FINANCING AGREEMENT
SPECIAL CONDITIONS
The European Union, hereinafter referred to
as "the EU", represented by the European Commission,
hereinafter referred to as "the Commission",
of the one part, and
The Socialist Republic of Vietnam,
represented by the Ministry of Finance, hereafter referred to as "the
Beneficiary"
of the other part,
have agreed as follows:
ARTICLE 1 - NATURE
AND PURPOSE OF THE OPERATION
1.1. The EU shall contribute to the financing
of the following programme:
Health Sector Policy Support Programme
Ref: DCI/ASIE/2010/2058 7
hereinafter referred to as the programme
which is described in the Technical and Administrative Provisions in Annex II.
1.2 This programme will be implemented in
accordance with the financing agreement and the annexes thereto: the General
Conditions (Annex I) and the Technical and Administrative Provisions (Annex
II).
ARTICLE 2 - THE EU'S
FINANCIAL CONTRIBUTION
2.1 The total cost of the programme is
estimated at 39 250 000 Euro, with the following components 2.1.1 Budget
support:
39 150 000 Euro
2.1.2 Complementary support:
100 000 Euro
2.2 The EU undertakes to finance a maximum of
39 250 000 Euro. The breakdown of the EU's financial contribution into budget
headings is shown in the budget included in the Technical and Administrative
Provisions in Annex II.
ARTICLE 3 - THE
BENEFICIARY'S CONTRIBUTION
3.1 The Beneficiary shall contribute zero
Euro to the programme
3.2 Where there is a non-financial
contribution by the Beneficiary the detailed arrangements shall be set out in
the Technical and Administrative Provisions in Annex II.
ARTICLE 4 - PERIOD OF
EXECUTION
The period of execution of the financing
agreement as defined in Article 4 of the General Conditions shall commence on
the entry into force of the financing agreement and end at 72 month after this
date.
ARTICLE 5 - ADDRESSES
All communications concerning the
implementation of the financing agreement shall be in writing, refer expressly
to the programme and be sent to the following addresses:
a) for the Commission
Head of Delegation of the European Union to
Vietnam
17th floor, 83B Ly Thuong Kiet, Hanoi,
Vietnam
b) for the Beneficiary
The Ministry of Finance of Vietnam
28 Tran Hung Dao Street, Hanoi, Vietnam
ARTICLE 6 - ANNEXES
6.1 The following documents shall be annexed
to this agreement and form an
integral pan thereof:
Annex I: General Conditions
Annex II: Technical and Administrative
Provisions.
6.2 In the event of a conflict between the
provisions of the Annexes and those of the Special Conditions of the financing
agreement, the provisions of the Special Conditions shall take precedence. In
the event of a conflict between the provisions of Annex I and those of Annex
II, the provisions of Annex I shall take precedence.
ARTICLE 7 - CONDITIONS
APPLYING TO A BUDGET SUPPORT OPERATION
7.1 Given the nature of a budget support
operation, the following clauses of the General Conditions (Annex I) shall not
be applicable in respect to the amount specified in Article 2.1.1 (Budget
support) of these Special Conditions: Articles 2. 4.2 first sentence, 5, 6, 7,
8,9, 11, 12.2 and 13.2.
7.2 In respect to the amount specified in
Article 2.1.1 (Budget support) of these Special Conditions, the following
clauses of the General Conditions shall be replaced by the following:
7.2.1 In respect to Article 3.1: The
programme shall be implemented by the Commission. This consists of the
verification of the compliance with the conditions for payment and the payment
of the amounts due for each installment, in conformity with this financing
agreement.
7.2.2 In respect to Article 10: The
Beneficiary undertakes to apply its national foreign exchange regulations in a
non-discriminatory manner to the payments made under this financing agreement.
The foreign exchange transfers will be accounted for under the value date of
the notification of credit to the account of the State Centralized Fund for
Foreign Currencies opened at the State Bank of Vietnam (SBV) for this purpose
and held by the State Treasury of Viet Nam (STV). The exchange rate will be
announced by the Ministry of Finance on the date of conversion of funds into
Vietnam Dong (VND). Also under Article 10 of the General Conditions, "the
State of the Beneficiary" should be interpreted as "the Beneficiary".
7.3 In respect to the amount specified in
Article 2.1.1 (Budget support) of these Special Conditions, Article 4.1 of the
General Conditions shall be supplemented by the following: All payment requests
submitted by the Beneficiary in accordance with the provisions set out in the
Technical and Administrative Provisions (Annex II) shall be eligible for EU
financing provided that such requests are submitted by the Beneficiary during
the operational implementation phase.
7.4 Article 14.3 of the General Conditions
shall mutatis mutandis be applicable in relation to any practices of active or
passive corruption whatsoever in relation to the implementation of the
operation.
7.5 Articles 22 and 24 of the General
Conditions shall be supplemented by the following: This operation may be
subject to review in light of the implications of the Commission's revised
policy on budget support.
ARTICLE 8 - ENTRY
INTO FORCE OF THE FINANCING AGREEMENT
The financing agreement shall enter into
force on the date on which it is signed by the last party.
Done in four original copies in the English
language, two being handed to the Commission and two to the Beneficiary
|
FOR THE COMMISSION
Dirk Meganck
DIRECTOR
Directorate Asia, Central Asia and Pacific
Europeaid Development and Co-operation Directorate-General
|
FOR THE BENEFICIARY
Vuong Dinh Hue
MINISTER OF FINANCE
|
Signed in Brussels on 6 th December 2011 by
both parties
ANNEX I -
GENERAL CONDITIONS
TITLE I - PROJECT/PROGRAMME FINANCING
ARTICLE 1 - GENERAL PRINCIPLE
1.1 The EU's financial contribution shall be
limited to the amount specified in the Financing Agreement.
1.2 The provision of the EU financing shall
be subject to fulfillment of the Beneficiary's obligations under this Financing
Agreement.
1.3 The expenditure incurred by the Beneficiary
before the entry into force of the Financing Agreement is not eligible for the
EU financing.
ARTICLE 2 - COST OVERRUNS AND COVERING THEM
2.1 Individual overruns of the budget
headings of the Financing Agreement shall be dealt with by reallocating funds
within the overall budget, in accordance with Article 22 of these General
Conditions.
2.2 Wherever there is a risk of overrunning
the global amount set in the financing Agreement, the Beneficiary shall
immediately inform the Commission and seek its prior approval for the
corrective measures planned to cover the overrun, proposing either to scale
down the project/programme or to draw on its own or other non-EU resources.
2.3 If the project/programme cannot be scaled
down, or if the overrun cannot be covered either by the Beneficiary's own
resources or other resources, the Commission may, at the Beneficiary's duly
substantiated request, decide to grant additional EU financing. Should the
Commission take such a decision, the excess costs shall be financed, without
prejudice to the relevant EU rules and procedures, by the release of an
additional financial contribution to be set by the Commission.
TITLE II - IMPLEMENTATION
ARTICLE 3 - GENERAL PRINCIPLE
The project/programme shall be implemented
under the responsibility of the Beneficiary with the approval of the
Commission.
ARTICLE 4 - PERIOD OF EXECUTION
4.1 The period of execution of the Financing
Agreement shall comprise two phases:
- an operational implementation phase, in
which the principal activities are carried out This phase shall commence on the
entry into force of the Financing Agreement and end with the opening of the
closure phase;
- a closure phase, during which final audits
and evaluation are carried out and contracts and programme estimates for the
implementation of the Financing Agreement are technically and financially
closed. This phase shall end at the latest 24 months after the end of the
operational implementation phase.
4.2 Costs related to the principal activities
shall be eligible for EU financing only if they have been incurred during the
operational implementation phase. Costs related to final audits and evaluation
and closure activities shall be eligible up to the end of the closure phase.
4.3 Any balance remaining from the EU contribution
will be automatically cancelled six months after the end of the period of
execution.
4.4 In exceptional and duly substantiated
cases, a request may be made for the extension of the operational
implementation phase and correlativery of the period of execution. If the
extension is requested by the Beneficiary, the request must be made at least
three months before the end of the operational implementation phase and
approved by the Commission before that latter date.
4.5 In exceptional and duly substantiated
cases, and after the end of the operational implementation phase, a request may
be made for the extension of the closure phase and correlativery of the period
of execution. If the extension is requested by the Beneficiary, the request
must be made at least three months before the end of the closure phase and
approved by the Commission before that latter date.
TITLE III - PAYMENTS TO BE MADE BY THE
COMMISSION TO THIRD PARTIES
ARTICLE 5 - DEADLINE FOR PAYMENTS TO BE MADE
BY THE COMMISSION TO THIRD PARTIES
5.1 When the Commission is making payments
related to contracts implementing the Financing Agreement and awarded by the
Beneficiary, the Beneficiary shall undertake to provide the Commission with the
contractor's requests for payment no more than 15 calendar days after
registering an admissible payment request. The Beneficiary shall notify the
Commission of the date of registration of this request. The payment request is
not admissible if at least one essential requirement is not met. The time limit
for payments may be suspended by the Commission by informing the Beneficiary,
at any time during the period referred to above, that the payment request can
not be met, either because the amount is not due or because the appropriate
supporting documents have not been produced. If information conies to the
notice of the Commission which puts in doubt the eligibility of expenditure
appearing in a payment request, the Commission may suspend the time limit for
payment for the purpose of further verification, including an on-spot check, in
order to ascertain, prior to payment, that the expenditure is indeed eligible.
The Commission shall inform the Beneficiary as soon as possible.
5.2 The deadline referred to in paragraph 1
shall also apply when payment is conditional on approval of a report. In this
case, the request for payment can be considered admissible but the time limit
for payment shall begin only when the Beneficiary has approved the report,
either expressly, by notifying the contractor, or tacitly, by allowing the
contractual deadline for approval to expire without sending the contractor a
document formally suspending that deadline. The Beneficiary shall notify the
Commission of the date of approval of the report.
5.3 In the event of any delay in forwarding payment
requests attributable to the Beneficiary, the Commission shall not be obliged
to pay the contractor the late-payment interest provided for in contracts,
which will be payable by the Beneficiary.
TITLE IV - PAYMENTS TO BE MADE BY THE
BENEFICIARY TO THIRD PARTIES THROUGH PROGRAMME ESTIMATES AND DISBURSEMENT TO BE
MADE BY THE COMMISSION
ARTICLE 6 - GENERAL PRINCIPLE
6.1 When the Beneficiary is making payments
to third parties, programme estimates must be drawn up and adopted beforehand.
6.2 The programme estimate is a document
laying down the programme of measures to be carried out and the human and
material resources required, the corresponding budget and the detailed
technical and administrative implementing arrangements for decentralised
execution of a project/programme over a specified period by direct labour and/or
by means of public procurement and/or the award of grants.
6.3 All programme estimates implementing the
Financing Agreement must respect the procedures and standard documents laid
down by the Commission, in force at the time of the adoption of the programme
estimates in question.
ARTICLE 7 - DISBURSEMENT
7.1 The Commission shall transfer funds no
later than 45 calendar days after the date on which it registers an admissible
payment request from the Beneficiary. The payment request is not admissible if
at least one essential requirement is not met. The time limit for payments may
be suspended by the Commission by informing the Beneficiary, at any time during
the period referred to above, that the payment request can not be met, either
because the amount is not due or because the appropriate supporting documents
have not been produced. If information comes to the notice of the Commission
which puts in doubt the eligibility of expenditure appearing in a payment
request, the Commission may suspend the time limit for payment for the purpose
of further verification, including an on-spot check, in order to ascertain,
prior to payment, that the expenditure is indeed eligible. The Commission shall
inform the Beneficiary as soon as possible.
7.2 The Commission shall make payments to a
bank account denominated in euro and opened at a financial institution accepted
by the Commission.
7.3 The Beneficiary shall guarantee that
funds paid by the Commission by way of pre-financing can be identified in this
bank account.
7.4 Transfers in euro shall, if necessary, be
converted into the Beneficiary's national currency as and when payments have to
be made by the Beneficiary, at the bank rate in force on the day of payment by
the Beneficiary.
7.5 The funds paid by the Commission to this
bank account shall yield interest or equivalent benefits. The Beneficiary shall
notify the Commission of interest or equivalent benefits yielded by those funds
at least once a year.
7.6 Interest or equivalent benefits yielded
by the funds paid of more than two hundred fifty thousand euro shall be repaid
to the Commission within 45 days of receipt of the Commission's request
7.7 For a programme estimate which has not
given rise to any transfer of funds within three years of its signature, the
corresponding committed amount shall be cancelled.
TITLE V - AWARD OF CONTRACTS AND GRANTS
ARTICLE 8 - GENERAL PRINCIPLES.
8.1 All contracts implementing the Financing
Agreement must be awarded and implemented in accordance with the procedures and
standard documents laid down and published by the Commission for the
implementation of external operations, in force at the time of the launch of
the procedure in question.
8.2 In cases of decentralised contracts, the
Beneficiary will inform the Commission when a contractor has been guilty of
making false declarations, has made substantial errors or committed
irregularities and fraud, or has been found in serious breach of its
contractual obligations.
In such cases, without prejudice to the power
of the Commission to impose administrative and financial penalties according to
the Financial Regulation applicable to the general budget of the European Union
and the corresponding provisions applicable to the European Development Fund
(EDF), financial penalties to contractors mentioned in the provision on
"Administrative and Financial Penalties" of the General Conditions of
decentralised contracts shall be imposed by the Beneficiary in accordance with
its own rules and procedures, following an adversarial procedure and ensuring
the right of defence of the contractor.
ARTICLE 9 - DEADLINE FOR THE SIGNATURE OF THE
CONTRACTS IMPLEMENTING THE FINANCING AGREEMENT
9.1 The contracts implementing the Financing
Agreement shall be signed by both parties within three years of the entry into
force of the Financing Agreement. That deadline may not be extended.
9.2 The above provision shall not apply to
audit and evaluation contracts, which may be signed later, as well as to riders
to contracts already signed.
9.3 At the end of the three years of the
entry into force of the Financing Agreement, any balance for which contracts
have not been signed will be cancelled.
9.4 The above provision shall not apply to
any balance of the contingency reserve.
9.5 A contract which has not given rise to
any payment within three years of its signature shall be automatically
terminated and its funding cancelled.
ARTICLE 10 - ELIGIBILITY
10.1 Participation in invitations to tender
for works, supply or service contracts and in calls for proposals shall be open
on equal terms to all natural and legal persons of the Member States of the EU
and, in accordance with the specific provisions in the basic acts governing the
cooperation sector concerned, to all natural and legal persons of the
beneficiary third countries or of any other third country expressly mentioned
in those acts.
10.2 It may be decided, on the basis of the
specific conditions laid down in the basic acts governing the cooperation
sector concerned, to allow* third-country nationals other than those referred
to in paragraph 1 to tender for contracts.
10.3 Goods and supplies financed by the EU
and necessary for the performance of works, supply and service contracts and
procurement procedures launched by the grant beneficiaries for the execution of
the action financed must originate in countries eligible to participate on the
terms laid down in the previous two paragraphs, except when it is provided
otherwise in the basic act.
ARTICLE 11 - PUBLICATION OF INFORMATION
11.1 The Beneficiary undertakes to publish
each year in a dedicated and easily accessible place of its internet site the
title of each contract financed by the Financing Agreement, the name and
nationality of the grant beneficiary or successful tenderer as well as the
amount of the corresponding grant or contract.
11.2 If such internet publication is
impossible, the information shall be published by any other appropriate means,
including the official journal of the Beneficiary. Publication shall take place
during the first half of the year following the closure of the year in respect
of which the contracts and grants were awarded by the Beneficiary. The
Beneficiary shall communicate to the Commission the address of the place of
publication and reference shall be made to this address in the dedicated place
of the internet site of the Commission. If the information is published
otherwise, the Beneficiary shall give the Commission full details of the means
used.
TITLE VI - RULES APPLICABLE TO THE
PERFORMANCE OF CONTRACTS
ARTICLE 12 - ESTABLISHMENT AND RIGHT OF
RESIDENCE
12.1 Where justified by the nature of the
contract, natural and legal persons participating in invitations to tender for
works, supply or service contracts shall enjoy a provisional right of
establishment and residence in the Beneficiary's territory(ies). This right
shall remain valid for one month after the contract is awarded.
12.2 Contractors (including the grant
beneficiaries) and natural persons whose services are required for the
performance of the contract and members of their family shall enjoy similar
rights during the implementation of the project/programme.
ARTICLE 13 - TAX AND CUSTOMS PROVISIONS
13.1 The Beneficiary shall apply to
procurement contracts and grants financed by the EU the most favoured tax and
customs arrangements applied to States or international development
organisations with which it has relations.
13.2 Where a Framework Agreement is
applicable, which includes more detailed provisions on this subject these
provisions shall apply as well.
ARTICLE 14 - FOREIGN EXCHANGE ARRANGEMENTS
14.1 The Beneficiary undertakes to authorise
the import or purchase of the foreign currency necessary for the implementation
of the project. It also undertakes to apply its national foreign exchange
regulations in a non-discriminatory manner to the contractors allowed to
participate referred to in Article 10 of these General Conditions.
14.2 Where a Framework Agreement is
applicable, which includes more detailed provisions on this subject, these
provisions shall apply as well.
ARTICLE 15 - USE OF DATA FROM STUDIES
Where the Financing Agreement involves the
financing of a study, the contract related to this study, signed for the
implementation of the Financing Agreement, shall govern the ownership of that
study and shall include the right for the Beneficiary and the Commission to use
data in the study, to publish it or to disclose it to third parties.
ARTICLE 16 - ALLOCATIONS OF AMOUNTS RECOVERED
UNDERCONTRACTS
Amounts recovered from payments wrongly
effected, from financial guarantees lodged on the basis of procedures of award
of contracts or under a contract financed under this Financing Agreement, as
well as from financial penalties imposed by the Beneficiary on candidate, tenderer,
contractor or grant beneficiary, shall be returned to the Commission. The
damages granted to the Beneficiary shall also be returned to the Commission.
ARTICLE 17 - FINANCIAL CLAIMS UNDER CONTRACTS
The Beneficiary undertakes to confer with the
Commission before taking any decision concerning a request for compensation
made by a contractor and considered by the Beneficiary to be justified in whole
or in part. The financial consequences may be borne by the EU only where the
Commission has given its prior approval. Such prior approval is also required
for any use of funds committed under the present Financing Agreement to cover
costs arising from disputes relating to contracts.
TITLE VII - GENERAL AND FINAL PROVISIONS
ARTICLE 18 - VISIBILITY
18.1 Every project/programme financed by the
EU shall be the subject of appropriate communication and information
operations. These operations shall be defined under the responsibility of the
Beneficiary with the approval of the Commission.
18.2 These communication and information
operations must follow the rules laid down and published by the Commission for
the visibility of external operations in force at the time of the operations.
18.3 In order to comply with international
agreements on Aid Transparency and implement the 2008 Accra Agenda for Action,
the content of this Financing Agreement and its annexes may be published.
ARTICLE 19 - PREVENTION OF IRREGULARITIES,
FRAUD AND CORRUPTION
19.1 The Beneficiary undertakes to check
regularly that the operations financed with the EU funds have been properly
implemented. It shall take appropriate measures to prevent irregularities and
fraud and. if necessary, bring prosecutions to recover funds wrongly paid.
19.2 "Irregularity" shall mean any
infringement of the Financing Agreement, implementing contracts and programme
estimates or of EU law resulting from an act or omission by an economic
operator, which has, or would have, the effect of prejudicing the general
budget of the EU or the European Development Fund (EDF), either by reducing or
losing revenue accruing from own resources collected directly on behalf of the
EU, or by an unjustified item of expenditure.
"Fraud" shall mean any intentional
act or omission concerning:
- the use or presentation of false, incorrect
or incomplete, statements or documents which has as its effect the
misappropriation or wrongful retention of funds from the general budget of the
EU or the EDF;
- non-disclosure of information in violation
of a specific obligation, with the same effect;
- the misapplication of such funds for
purposes other than those for which they are originally granted.
19.3 The Beneficiary shall immediately inform
the Commission of any element brought to its attention which arouses suspicions
of irregularities or fraud and of any measure taken to deal with them.
19.4 The Beneficiary shall immediately inform
the Commission of the name of the economic operators whom have been the subject
of a judgment which has the force of res judicata for fraud, corruption,
involvement in a criminal organisation or any other illegal activity
detrimental to the EU's financial interests.
19.5 The Beneficiary undertakes to take every
appropriate measure to remedy any practices of active or passive corruption
whatsoever at any stage of the procedure for the award of contracts or grants
or in the implementation of the related contracts. "Passive
corruption" shall mean the deliberate action of an official, who, directly
or through an intermediary, requests or receives advantages of any kind whatsoever,
for himself or for a third party, or accepts a promise of such an advantage, to
act or refrain from acting in accordance with his duty or in the exercise of
his functions in breach of his official duties, which has. or would have, the
effect of harming the EU's financial interests. "Active corruption"
shall mean the deliberate action of whosoever promises or gives, directly or
through an intermediary, an advantage of any kind whatsoever to an official,
for himself or for a third party, to act or refrain from acting in accordance
with his duty or in the exercise of his functions in breach of his official
duties, which has, or would have, the effect of harming the EU's financial
interests.
ARTICLE 20 - VERIFICATIONS AND CHECKS BY THE
COMMISSION, THE EUROPEAN ANTI-FRAUD OFFICE (OLAF) AND THE EUROPEAN COURT OF
AUDITORS
20.1 The Beneficiary agrees to the
Commission, OLAF and the European Court of Auditors conducting documentary and
on-the-spot checks on the use made of EU funding under the Financing Agreement
(including procedures for the award of contracts and grants) and carrying out a
full audit if necessary, on the basis of supporting documents of accounts and
accounting documents and any other documents relating to the financing of the
project/programme, throughout the duration of the agreement and for seven years
after the date of the last payment.
20.2 The Beneficiary also agrees that OLAF
may carry out on-the-spot checks and verifications in accordance with the
procedures laid down by EU law for the protection of the EU"s financial
interests against fraud and other irregularities.
20.3 To that end, the Beneficiary undertakes
to grant officials of the Commission. OLAF and the European Court of Auditors
and their authorised agents access to sites and premises at which operations
financed under the Financing Agreement are carried out, including their
computer systems, and to any documents and computerised data concerning the
technical and financial management of those operations, and to take every
appropriate measure to facilitate their work. Access by authorised agents of
the Commission, OLAF and the European Court of Auditors shall be granted on
conditions of strict confidentiality with regard to third parties, without
prejudice to public law obligations to which they are subject. Documents must
be accessible and filed in a manner permitting easy inspection, the Beneficiary
being bound to inform the Commission, OLAF or the European Court of Auditors of
the exact location at which they are kept.
20.4 The checks and audits described above
shall also apply to contractors and subcontractors who have received EU
funding.
20.5 The Beneficiary shall be notified of
on-the-spot missions by agents appointed by the Commission, OLAF or the
European Court of Auditors,
ARTICLE 21 - CONSULTATION BETWEEN THE
COMMISSION AND THE BENEFICIARY
21.1 The Beneficiary and the Commission shall
consult each other before taking any dispute relating to the implementation or
interpretation of this Financing Agreement further.
21.2 The consultation may lead to the
amendment, suspension or termination of the Financing Agreement.
ARTICLE 22 - AMENDMENT OF THE FINANCING
AGREEMENT
22.1 Any amendment to the Special Conditions.
Annex II and Annex HE to the Financing Agreement shall be made in writing and be
the subject of an addendum.
22.2 If the request for an amendment comes
from the Beneficiary, the latter shall submit that request to the Commission at
least three months before the amendment is intended to enter into force, except
in cases which are duly substantiated by the Beneficiary and accepted by the
Commission.
22.3 For technical adjustments which do not
affect the objectives and results of the project/programme and alterations in
matters of detail which do not affect the technical solution adopted, and with
no reallocation of funds, the Beneficiary shall inform the Commission of the
amendment and its justification in writing as soon as possible and apply that
amendment.
22.4 The use of contingency funds shall be
subject to the Commission's prior written approval.
22.5 The specific cases of the extension of
the operational implementation phase or closure phase are governed by Article 4
(4) and (5) of these General Conditions.
22.6 If the Beneficiary ceases to satisfy the
decentralisation criteria laid down, where relevant, in the Special Conditions
and without prejudice to Articles 23 and 24 of these General Conditions, the
Commission may decide to retake the financial implementation tasks entrusted to
the Beneficiary in order to continue the implementation of the project/programme
on behalf, and for the account of the Beneficiary after informing the later in
written form.
ARTICLE 23 - SUSPENSION OF THE FINANCING
AGREEMENT
23.1 The Financing Agreement may be suspended
in the following cases:
- The Commission may suspend the
implementation of the Financing Agreement if the Beneficiary breaches an
obligation under the Financing Agreement, and notably if it ceases to satisfy
the decentralisation criteria laid down, where relevant, in the Special
Conditions.
- The Commission may suspend the Financing
Agreement if the Beneficiary breaches an obligation relating to respect for
human rights, democratic principles and the rule of law and in serious cases of
corruption.
- The Financing Agreement may be suspended in
cases of force majeure, as defined below. "Force majeure" shall mean
any unforeseeable and exceptional situation or event beyond the parties'
control which prevents either of them from fulfilling any of their obligations,
not attributable to error or negligence on their part (or the part of their
contractors, agents or employees) and proves insurmountable in spite of all due
diligence. Defects in equipment or material or delays in making them available,
labour disputes, strikes or financial difficulties cannot be invoked as force
majeure. A party shall not be held in breach of its obligations if it is
prevented from fulfilling them by a case of force majeure of which the other
party is duly informed. A party faced with force majeure shall inform the other
party without delay, stating the nature, probable duration and foreseeable
effects of the problem, and take any measure to minimise possible damage.
23.2 No prior notice shall be given of the
suspension decision.
23.3 As a precautionary measure, payments referred
to in Article 7(1) of these General Conditions shall be suspended.
23.4 When the suspension is notified, the
consequences on the ongoing contracts and programme estimates or contracts and
programme estimates to be signed will be indicated.
23.5 A suspension of the Financing Agreement
is without prejudice to the suspension of payments by the Commission for the
sake of ensuring sound financial management or protecting the EU's financial
interests.
ARTICLE 24 - TERMINATION OF THE FINANCING
AGREEMENT
24.1 If the issues which led to the
suspension of the Financing Agreement have not been resolved within a maximum
period of four months, either parry may terminate the Financing Agreement at
two months' notice.
24.2 Where a Financing Agreement has not
given rise to any payment within three years of its signature or no
implementing contract has been signed within this period, that Financing
Agreement will be terminated.
24.3 When the termination is notified, the
consequences on the ongoing contracts and programme estimates or contracts and
programme estimates to be signed will be indicated.
ARTICLE 25 - DISPUTE-SETTLEMENT ARRANGEMENTS
25.1 Any dispute concerning the Financing
Agreement which cannot be settled within a six-month period by the
consultations between the parties provided for in Article 21 of these General
Conditions may be settled by arbitration at one of the parties' request.
25.2 In this case the parties shall each
designate an arbitrator within 30 days of the request for arbitration. Failing
that, either party may ask the Secretary-General of the Permanent Court of
Arbitration (The Hague) to designate a second arbitrator. The two arbitrators
shall in their turn designate a third arbitrator within 30 days. Failing that,
either party may ask the Secretary-General of the Permanent Court of
Arbitration to designate the third arbitrator.
25.3 Unless the arbitrators decide otherwise,
the procedure laid down in the Permanent Court of Arbitration Optional Rules
for Arbitration Involving International Organisations and States shall apply.
The arbitrators' decisions shall be taken by a majority within a period of
three months.
25.4 Each party shall be bound to take the
measures necessary for the application of the arbitrators' decision.
ANNEX II
TO FINANCING AGREEMENT N° DCI-ASIE/2010/20587
TECHNICAL AND
ADMINISTRATIVE PROVISIONS
|
BENEFICIARY COUNTRY/REG10S
|
VIETNAM
|
|
REQUESTING
AUTHORITY
|
GOVERNMENT OF
VIETNAM
|
|
BUDGET HEADING
|
19.100101
|
|
TITLE
|
Health Sector
Policy Support Programme (HSPSP)
|
|
TOTAL COST
|
€39 250 000
|
|
Aid method /
management
mode
|
Sector Policy Support Programme:
- Sector budget support (centralised
management)
|
|
DAC-CODE
|
12110
|
Sector
|
Health policy and administrative support
|
1. INTERVENTION
1.1. Objectives
The overall objective is to contribute
to the improvement of the health status of the population especially the poor
and most vulnerable through a more effective, efficient and equitable health
system. The specific objective is to support the implementation of the
five year health plan (2011-2015) of the Government of Vietnam, which addresses
the 6 building blocks of a health system (WHO). Five of them are considered as
inputs: 1. Governance; 2. Health financing; 3. Biological products,
pharmaceuticals, vaccines, medical equipment and technologies; 4. Health
workforce; 5. Health information system, and 6: Service Delivery is included as
the central process.
The activities of the 5-year health plan
2011-2015 will have positive environmental impacts. It is expected that it will
address, among others, the issue of hospital waste management and establish
norms for climate change proofing.
With regard to sender equality the health
plan is expected to strongly emphasise the right of women to quality
reproductive health services as a strengthening of current gender equality
policy.
The health plan is also expected to
strengthen good governance by enhancing the capacity of the Ministry of Health
(MoH) to exercise its stewardship role and by strengthening procedures relevant
to transparency of management in the health sector.
1.2. Expected results and Main activities
The 3-year Health Sector Policy Support
Programme (HSPSP) contributes to the achievement of results of the 5-year plan
(2011-2015). The European Commission envisages continued support, through the
same modality, to the implementation of the 5-year plan under the MTP
2011-2013.
The expected results will be linked to the
building blocks of Vietnam's health care system:
The conceptual framework of a health system,
developed by WHO[1],
has been adapted by MoH into 5 building blocks: (1) health workforce; (2)
financing; (3) information; (4) medical products, vaccines and medicines; (5)
leadership and governance, which contribute to the provision of good quality
services for all people. Process indicators, identified by this framework, arc
accessibility, coverage, quality, equity and efficiency. Upper level outcomes
are improved people's health status, social equity and national socio-economic
development[2].
The expected results of the HSPSP are yearly
progress against the 19 indicators (See appendix 3) of the 5 years health plan
covering both inputs (number of doctors, pharmacists, midwives, hospital beds,
etc..) and outputs/outcomes (percentage of vaccinations, insurance coverage,
mortality rates, child malnutrition, AIDS prevalence, etc.). The plan also
foresees that additional indicators should be monitored and supervised to
capture an overview and insights of the health sector, including indicators of
health service provision; hearth status, health human resources, health
information system, drugs and medical equipment and health financing against
which progresses are also expected.
The main activities that will be undertaken
under the HSPSP, besides provision of budget support funds, are linked to the sector
policy dialogue activities (Health Partnership Group - HPG, Joint Annual Health
Review - JaHR, others), donors coordination and the assessment of the
disbursement requests.
The EU Delegation to Vietnam will in
particular undertake the following activities:
• take pan actively in the joint sector
performance assessment (the JAHR/ and retain the responsibility for mobilising
adequate technical assistance from the Health Sector Capacity Support Project
in support of the assessment, upon the request of the Government;
• contribute to and coordinate the dialogue
among European Union Member States and other donors and Government around the
health sector policy and implementation of 5 years health plan; and undertake
visibility and communication activities.
1.3. Duration
The execution period of the Agreement will be
72 months. This execution period will comprise 2 phases under the conditions
provided for in article 4.1 of the General Conditions (Annex 1 of the present
Agreement):
1. Operational implementation phase that
starts from the entry into force of the financing agreement and will have a
duration of 48 months.
2. Closure phase of a duration of 24 months
that starts from the expiry" date of the operational implementation phase.
Pursuant to article 6 of the General
Conditions (Annex I of the present Agreement), the contracts implementing the
financing agreement shall be signed at (he latest within three years of the
entry into force of the financing agreement (except audit and evaluation). That
deadline may not be extended.
2. IMPLEMENTATION
2.1 Implementation method and Procurement and
Payment clauses
The present Programme will be implemented
through a sector budget support modality. Therefore the method of
implementation is direct centralized management with the signature of a
Financing Agreement. The budget support is untargeted. The Ministry of Finance
will confirm that the relevant account has been credited and provide
documentary evidence of the transfer, including the exchange rate used.
All contracts implementing the visibility
activities (100 000 EURO) must be awarded and implemented in accordance with
the procedures and standard documents laid down and published by the Commission
for the implementation of external operations, in force at the lime of the
launch of the procedure in question.
Participation in the award of contracts for
the Programme shall he open to all natural and legal persons covered by the PCI
regulation
2.2. Budget and calendar
2.2.1 Budget
The EU direct budget support consists of a
commitment of 39 150 000 EURO. This amount will be disbursed in three (3)
annual tranches as budget support and 100 000 EURO will be retained by EU
Delegation for communication and visibility- activities. The resources provided
should make it possible for the beneficiary Government to achieve the targets
specified in the criteria for disbursement (See 2.3.2).
The indicative budget breakdown of the
overall amount by main components is presented in the table below:
Table 1 - Budget
|
|
Amount
(in euro)
|
EU contribution
(in euro)
|
Other donors
(in euro)
|
Sector/ministry
budget/funding over programme duration
(in euro)
|
|
Budget Support
|
39 150 000
|
39 150 000[3]
|
|
7 609 470 945[4]
|
|
Technical Cooperation*
|
0
|
0
|
|
|
|
Visibility
|
100 000
|
100 000
|
|
|
* Technical Cooperation complementary to the
Budget Support is provided separately as part of the Health Sector Capacity'
Support Project (DCI-ASIE/2008/19694).
2.2.2 Calendar
The operational implementation phase of the
HSPSP is 48 months from the date of signature of the Financing Agreement.
The disbursement of the sector budget support
is foreseen over three fiscal years, spanning over 2012, 2013 and 2014.
In 2012, the annual tranche will be composed
of one base instalment. In 2013 and 2014, the annual tranches will be made of a
base and a bonus instalment. Criteria for disbursement of the instalments are
described at point 2.3.2.
In order to assure the predictability of the
EU disbursements, the assessment will take place, for the 2013 and 2014 fiscal
years, before the end of September of the previous year.
The schedule for disbursement of the budget
support instalments is foreseen as follows:
Table 2 - Calendar
|
Budget Support Instalments
|
1st half of 2012
|
1st quarter 2013
|
lst quarter 2014
|
|
Base instalment
|
€ 10 000 000
|
€ 10 000 000
|
€ 10 000 000
|
|
Bonus instalment
|
|
€ 4 000 000
|
€ 5 150000
|
|
TOTAL
|
€ 10 000 000
|
€ 14 000 000
|
€15 150 000
|
|
GRAND TOTAL
|
|
|
€ 39 150 000
|
2.3 Performance monitoring and criteria for
disbursement
2.3.1. Description of performance monitoring
arrangements:
The Ministry of Health is responsible for the
continued reforms towards sector-wide management, as agreed between the
Ministry and key Development Partners in the Statement of Intent of the Health
Sector. This reform process is currently supported by EU's Health Sector
Capacity Support Project in close collaboration with other Development
Partners, members of the Health Partnership Group (HPG).
The Ministry of Health is responsible for
evaluating the 5-year plan implementation and annual health indicators using it
as a foundation for subsequent planning exercises. Every year the Ministry of
Health will work with the HPG to conduct a Joint Annual Health Review (JAHR),
laying out the foundation for health policy making and planning, and mobilizing
international aid for the sector. The JAHR report will be used to assess the
annual health sector performance.
Data for health indicators will be collected
by the Ministry through annual health statistics and other reliable sources and
will be provided timely to the HPG for the regular monitoring of the 5 years
health plan and the production of the JAHR report.
The JAHR process is a joint mechanism for the
measurement of and dialogue on (i) sector performance; and (ii) implementation
progress of the 5-year plan; as well as the prioriry setting mechanism for the
annual operational plans. The MoH will make sure that the draft JAHR report
will be available before the end of July every year so that its recommendations
could fit into the sector's planning cycle, and some of its data can be used
for the assessment of disbursement criteria for the budget support.
2.3.2. Criteria for disbursement
General criteria for the disbursement of all
instalments of budget support:
All annual instalments release will be based
on a positive assessment of continued fulfilment of the following three (03)
eligibility' criteria:
• Vietnam's stability oriented Macro-economic
policy in maintained and the medium-term prospects do not put at risk the
.sector objectives.
• Vietnam's reform plans for public finance
management are sufficiently credible and relevant and arc implemented
satisfactorily, in particular:
a. A pilot Public Expenditure and Financial
Accountability (PEFA) assessment is undertaken before the assessment of the
first instalment In addition.
b. Medium-Term Expenditure Framework (MTEF)
preparation is carried out in the context of the revised state budget law and
its eventual provisions for a national MTEF.
Clear progress in these areas from year to
year will be a necessary condition for release of further instalments.
• A clearly defined sector policy Is in place
and implemented satisfactorily. The "National strategy for peoples health
protection, care and improvement and master plan for health sector development,
2011-2020, vision 2030", will need to be finalised and approved by the
Government. By the end of 2010, the 5-year national health plan 2011-2015 was
adopted by the Minister of Health. To ensure the operationalisation of the
plan, in line with the national sector strategy, the following actions will
constitute concrete milestones for the assessment of the criterion on sector
policy.
a. The Ministry of Health ensures that an
harmonization process of operational planning and budgeting guidelines for
provinces is put in place in consultation with a Technical Working Group for
Planning and Finance, established under the Health Partnership Group.
b. Formulation of provincial operational
plans and comprehensive budgets in a number of provinces, using the
above-mentioned guidelines, and steps towards consolidation at national level.
c. The JAHR process will monitor annually
sector performance and the implementation progress of the 5-year Plan, by
establishing, among others, indicators for monitoring the main sector priorities
not covered in the list of 19 indicators included in the 5-year Plan, including
baselines and target values.
d. The health sector improves its capacity
for evidence-based policy formulation, by upgrading its Management Information
Systems (HM1S).
In 2012, 2013 and 2014, the base instalment
will be disbursed on the basis of a positive assessment of the progress on the
above-mentioned general criteria. Justification of incremental progress against
the above-mentioned milestones shall be part of the attachments to each request
for disbursement introduced by the Ministry of Finance.
Specific criteria for disbursement of bonus
instalments of budget support:
Additional specific criteria for the
disbursement of the bonus instalments have been agreed in dialogue between the
Government of Vietnam (GoV) and the Commission and are detailed in appendix I
to the present Technical and Administrative Provisions.
In 2013 (year N+1), disbursement for the 1st
bonus instalment will be made against the positive assessment by the Commission
based on evidences submitted by the Ministry of Finance, on behalf of the
Beneficiary Government and the JAHR report (see criteria in appendix 1).
In 2014 (year N+2), disbursement for the 2nd
bonus instalment will be made against the positive assessment by the Commission
based on evidences submitted by the Ministry of Finance, on behalf of the
Beneficiary Government, and the JAHR report (see criteria in appendix 1).
Analysis of the chosen performance indicators
in appendix 1 tells us that they are of adequate quality to justify their use
for the disbursement of budget support.
The chosen performance targets and indicators
specified in appendix 1 will apply for the duration of the programme. However,
in duly justified circumstances, the Ministry of Finance, in close consultation
with relevant Ministries and/or Agencies may submit a request to the EU
Delegation to Vietnam for the targets and indicators to be adapted. The changes
agreed to the targets and indicators may be authorised by exchange of letters
between the two parties. This procedure cannot be applied retroactively as in
order to be valid, such changes should have been agreed before the assessment
period.
2.3.3 Modalities for Disbursement
The Ministry of Finance (MoF), on behalf of
Beneficiary Government, is responsible for the collection of information and
figures, as referred above, necessary for the assessment of the criteria for
disbursement (See 2.3.2.), from the Ministry of Health; from Vietnam Social
Security; from relevant Provinces; and from relevant Departments of the
Ministry of Finance. To ensure that the EU Delegation and EU Headquarters are
able to confirm in September the amount to be disbursed the following year,
relevant information and figures for the assessment of those criteria will be
available from the Ministry of Finance in July every year, attached to a formal
request for payment
The EU Delegation will assess the information
provided by the Ministry of Finance and the JAHR report, verify if the criteria
for disbursement have been fulfilled and recommend to its Headquarters an
appropriate level of disbursement.
If the information has been provided in a
timely manner, the EU Delegation could confirm in September by means of a
formal letter to the MoF the level of its intended disbursement to allow for
the integration of this information in the budgetary decision of the National
Assembly (end of November annually).
Additional details of disbursement modalities
are provided in appendix 1 and 2 of the present Technical and Administrative
Provisions.
3. MONITORING, EVALUATION AND AUDIT
Monitoring, reviewing and evaluating progress
along the life of the Programme is based on the improved dialogue established
by HPG in line with the lead taken by the Government in improving donors"
coordination in the context of the Hanoi Core Statement on Aid Effectiveness.
Progress of the Health Sector and
achievements of the five year plan will be integrated in the JAHR process and
undertaken jointly by the HPG. Resources for this from the Commission side
could be taken from the short term Technical Assistance (TA) resources of the
Health Sector Capacity Support project (HSCSP).
A specific evaluation of the sector budget
support operation could be undertaken, if deemed necessary, by the Commission.
4. COMMUNICATION AND VISIBILITY
The programme will comply with the guidelines
of the "Visibility Manual of the EU applicable to external actions".
A signing ceremony followed by a press conference will take place at the
signature of the Financing Agreement, workshops and/or dissemination of
programme documentation will be organised. During the programme implementation,
the EU Delegation to Vietnam will promote consistent and relevant actions of
information in collaboration with the Ministry of Health of Vietnam.
APPENDICES
1- Performance criteria and indicators used
for disbursement of bonus instalments
2- Disbursement arrangements and timetable
3- Basic health targets during 2011-2015
Appendix1:
Performance criteria and indicators used for disbursement of bonus instalments (budget support)
Criterion 1
• Health expenditure, sourced from State
budget, increases faster than the annual increase of State expenditure in
genera), and an increase also takes place in poorest provinces.
Lint; with national policy:
The indicator refers to the implementation of
Resolution 18 of the National Assembly, which request the GoV to increase its
expenditures for health faster than the annual increase of state expenditure.
It also looks at the same indicator at provincial level, in order to verify the
pro-poor character (equity) of the budget allocation.
Method of calculation:
The Delegation will base its assessment on
both of the following sources:
(a) Specific report by the MoF on the planned
recurrent expenditure in the Health sector. This report will specify the
different components of this figure, among which the figures published on the
MoF website.
(b) The figures collected and provided by the
MoF on the planned provincial recurrent health expenditure, approved by
Provincial People's Councils, for the selected 9 poorest provinces (see table
below).
Formula for sub-criterion (a) is as follow:
on estimated % increase of planned recurrent health expenditure from State
budget (numerator) in comparison with estimated % increase of planned recurrent
State expenditure (denominator) between year N-1 and year N.
|
planned
|
2011
|
2012
|
% increase
|
|
Recurrent health expenditure from State
budget
|
A
|
A'
|
A'-A = figure (1)
A
|
|
Recurrent State expenditure
|
B
|
B’
|
B'-B = figure (2)
B
|
Baseline figure for sub-criterion (a) is as
follow:
|
planned
|
2011 (billion VND)
|
|
Aggregated recurrent State budget
expenditure
Recurrent health expenditure from State
budget
|
505,960
43,200
|
Formula for sub-criterion (b) is as follow:
figure for year N > figure for year N-1 at provincial level
Baseline figure for sub-criterion (b) is as
follow:
|
9 provinces
|
Planned recurrent
health expenditure, approved by Provincial People's Council, from provincial
State budget
Planned for 2010:
(million VND)
|
Planned recurrent
health 1 expenditure, approved by Provincial People's Council, from
provincial State budget
Planned for 2011:
(million VND)
|
|
Dien Bien
|
105,299
|
324,402
|
|
Son La
|
206,574
|
572,200
|
|
Lai Chau
|
135,728
|
305,821
|
|
Gia Lai
|
286,500
|
588,146
|
|
Kon Tum
|
96,828
|
264,698
|
|
Bac Kan
|
81,450
|
217,722
|
|
Yen Bai
|
168,863
|
382,976
|
|
Vinh Long
|
136,635
|
210,226
|
|
Kien Giang
|
208,899
|
462,561
|
Target:
The sub-criterion (a) is considered 10 be
fully met if figure (I) > figure (2)
The sub-criterion (b) is considered to be
fully met if figure for year N > figure for year N-1 for all provinces.
Partial achievement will be treated as described in appendix 2.
Timing for availability:
The data for year N-1 will be available
(a) at the latest by July of year N for
planned recurrent health expenditure from State budget
(b) at the latest by July of year N for
planned recurrent health expenditure from provincial State budget and will be
attached to the formal request for instalment release as supporting
document'cvidcncc by the MoF. MoF will (i) coordinate internally among its
relevant departments; and (ii) liaise with the Provincial People's Council of
the above-mentioned provinces to ensure the timely availability of those data.
Criterion 2
• Health insurance coverage increases on
annual basis.
Link with national policy:
The indicator is strictly related to
implementation of the Health Insurance Law, which sets the objective of
annually-increased coverage of health insurance, managed by Vietnam Social
Security (VSS), until the full coverage of the entire population.
Method of calculation: The Delegation will
base its assessment on: (a) a formal statement from central VSS on the increase
of health insurance coverage during the previous year. The increase shall be
measured as follows: number of persons having health insurance card. See
baseline below for central VSS:
|
|
2005
|
2006
|
2007
|
2008
|
2009
|
|
Estimated population, in million
|
81.3
|
83.0
|
83.9
|
84.8
|
85.8
|
|
Estimated number of insured persons =
estimated number of cards, in million
|
21.8
|
36.9
|
35.7
|
39.4
|
49.2
|
|
Percentage of population insured
|
27%
|
44%
|
43%
|
46%
|
57.3%
|
Target:
|
|
2010
|
2011
|
2012
|
2013
|
2014
|
|
Estimated population, in million
|
86.7
|
87.7
|
88.6
|
80.6
|
90.6
|
|
Estimated number of cards, in million
|
50.7
|
56.2
|
59
|
62
|
68
|
|
Percentage of population insured
|
58.5%
|
64.1%
|
66.6%
|
69.2%
|
75.1%
|
Timing for availability:
The data for year N-1 will be available at
the latest by July of year N, to be included in a single submission of annual
request for instalment release and supporting document/evidence by the MoF. MoF
will liaise with central VSS to ensure the timely availability of those data.
Criterion 3
• Comprehensive annual sector operational
plan and budget are available in a number of pilot
provinces of the Health Sector Capacity Support Project.
Link with national policy:
The indicator is related to the objective of
strengthening Stewardship and Regulatory Functions of MoH. It monitors the
gradual integration of decentralized operational planning as part of overall
sector planning.
Method of calculation:
Progress reports of the Health Sector
Capacity Support Project (HSCSP) will inform about the number of pilot
provinces with comprehensive annual sector operational plan and budget. Quality
of the provincial plan will be assessed by an independent short-term expert,
recruited under HSCSP, using the criteria and methodology of the Joint
Assessment of National Strategies (JANS).
Target:
2012: at least 1 province
2013: at least 2 provinces
Timing for availability:
The report shall be available by July 2012
and 2013, to be included in a single submission of annual request for
instalment release and supporting document/evidence by the MoF. MoF will liaise
with the MoH/HSCSP to ensure the timely availability of the report.
Criterion 4
• The monitoring framework of the 5-year plan
is integrated in the JAHR process. In other words, as from 2011 - the JAHR
report will have a chapter reporting on the implementation progress of the
5-year plan, and analysing progress on the 19 indicators included in the plan
and on additional indicators to monitor priorities of the plan defined by the
JAHR.
Link with national policy:
The indicator is strictly in line with the
Sol, namely milestone number 8, which aims harmonise and align donors' support.
Method of calculation:
The JAHR report will have a chapter reporting
on the implementation progress of the 5-year plan, on which dialogue will be
opened at HPG meeting under the leadership of the MoH.
Target:
The criterion is fulfilled for the JAHR 2012
and 2013.
Timing for availability:
The draft JAHR report of acceptable quality,
with a chapter reporting the implementation progress of the 5-year plan, will
be available at the latest by July each year, to be included in a single
submission of annual request for instalment release and supporting document/evidence
by the MoF. MoF will liaise with the MoH to ensure the timely availability of
the report
Criterion 5
The following indicators are selected from
the 5-year national plan (2011-2015) (ref. page 36) and from the JAHR
monitoring framework.
|
|
Indicators
(national level)
|
2010 (baseline)
|
2011
|
2012
|
2013
|
2014
|
|
1.
|
Infant Mortality Rate (per 1,000 live
births)
|
15.8
|
15.4
|
15.1
|
14.8
|
14.4
|
|
2.
|
Proportion of deliveries assisted by
trained health practitioners
|
97.1
|
97.5
|
98.0
|
98.5
|
98.9
|
|
3.
|
Under 5 child malnutrition (weight for age)
in %
|
17.5
|
17.0
|
16.5
|
16.0
|
15.5
|
|
|
Indicators
(provincial level)
|
2010 (baseline)
|
2011
|
2012
|
2013
|
2014
|
|
1 .Infant Mortality Rate (per 1,000 live
births)
|
|
|
1.1. Dien Bien
|
37.3
|
37.2
|
37.1
|
37.0
|
36.9
|
|
|
1.2. Son La
|
25.6
|
24.1
|
23.3
|
22.6
|
22.0
|
|
|
1.3. Lai Chan
|
46.1
|
45.6
|
45.4
|
45.3
|
45.0
|
|
|
1.4.GiaLai
|
25.7
|
25.6
|
25.5
|
25.4
|
25.3
|
|
|
1.5. Kon Tum
|
38.1
|
38.0
|
37.9
|
37.8
|
37.7
|
|
|
1.6. Bac Kan
|
19.5
|
19.1
|
18.7
|
18.3
|
17.9
|
|
|
1.7.Yen Bai
|
26.5
|
25.4
|
24.7
|
24.4
|
24.2
|
|
|
1.8. Vinh Long
|
11.5
|
11.0
|
10.7
|
10.6
|
10.5
|
|
|
1.9. Kien Giang
|
13.6
|
13.5
|
13.4
|
13.3
|
13.2
|
|
2. Proportion of deliveries assisted by
trained health practitioners
|
|
|
2.1.Dien Bien
|
55.2
|
57.3
|
59.4
|
61.5
|
63.6
|
|
|
2.2. Son La
|
83.9
|
85.1
|
86.4
|
87.7
|
88.9
|
|
|
2.3. Lai Chau
|
62.7
|
62.9
|
63.0
|
63.1
|
63.2
|
|
|
2.4.GiaLai
|
88.0
|
89.1
|
90.1
|
91.2
|
92.3
|
|
|
2.5. Kon Tum
|
72.3
|
74.6
|
77.0
|
79.3
|
81.7
|
|
|
2.6. Bac Kan
|
97.4
|
97.4
|
97.5
|
97.5
|
97.6
|
|
|
2.7. Yen Bai
|
82.3
|
83.4
|
84.5
|
85.6
|
86.6
|
|
|
2.8. Vinh Long
|
99.8
|
99.8
|
99.9
|
99.9
|
100.0
|
|
|
2.9. Kien Giang
|
99.7
|
99.8
|
99.9
|
99.9
|
99.9
|
|
3. Under 5 child malnutrition (weight for
age) in %
|
|
|
3.1. Dien Bien
|
22.5
|
22.1
|
21.6
|
21.2
|
20.7
|
|
|
3.2. Son La
|
26.5
|
26.0
|
25.4
|
24.9
|
24.4
|
|
|
3.3. Lai Chau
|
26.5
|
26.0
|
25.4
|
24.9
|
24.4
|
|
|
3.4. Gia Lai
|
26.3
|
25.8
|
25.2
|
24.7
|
24.2
|
|
|
3.5. Kon Tum
|
28.3
|
27.7
|
27.2
|
26.6
|
26.0
|
|
|
3.6. Bac Kan
|
25.4
|
24.9
|
24.4
|
23.9
|
23.4'
|
|
|
3.7.Yen Bai
|
22.8
|
22.3
|
21.9
|
21.4
|
21.0
|
|
|
3.8. Vinh Long
|
18.8
|
18.4
|
18.0
|
17.6
|
17.1
|
|
|
3.9. Kien Giang
|
17.0
|
16.6
|
16.3
|
15.9
|
15.5
|
Link with national policy:
The selected indicators represent a strict
link to the implementation of 5-year plan's building blocks as part of the
measurement of achievement of relevant objectives of the plan, with particular
attention of the Government to addressing the disparities in those indicators
between the poorest regions and the rest of the country.
Method of calculation:
These indicators' targets will be jointly assessed
mid-2013 and reported in the JAHR report 2013.
Timing for availability:
The JAHR report 2013, with a chapter
reporting the implementation progress of the 5-year plan should include
information on the national figures and provincial figures require specific
reporting, both of which will be available at the latest by July 2013 for the
retrospective data of 2012, to be included in a single submission of annual
request for instalment release and supporting document/evidence by the MoF. MoF
will liaise with the MoH's Department of Planning and Finance (including health
statistics division) and the 9 selected provinces to ensure the timely
availability of those figures.
Summary of reporting requirements
|
Agency
|
|
|
MoH
|
JAHR report 2012 and 2013
HSCSP progress report 2012 and 2013
HSCSP consultant JANS report on provincial
plan(s) for 2012 and 2013
Statistics on 3 indicators at national and
provincial level in 2013
|
|
Central/Provincial VSS
|
HI coverage statement
|
|
MoF
|
Information on recurrent expenditure for
health from State budget and disaggregated recurrent expenditure for health
from provincial State budget in 9 poorest provinces
PFM progress report
|
|
MPI
|
Report on Macro-Economic policy
|
MoF, represeniing Beneficiary Government,
will coordinate the preparation of all reports and collection of necessary
information and submit to the Delegation together with a request for payment,
sent before the end of 2011, July 2012 and July 2013.
Appendix 2:
Disbursement arrangements and timetable (budget support)
1. Responsibilities
On the basis of the criteria for disbursement
set out in this Financing Agreement, the Ministry of Finance of Vietnam shall
make a formal request to the Commission for each instalment disbursement on the
dates set out in Table A below, including (i) the fullest possible analysis and
justification for the release of funds, including supporting documentation
which should be annexed; and (ii) a duly signed Financial Identification Form
in order to facilitate subsequent payment.
2. Indicative disbursement timetable
An indicative disbursement timetable is set
out below.
Table A - Summary
indicative disbursement timetable
|
Type of instalment
|
Year 1 (2012)
|
Year 2 (2013)
|
Year 3 (2014)
|
TOTAL
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Q1
|
Q2
|
Q3
|
Q4
|
Q1
|
Q2
|
Q3
|
Q4
|
|
Base instalment
|
|
10M€
|
|
|
10M€
|
|
|
|
10m€
|
|
|
|
30M€
|
|
Bonus instalment
|
|
0
|
|
|
4M€
|
|
|
|
5.15 M€
|
|
|
|
9.15 M€
|
|
TOTAL
|
|
10 M€
|
|
|
14M€
|
|
|
|
15.15 M €
|
|
|
|
39.15 M€
|
3. General criteria for instalment release
The General Criteria for instalment release
set out below shall apply to the disbursement of all instalments and all
requests for instalment release shall be accompanied by supporting information
on this matter.
Table B - General
criteria for instalment release
|
Area
|
Condition
|
Source of
verification
|
|
Macroeconomic stability
|
Vietnam's stability oriented
Macro-economic policy is maintained and the medium-term prospects do not put
at risk the sector objectives:
The condition refers to satisfactory
progress in the maintenance of a stability-oriented macroeconomic policy as
evidenced, inter alia, by the Article IV of annual IMF report, which is
available in May on annual basis. Where the review of an IMF programme is
delayed or temporarily suspended or lapses, the Commission may still take tie
decision to disburse budget support if it judges that stability-oriented
macroeconomic policy is still being implemented, following communications as
appropriate with the partner country and the IMF.
|
International Monetary Fund (IMF), MP1
report and other sources
|
|
Public Finance Management
|
Vietnam's reform plans for public finance
management are sufficiently credible and relevant and are implemented
satisfactorily, in particular:
• A pilot Public Expenditure and Financial
Accountability (PEFa) assessment is undertaken before the assessment of the
first instalment. In addition.
|
Ministry of Finance of Vietnam (MoF) aad
multi-lateral dialogue within the framework of the Multi Donor Trust Fund
(MDTF) for PFM reforms
|
|
|
• MTEF preparation is earned out in the
context of the revised state budget law and its eventual provisions for a
national MTEF.
The condition refers to satisfactory
progress in the implementation of a programme to improve and reform public
finance management, as evidenced inter alia by a PFM progress report prepared
by the MoF for mid-term CG meeting to jointly judge the improvement made in
reforming critical components of PFM during the previous year. This report is
available in May on annual basis.
|
|
|
Sector policy and strategy
|
A clearly defined sector policy is
In place and implemented satisfactorily.
The Draft "National strategy for
people's health protection, care and Improvement and master plan for health
sector development, 2011-2020, vision 2030", will need to be finalised
and approved by the Government. By the end of 2010, the 5-year national
health plan 2011-2015 was adopted by the Minister of Health. To ensure the
operationalisation of the plan, in line with me national sector strategy, the
following actions will constitute concrete milestones for the assessment of
the criterion on sector policy:
• The Ministry of Health ensures that an
harmonization process of operational planning and budgeting guidelines for
provinces is put in place in consultation with a Technical Working Group for
Planning and Finance, established under the Health Partnership Group
• Formulation of provincial operational
plans and comprehensive budgets in a number of provinces, using the
above-mentioned guidelines, and steps towards consolidation at national level
• The JAHR process, will monitor annually
sector performance and the implementation progress of the 5-year Plan, by
establishing among others indicators for monitoring the main sector
priorities not covered in the list of 19 indicators included in the 5-year
Plan, including baselines and target values
• The health sector improves its capacity
for evidence-based policy formulation, by upgrading its Management
Information Systems (HM1S)
|
Ministry of Health (MoH) and multi-lateral
dialogue within the framework of the Health Partnership Group and its
affiliate sub-groups
|
4. Specific criteria for instalment release
The specific criteria for instalment release
apply to individual instalments in addition to general criteria which are
applicable to all instalments.
Table C - Specific
criteria for instalment release
|
Year
|
Instalment
|
Amount
|
Indicative
disbursement request date
|
Indicative
disbursement date
|
Criteria for
disbursement
|
Source of
Verification
|
|
2012
|
First Base Instalment:
|
€10M
|
4th quarter of 2011
|
2nd quarter of 2012
|
General criteria as set out in Table B
above
|
As mentioned above
|
|
2013
|
Second Base instalment:
|
€10M
|
July 2012-
|
1stquarter of 2013
|
General criteria as set out in Table B
above
|
As mentioned
above
|
|
Second Instalment: Bonus
|
€4M
|
General criteria as set out in Table B
above
Specific criteria as set out in Appendix 1
to these TAPs
(i) Specific criterion 1
(ii) Specific criterion 2
(iii) Specific criterion 3
(iv) Specific criterion 4
|
As mentioned above
As mentioned in Appendix 1 to these TAPs
|
|
2014
|
Third Base Instalment:
|
€10M
|
July2013-
|
1st quarter of 2014
|
General criteria as set out in Table B
above
|
As mentioned above
|
|
€5.15 M
|
General criteria as set out in Table B
above
Specific criteria as set out in Appendix 1
to these TAPs
(i) Specific criterion 1
(ii) Specific criterion 2
(iii) Specific criterion 3
(iv) Specific criterion 4
(v) Specific criterion 5
|
As mentioned above
As mentioned in Appendix 1 to mese TAPs
|
The criteria for disbursement under the bonus
instalments are fixed for the duration of the programme, but may be modified in
accordance with the TAPs section 2.3.2 of this Financing Agreement.
5. Modalities of assessment or performance in
the case of bonus instalments
|
Criteria for 2nd year disbursement
of bonus instalment (2013)
|
Maximum related disbursed amount
|
Level of disbursement according to
performance
|
Assessme
|
|
Health expenditure, sourced from Stale
budget, increases faster than the annual increase of State expenditure in
general, and this also takes place in poorest provinces
Target by July 2012: as per Appendix 1
|
€ 1 million
At national level:
€ 0.3 million
At provincial level:
€ 0.7 million
|
At national level:
Expenditure decrease: 0%
Limited increase: 50%
Substantial increase, but below
target: 75%
Full compliance: 100%
At provincial level:
None of provinces meet target: 0%
A minority of provinces meet target:
25%
A majority of provinces meet target:
75%
All provinces meet target: 100%
|
The Delegation will base its assessment on
both of the following sources:
(a) Specific report by the MoF on the
planned recurrent expenditure in the Health sector. This report will specify
the different components of this figure, among which the figures published on
the MoF website.
(b) The figures, approved by Provincial
People's Councils, collected and provided by the MoF on the planned
provincial recurrent health expenditure for the selected 9 poorest provinces.
|
|
Health insurance coverage increases on
annual basis
Target by July 2012: 63%
|
€ 1 million
|
Coverage decreases: 0%
limited increase: 50%
Substantial increase, but below target:
75%
Full compliance: 100%
|
The Delegation will base its assessment on
formal statement from central VSS on the increase of health insurance
coverage during the previous year.
|
|
Comprehensive annual sector operational
plan and budget are available in a number of pilot provinces of Health Sector
Capacity Support Project
Target by July 2012: at least 1 province
|
€ 1 million
|
No progress: 0%
Limited progress: 50%
Substantial progress: 75%
Full compliance: 100%
|
Progress reports of the Health Sector
Capacity Support Project (HSCSP) will inform about the number of pilot
provinces with comprehensive annual sector operational plan and budget.
Quality of the provincial plan will be assessed by an independent short-term
expert, recruited under HSCSP, using the criteria and methodology of the
Joint Assessment of National Strategies (JANS)
|
|
The monitoring framework of the 5-year plan
is integrated in the JAHR process.
Target by July 2012: The JAHR report 2012
has a chapter reporting on the implementation progress of the 5-year plan,
and analysing progress on the 19 indicators included in the plan and on
additional Indicators to monitor priorities of the plan defined by the JAHR
|
€ 1 million
|
No progress: 0%
Partial integration: 50%
Full compliance: 100%
|
The JAHR report will have a chapter
reporting on the implementation progress of the 5-year plan, on which
dialogue will be opened at HPG meeting under the leadership of the MoH
|
|
Criteria for 3rd year disbursement
of bonus instalment (2014)
|
Maximum related disbursed amount
|
Level of disbursement according to
performance
|
Assessment
|
|
Health expenditure, sourced from Stale
budget, increases faster than the annual increase of State expenditure in
general, and this also lakes place in poorest provinces
Target by July 2013: as per Appendix 1
|
€ 0.75 million
At national level:
€ 0.3 million
At provincial level:
€ 0.45 million
|
At national level
Expenditure decrease: 0%
Limited increase: 50%
Substantial increase, but below
target: 75%
Full compliance: 100%
At provincial level:
Norte of provinces meet target: 0%
A minority of provinces meet target:
25%
A majority of provinces meet target:
75%
All provinces meet target: 100%
|
The Delegation will base its assessment on
both of the following sources:
(a) Specific report by the Mol: on the
planned recurrent expenditure in the Health sector. This report will specify
the different components of this figure, among which the figures published on
the MoF website.
(b) The figures, approved by Provincial
People's Councils, collected and provided by the MoF on the planned
provincial recurrent health expenditure for the selected 9 poorest provinces.
|
|
Health insurance coverage increases on
annual basis
Target by July 2013: 67%
|
€ 0.75 million
|
Coverage decreases: 0%
Limited increase: 50%
Substantial increase, but below
target: 75%
Full compliance: 100%
|
The Delegation will base its assessment on
formal Statement from central VSS on the increase of health insurance
coverage during the previous year.
|
|
Comprehensive annual sector operational
plan and budget are available in a number of pilot provinces of Health Sector
Capacity Support Project
Target by July 2013: at least 2 province
|
€ 0.75 million
|
No progress: 0%
Limited progress: 50%
Substantial progress: 75%
Full compliance: 100%
|
Progress reports of the Health Sector
Capacity Support Project (HSCSP) will inform about the number of pilot
provinces with comprehensive annual sector operational plan and budget.
Quality of the provincial plan will be assessed by an independent short-term
expert, recruited under IISCSP, using the criteria and methodology of the
Joint Assessment of National Strategies (JANS)
|
|
The monitoring framework of the 5-year plan
is integrated in the JAHR process.
Target by July 2013; The JAHR report 2013
has a chapter reporting on the implementation progress of the 5-year plan,
and analysing progress on the 19 indicators included in the plan and on
additional indicators to monitor priorities of the plan defined by the JAHR
|
€ 0.75 million
|
No progress: 0%
Partial integration: 50%
Full compliance: 100%
|
The JAHR report will have a chapter
reporting on the implementation progress of the 5-year plan, on which
dialogue will be opened at HPG meeting under the leadership of the MoH
|
|
The following indicators arc selected from
the 5-year national plan (2011-2015) (ref. page 36), and from the JAHR
monitoring framework:
1. Infant Mortality Rale (per 1.000 live
births)
2. Proportion of deliveries assisted by
trained health practitioners
3. Under 5 child malnutrition (weight for
age) in %
Target by July 2013: as per Appendix 1
|
€ 2.15 million
At national level:
€ 0.3 million
€ 0.35 million
€ 0.3 million
At provincial level:
€ 0.4 million
each criterion
|
At national level: for each indicator
No progress: 0%
Substantial increase, but below
target: 50%
Full compliance: 100%
At provincial level: for each indicator
None of provinces meet the target:
0%
1-3 provinces meet the target: 25%
4-5 provinces meet all target: 50%
6-7 provinces meet the target: 75%
8-9 provinces meet the target: 100%
|
The Delegation will base its assessment on
the M&E framework of the JAHR and specific reporting from MoH's
Department of Planning and Finance (including health statistics division) and
the 9 selected provinces
|
Appendix 3: Basic
health targets 2011-2015 (source: Ministry of Health of Vietnam, approved
5-year health sector development plan, page 36)
|
No
|
Indicators
|
Estimates
2010
|
In 2011
|
In 2012
|
In 2013
|
In 2014
|
In 2015
|
|
|
Input indicators
|
|
|
|
|
|
|
|
1.
|
Number of doctor/10,000 inhabitants
|
7
|
12
|
7.4
|
7.6
|
7.8
|
8
|
|
2.
|
Number of pbarmacian/10,000 inhabitants
|
1.2
|
1.3
|
1.4
|
1.5
|
1.6
|
1.8
|
|
3.
|
Villages with active VHW (%)
|
85
|
86
|
87
|
88
|
89
|
90
|
|
4.
|
Commune with doctor (%)
|
70
|
72
|
74
|
76
|
78
|
80
|
|
5.
|
Commune with midwife or assistant doctor in
obstetric and paediatric care (%)
|
>95
|
>95
|
>95
|
>95
|
>95
|
>95
|
|
6.
|
Hospital bed per 10,000 inhabitants
(exclude CHS bed)
|
20.5
|
21
|
21.5
|
22.0
|
22.5
|
23.0
|
|
|
Performance indicators
|
|
|
|
|
|
|
|
7.
|
Fully vaccinated infants (%)
|
>90
|
>90
|
>90
|
>90
|
>90
|
>90
|
|
8.
|
% of commune achieving new national
benchmark for commune health
|
-
|
40
|
45
|
50
|
55
|
60
|
|
9.
|
Hearth insurance coverage (%)
|
60
|
63
|
67
|
71
|
76
|
80
|
|
|
Outputs indicators
|
|
|
|
|
|
|
|
10.
|
Life expectancy at birth (years)
|
73.0
|
73.2
|
73.4
|
73.6
|
73.8
|
74.0
|
|
11.
|
MMR (pi 00,000)
|
68
|
67
|
66
|
64
|
61
|
58.3
|
|
12.
|
IMR(pl,000)
|
<16
|
15,5
|
15.3
|
15,2
|
IS
|
14,8
|
|
13.
|
U-5MR(pl,000)
|
25
|
24.0
|
23.0
|
22.0
|
21.0
|
19.3
|
|
14
|
Size of population (million inhabitants)
|
86,920
|
87,810
|
88,694
|
89,570
|
90,438
|
<92
|
|
15.
|
Population growth rate reduction %o
|
0.20
|
0.20
|
0.20
|
0.20
|
0.20
|
0.20
|
|
16.
|
Population growth rate (%)
|
1.04
|
1.02
|
1.00
|
0.98
|
0.96
|
0.94
|
|
17.
|
Sex ratio at birth (boys/100 girls)
|
111
|
112
|
112
|
112
|
113
|
113
|
|
18.
|
Under-five child malnutrition rate (weight
for age) (%)
|
18.0
|
17.3
|
16.6
|
16.0
|
15.5
|
15.0
|
|
19.
|
HIV/AIDS prevalance in community (%)
|
<0.3
|
<0.3
|
<0.3
|
<0.3
|
<03
|
<03
|