THE
MINISTRY OF FINANCE
-------
|
SOCIALIST
REPUBLIC OF VIET NAM
Indepen dence - Freedom - Happiness
------------
|
No.
45/TC-TCDN
|
Hanoi,
July 9, 1997
|
CIRCULAR
GUIDING THE MECHANISM OF MANAGEMENT AND USE OF THE AID FUND FROM
THE FRENCH GOVERNMENT IN 1996
Pursuant to Decree No.58-CP of August 30,
1993 of the Government promulgating the Regulation on the Management of the
Loans and Payment of Debts of Foreign Countries;
Pursuant to Decree No.20-CP of March 15,1994 of the Government promulgating the
Regulation on the Management and Use of the Official Development Assistance
Sources.
Pursuant to Decree No.42-CP of July 16, 1996 of the Government promulgating the
Regulation on the Management of Investment and Construction;
Pursuant to Circular No.18-TC/TCDN of March 5, 1994 of the Ministry of Finance
guiding the management and use of the Government�s borrowings from foreign countries.
Pursuant to Official Dispatch No.1909/QHQT of April 21, 1997 of the Government
on the financial mechanism of the projects using aid sources from the French
Government provided for in the Protocol of 1996;
The Ministry of Finance hereby provides the following guidance on the mechanism
of management and use of the aid sources provided for in the Financial Protocol
of 1996 signed on December 5, 1996 between the Government of the French
Republic and the Government of the Socialist Republic of Vietnam:
I. GENERAL PROVISIONS
1. As provided for in the Protocol of 1996, the
aid fund from the French Government to the Vietnamese Government (including a
non refund grant, a loan from the French Treasury and a mixed credit) is a
revenue of the State Budget. It must be reflected in the State Budget and
managed according to the current financial regime of financial management of
the State. The Ministry of Finance has the responsibility to incorporate it
into the State Budget and pay to the French Government when payment of the
debts is due (comprising principal and interest).
2. In view of the objective and character of the
use of the aid sources as well as the capacity of payment of each project, and
on the basis of the binding conditions of the French side and the approval of
the Vietnamese government each year, the projects using the aid sources under
the Protocol of 1996 are classified as follows:
- The projects to be funded by the State Budget
are projects listed in the attached Appendix I.
- Projects funded by re-loans from the French
Treasury and the mixed credit under the re-lending conditions provided for by
the Vietnamese Government according to the concrete lists in the attached
Appendixes II and III.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
4. Project owners who are allowed to use the aid
sources (including aid and loans) shall have to draw up the plan to draw
capital and the plan on their needs of counterpart capital in the country each
year for each project and send them to the Ministry of Finance (The External
Financial Relations Department and the General Department for Investment and
Development) and the Ministry of Planning and Investment for approval,
coordination, guidance and monitoring in the implementation.
5. For the projects allowed to use funds from
the non refund aid, the project owners shall have to use the funds for the
right purpose and according to the commitments made in the Trade Contract.
For the projects which require reloans, the
project owners shall have to use the funds and repay the loans according to the
commitments in the Credit Contract (Re-lending Contract) signed with the
Ministry of Finance and the Government regulations about the management and use
of the foreign loans in accordance with the regulatory documents already
mentioned above.
II. CONCRETE STIPULATIONS
1. Process and procedure of
drawing loans and aid funds
a/ The formulation, evaluation and approval of
the feasibility study reports shall have to comply with the provisions of the
Regulation on the Management of Investment and Construction issued together
with Decree No.42-CP of July 16, 1996 of the Government.
b/ Basing himself on the project already
approved by the competent authority, the project owner shall have to carry out
the bidding procedures and signing of Trade Contracts with French companies to
purchase commodities and supply services. Trade Contracts must be signed before
the June 30th, 1998. After that, the project owners shall fill the procedures
for approval of Trade Contracts according to Decision No.91-TTg of November
13,1992 of the Prime Minister and the guidance of the Ministry of Trade.
c/ The documents related to the approval of the
investment projects and the signed trade contracts together with the bill of
approval of the Trade Contracts must be sent to the Ministry of Planning and
Investment, the Ministry of Finance (the External Financial Relations
Department and the General Department for Investment and Development)
Department in order to fill the subsequent procedures with the French side.
d/ On the basis of the official dispatch
proposing the draw of aid fund to carry out the Trade Contracts of the project
owner together with the notice of approval of the Trade Contract by the
Vietnamese Government sent by the Ministry of Planning and Investment to the
Commercial Counselor beside the French Ambassador in Hanoi, the Ministry of
Finance shall empower the Vietnam Investment and Development Bank to fill the
procedures to draw the borrowings from private banks in France with guarantee
from the COFACE for the projects in List III using the French mixed aid
sources.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
f/ In case the project cannot be carried out or
is carried out belatedly because the procedures and dossiers have not been
completed or for any other reason, and the project owner wants to withdraw or
change his project, he must report in time to the Ministry of Planning and
Investment and the Ministry of Finance.
2. Implementation of the
allocation of fund and re-loan
a/ For projects requiring re-loan of funds
(Appendices II and III)
After the competent agencies have approved the
Trade Contract signed between the project owner (or the unit mandated by the
parent agency to import the goods) and the French company, the project owner
has to sign the Credit Contract with the Ministry of Finance (the General
Department for Investment and Development) on the reborrowing of the aid source
from the State Budget. The Credit Contract shall be the basis for the project
owner to formally contract the debt to the State budget and carry out its
obligation in strict conformity with the commitments in this contract.
Conditions for re-lending to the projects using
funds of the French Treasury (Appendix II)
- Term of the re-loan: 15 years including 4
grace years
- Interest rate of re-loan: 2.5%/year
- Currency used in the loan: French franc
Conditions for re-loan for projects using mixed
credit sources (Appendix III):
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- Term of the re-loan: 15 years including 4
grace years
- Interest rate: 1%/year
- Currency used in the loan: French franc
+ Sources from private credits (accounting for
25.41% of the total loan for the project):
- Term of the re-loan: 10 years without grace
term
- Interest rate: as regulated by the French Bank
to remain unchanged throughout the loan term
- Currency used in the loan: French franc
Charges: In addition to the above interest
rates, the project owner shall have to pay the following charges:
Overseas charge:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
+ Commitment charge: 0.5%/year calculated on the
capital from which private credit sources are not yet drawn
+ Management charge of the French Bank: 0.8%
paid at one time on the total loan from private credit sources
+ Credit insurance charge of COFACE paid in
proportion to the charge announced by the French side on the loan from private
credit sources.
+ Other charges collected by foreign banks in
the course of drawing capital (if any)
Domestic charge:
Service charge on the lending of State credits:
0.5%/year calculated on the loan to be collected by the General Department for
Investment and Development and the external transaction charge to be collected
by the Vietnam Investment and Development Bank.
Mode of payment of charges
The external transaction charge of the
Investment and Development Bank shall be directly collected by the Bank from
the project owner during each transaction at the rate defined by the Bank.
The General Department for Investment and
Development directly collects:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
+ Overseas charge composed of commitment and
management and other charges (if any) mentioned above from the project owner on
receipt of the notice of the Investment and Development Bank so that the State
Bank may have funds to pay to the French side when the term is due. For the
credit insurance charge in particular, it shall be supplemened by France and
shall be added to the total loan which the project owner is funded to
acknowledge debts to the General Department for Investment and Development.
The General Department for Investment and
Development shall announce the timetable for debt payment to the State Budget
by the project owner. The project owner has the responsibility to repay the
principal, interest and the charge when the term is due as indicated in the
notice. The project owner may pay the debt before term to the State Budget.
In case he cannot pay the debts on schedule to
the Ministry of Finance for whatever reason, the project owner shall have to
pay the penalty overdue interest as prescribed by the French penalty rate for
overdue debts as indicated in the Agreement of Application (the penalty on
overdue payment is 2.5%/year for loans of the French Treasury and PIBOR
+2.5%/year for private credit loans)
b/ With regard to the projects funded by the
State budget (Appendix I)
The Ministry of Finance (The General Department
for Investment and Development) shall allocate funds to the projects listed in
Appendix I attached to the current regime on the allocation and management of
capital construction fund from the State Budget.
With regard to the projects funded by the State
budget, the overseas and external transaction charges shall be paid for by the
State Budget. The Investment and Development Bank shall have to inform in time
the Ministry of Finance (the External Financial Relations Department and the
General Department for Investment and Development) of the abovesaid payable
charges.
With regard to the projects funded by non-refund
aid sources from the French Treasury, this loan must be recorded in an aid
acknowledgement paper. When he receives the notice to receive the aid goods,
the project owner shall go to the Ministry of Finance to fill the procedures of
aknowledging this reception. In case the foreign party has ordered the goods
inside Vietnam, the project owner shall fill the procedure to certify the
reception of the aid within 30 days after receiving the goods. The necessary
dossiers to certify the reception of the aid shall include:
+ The document approving the program or project
by the competent agency
+ The agreement or other documents of agreement
signed officially with the foreign partner in which the project being
implemented is clearly recorded.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
+ The Bill of Lading or Airway Bill.
+ The Packing List
+ The Invoice
+ The Insurance Certificate.
The vouchers recording expenses and revenues
through the State budget comprise:
+ The bill of the Ministry of Finance certifying
the reception of the aid goods; or
+ The debt notice of the French Development Fund
on behalf of the French Treasury and the payment bills to the French suppliers
(including the vouchers for the technical services) issued by the French
commercial agency; or
+ The debt notice of the French Bank.
3. Other provisions
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
b/ All the goods, equipment and services of the
projects for importation of ODA projects of France under the 1995 Protocol in
service of the project shall be exempted from import tax as provided for in the
Guiding Document No.1269-TC/TCT of April 22,1997 of the Ministry of Finance.
c/ When the project is completed, the project
owner shall have to draw up the statement of reception and utilization, assess
the efficacity of the project and send them to the parent agency and the
Ministry of Finance. The process and requirements of the drawing of the final statement
of accounts, the contents of the report in the final statement of accounts and
the approval of the statement shall have to comply with the guidance in
Circular No.66-TC/DTPT of November 2,1996 of the Ministry of Finance.
III. ORGANIZATION OF IMPLEMENTATION:
This Circular takes effect 15 days after its
signing. The parent agencies of the projects shall guide the project owners to
implement scrupulously the provisions in this Circular. In the process of
implementation if any problem arises, the project owners and the parent
agencies should report it in time so that the Ministry of Finance may examine
and settle it.
FOR THE
MINISTER OF FINANCE
VICE MINISTER
Le Thi Bang Tam
APPENDIX I
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
No.
Name of project
Parent agency
Aid funds
(million FF)
Funding source
1
Equipment for Nghe An hospital
Nghe An People’s Committee
4
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
2
Equipment for Yen Bai hospital
Yen Bai People’s Committee
4
Non-refund aid
3
Informatization of Notarization (2nd stage)
Ministry of Justice
7
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
4
Technical assistance to the General Statistics
Department
General Statistics Department
0.4
Non-refund aid
5
Hydrometeorology (3rd stage)
General Hydrometeorology Department
18
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
6
Assembly of trucks and generators
Ministry of Defense
35
Mixed credit
7
Fire fighting ships
Ministry of the Interior
5
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
APPENDIX II
LIST OF PROJECTS ALLOWED TO USE LOANS FROM THE FRENCH
TREASURY, FISCAL 1996, ACCORDING TO THE STATE REGIME OF FUND RELENDING
(Attached to Circular No.45 TC/TCDN of July 9, 1997 of the Ministry of
Finance)
No.
Name of project
Parent agency
Funding source
(million FF)
1
Restoration of Yen Bai water supply system
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
25
2
Restoration of Lao Cai water supply system
Lao Cai People’s Committee
13.4
3
Restoration of Hoa Binh water supply system
Hoa Binh People’s Committee
15
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
APPENDIX III
LIST OF PROJECTS ALLOWED TO USE FRENCH MIXED
CREDITS, FISCAL 1996, ACCORDING TO THE STATE REGIME OF FUND RELENDING (Attached
to Circular No.45-TC/TCDN of July 9,1997 of the Ministry of Finance)
No.
Name of project
Parent agency
Funding source
(million FF)
1
Restoration of Nam Dinh water supply system
Nam Dinh People’s Committee
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
2
Traffic lights in Ho Chi Minh City
HCMC People’s Committee
15
3
Railway cranes
Ministry of Communications and Transport
14
4
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Ministry of Communications and Transport
40
5
Training of air pilots
VN Civil Aviation
12
6
Training of air controllers
VN Civil Aviation
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
7
Restoration of Thanh Hoa electric grid
Ministry of Industry
43
8
Modernization of Postal and Telegraph Centre
General Department of Post and
Telecommucations
50
9
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
15