Pursuant to Decree No. 133/2005/ND-CP on November 1, 2005 the Government enacted regulations of borrowing and repayment of foreign and Decree 131/2006/ND-CP dated 9/11/2006 the Government enacted regulations to manage and use sources of official development assistance ODA;

Based on the credit agreement signed between the Government of the Socialist Republic of Vietnam to the international cooperation Bank of Japan, is now an international cooperation organization (hereinafter referred to as the AGENCY) funding for the program for rural infrastructure development and raise the standard of living of the population;

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

The Ministry of Finance shall guide the management mechanism of JICA's loan sources for program development of rural infrastructure and raise the standard of living of population as follows: part I GENERAL PROVISIONS 1. The program of development of rural infrastructure and raise the standard of living of the population (referred to as specialized credit program) is a program using JICA loan capital to proceed with the construction of the local infrastructure within the country, including the areas under the provisions of the agreement.

2. The source of the loan in the credit program is specialized for government loans. This capital is managed according to the regulations of the law on the State budget and the writing guide rules, current spending regimes. The Ministry of finance is responsible for the foreign debt when due (including principal and interest). This capital is to balance the State budget to allocate for the project to build the local infrastructure in the form of the central budget supplements that aim for the local. The fields in Project Professional credit programs but determined lending mechanisms will follow loan rules issued pursuant to decision No. 181/2007/QD-TTg dated 26/11/2007 by the Prime Minister issued the regulation from the capital, the Government's foreign aid.

3. Launch the program: specialized credit programme consists of component projects in the field of rural transport, rural electricity, water supply, irrigation. The local component of the project was entrusted to local investors. Home program established the central programme management committee to administer and monitor the implementation of the program. Each province has established project management project, (hereafter referred to as the JICA project management) according to the instructions of the program to operate and monitor the implementation of the JICA project locally.

a. the Ministry of planning and investment programs are responsible for planning the use of specialized credit programs capital for the project. The Ministry of planning and investment, established the central programme management committee to administer and monitor the implementation of the program, the local guide in the implementation of the project and arranged the reciprocal capital as required.  

b. joint stock commercial bank for foreign trade of Vietnam (Vietcombank) is the Ministry of finance mandate made the foreign payment services, is responsible for signing the agreement with the foreign bank on the basis of JICA loan agreement.

c. the provincial people's Committee, the city and the State agency responsible for local governing the use of the proper capital purposes, effectively under the guidance of Master program and the Ministry of finance, in accordance with the regulations on the management of investment projects in construction in the country and pledged in credit agreements signed with JICA.

4. This circular applies to all the specialized credit programs funded by JICA. The field of afforestation applied according to circular No. 104/2002/TT-BTC dated 15 November 2002 of the Ministry of Finance shall guide the management of loans the Bank of Japan International cooperation (JICA) for the specialization in reforestation credit program.

Part II SPECIFIC PROVISIONS 1. JICA's loan capital: 1.1. JICA's capital takes up 75% to 85% from the value of works, to be used for the following: a. to hire foreign consultants;

b. Enter the materials and goods, domestic and foreign equipment for the projects;

c. payments for the volume of construction works, project program implementation;

d. withdrawal Fee loan of JICA (according to the rate of 0.1% on the amount of capital withdrawal by debit of JICA loan right after the exit);

preferred payment on hold pending settlement after the warranty; advance payment refund from local budget capital only made in JICA's drawing deadline agreement;

1.2. JICA loan not to be used for payment of the compensation items clearance, exploration, survey, design build projects, tax, cost management, cost of banking services in the country, the work premium.

2. reciprocal Capital in water: 2.1. Reciprocal capital in the country due to local budget self guarantees; follow the current mechanisms for reciprocal capital management for the projects, projects using ODA: be put on balancing the annual budget, or mobilized from other sources, to ensure balanced progress made foreign capital in each project plan period. This capital levels should be arranged about 15-25% of the value of works to pay for: a. the cost of clearance compensation, exploration, survey, design and construction project management fee (for the construction process of the project);

b. domestic bank service fee (for payments made to the contractor);

c. indirect taxes for the goods or services applied for ODA loan projects program to allocate for local projects;

d. the cost of water for The import: import mandate fees, goods import tax, value added tax (if any), the cost of receiving, supplying, transporting the goods from the port to the process (for the project should import the goods) allocated for projects using the import of the equipment program;

premium multimedia works;

e. payment of withheld pending payment after the warranty period, awaiting finalization;

g. implementation in case of advance payment payment method;

2.2. the reciprocal Capital in the country due to Host the program layout: Ministry of planning and investment capital disposition for the application to pay the costs common to both programs, including: a. management fee program;

b. the Bank for payments related to counselling;

c. the costs related to the Organization of monitoring, tracking, reviews the program;

3. The procedures related to the economic contracts: the signing, approval and through a contract made under the guidance of the Ministry of planning and investment for specialized credit programs and as specified below: for the lease contract and consulting shops goods , imported materials and equipment: a. central programme management committee chaired the Organization conducted the bidding and contract negotiation to hire consultants, contract shops of goods, materials and equipment for the program or works with suppliers of goods and services is valid under the provisions of the agreement.

b. tax provisions in the contract to be made under the tax rules for ODA projects;

c. the central program management choose the unit (hereinafter called the importer) to mandate the transaction, the contract of importing goods, making the procedure of receiving and delivery to the site. The central program management to direct the contract to hire foreign consultants to both programs.

d. after signing the contract, the importer signed contract for program approval. JICA and the Finance Ministry will do the procedure through the contract for the value of the contract reached under the rules. With respect to the contract value is lower than the level specified in the agreement, the importer only send a copy of the contract for the central program management to track.

Sync notification of finance through contracts for Vietcombank to make foreign payment procedures to suppliers of goods or foreign contractors (if any).

3.2. With regard to the contract for the construction of building volume, program implementation project by local contractors: a. after the JICA and the capital planning delivered notice to be implementing the program of the Ministry of planning and investment, the investor to conduct bidding under the current bidding and contracting with the contractor;

b. special cases not tender, the governing body for investment must have decided to designate the bid according to the regulations and delivered to the owner contracts with contractors;

c. the contract must specify the value portion is funded by JICA loan;

d. tax terms in contracts made under the tax rules for ODA projects;

Sync immediately after signing the contract, the owner sent a copy of the contract stamped copies for the management of the JICA project in the province;

e. The contract has a value of under 0.5 billion Yen (rules out the USD rate JPY/USD due to the Bank for foreign trade of Vietnam announced at the time of signing the contract), the management of the JICA project in the province must only inform and include the category of contracts has been adopted for the central programme management committee and the Ministry of finance. JICA and the Ministry of finance procedures through the use of contracts which JICA for the contract to be worth from 0.5 billion Yen or more (price rules according to the regulation of rates above);

g. the Ministry of finance only payment the contract lies in the category have to notify the Ministry of finance. The payment from JICA funds be made consistent with the progress of the project, does not depend on the annual budget plan of the province.

4. a drawing method. With regard to consultancy, foreign equipment shopping: the genus in foreign currency in the contract is applied form of withdrawal of capital Letters of commitment or special account (TKĐB) for payment. Part by the local currency (USD) applies funds remittance form or to refund the payment.

b. with respect to the contracts concluded to implement domestic equipment purchase, constructions in the country will apply the funds form the special account or refund the payment according to the procedures defined in section III below.


c. According to the mandate of the Ministry of finance, Vietcombank opens special accounts with money and interest account of special account at the Bank of Tokyo-Mitsubishi by Ministry of finance do account holders. Vietcombank made only transactions from the accounts at the request of the Ministry of finance.

d. the Ministry of finance to do the first drawing procedure and draws additional capital into the special account under the provisions of the said agreement. The first drawing States don't need the vouchers attached.

Sync finance requesting the opening of accounts for use with the special account and the account interest rate of special account name the Finance Ministry (foreign financial Service) for monitoring and accounting of the money already funds and interest incurred on your account in particular as well as the repayment after this.

Part III PROCEDURE For PAYMENT Of CONTRACTORS 1. 1.1 payment object. The works (hereinafter the project) which are paid from the specialized credit programme is works is located in the capital use plans by JICA Ministry of planning and investment allocation and notification to the local.

1.2. valid contractors is the contractor has in the project or decision specified the project contractors are consistent with regulations (hereinafter called the contractor).

2. payment 2.1 recommendation profile. The investor when payment proposal needs to prepare the billing records are as follows: a. the entire payment suggestion profile which JICA was established according to the procedure for payment of basic construction in the water;

b. the contract signed between the owner and the contractor (copies are stamped copies of the investor);

c. Paper suggest the payment of contractors under this circular pattern (2 original) be approved by owner;

d. mass payment price Slip construction (XDCB) complete of State Treasury where the open trading account under the current model, which clearly recommended amount paid by JICA capital (2 originals);

Timer advance guarantee (in the case of advance payment) by the form attached herewith;

2.2. billing records submitted to the Management Board of the JICA project in the province for processing according to regulation 3. The process of payment and withdrawal of additional capital into account in particular: 3.1. Advance payment: paid contractors advance at the rate defined in the contract. In the record payment proposals must have more advance copy of the guarantee Certificate (attached to this circular) (a copy of the guarantee Certificate of the advance was the owner to confirm and close the star y original) issued by a commercial bank or reputable venture Bank, to be the owner accepted. The guarantee period is enough to warrant the owner recovered the advance. Payment process similar to item 3.2 below.

3.2. The method of payment: a. complete after contractors finished project, the owner sets the record payment proposal submitted to the local Treasury before spending control regulations on capital payment XDCB in the water;

b. the total amount of the proposed payment by JICA capital must equal the value of the finished XDCB volume has been appraised as the national advance minus% defined in the contract and within the amount funded by JICA capital defined in the contract. The case of the local Treasury money appraisal less than the recommended amount of payment, the contractor must establish payment proposal Paper according to the amount of money has been the local Treasury evaluation;

c. after the control results, the genus of the local Treasury, investors set record (as defined in section 2 above) send JICA projects management;

d. within 5 working days from the date of receiving records, management of the JICA project in the province of:-gather and verify the record, against the plan which had already been allocated and the category of contract;

-feedback to the owner in the case of records not yet eligible for payment;

-sent payment eligibility to the Ministry of Finance (Financial Services PR) attach general list of projects recommended for payment. The Ministry of finance submitted profiles include 1 Paper suggest the payment of contractors (original), 1 a mass payment price Votes XDCB complete (original), a synthesis of the proposed payment of JICA project management the (original);

Sync within 5 working days after receiving the application from the management of the JICA project in the province, the Ministry of finance based on the balance in TKĐB, requesting within 3 working days to transfer the money to the contractor according to the account number specified by the contractor in the paper suggest the payment. After the money transfer, the Finance Ministry mailed Paper Vietcombank reported money transfer remittance vouchers attached by the Bank for each contractor to finance additional drawing procedures on TKĐB. At the same time, Vietcombank posted newspaper Paper money transfer for the management of the JICA project in the province to monitor disbursement.

3.3. The refund payment methods: a. the refund payment methods to be applied for the repayment of the funds in the account for AGENCY JICA have been from local capital in advance.

b. the refund payment methods can be applied in the particular case as follows: – where the local budget has enough sources to pay immediately for the contractor, then be repaid by JICA. This method can be applied to any time before the expiration of the six month agreement drawing;

-Local case doesn't have enough sources to pay immediately for the contractor, if the time for payment falls on the last drawing 6 months period of the agreement, the local budget planning needs to have sources, then the advance payment will be reimbursed from the funding AGENCY;

By the time of expiry of the exit of the agreement is different, the JICA Project Management Committee the Management Committee contact JICA program central or the Ministry of finance to know the deadline for each specific case.

c. refund payment process from JICA loan sources as follows:-using advance payments of capital budget and complete payment proposal by JICA capital must satisfy in full the conditions of payment which JICA;

-Records suggest similar billing records suggest the payment which JICA usually enclose copies are stamped copies of remittance vouchers valid proof of funds has been the application from the local budget on account of the contractor;

-In paper recommends payment, the contractor proposed to transfer funds into the account number of the local budget. The recommended amount refunded must match the money was;

-Processing process records and similar payment account 3, point 3.1 and 3.2 above.

3.4. additional funds into the special account pursuant to the written request of the central programme management committee, the Ministry of Finance (Financial Services PR) procedures for additional funds into the special account under the provisions of the agreement. The central program management board listed and set the payment vouchers out from special accounts (including the Paper recommended the payment of contractors, the credentials of the Bank stating the money was transferred from the special account to the account of the contractor). The rate of payment of the additional funds are provided for in the agreement. After making the last drawing, in case of positive difference between the number of draws on the special account and the payment voucher from special accounts due to the difference in exchange rate, the Finance Ministry asked the central program management Board layout which JICA repayment of this disparity.

Part IV FEES INCURRED 1. Bank charges and payment: 1.1. Bank charges include a payment service fees in the country: Vietcombank charges according to bank service fees by the General Director of Vietcombank and trade;

b. foreign payment service fee: paid by the actual amount of money that foreign bank required;

1.2. The payment of specific fees are conducted as follows: a. for the remittance fee when paying foreign debt: Vietcombank is automatically debited the deposit account of the State budget (opened at Vietcombank);

b. with respect to the costs associated with the opening and the L/C payments imported goods: the charge is collected from the consignee mandated, then this fee will be entering the unit mandated to allocate and return from reciprocal capital of locality;

c. with respect to the costs associated with the opening and the L/C payments consulting services: Fees are collected from the account by the Ministry of planning and investment opened in Vietcombank, use reciprocal capital due to the Ministry of planning and investment to layout to cater for specialized credit programs;

d. with respect to the transfer of funds for domestic contractor: Bank Fees are deducted from the amount paid to the contractor. Depending on the contract signed with the owner, the contractor can incur this fee or base on paper report on charges of Vietcombank to require investors to pay back from reciprocal capital;

2. The cost of the importer: the importer because the central program management option has the task of negotiating the contract of purchase with winning bid (suppliers), perform all of the procedures of importing goods with the supervision of the central program management , enjoy free mandated import, supply fees under the agreement with the central programme management and regulations of the State. The charge for this importer from the Unit received and counted in the reciprocal of capital works.

Part V On The STATE BUDGET ACCOUNTING 1. JICA loan used to allocate for local projects must be sufficiently timely accounting on the State budget. Accounting principles through the budget of the central budget revenue record, scoring additional genera have goals for the local budget (NSĐP). The past budget accounting was made specifically as follows:


1.1 allocation of common costs: common costs include fees to withdraw capital, costs associated with the transactions directly (by consulting contracts and equipment import contract according to the method of transferring money and letters of commitment), the management fee of the central program management (including the cost of organizing the work of tracking reviews). In December of every year, the Board of management of the central program of the general types of costs incurred in the year and have the official text suggested the Finance Ministry procedures recorded record revenue budget: record collecting, record foreign debt capital spending allocated for the central programme management unit in the Ministry of planning and investment.

1.2 for free consultation: 30 days after the end of the period of withdrawal of capital of each agreement, the central program management Board general counsel fee for both reality program in which the agreement, have the text distributed to projects in each locality in proportion to the use of capital to send to each province and the Ministry of finance to do the write procedure currency budget records. Pursuant to the announcement of the allocation of the central programme management committee, the Ministry of finance will collect foreign debt capital ceasing to have additional goals for the local budget.

1.3 with regard to the value of imported goods: a. after the end of the exit for each contract procurement, Program Management Committee coordinated the importer to import worth of allocations respectively for each of the works in the local, United with the JICA project management the province and official documents have suggested the Ministry of finance procedure records record revenue spending The budget;

b. the case of the difference between the plans is distributed with the number of rows actually received (including the level of shrinkage), the local work with the unit is authorized to offer the goods to confirm this difference and reports of the Board of the central program management to process according to the principles of the dents are the responsibility of the Agency, that agency should be subject specific, as follows:-addition level of shrinkage is defined in the import process, the importers have to bear;

-External shrinkage in the supply process limit, then the units are authorized to offer to bear;

-External shrinkage due to delayed local norms, the delay in accepting the goods locally to incur;

1.4 for the construction project of program implementation, payments to contractors in VND: a. based on the annual notification of transfers of the Bank for foreign trade, the Ministry of finance and the procedure of loan collection AGENCY records recorded additional genera have the goal of the central budget for NSĐP;

b. The accounting steps for points 1.2, 1.3, 1.4: based on evidence from the Ministry of finance, Department of finance conduct established local budget revenues command and pay for the use of the unit which sent the State Treasury Department, central cities; The State Treasury Department, central cities made offers in accordance with the provisions of the law on the State budget. Document as the basis for recording the genus is of order-Service Ministry of finance budget, attached to the notice of the foreign finance has the category of record agreement, project name, owner name, payment amount for each project, rates apply.

The value of the budget's spending record collection records by the value of the foreign currency (JPY) multiplied by the exchange rate published at the time by Vietcombank money transfer (for payment to contractors) or accounting rates due to the Finance Ministry at the time of accounting rules (for the free advice, free exit , imported goods).

Part VI RESPONSIBILITY Of AGENCIES INVOLVED In The PROCESS Of PAYMENT 1. The central program management: 1.1. Tender selected importers and consultants.

1.2. Chaired together with consultants, donors and the Ministry of finance, planning and organization of test, monitoring, follow-up audit, program evaluation, project;

1.3. support, guide the planning and local investment, management of the JICA project in the province about the mechanisms of policy related to the specialized credit programs;

1.4. Presiding also with Ministry of finance management training organization and implementation of specialized credit programs;

1.5. General progress report programme with the Government, Finance Ministry, sponsor;

1.6. A collection of records, documents submitted to the Ministry of finance to conduct additional funds into the special account;

1.7. the refund to JICA capital disposition if the difference between the number of positive exit into the special account and the payment voucher from special accounts due to the difference in exchange rate.

2. Management of the JICA project in the province of: 2.1. Is to manage the project implementation at local, general responsibility from the planning, implementation and reporting. Regularly coordinate and notify the Department of finance for information regarding local projects;

2.2. implementation of tasks by the authoritative program in conjunction with the planning and building of capital planning investment AGENCY (JICA's standard reference) and arranged financing for local projects;

2.3. Presided over the construction plans for capital projects in accordance with the schedule, including the case of reciprocal capital and working capital advance from budget resources in case of application of the method of payment refunded;

2.4. Establishment of categories of contract, contract addendum was funded by JICA capital sent Home program and the Ministry of Finance according to form (attached);

2.5. Guide the investor and the contractor set up the vouchers according to the form prescribed by the AGENCY for each method of exit;

2.6. Receive and verify the payment records of the owner, the engineer with JICA and contract equity plan, within 5 working days from the receipt of a valid application, submitted The proposal to finance the payment. The case is not accepted, the JICA Project Management Committee the responsibility to contact the project owner to complete the profile;

2.7. track disbursement data updated on foreign capital and reciprocal capital of each project in the province;

2.8. In support of the central program management, consulting, and financial sponsors in the monitoring and management of projects in the province.

3. The Ministry of Finance: 3.1. The procedure accepts payment after receiving the application. The case does not accept payment, the Finance Ministry has the responsibility to notify the central program management and JICA project management the province concerned;

3.2. Procedures for record collecting timely ceasing to Department of finance may on the local budget accounting;

3.3. Conduct exit timely additions to the TKĐB;

3.4. Do the original loan and interest repayment as required in the agreement;

3.5. In coordination with the central programme management committee and the sponsor of the track, reviews the program.

4. the local Treasury: 4.1. Genus XDCB volume control complete the project according to the regulations on the management of basic construction investment, which clearly define the amount funded by JICA to capital as the basis for the Ministry of finance payments to the contractor. JICA capital spending control is made consistent with the progress of the project, does not depend on the annual budget plan of the province;

4.2. In coordination with the Department of finance in the budget accounting for specialized credit programs;

5. Department of finance the Department, City: done write currency recorded genus NSĐP after receiving evidence from the record collecting records of the Ministry of finance budget expenditure.

6. Joint stock commercial bank for foreign trade of Vietnam (Vietcombank) 6.1. Make payments according to the methods specified in drawing the JICA loan agreement at the request of the Finance Ministry and send the paper type press fit each payment to the Finance Ministry, the central program management and contractors;

6.2. Monitoring and inform the Ministry of finance TKĐB balance after each payment and withdrawal of capital in TKĐB.

7. Owner: 7.1. Establishment of feasibility studies, engineering design, ... According to XDCB investment procedures and contractor selection organization under the current bidding rules;

7.2. The contract with the winning bid or specified unit, defining clearly the amount funded by JICA capital. Responsibility to check the delivered or for supervising the quality inspection process consistent with the technical design and validation on the form of payment of contractors;

7.3. Progress report in-kind, drawing funds from JICA loan sources for relevant management bodies;

7.4. Make the reciprocal capital payments promptly, in accordance with the progress of the project;

7.5. Expediting the completion of the project, based on the reported payment to the contractor of the Ministry of finance to conduct settlement contract with the contractor;

7.6. Perform finalization works and projects according to the regulation on capital XDCB;

7.7. To support the work of monitoring, tracking, reviews, program audit of the program, the Ministry of finance and the donors.

8. Contractor: 8.1. Make the contract sufficiently to the volume, quality and progress;

8.2. implementation of tax obligations, warranty, refund, etc. which regulations and under contract with the owner;

8.3. Perform the payment, delivery, acceptance, maintenance projects completed with the owner.

Section VII INSPECTION, Reporting, Settlement 1. Every year the people's Committee of the central cities, and central programme management committee reports to the Ministry of finance, the Ministry of planning and investment on the progress programme, the problems arising out of the acceptance and use of the loan;

2. The central programme management Committee coordinated with the Ministry of Finance held periodically check and irregular management situation and the use of the local loan. If discovery use cases do not loan rules will recover the amount transferred or suspended transfer of capital to take measures appropriate handling;

3. The owner in cooperation with the relevant units in progress and completed works settlement;

4. The province, General city local budget settlement, Ministry of finance, the Ministry of planning and investment to the general public as required. The central program management responsible for settlement programs;


5. Ministry of planning and investment report synthetic Prime capital allocation situation and implementation of projects at the local, the Ministry of finance. The central program management in collaboration with JICA project evaluation group to verify the implementation of the program after the end of the period of withdrawal of the agreement;

6. The central programme management Committee in charge of coordinating offers of information, metrics for the testing, inspection, auditing of JICA and the Government of Vietnam;

7. the programme management and the owner is responsible for keeping records of payment vouchers fit the rules for payment of the basic construction investment in the country since the end of the current agreement as defined on the Archive document to present when required to serve, monitor, monitoring, evaluation and audit program.

Part VIII IMPLEMENTATION of this circular effect after 15 days from the Post Gazette and replacing circular No. 134/1999/TT-BTC on 05/11/1999 of the Ministry of finance.

In the process if there are obstacles, suggest the Agency reflects on the Finance Ministry to take measures to handle the appropriate./.