as stipulated in the financial-technical dossier of the
project.
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- The expenditures for the project from the part
of the capital allocated by the Reciprocal Fund may be audited by an
independent audit company (if the Belgian side so requests).
- The project owner shall have to report the
final settlement of expenditures from the fund allocated by the Reciprocal Fund
to the Finance and Pricing Service of the province or city, the ministry and
the central controlling agency, at the same time send a copy to the Ministry of
Finance (the External Financial Relations Department) in order to fill the
procedures for settling and debt amortizing with the Belgian side.
III. ORGANIZATION OF IMPLEMENTATION:
This Circular takes effect 15 days after its
signing.
In the course of implementation if any
difficulty arises, the project owners, the People’s Committees of the provinces
and cities, the ministries and central controlling agencies should promptly
report to the Ministry of Finance for settlement.
FOR THE MINISTER OF FINANCE
VICE MINISTER
Le Thi Bang Tam