Thông tư 03/2003/TT-BKH của Bộ Kế hoạch và Đầu tư hướng dẫn công tác giám sát, đánh giá đầu tư

CIRCULAR

GUIDING THE INVESTMENT- SUPERVISING AND -EVALUATING WORK

Pursuant to Clause 10, Article 1 of the Government’s Decree No. 07/2003/ND-CP of January 30, 2003 (referred to as Decree No. 07/CP for short) on amending and supplementing a number of articles of the Government’s Decree No. 52/1999/ND-CP of July 8, 1999 promulgating the Regulation on investment and construction management and the Government’s Decree No. 12/2000/ND-CP of May 5, 2000 amending and supplementing a number of articles of Decree No. 52/CP (referred to as Decree No. 52/CP and Decree No. 12/CP for short);

Pursuant to the Government’s Decree No. 75/CP of November 1, 1995 defining the functions, tasks, powers and organizational structure of the Ministry of Planning and Investment;

The Ministry of Planning and Investment issues the Circular guiding the investment-supervising and -evaluating work as follows:

Part I

GENERAL PROVISIONS

1. Investment-supervising and -evaluating activities

Investment supervision and evaluation means activities of overseeing, examining and determining the extent of attainment against the requirements of the investment process, which are conducted by competent State agencies in order to perform their function of State management over investment with a view to ensuring that investment be highly efficient and compliant with the development objectives and orientations of the whole country, each branch, domain, region, locality and each investment project.

Investment supervision and evaluation comprise:

- Overall investment supervision and evaluation.

Overall investment supervision means the oversight and examination of the process of investment execution by various branches and localities at all levels; the timely detection and redress of wrong-doings and mistakes so as to ensure that investment comply with plannings, plans and objectives and be efficient.

Overall investment evaluation means the reflection of the situation, the analysis and evaluation of investment results of the economy, branches or localities; the determination of the extent of attainment against plannings and plans in each period or each stage; the analysis of causes affecting the investment results as well as the putting forward of measures to raise investment efficiency in the subsequent period or plan stage.

- Supervision and evaluation of investment projects.

Supervision of investment projects means the regular oversight and examination of the projects’ investment process to ensure its compliance with the regulations on investment and construction management, and the projects’ objectives and efficiency.

Evaluation of investment projects means the analysis and determination of the extent of attainment according to each specific norm compared with the project investment decisions or the State-prescribed evaluation criteria at a given time.

2. Scope and objects of investment supervision and evaluation

a/ Objects of overall investment supervision and evaluation are investment activities of all economic sectors in the economy, of each economic branch or domain, each locality or territory.

b/ Objects of supervision and evaluation of investment projects are investment projects and programs (hereinafter referred to collectively as investment projects) prescribed in the Regulation on investment and construction management, promulgated together with Decree No. 52/CP.

Supervision and evaluation of investment projects shall concentrate first of all on projects within public investment programs, projects financed with the State budget capital (central and local), the State’s development investment credit capital, the State-guaranteed credit capital or the State capital in enterprises.

3. Purposes of investment supervision and evaluation

The purposes of investment supervision and evaluation are:

- To ensure that investment activities in general and projects in particular bring about high socio-economic benefits, conform with the socio-economic development objectives and orientations and be carried out within the framework of laws and policies of the State.

- To assist the investment management agencies at all levels in closely grasping and correctly evaluating the investment situation, the results of investment activities, the investment execution progress as well as constraints and difficulties in the investment process so as to work out measures to make appropriate adjustments; to detect and promptly stop wrong-doings and negative acts that cause capital loss and wastage in the investment execution process.

- To assist the policy-making agencies in obtaining factual materials for studying the investment structure and investment promotion policies for each period.

4. Requirements on investment supervision and evaluation

The investment-supervising and -evaluating agencies and units must satisfy the following requirements:

- Regularly supervising the investment process; ensuring uniform and close coordination among various branches and levels.

- Fully, promptly, honestly and objectively reflecting the contents of investment supervision and evaluation.

- Making timely, specific and feasible proposals and recommendations.

5. Specific tasks of investment supervision and evaluation

a/ Regularly supervision and supervising the investment process on the basis of:

- Databases on investment activities, which are available at investment-supervising agencies;

- Periodical and updated reports (made according to set forms);

- Field inspection activities (planned or when necessary).

b/ Investment evaluation includes:

- Overall evaluation of investment management;

- Evaluation of the realization of investment objectives (compliance with plannings, conformity with development objectives);

- Evaluation of the level of completion (according to approved plans or schedules);

- Evaluation of investment efficiency (relationship between investment costs and benefits).

The results of the investment-supervising and
-evaluating processes are presented in the following reports:

- Reports on overall investment supervision and evaluation in the whole country;

- Reports on overall investment supervision and evaluation by branch, region or locality;

- Reports on supervision and evaluation of investment projects according to different stages of the investment process (investment preparation, project implementation and putting of projects into operation).

Part II

CONTENTS OF INVESTMENT SUPERVISION AND EVALUATION

1. Overall investment evaluation:

Overall investment evaluation includes;

a/ Overall investment evaluation of the economy, branches, localities and territories:

- Summing up, analyzing and evaluating the investment situation and results of the economy, branches and localities according to the indexes indicating the investment size, speed, structure, progress and efficiency.

- Evaluating the extent of attainment against the approved plannings, the plan tasks or that of the previous period.

- Identifying factors and causes that affect the investment situation and results; proposing measures to raise investment efficiency in the subsequent period or plan stage; appraising the feasibility of the approved plannings and plans.

The overall investment evaluation of the whole economy shall be conducted by the Ministry of Planning and Investment in coordination with other ministries and general branches on an annual and five-year basis or at the Government’s request.

The overall investment evaluation of branches or localities shall be conducted by the branch-managing ministries or the provincial-level People’s Committees annually and in each plan period (usually five years).

b/ Overall evaluation of investment management:

Overall evaluation of investment management aims to evaluate the implementation of the investment management regulations by the ministries, branches and localities; to detect wrong-doings and problems so as to promptly redress investment activities at these ministries, branches and localities and adopt mechanisms and policies in time to suit the practical situation, including:

- Evaluation of the implementation by the ministries, localities and levels of:

+ The regulations on the investment preparation work: The order of elaborating, examining, evaluating and approving investment projects; the compatibility with the State’s strategies, plannings and plans in the issuance of investment decisions;

+ The regulations on the investment execution process: Land management and use, ground clearance and compensation, mobilization of various capital sources, order of capital construction (making and approval of designs, total cost estimates…), organization of bidding, and other specific regulations on the implementation of investment projects.

- Analysis of reasons for the proper as well as improper implementation of the Investment Management Regulation by the ministries, branches and localities. Identification of matters not suitable to the practical situation and proposal of remedies, including amendments and supplements to the current regulations.

Overall supervision and evaluation of investment management shall be conducted by the branch-managing ministries and the provincial-level People’s Committees once every six months.

2. Supervision and evaluation of investment projects

Supervision and evaluation of investment projects according to different stages include:

2.1. Supervision of investment preparation:

Supervision of investment preparation means the oversight and examination by the superior management agencies of their subordinates regarding the process of investment preparation and investment decision-making of projects. Supervision and evaluation of investment preparation shall be conducted in the process of project research, survey and elaboration till the issuance of investment decisions, comprising the following contents:

- Examining the observance of law provisions in the investment preparation (project elaboration, verification, evaluation and approval); checking the contents of investment decisions under the provisions in Article 30 of Decree No. 52/CP; evaluating the compliance of investment decisions with the investment planning, plans and programs of the branches or localities; competence to and order of issuing investment decisions to the projects.

For projects using the capital under the ownership of enterprises and the capital mobilized by enterprises, they shall be considered and evaluated only in terms of their investment decisions’ compatibility with the branches’ or localities’ plannings.

- Overall evaluation of the feasibility of investment decisions according to the projects’ principal elements (objectives, size, technology, progress, capital, capital sources, environment and efficiency of investment); identification of contradictions (if any) between investment decisions and projects’ contents.

For projects using the capital under the ownership of enterprises and the capital sources mobilized by enterprises, they shall be considered and evaluated only in terms of their objectives, size and environmental protection).

- Evaluation of the investors’ capabilities (financial capability, professional capability and project management experiences).

2.2. Supervision and evaluation of the process of implementation of investment projects

Supervision and evaluation of the process of implementation of investment projects mean the oversight, examination and determination of the extent of attainment of the project implementation process under the investment decisions.

The supervision and evaluation of the project implementation process cover the following contents:

- Regularly overseeing and examining the project implementation process, regarding:

+ The observance of the regulations on the elaboration, evaluation and approval of designs, total cost estimates and estimates, bidding; conditions for construction commencement,…

+ The projects’ capital mobilization and use plans; payment in the project implementation process.

+ The implementation of the project schedules, the project management organization; requirements on environmental protection.

- Examining the application and implementation of policies and mechanisms prescribed by the State, branches or localities for the projects.

- Evaluating the capacity of the project management boards by the selected investment execution modes.

- Assessing the extent of attainment of major norms (volume, progress, quality and capital disbursement), environmental and social impacts in the investment execution process.

- Through overseeing, examining and evaluating the project implementation process, detecting newly arising matters (changes in designs, cost estimates, capital sources, other conditions for project implementation), wrong-doings or irrationalities, difficulties and problems related to mechanisms and policies, which need to be tackled.

- Putting forward solutions and recommendations to persons competent to decide on investment or concerned agencies for consideration and settlement so as to keep to the investment schedule.

For projects using the capital mobilized by enterprises and capital of other sources, the supervision and evaluation of investment execution shall cover only the following contents:

+ Examining and evaluating the implementation progress; requirements on environmental protection and land use.

+ Examining the application and observance of policies and regimes prescribed by the State, branches and localities for the projects.

d/ For projects using different capital sources:

For projects using different capital sources, the supervising and evaluating contents shall be compatible with the sources of capital invested in each project item, for cases where capital sources can be separated for each item, or with the source of capital accounting for the largest percentage, for cases where capital sources cannot be separated for each item, or with the management mode applicable to the projects as agreed upon by members, for projects using capital contributed by various sectors.

2.3. Post-implementation evaluation of investment projects:

a/ Evaluation upon completion of the investment process:

Evaluation upon completion of the investment process means the summing up and evaluation of the entire investment execution process in a comprehensive manner, from the stage of preparation to the stage of completion and putting of projects into exploitation or use. The evaluation upon completion of the investment process covers the following contents:

- Comparing the investment execution contents and results with the initial decisions so as to clearly identify deviations and adjust the projects’ elements in the investment execution process.

Evaluation upon completion of the investment process should be conducted in combination with the pre-acceptance test of the works so as to grasp all matters related to the projects, such as assurance of technical standards and norms as well as the quality of works,…

- Appraising the works’ financial settlement and the newly increased value of fixed assets.

- Identifying reasons for newly arising volumes or adjusting designs in the investment execution process; considering legal grounds and technical feasibility as well as expenditures for dealing with matters arising in the project implementation process.

Evaluation upon completion of the investment process of projects must be conducted within 6 months after the projects are completed and put into exploitation and use.

b/ Evaluation of the process of exploitation and operation of projects:

Evaluation of the process of exploitation and operation of projects shall be conducted at an appropriate time like when projects are put into exploitation and use, when they reach their design capacity or when production becomes stable,… The evaluation of the process of exploitation and operation of projects covers the following contents:

- Assessing investment efficiency by comparing costs with results actually obtained in the process of exploitation and operation.

- Analyzing impacts of land use, financial, social and environmental policies, investors’ managerial capabilities on the projects, and of the market fluctuations on the projects’ efficiency.

- Proposing measures to ensure efficient exploitation and operation of projects.

Part III

ORGANIZATION OF IMPLEMENTATION OF INVESTMENT SUPERVISION AND EVALUATION

1. The system of implementation of investment supervision and evaluation

1.1. Ministries, branches and local People’s Committees

a/ The Ministry of Planning and Investment shall assist the Prime Minister in organizing the implementation of overall investment supervision and evaluation; monitor and evaluate important national projects in which investment is decided by the Prime Minister and Group-A projects in which investment is permitted by the Prime Minister.

The Ministry of Planning and Investment shall have the following specific tasks:

- Guiding, supervision and summing up for reporting to the Prime Minister on the work of investment supervision and evaluation nationwide.

- Organizing the overall investment evaluation nationwide according to each plan period or at the Government’s request an summing up the annual overall investment evaluation by the ministries, branches and localities for reporting to the Prime Minister.

- Assuming the prime responsibility and coordinate with the Ministry of Finance, the State Bank, the concerned branch-managing ministries and localities in supervising and evaluating important national projects and Group-A projects in which investment is permitted by the Prime Minister nationwide.

Depending on each specific project, the Ministry of Planning and Investment shall request the concerned ministries, branches and/or localities to send their officials and specialists to participate in supervising and evaluating projects through the setting up of inter-branch working teams.

- Reporting to the Prime Minister on the supervision and evaluation of Group-A projects the implementation of which the Ministry has organized or assumed the prime responsibility for.

- Proposing to the Prime Minister or concerned ministries, branches and localities (according to their competence) the remedies to for problems in investment activities of the branches and localities or for Group-A projects so as to ensure the investment progress and efficiency.

- Considering, giving opinions on or solving matters falling under the Ministry’s functions and tasks when it is so requested by the other ministries, branches, localities and/or investors.

b/ The ministries and general management agencies (the Ministry of Finance, the State Bank, the Ministry of Science and Technology, the Ministry of Natural Resources and Environment) shall have the following specific tasks:

- Coordinating with the Ministry of Planning and Investment in conducting overall investment evaluation at the Government’s request.

- Joining the Ministry of Planning and Investment in supervising and evaluating Group-A projects in which investment is permitted or decided by the Prime Minister in the domains falling under their respective management.

- Settling recommendations made by the ministries, branches, localities and investors on matters falling under their respective functions and tasks.

c/ Specialized managerial ministries shall have the following specific tasks:

- Organizing, and reporting to the Prime Minister on, the overall investment supervision and evaluation within the branches or domains falling under their respective management;

- Organizing the supervision and evaluation of projects falling under their respective deciding competence (including projects which have been decentralized and authorized to subordinate levels for investment decision);

- Coordinating with the Ministry of Planning and Investment in supervising and evaluating Group-A projects in which investment is decided or permitted by the Prime Minister in the domains under their respective management;

- Sending reports to the Prime Minister (and concurrently to the Ministry of Planning and Investment) on the overall investment-supervising and -evaluating work within the branches or domains under their respective management and the supervision and evaluation of investment projects falling under their respective deciding competence according to the prescribed regime.

- Proposing to the Prime Minister or other ministries and branches on matters related to the general investment activities of the ministries or branches and to the projects under their respective management in order to promptly settle difficulties and problems, thus ensuring the investment progress and efficiency;

- Giving opinions on or solving matters falling under the functions and tasks of their ministries or branches when it is so requested by other ministries, branches, localities and/or investors.

d/ The People’s Committees of the provinces and centrally-run cities shall have the following specific tasks:

- Organizing the implementation of, and reporting to the Prime Minister on, the overall supervision and evaluation of investment falling under the scope of management by their respective localities;

- Organizing the supervision and evaluation of projects falling under their respective deciding competence (including projects on which investment decision has been decentralized or authorized to subordinate levels);

- Coordinating with the Ministry of Planning and Investment in supervision and evaluating Group-A projects in which investment is decided or permitted by the Prime Minister in the provinces or cities under their respective management;

- Supervising the implementation of land use plannings and plans and environmental protection of the projects in the provinces or cities;

- Sending reports to the Prime Minister (and concurrently to the Ministry of Planning and Investment) on the work of overall investment supervision and evaluation falling under the scope of their respective management and the supervision and evaluation of investment projects falling under their respective deciding competence according to the prescribed regime.

- Proposing to the Prime Minister or other ministries and branches on matters related to the general investment activities of their localities and to the projects under their respective management in order to promptly solve difficulties and problems, thus ensuring the investment progress and efficiency;

- Giving opinions on, or promptly solving matters related to, ground clearance and land use falling under their functions and tasks when it is so requested by the ministries, branches and/or investors.

1.2. Enterprises and investors:

Enterprises and investors shall have the following tasks:

- Organizing the supervision and evaluation of projects in which investment has been decided by themselves or which fall under their management, and reporting thereon to the superior managing agencies and the investment- supervising State agencies of relevant authorities (ministries, branches or provincial-level People’s Committees).

For Group-A projects, apart from reporting to the investment-deciding authorities, investors must quarterly send reports to their superior managing agencies and the Ministry of Planning and Investment for summing up and reporting to the Prime Minister.

- Promptly detecting and reporting to the authorities competent to decide on investment and the investment-supervising agencies difficulties and problems arising in the process of project implementation and proposing remedies therefor; proposing the persons with investment-deciding competence to adjust projects when necessary.

- Proposing to competent authorities, ministries, branches and localities to solve problems related to the projects under their management so as to ensure investment progress and efficiency.

The project management boards shall organize and conduct the supervision and evaluation of the projects under their management and report to the investors on the work of supervision and evaluating investment projects according to the contents required by the investors and at the same time detect and report promptly to the investors difficulties and problems arising in the process of project implementation and propose remedies therefor.

1.3. Investment-supervising and -evaluating agencies and units

The agencies and units assigned to conduct investment supervision and evaluation and assist the leaderships of the ministries, branches and People’s Committees at all levels in performing the investment supervision and evaluation shall have the following specific tasks:

- Having investment supervision and evaluation plans approved by competent authorities and organizing the performance of investment supervision and evaluation tasks within the ambit of their assigned responsibilities.

- Organizing the system of supplying and storing information on the investment situation in the ministries, branches, localities or projects (for investors) under their management.

- Collecting related reports and information in service of the investment supervision and evaluation according to each prescribed object.

- Considering, analyzing and assessing information, reports and making investment supervision and evaluation reports suitable to the prescribed contents and requirements, then submitting them to competent authorities for consideration.

The investment-supervising and -evaluating agencies and units shall have the following powers:

- Requesting the investment-supervising and -evaluating agencies and units at relevant levels to report according to the prescribed regime, supply additional information and materials related to the investment supervision and evaluation contents if they deem it necessary.

- In case of necessity, to directly contact and meet with the investment-supervising and -evaluating agencies and units at relevant levels, with investors and conduct field inspection. The agencies which need to have direct contact or meetings or conduct field inspection must work out specific plans and working agendas and notify them in advance to the concerned agencies and units.

- Proposing competent authorities to adjust projects when necessary or cancel investment decisions, suspend or temporarily cease the implementation of investment projects if detecting serious errors and violations in the process of investment supervision and evaluation. Reporting to competent authorities on the investors’, concerned agencies’ and units’ violations of the regulations on investment supervision and evaluation within the scope of their prescribed supervision and evaluation tasks and proposing handling measures depending on the seriousness of such violations.

1.4. Supervision by communities

Besides the regular and direct supervision by State management bodies, the owners of programs and investment projects (including private projects), after receiving investment decisions, must make public the contents of such investment decisions, the investment programs and plans (project titles, construction scope, to be-occupied land areas, investment capital, capital sources, investors, implementation progress,…) at the investment execution sites, the headquarters of the People’s Councils and People’s Committees of the localities where the projects are to be implemented, and at the same time announce them on the mass media.

Investors shall have to report to the local People’s Councils of different levels on the principal contents of their projects so that the local People’s Councils and people can supervise them. The projects of central branches and agencies must be notified to the provincial-level People’s Councils of the localities where they are to be implemented. The projects of provincial-level branches and agencies must be notified to the district-level People’s Councils of the localities where they are to be implemented; the projects of district-level branches and agencies must be notified to the commune-level People’s Councils of the localities where they are to be implemented so that the People’s Councils at these levels can organize the supervision thereof. Projects whose investors are communes must be publicized among the population communities of such communes.

The State encourages the population communities to participate in supervision the project implementation according to their investment decisions and the State’s regulations, contributing to make the project investment lawful, thrifty and efficient.

The communities’ supervision shall be effected through social and mass organizations as well as the People’s Councils at all levels, which may send their opinions on the projects to the sole investment-supervising and -evaluating agencies and units at different levels. Communities’ supervising opinions on projects shall be addressed to the agencies acting as sole investment-supervising agencies at the levels that manage such projects.

The opinion-receiving agencies must consider arising matters, propose measures to handle them and notify the conclusions to the opinion-contributing places.

2. Organization and implementation of investment supervision and evaluation:

2.1. The Ministry of Planning and Investment shall assign one of its units (Department) to act as a sole agency in performing the Ministry’s investment- supervising and -evaluating tasks, coordinating with the other ministries, branches, localities and investors, supply information and professional guidance, and handle matters related to investment supervision and evaluation.

2.2. The ministries and branches shall designate their units (Planning Departments or Sections) to take regular charge of their ministries or branches’ invest-ment supervision and evaluation; to provide guidance for the investment supervision and evaluation of their attached units and projects decentralized or authorized by the ministries or branches to subordinate levels.

2.3. For the provinces and centrally-run cities, their Planning and Investment Services shall take responsibility for regularly performing the investment- supervising and -evaluating tasks of their provinces or cities; providing guidance for the investment supervision and evaluation by the lower levels and attached units, as well as projects decentralized or authorized by the provincial/municipal People’s Committees to subordinate levels.

2.4. Enterprises, investors and project management boards shall designate their divisions to take responsibility for regular performance of the tasks of investment supervision and evaluation of projects under their management.

3. Mode of conducting investment supervision and evaluation:

1/ Organization of oversight, summing up and analysis of the situation:

The agencies shall perform the tasks of overseeing, analyzing and evaluating the situation of investment execution as well as management of investment activities on the basis of information and periodical reports sent in a systematic way and according to the prescribed regime.

The ministries’, branches’ and localities’ investment-supervising and -evaluating agencies and units should organize inter-connected communication networks so as to gather and update information, coordinate in overseeing and evaluating the investment situation.

2/ Regular examination and scrutiny:

The investment-supervising and -evaluating State agencies shall perform their tasks of investment supervision and evaluation by regularly examining and scrutinizing investment activities falling under the ambit of their responsibilities.

If detecting signs of violation of the regulations on investment management, difficulties and problems in the process of project implementation or unclear matters in the investors’ investment supervision and evaluation reports, the investment-supervising and -evaluating agencies and units may request the investors to report on, or conduct field supervision of, these matters.

The investment-supervising and -evaluating State agencies may perform their tasks of investment supervision and evaluation at the ministries’, branches’ or localities’ investment management agencies, or at the projects’ sites.

Field supervision shall be conducted when it is deemed necessary to have direct contacts and/or meetings with investment management agencies or units or to directly observe the investment objects. When having the need to conduct investment supervision and/or evaluation in the field, the investment- supervising and -evaluating agencies must report such to competent persons for decision. Field supervision must have specific working plans and programs which must be notified at least five days in advance to the concerned agencies or units.

3/ Organization of the evaluation of investment activities:

Apart from conducting overall evaluation of investment and the situation of the implementation of investment projects on a periodical basis, the investment-supervising and -evaluating agencies at all levels may conduct overall investment evaluation or evaluation of projects (referred collectively to as investment evaluation) at necessary points of time at the requests of the superior agencies or the investment decision makers as stated in the part on the contents of investment supervision and evaluation.

The tasks, contents and points of time for overall investment evaluation or evaluation of investment projects shall be considered and decided by the superior agencies or persons competent to decide on investment.

The agencies or units assigned the task of conducting overall investment evaluation or evaluation of investment projects may invite consulting organizations and/or experts professionally qualified in relevant domains to participate therein. Consulting organizations and experts shall conduct investment evaluation on the basis of contracts signed with the units assigned to perform this task. If having the need to hire consulting organizations or experts to conduct investment evaluation, the units assigned to conduct investment evaluation must work out plans and submit them to competent persons for consideration and decision.

4. Investment supervision and evaluation reports:

4.1. The reporting regime

The investment-supervising and -evaluating agencies and units at all levels (ministries, branches, localities and investors) shall implement the reporting regime prescribed below:

1. The Ministry of Planning and Investment shall report to the Prime Minister on the overall investment evaluation once every year and every plan period at the Government’s request; sum up and report on overall investment supervision once every six months; report on the general supervision and evaluation of Group-A projects nationwide once every quarter.

2. The ministries, branches and localities shall send reports to the Prime Minister on overall investment supervision and evaluation once every six months, and at the same time send them to the Ministry of Planning and Investment for sum-up. The units attached to the ministries, branches, provinces and centrally-run cities shall implement the regular reporting regime according to the regulations of the ministries, branches and localities.

3. Investors shall send quarterly, biannual and annual reports to the sole investment-supervising and -evaluating agencies of their managing ministries, branches or provinces; project owners of the ministries and branches, and at the same time send reports to the sole investment-supervising and -evaluating agencies of the localities where their projects are implemented.

In particular, the investors of Group-A projects shall, apart from making and sending reports on their projects’ investment supervision and evaluation to the sole investment-supervising and -evaluating agencies of the ministries, branches or localities, also send quarterly, biannual and annual reports to the Ministry of Planning and Investment for sum-up and reporting to the Prime Minister.

For projects completed and put into operation, the investors must make reports, with the prescribed contents, on evaluation upon completion of the investment process within six months after their projects are completed and put into use, and also send them to the investment-supervising and -evaluating agencies of their managing ministries, branches or localities as well as to the Ministry of Planning and Investment (for Group-A projects).

The investors shall have to make reports evaluating the project exploitation and operation process according to the prescribed contents and send them to the investment-supervising and -evaluating agencies of their managing ministries, branches or localities as well as to the Ministry of Planning and Investment (for Group-A projects).

4. The project management boards shall report on the investment supervision and evaluation of the projects under their management according to the investors’ regulations.

The contents of periodical reports of the investment-supervising and -evaluating agencies at different levels shall comply with set forms.

4.2. Time limits for sending periodical reports:

1. Investors:

To send quarterly reports on supervision and evaluation of investment projects to the sole investment-supervising and -evaluating agencies of the ministries, branches and localities as well as the Ministry of Planning and Investment for sum-up (for Group-A projects) within the first five days of the first month of the subsequent quarter.

2. Ministries, branches and localities:

To report to the Prime Minister on overall investment supervision and evaluation within the first 10 days of July (for biannual reports) and the first 15 days of January of the subsequent year (for annual reports).

3. The Ministry of Planning and Investment:

- To report to the Prime Minister on annual overall investment supervision and evaluation in February of the subsequent year.

- To make quarterly reports on supervision and evaluation of Group-A projects in the first month of the subsequent quarter.

4. The investment-supervising and -evaluating agencies may make extraordinary reports when necessary.

Part IV

RESPONSIBILITIES AND HANDLING OF VIOLATIONS OF INVESTMENT-SUPERVISING AND -EVALUATING AGENCIES AND UNITS

1. Responsibilities of the investment-supervising and -evaluating agencies and units:

1.1. The heads of the ministries, branches and localities and the investors shall bear responsibility for consequences caused by their failure to organize the investment supervision and evaluation or to report according to regulations.

1.2. The agencies assigned the tasks of investment supervision and evaluation shall bear responsibility for the contents of their reports.

1.3. The investors shall bear responsibility for the contents of their reports and be accountable before law for all consequences caused by their failure to implement or fully implement the regulations on investment supervision or for reporting and/or supplying untrue information on the situation of investment execution falling under the scope of their management.

1.4. The ministries, branches and localities must consider and promptly handle all arising problems and recommendations made by the investment-supervising and -evaluating agencies as well as investors on matters falling under their respective powers and responsibilities within 15 days after receiving the written requests of the concerned parties and bear responsibility for handling decisions or report promptly to subordinate agencies on matters beyond their competence.

2. Handling violations of investment supervision and evaluation

2.1. If past the prescribed time limits, ministries, branches or localities fail to send investment supervision and evaluation reports, the Ministry of Planning and Investment shall report such to the Prime Minister and propose appropriate handling forms.

2.2. If the units attached to the ministries, branches and provincial-level People’s Committees fail to fully implement the reporting regime, the investment-supervising and -evaluating agencies should report such to competent authorities and propose administrative handling forms or stoppage of the project implementation.

2.3. The investors shall bear responsibility for problems that arise due to the stoppage of the project implementation for their failure to make timely reports.

2.4. Competent authorities shall not be allowed to adjust investment for projects failing to conduct investment supervision and evaluation as prescribed.

2.5. Projects shall not be included in the subsequent year’s capital plan if they fail to have fully investment supervision and evaluation reports of the preceding year. Projects shall have their investment capital settlement reports approved only if they fully comply with the regulations on investment supervision and evaluation.

3. Handling violations of investment and construction management in the process of investment supervision and evaluation:

3.1. The investment-supervising and -evaluating agencies shall promptly report cases of violation of the Regulation on investment and construction management in investment activities under their respective management to competent authorities for handling according to regulations.

3.2. The investment-supervising and -evaluating agencies which deliberately cover up cases of violation of investment and construction management shall bear joint responsibility before law for their wrong-doings and entailed consequences.

Part V

OTHER PROVISIONS

1. Funding for the investment supervision and evaluation

1.1. The funding for investment supervision and evaluation shall cover expenses related to the investment supervision and evaluation at all levels, including:

a/ Expenses for the overall investment supervision and evaluation, to be covered with the non-business funding source of the agencies performing this task.

b/ Expenses for the supervision and evaluation of investment projects shall be included in the projects’ total investment amounts.

1.2. The management and use of the investment supervision and evaluation funding shall comply with the guidance of the Ministry of Finance. The spending norms for the investment supervision and evaluation funding shall be stipulated by the Ministry of Construction.

2. Effect and organization of implementation

1. This Circular replaces the Planning and Investment Ministry’s Circular No. 01/2000/TT-BKH of January 10, 2000 providing guidance for investment expertise and takes effect 15 days after its publication in the Official Gazette.

2. The ministries, branches, localities and investors should organize immediately the implementation of the investment supervising and evaluating falling under the scope of their management under the provisions of this Circular.

- The ministries, branches and localities shall organize the performance of the overall investment supervision and evaluation immediately in the first six months of 2003 and make reports thereon.

- For the investment supervision and evaluation of investment projects:

+ Investment projects which were approved after the effective date of Decree No. 07/CP or were approved before the effective date of Decree No. 07/CP but not yet implemented shall perform the investment supervision and evaluation under the provisions of this Circular.

+ Investment projects which were approved before the effective date of Decree No. 07/CP and are being implemented and performing the investment expertise under the provisions of Decree No. 52/CP and the Planning and Investment Ministry’s Circular No. 01/2000/TT-BKH of January 10, 2000 shall now shift to perform the investment supervision and evaluation under the provisions of this Circular.

- The Ministry of Planning and Investment shall coordinate with the ministries, branches, provinces and centrally-run cities shall guide the organization of the implementation of this Circular.

3. Any problems arising in the course of implementation should be reported by the ministries, branches, localities and concerned units to the Ministry of Planning and Investment for timely consideration and handling so as to ensure the good performance of the investment supervision and evaluation.