Supervision mission, April 2014

Transcription

Socialist Republic of Viet Nam
SUPERVISION REPORT - CAO BANG PROVINCE
Supervision report
Main report and appendices
Mission Dates: 16-25 April 2014
Document Date: 26-Apr 2014
Project No. 1422
Report No:
Asia and the Pacific Division
Programme Management Department
Supervision report - Cao Bang Province
Supervision report - Mission dates: 16-25 April 2014
Contents
Abbreviations and acronyms
iii
A.
Introduction
5
B.
Overall assessment of project implementation
6
C.
Outputs and outcomes
7
Component 1: Improving the Business and Investment Environment ............................................ 7
Component 2: Improving Rural Business Development Services .................................................. 8
Component 3: Amplification of Market Access for the Rural Poor ................................................ 11
D.
Project implementation progress
13
E.
Fiduciary aspects
15
F.
Sustainability
16
G.
Other
17
H.
Conclusion
18
Appendices
Appendix 1:
Appendix 2:
Appendix 3:
Appendix 4:
Appendix 5:
Appendix 6:
Appendix 7:
Appendix 8:
Appendix 9:
Summary of project status and ratings
Updated logical framework
Physical progress measured against AWP&B, including RIMS indicators
Financial: Actual financial performance by financier; by component and
disbursements by category
Compliance with legal covenants: Status of implementation
Knowledge management: Learning and Innovation
Progress Against Previous Mission Recommendations.
List of People Met by the SM 2013
Audit Log
ii
19
22
31
37
39
57
60
66
75
Abbreviations and acronyms
AWPB
BDS
CBD
CIF
CIG
CPC
CTA
DARD
DPC
DPI
DBRP
DoF
DOHA
DOLISA
DONRE
DPMO
FU
GDP
GoV
IFAD
LD
MARD
M&E
MSMEs
MTR
PCA
PD
PPC
PPMU
PPSC
PPP
SEDP
TA
ToT
VBARD
VC
VCTF
WU
Annual Work Plan and Budget
Business Development Services
Commune Development Board
Commune Investment Fund
Common Interest Group
Commune People's Committee
Chief Technical Advisor
Department of Agriculture and Rural Development
District People's Committee
Department of Planning and Investment
Developing Business with Rural Poor
Department of Finance
Department of Home Affairs
Department of Labour Invalids and Social Affairs
Department of Natural Resources and Environment
District Programme Management Office
Farmers' Union
Gross Domestic Product
Government of Vietnam
International Fund for Agricultural Development
Luxembourg Agency for Development Cooperation
Ministry of Agriculture and Rural Development
Monitoring and Evaluation
Micro, Small and Medium Size Enterprises
Mid Term Review
Provincial Cooperative Alliance
Programme Director
Provincial People's Committee
Province Programme Management Unit
Province Programme Steering Committee
Public Private Partnership
Socio-Economic Development Plan
Technical Assistance
Training of Trainers
Vietnam Bank of Agricultural and Rural Development
Value Chain
Value Chain Task Force
Women's Union
iii
A.
Introduction1
1.
Developing Business with the Rural Poor (DBRP) became effective on 6 May 2008 and will be completed 30
2
June 2014 . The project aims at sustainable poverty reduction through improving the business and investment
enabling environment, linking the poor with the market opportunities, supporting the rural business development
services and providing investment for commune level economic infrastructures, developing farmer’s groups in
partnership with the private sector along agriculture value chains. The total project cost is USD 25.8 million, of which
the IFAD loan is USD 17.2 million (67%), the total Government of Vietnam contribution is USD 2.5 million (10%). The
Government of Luxembourg technical assistance (TA) through the project LD VIE/029 is Euro 2,475,044
(approximately USD 3,490,000) which has been extended until June 2014.
2.
The last IFAD Supervision Mission was undertaken in partnership with the Provincial Project Management
Unit (PPMU) and the VIE/029 Technical Assistance team from 16-25 April 2014. Its objectives were to: (i) review
project performance over the last six years in general and in particular the last 12 months; and (ii) agree with the
Project Steering Committee (PSC) and the Province Project Management Unit (PPMU) on next prioritized actions to
fully achieve project objectives and ensure its sustainability, taking into account the project completion in two months,
and follow-up activities by the local government for replication and institutionalization of the project approaches and
practices.
3.
The Supervision Mission met with staff of PPMU and LD VIE/029, Department of Agriculture and Rural
Development (DARD), Department of Planning and Investment (DPI), Department of Labour, Invalid and Social
Affairs (DOLISA), Department of Industry and Trade (DOIT), Women’s Union (WU), Farmers’ Union (FU),
Cooperatives Alliance (CA) and Vietnam Bank for Agriculture and Rural Development (VBARD). The mission visited 5
project communes in 4 districts (Ha Quang, Nguyen Binh, Phuc Hoa and Trung Khanh). During the field trips, the
mission met with members of Common Interest Groups (CIGs), Commune Development Boards (CDBs) and District
Project Management Offices (DPMOs). The mission also met representatives from 6 private enterprises involved in
the project implementation. Key findings were discussed between the mission and PPMU and LD VIE/029 on 24 April
2014. The final debriefing of the IFAD supervision mission to the Provincial Program Steering Committee (PPSC) was
held on 25 April 2014.
4.
The Supervision Mission would like to extend sincere thanks to Cao Bang Provincial People’s Committee
(PPC), PPMU, LD VIE/029, representatives of line agencies, local governments at the district and communal levels,
local farmers and CIG members for their kind support and cooperation.
1
Mission composition: Mr. Nguyen Thanh Tung, IFAD Country Program Officer/ Institutional Management Specialist, Team Leader; Mr. Sauli
Hurri, Value Chain Specialist; Mr. Phan Duy Toan, Infrastructure and Procurement Specialist; Mr. Nguyen Ngoc Quang, Monitoring and
Evaluation, Poverty and Gender Specialist; Ms. Ngo Thanh Van, Rural Finance Specialist; Mr. Phan Minh Hanh, Financial Management
Specialist; and Mr. Henning Pedersen, IFAD Country Director together with interpreter Ms. Lien Doan joined from 21 to 25 April 2014.
2
Important dates include:
 Project effectiveness – 6 May 2008
 First Supervision Mission (Cao Bang) - 8-17 June 2009
 Commencement of LD VIE/029 Technical Assistance 16 November 2009
 Second Supervision Mission (Cao Bang) -13-23 September 2010
 Mid-Term Review - 8-20 May 2011
 Last Supervision Mission 6-16 May 2013
 Project Completion – 30 June 2014
 Loan closing date – 31 December 2014
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B.
Overall assessment of project implementation
5.
Overall implementation progress. In view of overambitious design compared to institutional capacity in the
province, leading to slow project start up, the implementation performance or likelihood of achieving development
objectives of the DBRP in Cao Bang is rated satisfactory. The mission appreciates efforts made by the provincial
agencies and the project management of DBRP and LD/VIE029 in follow-up implementation of the last supervision
mission recommendations. The annual implementation progress is also assessed as satisfactory.
6.
Key achievements are obtained in the following aspects: (i) Market-oriented Participatory SEDP: PPC/DPI
has led the institutionalization of MOP-SEDP, allocated funds from government for rolling-out MOP-SEDP in in all
project and non-project communes after project completion, and introduced MOP-SEDP as a subject in the local
leadership training school; (ii) Institutionalization of market-based approach: Value Chain Development Strategy
and 3 VC Action Plans for Cao Bang province consolidated and implemented by provincial and district value chain
task forces; (ii) Private sector partnership and contract farming: several enterprises established contract-farming
partnership including embedded extension with CIGs in the project supported value chains; (iii) Access to
agricultural services: 39,442 farmers have accessed to improved agricultural extension, veterinary and plant
protection services introducing higher value crops such as peanut, soya bean, tobacco, dragon fruit, cannas and
higher yield hybrid maize, which substantially improved farmer’s incomes; (iv) Common Interest Groups: Improved
access of the poor households to improved technologies, finance and social capital and market linkages through
participation in CIGs (475 CIGs of 10,008 households or 50% of all population of the project communes are wellfunctioning, 212 CIGs have market linkages, 250 CIGs developed members' savings for onlending to the poor; in
addition VND 1.5 billion of loans initially delivered by WU to 20 CIGs; (v) Financial service: the VBARD has
delivered 3835 loans worth VND 79,2 billion to enterprises and farmer households, more than 50% of borrowers are
poor and near -poor households; The Womens' Union has commenced rural lending activities; (vi) Rural
infrastructure: 215 infrastructure schemes including roads, irrigation, water supplies and market places, in which 63
schemes use the community force-account method; (vii) Community and Leadership Capacity Building: the
project has raised awareness and capacitated rural communities, changing poverty reduction modalities from direct
government poverty alleviation subsidies towards support for pro-poor market-based production models.
7.
As of 31/3/2014, the accumulated disbursement value was estimated at USD 23.82 million, out of USD
25.814 million, accounting for 92.2% of the total project budget. IFAD loan disbursement was USD 15.92 million, of
USD 17.218 million, or 92.5%. Actual commitments amount to to USD 16.88 million, an equivalent of 98% of total
funding from IFAD.
8.
However, the mission noted the following issues and challenges to ensure succeful closure and sustainable
outcomes and impacts of the project: (i) Business enabling environment: An adequate policy framework and
effective institutions with proper tools and resources to facilitate private sector investment in agriculture are yet to be
established at the provincial level; (ii) Institutionalization of MOP-SEDP: The province has allocated funding for
decentralized MO-SEDP planning. Subsequently, PPC is recommended to issue guidelines submerging resources
from NTP-NRD, programme 135 and programme 30A for actual implementation of the developed MO-SEDP plans;
(iii) Women’s Union Social Fund: the Fund establishment is pending and the WU capacities are to be strengthened
to manage the Fund; (iv) VBARD: as per the financing agreement, the provincial VBARD is to continue revolving the
IFAD credit line after completion of the project; (vii) Rural Infrastructure: Operations and Management mechanisms
of CIF financed infrastructure requires further strengthening.
Therefore, the mission recommends that the PSC/PMU prioritize the following actions:
Agreed action
Business enabling environment: The DARD should
continue to develop value chain and market promotion at
province level. The Investment Promotion Centre under DPI
should work as service provider rather than an administrative
institution. Tools and resources for investment and enterprise
support require strengthening.
Establishment of Social Fund at WU: PPC to issue Decision
on establishment of the Fund; DBRP to recruit qualified
national TA to build WU capacity for management of the Fund;
Subject to IFAD's no-objection to Social Fund Charter and
Operational Manual, allocate funds for capitalization of the
Fund.
Institutionalization of MOP-SEDP: PPC/DPI continue to roll
6
Responsibility
PPC/DARD/DPI
Agreed date
June
2014
onwards
PPMU,
PPC,
DPCs, VCTFs, FU,
WU, CA
April
onwards
2014
PPC/DPI
May
2014
out MO-SEDP in all communes and ensure resources
available from P135, NTP-NRD and P30A for implementation
of the MO-SEDP; Community O&M boards continue to
maintain the project-supported schemes with necessary
financial supports by CPCs and DPCs.
Knowledge management: Document good practices and
organize workshops to disseminate innovations by DBRP.
Project Completion: Prepare the Project Completion Report
and organize Project Completion Workshop.
C.
onwards
PSC,PPMU
PSC/PPMU
April
onwards
July
onwards
2014
2014
Outputs and outcomes
Component 1: Improving the Business and Investment Environment
The component overall rating moderately unsatisfactory
Sub Component 1.1: Raising Provincial Competitiveness
9.
The sub component rated moderately unsatisfactory. The project reported that main achievements from this
subcomponent include: (i) six approved policies from early project years, related to fields of fisheries development,
veterinary and extension service; (ii) yearly "Provincial Competitiveness Index" PCI workshops; (iii) establishment
of the Investment Promotion Centre (IPC) and it's work in development of internet-based investment information
portal. In addition, the SM notes that DARD has approved and promulgated further policy documents in support of
project Value Chains and pro poor agricultural services.
10. Main success indicator for these activities is improvement in province's ranking in VCCI Provincial
Competitiveness Index. Year 2010 ranking was 52./63, year 2011 Cao Bang fell to last position 63./63, and
remaining years the ranking has been 61./63. Another key indicator is the amount of private investments and
enterprise start-ups supported by the IPC. The annual target was 70 after 2012. As of now there has been no
recorded support for private sector investment.
11. For this sub component, several lessons are emerging: (i) the completed policy work was useful for primary
producers, but it was not directly targeted to improve the business environment or create incentive for investment;
(ii) organization of large PCI workshops at provincial level with many high level speakers was not the appropriate
strategy for identifying issues in the present business and investment environment; (iii) the IPC establishment has
been slow, and it's focus has been in studying PCI index rather than supporting individual enterprises. These
lessons are important for the province for considering alternate strategies in improvement of agribusiness
environment. With moderate effort it would be possible for a public sector agent such as the IPC to arrange one-toone business visits to discuss concrete issues with the entrepreneurs. This could lead to improved understanding
of opportunities and obstacles, and indentification of solutions. Initial steps could be done within 2014 by the
DBRP/IPC, as recommended below in sub component (1.2).
Sub Component 1.2: Improving the Efficiency of Equitized Businesses and their linkages to producers
12. The sub component rated moderately satisfactory. Four enterprises were selected to be supported by the
project: Le Thanh Company in H’Mong cow value chain, Seedling Joint Stock Company in Peanut and Black Pig
value chains, Khanh Ha Joint Stock Company in cassava value chain and Company of Animal Breeds and Feeds in
livestock value chains. Activities included (i) support for business planning; (ii) capacity building activities; and (iii)
support for establishment of relationships with CIGs. Of the supported four enterprises, mission has witnessed that
three partnerships have resulted in increased income generation opportunities for rural households. Only Le Thanh
Company has failed, due to severe market fluctuation caused by large volumes of Chinese buyers.
13. As per guidance by both Design Report and previous SMs, the project has yet to document the enterprise
support process. Lacking documentation is an issue not only hindering replication of good modalities, but also
resulting in lack of transparency. Careful evaluation of these processes should be conducted and made available to
project partners during the remaining project time, analyzing both successful and problematic investments.
7
Documentation should include information and assessment on: (i) good methods of selecting targeted sub-sectors
and private partners; (ii) planning and implementation process of the support activities; (iii) results of the support
including financial assessment of impact at both enterprise and household levels; and (iv) resolved issues for
partner enterprises, and remaining constraints for continued growth including those related to the policy
environment.
14. The SM notes that project efforts outside this sub-component (see CIG and VC sections below) have resulted
in further PPP modalities in sugar, tea, bamboo and rabbit commodities. These should be included in the thorough
documentation of PPP process.
Agreed actions
LuxDev to use consultancy for strategic direction of IPC
towards concrete and direct dialogue with enterprises, and
build capacity accordingly
Thorough documentation of DBRP PPP processes,
including financial analysis of the impact and analysis of
remaining policy constraints of the partner enternprises
Based on concrete findings and recommendations by the
PPP study, DPI is recommended to include a PPP workshop
with partner enterprises and policy makers in the closing
phase of the DPRB project
Responsibility
LuxDev, IPC
Agreed date
May-June
2014
PPMU
May-June
2014
IPC / DPI
By end 2014
Component 2: Improving Rural Business Development Services
The component overall rating satisfactory
Sub Component 2.1: Value Chain Development Services
15. The sub component rated satisfactory. The design and implementation of VCD services received satisfactory
attention by the project and it's key partner DARD, which now shows interest in institutionalizing the value chain
approach. The impact is still moderate regarding development of institutional capacities and VC support units,
particularly in terms of practical understanding on business opportunities and constraints. But in fact, local value
chain opportunities have materialized through a simple localized intervention including: (i) decentralized VC
planning mechanism, (ii) subsequent VC-targeted farm production improvement through CIGs and farming models,
and (iii) CIG-enterprise workshops to connect farmer groups with markets. More than 200 farmer groups of the
project currently are engaged in market based based production and have business relationship with the VC lead
enterprises (see more info below at 3.1). The project VCD design and implementation included following sub
categories:
16. Value Chain Analysis and Value Chain Projects. DARD with support by DBRP and LD VIE/029
established a mechanism for both provincial and local level Value Chain Analysis and Value Chain Support. The
results include: (i) Value Chain support units established at the province capital and 10 districts; (ii) three provincial
Value Chain Projects (H’mong cow, black pig, and arrowroot vermicelli) institutionalized to continue beyond project
life; (iii) district level value chain action plans provided a framework for improvement of farm productivity and CIGs,
as per local opportunities and availability of lead firms; (iv) district level workshops connected processing
enterprises with primary producer CIGs, leading to new income opportunities for households by joining commercial
agro value chains of peanut, tea, sugarcane, bamboo, arrowroot, cassava, tobacco, rabbit, H'mong cow and black
pig.
17. The district level VC support units are recommended to continue using CIG support as the main vehicle for
farm improvement and value chain promotion. Following both MARD and MPI vision and recently issued Decisions,
focus of the provincial level VC support unit is recommended to change from farm improvement to support of lead
enterprises. This requires design of incentive package for agricultural lead firms, dedicated support for agribusiness
environment, and capacitating of implementing key officers.
18. Business Development Services. In support of the value chain stakeholders, the project provided BDS
trainings and services to enterprises, cooperatives and farmer CIGs. The BDS was provided via various channels
8
including: (i) ToT training for mass organizations Women's Union and Farmers' Union, to improve CIG support; (ii)
ToT training for staff of selected lead enterprises to enable supplier CIG support and coordination; (iii) direct
recruitment of BDS service providers to support local MSMEs, cooperatives and CIGs; (iv) training and certification
of private households to become private local Plant Protection and Veterinary Medicine service points. A total of 11
enterprises, 140 business households and more than 9000 farmers were involved in the BDS activities. Particularly
the enterprise-facilitated BDS/agricultural service method shows high replication potential beyond project. As part of
the above-mentioned PPP study (see recommendation at 1.2), this method should be documented and province is
recommended to consider institutionalization.
19. Commodity market information system. In support of transparent market information of value chain
commodities, the DoIT was requested to provide direct household-targeted market information via mobile phone
messaging and leaflets to CIGs and bulletin boards. Results show that although farmers have improved their use of
market information, effectiveness of current practice is still modest. The phone messages and direct leaflets are not
realistically implementable without financial support by DBRP, and this practice will stop after project closure.
Simple market info leaflets to commune offices via email is more cost effective, enabling prints to be hang at
bulletin boards, providing reference for traditional farmer-to-farmer communication. The SM recommends DoIT to
institutionalize the collection and assembly of local market information, for sending to communes via email. For this
method to be effective, commune level is required to collaborate in both collection and distribution of the
information.
20. Labour market development. The project also supported employment creation in value chain -related agro
enterprises, and generally in agricultural and non-agricultural sectors. Employment activities included: (i) vocational
trainings to 295 people (213 female), where prior agreements were made with employing enterprises, leading to full
time employment for 234 people, many of which women in brocatelle weaving business; (ii) 3 provincial and 20
district level job fairs organized with total participation turns of 74 enterprises and 14570 people; (iii) 5 district level
workshops on labour market information with total participation turns of 15 enterprises and 520 people; and (v) a
survey on labour demand conducted by the Job Center. The direct agreement on training requirements and posttraining employment with value chain enterprises proved an effective method, which should be considered for
systematic replication by the province.
21. Food safety standards. The project supported four companies to obtain food safety certificates. Two out of
the four companies are still effective, other two have lost their market share due to market fluctuation. The mission
particularly notes the successful collaboration with Tam Hoa cooperative by support in product certification, market
fair participation and establishment of linkages between the cooperative and farmer households. The successful
example and skills of such cooperatives and SMEs could further promote small scale agribusiness in the province,
if used as service providers in entrepreneurship training workshops.
Agreed actions
DARD is recommended to design an incentive package for
agricultural lead firms and capacitate Value Chain support
unit for its effective implementation.
DoIT is recommended to continue disseminating market
information with commune level support in collection and
distribution of the information.
PPMU recommended to thoroughly document good
practices in private sector linkages with CIGs, including
public support to embedded extension service.
Responsibility
DARD
Agreed date
Continuous
DoIT, CPCs
By end 2014
PPMU
April-June
2014
Sub Component 2.2: Farm Productivity Improvement Services
22. The sub component rated satisfactory. The primary production basis for value chain development was
strengthened with implementing partners, mainly with the DARD. This collaboration included service improvement
and extended efforts by plant protection, veterinary and extension services to introduce and improve primary
production in each VC. In addition, support to corn, green beans and soya beans production increased yields
dramatically, improving food security and releasing land for income generation via cash crops and livestock feed.
9
23. Activities included: (i) ToT refresher for 479 (including 205 females) extension, veterinary and plant protection
staff, based on agro-technology guidelines by DARD; (ii) training and certification for 68 private veterinary / plant
protection supply stations; (iii) four lead enterprises were contracted to deliver value chain embedded extension;
(iv) establishment and replication of 371 farming models by DARD and Farmers' Union; (v) 170 households
supported to move cattle out of family living quarters, targeting mainly the poor; (vi) total 39422 people (including
16881 females) trained in agricultural techniques.
24. To sustain the impact and good practices, the SM recommends to conduct (i) financial analysis of successful
farming models; (ii) cost and impact analysis of farmer-to-farmer training methodology by the FU; and in particular
(iii) cost and impact analysis of VC lead enterprise facilitated extension services, as part of the PPP methodology
study mentioned above at section 1.2.
Agreed action
PPMU to conduct financial analysis of successful farm
models and innovative extension service methodologies, to
be used for replication
Responsibility
PPMU
Agreed date
April-June
2014
Sub Component 2.3: Rural Finance
25. The sub component rated moderately satisfactory. The mission observed the following progress: (i) The
VBARD continued to disburse IFAD credit to target group. Up to March 31, 2014, the provincial VBARD disbursed
production loans worth VND 79,119,232,848 by the IFAD credit line. The outstanding balance up to 31/3/2014 is
VND 39,991,009,095 for 1,534 borrowers. Out of 3,835 loans issued so far, more than 50% of borrowers are poor
and near poor households; (ii) 153 of the borrowers are members of CIGs, with the outstanding balance of VND
3,188,000,000, amounting to less than 8% of outstanding balance. Many CIG members are unable to access the
loan from VBARD due to the strict collateral requirement; (iii) The credit line allocated to VBARD was fully
disbursed, but currently only 77% is outstanding in the province. The remaining amount was transferred to VBARD
HQ after collection due to the decrease in borrowing demand of local people, at the same time, the requirement of
MOF (according to the the agreement between IFAD and MOF, the fund will be gradually returned during 20132027, twice yearly in June and December). The SM notes that Cao Bang VBARD lacks incentive to utilize the IFAD
credit line, since annual interest (6%) is higher than the cost of savings mobilization; (iv) Lead enterprise in-kind
onlending to farmers is also practiced in Cao Bang (SM noted case of Seedling Joint Stock Company). This shows
positive results to VC development when lacking other credit forms. However, the SM suggests the lead enterprises
to build a clear information system allowint farmer awareness of the in-kind loan.
26. The LuxDev VIE/029 supported an impact evaluation of the VBARD credit line, focusing on three main
indicators: (i) change in business efficiency, (ii) capacity of financial management, and (iii) social impact. Based on
the evaluation, a training course on lending procedures was provided for 58 VBARD staff.
27. The CIG Development Fund, administered by the Women's Union, commended disbursements to CIG
members in December 2013. As of now, 1.5 billion is disbursed to 80 households. The loan size ranges between 5
to 30 million, average being about VND 19 million. The maturity is from 12 to 36 months, with 2 repayments per
loan cycle for the principle and monthly for interest. This is not in accordance with best microfinance practices.
Further, 250 CIG groups mobilized savings of total VND 1,09 billion, a nearly 100% increase compared to 2012.
The increased levels of savings indicates a good potential for further rollout of microfinance activities in Cao Bang.
28. Following the SM 2013, the operation manual of the CIGs Development Fund under DBRP was revised.
However, the new version is inadequate and requires further work in terms of (i) loan products and procedures, (ii)
management system, and (iii) interest rate policy to ensure financial sustainability. The mission notes that the
current monthly rate of 0.65% is still insufficient to cover operational costs and risk.
29. The Women's Union application to establish a Social Fund under Decree 30/ND-CP/2012, was submitted to
PPC and currently awaits approval. Following the expected approval within the next month, the draft Charter
requires further revision regarding organizational structure and mission statement. Following the revision, a detailed
Operational Manual needs to be developed and approved. Leaders of the PWU are aware of these issues and
commitment to receive project financed capacity building and subsequently carry out the required steps.
10
30. The mission notes that the project financed technical assistance for CIGs Development Fund and for
establishment of the Social Fund was grossly inadequate and lacked both quality and vision. Regarding further
support, the planned contract to develop software for the Social Fund needs to be postponed until workflows and
management structures of the Fund have been determined.
31. Beyond the committed and approved funding by the project in the AWPB to capitalize the Social Fund, the
DBRP is to review unused project budget and allocate further capital for this purpose, subject to IFAD's noobjection to the Charter and to the Operational Manual.
Agreed action
VBARD credit line continues to revolve in project areas until
maturity of IFAD loan.
VBARD to consider providing loans to enterprises for
onlending to farmers in-kind.
DBRP to support Women's Union in Social Fund
establishment.
DBRP to support Women's Union in development of a road
map and strategy for the Fund until 2020, and related
capacity building for the Fund staff.
Postpone contract for software development for the Fund
until appropriate structures are at place.
Submission of the SDF Charter and Operational Manual to
IFAD for it's no objection prior to further investment.
Responsibility
VBARD
Agreed date
Continuous
VBARD
Continuous
PWU, PPMU
ASAP
PWU, support by
PPMU and LuxDev
April – June,
2014
PPMU
Immediate
PPMU
Immediate
Component 3: Amplification of Market Access for the Rural Poor
The component overall rating satisfactory
Sub Component 3.1: Enhancing Common Interest Groups
32. The sub component rated satisfactory. The proportion of project commune households participating in CIGs
is about 50%. Total amount of households participating in the established 475 CIGs is over 10 000, including 3535
poor households, 1012 near-poor HHs, and 4054 HHs represented by female. Among the the CIGs, 212 have
established common business relationship with value chain enterprises, and 250 have initiated savings activity for
group microlending (see details above). The poverty rate of CIG members has reduced from 54% in 2011 to current
35%.
33. Through support by the DBRP, LD VIE/029, Farmer's Union, Women's Union and Provincial Cooperative
Alliance, the CIGs have become the key instrument for value chain development in the province. The CIG structure
adds value to production by enabling coordinated VC relationships, and/or farmer group development towards
microentrepreneurial units, and systematic dissemination of improved agricultural practices. The support to the CIG
development included (i) preparation of a CIG toolkit including manuals for CIG establishment, CIG savings and
credit, CIG production planning, and CIG classification system; (ii) establishment of CIG development strategies
and support units in 10 districts; (iii) ToT trainings and subsequent delivery of CIG support by partner organizations
WU, FU and PCA, and 4 value chain lead enterprises; (iv) delivery of group management and business trainings to
17654 CIG workshop participants; (v) organization of 33 rural development workshops with CIGs, local enterprises
and local officials; and (vi) organization of 20 market linkage workshops with CIGs and local lead enterprises,
leading to 11 companies signing contracts with 132 CIGs.
34. The supervision mission appreciates the CIG process by Cao Bang province. The good practices include
practical manuals, a classification system for market readiness, focussed local agribusiness workshops, and CIG
support by lead enterprises such as Cao Bang Seedling Joint Company and Khanh Ha Joint Stock Company.
These processes should be documented thoroughly for continued efforts within Cao Bang and for replication in
other Vietnam provinces.
11
Agreed action
PPMU to document CIG support process and results
Responsibility
PPMU
Agreed date
April-June
2014
Sub-Component 3.2: Participatory Planning and Investment
35. The sub component rated satisfactory. The project with support from LD VIE/029 has achieved results as
follows: (i) The provincial budget of 7 million VND per commune was allocated for SEDP planning in 199
communes; (ii) By DPI lead and support from DBRP, VIE/029 and PSARD, a roadmap for institutionalization of the
commune SEDP planning in Cao Bang province was developed and presented at a provincial workshop in
December 2013; (iii) An assessment on results, status and recommendations on participatory SEDP planning in
Cao Bang was carried out with support from LD VIE/029; (iv) The establishment of provincial and district technical
working groups on SEDP were consolidated; (iv) A training curriculum on commune SEDP planning was developed
and accepted for use by the provincial political school for training district and commune cadres; (v) About 90% of
surveyed villagers are satisfied with the village planning, and the rate is about 85% at the commune level (RIMS
Survey Report, 2014).
36. However, there are still a few remaining challenges for up-scaling and institutionalization of the participatory
SEDP: (i) the SEDP database software was developed in 2012 and upgraded in 2013, but it still needs to be
consolidated and district and commune planning staff need to be trained for operation; (ii) The SEDP manual is to
be updated, as required after 4 years of application.
Agreed action
The SEDP database software to be consolidated; district and
commune planning staff trained accordingly
DPI to update of the SEDP manual and organize related
workshop; DPI to annually synthesize and disseminate
information about available state and non-state funding for the
commune implementation of the MOP-SEDP
Responsibility
DPI,
PMU,
LD
VIE/012, PSARD
DPI,
PMU,
LD
VIE/029, PSARD
Agreed date
Quarter
II
2014
June 2014
Sub-Component 3.3: Commune Investment Fund
37. The sub component rated moderately satisfactory. The project with support from LD VIE/029 has achieved
results in CIF implementation as follows: (i) A total of 215 civil works (including 140 roads, 55 irrigation schemes, 5
water supply systems, 6 rural markets, 5 low-voltage electricity lines) were implemented by investment cost of
VND214.2 billion, including community contributions of VND19.8 billion; By 31 March 2014, 5 schemes remain
under construction; (ii) The force account method was applied for 64 civil works with a total cost VND21.8 billion,
resulting in the mobilization of a higher contribution (about 27% of total investment costs) by beneficiary groups; (iii)
Commune staff were trained on preparation of liquidation documents for force account schemes (March 2014); (iv)
O&M groups for completed CIF schemes were established in 50 project communes; O&M plans for CIF civil works
were developed; (v) A workshop for sharing experience on decentralized implementation of small-scale civil works
was organized in April 2014 with participation of provincial agencies, national programmes and donor-funded
projects in Cao Bang; (vi) The provincial regulations for implementing CP135 phase 3 was drafted with provisions
to apply force account method for at least 30% of the investment fund under the program, using the DBRP CIF
manual as key reference; (vii) Enhanced commune capacities are a central input for on-going national programs
such us NRD program and CP135.
38. The mission however identified a number of issues related to CIF implementation: (i) Due to IFAD HQ and
MOF delays, payment progress for completed CIF civil works has been delayed. By 31 March 2014, payment
requests for completed CIF works of about VND18 billions are still under preparation and processing. Payments of
about VND 8 billions for CDBs and construction material suppliers are long overdue, resulting in complaints; (ii)
Liquidation dossiers for 181 completed CIF civil works are still to be prepared for appraisal and approval.
12
Agreed action
Provide instructions and supports to commune management
boards on preparation of payment requests and liquidation
dossiers for completed CIF civil works
PPC to review and replicate successful experiences of Force
Account method in infrastructure development
Urgently prepare and process required withdrawal applications
D.
Responsibility
PMU, DPMOs
Agreed date
Quarter
II
2014
PPC, P135, P30A
June
2014
onwards
ASAP
PMU, IFAD, MOF
Project implementation progress
39. Project management performance. Rated as satisfactory. (i) Over the past six years the project
management structure with 339 staff at PPMU, 10 DPMOs and 50 CDBs has been developed, and was
consolidated during 2013 by further trainings on results-based management, finance management and small-scale
infrastructure force account modality. (ii) As recommended by the SM 2013, regular monthly and quarterly meetings
among CDBs and DPMOs were held to discuss work plans and to share experiences. (iii) TA by VIE/029 enabled
transfer of CDB capacities on result-based management to NTP-NRD. (iv) The project management has improved
ownership of the province line agencies and promoted decentralization to the District and Commune People’s
Committees (DPCs and CPCs). (v) High commitment of the provincial agencies, DPCs and CPCs was noted by the
SM, enabling replication of the innovative approaches introduced by the project. (vi) The project management was
successful in introducing the NRD force account methodology. (vii) Knowledge management was emphasized by
the project and the VIE/029 to review, document and share experience in MOP-SEDP, CIG development and smallscale infrastructure.
40. However, the following issues require attention: (i) Except the activities related to the project closure such as
project completion report preparation and the project completion workshop, and the activities under existing
contracts, no additional activity should be financed by DBRP after 30 June 2014; (ii) The PPC and line agencies
should continue upscaling the MOP-SEDP, value chain task forces, CIG support, women’s saving and credit
groups, the force-account method, community supervision and O&M boards; (iii) The project management staff at
all levels should be prioritized to work for national and donor-supported programmes/projects to capitalize their
capacities built by the project.
Agreed action
Conduct the project completion report indicating the project
achievements/failures at the outcome and impact level; at the
same time, considering the issues of replication and
sustainability
Project Completion Workshops at district level
Final Project Completion Workshop
Responsibility
PSC, PPMU
Agreed date
Jun-Aug
2014
PSC,
PPMU,
DPCs
PSC, PPMU
Sep-Nov
2014
December
2014
41. Coherence between AWPB and Implementation. Rated as satisfactory. The project has adhered to the
suggestions of the SM in 2013. The AWPB 2014 was developed and approved by IFAD Vietnam and PPC in
January 2014. For the last implementation period, priorities were given to (i) upgrading key value chains (H'mong
cow, glass-noodle, black pig); (ii) replication and institutionalization of SEDP; (iii) strengthening existing CIGs; (iii)
CIF implementation and scaling-up related good practices; and (iv) conducting required final evaluations (outcome
survey, RIMs). To date, most of project activities have achieved expected results and targeted at designated groups
including poor households, women, CIGs, business households, and VC enterprises.
42. Monitoring and Evaluation. Rated as satisfactory. The M&E system has functioned well thanks to
competent DBRP staff and high quality TA by VIE/029 project. During its lifespan, the project has timely revised the
log-frame to meet with either the recommendations of the SMs or the actual situation. Additional indicators (as part
of RIMS indicators) have been updated to measure the diversified activities. All required M&E activities (e.g. annual
outcome survey, final RIMS survey) have been conducted providing substantial database for the project progress
13
and completion reports. Indicators at three levels (output, outcome and impact) collected through the surveys have
revealed that the project has reached it's targets.
43. However, the M&E performance could have been better if attention was paid to provision of a more specific
set of LF indicators with specific targets including absolute numbers. In the final phase of the project, the
successes/achievements of the project need to be thoroughly documented.
44.
The SM suggests the project to do the following actions:
Agreed action
Survey and document project good/bad practices as lessons
learnt for other projects/programmes.
Responsibility
PPMU
Agreed date
May,
2014
onwards
45. Gender focus. Rated as satisfactory. The project has developed a gender mainstreaming manual as
guidance for women's involvement and empowerment in the project activities. As a result, portion of women
participating in project activities has been approximately 47%, against the objective of 30%. Under specific
activities, (i) women account for 49.3% of all beneficiaries in capacity building activities by the project; (ii) the
proportion of women in CIGs member is 45.5% and they play key role in rolling out the savings and credit function
of the groups; (iii) 41% of SEDP groups comprised of female and women reported empowerment effect. The
mission notes that the perennial poor households are often the ones with women as head (husband passed away
or disability), and the SM recommends a greater attention to be paid to this in the rural finance activities.
46. Poverty focus. Rated as moderately satisfactory. The project area covers 10 districts which are the poorest
districts of the province. There are 4 districts (Ha Lang, Ha Quang, Thong Nong, Thach An) with 20 communes in
the list of 62 poorest districts nationwide. The project has positively contributed to poverty reduction of the province.
The average poverty reduction rate in 10 project districts is higher than average rate of the entire province.
According to the DOLISA records, poverty rate in the province has been reduced 5.1% (2011), 5% (2012) and 3.8%
(2013). Meanwhile, according to the project monitoring reports, the average poverty reduction rate in 10 project
districts is 5.7% in 2011, 4.8% in 2012 and 4.3% in 2013.
47. Effectiveness of targeting approach. Rated as satisfactory. RIMS data shows 50% poor households
participating in the project activities. The SM considers 50% as satisfactory achievement, however notes that the
project should have proposed specific poverty targeting at previous supervision missions. CIG development is the
key activity having direct impact upon the rural poor. To date, the proportion of the poor participating in CIG is 45%,
poor households participating in the IFAD credit line to VBARD about 44%, SEDP development groups have about
50% poor households, and most of the poor households substantially benefit from the infrastructure
implementation.
48. Climate and environment focus. Rated as moderately satisfactory. Under design report subcomponent 1.3,
there was one indicator measuring the awareness of rural poor towards environmental protection and climate
change, however this indicator was suggested to be removed in the MTR. The mission notes that even there is no
indicator to measure the impact of the project activities to environment and climate (and vice versa); there are
various good practices of climate change adaptation including (i) introduction and wide plantation of greenbean,
soybean and peanut varieties that can resist to drought; (ii) plantation of winter-proof fodder providing food for
cattle during winter; and (iii) introduction and implementation of animal food fermentation techniques to preserve
food for pig and cattle during winter.
49. Innovation and learning. Rated as satisfactory. In terms of innovation, project has developed several new
poverty reduction methodologies for the province and beyond: (i) systematic CIG methods including classification;
(ii) local agribusiness workshops for CIG-enterprise relationships; (iii) decentralization of VC planning; and (iv)
results based management system for rural development.
50. Regarding learning processess, (i) province and quarterly newsletter was issued in order to share
information on project implementation progress; (ii) Provincial Broadcasting Center issued 2 reportages on DBRP
each month; (iii) Project news were published in Cao Bang Newspaper; (iv) A number of learning visits was
organized for staff from line agencies, partners, and project managemen; (v) A provincial workshop for sharing
experience on decentralized management of small-scale infrastructure schemes was organized in April 2014; (vi)
14
Assessments on results and impacts of CIF, community supervision boards and participatory SEDP were
conducted; (vii) With support of LD VIE/029, a documentary video on project results and impacts was produced and
disseminated; (viii) Documentation of project results and lessons learnt was conducted by a consultant with support
by LD VIE/029.
51. Partnerships. The partnership between the DBRP and LD VIE/029 contributed substantially to the
achievement of the project objectives, and was remarkably improved during the last two years. In addition, the
cooperation with an on-going Swiss Development Cooperation program (PSARD) ensures future support for
PPC/DPI roll out of the participatory MO-SEDP and PPP models.
E.
Fiduciary aspects
52. Financial management. Rated as moderately satisfactory. The Mission noted that: (i) Recommendations of
the previous Supervision Missions and of the auditing firm on financial management have been or are being
implemented by the project management; (ii) Monitoring of financial activities by DPMOs and CDBs were carried
out by PPMU regularly and periodically; cost norm implementation was under control; accounting documents,
balance reconciliation statements with Treasury were timely collected to support Withdrawal Application preparation
and update; accounting documents were archived at PPMU to prepare for project closing; (iii) asset management,
monitoring and inventory were implemented according to FMM; (iv) Accountants at CDB received regular training
and capacity strengthening to undertake well the role as project accountants at commune level. Since 2013 until
now, many commune accountants in the project area have been rotated to other areas, but PPMU advised the local
authorities to assign them with the part-time task as accountants for the project, thus, organization was maintained
and accounting quality was improved.
53. Accounting software: Figures in the General Ledger and Detailed Book of some accounts differed. As a
consequence, it was time consuming for accountants to manually process such data to consolidate financial reports
and administration reports to support project management and implementation. At the time of the mission, all
original invoices at CDBs had been collected and updated into the accounting software. However, the software has
not been updated accurately regarding some data from accounting books. The Mission recommends that the
project strengthen reviewing, classifying, revising, and updating accurately and comprehensively required
accounting information into the accounting software to support book closure and financial report preparation, to
facilitate final settlement of the fiscal year, as well as to prepare for closing project activities by 30/6/2014.
54. Contract management: The project contract registry and monitoring book was only updated after advance
or payment for providers were made, instead of being updated immediately after contract signing.
55. Debt management: payables to suppliers were recorded by actual amount of money advances, instead of
by actual acceptance value, thus not reflecting accurately the amount of implemented work and the payable duty to
suppliers.
56. Preparation for project closure by 30/6/2014: At the time of the mission on 22/4/2014, 215 CDF-invested
works had been completed, accepted and put into operation. However, final payment settlement has not been
approved by relevant authorities for any of such work, to use as the basis to record the value of the assets formed
after the investments were made, in order to handover to local communities to manage and use according to
regulations by the GoV
57. Disbursement. Rated as satisfactory. As of 31/3/2014, the accumulated disbursement value was estimated
at USD 23.82 million, out of USD 25.814 million, accounting for 92.2% of the total project budget. IFAD loan
disbursement was USD 15.92 million, out of USD 17.218 million, or 92.51% as planned. Actual implementation
value totalled up to USD 16.88 million, an equivalent of 98.04% of total funding from IFAD. The Mission
acknowledged the effort of the project management in collaborating with financial agencies and district Treasuries
to simplify payment procedures, and supporting CDBs push payment for activities, hence, speeding up project
disbursement. However, the delayed transfer of funds to the project designated account, due to the IFAD HQ
lengthy withdrawal application approval process, has resulted in funding shortage for payments due. In case of
delays in force account works payments, the CPCs had acted as the guarantors for material purchased from local
providers. Thus, delayed payment negatively affected their reputation, affecting negatively replication of the model.
15
58. Counterpart funding. Rated as moderately unsatisfactory. As of 31/3/2014, disbursement from the
counterpart funding by the GoV was USD 2.06 million out of USD 2.53 million, accounting for 81.3%. The funding
allocation plan from the beginning of the year basically covered the AWPB requirements. The applied exchange
rate of VND16,000 for USD 1 as per Financing Agreement for AWPB funding allocation resulted in funding shortage
for payment at the end of the project, when most CIF-funded projects were completed and payments need to be
made (the exchange rate in April 2014 is VND 21, 036 for USD 1). The Mission recommends that the Project
proposes to the PPC to timely allocate additional funding to ensure enough funding for public debt payment and
financing project activities in the current period.
59. Compliance with loan covenants. Rated as satisfactory. Other than the counterpart funding allocation
mentioned above, the Project has complied to terms in the Financing Agreement and documents revising the
Agreement relating to project activity implementation, procurement, disbursement, financial management and
auditing.
60. Beneficiary contribution: Beneficiary contribution in cash, in labor and in kind is estimated at USD 990,000
compared to USD 1.05 million as expected in the Financing Agreement. Especially, implementation of the force
account method has mobilized substantial local and beneficiary resources, which resulted in cost saving and
increased sustainable investments.
61. Procurement. Rated as moderately unsatisfactory. The project procurement procedures are in line with Loan
Covenants as well as national procurement guidelines. Through random spot checks of (TA) contracts, the SM
notes that some outputs lack realism and relevance. More specifically, some technical outputs by contracted
specialists do not adequetly respond to requirements by the project. In some cases, quality control requires
strengthening.
62. Audit. Rated as moderately satisfactory. Audit on the 2013 financial report has not been done yet. At the
time of the mission, selection of an auditing service supplier was in process. The Project has sent Invitation for
Expressions of Interest to the short list of audit companies recommended by IFAD. The audit report for the 2012
Financial Report was prepared by Delloite. The auditors completely accepted the Financial Report, Special Account
Report, Withdrawal Applications, Project Compliance and attached a Management Letter. Recommendations in the
Management Letter has been/are being implemented by the project management to strengthen the internal control
system.
Agreed action
Contract management: Gather and review contracts and
timely update the key parameters: subjects, content,
contract value, implemented value, payment value,
payables and receivables.
Counterpart funding: Review activities and identify
counterpart funding requirements for the project closure
period, and submit these to the PPC for decision.
Preparation for project closure: Reconcile outstanding
debts, speed up payments, record fully accumulated
expenditures for project implementation in the accounting
software, prepare asset inventory, and prepare options for
handling over assets after project completion according to
regulations of the GoV.
F.
Responsibility
PPMU
Agreed date
Quarter 2/2014
onwards
PPMU, PPC
Quarter 3/2014
PPMU
Quarter 2/2014
Sustainability
63. Institution building. Rated as satisfactory. The project-supported institutions will be sustainable in the
following: (i) the MOP-SEDP mechanism has been institutionalized by the PPC; (ii) the saving and credit groups will
be institutionalized under the Women’s Union Social Fund, yet to be established; (iii) Value Chain Strategy and
Action Plans have been adopted by DARD and DPCs. At the closing phase, special attention should be given to
consolidating value chain task forces (VCTFs) and the community supervision and O&M boards, for which the
mission recommends the PPC to ensure sufficient funds.
16
64. Empowerment and social sustainability. Rated as satisfactory. The SM is pleased with the contribution of
the project to empowerment and social sustainability. The SEDP planning process (i) mobilises the participation of
the poor, the women and the ethnic minorities, (ii) strengthens the capacities of the HHs in market access and
economic development, and (iii) consolidates their position within society through involvement in decision making
process. The implementation of CIGs is the key element to build social cohesion and collective action within the
communities. However, the SM notes that greater attention needs to be paid by the project to development of a
strategy for continued CIG support.
65. Quality of beneficiary participation. Rated as satisfactory. The SEDP planning process has provided a
good opportunity for the people, especially the poor, to raise their voices in the process of setting priorities for
investments, and to engage directly in implementation and monitoring of approved activities. The effort is upscaled
throughout the province by institutionalization of the SEDP. In addition, through VIE/029 TA, the beneficiaries could
participate in qualitative monitoring and evaluation of the project implementation.
66. Responsiveness of service providers. Rated as satisfactory. In Cao Bang the service sector has positively
responded to the demand of farmers for market-oriented agriculture production. In particular the province has
enabled the private sector to responsively provide services in agricultural input supply, veterinary and plant
protection. The farmers are increasingly involved in selecting private service providers thus improving the quality,
outreach and diversity of services.
67. Exit Strategy. Rated as satisfactory. The project in collaboration with PPC and DPI is implementing its exit
strategy comprising activities and their responsibilities as follows: (i) DPI in institutionalizing MO-SEDP, (ii) DARD in
implementing the NTP-NRD and developing agriculture commodity value chains, (iii) WU in development of
microfinance and saving services.
68. Potential for scaling up. Rated as satisfactory. The scaling up potentials have already been realized by the
local government as outlined above, including the (i) rollout of MO-SEDP, (ii) pro-poor value chain development
through VC plans, (iii) saving and credit activities through the WU Social Fund; (iv) small-scale infrastructure force
account through national programmes.
G.
Other
69. Impact on physical and financial assets. Rated as moderately satisfactory. By 31 March 2014, 145 km of
rural road, 55 km irrigation schemes, 6 low-voltage electricity lines, 5 water supply schemes and 6 rural markets
have been completed and put in use serving total 13,178 households. The RIMS survey report in 2014 shows that
about 75% of surveyed households in the project communes assessed transportation of agriculture products
improved.
70. The total accumulative contribution by benefiting groups for 215 CIF civil works amounted VND19.8 billions
out of the total investment cost VND214.2 billions. Community ownership and sustainability of CIF investment was
enhanced through (i) decentralized management of CIF – commune as investment owner; (ii) participatory SEDP
planning; (iii) community supervision; (iv) application of “force account” method; (v) mobilizing community
contributions in labor and local materials; (vi) O&M regulations developed by benefiting groups at village level.
71. Impact on food security. Rated as moderately satisfactory. Generally, the contribution of the project to
improving food security has improved in the last few years, however not significantly.The RIMS baseline survey in
2009 found that 21% of the sample experienced a period of hunger. The 2011 RIMS survey shows that 20.1% of
the sample experienced a period of hunger over the last 12 months. The final RIMS survey in 2014 found that the
sample experiensing hunger period reduced to 18.5%. The figure in 2014 is significant when comparing with nonproject communes where the proportion was 26.6%.
72. Impact on incomes. Rated as satisfactory. The impact of the project on incomes of people is positively
significant. 81.6% of households participating in CIGs shared that the project had positive impacts on their income
from plantation such as peanut, soybean, sugarcane and tobacco. About 60% of total households participating in
livestock CIGs confirmed an increase in their income. The increase of income of the CIG members was due to (i)
easier approach to production tools (75.6% members confirm), (ii) increased access to extension service (76%), (iii)
improvement of financial service (43%), and (iv) better access to market (53.8%). In terms of rural finance, the
17
project survey shows that 14.6% of households said that they accessed to IFAD loan, of which 81.7% said that they
borrow from VBARD, 14.5% from WU, 6.9% from CIGs. 74.1% of households borrowing fund evaluated the lending
as effective.
73. Policy impact. Rated as moderately satisfactory. Project had a positive policy impact at the decentralized
level (districts and communes), in terms of: (i) institutionalization of local VC planning and key provincial VC
strategies; (ii) structures for MOSEDP and CIF implementation; and (iii) 6 new policies enabling improved grass
root agricultural services. However, the project was not able to significantly improve the policy environment for
agricultural enterprises and investments.
74. Impact on quality of natural asset improvement and climate resilience. Rated as moderately
satisfactory. The project has not developed any indicator to measure the impacts of the project activities on quality
of natural assess or environment. The SM witnessed that the support of the project to construction of agricultural
product drying kilns (e.g. maize, rice, tobacco) for CIGs is leading to a slight increase of firewood using. However,
the SM also observed some positive impacts on environment including (i) introduction and replication of new
climate resilience crop varieties such as peanut, soybean; and (ii) plantation of folder (VA06) that can prevent soilerosion.
H.
Conclusion
75. Despite an overambitious design compared to institutional capacity in the province, the implementation
performance of the DBRP in Cao Bang is rated satisfactory both for the progress during last project year and
overall for the project achievement. The project achieved significant results in poverty reduction and most of the
project interventions have been reached satisfactorily as per project design. In particular, the local level rural
development practices show significant improvement in areas of: (i) participatory and decentralized MO-SEDP and
subsequent infrastructure development; (ii) local level value chain coordination including focussed agricultural
services and private sector engagement; (iii) farmers' association for productivity improvement and market access;
and (iv) rural lending to poor households and emerging microfinance services.
76. To ensure successful closure of the project, and to sustain the fast pace rural development process in Cao
Bang, the project and its partners are recommended to pay attention to the following: (i) An adequate policy
framework and effective institutions to facilitate private sector investment in agriculture are yet to be established at
the provincial level; (ii) The province has allocated funding for decentralized MO-SEDP planning, subsequently, it
is recommended that PPC
issues guidelines submerging resources from other sources for continued
implementation of the developed plans at the communal levels; (iii) Establishment of the Women's Union Social
Fund is pending and any additional and final funding from the project will depend on the mobilisation of sufficient
and qualified capacity building for the Fund; and (iv) Locally implemented infrastructure projects require a
strengthened O&M strategy and allocation of adequate resources to this effect.
77. Considering province's witnessed commitment to the final stage of the project and its exit strategy, the
mission is confident that DBRP Cao Bang will close successfully and that its key interventions are sustained in the
province, district and commune level structures.
18
Appendix 1: Summary of project status and ratings
Project 1422 [741] Developing Business with the Rural Poor Programme
Country
Viet Nam
Project ID
Project
Developing Business with the Rural Poor Programme
Date of Update
16-May-2013
Supervising Inst.
IFAD
1422
Loan/DSF
741
Grant No.
Supp.
Loan/DSF
Grant
Financing
terms
No. of
Supervisions
6
No. of Implementation
Support/Follow-up missions
Last Supervision
April
2014
Last Implementation
Support/Follow-up mission
HC
11
USD million
Approval
13-Dec-2007
Agreement
16-Jan-2008
Effectiveness lag
Total costs
Effectiveness
06-May-2008
PAR value
MTR
03-Jun-2011
25.814
IFAD Total
Disb. Rate
%
90
92.3
IFAD loan
17.218
92.51
IFAD grant
0.549
86.83
Current completion 30-Jun-2014
Last Amendment
Lux Dev grant
3.489
98
Current closing
31-Dec-2014
Last Audit
Domestic Total
No. of extensions
0
Beneficiaries
88.3
1.05
94.3
Government
(National)
2.533
81.3
Domes. Fin.
Inst.
1.000
100
Project Performance Ratings
B.1 Fiduciary Aspects
Last Current B.2 Project implementation progress
Last Current
1. Quality of financial management
4
4
1. Quality of project management
5
5
2. Acceptable disbursement rate
4
4
2. Performance of M&E
5
5
3. Counterpart funds
5
3
3. Coherence between AWPB & implementation
5
5
4. Compliance with loan covenants
5
5
4. Gender focus
5
5
5. Compliance with procurement
5
3
5. Poverty focus
4
4
6. Quality and timeliness of audits
5
4
6. Effectiveness of targeting approach
4
4
7. Climate and environment focus
-
4
8. Innovation and learning
4
5
B.3 Outputs and outcomes
Last Current
B.4 Sustainability
Last Current
1. Improving the Business Environment
4
3
1. Institution building (organizations, etc.)
5
5
2. Rural Business Development Services
5
5
2. Empowerment
5
5
3. Amplification of Market Access for the Poor
4
5
3. Quality of beneficiary participation
5
5
4. Responsiveness of service providers
5
5
5. Exit strategy (readiness and quality)
5
5
6. Potential for scaling up and replication
5
5
19
B.5 Justification of ratings
In view of overambitious design compared to institutional capacity in the province, leading to slow project start up, the
implementation performance or likelihood of achieving development objectives of the DBRP in Cao Bang is rated satisfactory.
Rating of project implementation progress and sustainability aspects remain a strong satisfactory. Some issues emerged in fiduciary
aspects, requiring strengthening during the closing period. Regarding outputs and outcomes, the policy environment component
had limited impact however provided good learning for the province. The two other components focusing at implementation at the
local levels were strong.
Overall Assessment and Risk Profile
Last
Current
C.1
Physical/financial assets
4
4
C.2
Food security
4
4
C.3
Impact on quality of natural asset improvement and climate resilience
-
4
C.4
Overall implementation progress (Sections B1 and B2)
5
4
Rationale for implementation progress rating:
As of 31/3/2014, the accumulated disbursement value was estimated at USD 23.82 million, out of USD 25.814 million, accounting
for 92.2% of the total project budget. Quality of management, monitoring and reporting remain a strong satisfactory, thanks to high
quality TA provided by the LuxDev support project, however some guidance was required in fiduciary areas. Learning and
innovation areas of the project had improved significantly during the last year, enabling upscaling of the project good practices.
Province leaders are very committed.
C.5
Likelihood of achieving the development objectives (section B3 and B4)
5
5
Rationale for development objectives rating:
Both food security and poverty alleviation targets of the project are reached. New varieties lead to higher yields strengthening food
security and enabling cash crop cultivation. Srengthened productivity together with VC coordination resulted in income increases.
The average poverty reduction rate in 10 project districts is 5.7% in 2011, 4.8% in 2012 and 4.3% in 2013. Implementation
successes include satisfactory results in: (i) market-oriented participatory SEDP; (ii) decentralized VC planning; (iii) CIGs
development including contract farming; (iv) value chain oriented agricultural services; (v) participatory infrastructure development.
Sustainability of the activities is considered high, thanks to established local structures and successful market integration of farmers'
interest groups.
C.5
Risks Short description of major risks for each section and their impact on achievement of development objectives and
sustainability
Section
Major risks
.
(i)
(ii)
Components
(iii)
(iv)
(v)
(vi)
Financial
management
Sub-component 1.1: The policy work towards improved agribusiness environment is still to
be strengthened. Policy workshops require more concretia to create useful output. Operation
ofInvestment Promotion Agency is still inefficient.
Sub-component 1.2: Good practices and lessons from enterprise collaboration need to be
documented for replication and transparency.
Sub-component 2.1: DARD is still lacking capacities and tools for private sector
engagement, to support the well started market development process at the local level.
Sub-component 2.3: The Womens Union Social Fund establishment is still
Sub-component 3.2:. The DPI has yet to consolidate the MOSEDP database
Sub-component 3.3: O&M of the CIF infrastructure requires strengthening
- Recruitment of Technical Assistance requires strengthened quality assurance
- Level of government counterpart funding disbursement stands at 81%
Proposed Follow-up
Issue / Problem
Recommended Actions
Timing
Business enabling
environment
The DARD should continue to develop value chain and market promotion at province level. June 2014
The Investment Promotion Centre under DPI should work as service provider rather than onwards
an administrative institution. Tools and resources for investment and enterprise support
require strengthening.
Establishment of Social
Fund at WU
PPC to issue Decision on establishment of the Fund; DBRP to recruit qualified national TA April 2014
to build WU capacity for management of the Fund; Subject to IFAD's no-objection to Social onwards
Fund Charter and Operational Manual, allocate funds for capitalization of the Fund.
Institutionalization of
PPC/DPI continue to roll out MO-SEDP in all communes and ensure resources available May 2014
20
Status
MOP-SEDP
from P135, NTP-NRD and P30A for implementation of the MO-SEDP; Community O&M onwards
boards continue to maintain the project-supported schemes with necessary financial
supports by CPCs and DPCs
Knowledge management
and project completion
Document good practices and organize workshops to disseminate innovations by DBRP. April 2014
In particular, prepare the project completion report and organize project completion onwards
workshop.
21
Appendix 2: Updated logical framework
Narrative Summary
To achieve sustainable
and equitable poverty
reduction and improve
livelihoods of the rural
poor
Rural poor empowered to
benefit from
participation in improved
market in Cao Bang
Province
Assumptions (A) / Risks
(R)
Key Performance Indicators
Means of Verification
Number
of
households
with
improvements in household assets
ownership index*
Baseline,
mid-term
and
completion assessment (RIMS)
Reduction in prevalence of child
malnutrition, by gender (h/a, w/a,
w/h) *
Baseline,
mid-term
and
Change in position of Cao Bang in the
National Human Development Index
National Human Development
Indicator Statistics
Reduction in the prevalence of people
below the poverty line in targeted areas
DOLISA statistics.
Increase in average annual income per
capita in the province
DOLISA statistics.
Number of rural poor households
experiencing improved food security
Baseline,
mid-term
and
Decrease in the rate of unemployment in
the province
DOLISA
employment
Share of production sold, by
commodity, for rural poor households
Annual Survey of samples of
beneficiaries (rural producers,
MSMEs
Quantity of product sold, by
commodity, for rural poor households
Market Information System
22
statistics
on
- Demand and purchasing
capacity of markets can
obsorb increased offer of
agro-industry commodities
- Continued political
commitment to
decentratlization of the
development process and
poverty reduction
Component 1: Improving
Business and Investment
Environment
SC 1.1: Raising
Provincial
Competitiveness
1.1.1: Pro-poor policies to
be studied, approved and
implemented
1.1.2 Improvement
strategy to be approved and
undertaken
1.1.3 Governance capacity
and public services of
provincial agencies
improved
Farm gate prices for strategic
commodities
Market Information System
At least 100 of new joint
ventures/cooperatives/private business
households/ MSMEs registered starting
2010 (regarding agricultural
production,at least 5 new
enterprises/cooperatives registered)
DPI
Provincial gross outputs in up to 5 rural
agricultural commodities increased
compared to the previous year, starting
2010
Statistics Berau
Percentage of private sector investment
in maximum 5 strategic rural
agricultural commodities increased
compared to the previous year, starting
2011
Annual survey (PPMU)
Cao Bang PCI increased at least 5 ranks
in 2013 against 2009.
VCCI
Up to 8 pro-poor policies studied in
Cao Bang till 2012
Reports from consultants
At least 3 pro-poor policies approved
and implemented in Cao Bang till 2013
Provincial People committee
PCI improvement strategy approved by
PC in 2011
UBND tỉnh/ Provincial People
committee
At least one annual workshop on PCI
improvement chaired by PC starting in
2010
Up to 5 departments/agencies in the
province awarded with ISO 9001:2000
till 2013
Provincial People committee
Sub-Agency of Registration of
Cao Bang/consulting
companies
Enterprises supported in
business registration
procedure
At least 70.enterprises per year are
supported in business registration
procedure, starting in 2012.
PPC
SC 1.2: Improving
efficiency and impact of
equitisized enterprises
At least 1 equitized enterprise has
private share in state-owned companies
increased, compared to the previous
year, starting in 2010
Equitised enterprises' reports
Up to 2013, maximum 100 supply
contracts signed between the enterprises
and farmers, CIGs
23
Line agencies are ready to
cooperate to promote an
equitable business
environment
1.2.1 Ownership structure,
competitiveness, marketing
and technology of projectrelated enterprises
researched and applied.
Up to 3 researches on 3 enterprises in
Cao Bang province implemented and
applied till 2013.
Component 2: Rural
Business Development
Services: Productivity &
competitiveness of poor
farmers, MSMEs, and
other rural producers/
processors group at
various stages of value
chains increased
Land productivity (kg/ha) of maximum
5 rural agriculture commodities
increased compared to previous year,
starting 2010
Annual survey
No. of farmers reporting they are
engaged in processing activities
increased compared to previous year,
starting 2010
Annual survey
No. of farmers/rural producers
reporting their productivity has
improved compared to previous year,
starting 2010
Annual survey
Up to 1000 full time job opportunities
created by supported agro-processing
MSMEs till 2013
DOLISA
Up to 60% of 500 people trained have a
stable employment 6 months after
training until 2013
DOLISA
Up to 3 products certificated with
national standard till 2013
Department of Sciences &
Technology
Up to 20 enterprises have enaged in new
contracts with farmers and CIGs till
2013.
At least two value chains decided by the
PPC to be implemented starting 2010.
Reports from enterprises
Up to 2012, at least 100 staff of new
and existing enterprises in Cao Bang
province trained in business
management and development (at least
30% females)
Reports from training units
Sub Component 2.1:
Value Chain Development
Services
2.1.1 Value chain analysed
and key opportunities for
value added identified
2.1.2 New and existing
Enterprises trained on
business management and
development of projectrelated value chains
24
Equitised enterprises' reports
PPMU-DPI reports; consulting
firms;
Consultant's reports
- Climate & environmental
condition changes do not
offset increases in
productivity
- Rural producers reactive
to the possibility of
improving the quality of
their production and of their
business
- Rural producers reactive
to the possibility of
certifying the quality of
their production
- Enterprises and
institutions have the
technical capacity to
provide services
2.1.3 BDS provided to
MSMEs and family
enterprises
Up to 200 family enterprises and
MSMEs in the province accessing
BDS until 2013
Annual survey
2.1.4 Market information
system established and
operated
50 communes and 500 CIGs provided
with monthly newsletter, starting
August 2010
At least 150 CIGs in the province
provided with basic communication
tools in 2012
At least one job fair per year held in Cao
Bang starting 2010
DOTC and PPMU
2.1.6 Short-term training
based on labor market
demand effectively
implemented
Up to 2013, At least 350 farmers
trained, of whom at least 200 poor
farmers have stable jobs after the
trainings (at least 30% female)
Annual survey
2.1.7 National food safe
standard implemented in
the province
Up to 5 agro processing enterprises
implemented national food safety
standards until 2013
Department of Sciences &
Technology; Division of Food
Safety & Hygiene - DoH
2.2 Farm Productivity
Improvement Services
Post-harvesting production loss
decreased annually compared to the
previous year starting 2010, by selected
commodities related to value chains
Annual survey
Up to 2500 farmers/rural producers
that have adopted improved
technologies/processes promoted by
extension and technical support
services till 2013
Annual survey
Up to 2014, awareness of the rural
poor towards environment protection,
including climate change related
topics, raised
Annual survey
Up to 90% of target groups know the
availability and quality of extension and
technical support services till 2013
PME
Up to 450 extension staff received
refresher trainings (at least 50%
females) till 2013
DARD
2.1.5 Labour market
information system
supported and promoted
2.2.1 Extension staff
received refresher training
25
DOTC and PPMU
PPMU; DOLISA
2.2.2 Rural extension
services expanded to
private sector
At least 50 private agents/agencies in
the province offered rural extension
services up to 2013
DARD
2.2.3 Demonstrations
conducted and farmers
trained
Up to 500 demonstrations conducted
until 2013
Reports from DARD, PPMU,
and training units
Up to 25000 farmers trained, (at least
30% female) up to 2013
and training units
Number of farmers have been trained
on relevent climate change topic per
year increased, starting from 2013
and training units
2.2.4 Research and
extension projects
requested by the CIGS
implemented
Up to 10 research and extension projects
requested by the CIGs implemented
until 2013
Reports from PPMU and
training units
SC 2.3: Rural Finance
% of loans disbursed increased
compared to previous year, starting
2010
VBARD
VBARD provide proper
information for PPMU in a
timely manner.
No. of processing units provided with
loans increased compared to previous
year, starting 2010
VBARD
VBARD is willing to work
with PPMU
Annual increase of VBARD portfolio in
targeted communes compared to
previous year, starting 2010
VBARD
2.3.1 Project target groups
have access to rural
financial products
At least 1000 households, CIGs and
MSMEs in the province have access to
long-, medium-, short-term loans until
2013 (by gender)
PPMU, VBARD
2.3.2 VBARD staff trained
in pro-poor financial IFAD
procedures and practices
Up to 100 VBARD staff in the
province trained in IFAD pro-poor
financial procedures and practices till
2013
training units
2.3.3 CIGs and mass
organizations' members
trained in rural financial
management and use
At least 10 000 members of CIGS and
mass organizations trained on usage and
management of credit for production
until 2013
training units
26
Drought and floods may
happen and last for long
time, which may buried
production areas
Total production outputs in targeted
communes increased compared to
previous year, starting 2010
DPMO
Target group formed with
the ownership of market
development process
Total marketed production outputs in
targeted communes increased compared
to previous year, starting 2010
Annual survey
Villages agree to own all
programmes in the
communes
MSMEs increased compared to previous
year, starting 2010
DPMO
SC 3.1: Enhancing
Common Interest Groups
- Objective:
CIGs formulated in the
project areas on the base
of voluntary and
collective interests of the
members
3.1.1 New CIGs formed
with high participation of
poor households
No. of CIGs functioning increased
compared to previous year, starting
2010
At least 30% of CIGs formulated having
stable sale contracts until 2013
Khảo sát hàng năm/ Annual
survey
Up to 500 CIGs in 10 project districts
in Cao Bang formulated. At least
70% of poor households participated,
by types of business and production
until 2012
CDB
3.1.2 CIG members trained
on group management,
value chains approaches,
savings/credits
At least 10 000 members trained on CIG
management, value chain approaches,
marketing and savings/credits (at least
40% females) until 2013
CDB
3.1.3 Networking and
contract farming promoted
among CIGs, buyers, and
sellers of inputs
At least 60 workshops for CIGs in 10
project districts until 2013
Reports from PPMU, DPMO
and CDB
Sc 3.2: Participatory
Planning and Investment
Prioritisation Objective:Village level
participatory planning
process enhaced and
successful in identifying
highest priorities for
investment and business
linkages
At least 90% of households participated
in village level planning until 2013 (at
least 40% female)
CDB
3.2.1 Staff at all levels
trained on participatory
SEDP
Up to 500 staff at all levels trained on
SEDP (at least 30% females) till 2013
PPMU, DPMO, CDB
Component 3:
Amplification of Market
Access for the Rural
Poor: Rural poor
empowered to fully
participate in markets
and profit from market
opportunities
27
Annual survey
Project financial capacity
3.2.2 CIG members trained
in SEDP
Up to 1000 key members (at least
30% female) trained on SEDP until
2013
CDB, CIG
3.2.3 Commune SEDP
established in a
participatory planning
exercise and approved
accordingly
50 commune SEDPs established in a
participatory planning exercise and
approved each year, starting 2010
DPMO, CDB
50 commune proposals for new rural
development programme supported and
approved by 2013.
DPMO, CDB, CTNTM/
DPMO, CDB, NRDP office
Up to 1.200 staff in all levels,
households in villages trained on new
rural development programme (at least
30% female) by 2013.
DPMO, CDB, CTNTM/
DPMO, CDB, NRDP office
At least 75% of village households
participating in village level planning
each year (at least 30% female).
DPMO, CDB
50/50 Commune Supervision Boards of
CIF effectively work until 2013
DPMO, CDB
SC 3.3: Commune
Investments - Objective:
Village and commune
level infrastruture
effectively utilised
No. households benefited from small
infrastructure works increase annually
No. CIGs have access to CIF works for
market linkage increase
An increase in No. hectare of
agricultural land irrigated annually
3.3.1 Procedure of CIF
decentralisation and
management established
Procedure of CIF decentralisation and
management established and
implemented in 2009
PPMU, CBD
3.3.2 Staff at all levels
trained on CIF management
At least 200 staff at all levels (at least
30% females) trained annually on CIF,
starting 2010
PPMU, DPMO, CDB
3.3.3 Commune investment
priorities included in SEDP
implemented
145 Km of road built
CDB
30 Number of irrigation schemes
built.
2 water supplies built
5 electricity schemes built
At least 50 O&M groups established.
2 rural markets built
Component 4: Project
Management. Project
management
implemented effectively at
all levels
AWPB approved as requested
PPMU
Progress report & financial report
submitted as requested
PPMU
RIMS report submitted as requested
PPMU
28
Whether there are enough
staff in PPMU, DPMOs,
and CDBs
Capacity of at least 50% staff improved
after trainings til 2013
Reports of trainers
4.1 Project management
structures at 3 levels
established and equipped;
Offices at 3 levels equiped
PPMU
Inventory list estbalished and annually
updated
PPMU
4.2 Project staff at 3 levels
recruited and trained
At least 30% project staff at different
levels trained by subject (at least 30%
females) starting 2010
PPMU
Job description developed and
introduced for at least 50% of key
personnel regarding PPMU by 2010
PPMU
PSC meetings held twice per year
PPMU
PPMU meetings held twice per month
PPMU
Meeting between PPMU and DPMO
held once per quarter
PPMU
Meeting between CDB and DPMO held
once per quarter
DPMO
In 2008, PIM & FMM enacted and
implemented
PPMU
In 2009, M&E and KM systems
established & implemented
PPMU
M&E reports submitted annually as
regulated
At least 50% audit recommendations
carried out annually
PPMU
4.3 Communication
activities among 3 levels
regularly maintained
4.4 PIM, M&E, KM, FMM
established and
implemented
4.5 Compliance Audit
undertaken
29
PPMU
Appendix 3: Physical progress measured against AWP&B, including RIMS indicators
Achievement from 01 January
to 31 Demcember 2013
Output
Indicator
Unit
Logframe
target
%
Cumulative
AWP&B
Achievement
%
Achievement
2013
HP1/ Component 1: To improve business investment environment
Sub-component 1.1: To increase provincial competition capacity
Up to 8 pro-poor policies studied in Cao Bang till 2012
Number
9
8
113
At least 3 pro-poor policies approved and implemented in Cao Bang
till 2013
Number
6
3
200
PCI improvement strategy approved by PC in 2011
Number
1
1
100
At least one annual workshop on PCI improvement chaired by PC
starting in 2010
Number
7
4
175
1.1.3 Governance capacity and
public services of provincial
agencies improved
Up to 5 departments/agencies in the province awarded with ISO
9001:2000 till 2013
Number
5
5
100
1.1.4 Enterprises supported in
business registration procedure
At least 70.enterprises per year are supported in business
registration procedure, starting in 2012.
Number
422
70
603
5
3
167
3
2
150
1.1.1 . Pro-poor policies to be
studied, approved and
implemented
1.1.2 PCI improvement strategy
to be approved and undertaken
2
TBM
2
92
100
n.a
Sub-component 1.2: Improving Efficiency and Impact of Equitized Enterprises
1.2.1 Ownership structure,
competitiveness, marketing and
technology of project-related
enterprises researched a
Up to 3 researches on 3 enterprises in Cao Bang province
implemented and applied till 2013.
Number
Component 2: Rural Business Development Services
Sub-component 2.1: Value chain development services
2.1.1 Value chain analysed and
At least two value chains decided by the PPC to be implemented
key opportunities for value added
starting 2010.
identified
31
Number
3
3
100
2.1.2 New and existing
Enterprises trained on business
management and development of
project-related value chains
Up to 2012, at least 100 staff of new and existing enterprises in Cao
Bang province trained in
2.1.3 BDS provided to MSMEs
and family enterprises
2.1.4 Market information system
established and operated
2.1.5 Labour market information
system supported and promoted
2.1.6 Short-term training based
on labor market demand
effectively implemented
2.1.7 National food safe standard
implemented in the province
Number
60
140
233
245
100
245
Number
women
20
58
290
112
30
373
Up to 200 family enterprises and MSMEs in the province accessing
BDS until 2013
Number
120
150
125
325
200
163
50 communes and 500 CIGs provided with monthly newsletter,
starting August 2010
Number
12
12
100
40
40
100
At least 150 CIGs in the province provided with basic communication
tools in 2012
Number
200
150
133
At least one job fair per year held in Cao Bang starting 2010
Number
3
4
75
Number
total
Up to 2013, At least 350 farmers trained, of whom at least 200 poor
farmers have stable jobs after the trainings (at least 30% female)
Up to 5 agro processing enterprises implemented national food
safety standards until 2013
100
120
120
319
350
91
Poor
TBM
103
n.a
217
200
109
Number
women
TBM
116
n.a
253
105
241
Number
3
1
33
5
5
100
Sub-component 2.2 Farm Productivity Improvement Services
Number
total
110
120
109
479
450
106
Number
women
TBM
50
n.a
205
225
91
At least 50 private agents/agencies in the province offered rural
extension services up to 2013
Number
15
15
100
68
50
136
Up to 500 demonstrations conducted until 2013
Number
90
108
120
476
500
95
Number
total
10,000
9,882
99
39,442
25,000
158
Number
women
TBM
4,407
n.a
16,881
7,500
225
Number
total
TBM
9,882
n.a
9,882
nt
n.a
2.2.1 Extension staff received
refresher training
Up to 450 extension staff received refresher trainings (at least 50%
females) till 2013
2.2.2 Rural extension services
expanded to private sector
2.2.3 Demonstrations conducted
and farmers trained
Up to 25000 farmers trained, (at least 30% female) up to 2013
Number of farmers have been trained on relevent climate change
topic per year increased, starting from 2013
32
2.2.4 Research and extension
projects requested by the CIGS
implemented
Up to 10 research and extension projects requested by the CIGs
implemented until 2013
Sub-component 2.3 Rural Finance
2.3.1 Project target groups have
At least 1000 households, CIGs and MSMEs in the province have
access to rural financial products
access to long-, medium-, short-term loans until 2013 (by gender)
Number
women
TBM
Number
9
Number
4,407
n.a
4,407
nt
n.a
6
67
9
10
90
TBM
381
n.a
3,238
1,000
324
29
97
91
100
91
2.3.2 VBARD staff trained in propoor financial IFAD procedures
and practices
Up to 100 VBARD staff in the province trained in IFAD pro-poor
financial procedures and practices till 2013
Number
30
2.3.3 CIGs and mass
organizations' members trained
in rural financial management
and use
At least 10 000 members of CIGS and mass organizations trained on
usage and management o
Number
TBM
5,254
n.a
13,812
10,000
138
Number
TBM
24
n.a
475
500
95
Number
total
TBM
5,770
n.a
13,812
10,000
138
Number
women
TBM
2,581
n.a
6,286
4,000
157
Number
TBM
20
n.a
51
60
85
Number
total
400
807
202
1,391
500
278
No. of
women
TBM
334
n.a
569
150
379
Number
total
1,500
1,336
89
3,010
1,000
301
Number
women
500
527
105
1,002
300
334
HP3: Amplification of Market Access for the Rural Poor
Sub-component 3.1: Enhancing Common Interest Groups - Objective:
CIGs formulated in the project ar
3.1.1 New CIGs formed with high
participation of poor households
3.1.2 CIG members trained on
group management, value chains
approaches, savings/credits
3.1.3 Networking and contract
farming promoted among CIGs,
buyers, and sellers of inputs
Up to 500 CIGs in 10 project districts in Cao Bang formulated. At
least 70% of poor households partic
At least 10 000 members trained on CIG management, value chain
approaches, marketing and savings/credits (at least 40% females)
until 2013
At least 60 workshops for CIGs in 10 project districts until 2013
Sub-component 3.2: Participatory Planning and Investment Prioritization
3.2.1 Staff at all levels trained on
participatory SEDP
Up to 500 staff at all levels trained on SEDP (at least 30% females)
till 2013
3.2.2 CIG members trained in
SEDP
Up to 1000 key members (at least 30% female) trained on SEDP
until 2013
33
3.2.3 Commune SEDP
established in a participatory
planning exercise and approved
accordingly
50 commune SEDPs established in a participatory planning exercise
and approved each year, starting 2010
Number
50
50
100
200
200
100
50 commune proposals for new rural development programme supported
and approved by 2013.
Number
50
40
80
50
50
100
Number
total
TBM
647
n.a
1,312
1,200
109
Number
women
TBM
176
n.a
365
360
101
%
TBM
56
n.a
56
75
75
1
1
100
Up to 1.200 staff in all levels, households in villages trained on new rural
development programme (at least 30% female) by 2013.
At least 75% of village households participating in village level planning
each year (at least 30% female).
Sub-component 3.3: Commune Investments
3.3.1 Procedure of CIF
decentralisation and
management established
Procedure of CIF decentralisation and management established and
implemented in 2009
3.3.2 Staff at all levels trained on
CIF management
At least 200 staff at all levels (at least 30% females) trained annually
on CIF, starting 2010
Number
total
500
440
88
1,566
200
783
Number
women
TBM
140
n.a
522
60
870
Km
TBM
27
n.a
134
145
92
30 Number of irrigation schemes built.
Number
TBM
25
n.a
55
30
183
2 water supplies built
Number
TBM
3
n.a
5
2
250
5 electricity schemes built
Number
TBM
1
n.a
6
5
120
two rural markets built
Number
TBM
5
n.a
6
2
300
at least 50 O&M groups established.
Number
50
50
100
n.a
61
61
100
1
100
5
5
100
145 Km of road built
3.3.3 Commune investment
priorities included in SEDP
implemented
Component 4: Project management system implemented effectively at different levels
Offices at 3 levels equiped
4.1 Project management
structures at 3 levels established
Inventory list estbalished and annually updated
and equipped;
4.2 Project staff at 3 levels
recruited and trained
Number
At least 30% project staff at different levels trained by subject (at
least 30% females) starting 2010
Job description developed and introduced for at least 50% of key
personnel regarding PPMU by 2010
34
Number
TBM
Number
1
Number
145
290
200
720
NT
n.a
Number
women
TBM
124
n.a
293
NT
n.a
100
50
200
%
PSC meetings held twice per year
4.3 Communication activities
among 3 levels regularly
maintained
4.4 PIM, M&E, KM, FMM
established and implemented
4.5 Compliance Audit undertaken
Number
2
2
100
12
12
100
Number
20
20
100
136
144
94
Meeting between PPMU and DPMO held once per quarter
Number
4
3
75
20
24
83
Meeting between CDB and DPMO held once per quarter
Number
40
34
85
200
220
91
In 2008, PIM & FMM enacted and implemented
Number
2
2
100
In 2009, M&E and KM systems established & implemented
Number
2
2
100
M&E reports submitted annually as regulated
Number
PPMU meetings held twice per month
At least 50% audit recommendations carried out annually
%
35
1
1
100
6
6
100
TBM
70
n.a
70
NT
n.a
Appendix 4: Financial: Actual financial performance by financier; by component and disbursements by
category
Table 5A:
Financial performance by financier (USD'000) as of 31/03/2014
Financier
IFAD loan
IFAD grant
Lux Development
Government of Vietnam
VBARD
Beneficiaries
Total
Approval
(USD'000)
Disbursements
(USD ‘000)
Per cent disbursed
(%)
17,218
549
3,489
2,533
1,000
1,025
25,814
15,928.97
476.68
2,796.37
2,059.51
1,000.00
990.07
23,251.60
92.51
86.83
80.15
81.31
100.0
96.6
90.07
Note: Disbursement of VBARD is propotionally 20% and 80% of VBARD and IFAD Loan respectively.
Table 5B:
Financial performance by financier by component (USD ‘000) - as of 31/3/2014
IFAD loan
Approva
Component
l
Actual
Lux DEV
Approv
al
Actual
%
VBARD
Appro
val Actual
%
I
133
186
140
861
482
56
II
5,163
2,726
53
376
279
74
III
8,908
10,213
115
659
417
2,295
2,804
719
17,218 15,929
122
1,594
93
3,489
IV
Unallocated
Total
%
Government
Approva
l
Actual
Beneficiares
Approv
al
Actual
%
%
Approva
l
Total
Actual
%
34
2.30
7
1,028
670
65
205
31
15
6,744
4,035
60
63
1,131
581
51
11,723
12,202
104
1,619
102
1,163
1,445
124
5,052
5,868
116
2,796
80
2,533
2,060
81
24,546
22,775
93
1,000
1,000
1,000 1,000
100
100
37
1,025
1,025
990
990
97
97
Table 5C: IFAD loan disbursements (SDR, as at 31/3/2014)
Category
Category description
Original
Allocation
W/A pending
Revised
Disbursement (WA No.40 &
Allocation
41)
Balance
Per cent
disbursed
(%)
I
Commune Investment Funds
5,217,000
5,790,000
4,661,876.34
252,217.20
875,906.46
84.87
II
Credit and Loan Assurance
2,650,000
1,593,000
1,199,071
0.00
393,929.44
75.27
III
Civil works
121,000
98,000
97,608.58
0.00
391.42
99.60
IV
Contract services
216,000
561,000
557,120.99
22,430.96
(18,551.95)
103.31
V
1,130,000
1,437,000
1,438,955.52
0.00
(1,955.52)
100.14
VI
Technical assistance, traning and
studies
Vehicles, equipment and goods
280,000
352,000
320,429.41
0.00
31,570.59
91.03
VII
Business forum and fairs
292,000
91,000
26,187.78
2,483.71
62,328.51
31.51
VIII
Salaries
412,000
516,000
315,067.82
30,341.61
170,590.57
66.94
XI
Operation and maintenace
198,000
251,000
251,411.64
24,269.05
(24,680.70)
109.83
X
Contigency
454,000
281,000
949,462.55
0.00
(668,462.55)
337.89
10,970,000 10,970,000
9,817,191.19
331,742.53
821,066.28
92.52
Total
38
Appendix 5: Compliance with legal covenants: Status of implementation
Section
2.02
2.03.
2.04.
Covenant
The Fund shall open a Loan Account and a Grant Account in the name of the Borrower and credit the
principal amount of the Loan and the Grant, respectively, thereto. The Borrower may request withdrawals
from the Loan Account and Grant Account from time to time between the Effective Date and the Loan
Closing Date in various currencies in respect of Eligible Expenditures and otherwise in accordance with
Schedule 2 (Allocation and Withdrawal of Loan and Grant Proceeds) hereof, and Article IV (Loan Account
and Withdrawals) and Section 6.02 (Currencies for Withdrawals) of the General Conditions.
Special Accounts. (a) The Borrower, through MOF, shall open and thereafter maintain in the VBARD, or
another bank approved by the Fund, the following three Special Accounts, each denominated in USD, for
the purpose of financing the Programme under the respective Project:
(i) the BT Special Account, for the purposes of financing the BT Project (the “BT Special Account”), with the
exception of the activities falling under the Rural Finance Sub-component (Schedule 1, paragraph 5.2.1(c));
and (ii) the CB Special Account, for the purposes of financing the CB Project (the “CB Special Account”),
with the exception of the activities falling under the Rural Finance Sub-component (Schedule 1, paragraph
5.2.1(c)); and (iii) the VBARD Special Account, for the purposes of financing the activities of the Rural
Finance Sub-component (Schedule 1, paragraph 5.2.1(c)) in both Programme Provinces (the “VBARD
Special Account”, and when referred to collectively with the BT and CB Special Accounts, the “Special
Accounts”). The Special Accounts shall be protected against setoff, seizure or attachment on terms and
conditions proposed by the Borrower and accepted by the Fund. (b) After the Special Accounts have been
duly opened, upon the Borrower’s request, the Fund shall make one or more withdrawals from the Loan
Account on behalf of the Borrower of up to: (i) USD 1 250 000 in the aggregate, with respect to the BT
Special Account (the “BT Authorised Allocation”); (ii) USD 1 250 000 in the aggregate, with respect to the
CB Special Account (the “CB Authorised Allocation”); and (iii) USD 1 000 000 in the aggregate with respect
to the VBARD Special Account (the “VBARD Authorised Allocation”) (the BT Authorised Allocation, the CB
Authorised Allocation, and the VBARD Authorised Allocation, when referred to collectively, shall be referred
to as the “Authorised Allocations”). The Borrower shall deposit the amount of the respective Authorised
Allocation in the respective Special Account. The Fund shall replenish the Special Accounts from time to
time upon request, in accordance with Section 4.08 of the General Conditions (Special Account), in such
minimum amounts as the Fund may specify by notice to the Borrower. (c) The Special Accounts shall be
operated by MOF in accordance with Section 4.08 of the General Conditions.
Grant Receiving Account. (a) The Borrower, through MOF, shall open and thereafter maintain in the
VBARD, or another bank proposed by the Borrower and accepted by the Fund, a Grant Receiving Account
denominated in USD for the purpose of receiving Grant proceeds to finance the Programme. The Grant
Receiving Account shall be protected against set-off, seizure or attachment on terms and conditions
proposed by the Borrower and accepted by the Fund.
(b) As from the Effective Date, the Borrower may request withdrawals from the Grant Receiving Account
39
Compliance
Status/Date
Complied
Complied
Complied
Remarks
Section
2.05.
2.06
2.07.
SECTION
3.01.
3.02.
Covenant
yearly in advance during the Programme Implementation Period. The amounts so requested shall not
exceed the amount of expenditures which are included in the respective AWPB for the Programme for the
relevant Programme Year to be financed from the Grant. Replenishment and use of Grant proceeds from
the Grant Bank Account shall be on the basis of the relevant AWPBs with respect to the activities to be
financed. The Borrower shall make payments out of or use the proceeds of the Grant Receiving Account
exclusively for Eligible Expenditures under the relevant Project.
(c) The Grant Receiving Account shall be operated by MOF.
Use of Proceeds. The Borrower shall ensure that the proceeds of the Loan and the Grant are used
exclusively to finance Eligible Expenditures in accordance with this Agreement and the General Conditions.
Without limiting the generality of the foregoing, it is agreed and understood that it is the policy of the Fund
that Loan and Grant proceeds not be used to pay Taxes, including (but not limited to) any Taxes levied on
the importation, procurement or supply of any goods, civil works or services financed by the Loan or the
Grant.
Service Charge. The Borrower shall pay to the Fund a service charge at the rate of 0.75% per annum on
the amount of the Loan outstanding from time to time, payable semi annually on each 1 June and 1
December in the Loan Service Payment Currency.
Repayments of Principal. The Borrower shall repay the outstanding principal amount of the Loan in 59 equal
semi-annual instalments of SDR 371 667, payable on each 1 June and 1 December, commencing on 1
June 2018 and ending on 1 June 2047, and one final payment of SDR 371 647 on 1 December 2047, in the
Loan Service Payment Currency.
Programme Implementation. The Borrower declares its commitment to the goals and purposes of the
Programme as stated in Schedule 1 and, in furtherance of such goals and purposes, the Borrower shall
ensure that the Lead Programme Agencies and each of the other Programme Parties shall carry out the
Programme: (a) with due diligence and efficiency; (b) in conformity with all appropriate administrative,
engineering, financial, economic, operational, environmental, agricultural development practices (including
rural development practices) and good governance; (c) in accordance with plans, design standards,
specifications, procurement and work schedules and construction method agreed by the Borrower and the
Cooperating Institution; (d) substantially in accordance with the AWPBs and Procurement Plans; (e)
substantially in accordance with the Programme Implementation Manual; (f) with respect to the Rural
Finance Sub-component (Schedule 1, paragraph 5.2.1(c)), substantially in accordance with the Credit ByLaws; (g) otherwise in accordance with this Agreement (in particular, Schedules 3 and 3A hereto), the
Programme Agreement and any other Loan Document; and (h) so as to ensure the sustainability of its
achievements over time.
Annual Work Plans and Budgets and Procurement Plans. (a) Each PPMU shall prepare a draft consolidated
annual work plan and budget (AWPB) for each Programme Year with respect to their respective Projects;
the MPI shall prepare a draft consolidated AWPB for each Programme Year with respect to the activities
falling under the Programme Quality Component (Schedule 1, paragraph 5.5), and the VBARD Provincial
Branch in each Programme Province shall prepare a draft consolidated AWPB for each Programme Year
with respect to the activities falling under the Rural Finance Sub-component (Schedule 1, paragraph
40
Compliance
Status/Date
Complied
Complied
Complied
Partially Complied
Remarks
Section
SECTION
3.03.
Covenant
5.2.1(c)) in the respective Programme Province (collectively, “AWPBs”; individually, the “AWPB-BT”, the
“AWPB-CB”, and “AWPBVBARD”). The draft AWPBs shall include, among other things, a detailed
description of planned Programme activities during the coming Programme Year, and the sources and uses
of funds thereof, based on the respective work plans and budgets prepared by each of the Programme
Parties. In addition to the AWPB for the first Programme Year, a Procurement Plan for all major
procurement of goods, works and consulting services covering the initial 18 months after the Effective Date,
and annually thereafter, shall be prepared by each PPMU together with other concerned Programme
Parties.
(b) The VBARD Provincial Branch in each Programme Province shall submit the respective AWPB-VBARD
to the PPMU for review and endorsement. Each PPMU shall submit the relevant draft AWPB and
Procurement Plan for their respective Project to the relevant PPSC for its review and endorsement. When
so endorsed, each PPSC shall submit the relevant draft AWPB and Procurement Plan to the Fund, for its
comments and acceptance, no later than 75 days before the beginning of the relevant Programme Year. If
the Fund does not comment on the draft AWPB and Procurement Plan within 30 days after receipt, the
respective AWPB and Procurement Plan shall be deemed approved. The Borrower shall ensure that each
AWPB and Procurement Plan, substantially in the form so approved, is formally endorsed by the respective
PPC in accordance with local practice. Each PPC shall provide copies of the respective endorsed AWPB
and Procurement Plan to the Fund, prior to the commencement of the relevant Programme Year.
(c) PPC shall adopt the respective AWPB and Procurement Plan substantially in the form approved by the
Fund.
(d) If required, each PPMU and VBARD Provincial Branch may propose adjustments in the respective
AWPB during the relevant Programme Year, which shall become effective upon approval by the respective
PPC and the Fund.
Project Accounts. The following accounts shall be opened under the Programme:
(a) the PPMU-BT shall open and thereafter maintain in the Provincial State Treasury, or another bank
proposed by the Borrower and accepted by the Fund, and operate, a current account denominated in VND
for Programme operations related to the BT Project, including receiving Loan proceeds from the Special
Account and making payments for BT Project operations in accordance with the AWPB- BT (the “BT Project
Account”), with the exception of the operations falling under the Rural Finance Sub-component (Schedule 1,
paragraph 5.2.1(c)).
(b) the PPMU-CB shall open and thereafter maintain in the Provincial State Treasury, or another bank
proposed by the Borrower and accepted by the Fund, and operate, a current account denominated in VND
for Programme operations related to the CB Project, including receiving Loan proceeds from the CB Special
Account and making payments for CB Project operations in accordance with the AWPB-CB (the “CB Project
Account”), with the exception of the operations falling under the Rural Finance Sub-component (Schedule 1,
paragraph 5.2.1(c)).
(c) VBARD shall open and thereafter maintain, and operate, a current account in its Headquarters and one
in each VBARD Provincial Branch, denominated in VND for Programme operations related to the Rural
Finance Sub-component (Schedule 1, paragraph 5.2.1(c)) (the “VBARD Headquarters Account”, the
41
Compliance
Status/Date
Complied
Remarks
Section
SECTION
3.04.
SECTION
3.05
3.06
4.01.
4.02.
Covenant
“VBARD Provincial Branch Account BT”, the “VBARD Provincial Branch Account CB” and, collectively the
“VBARD Accounts”).
(d) MPI shall open and thereafter maintain in the VBARD, or another Bank proposed by the Borrower and
accepted by the Fund, and operate, a current account denominated in USD for Programme operations
related to the activities under the Programme Quality Component (Schedule 1, paragraph 5.5) (the MPI
Grant Account”) to receive Grant proceeds from the Grant Receiving Account and make payments for
operations in accordance with the AWPB for activities under the Programme Quality Component.
(The accounts above shall be referred to collectively, as the context requires, as the “Project Accounts”).
Availability of Loan and Grant Proceeds. (a) Without prejudice to Section 3.04 (b) below, the Borrower shall
make the proceeds of the Loan and Grant available to the Lead Project Agencies and MPI in accordance
with the respective AWPBs and its customary national procedures for development assistance to carry out
the Programme.
(b) The Borrower shall make the proceeds of the Loan available to VBARD in accordance with the
respective AWPB, its customary national procedures for development assistance and the SLA, to carry out
the activities relating to the Rural Finance Sub-component (Schedule 1, paragraph 5.2.1(c)).
Availability of Additional Resources. (a) Without limiting the generality of Section 7.03 of the General
Conditions, the borrower shall ensure that in addition to the proceeds of the Financing, counterpart funds in
an aggregate amount of USD 5 100 000 or its equivalent shall be made available by the Lead Project
Agencies during the Programme Implementation Period for the purposes of carrying out the Programme.
Each Lead Project Agency shall make budgetary allocations in the respective Programme Province’s
budget for each Fiscal Year equal to the counterpart funds called for in the respective AWPB for the
relevant Programme Year, and make such allocations available to the respective Project Account quarterly
in advance.
(b) Without limiting the generality of paragraph (a) above, the Borrower shall ensure that VBARD’s
contribution in the aggregate amount not to exceed 20% of the total incremental loans which shall be
referred to in the SLA, is made available by VBARD from its own resources during the Programme
Implementation Period, in accordance with the SLA.
Procurement. All procurement financed by the proceeds of the Loan and Grant shall be carried out in
accordance with Schedule 4.
Monitoring. As soon as practicable but in no event later than three (3) months after the Effective Date, each
PPMU, as regards its respective Project, with the exception of activities falling under the Programme Quality
Component (Schedule 1, paragraph 5.5), and the Rural Finance Sub-component (Schedule 1, paragraph
5.2.1(c)), and each VBARD Provincial Branch as regards the respective activities falling under the Rural
Finance Sub-component (Schedule 1, paragraph 5.2.1(c)) of the Programme, shall establish and thereafter
maintain an appropriate information management system to enable them to continuously monitor the
Programme in accordance with the Fund’s “Guidelines for Programme Monitoring and Evaluation”,
paragraph 4 of Schedule 3 (II. Additional Covenants) and Section 8.02 (Monitoring of Programme
Implementation) of the General Conditions, based on indicators agreed by the Borrower and the Fund.
Progress Reports.
42
Compliance
Status/Date
Remarks
Complied
Partially complied
Complied
Complied
Not fully complied
See “Counterpart
funds” para in AM
Section
4.03.
4.04.
4.05.
5.01
Covenant
(a) The PPMU-BT, with respect to the BT Project, and the PPMU-CB, with respect to the CB Project, shall
submit to the PPSC and the Fund six-monthly and consolidated annual progress reports on Programme
implementation for their respective Project, as required by Section 8.03 (Progress Reports) of the General
Conditions, no later than two (2) months after the end of each six-monthly period during the Programme
Implementation Period.
(b) The MPI, with respect to the activities falling under the Programme Quality Component
(Schedule 1, paragraph 5.5) shall submit to the Fund six-monthly and consolidated annual progress reports
on implementation of said Component, as required by Section 8.03 (Progress Reports) of the General
Conditions, no later than two (2) months after the end of each six-monthly period during the Programme
Implementation Period.
Mid-Term Review. (a) The Fund, jointly with the Borrower and the: (i) Lead Project Agency-BT, jointly with
the relevant VBARD Provincial Branch, with respect to the BT Project; and (ii) Lead Project Agency-CB,
jointly with the relevant VBARD Provincial Branch, with respect to the CB Project, shall carry out separate
reviews of Programme implementation with respect to each Project no later than 36 months after the
Effective Date (the “Mid-Term Reviews”), based on terms of reference prepared by: (i) the PPMU-BT with
respect to the BT Project; (ii) the PPMU-CB with respect to the CB Project; (iii) MPI with regard to the
activities falling under the Programme Quality Component (Schedule 1, paragraph 5.5); and (iv) VBARD
with respect to the activities falling under the Rural Finance Sub-component (Schedule 1, paragraph
5.2.1(c)). The terms of reference for each Mid- Term Review shall be approved by the Fund. Among other
things, the Mid-Term Reviews shall consider the achievement of Programme objectives and the constraints
thereon, and recommend such reorientation as may be required to achieve such objectives and remove
such constraints.
(b) The Borrower shall ensure that the recommendations resulting from the Mid-Term
Reviews are implemented within a reasonable time thereafter and to the satisfaction of the Fund. It is
agreed and understood that such recommendations may result in modifications to the Loan Documents.
Completion Reports. The PPMU-BT, the PPMU-CB, and MPI shall each submit to the Fund the completion
report with respect to the BT Project, the CB Project and the activities falling under the Programme Quality
Component (Schedule 1, paragraph 5.5), respectively, as required by Section 8.04 (Completion Report) of
the General Conditions, no later than six months after the Programme Completion Date. In addition to those
matters specified in said Section 8.04, the completion report shall detail: (i) the concrete steps taken by the
Programme to assure the sustainability of the Programme’s achievements over time; (ii) the extent to which
benefits of the Programme have reached the Target Group; and (iii) the impact of the Programme on the
livelihoods of the Target Group.
Evaluations. The Borrower and each Programme Party shall facilitate all evaluations and reviews of the
Programme that the Fund may carry out during the Programme Implementation Period and for ten years
thereafter, as required by Section 10.05 (Evaluations of the Programme) of the General Conditions.
Financial Statements. As required by Section 9.02 (Financial Statements) of the General Conditions, each
PPMU shall prepare six-monthly and consolidated annual financial statements of the operations, resources
and expenditures related to their respective Projects under the Programme, and shall consolidate such
43
Compliance
Status/Date
Complied
Not yet applicable
Not yet applicable
Complied
Remarks
Section
5.02
7.01.
Covenant
financial statements with those prepared and submitted hereto by VBARD at the same intervals (each such
consolidated Financial Statement shall hereinafter be referred to as “Project Financial Statement”). MPI
shall prepare six-monthly and consolidated annual financial statements of the operations, resources and
expenditures related to the activities falling under the Programme Quality Component (Schedule 1,
paragraph 5.5) (each such consolidated Financial Statement shall hereinafter be referred to as “MPI
Financial statement). Each PPMU and MPI shall respectively deliver the relevant Project Financial
Statement and MPI Financial Statement to the Fund within two (2) moths after the end of each such period.
Audit Reports. (a) As soon as practicable but no less than 90 days before the end of the first fiscal Year,
and annually thereafter, the Borrower, through each Lead Project Agency and MPI, shall appoint, with the
prior approval of the Fund, independent auditors selected by the respective PPMU and MPI in accordance
with the procedures and criteria set forth in the Fund’s “Guidelines on Project Audits (for Borrowers’ Use)”
(2003, as may be amended from time to time) to respectively audit the financial statements relating to the
respective Project under the Programme and the Programme Quality Component (Schedule1, paragraph
5.5) for the first two Fiscal Years. Thereafter throughout the entire Programme Implementation Period, as
soon as practicable during each successive Fiscal Year each Lead Project Agency and MPI shall either
confirm the appointment of the same independent auditors, subject to satisfactory performance, or shall
follow the same procedure to appoint new independent auditors for such Fiscal Year.
(b) MPI, with respect to the activities falling under the Programme Quality Component (Schedule 1,
paragraph 5.5), and the Lead Project Agencies shall have the financial statements relating to the
Programme audited each Fiscal Year by such auditors with respect to the relevant Project under the
Programme in accordance with the International Standards on Auditing and the Fund’s “Guidelines on
Project Audits (for Borrowers’ Use)” (2003, as may be amended from time to time) (individually, the “MPI
Audit”, the “BT Audit” and the “CB Audit”, and generally the “Audit Report”; collectively, the “Audit Reports”).
In accordance with Section 9.03 (Audit of Accounts) of the General Conditions, each respective Audit
Report shall include, among others: (i) an opinion on the certified statements of expenditure as described in
paragraph 4 of Schedule 2 and the operation/utilisation of the respective Special Account and of the Grant
Receiving Account; and (ii) a separate management letter, addressing the adequacy of the accounting and
internal control systems. MPI, the PPMU-BT and the PPMU-CB shall deliver the MPI Audit, BT Audit and
the CB Audit, respectively, to the Fund within six months of the end of each such Fiscal Year. MPI, the Lead
Project Agency-BT and Lead Project Agency-CB shall submit to the Fund the reply to the management
letter of the auditors with respect to the MPI Audit, BT Audit and the CB Audit, respectively, within one
month of receipt thereof.
Conditions Precedent to Effectiveness. This Agreement shall become effective in accordance with Article
XIII of the General Conditions (Effectiveness and Termination) subject to the fulfilment of the following
conditions precedent:
(a) The Borrower, the PPMUs, VBARD and MPI, as appropriate, shall have duly opened the Special
Accounts, Grant Receiving Account and Project Accounts, in accordance with Sections 2.03, 2.04 and 3.03,
respectively;
(b) this Agreement shall have been duly signed, and the signature and performance thereof by the Borrower
44
Compliance
Status/Date
Complied
Complied
Remarks
Section
7.02.
7.03.
Schedule 1,
Para 1
Para 2
Para 3
Para 4
Para 5.1
Covenant
shall have been duly authorised and ratified by all necessary administrative and governmental action; and
(c) a favourable legal opinion, issued by the legal counsel of the Borrower authorised to issue such
opinions, in respect of the matters set forth in Section 7.02 hereof and in form and substance acceptable to
the Fund, shall have been delivered by the Borrower to the Fund.
Legal Opinion. The legal opinion required by Section 7.01 shall favourably address the following matters:
(a) the conditions precedent specified in paragraph (b) of Section 7.01 have been fulfilled; (b) this
Agreement is legally binding upon the Borrower in accordance with its terms regardless of any law to the
contrary in its territory;
Deadline for Effectiveness. If this Agreement does not become effective within 90 days after the date hereof
or such later date as the Fund may designate, the Fund may terminate this Agreement and the other Loan
Documents as provided in Section 13.03 of the General Conditions.
The Programme shall be carried out in fifty (50) selected communes in seven (7) rural districts in the Ben
Tre province (“BT”) and fifty (50) selected communes in ten (10) rural districts in the Cao Bang province
(“CB”) of the Borrower’s territory (the “Programme Area”) (each such rural district, a “Project District”) (BT
and CB each a “Programme Province”).
The Projects. All activities funded hereby as described in this Schedule constitute the Programme, although
specific activities differ between BT and CB. Those Programme activities implemented in BT under the
implementation arrangements described in this Agreement shall be referred to as the “BT Project”, whereas
the activities implemented in CB under the implementation arrangements described in this Agreement shall
be referred to as the “CB Project”.
Target Group. The Programme shall target: (i) the poorer and more vulnerable households with
underemployed members and sub-economic holdings; (ii) poor households with the potential to increase
their agricultural production; (iii) women and women-headed households; (iv) underemployed youth; and (v)
ethnic minorities, especially in CB.
Goal and Purpose. The goal of the Programme is to contribute to sustainable and equitable reduction in
rural poverty, whereas the purpose of the Programme is to empower rural poor households to benefit from
profitable, socially equitable and environmentally sustainable business opportunities.
Components. The Programme shall consist of the following Components:
5.1. Improving the Business and Investment Environment
5.1.1. The objective of this Component shall be the adoption and enforcement of provincial policies,
strategies and procedures, strengthening private sector participation in a more efficient, competitive and
pro-poor market environment through the following Sub-components and activities: 5.1.2. BT (a) Raising
Provincial Competitiveness. Preparation and implementation of a strategy and action plan to raise provincial
competitiveness, with special emphasis on promoting rural business enterprises that directly benefit the
rural poor. (b) Strengthening Business Facilitation Agencies. Capacity building of agencies to facilitate
business through registration, supervision, supply of investment, business information
and promotion of BT, its products and opportunities. (c) Pilot Public/Private Partnerships. Assessment and
potential investment in public/private partnerships (PPP) in environmental management, with special
relevance for poorer rural
45
Compliance
Status/Date
Complied
Complied
Complied
Complied
Partially complied
Complied
Complied
Remarks
Section
Para 5.2
Para 5.3
Para 5.4
Compliance
Status/Date
Covenant
people.
Rural Business Development Services
5.2.1. In order to develop value chains responding to consumer demand and providing sustainable
competitive advantage to enterprises, the Programme shall support the following Sub-components and
activities: (a) Value Chain Development Services, through: (i) Strategic analysis of key opportunities and
assessment of value chains and surveys of the markets for business development services; (ii) capacity
building of existing and new entrepreneurs in the preparation of business
plans, business management, design of services for links in value chains and technical matters to relate
with rural producers; (iii) integration with the agricultural market information systems being developed by
MARD; (iv) provision of basic communications equipment to CIGs for access to market information; (v)
collection and exchange of labour market information from both demand and supply sides; and (vi)
introduction of food safety standards to ensure public health and to increase marketability of crop and
livestock products beyond the Programme Provinces. (b) Farm Productivity improvement, through: (i)
Strengthening of extension services and mass organisations to provide advice tailored to farmers’ needs
and based on value chain analyses; (ii) upgrading an agricultural technology transfer centre to carry out
applied and adaptive research in response to requests from farmers, CIGs and mass organisations (BT
only); and
(iii) support for contractual linkages between farmers and enterprises in response to requests from CIGs,
mass organisations and other rural groups. (c) Rural Finance, through: (i) Establishment of a line of credit in
each Programme Province through VBARD Provincial Branch; and (ii) contributions to loan assurance funds
made available in each Programme Province;
Expanding Market Access for the Rural Poor
5.3.1. In order to enhance participation of the rural poor in integrated and profitable markets, the
Programme shall support the following: (a) Enhancing Common Interest Groups (CIGs), by: (i) Training of
CIGs on formation and management of groups, value chain approaches, marketing matters and savings
and credit (especially for women);
(ii) increasing awareness of small-scale farmers on contract farming; (iii) on-site trainings and field visits for
CIG members to investigate market opportunities; and (iv) formation and operation of savings and credit
groups (Cao Bang only).
(b) Participatory Investment Prioritisation and Implementation, through: (i) Planning exercise in each village
of the selected communes to identify the highest priorities for investment and business linkages; and (ii)
preparation and implementation of participatory market oriented Commune development plans. (c)
Commune Investments, through investments in infrastructure, production and marketing facilities, services
or capacity building, to be financed by the CIF.
Programme Management
5.4.1. In order to achieve efficient management and to increase the capacity of the Programme Provinces’
institutions for future Project and Programme management, the following activities shall be supported: (a)
Establishment of the Provincial Project Steering Committee (PPSC), Provincial Project Management Units
(PPMUs), District Project Management Offices (DPMOs) in each of the Project Districts and Commune
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Development Boards (CDBs) and Community Supervision Boards (CSBs) in each of the Communes of the
Programme Area; and (b) involvement of other key line agencies and existing administrative units in the
implementation of the Programme
5.5.1. The specific objective of the Programme Quality Component is to develop the capacity of the
Borrower to undertake a focal role in quality management during Programme implementation and to
enhance the policy impact of Fund-supported projects and programmes in the Borrower’s Territory. To this
effect, a PMU shall be established within MPI.
5.5.2. The Component shall finance the following activities: (a) Capacity Building of, among others, MPI,
MOF, Office of the Government, MARD and Ministry of Foreign Affairs of the Borrower to plan, manage and
monitor development
performance of Fund-supported rural poverty reduction projects/programmes; Programme Quality
Management Facility: to mobilise technical assistance from institutes, consultation companies, NGOs to
conduct issue-oriented or problem-solving assessment for making managerial decisions in cooperation with
the Fund; and (c) Competitive Facility for Policy Development: to document and broadcast experiences and
lessons learned from the Fund-supported projects and programmes in the Borrower’s territory for policy
development
3.Minimum Withdrawal Amounts. Withdrawals from the Loan and Grant Account shall be made in amounts
no less than USD 20 000 or its equivalent, or such other amount as the Fund may designate
from time to time.
4. Statements of Expenditure. Withdrawals from the Loan Account and the Grant Account may be made
against certified statements of expenditures in respect of Eligible Expenditures in such amounts as the fund
may designate from time to time by notice to the Borrower. The records evidencing such expenditures need
not be submitted to the Fund, but shall be retained by the Borrower for inspection by the representatives of
the Fund, in accordance with Sections 4.07 (Statements of Expenditure) and 10.03 (Visits, Inspections and
Enquiries) of the General Conditions.
5. Retroactive Financing. Withdrawals not exceeding in the aggregate the equivalent of SDR 200 000 may
be made from the Loan Account in respect of expenditures for Categories V (Technical Assistance, Training
and Studies) and VIII (Salaries) of the Allocation Table set forth in Paragraph 1 of this Schedule incurred
before the Effective Date but after 15 December, 2007. Such expenditures shall be considered Eligible
Expenditures for all purposes of this Agreement, if otherwise eligible.
6. Conditions Precedent to Withdrawal. (a) No withdrawals shall be made in respect of expenditures for all
Categories of the Allocation Table set forth in paragraph 1 of this Schedule, until the AWPBs for Programme
Year 1, including a Procurement Plan for the first eighteen months of the Programme, have been submitted
to and approved by the Fund;
(b) No withdrawals shall be made in respect of expenditures for all Categories of the Allocation Table set
forth in paragraph 1 of this Schedule, until the PIMs shall have been approved by the Fund in draft and a
copy of the PIMs as adopted by the Lead Project Agencies shall have been delivered to the Fund;
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(c) No withdrawals shall be made in respect of expenditures under Category I (Commune Investment
Funds) of the Allocation Table set forth in paragraph 1 of this Schedule until the PPC in each Programme
Province shall have issued the necessary authorisations enabling the Communes to apply force account
methods for construction. (d) No withdrawals shall be made in respect of expenditures under Category II
(Credit and Loan Assurance) of the Allocation Table set forth in paragraph 1 of this Schedule, until the SLA,
in form and substance acceptable to the Fund, shall have been entered into by the Borrower and VBARD in
accordance with paragraph 10.1 of Schedule 3 (I. Programme Implementation) and a copy of the signed
SLA shall have been delivered to the Fund; and the Credit Manual, described in paragraph 10 of Schedule
3 (I. Programme Implementation), shall have been prepared by VBARD and approved by the Fund.
Schedule 3
Programme implementation
NATIONAL LEVEL
1. The Ministry of Finance of the Borrower (MOF), through the External Finance Department (EFD), shall be
responsible for high-level coordination between the Borrower and the Fund in accordance with the
Borrower’s regulations. Except for management of Programme funds and loan repayments, MOF and its
departments shall have no direct implementation or management responsibility under the Programme as
such shall be decentralised to the Programme Provinces and lower administrative levels. The Ministry of
Planning and Investment (MPI), through the Foreign Economic Relations Department (FERD), shall be
responsible for coordinating monitoring and evaluation activities and shall maintain cooperation with other
ministries and donors. The Ministry of Agriculture and Rural Development (MARD), the Committee of Ethnic
Minorities (CEM) and other relevant ministries shall facilitate replication of best practices, lessons learned
and successful interventions and policy dialogue. Each VBARD Provincial Branch shall be responsible for
the credit extended as part of the Rural Finance Sub-component.
Designation and Responsibilities. The Provincial People’s Committee (PPC) of each Programme Province,
in its capacity as Lead Project Agency for the Programme as it relates to its respective Project in its
Programme province, shall be responsible for implementation of the Programme under its respective
Project, including:
a) recruiting/appointing Provincial Project staff in line with criteria approved by the Fund;
b) ensuring timely provision of counterpart funds in line with and as required by Section 3.05 of this
Agreement; and
c) issuing the necessary authorisations enabling the Communes to apply force account methods for
construction. The Lead Project Agencies shall each be assisted in their tasks by the relevant PPSC and the
PPMU.
Provincial Project Steering Committee (PPSC)
3.1. Establishment. The Lead Project Agency-BT and the Lead Project Agency-CB shall each establish,
through a decision issued by the relevant Lead Project Agency, and maintain throughout the entire
Programme Implementation Period, a Provincial Project Steering Committee (PPSC) in each Programme
Province with responsibilities as set forth herein with respect to the relevant Project. The establishment of
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the PPSC, along with its terms of reference, shall be notified by the responsible Lead Project Agency to the
Fund.
3.2. Composition. Each PPSC shall be composed of, among others, departments and agencies selected by
the respective Lead Project Agency.
3.3. Responsibilities. The PPSC shall act as an advisory body to the respective Lead Project Agency in
policy formulation, planning, coordination, supervision and monitoring of the activities under their respective
Project, and shall be responsible for the conduct and activities of the PPMUs in their respective Project. The
PPSCs shall also have the following responsibilities with respect to their respective Project:
(a) Ensuring complementarity between the respective Project and other externally/internally financed
projects/programmes and the efficient use of Programme-funded financial and human resources;
(b) providing supporting policy framework and guidelines to the PCUs for efficient Project implementation;
(c) soliciting/proposing supportive regulations and decisions from the Lead Project Agency for simplification
of procedures, where needed, to assist the Programme’s approach in the Programme Province;
(d) reviewing and approving the AWPBs for the respective Project;
(e) interfacing between the relevant PPMU and Lead Project Agency on matters of policy formulation,
revision and implementation with a view to ensuring effective implementation of the Project;
(f) ensuring effective cooperation and coordination between the PPMUs, the implementing agencies of the
Project in the Programme Province and instilling a system of accountability for performance and proper use
of resources at all levels; and (g) reviewing progress reports and ensuring timely corrective action on
management and implementation issues.
Provincial Project Management Units (PPMUs)
4.1. Establishment. Before the Effective Date, the Lead Project Agencies shall each establish a Provincial
Project Management Unit (PPMU) under their respective Project. The PPMUs shall report to the respective
PPSCs but shall enjoy administrative autonomy in their day-to-day operations. The establishment of the
PPMU, along with its terms of reference, shall be notified by the responsible Lead Project Agency to the
Fund.
4.2. Composition. Each PPMU shall be composed of the following with respect to the relevant Project: the
Project Director; Deputy Director; Secretary; Accountant; Cashier/Office Assistant; Interpreter/Translator;
M&E Officer; Planning Officer; and Driver. The respective PPMU shall fill required positions following an
open and competitive recruitment process open to candidates from both the public and private sector.
4.3. Responsibilities. Each PPMU, as regards its respective Project, shall carry out, among others, the
following functions:
(a) Contract and provide guidance to Programme Parties and relevant business development service
providers to ensure adherence to the Programme’s guidelines and achievement of its objectives;
(b) consolidate proposals of Programme Parties and relevant business development service providers to
prepare the Project’s AWPBs;
(c) release funds to Programme Parties and relevant business development service providers;
(d) maintain consolidated Project accounts in accordance with the Fund’s requirements;
(e) operate and maintain the relevant Project Account;
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(f) prepare and submit Loan withdrawal requests;
(g) procure required goods and services;
(h) monitor performance of Programme Parties and relevant business development service providers;
(i) ensure that implementing agencies provide required information for timely preparation and submission of
periodic progress reports;
(j) prepare periodic progress and financial reports required by the Fund, the Lead Project Agencies and the
Borrower;
(k) establish and maintain liaison with other projects and programmes to ensure complementarity;
(l) monitor and evaluate Programme activities;
(m) organise annual workshops for participatory review involving all stakeholders and seminars to discuss
issues leading to improvement in performance; and
(n) prepare an in-depth review of performance and achievements prior to the Mid-Term review.
Project Directors (PDs)
5.1. Appointment. The Lead Project Agencies shall appoint a Project Director under their respective
Projects (collectively, the “Project Directors” or generally the “Project Director”; individually, the
“Project Director-BT” and the “Project Director-CB”), subject to the prior approval of the Fund. The
experience, background and terms of reference for the Project Directors shall be approved by the Fund.
The appointment of the Project Directors, along with their terms of reference, shall be notified by the
responsible Lead Project Agency to the Fund.
5.2. Tenure. The Project Directors shall serve throughout the entire Programme Implementation Period, and
may only be removed by the responsible Lead Project Agency after prior consultation with
the Fund.
5.3. Responsibilities. The Project Directors shall be dedicated to the Project on a full-time basis. The Project
Directors shall be the head of the respective PPMUs. The respective Lead Project Agency shall
issue a decision giving the Project Directors the necessary and adequate executive authority to ensure the
smooth functioning of the PPMU and of the Programme Parties under their respective Project. The
Project Directors shall be the secretary of their respective PPSC, and shall be responsible for the interaction
between the PPSC, PPMU, District Programme Management Office (DPMO), CPC and other Programme
Parties.
District Project Management Offices (DPMOs)
6.1. Establishment. In BT, the existing District Project Management Units (DPMU) in the DPCs shall be
established as the District Project Management Offices (DPMO) for the Project. In CB, a DPMO shall be
established in each Project District as a pre-requisite for district participation in the Programme. The
establishment of the DPMO, along with its terms of reference, shall be notified by the responsible Lead
Project Agency to the Fund.
6.2. Responsibilities. The DPMO shall be responsible for supporting all Project activities in its district and, in
particular, monitoring and evaluation, commune planning and implementation, and building-up the capacity
of the district in promoting market/business development.
Commune Development Board (CDB) and Community Supervision Board (CSB)
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7.1. Establishment. A Commune Development Board (CDB) and a Community Supervision Board (CSB)
shall be established to, respectively, assist the CPC in implementation and represent the interests of
communities and supervise the quality of projects using the CIFs.
Targeting. The key elements in Programme targeting shall be, among others:
(a) Selecting communes, and within these, villages where poverty rates are among the highest in the
Programme Provinces;
(b) selection of sub-sectors and value chains in which resources are controlled by the poor and those which
create more job opportunities for the poor;
(c) pro-poor and gender-equal delivery of services;
9. Commune Investments. All commune investments shall be pro-poor. General rules for the use of CIFs
shall include:
(a) A maximum of 90% of the total allocation for any Commune may be used for infrastructure;
(b) at least 80% of the CIF shall be reserved for village priorities determined in the village planning
exercises and included in each Commune’s development plan;
(c) a minimum of 30% of the CIF shall be spent on items prioritised by women.
10. Rural Finance. Each VBARD Provincial Branch shall assume full responsibility for implementing the
Programme’s Rural Finance Sub-component (Schedule 1, paragraph 5.2.1(c)), guided by a Credit Manual
that shall be drafted by VBARD at the beginning of the Programme and submitted to the Borrower and the
Fund for approval. Amendments to the Credit Manual shall only be made with the prior approval of VBARD,
the Borrower and the Fund. The Credit Manual shall specify, among others:
(a) Management procedures for the credit;
(b) eligibility criteria for investments to be financed;
(c) terms and conditions for loans (lending rate, term, maturity, financing, collateral, default and prepayment);
(d) appraisal procedures;
(e) gender and ethnic minority considerations and environment Protection;
(f) supervision and reporting; and
(g) roles and responsibilities of VBARD and other Programme entities for promotion of viable enterprises to
be funded.
Subsidiary Loan Agreement (SLA). Programme Funds shall be made available to the Borrower, as detailed
in the relevant Subsidiary Loan Agreement to be entered into by the Borrower and VBARD and which shall
provide, among other things, that:
(a) The Borrower shall on-lend to VBARD from the proceeds of the Loan an amount in VND not to exceed
the total allocation under Category II (Credit and Loan Assurance) of the Allocation Table set forth in
Schedule 2, paragraph 1 hereof, for purposes of carrying out Programme activities financed thereunder, in
accordance with the Borrower’s onlending policy applicable to ODA-funded projects, and on terms and
conditions acceptable to the Fund;
(b) VBARD shall pay the Borrower’s interest on the principle amount of the loan fund portion of the Credit
withdrawn by VBARD and the principal amount of the credit outstanding from time to time based on terms
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and conditions acceptable to the Fund;
(c) the Borrower shall make available to VBARD, to be passed onto each VBARD Provincial Branch, an
initial advance in VND equivalent to USD 500 000 per Branch.
VBARD shall make available from its own resources the amount of USD 125 000 to each Provincial Branch.
Each VBARD Provincial Branch may from time to time request replenishment, through VBARD
Headquarters, of the respective Account for payments made out thereof, in accordance with the SLA and
the respective AWPB;
(d) the Subsidiary Loan Agreement shall come into force and effect on the date upon which the Programme
Financing Agreement becomes effective;
(e) the Borrower, through VBARD, shall establish and maintain in each VBARD Provincial Branch a
Revolving Fund for the lines and credit into which all net revenues from credit extended directly or indirectly
by the Loan shall be deposited. VBARD shall use the Revolving Funds to further credits to the Target Group
in accordance with this Agreement. For purposes of this paragraph, the term “net revenues” means all the
repayment of principal and all payments of interest, less reasonable operating and other costs;
(f) VBARD shall contribute in an amount not exceeding 20% of the total incremental loans which shall be
referred to in the SLA, to assist in financing the Rural Finance Sub-component of the Programme (Schedule
1 paragraph 5.2.1(c) (i));
(g) VBARD shall carry out its activities under the Programme in accordance with the procedures, principles
and practices set forth in the Credit Manual, and declares its commitment not to assign, amend, abrogate or
waive the Credit Manual or any provisions thereof if, in the opinion of the Fund, such assignment,
amendment, abrogation or waiver
shall materially and adversely affect VBARD’s performance or the implementation of the Programme;
(h) VBARD shall declare its commitment to the goal and purposes of the Programme as stated in Schedule
1 hereto and, in furtherance of such goal and purposes, shall undertake to carry out the Programme in
accordance with this Agreement, in particular Schedules 1 and 3 hereto;
Project Implementation Manuals (PIMs)
11.1. Preparation and Approval. Each PPMU shall prepare a draft Project Implementation Manual (PIM) to
be submitted to the Fund for its approval. If the Fund does not comment on the draft PIM within 30 days
after receipt, such PIM shall be deemed approved. PPMUs shall promptly provide copies of the adopted
final version thereof to the Fund and shall issue the PIM by decision of the Lead Project Agencies. The PIM
shall detail the Programme implementation responsibilities in line with the Borrower’s policy and the
procedures for planning, budgeting, financing, loan and grant disbursement, reporting, procurement,
preparation of accounts and auditing.
11.2. Amendments and Conflict. The PPMU may propose amendments to the PIM from time to time, which
shall become effective upon approval by the Fund. Any modification to the PIM shall be approved by the
Fund. In the event of inconsistency or conflict between the terms of this Agreement and the PIM, the former
shall prevail.
Gender Focus. Gender equality, gender mainstreaming and specific targeting of women’s participation in
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Programme activities, shall be pursued through the following measures:
(a) Mainstreaming gender in all Programme activities, including working towards increased women’s
participation in the Programme’s decision making processes;
(b) ensuring that no less than 40% of participants in job/skills training are women;
(c) promotion of women’s savings and credit groups;
(d) terms of reference of Programme staff shall include addressing of gender mainstreaming and gender
issues as a cross-cutting area of concern across all activities;
(e) gender disaggregation of the monitoring indicators, as necessary, to allow Programme management to
assess Programme impact on women and men, allowing them to respond to issues, challenges and
opportunities; and
(f) provision of a budget to enable Programme management to address gender-linked issues and
constraints that may arise during implementation.
2. Indigenous Peoples (IP) Concerns. The Borrower shall ensure that the concerns of the IP are given due
consideration in implementing the Programme and, to this end, shall ensure that:
(a) The Programme is carried out in accordance with the applicable provisions of the relevant IP national
legislation;
(b) the IP are adequately and fairly represented in all local planning for Programme activities;
(c) IP rights are duly respected;
(d) IP communities participate in policy dialogue and local governance;
(e) the terms of Declarations, Covenants and/or Conventions ratified by the Borrower on the subject are
respected; and
(f) the Programme shall not involve encroachment on traditional territories used or occupied by indigenous
communities.
3. Pest Management Practices. As part of maintaining sound environmental practices as required by
Section 7.15 of the General Conditions, the Borrower shall maintain appropriate pest management practices
under the Programme and, to that end, shall ensure that pesticides procured under the Distribution and Use
of Pesticides of the Food and Agriculture Organisation of the United Nations (FAO), as amended from time
to time, and pesticides procured under the Programme do not include any pesticide formulation which would
be classified as Extremely Hazardous (Class Ia) or Highly Hazardous (Class Ib) according to the WHO
Recommended Classification of Pesticides by Hazard and Classification 1996-97, as amended from time to
time.
4. Monitoring. The PPMUs shall be responsible for establishing and maintaining a functioning and
appropriate monitoring and evaluation (M&E) system. The M&E system shall incorporate the Fund’s
Framework for Results Impact Monitoring System (RIMS), with the main objective being to assess the
impact of Programme interventions on the lives of the Target Group.
5. Independent Auditors. Each PPMU, as regards its respective Project, and MPI with respect to the
activities falling under the Programme Quality Component (Schedule 1, paragraph 5.5) shall select
independent auditors to audit the accounts and statements as required by Section 5.02(a) on the basis of
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and following a competitive and open bidding exercise in accordance with the procedures set forth in
Schedule 4. Such selection shall be subject to prior review and approval by the Fund.
6. Insurance of Programme Personnel. The Lead Project Agencies shall insure key Programme personnel
against health and accident risks to the extent consistent with its customary practice in respect of its
national civil service.
7.Staffing. The Borrower shall ensure that Programme staff at all levels are recruited and retained on the
basis of satisfactory employment contracts.
8. Use of Programme Vehicles and Other Equipment. The Lead Project Agencies shall ensure that:
(a) All vehicles and other equipment procured under the Programme are allocated to the Programme
Parties for Programme implementation;
(b) the types of vehicles and other equipment procured under the Programme are appropriate to the needs
of the Programme; and
(c) all vehicles and other equipment transferred to or procured under the Programme are dedicated solely to
Programme use.
9. Fraud and Corruption. The Borrower shall promptly bring to the attention of the Fund any allegations or
concerns of fraud and/or corruption in relation to the implementation of the Programme of which it has
knowledge or becomes aware.
Procurement of goods, works and consulting services financed by the Loan and the Grant shall be subject
to the provisions of the IFAD “Procurement Guidelines” approved by the Executive Board in December 2004
(the “Procurement Guidelines”) as such guidelines may be amended from time to time by the Fund. If any
provision of the Procurement Guidelines is inconsistent with a provision of this Schedule, then the latter
shall govern.
To the extent possible, the goods, works and consulting services shall be bulked into sizeable bid packages
in such a manner as to permit the optimal use of competitive bidding.
Before the commencement of procurement and annually thereafter, the Borrower shall furnish to the Fund
for approval, a Procurement Plan as described in Appendix 1, paragraph 1 of the IFAD Procurement
Guidelines. The Procurement Plan shall specify, among others, the method of procurement for each
contract to be financed from, and thresholds, ceilings and preferences to be utilised in the implementation of
procurement under the Programme. The Procurement Plan shall also specify any additional requirements
as may be set out in the IFAD Procurement Guidelines with respect to certain
methods of procurement. The procurement plan shall be updated from time to time in accordance with
Section 3.02 (a) of this Agreement to cover succeeding eighteen month periods.
Procurement shall be undertaken only during the Programme Implementation Period.
No procurement shall be undertaken if it entails a payment to persons or entities, or an import of goods,
prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the
United Nations. The Fund shall inform the Borrower of any such persons, entities or import.
The methods which are permitted for the procurement of goods and works are the following:
(i) International Competitive Bidding
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(ii) Limited International Bidding
(iii) National Competitive Bidding
(iv) International or National Shopping
(v) Direct Contracting
(vi) Procurement from Commodity Markets
(vii) Work by Force Account
(viii) Procurement from United Nations Agencies
(ix) Procurement Agents
(x) Inspection Agents
(xi) Procurement by Financial Intermediaries or Sub-Loan Beneficiaries
(xii) Procurement with Community Participation, which shall be carried out in accordance with procedures
acceptable to the Fund and specified in the Procurement Plan.
Para 7
Para 8
Para 9
Para 10
Para 11
The methods which are permitted for the procurement of consulting services are the following:
(i) Quality and Cost-Based Selection
(ii) Quality-Based Selection
(iii) Selection under a Fixed Budget
(iv) Least-Cost Selection
(v) Selection Based on Consultants’ Qualifications
(vi) Single-Source Selection
(vii) Selection of Individual Consultants
(viii) Commercial Practices
In the procurement of goods and works from the proceeds of the Loan and Grant, the country of the
Borrower may be granted a margin of preference as provided in Paragraphs 55-59 (Domestic Preference)
of the Procurement Guidelines. The Procurement Plan and all bidding documents shall clearly indicate the
permitted preference to be granted, the manner in which the preference shall be applied in bid comparison
and the information required to establish the eligibility of a bidder for such preference. The nationality of the
manufacturer or supplier shall not be a condition for such eligibility.
The award of any contract for goods and works referred to in paragraph 6 above, estimated to cost USD 60
000 equivalent or more, shall be subject to prior review by the Fund. The aforementioned threshold may be
modified from time to time as notified by the Fund to the Borrower.
The award of any contract for consulting services referred to in paragraph 7 above, estimated to cost USD
30 000 equivalent or more, shall be subject to prior review by the Fund. The aforementioned threshold may
be modified from time to time as notified by the Fund to the Borrower.
All bidding documents and contracts for the procurement of goods, works and services financed by the
Loan and the Grant shall include a provision requiring, bidders, suppliers, contractors, subcontractors and
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consultants to permit the Fund to inspect their accounts, records and other documents relating to the bid
submission and contract performance and to have them audited by Fund-appointed auditors and
investigators. This provision shall require bidders, suppliers, contractors, sub-contractors and consultants
to: (i) maintain all documents and records related to the Programme activities financed by the Fund for three
years after completion of the work contemplated in the relevant contract, and (ii) require the delivery of any
document necessary for the investigation of allegations of fraud or corruption and the availability of
employees or agents of the bidders, suppliers, contractors, sub-contractors or consultants with knowledge
of the Programme activities financed by the Fund to respond to questions from the Fund’s personnel or any
properly designated auditor, investigator, agent or consultant relating to review or audit of the document. If
the bidder, supplier, contractor, subcontractor or consultant fails to comply with the Fund’s request, or
otherwise obstructs the Fund’s review of the matter, the Fund, in its sole discretion, may take appropriate
action against the bidder, supplier, sub-contractor or consultant, including the imposition of sanctions in
accordance with the administrative procedures of the Fund.
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Appendix 6: Knowledge management: Learning and Innovation
Learning: What has worked particularly well in this project during this period?
What have been the reasons for this?
Institutionalization of commune participatory SEDP planning. Innovation of the
commune SEDP planning in Cao Bang has been supported CB-GEM project (20052009), PSARD (phase 1, 2008-2010, and phase 2 – 2011-2015) and DBRP (20092014). The provincial budget of VND7 million per commune was allocated for
participatory SEDP planning for 2015 for all project and none project communes. A
roadmap on institutionalization of participatory SEDP planning was developed by DPI.
The leading role of DPI in preparation of the roadmap, coordination of resources is
critical for successful up-scaling and institutionalization of participatory SEDP process.
Force account method was applied for 64 civil works of total cost VND21.8 billions
(average VND340 millions per scheme) including contribution of total VND5.91 billion
(about 27% of the total investment cost) from benefiting groups. This method can be
used for small-scale civil works such us village roads, lined canals, warehouses using
intensively unskilled labor and without complicated technical requirements.
Advantages of force account method in comparison with competitive bidding include
(i) able to mobilize a higher rate of contribution from benefiting groups in term of
labour, local material; (ii) saving time (for design, procurement, contracting) and
saving cost for project management; (iii) enhancing ownership of benefiting groups
and sustainability . The force account method was perceived as suitable for
implementation of P135 phase 3 (2012-2015) and NRD programme.
Learning: What has not worked so well? What have been the reasons?
Selection of the project area. The project was designed to target the poor and ethnic
minority groups in 50 out of 199 communes and wards in10 out of 13 districts and
towns in Cao Bang. Due to poor traffic condition, scatter and remoteness of residential
areas of poor and ethnic groups, the project faced substantial difficulties in carrying
out project activities. It would be more effective and efficient for project
implementation by focusing project interventions in a fewer number of districts and
communes. This should be considered for selection of project areas to design future
projects.
Improved policy environment for agricultural investment.
(i) the completed policy work was useful for primary producers, but it was not directly
targeted to improve the business environment or create incentive for investment; (ii)
organization of large PCI workshops at provincial level with many high level speakers
was not the appropriate strategy for identifying issues in the present business and
investment environment; (iii) the IPC establishment has been slow, and it's focus has
been in studying PCI index rather than supporting individual enterprises.
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Innovation: Describe any interesting innovation noted during supervision
Public Private Cooperation (PPC) – the cases of Peanut, Cassava, Sugar Cane and
Tobacco. The SM notes that accelerating and articulating the cooperation between
public sector and private sector to help farmers in producing and marketing their
products (often called PPC) is not the objective of the project, therefore it was not
much indicated in any official documents of the project. However, observations from
the field visit really struck the SM through witnessing good cooperation between
peanut, cassava, sugar cane, and tobacco farmers (CIGs established by the project) and
peanut, cassava, sugar cane, and tobacco companies in the project areas. Without any
further intervention from the project (apart from formulation and capacity building of
CIGs, and investment in some production and processing tools), local farmers
cooperated well with the companies in which (i) companies provided free varieties,
and sold fertilizer (reimburse later) to farmers when season started; (ii) companies
provided free trainings if requested by farmers; and (iii) companies sent trucks to
collect products at the farm-gate and bought with market price. This kind of PPC, even
naturally evolved, can be referred as a result of the project supports in CIG formulation
and capacity strengthening.
SEDP rolling out: In order to assist the province in institutionalizing the SEDP, the
project has been supporting the Provincial Politics School with a 3-day training
curriculum on market oriented and participatory SEDP planning. Base on this, the
School has been providing training to the district and commune cadres. In addition, a
software for data collection and synthesis for the commune SEDP planning was made
available to support the commune planning staff in collection, processing and record of
SEDP information and data in a systematic manner. Formulation of technical working
group on SEDP planning at different levels with clear role and function helps to
overcome shortcomings of lacking designated commune planning staff and staff
turnover.
The support of CIGs was particularly systematic in Cao Bang province, with the
support of LuxDev TA, allowing strong community led value chain development. This
work included (i) preparation of a CIG toolkit including manuals for CIG establishment,
CIG savings and credit, CIG production planning, and CIG classification system; (ii)
establishment of CIG development strategies and support units in 10 districts; (iii) ToT
trainings and subsequent delivery of CIG support by partner organizations WU, FU and
PCA, and 4 value chain lead enterprises; (iv) delivery of group management and
business trainings to 17654 CIG workshop participants; (v) organization of 33 rural
development workshops with CIGs, local enterprises and local officials; and (vi)
organization of 20 market linkage workshops with CIGs and local lead enterprises,
leading to 11 companies signing contracts with 132 CIGs.
58
Innovation: How might this be replicated by others, or upscaled here?
Promoting Public Private Partnership (PPP), or Public Private Cooperation (PPC) is
exactly one of the key areas covered by the IFAD COSOP 2012-2017. This activity is
now initiated in some IFAD projects across Vietnam. The good practices found in Cao
Bang could be a model for up-scaling in the project areas and replication to other areas
within and outside the province. The SM however also notes that in order to
successfully upscale or replicate, supports are needed to (i) articulate the cooperation
between companies and farmers (binding contract, regulation); (ii) quality assurance
for the services provided by the companies (training, fertilizer, etc); (iii) scenarios to
cope with market fluctuation
Force Account method for small-scale civil work applied successful by DBRP for 62
CIF schemes. The force account implementation for small-scale civil work shows
advantage in mobilization of participation and contribution from benefiting groups,
enhancing ownership and sustainability of investment. This model can be applied for
implementation of on-going NRP, P135 phase 3, Program 30a in Cao Bang. The
provincial regulations for implementation of CP135 phase 3 was being drafted with a
provision to apply force account method for at least 30% of investment fund under the
program.
Participatory SEDP Process. The provincial budget was allocated for commune SEDP
planning for 2015 in all project and non project communes in Cao Bang. A training
curriculum on participatory SEDP process were developed and accepted as a training
module for district and commune cadres in the province political school. Without
financial support from DBRP, LD VIE029 and PSARD, the participatory SEDP planning
shall be continued in 2015 onward. This participatory planning is an effective tool for
integration and coordination of different resources at commune level.
CIG support process: The project will document the CIG support process steps, and
evaluate the impact. IFAD country office will promote the good methods in further
provinces implementing IFAD projects.
59
Appendix 7: Progress Against Previous Mission
Recommendations.
Agreed action
Increasing participation of and benefits to the
poor: In order to enhance poverty focus, organize
support activities for poor households (CIG
members and non-members) using 10% of CIF;
With the CIGs as priority target, increase the
funds allocated for the women’s saving and credit
groups (WSCG).
Responsibility
PSC/PPMU/DPCs/CPCs/
PWU
Implementation process
Activities concentrate on target groups such as poor
households and women.
Allocated the budget after 2013 SM which was submitted
to IFAD for adoption and submitted to the PPC for
approval was presented in the plan for 2014 on providing
Povety Reduction Fund in Cao Bang province, plan on
transfering project outcomes.
In October 2013, PPC issued the Decision No. 1709/QĐUBND on Approval for Grass Noodle VC Development
Plan from 2013-2015, Decision No. 1710/QĐ-UBND on
H'mong cow VC Development Plan from 2013-2015 and
the Decision No. 1726/QĐ-UBND on Black Pig Value
Chain Development Plan from 2013 - 2015.
The Decision of province and 10 project districts VCTF
was established. Training courses on strengthening
capacity for province and district VCTF relevant staff
were organised.
Institutionalization of value chain approach:
consolidation of the value chain action strategy
and plans and revision/insitutionalization of
district VCTF composition (to include DARD and
DoIT) and function. Trainings for province and
district VCTF relevant staff, and subsequent
technical/financial support for district VCTFs'
activities.
PPC, VCTF,
DOIT, DPCs
Business Development Service: Strenghten
existing ToT trained teams of BDS/CIG support
providers in FU, WU, CA and private sector.
Allocate funds to institutionalized district level
VCTFs to manage BDS support for CIGs and
MSMEs in the communes.
PPMU, PPC, DPCs,
VCTFs, FU, WU, CA
Training courses for private business households,
households provide extension services with the
participation of 150 people.
VBARD, WU
- VBARDhas exploreds new lending products to the CIGs
- Revised the guidelines for WSCGs from CIGs
development fund into social fund.
- Training courses on strengthening capacity for women
on the manual was hold; and disbursed the budget as
regulaion.
Institutionalization of MOP-SEDP: DPI to take
lead with supports from BDRP and PSARD to
consolidate the manual and to promulgate to all
communes in Cao Bang.
PPC/DPI
Process to make Market Orienting Participation and socioeconomic developing Plan (MOP-SEDP) was
institutionalised in Decision No.1517/QD - UBND applied
in all communes in the Cao Bang province. The policy of
increasing expense for communes, wards, towns in
making SEDP under the Decision No.3013/UBND - TM
dated on 18 October 2013. Decision on allocation of
excess revenues of the State budget in the area, spending
local budget 2014 under the Decision No. 2269 / Q A UBND dated on 13 December 2013
Knowledge management and partnership:
documentation and share of BDRP good
practices/experiences; exchange visits of CIGs
and CDBs; establishment of partnership group
among projects in Cao Bang.
PSC,PPMU, DPI
DBRP, partners and other projects in Cao Bang shared and
exchanged good practices/experiences as well as
cooperated to implement activities.
Finance services: VBARD explores new lending
products to the CIGs; revision of the current
guidelines for the WSCGs; establishment of
WSCG fund under the WU and development of
WU capacities.
60
DARD,
Project
management:
Review
actual
disbursement
of
each
component
and
subcomponent to reallocate project funds among
budget lines to implement prioritized activities;
Revise the 2013 AWPB based on the
recommendations of SM and reallocated budget.
PSC/PPMU
Reviewed actual disbursement of each component and
subcomponent; Revised the 2013 AWPB, the 2014 AWPB
was submitted to IFAD for adoption and submitted to the
PPC for approval.
PPC will take stronger leadership to follow up
with line agencies in revision and implementation
of the PCI action plan, especially to focus on
measures to enable more investment from private
sector into agricultural pro-poor value chains
selected by the VCD-TF and the project at
provincial and district levels.
PPC and line agencies
Organised meetings, workshops on implementation of the
PCI action plan.
Assess private sector involvement in different
supported pro-poor agricultural value chains and
implement promotion activities to attract more
investment from this sector.
DPI, DOIT,and 10 DPCs
with DBRP and LD
VIE029 support
Have assessment report already
Organize biannual policy dialogue forums with
value chain lead firms, trading enterprises,
processing enterprises, input suppliers and small
producers at provincial and district levels. At least
1 forum in each district.
PPC and 10 DPCs with
DBRP and LD VIE029
support
Pending. Because LD VIE029 hasn't recruited consultants
yet.
LD VIE/029 together with PPMU to follow up
more closely with the 4 supported companies to
assess outcomes and study this support modality
in order to draw lessons and replicate this in other
lead firms.
LD VIE029, IPCA
Trained for staff at 4 supported companies, identified
leading enterprises implement links with farmers in
agricultural commodities development.
However the assessment has not organized, it wil be
carried out in 2014
Revise draft value chain actions, taking into
account of measures related to product and market
development, building business linkages (vertical
and horizontal linkages), and chain governance.
VCD-TF,
VIE029
Make new decision to include relevant member
agencies to VC Task Forces and make the
structure permanent. The Task Forces will be
supported by DBRP and LD to fulfil their
functions and responsibilities.
PPC, DARD,
LDVIE029
PPC to assign DoIT to take lead in maintaining
the commodity market information service to
CIGs and rural producers. DoIT will develop a
plan to improve and replicate the commodity
market information service, using the government
budget and staffs at different levels, taking into
account of findings and recommendations from
the recent evaluation.
PPC, DOIT, PPMU
Regularly collecting market price information was updated
and provided to the farmers through market news, message
on phones. However, specific plan hasn't been made and
using the State budget for annual implementation.
Conduct evaluation of the farm models, identify
and document the best models, adjust agricultural
methods (FFS) and training materials for wider
replication.
DARD and PPMU
The assessment will be conducted in 2014
Document 07 models adjust agricultural methods (FFS)
Investigate new plant diseases and develop
climate smart agriculture (CSA) solutions.
DARD and PPMU
Conducted models of plants and animals adapt to climate
change, such as: cultivate green beans on highland, green
beans can live in drought areas, move stables from house,
feed silage for winter, ect.
Facilitate DoLISA-IPAC collaboration for
replication of direct enterprise-vocational training
link.
PPMU, DoLISA, IPAC
Cooperated with enterprises to organise vocational
training in the local.
PPMU,
61
LD
PPMU,
Reviewed draft value chain, identified interventions for 3
provincial value chains and 10 provincial value chains
were selected. The intervention activities are also used to
build in the 2015 action plan.
The province and 10 districts VC Task forces were
established included relevant member agencies
The DBRP supported by LD VIE029 will suggest
changes to the VBARD manual. These changes
will be submitted to VBARD central with copy to
IFAD country office.
DBRP,
LuxDev,
VBARD, IFAD
The project suggested but VBARD has not changed.
Conduct an assessment of the impacts of VBARD
loans for CIGs member to draw lessons learnt and
prepare for reporting the.
DBRP
Done.
Establish the WSCG Fund under PWU, instead of
the current arrangement with direct PPMU
management. Primary target of PWU lending will
be for CIGs.
PWU with supports from
DBRP
The project supported the Provincial Women's Union to
build the Pro-poor fund in Cao Bang province, approved
to the provincial People's Committee. So far the Provincial
Committee has decided to establish the fund, the decision
of fund will be isued in April. During 2013 the Fund
disbursed VND 1.5 billion for 20 CIGs with 80
households.
Revise the PWU SCG Manual to describe in
details the types of loans (for different borrowing
purpose such as cultivation, livestock, small
trades, etc.), the payment scheme and the details
terms of references for the Fund Members. This
manual can take references from other IFAD
projects in Viet Nam such as Ben Tre’s DBRP.
DBRP
Revised the PWU SCG Manual.
Develop the business plan for the Fund with
description of (1) management structure and the
human resource requirements, (2) loan expansion
to CIGs; (3) a financing plan with detailed
projections of financial indicators such as the
interest revenue, operation cost, cash flows
projection and capacity building requirements.
DBRP
Loans increased from VND 3 billion to VND 6 billion.
Adjust rate loans of the Fund towards competition
to ensure sustainable operation of the Fund.
DBRP
Rate loans increased from 0,25% to 0,65%.
Cung cấp hỗ trợ kỹ thuật cho Hội Phụ nữ tỉnh bao
gồm hỗ trợ thông qua tư vấn bên ngoài nhằm sửa
đổi Sổ tay tín dụng tiết kiệm của Quỹ, xây dựng
kế hoạch hoạt động kinh doanh cũng như các hỗ
trợ khác phục vụ công tác nâng cao năng lực theo
như yêu cầu của BQLDA tỉnh Provision of
technical support for PWU including external
consultancy supports to revise the Fund Manual,
to develope a Fund Business Plan, and support as
required from PPMU for capacity building.
DBRP
Recruited consultancy supports to revise the Fund Manual
As per recommendations in sub-component 2.1,
project will support province to strengthen the
district VCTFs to be able to coordinate market
oriented BDS service in province and district
level, including for CIGs;
PPMU, PPC
Organized training courses for private business
households, households provide extension services, district
CIGs staff, staff in Farmers' Union and Women's Union.
Theses teams can support the CIGs in the project
communes.
Project will allocate resources to district VCTFs
to manage implementation of basic market and
business/investment plan coaching to CIGs;
PPMU, VCTFs
Signed contract with district CIGs staff to support CIGs
using hands-on approach
62
District VCTFs will identify potential CIG
markets and good enterprise partnership models
and (using the existing CIG training manuals and
provincial trainer cadre) coordinate support to all
CIGs with the aim of upgrading class 3 and 2
CIGs to class 1 and class 1 CIGs to cooperative
groups or cooperatives;
DPMOs, VC taskforce,
DARD, DoIT
According to result of classification CIGs in Quater I
2014, CIGs in class 1: 212; class 2: 135, class 3: 128.
(June 2013: class 1: 166, class 2: 156, class 3: 129; in
2012: class 1: 125, class 2: 209, class 3: 135).
Up to now, 02 cooperatives are established and operate;
the project tries to support to establish 1-2 cooperatives in
the res
Project will support the province and districts to
decide how to include CIG development in
strategies to promote agricultural commodities
production;
PPMU, PPC, DPCs
Ongoing to carry out CIGs development plan in each
district based on potential commodities production;
In response to decision on provincial CIG
development, project will continue building
capacity of a group of local CIG trainers.
PPMU
Organised training courses on strengthening capacity for
group of local CIG annually
The DPI shall take the lead role in preparation a
roadmap, and coordination of financial and
human
resources
for
up-scaling
and
institutionalization of the participatory SEDP
planning process with supports from DBRP, LD
VIE/029, PSARD
DPI,
PPMU,
VIE/012, PSARD
LD
The DPI shall organize an workshop for reviews
and revisions of the SEDP manual before
submission for PPC’s approval for application in
all project and none project communes.
DPI,
PPMU,
VIE/029, PSARD
LD
The DPI submitted to PPC the Decision No.868/SKHĐTKTĐN dated on 17 October 2013 on increasing expense
for communes, wards, towns in making SEDP annually.
And PPC approved as the Decision No. 3013/UBND-TM
dated on 18 October 2013
DPI is implementing with support of PS - ARD
Provide instructions and supports to CMBs on
preparation of payment requests and liquidation
dossiers for completed CIF civil works in order to
speeding up CIF payment and liquidation.
PPMU, DPMOs
Supported CDB to completed payment requests and
liquidation dossiers for completed CIF civil works.
For small-scale works, trained on hands-on approach to
support CDBs complete CIF payment and liquidation
documents.
Review and revise the manual for financial
management of O&M activities for CIF civil
works with focus on (i) effectiveness and
sustainability of O&M fund and O&M groups
should be assessed with aim of introducing
improvements;
(ii)
mobilizing
labour
contributions from benefiting groups (instead of
paid labours) for O&M activities as current
practices; (iii) development of O&M regulations
by benefiting groups at village level.
PPMU, LD VIE/029,
DPMOs,
district
planning & financial
sections,
District
industrial and trade
sections
Ongoing. The training course will be organised for district
and commune staff in May 2014 in order to strengthen
capacity on O&M effectively and sustainably.
Prepare and submit to IFAD for approval before
implementation of a supplemental plan for
additional CIF civil works using the remaining
90% CIF.
PPMU, DPMOs, CDBs
Submitted to IFAD and PPC for appoval the project
implementation plan.
Organize training courses to DPC and CPC staffs
on result-based management and transfer the
M&E system for application under the New Rural
Development Programme
BPPMU, LD VIE029,
NTP-NRD office
Organized the training courses to the heads and staff of
Financial-Planning Unit, chairmen of districts, staff of 50
project communes with the participation of 100 people, 25
women.
63
Điều chỉnh kế hoạch công tác và ngân sách năm
của tỉnh và huyện nhằm đảm bảo lồng ghép các
kế hoạch phát triển chuỗi giá trị tại cấp huyện,
phối hợp với các hoạt động của Sở NN thuộc tiểu
hợp phần 2.2 và các hoạt động thực hiện, sử dụng
10% quỹ CIF Revise the AWPBs at the province
and district levels to ensure integration with the
district value chain plans and coordination among
the DARD’s activities under subcomponent 2.2
and the activities supported by the 10% of CIF
PPMU, DPMOs
Revised the AWPB after the 2013 SM then submitted to
IFAD and approved by PPC, the approval of PPC on
mainstream activites among value chains were shown in
2014 AWPB
Frequently revise the project budget allocation at
all management levels to increase funds for the
successful activities such as the women’s saving
and credit groups and the force-account smallscale infrastructure schemes. Ensure full budget
delivery by end of the project.
PSC, PPMU
The 2013 AWPB was adjusted, the 2014 AWPB was
submitted to IFAD for adoption and submitted to the PPC
for approval was presented in the plan for 2014
Fully inform the CDBs about their remaining
CIFs allocation to enable them to develop proper
plans for utilization of the 10% of CIF for
trainings to CIGs and poor farmers. Cut off
allocations to non-performing communes if
needed
PSC, PPMU
Providing detailed plan for communes level pursuant to
the Decision No. 202/QD-DBRP dated on 24 October
2013 and the Decision No.12/QD-DBRP dated on 24
January 2014
Revise the indicators in the log frame to remove
irrelevant indicators or adjust the target for some
indicators
PPMU
Removed irrelevant indicators and adjusted the target for
some indicators in Log frame.
Implement the SM 2012 recommendation on
gender training
DBRP
Done in July 2013 with the participation of 90 people, 20
females
Review the disbursed fund for activities and
evaluate the feasibility of disbursing the
remaining amount in each category; make
proposals on funds reallocation between
categories and submit to IFAD for consideration
and approval.
PPMU
Reviewed the disbursed fund in each category. The 2014
AWPB was submitted to IFAD for adoption and submitted
to the PPC for approval was presented in the plan for 2014
Allocate the remaining budget for each CDB
PPMU
Allocated detail AWPB for CDBs under the Decision No.
202/QĐ-DBRP dated on 24 October 2013 and the
Decision No. 12/QĐ-DBRP dated on 24 January 2014
PPMU, DPMOs, CDBs
- Because of budget shortage, Payment process for
completed works was quite slow.
- List of assets formed by project investment have not
consolidated due to lack of budget and the assets formed
by CIF have not promptly recognized
- Prepare the settlement of completed projects
Check and build up capacity of CDBs in term of
accounting; focus on work in preparation for
project closing; give specific instructions on
handover related to accounting and financial
aspects when there is any turnover of accounting
staff
PPMU, DPMOs, CDBs
- The alternative accountants are guided detailedly and
have not gotten stuck in the process of project settlement.
'-Training on accounting forms, settlement processes in
December 2013 with the participation of 60 people, 45
women.
Update the exit strategy with the mission’s agreed
actions and submit for PPC approval
PPMU
Done. The exit stratergy was issued under the Decision
No.1272/QĐ-UBND dated on 23 Agust 2013 by PPC
Speed up checking and approval of project
payment settlement; Consolidate a list of assets
formed by project investment from different
sources: procurement by PPMU, using CIF
funding to enable management and project
completion settlement.
64
PPMU should advocate for PPC’s commitment in
allocating resources for rolling out the planning
process province-wide starting with the 2014
planning PPMU
PPC issused the Decision No.3013/UBND-TM dated on
18 October 2013 on increasing expense for wards,
communes and towns on innovating SEDP with the
following contents: 1. From 2014, make a regular expense
on monitoring, steering and evaluating SEDP annually for
commune level with cost norm 5.000.000VND/year; 2.
Provide district level with training on making annual plan
for commune level from annual training fund of province
level budget with cost norm for each commune is
2.000.000 VND/year
PPMU
65
Appendix 8: Work schedule and list of people met by the SM 2013
16 April
17 April
18 April
Travel to Cao Bang
Meeting with PPMU and different line agencies
Meeting with line agencies: Department of Trade and
Industry, PS – ARD, DPI, DARD, Ethnic
Affairs, Provincial Women' Union, Provincial Farmers'
Union, VBARD
Field visit to Ha Quang & Phuc Hoa districts
Field visit to Nguyen Binh & Trung Khanh districts.
Meeting with line agencies: Tam Hoa cooperatives,
Green Food Limited Company, Provincial Women' Union
Report witting
Information working sesion with the PPMU
Finalization of report and Formal wrap up and Return to
Hanoi
19 April
20 April
21 April
22 – 23 April
24 April
25 April
PPMU & VIE/029
No
Name
Position
Unit
1
Phuong Tien Tan
Project Director
PPMU
2
Lam Duy Tang
Head of Planning Department
PPMU
3
Hoang Van Huy
PPMU
4
Bui Thi Que
Deputy Head of Planning Department
PPMU
5
Nguyen Van Bao
Infrastructure staff
PPMU
6
Vu Trong Tuyen
Community Facilitator
PPMU
7
Trinh Thanh Tu
CIG staff
PPMU
8
Hoang Van Thuan
PPMU
9
Duong Tuan Viet
PPMU
10
Chu The Giang
PPMU
11
Hoang Thi Hong Mai
Marketing and Value Chain
Development Officer
PPMU
12
Luu Quyet Thang
Development Officer
PPMU
13
Phuong Tien Manh
KMO staff
PPMU
14
Nguyen Thi Huyen Trang
PPMU
15
Nguyen Thi Xuan
Chief Accountant
PPMU
16
Hoang Thi Hue
Accountant
PPMU
17
Do Thi Minh Tam
Deputy Head of Accounting
Department
PPMU
18
Nguyen Thi Trang
Accountant
PPMU
19
Nong Thi Lan Chi
Accountant
PPMU
66
20
Ha Vinh An
Accountant
PPMU
21
Ha Thi Phuong
Administrator
PPMU
22
Nong Thi Hieu
Administrator
PPMU
23
Peter Heeres
CTA
VIE 029
24
Nguyen Thi Phuong
Interpreter
VIE 029
25
Nguyen Thi Chau
Value Chain Expert
VIE 029
26
Nguyen Thi Hue
&E and KMO Expert
VIE 029
27
Doan Manh Tuong
Infrastructure Expert
VIE 029
28
Vu Van Quyen
VIE 029
TRUNG KHANH DISTRICT
Than Giap commune, Trung Khanh district
List of staff at all provincial, district, and communal levels
No
Name
Position
Unit
1
Phuong Tien Tan
Project Director
PPMU
2
Hoang Van Huy
PPMU
3
Nguyen Thi Xuan
Chief Accountant
PPMU
4
Nguyen Van Bao
PPMU
5
Vu Trong Tuyen
PPMU
6
Trinh Thanh Tu
CIG staff
PPMU
7
Doan Manh Tuong
Vie/029
8
Mong Van Luc
Vice Chairman
DPC
9
Be Thi Bang
Head
District Financial- Planning Department
10
Hoang Van Tam
Chairman
Farmer Union
11
Hoang Thi Bich Huong
Chairman
Women Union
12
Ma Thi Oanh
Vice Director
District State Treasury
13
Mong Ha Hieu
Head of credit Section
District VBARD
14
Nong Minh Hoat
Staff
District VBARD
15
Dinh Manh Thang
Manager
DPMO
16
Hoang Van Thuyen
Staff
District Department of Industry and Trade
17
Dinh Thanh Tam
CIG Staff
DPMO
18
Hoang Thi Lieu
Marketing Officer
DPMO
19
Nong Van Cuong
Chairman of Party Communal
Secretary
Than Giap CDB
20
Hoang Van Ray
Vice Chairman of Party Communal
Secretary
Than Giap CDB
21
Luong Van Cuon
Chairman, Head of CDB
Than Giap CDB
22
Luong Van Hien
Vice Chairman of FU, member of
CDB
Than Giap CDB
23
Nong Thi Vinh
Chairman of Fatherland Front
Committee,
Than Giap CDB
24
Trieu Thi Bay
Chairman of WU, member of CDB
Than Giap CDB
67
25
Le Thi Huyen
Accountant
Than Giap CDB
26
Hoang Van Quynh
Household borrows Agribank loan
Than Giap CDB
27
Nong Van An
Household borrows Agribank loan
Than Giap CDB
PHUC HOA DISTRICT
Trieu Au commune, Phuc Hoa district
No
Name
Position
Unit
1
Phuong Tien Tan
Project Director
PPMU
2
Nguyen Van Bao
PPMU
3
Ha Vinh An
Accountant
PPMU
4
M&E staff
PPMU
5
Dao Nguyen Phong
Vice Chairman
DPC
6
Pham Thi Ngo
Manager
DPMO
7
Luu Dai Xuan
District M&E staff
DPMO
8
Dam Quoc The
District CIGs staff
DPMO
9
Ha Thi Thoa
District Marketing Officer
DPMO
10
Luu Quyet Thang
Marketing Officer
PPMU
11
Doan Manh Tuong
VIE 029
12
Truong Thi Lieu
Deputy Head
District Apricultural Department
13
Hoang Luong Minh
DPMO
14
Long Thi Yen
Staff
Company of Sugar Production
15
Hua Ngoc Diep
Staff
Company of Sugar Production
16
Be Van Van
Head of CDB
17
Hoang Ky Hiep
M&E and Marketting Officer
18
Hua Van Dam
CIG taskforce
19
Luong Van Buu
CIG taskforce
20
Ly Thi Minh
Accountant
21
Luc Van long
Leader of CIG
List of CIG members
1
Trieu Van Phong
Group Leader
Khum Thuong village, Trieu Au commune
2
Trieu Van Minh
Member
3
Trieu Van Tuong
secretary
4
Ly Van Thai
Group Deputy Leader
5
Ly Thi Thu
Cashier
6
Nong Thi Lieu
Cashier
7
Nong Thi Thao
Member
8
Nong Van Dim
Member
9
Luc Thi Hien
Member
10
Ly Thi Giong
Member
11
Ly Ky Huong
Member
12
Nong Van Y
Member
13
Trieu Van Kinh
Member
68
14
Hua Van Van
Member
15
Hua Van Bang
Member
16
Hua Van Dong
Member
17
Le Chi Nguyen
Member
18
Le Van Long
Member
19
Trieu Van Tuong
Member
20
Nong Van Thang
Member
21
Trieu Van Danh
Member
22
Hua Van Tinh
Member
23
Mong Thi Lanh
Member
24
Trieu Van Canh
Member
25
Hua Van Hieu
Member
NGUYEN BINH DISTRICT
Thai Hoc & Thanh Cong communes, Nguyen Binh district
No
Name
Position
Unit
4
Peter Heeres
CTA
VIE 029
5
Nguyen Thi Phuong
Interpreter
VIE 029
6
Nguyen My Chau
Value chain expert
VIE 029
7
Lam Duy Tang
Development Officer
PPMU
8
Hoang Thi Hong Mai
Development Officer
PPMU
9
Bui Thi Que
PPMU
10
M&E
PPMU
11
Hoang Van Thuan
PPMU
12
Duong Tuan Viet
PPMU
13
Nong The Phuc
Vice chairman
DPC
14
Ngon Thi Vuong
Deputy Head
District Financial-Planning Department
15
Ma Thi Mui
Vice Director
District State Treasury
16
Trieu Thi Loan
Chairman
Women Union
17
Hua Van Dung
Chairman
Farmer Union
18
Hoang Thi Hoa
Manager
DPMO
19
Luong Thi Huong
Accountant
DPMO
20
Doan Thi Lau
M&E staff
DPMO
21
Ma Van Vung
Marketing Officer
DPMO
22
Nhan Van Khien
CIG staff
DPMO
Thai Hoc commune
11
Dang Phuc Nan
Head of CDB
Thai Hoc commune
12
Dinh Thi Nhung
Vice Chairman
Thai Hoc commune
13
Trieu Ton Sinh
Vice Chairman of Council of People
Thai Hoc commune
69
14
Dang Van Son
Culture and Society staff
Thai Hoc commune
15
Dinh Thi Phuong
Judicial officers
Thai Hoc commune
16
Ban Mui Lieu
Vice Chairman of WU- Deputy Head
of CDB
Thai Hoc commune
17
Luong Tan Cuong
Administrator
Thai Hoc commune
18
Ma Thi Uyen
Land officer
Thai Hoc commune
19
Nong Thi Thuy
Accountant
Thai Hoc commune
20
Dang Van Quyen
Secretary
Thai Hoc commune
21
Trieu Ton U
Extension staff,
Thai Hoc commune
Thanh Cong commune
1
Du Van Diu
Head of CDB
Thanh Cong commune
2
Hoang Thi Can
Deputy Head of CDB
Thanh Cong commune
3
Ly Ngoc Quyen
CIG member
Thanh Cong commune
4
Du Thi Say
Leader of Grass noolde CIG
Thanh Cong commune
5
Truong Thi Nhung
Grass noodle CIG member
Thanh Cong commune
6
Ma Thi Huong
Deputy Leader of Grass noodle CIG
Thanh Cong commune
7
Truong Thi Tao
Thanh Cong commune
8
Vuong Thi Hong
Thanh Cong commune
9
Du Thi Phong
Tea CIG member
Thanh Cong commune
10
Ca Thi Doi
Tea CIG member
Thanh Cong commune
11
Dinh Vinh Bao
Tea CIG member
Thanh Cong commune
HA QUANG DISTRICT
Quy Quan commune, Ha Quang district
No
Name
Position
Unit
1
Peter Heeres
CTA
VIE 029
2
Nguyen Thi Phuong
Interpreter
VIE 029
3
Nguyen My Chau
Value Chain expert
VIE 029
4
Lam Duy Tang
PPMU
5
Trinh Thanh Tu
CIG staff
PPMU
6
Hoang Thi Hong Mai
Martketting Officer
PPMU
7
Bui Thi Que
PPMU
8
Hoang Van Huy
M&E
PPMU
9
Hoang Van Thuan
PPMU
10
Vuong Van Vo
Vice Chảiman
DPC
11
Tran Thi Hang
Head of Section
District Agricultural Section
12
Be Van Tung
Head of Station
Extension Station
13
Vu Tien Dinh
Manager
DPMO
14
Dam Van Phu
M&E
DPMO
15
Trinh Van Thang
Planning staff
DPMO
70
16
Nong Van Vuong
Martketting Officer
DPMO
17
Sam Thanh Tuyen
CIG staff
DPMO
18
Be Thi Chien
Accountant
DPMO
Quy Quan commune
1
Trieu Viet Cuong
Head of CDB
Quy Quan commune
2
Lanh Thi Thuyet
Vice Chairman of WU- Deputy Head
of CDB
Quy Quan commune
3
Hoang Van Dao
Chairman of FW - CDB Member
Quy Quan commune
4
Hoang Van Xoan
Accountant
Quy Quan commune
5
Vi Thi Hop
Extension staff
Quy Quan commune
6
Dam Thi Men
Secretary
Quy Quan commune
7
Trieu Duc Thong
Chairman of Fatherland Front
Committee,
Quy Quan commune
8
Hoang Van Truong
Vice chairman of FU
Quy Quan commune
9
La Thi Dau
Breeding pig cooperatives
Quy Quan commune
10
Nong Thi Phuong
Quy Quan commune
11
Trieu Thi Hoa
Quy Quan commune
12
Nong Thi Dong
Quy Quan commune
13
Nong Thi Hien
Quy Quan commune
14
Le Thi Thien
Quy Quan commune
15
La Thi Nghiep
Quy Quan commune
Hong Sy commune
1
Truong Van Phoong
Head of CDB
Hong Sy commune
2
Trieu Van Thuan
Deputy Head of CDB
Hong Sy commune
3
Be Thi Tam
Martketting Officer
Hong Sy commune
4
Hoang Van Mau
M&E staff
Hong Sy commune
5
Hoang Van Sy
CDB member
Hong Sy commune
6
Hoang Van Quan
Leader of CIG
Tong Tai village, Hong Sy commune
7
Lau Van Hong
Leader of CIG
Lung Dan village, Hong Sy commune
PROVINCIAL LINE AGENCIES
No
Name
Position
Unit
Department of Trade and Industry, 18 April, 2014
1
Nguyen Thanh Tung
IFAD Country Program Officer/
Institutional Management Specialist,
IFAD
2
Sauli Hurri
Value chain expert
IFAD
3
Ma Huu Khoe
Director
Department of Trade and Industry
4
Duong Thanh Chung
Department of Commercial
Management
5
Luong Ngoc Minh
Trade promotion Center
6
Lam Duy Tang
PPMU
71
7
Hoang Thi Hong Mai
Development Officer
PPMU
8
Luu Quyet Thang
Development Officer
PPMU
9
Nguyen My Chau
Value chain expert
VIE 029
PS - ARD: 18 April, 2014
1
Trieu Duc Hoat
Director
PSARD
2
Tham Thi Loan
Staff
PSARD
3
Nguyen Ba Cuong
Staff
PSARD
4
Phan Duy Toàn
Procurement Infrastructure Specialist
IFAD
5
Phuong Tien Tan
Director
DBRP
6
Bui Thi Que
DBRP
DPI, 18 April, 2014
1
Doan Duc Diep
International Economic Relations Unit
DPI
2
Phan Duy Toan
Procurement Infrastructure Specialist
IFAD
3
Bui Thi Que
DBRP
DARD, 18 April, 2014
1
Nguyen Thanh Tung
Expert
IFAD
2
Sauli Hurri
Expert
IFAD
3
Nguyen Ngoc Quang
Expert
IFAD
4
Ngo Thi Thanh Van
Expert
IFAD
5
Hoang Thai
Director
DARD
6
Luc Duc Xuan
Deputy Head
Veterinary Department
7
Hoang Thuy Ngan
Deputy Head
Chi cục BVTV
8
Nguyen Duc Hanh
Head of Extension Station
Plant Protection Department
9
Dam Nham
Deputy Head
Rural Development Department
10
Hoang Kim Trong
Staff
DARD
11
Hoang Van Trinh
Deputy Head of Department of
cultivating
DARD
12
Nguyen Van Tru
Head of Department of Breeding
DARD
13
Phuong Tien Tan
Director
PPMU
14
Lam Duy Tang
PPMU
15
Hoang Thi Hong Mai
Marketting Officer
PPMU
16
Nguyen Thi Phuong
Interpreter
VIE 029
17
Nguyen My Chau
Value chain expert
VIE 029
18
Peter Heeres
CTA
VIE 029
Ethnic Affairs, 18 April 2014
1
Nguyen Ngoc Quang
Expert
IFAD
2
Phan Duy Toan
Expert
IFAD
72
3
Hoang Van Huy
M&E staff
PPMU
4
Mac Van Nheo
Chairman
Ethnic Affairs
5
Le Duc Thuy
Office Manager
Ethnic Affairs
Provincial Women' Union, 18 April, 2014
1
Nguyen Thanh Tung
Expert
IFAD
2
Sauli Hurri
Expert
IFAD
3
Ngo Thi Thanh Van
Expert
IFAD
4
Nguyen Thi Phuong
Interpreter
VIE 029
5
Nguyen My Chau
Value chain expert
VIE 029
6
Peter Heeres
CTA
VIE 029
7
Trinh Thanh Tu
CIG staff
PPMU
8
Hua Thi Hau
Vice Chairman
PWU
9
Ly Thi Trieu
Head of women support in economic
development
PWU
10
Trieu Thi Huong
Staff
PWU
11
Hoang Thi Nga
Staff
PWU
21 April, 2014
1
Nguyen Thuy Anh
Chairman
PWU
2
Ngo Thi Thanh Van
Expert
IFAD
3
Trinh Thanh Tu
CIG staff
PPMU
Provincial Farmers' Union, 18 April 2014
1
Nguyen Ngoc Truan
Vice Chairman
PFU
2
Truong Thi Minh Anh
Head of Propaganda department
PFU
3
Trieu Thi Ngoc Thu
Staff of propaganda department
PFU
4
Dam Vu Khoa
Staff
PFU
5
Ly Thi Vien
Accountant
PFU
6
Sauli Hurri
Expert
IFAD
7
Ngo Thi Thanh Van
Expert
IFAD
8
Nguyen Thi Hue
M&E
VIE 029
9
Trinh Thanh Tu
CIG staff
PPMU
VBARD, 18 April, 2014
1
Linh Duc Hoang
Director
VBARD
2
Le Thi Kieu Van
VBARD
3
Nguyen Hai Yen
Staff
VBARD
4
Ngo Thi Thanh Van
Expert
IFAD
5
Peter Heeres
CTA
VIE 029
6
Lam Duy Tang
PPMU
7
Trinh Thanh Tu
CIG staff
PPMU
8
Nguyen Thi Phuong
Interpreter
VIE 029
Tam Hoa cooperatives, 21 April 2014
1
Tâm Hòa
2
Sauli Hurri
Expert
IFAD
4
Peter Heeres
CTA
VIE 029
3
Lam Duy Tang
PPMU
73
Green Food Limited Company, 21 April 2014
1
Nguyen Thi Oanh
Director
2
Sauli Hurri
Expert
IFAD
3
Lam Duy Tang
PPMU
4
Peter Heeres
CTA
VIE 029
Slaughtering house of Mr Ngan, 21 April 2014
1
Hoang Ngan
Owner
2
Sauli Hurri
Expert
IFAD
3
Lam Duy Tang
PPMU
4
Peter Heeres
CTA
VIE 029
74
Appendix 9: Audit Log
a)
Financial
Year
1. Summary Audit Table
Audit Observations as per
Audit Report
Number
Sl.
No.
Value
(VND)
Audit Observations
Outstanding
Audit Observations Settled
Number
Value
(VND)
Number
2008
5
5
0
2009
3
2
1
2010
5
5
0
2011
6
6
0
2012
4
3
1
Total
23
21
2
b)
Note: audit on the FS 2013 has not been done.
c)
2. Detailed Audit Table
Class:
Audit
Serious/
Ref.
general
Financial
year
Audit observations
Total Amount
per
Observation
Value
(VND)
Action taken by the
project /PMU(Reply of para
wise)
2008
Inconsistencies in vouchers
Fixed
2008
Accounting regimen used is
inappropriate
Fixed
75
Present status
(Auditors
Validation
Result)
Total amount
not settled/
outstanding
Remarks
Sl.
No.
Financial
year
2008
2008
2008
2009
2009
2009
2010
2010
2010
2010
2010
2011
Class:
Serious/
general
Audit
Ref.
Audit observations
Total Amount
per
Observation
PPMU has no specific accounting
treatment by for each kind of
debtors individually.
Some material, tools to be
purchased by PPMU found with no
inward stock note and outward
stock note
Construction insurance for PPMU's
office site has not been taken by
PPMU
The internal control system was not
evaluated and the internal controls
have yet to adequately
implemented
Cash counting was not
implemented at the end of month
and year in some districts and
communes.
The accounting regimen and
software has not been changed
Cash on hand as at 31 December
below establish minimum threshold
of VND 20 million
Advance and clearance of
advances not adequately
supported by documentation.
Cost norm were based on older
regulation rather than updated
regulations
Project failed to obtain relevant tax
invoice for the infrastructure
schemes
Fixed asset increase date in subledger is inconsistent with asset
hand over minutes
Preparation of financial statements:
At the time of auditing the
Action taken by the
wise)
Present status
(Auditors
Validation
Result)
Fixed
Fixed
Fixed
Doing better
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
76
but not fully fixed
Total amount
not settled/
outstanding
Remarks
Sl.
No.
Financial
year
Class:
Serious/
general
2011
2011
2011
2011
2011
2012
General
2012
General
2012
General
2012
General
Audit
Ref.
Audit observations
preparation and confirmation had
not been obtained
Balance of fund provided to
DPMUs and CDBs presents high
amount, and not been disbursed or
brought
to
state
treasury
department for review
Balance of advances to employees
is high. The advance liquidation is
not complied with PIM timely
Contract
management
and
implementation of retaining 5% for
guarantee period
Without compliance and consistent
application of cost norms
Cash management in DPMUs and
CDBs without cash counting at the
end of month
PPMU failed to withold personal
income tax for payments made to
lecturers, reporters of project
activities above from VND 1 million
each
PPMU failed to collect all the
necessary supporting documents
for expenditure inccured related to
CIF
PPMU has not recorded the
increase in construction in progress
and the decrease in the advance
Duc Hong CDB (Trung Khanh
District) need improve its asset
management to prevent from loss
and it is required to all the
suporting documents related to CIF
Total Amount
per
Observation
Action taken by the
wise)
Present status
(Auditors
Validation
Result)
Total amount
not settled/
outstanding
Fixed
Fixed
Fixed
Fixed
Fixed
VND 2,000,000
Fixed
Oustanding
VND
349,353,000
Performed
Performed
77
Settled
Partly
outstanding
Remarks

Supervision mission, April 2014

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