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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.
40/2011/TT-BTC
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Hanoi,
March 22, 2011
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CIRCULAR
AMENDING
AND SUPPLEMENTING A NUMBER OF ARTICLES OF THE MINISTRY OF FINANCE'S CIRCULAR
NO. 108/2007/TT-BTC OF SEPTEMBER 7, 2007, GUIDING THE FINANCIAL MANAGEMENT
MECHANISM APPLICABLE TO OFFICIAL DEVELOPMENT ASSISTANCE (ODA) PROGRAMS AND
PROJECTS
Pursuant to the Public Debt
Management Law;
Pursuant to the Government's Decree No. 79/2010/ND-CP of July 14, 2010, on
public debt management operations;
Pursuant to the Government's Decree No. 131/2006/ND-CP of November 9, 2006,
promulgating the Regulation on management and use of official development
assistance (ODA) sources;
Pursuant to the Government's Decree No. 60/ 2003/ND-CP of June 6, 2003,
detailing and guiding the implementation of the State Budget Law;
Pursuant to the Government's Decree No. 118/2008/ND-CP of November 27, 2008,
defining the functions, tasks, powers and organizational structure of the
Ministry of Finance,
The Ministry of Finance amends and supplements a number of points of the
Finance Ministry's Circular No. 108/2007/TT-BTC of September 7, 2007, guides
the financial management mechanism applicable to ODA programs and projects, as
follows:
Article 1.
1. To
amend the sixth paragraph, Point 1, Section IV of Part I as follows:
"Annual
financial plans of projects entitled to state budget allocation already
approved or notified by competent agencies serve as the basis for payment
control and withdrawal of domestic contributed capital and ODA capital for the
projects. After these financial plans are approved, the project management
units shall send them to the expenditure control agency."
2. To
amend Point 1, Section V of Part I as follows:
"1.
Service bank:
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b/ Criteria
for selection of service banks
- Complying
with all regulations of the State Bank of Vietnam on financial safety ratios
applicable to credit institutions;
- Operating
in geographical areas suitable to ODA projects' areas;
- Making a
commitment to comply with regulations of the Government, the Ministry of
Finance and donors on ODA capital management;
c/ Selection
of service banks:
- On the
basis of the list of banks qualified for acting as service banks announced by
the State Bank of Vietnam and the Ministry of Finance and the written requests
of commercial banks, the Ministry of Finance shall consider and approve the
selection of service banks for ODA projects.
- In case
more than one qualified commercial bank request to serve a single ODA project,
priority shall be given to (he following: banks experienced in serving ODA
projects; state-owned commercial banks; and joint-stock commercial banks in
which the State holds dominant shares.
- If the
State Bank of Vietnam and the Ministry of Finance have not yet announced the
list of commercial banks qualified to act as service banks, on the basis of the
requests of commercial banks, the Ministry of Finance shall consult the State
Bank of Vietnam and donors to select service banks.
3. To add
the following sixth paragraph to Point 2, Section V of Part I:
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4. To
amend the first em rule, Point 1 e/, Section I of Part II as follows:
- Payment
from the advance account/special account, for projects with only one advance
account level, or payment from level-1 advance accounts, for projects with many
advance account levels."
5. To
amend and supplement Points a, b, c and d and annul Point e, Clause 3, Section
I of Part II, as follows:
"a/
Expenditure control dossiers and procedures applicable to construction
investment projects entitled to state budget allocation:
Expenditure
control dossiers and procedures applicable to construction investment projects
entitled to state budget allocation comply with the provisions of the Ministry
of Finance's Circular No. 27/2007/TT-BTC of April 3, 2007, guiding the
management and payment of investment capital and non-business capital of investment
and construction nature, which belong to the state budget capital source, and
documents amending, supplementing or replacing Circular No. 27/2007/TT-BTC (if
any). A dossier (one set) is specified as follows:
- Dossiers
and documents sent for the first time (or supplemented or revised documents in
case of supplementation or revision):
+ The
financial assistance agreement signed between the Vietnamese Government and the
donor (the Vietnamese translation bearing the signature and seal of the project
owner);
+ The work
construction investment project (or techno-economic report, for projects only
requiring techno-economic reports), enclosed with the investment decision
issued by a competent authority (a copy);
+ The
document on contractor selection as provided by the Bidding Law, including
bidding, contractor appointment, direct procurement, competitive offer,
self-implementation and contractor selection in special cases (a copy);
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+ The
detailed cost estimate and estimate-approving decision issued by a competent
authority for each job or work item, for bid packages with appointed
contractors and self-implemented (copies);
+ For projects
belonging to specialized credit programs of the Japanese International
Cooperation Agency (JICA), ODA projects with sub-projects or component projects
implemented in many provinces, the project owners are not required to send the
lending/ financial assistance agreements, but shall send to the provincial- and
district-level expenditure control agencies dossiers and documents determining
the financial assistance rates of the projects.
- Dossiers
and documents confirming advance capital amounts: When making advance amounts,
in addition to dossiers and documents sent for the first time, the project
owners shall send to the expenditure control agency the following documents:
advance guarantee involving a value equal to the requested advance amount. The
advance guarantee must have a validity term ensuring full recovery of the
advanced amount according to the contractual terms, written request for payment
of investment capital; and the paper on withdrawal of investment capital (in
case of advance of domestic capital).
The advance
capital level and recovery of advance amounts shall be stipulated in the
contract in accordance with domestic current regulations and treaties. The
project owner shall recover all capital amounts advanced under contracts and
complete the recovery when payment reaches 80% of the contractual value.
- Dossiers
and documents confirming payment for completed volumes:
+ In case of
payment under contract: The original statement of the value of completed work
volume under contract; when arises a volume outside contract, the project owner
shall send the original statement of the value of work volume arising outside
contract; the payment request of the contractor/supplier, containing the
certification of the representatives of the principal and consultant (if any)
and contractor; written request for payment of investment capital; written
request for advance payment of investment capital (if any);
+ In case of
payment without contract: original written request for payment of investment
capital; written request for advance payment of investment capital (if any); a
list of payment documents;
+ In case the
project owner hires contractual employees, a list of wages and labor contracts
must be enclosed; in case of organizing meetings, workshops and training
courses under contracts, the project owner shall provide such contracts and a
list of payment documents, etc. The project owner shall take full
responsibility for the requested payment value and, as a result, is not
required to send invoices and payment documents to the expenditure control
agency.
- For works
and bid packages which people are allowed to self-implement:
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- Dossier of
payment for the package consultancy contract based on the product being the
consultant's report:
+ The project
owner's official letter on the product take-over test with regard to the
foreign-language report of the consultant enclosed with the contract's product
(for product-based payment); a brief statement of the progress-based payment
value, certified by the project owner/project management unit (for
progress-based payment).
b/
Expenditure control dossier and procedures for administrative non-business
projects entitled to state budget allocation:
- Expenditure
items entitled to advance allocation or eligible for payment allocation Comply
with the guidance of the Ministry of Finance on allocation and payment of state
budget expenditures via state treasury. In case a treaty or donor has specific
regulations, such regulations will apply. In addition, for ODA projects, in
order to control expenditures, project owners shall send to the expenditure
control agency the following documents:
+ Dossiers
and documents sent for the first time (supplemented or revised documents, for
cases of supplementation or revision): financial assistance agreement signed
between the Vietnamese Government and the donor (Vietnamese translation bearing
the signature and seal of the project owner/project management unit);
no-objection letter of the donor with regard to the contract (if applicable).
c/
Expenditure control dossiers and procedures for on-lending projects, those
subject to credit limit:
Comply with
Point 3.a above.
d/
Expenditure dossiers and procedures for on-lending projects subject to credit
limit:
Expenditure
control dossier and procedures for credit projects or credit components of
projects comply with regulations of credit institutions using on-lent ODA
capital and of financial assistance agreements and the projects. Credit institutions
using on-lent ODA capital shall take responsibility before law for the accuracy
and validity of credits and non-credit expenditures in the statement of
expenditures sent to the Ministry of Finance when requesting withdrawal of
foreign capital."
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"Expenditure
control agencies shall control expenditures or refuse payment within 7 working
days, for pre-control of expenditures, or within 4 working days, for
post-control of expenditures, after receiving complete and valid
dossiers."
7. To
amend the second em rule, third paragraph, Point 6, Section III of Part II as
follows:
"-
Statement of money transfer documents proving payments made to the contractors/
beneficiaries or payment receipt certifications of the
contractors/beneficiaries;"
8. To
amend Point 2, Section II of Part III as follows:
"All
programs and projects using on-lent ODA capital must be audited by the state
audit office or an independent audit firm. Audits must comply with domestic regulations
and donors' regulations."
9. To add
the following Point 6 to Section II of Part III:
"6. The
project owner shall provide the audit report to the project-managing agency,
donor and finance agency. For a project not audited by the state audit office,
the project owner shall also send the audit report to the state audit
office."
10. To
amend and supplement Section III of Part III as follows:
"1.
Administrative non-business projects using ODA capital shall make annual financial
settlement according to the provisions of the Ministry of Finance's Circular
No. 01/2007/TT-BTC of January 2, 2007, guiding the approval, appraisal and
notification of annual financial settlement of administrative agencies,
non-business units, organizations receiving state budget supports and funds of
budgets of different levels, and its supplementing, adding or replacing
documents (if any).
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11. To
amend and supplement Points 1 and 2, Section I of Part IV as follows:
1. ODA
project management units set up under Clauses 1 and 2, Article 25 of the
Regulation on management and use of ODA capital sources, promulgated together
with the Government's Decree No. 131/ND-CP of November 9, 2006, and provided
with assets, shall manage and use assets under the Government's Decree No.
52/2009/ND-CP of June 3, 2009, detailing and guiding a number of articles of
the Law on Management and Use of State Assets and the Prime Minister's
Directive No. 17/2007/CT-TTg of July 25, 2007, on enhancing the management of
assets of management units of projects using state capital, and the guidance of
this Circular.
2.
Contractors, consultants and supervisors of ODA projects shall themselves use
their own assets or hire assets for consultancy, supervision or construction.
Project management units may neither invest in nor procure assets for supply to
contractors, consultants and supervisors nor arrange funds for asset procurement
in consultancy, supervision or construction contracts."
12. To
amend Point 2, Section HI of Part IV as follows:
"2. For
cars used for work purposes, including specialized vehicles (if necessary):
Program- or project-implementing agencies shall arrange some among their
existing cars for project management units' managerial tasks. If they cannot
arrange cars, project management units may purchase or rent cars under the
provisions of Vietnamese law and signed ODA treaties."
13. To
amend Section VI of Part IV as follows:
"The
handling of assets of a project upon completion of the project or assets no
longer used in the process of project management must comply with the
provisions of the Ministry of Finance's circular on the management and handling
of assets of projects using state capital upon completion of projects and
relevant legal documents."
Article 2.
1. This
Circular takes effect on June 1, 2011.
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FOR
THE MINISTER OF FINANCE
DEPUTY MINISTER
Tran Xuan Ha