Guidance for appraisal of non-project aid

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Guidance for appraisal of non-project aid

On January 09, 2014, the Ministry of Planning and Investment issued the Circular No. 01/2014/TT-BKHDT Guiding a number of articles of the Government’s Decree No. 38/2013/ND-CP of April 23, 2013, on management and use of official development assistance (ODA) and concessional loans of donors.

In accordance with this Circular, For non-project aid equivalent to under USD 20,000, the managing agency shall not conduct appraisal and decide to approve such aid on the basis of the competent authority’s decision approving the funding list; For non-project aid equivalent to USD 20,000 or higher, the appraisal of the non-project aid document must comply with some regulations such as the project’s reasonability in terms of its justification; its targets against priority policies at national, ministerial, sectoral and local levels; expected outcome or products against the project’s targets; each part and its specific activities to create the outcome or output product; target beneficiaries and the project’s budget allocation structure (ODA, non-refundable aid, domestic fund) for activities, including domestic and international consultants, domestic and overseas training, equipment and supplies, management and other expenses.

The project’s feasibility in terms of inputs of the entire project and each activity; size and level of assurance of funding of the project (ODA, non-refundable aid, domestic fund), domestic financial mechanism applicable to the project; duration of implementation; implementation solutions, including earlier implemented activities; organization and mechanism for management and implementation of the project; the Vietnamese party’s capacity to satisfy the donor’s conditions; plan and measures to monitor, evaluate and promote the project implementation; the project’s impacts; risks and risk prevention measures, finally, the project’s sustainability in terms of elements necessary to ensure promotion of the project’s impacts after its completion and the commitments or conditions of the donor and Vietnamese party to guarantee the project’s sustainability.

This Circular takes effect on February 26, 2014.