Based on credit agreement between the Government of the Socialist Republic of Vietnam (Vietnam Government) and the Government of the Lao People's Democratic Republic (Lao Government) of VL-03 signed on 5/2/2009 on the Government of Vietnam for Laos ' Government a preferential credits worth not more than 43 million dollars (credits);

Pursuant to Decree No. 118/2008/ND-CP on November 27, 2008 of the Government functions, tasks, powers and organizational structure of the Ministry of finance;

The Ministry of Finance shall guide the implementation of the disbursements, debt collection and payment credits as follows: i. GENERAL PROVISIONS 1. Purpose, scope of use credits: credits are funded for the categories of costs are stated in annex No. 1 of the credit agreement to invest to upgrade road No. 2E (the Mường Faculty-Western), include:-the cost of the technical Designer (included in total), detailed design construction supervision, ... by the consultancy.

-The cost of construction, 2E (the Mường Faculty-West page);

-Other costs (if any) must be the Ministry of finance and the Ministry of finance Vietnam Laos approved.

2. Explanation of terms: in this circular, the terms below are interpreted as follows: "credit agreement" is the agreement signed between the Governments of Vietnam and the Lao Government of VL-03 on 5/2/2009 on the Government of Vietnam for Laos ' Government a preferential credits worth not more than 43 million u.s. dollars to invest in the construction , 2E.

"2E" is the path located on the territory of Laos (the Mường Faculty-West page) adjacent to the Vietnam border.

"Lender" means the Government of the Socialist Republic of Vietnam which is the Vietnam Ministry of finance representative.

"Borrower" means the Government of the people's Democratic Republic of Laos that is representative of the Lao Ministry of finance.

"Vietnam Development Bank" lender is authorized to make payment, financing and loan recovery directly from the borrower.

"Owner" is the Government of the Lao People's Democratic Republic authorized to implement the project.

"Contractor" is the unit of economic organization, Vietnam and the Laos-Vietnam venture, economic contract of construction, supply of goods and services for the investor to make the street 2E upgrade project in Laos.

"Economic contract" is the contract signed between the owner and the contractor in accordance with the conditions referred to in article 3 of the credit agreement.

"Bank" means the Bank is Vietnam Development Bank authorization option to make the payment of loan resources for the project implementation unit.

II. SPECIFIC PROVISIONS 1. The legal text in order to make the agreement: To implement the agreement, the Ministry of finance by the Vietnam text sent to the Vietnam Development Bank as follows: 1.1 the text of the Vietnam Ministry of finance delegation to Vietnam Development Bank made raising capital, debt collection and payment according to the content of the credit agreement.

1.2 the text relating to the disbursement of the Lao side (if any) of the Lao Ministry of finance submitted to Vietnam's Finance Ministry.

1.3 registration form signed by the Lao Finance Minister authorised the payment proposal Paper according to the credit agreement (form in the credit agreement) the Lao Ministry of finance submitted for Vietnam's Finance Ministry.

2. Approval of economic contracts: all economic contracts shall be sent to the Lao Ministry of finance for approval of a contract; Contract and A contractual approval of the Lao Ministry of finance submitted to Vietnam's Finance Ministry to consider, if in accordance with the provisions of the credit agreement, the Vietnam Finance Ministry announced the confirmation of contract for the Lao Ministry of Finance has approved the dispatches sent to the Vietnam Development Bank.

3. Regulations on payment: 3.1 Open and use your account credit: a/Vietnam Development Bank opens for borrower a member entitled to "credit line 2E of the Government of the Lao People's Democratic Republic" (referred to as the VL-03 credit account) to accounting, tracking the disbursement process debt recovery, for this credit.

b/credit account VL-03 are accounting in u.s. dollars, the currency of payments case the fact is Vietnam Dong or Lao Kip then work out the conversion of us dollars apply sale rates of Vietnam Dong or Lao Kip at the time of the transaction by the Bank informed agents. Vietnam Development Bank is responsible for informing the lender and the borrower Bank's name before the first disbursement of installments.

c/on Vietnam Development Bank account debit, credit and interest rate for calculating the Government of the Lao People's Democratic Republic is on the Vietnam Development Bank made payments to the contractor.

3.2 payment currencies: a/coin inscribed on paper payment proposal could be Vietnam, Lao Kip or us dollars. The amount of the payment is debited for the Laos in u.s. dollars according to the exchange rate specified in point 3.1 above, item b.

b/based on the borrower's proposal and asked chi to purchase goods and services, based on the value of payment under a contract signed between the economic owner and contractor has been Vietnam's Finance Ministry and the Ministry of finance approved Lao, Vietnam Development Bank will review and make the payment in Vietnam The Lao Kip, or for the cost of the project.

3.3 total value and the time limit for payment: total amount of payments under the credit agreement not exceeding 43 million. On the final payment for the borrower is on 5/2/2014, unless agreed otherwise between the borrower and the lender.

3.4 payment procedure: a/for the entire Treaty, to be paid to the Lao Ministry of finance needed for Vietnam's Finance Ministry sent the following text:-the registration form signed by the person who is authorized to sign the proposed payment by the borrower on behalf of the Lao Ministry of finance financial Vietnam.

-In the case of a bank or a borrower's Agency is authorized to make disbursements, the Lao Finance Ministry will submit to the Finance Ministry official documents about the Vietnam delegation.

b/for every contract the economy, Vietnam's Finance Ministry sent the Vietnam Development Bank the following documents:-a copy of the contract by the Lao Ministry of finance economy offers.

-Copies of approved the Finance Ministry's Laos contract which clearly worth used the loan contracts.

-A confirmation of the contract and the written approval of Vietnam's Finance Ministry.

c/for each payment, the borrower is sent to Vietnam Development Bank the following documents:-certificate of payment proposal in English (Request for Payment) by the borrower that the signature of authorized representative signature registered with the lender (according to the model specified in the credit agreement VL-03).

-Disbursement recommendation Paper in English (for Payment) by the contractor up to send the investor (according to the model specified in the credit agreement VL-3) and was the owner of confirmation of payment agreed.

-The type of the invoice or the other necessary documents to prove the validity of the payment: * for the payment of the goods, the equipment: + trade invoice the goods are provided;

+ Certificate from the goods include: invoices, shipping documents, cargo insurance certificates, certificate of origin of goods, packing invoice, certificate of inspection before delivery.

+ Report on the delivery of goods, equipment, warehousing votes.

+ The other regulatory documents (if any) of economic contracts.

* For the payment of services: + invoices or payment suggestion of consultants;

+ Confirm progress consulting contracts by the owner;

+ The other regulatory documents (if any) of economic contracts.

* With regard to the payment of the construction section: + Paper suggest the payment of contractors in the form of a credit agreement.

+ Minutes of collecting complete volume of supervision and advice of the owner.

+ The other regulatory documents (if any) of economic contracts.

* For the advance payment: payment of the proposal Paper + the contractor under the contract;

+ Advance payment guarantee by the Bank of the contractor.

3.5 processes the payment and debit notices: a/payment for people who enjoy:-after receipt of complete and valid disbursement, within a maximum of five working days, Vietnam Development Bank conducted the test and make the payment directly to the beneficiary according to the recommendations of the borrower. The case of Vietnam Development Bank does not accept a part or the whole of the proposal must be clearly informed of the payment for the borrower to know and the Vietnam Ministry of finance report to solve.

b/reported results disbursed and repayment schedule:-after each payment, Vietnam Development Bank are responsible for sending written notice to the borrower and the Ministry of finance which clearly: the beneficiary; the amount of money; Exchange rate; payment date; paid content; estimated number of funding.

-Quarterly, Vietnam Development Bank send The Vietnam financial account balance statement "credit VL-03" (Account Statement).

-Expiry of payment or have enough capital under the agreement (as in point 3.3 has scored above) without any other notification about continued disbursements under the agreement by the borrower and the lender, the Vietnam Development Bank conduct scheduled to repay the sum corresponding to the total amount of payment granted to notify the borrower and The Member Vietnam itself.

4. Repayment of principal and interest: 4.1 root: Debt-repayment of the original borrower within 10 years into 20 times annual sales are, on the day 10/3 & 10/9 according to the repayment schedule be inscribed in annex III, the first original repayment term is on 10/3/2014.

4.2 Debt interest repayment interest borrowing:-6 months on the day 10/3 & 10/9 annual starting pay from 10/9/2009, if interest rates paid on holidays or holidays coincide, then the interest rates will be made on the first working day next following the day of rest.

-Loan interest rate is 1.5% per year on the actual balance (accounting by USD) in terms of interest rates. Overdue interest rate applied is 3% per year (the interest rate and the interest rate on overdue is calculated on the basis of a 360 day year).

4.3 the sequence of repayment:


When getting a debt payments, Vietnam Development Bank made minus the debt according to the order of priority is as follows:-The type of penalty interest rates, delinquent fees on overdue principal and interest;

-Interest on overdue;

-Delinquent Roots;

-Due interest rates;

-Root to the limit.

5. The method of recovery of the debt: debt collection 5.1:-30 days prior to each term of repayment, Vietnam Development Bank sent notice to the borrower and the Vietnam Ministry of finance about the original debt and debt interest is charged for that term.

-Vietnam Development Bank will proceed with the debt collection procedure under the provisions of the credit agreement and the provisions outlined in this circular, the notice of the record-setting debt reduction loans respectively to send the borrower and reported for Vietnam's Finance Ministry to keep track.

delinquent Debt: 5.2-case to the loan repayment term that Vietnam Development Bank not receiving repayment amount then this amount will be accounted to the overdue account of the borrower to apply fines interest from the due date to the date the borrower paying off the debt principal and interest overdue under the provisions of the agreement.

-Vietnam Development Bank informs the borrower and the Finance Ministry about the number of overdue debt (principal and interest) under the overdue interest rate agreement is 3% per year.

-The case of borrower overdue debt to (principal and/or interest) under article 7 of the credit agreement and outstanding repayment period 2 to row the Vietnam Development Bank informed the Ministry of finance to the same table processing measures where necessary, will report the Prime Minister to review the decision.

5.3: when processing loans under the repayment obligations are complete borrower, Vietnam Development Bank will all and close the relevant account, at the same time notify to the borrower and the Vietnam Ministry of finance said.

6. level of interest: compensate the difference between the interest rate of mobilization of the Vietnam Development Bank to implement credit agreements and loan interest rate specified in the credit agreement was Vietnam's Finance Ministry granted compensation along with annual payment BU other interest rates disparity due the Government authorization for Vietnam Development Bank capital mobilization and lending under the the State's credit programs.

III. EFFECT of this circular effect after 45 days from the date of signing and apply from the date of credit agreement VL-3 effect.

In the process if there are obstacles, the proposal reflects the agencies promptly to the Finance Ministry to consider resolution./.