The Decree prescribes several basic principles of state management of ODA grants and soft loans as follows:
ODA and soft or concessional loans are used for development investment, not regular spending, purposes.
Foreign loans are not used to pay for the following activities:
- Training and coaching for competence improvement purposes, except when such training and coaching activities are needed for transfer of technology, equipment and machinery operation skills; (This is a new regulation)
- Field trips, study tours or visits; (This is a new regulation)
- Payment of taxes, fees and loan interest;
- Purchase of motor vehicles, except those used for special purposes subject to the competent authority's decisions;
- Supplies and equipment in reserve for operation of a project after it is completed, except for supplies and equipment in special reserve decided by competent authorities in accordance with law;
- Compensation, support and resettlement costs;
- Operating costs of the project management board;
Decree No. 114/2021/ND-CP is entering into force as of December 16, 2021 as a replacement for the Decree No. 56/2020/ND-CP dated May 25, 2020.
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