MINISTRY OF PLANNING AND INVESTMENT SOCIALIST REPUBLIC OF VIETNAM Independence-Freedom-Happiness ACTION PLAN FOR IMPROVING PERFORMANCE OF ODA PROGRAMS AND PROJECTS IN 2008-2009 PERIOD (Promulgated together with the Decision No. 883/2008/QD-BKH 14/7/2008 of the Minister of Planning and Investment)

1. MINISTRY OF PLANNING AND INVESTMENT SOCIALIST REPUBLIC OF VIETNAM
------------ Independence-Freedom-Happiness
-----------------
ACTION PLAN FOR IMPROVING PERFORMANCE OF ODA PROGRAMS AND PROJECTS IN 2008-2009 PERIOD
(Promulgated together with the Decision No. 883/2008/QD-BKH 14/7/2008 of the Minister of Planning and Investment)
Content of Work Leading Coordination Deadline for Expected Outcomes
Agency Agencies Accomplishment
1. Harmonized Project Detailed Outline
and Project Concept Document
1.1. Review the Six Banks’ project concept MPI and IMTF, WB and Sep., 2008 Gap matrix
documents and identify the gaps with the ADB other interested
Govenment’s Project Detailed Outline donors
1.2. Review the Government’s procedure MPI and IMTF, WB and Sep., 2008 Description on the Government’s
to approve Project Detailed Outline ADB other interested approval procedure and related problems
donors
1.3. Draft a Harmonized Project Detailed MPI and IMTF, WB and Dec., 2008 Outcome Draft harmonized Project
Outline ADB other interested Detailed Outline
donors
1.4. Prepare recommendations to expedite MPI and IMTF, WB and Dec., 2008 Draft harmonized Draft recommendations
approval procedures of the Government ADB other interested
and the donors donors
2. Common Feasibility Study Guidelines
2.1. Dissemination of Common FS MPI and Line Agencies, 6 By 4th Quarter Workshops and training courses for
Guidelines and Training KfW Banks and other 2008 relevant stakeholders are prepared and
interested donors organized
2.2. Implementation of Common FS MPI and Line Agencies, 6 Ongoing All FS for 6 Banks projects are elaborated
Guidelines KfW Banks and other according to Common FS Guidelines
interested donors
2.3. Elaboration of sector Guidelines in MPI and Line Agencies, 6 By 2nd Quarter Sector guidelines in line with the
1

2. specific sectors (proposal: transport, water KfW Banks and other 2009 Common FS Guidelines are developed
supply, waste water disposal, rural interested donors and approved by GoV and 6 Banks
develoment, health, energy)
3. Advanced Actions
3.1. Develop the list of Advance Actions MPI and IMTF, Line Aug., 2008 List of Advance Actions
(including responsible agency for ADB Agencies, WB
implementation, resources, when in the and other
project cycle). The list should separate the interested donors
advance actions that can be implemented
under the existing legal framework and the
advance actions that would require
changes to the existing legal framework
3.2. Identify the required changes to the MPI and IMTF, Line Aug., 2008 Proposal on changes to the legal
regulatory framework that facilitate ADB Agencies, WB framework
implementation of advance actions and other
interested donors
3.3. Compile data on start-up performance MPI and IMTF, Line Aug., 2008 Start-up performance data
by indicators of project without advance ADB Agencies, WB
actions and other
interested donors
3.4. The Prime Minister (i) approves the MPI and IMTF, Line Sept., 2008 - Approved list of advance actions Prime
List of Advance Actions; (ii) issues ADB Agencies, WB Minister’s Decision
decision on the implementation of advance and other
actions that can be implemented under the interested donors - Prime Minister’s approval to pilot
current regulatory framework under all advance actions that required changes to
project approved in 2008; (iii) approves to legal framework in 6 project
pilot the implementation of advance
actions that required changes to regulatory
framework in 6 projects (each from each
Bank)
3.5. Implement and pilot advance actions MPI and IMTF, Line Sept., 2008
ADB Agencies, WB
and other
interested donors
2

3. 3.6. Conduct a survey on start-up MPI and IMTF, Line Jun., 2010 Report on survey findings
performance of projects ADB Agencies, WB
implementing/piloting advance actions and and other
compare that the data under 3.3 interested donors
3.7. Based on the survey findings, PM MPI and IMTF, Line Aug., 2010 - Decision of the Prime Minister
instructs concerned agencies to revise the ADB Agencies, WB
regulatory framework as appropriate and other - Government’s submission to the
interested donors National Assembly
In case the changes need to be approved by
NA, the Government shall make proposals
to NA for consideration
3.8. Revising relevant laws and regulations MPI/ADB IMTF, Line From Aug., 2010 Laws and other legal documents that
Agencies, WB facilitate implementation of advance
and other actions
interested donors
4. Agreed Agenda for Mutual
Engagement in Dialogue on remaining
Gaps in Procurement Regulations
4.1. Prepare a directive to be sent to each MPI, WB IMTF, MOC, 6 Jul., 2008 Project owner and PMUs are aware that
Line Agency and Project Owner of on- and JBIC Banks and other for contracts financed in whole or in part
going ODA funded projects informing interested donors through ODA, if there is difference in
them of (a) the remaining gaps and procurement regulations between the
differences between GoV Procurement Government and the Donor, the agreed
Regulations and donor’s good practice; procurement procedures in the legal
and (b) of the general rules, in line with agreement with the Donor prevail even if
Article 3 of the Procurement Law if there those procedures conflict with
is difference in procurement regulations Government regulations.
between the Government and the Donor,
the Legal Agreement prevail
4.2. Make concrete proposals for MPI, WB IMTF, MOC, 6 Jan., 2009 National Assembly is aware of these
improvement of Vietnamese procurement and JBIC Banks and other issues and proposed solutions raised by
legislation system (as per Good Practice interested donors the Government (MPI) at the National
“gaps” matrix) in order to enhance Assembly sessions
competition and transparency, economic
3

4. efficiency and harmonization
4.3. Revise templates for publishing MPI and IMTF, 6 Banks Jan., 2009 Procurement plans, Spectific
procurement notices in Vietnam WB and other procurement notices and notices of
Procurement Review and DMPP/MPI interested donors contract award(s) include the all the
website to meet minimum requirements for relevant information to meet the
harmonization minimum requirements for harmonization
4.4. Discuss and agree with 6 Banks on MPI and IMTF, 6 Banks Mar., 2009 Harmonized standard bidding document
Standard Bidding Documents for Works WB and other for NCB works and goods are issued
and Goods in ODA projects interested donors
4.5. Train project implementation staff, MPI and IMTF, 6 Banks Recurrent - at Project owner, PMU staff and control
including fiduciary control staff, at both WB and other least twice a year staff and inspectors understand how to
central and provincial levels. Formalize interested donors deal with major inconsistencies between
procurement training and establish a Government and Donor Procurement
certificate scheme procedures
4.6. Prepare Guidance note on mechanisms MPI and IMTF, 6 Banks Jun., 2009 A more transparent mechanism for
for dealing with procurement related WB and other dealing with procurement complaints is
complaints interested donors established
5. Reform of the Cost Norms System
5.1. Continue the reform of Cost Norms MOC, WB MPI, IMTF and Dec., 2008 Gap matrix
by: and JBIC other interested
donors
a. Identify the gap between Decree 99/CP
and international good practices
b. Identify possible areas for improvement
of Decree 99/CP
5.2. Propose the areas for further MOC, WB MPI, IMTF and Dec., 2008 Revised legal documents as needed
strengthening the government legal and JBIC other interested
framework and/or other necessary studies donors
based on the recommendation on
improvement of Decree 99;
5.3. Develop further the training proposal MOC, WB MPI, IMTF and Dec., 2008 Training proposals
based on the recommendation on and JBIC other interested
improvement of Decree 99 donors
4

5. 5.4. Technical short term training in three MOC, WB MPI, IMTF and Dec., 2008 - Dec., Related agencies understand how to
key areas: (i) Cost estimate; (ii) Quantity and JBIC other interested 2009 ensure the process smooth and in line
surveyor and (iii) Databank donors with the regulations
6. Accelerate Payment
6.1. Review current FM system and the MOF, AFD MPI, IMTF, Line Sept., 2008 Report about findings on the status of
need to strengthen M&E systems and Korea Agencies and budgeting and allocating counterpart
Eximbank other interested funds
donors
6.2. Develop disbursement targets on MOF, AFD MPI, IMTF, Line Sept., 2008 PMUs prepare annually/quarterty
regular basis to improve the timing of and Korea Agencies Project disbursements targets (even on monthly
disbursements in order to achieve 75% of Eximbank Owners and basis for critieal projects)
aid disbursed on schedule (Indicator 7 other interested
HCS) donors PMUs make reports on the actual
disbursement in comparison with the
scheduled disbursements
6.3. Conducting a survey on the PMUs of MOF, AFD, Selected PMUs Dec., 2008 Evaluate the existing regulations on
ODA loan projects and on the expenditure Korea and controlling budget management
controlling agencies (State Treasury, Eximbank agencies
VDB), focusing on efficiency of the
current procedure, capacity of the
expenditure controlling agencies, and
recommendations for improvement
6.4. Clarifying the roles and MOF, AFD IMTF and By 1st quarter, Recommedations for removing non-
responsibilities of agencies related with and Korea controlling 2009 essential expenditure checks and
ODA checking and payment process Eximbank agencies enforcement of business standard (i.e.
pilot the use of the threshold of
expenditure, the random controls, the ex-
post controls and make appropriate
mechanism depending on the risk analysis
and management for specific
expenditures/projects such as projects
using less conditional funds)
Issue new regulation to institutionalize
5

6. the results of reform process
nd
6.5. Provide training workshops on MOF, AFD IMTF and other By 2 quarter, Related agencies (State Treasury, VDB)
policies, regulations and professional and Korea interested donors 2009 understand how to ensure the process
procedures to the related staffs of the Eximbank smooth and in line with the regulations
expenditure controlling agencies (State
Treasury, VDB)
6.6. Harmonize the financial formats MOF, AFD IMTF and other Sept., 2009 Develop and use common financial
between the Government and donors and Korea interested donors formats
Eximbank
7. Alignment Monitoring Tool
7.1. Raising awareness of PMUs on using MPI and 6 Line agencies, July, 2008 Improve submission rate for 4th Quarter,
AMF in Decision 803/2007/QD-BKH: Banks Project Owners 2008
sharing the 6 Banks’ commitment to use and other
AMF, Help Desk and follow up PMU interested donors
implementation
7.2. Training on AMT skills taking MPI and 6 Line agencies, Ongoing Improve submission rate
advantage of PMU’s gathering at porfolio Banks Project Owners
review meeting and other
interested donors
7.3. Increase the use of MPI Development MPI Line agencies, Aug., 2008 Improve quality of submitted reports
Portal and the MPI’s Help Desk to solve Project Owners
all the common issues in process of
implementing Decision 803/2007/QD-
BKH (e.g.: Issues related to umbrella
projects, ongoing projects which are going
to complete and most frequent questions,
etc...)
7.4. Using AMT for a number of specific MPI and 6 Selected line Oct., 2008 AMT used in a number of specific sector
sectors (such as MARD, MOH, MOET, Banks agencies, Project
etc) Owners and
other interested
donors
8. PMU Reform
6

7. 8.1. Making survey on foregoing PMU MPI and Line agencies, Sept, 2008 Fact paper for on-going PMU reform
reform issues in several sectors including JBIC Project Owners based on the case studies of 6 Banks
Transport Sector and other Projects
interested donors
8.2. Making analysis for application of MPI and Line agencies, Nov., 2008 Recommendations to revise the existing
existing regulations by taking specific JBIC Project Owners legal document
examples from 6 banks projects in health, and other
education, and agricultural sector interested donors
8.3. Revising regulations (if necessary) MPI Dec., 2008 Revised legal document
9. Common policy framework for
resettlement and guidelines on
environmental assessment procedures
and implementation
Resettlement MONRE MPI, IMTF, WB Dec., 2008 Description on typology
and ADB and other
9.1. Develop a typology of illegal land interested donors
users
9.2. Describe the laws and regulations that MONRE MPI, IMTF, WB Dec., 2008 Description on legal framework
apply to illegal land users, and how they and ADB and other
are applied interested donors
9.3. Recommend actions to (i) improve the MONRE MPI, IMTF, WB Dec., 2008 Specific recommended actions
outcomes of resettlement of illegal land and ADB and other
users, and (ii) facilitate the dialogue of the interested donors
development partners with the
Government on the treatment of illegal
land users
9.4. Clarify how best to define the cut-off MONRE MPI, IMTF, WB Dec., 2008 Recommended definition of the cut-off
date and ADB and other date
interested donors
Environment MONRE MPI, IMTF, WB Dec., 2008 Revised Circular 08
and ADB and other
9.5. Support the revision of Circular 08 interested donors
9.6. Develop environmental assessment MONRE MPI, IMTF, WB Dec., 2008 Draft evironmental assessment
guidelines and ADB and other implementation guidelines
7

8. interested donors
9.7. Disseminate environmental MONRE MPI, IMTF, WB Dec., 2008 Stratcgic capacity building roadmap and
assessment capcacity building tools and ADB and other CD-ROM of “Viet Nam Environmental
interested donors Assessment Toolkit”
MINISTER
Vo Hong Phuc
8