OFFICIAL
DOCUMENTS
THE WORLD BANK
IBRD*IDA I WORLDBANKROUP
December 6, 2017
Mr. Le Minh Hung
Governor
State Bank of Vietnam
Hanoi, Vietnam
Re: Vietnam Public Financial Management Analytical and Advisory Assistance
Program Multi-Donor Trust Fund Grant No. TF0A6369
Public Financial Management (PFM) Analytical and Advisory Assistance
(AAA) Program Project
Letter Agreement
Dear Governor Hung:
In response to the request for financial assistance made on behalf of the Socialist Republic
of Vietnam ("Recipient"), I am pleased to inform you that the International Bank for
Reconstruction and Development and the International Development Association ("World
Bank"), acting as administrator of grant funds provided by various donors ("Donors") proposes
to extend to the Recipient a grant in an amount not to exceed three million six hundred and sixty
six United States Dollars (U.S.$3,000,666) ("Grant") on the terms and conditions set forth or
referred to in this letter agreement ("Agreement"), which includes the attached Annex, to assist
in the financing of the project described in the Annex ("Project").
This Grant is funded out of the abovementioned trust fund for which the World Bank
receives periodic contributions from the Donors. In accordance with Section 3.02 of the Standard
Conditions (as defined in the Annex to this Agreement), the World Bank's payment obligations
in connection with this Agreement are limited to the amount of funds made available to it by the
Donors under the abovementioned trust fund, and the Recipient's right to withdraw the Grant
proceeds is subject to the availability of such funds.
The Recipient represents, by confirming its agreement below, that it is authorized to enter
into this Agreement and to carry out the Project in accordance with the terms and conditions set
forth or referred to in this Agreement.
8' Floor, 63 Ly Thai To, Hanoi, Vietnam/Phone: (84-24) 39346600/Fax: (84-24) 39350752
Please confirm the Recipient's agreement to the foregoing by having an authorized
official of the Recipient sign and date the enclosed copy of this Agreement, and returning it to the
World Bank.
Very truly yours,
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
INTERNATIONAL DEVELOPMENT ASSOCIATION
By
Ousmane Dione
Country Director for Vietnam
East Asia and Pacific Region
AGREED:
SOCIALIST REPUBLIC OF VIETNAM
Authorized Representative
Name:VA1g -U4Po
Title:
Date:
Enclosures:
(1) Standard Conditions for Grants Made by the World Bank Out of Various Funds,
dated February 15, 2012
(2) Disbursement Letter of the same date as this Agreement, together with
"Disbursement Guidelines for Investment Project Financing", dated February 2017
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Grant No. TF0A6369
ANNEX
Article I
Standard Conditions; Definitions
1.01. Standard Conditions. The Standard Conditions for Grants Made by the World Bank out
of Various Funds dated February 15, 2012 ("Standard Conditions") constitute an integral part of
this Agreement.
1.02. Definitions. Unless the context requires otherwise, the capitalized terms used in this
Agreement have the meanings ascribed to them in the Standard Conditions or in this Agreement.
(a) "Incremental Operating Costs" means the reasonable operating costs under the
Project incurred by the Recipient for the purposes of Project management and
implementation, including office supplies and consumables, utilities, bank charges,
mass media and printing services, vehicle rental, operation, maintenance and
insurance, building and equipment maintenance, domestic travel, lodging and
subsistence allowances, but excluding salaries and any salary supplements of the
Recipient and officials and staff of the Recipient's civil service ("cdng chic ","vin
cht c").
(b) "Project Management Unit" means the Recipient's unit referred to under paragraph
2.03 (a) of the Annex to this Agreement.
(c) "Project Operations Manual" means the manual approved and adopted by the
Recipient, acceptable to the World Bank, setting forth implementation,
organization, administrative, monitoring and evaluation, financial management,
disbursement, and procurement arrangements for the purposes of Project
implementation, as the same may be modified from time to time with the prior
written agreement of the World Bank, and such term includes any annexes or
schedules to such Operations Manual.
(d) "Project Steering Committee" means a committee referred to under paragraph 2.03
(b) of the Annex to this Agreement.
(e) "Training" means training activities under the Project, incurred for the purpose of
the Project, and attributable to seminars and workshops, along with the cost and
subsistence for training participants, services of trainers, rental of training facilities,
preparation and reproduction of training materials, and other activities directly
related to training preparation and implementation but excluding salary and salary
supplements of the Recipient's civil servants ("c6ng chfc", "vian chc").
Article II
Project Execution
2.01. Project Objectives and Description. The objectives of the Project are to: (i) support
strengthening the capacity of executive bodies to make, implement, and monitor policies to improve
budget planning and execution in a transparent, accountable, and sustainable manner; and (ii)
provide empirical analysis of the effectiveness and efficiency of major public finance reforms at
both the central and local levels of government. The Project consists of the following parts:
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(a) Carrying out capacity building activities to support the Recipient to:
(i) improve linkages between plans and budgets;
(ii) improve effectiveness of budget execution controls;
(iii) improve production and supply of quality fiscal information; and
(iv) improve systems for fiscal stability and risk management.
(b) Project implementation support including, inter alia, provision of support for progress
reporting, monitoring and evaluation, accounting, disbursement, procurement and
contract management for the Project.
2.02. Project Execution Generally. The Recipient declares its commitment to the objectives of
the Project. To this end, the Recipient shall carry out the Project in accordance with the provisions
of: (a) Article II of the Standard Conditions; (b) the "Guidelines on Preventing and Combating
Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants", dated
October 15, 2006 and revised in January 2011 ("Anti-Corruption Guidelines"); and (c) this Article
II.
2.03. Institutional and Other Arrangements
Project Management Unit
(a) The Recipient shall maintain, throughout the period of Project implementation, the
Project Management Unit with functions, compositions and terms of reference, acceptable to the
World Bank, supported with qualified and experienced staff in adequate numbers to be responsible
for the overall implementation of the Project, including monitoring and evaluation, Project
reporting, procurement, financial management and disbursement arrangements.
Project Steering Committee
(b) The Recipient shall maintain for the duration of the Project, the Project Steering
Committee, chaired by the Minister or a Vice-Minister of Finance and having composition and
terms of reference acceptable to the World Bank, as shall be responsible, among others, for: (i)
providing strategic directions and approving annual implementation plan for the Project; (ii)
ensuring coordination with relevant departments; and (iii) overseeing and providing overall
guidance to the Project Management Unit.
Project Operations Manual
(c) The Recipient shall: (i) no later than three (03) months from the date of counter-
signature of this Agreement, adopt the Project Operations Manual in form and substance
satisfactory to the World Bank; and (ii) carry out the Project in accordance with the provisions of
the Project Operations Manual. Except as the World Bank shall otherwise agree in writing, the
Recipient shall not assign, amend, abrogate, or waive, or permit to be assigned, amended,
abrogated, or waived, the Project Operations Manual or any provisions thereof. In the event of a
conflict between the provisions of the Project Operations Manual and those of this Agreement, the
latter than govern.
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2.04. Donor Visibility and Visit
(a) The Recipient shall take or cause to be taken all such measures as the World Bank
may reasonably request to identify publicly the Donor's support for the Project.
(b) For the purposes of Section 2.09 of the Standard Conditions, the Recipient shall,
upon the World Bank's request, enable the representatives of the Donor(s) to visit any part of the
Recipient's territory for purposes related to the Project.
2.05. Project Monitoring, Reporting and Evaluation
(a) The Recipient shall monitor and evaluate the progress of the Project and prepare
Project Reports in accordance with the provisions of Section 2.06 of the Standard Conditions and
on the basis of indicators acceptable to the World Bank. Each Project Report shall cover the period
of one calendar semester, and shall be furnished to the World Bank not later than forty-five (45)
days after the end of the period covered by such report.
(b) The Recipient shall prepare the Completion Report in accordance with the
provisions of Section 2.06 of the Standard Conditions. The Completion Report shall be furnished
to the World Bank not later than six months after the Closing Date.
2.06. Financial Management
(a) The Recipient shall ensure that a financial management system is maintained in
accordance with the provisions of Section 2.07 of the Standard Conditions.
(b) The Recipient shall ensure that interim unaudited financial reports for the Project
are prepared and furnished to the World Bank not later than forty-five (45) days after the end of
each calendar semester, covering the calendar semester, in form and substance satisfactory to the
World Bank.
(c) The Recipient shall have its Financial Statements audited in accordance with the
provisions of Section 2.07 (b) of the Standard Conditions. Such audit of the Financial Statements
shall cover the period of one fiscal year of the Recipient or any other period as agreed with the World
Bank. The audited Financial Statements for such period shall be furnished to the World Bank not
later than six months after the end of such period.
2.07. Procurement
(a) General. All goods, non-consulting services and consultants' services required for
the Project and to be financed out of the proceeds of the Grant shall be procured in accordance with
the requirements set forth or referred to in:
(i) Section I of the "Guidelines: Procurement of Goods, Works and Non-
consulting Services under IBRD Loans and IDA Credits and Grants by
World Bank Borrowers" dated January 2011 (revised July 2014)
("Procurement Guidelines"), in the case of goods and non-consulting
services;
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(ii) Sections I and IV of the "Guidelines: Selection and Employment of
Consultants under IBRD Loans and IDA Credits and Grants by World
Bank Borrowers" dated January 2011 (revised July 2014) ("Consultant
Guidelines") in the case of consultants' services; and
(iii) the provisions of this Section, as the same shall be elaborated in the
procurement plan prepared and updated from time to time by the Recipient
for the Project in accordance with paragraph 1.18 of the Procurement
Guidelines and paragraph 1.25 of the Consultant Guidelines
("Procurement Plan").
(b) Definitions. The capitalized terms used in the following paragraphs of this Section
to describe particular procurement methods or methods of review by the World Bank of particular
contracts, refer to the corresponding method described in Sections II and III of the Procurement
Guidelines, or Sections II, III, IV and V of the Consultant Guidelines, as the case may be.
(c) Particular Methods of Procurement of Goods and Non-consulting Services. The
following methods may be used for procurement of goods and non-consulting services for those
contracts which are specified in the Procurement Plan: (A) National Competitive Bidding as set
forth in the Appendix to this Annex; (B) Shopping; and (C) Direct Contracting.
(d) Particular Methods of Procurement of Consultants' Services
(i) Except as otherwise provided in item (ii) below, consultants' services shall
be procured under contracts awarded on the basis of Quality- and Cost-
based Selection.
(ii) The following methods, other than Quality- and Cost-based Selection,
may be used for the procurement of consultants' services for those
assignments which are specified in the Procurement Plan: (A) Quality-
based Selection; (B) Least Cost Selection; (C) Selection based on the
Consultants' Qualifications; (D) Single-source Selection of consulting
firms; (E) Selection of Individual Consultants; and (F) Single-source
procedures for the Selection of Individual Consultants.
(e) Review by the World Bank of Procurement Decisions. The Procurement Plan shall
set forth those contracts which shall be subject to the World Bank's Prior Review. All other
contracts shall be subject to Post Review by the World Bank.
Article III
Withdrawal of Grant Proceeds
3.01. Eligible Expenditures. The Recipient may withdraw the proceeds of the Grant in
accordance with the provisions of: (a) Article III of the Standard Conditions; (b) this Section; and
(c) such additional instructions as the World Bank may specify by notice to the Recipient (including
the "Disbursement Guidelines for Investment Project Financing" dated February 2017, as revised
from time to time by the World Bank and as made applicable to this Agreement pursuant to such
instructions), to finance 100% of Eligible Expenditures consisting of Goods, non-consulting
services, consultants' services, Training and Incremental Operating Costs, inclusive of Taxes.
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3.02. Withdrawal Conditions. Notwithstanding the provisions of Section 3.01 of this
Agreement, no withdrawal shall be made for payments made prior to the date of this Agreement.
3.03. Withdrawal Period The Closing Date referred to in Section 3.06 (c) of the Standard
Conditions is December 31, 2020.
Article IV
Recipient's Representative; Addresses
4.01. Recipient's Representative. The Recipient's Representative referred to in Section 7.02 of
the Standard Conditions is the Governor, or a Deputy Governor, of State Bank of Vietnam.
4.02. Recipient's Address. The Recipient's Address referred to in Section 7.01 of the Standard
Conditions is:
State Bank of Vietnam
49, Ly Thai To Street
Hanoi
Vietnam
Cable: Telex: Facsimile:
VIETBANK 412248 84-4-3825-0612
Hanoi NHTWVT
4.03. World Bank's Address. The World Bank's Address referred to in Section 7.01 of the
Standard Conditions is:
International Bank for Reconstruction and Development
International Development Association
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Telex: Facsimile:
248423 (MCI) or 1-202-477-6391
64145 (MCI)
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APPENDIX
National Competitive Bidding Procedures
The procedures to be followed for the procurement of goods, non-consulting services, and works
under contracts awarded on the basis of National Competitive Bidding shall be those set forth in:
(a) Article 20 on Open Bidding of the Recipient's Law on Procurement No. 43/2013/QH 13 dated
November 26, 2013 and related provisions necessary to effect the same; and (b) the Recipient's
Decree No. 63/2014/ND-CP dated June 26, 2014 Guiding Implementation of the Law on the
Procurement (collectively, "National Procurement Laws"), subject to the provisions of Section I
and Paragraphs 3.3 and 3.4 of the "Guidelines for Procurement of Goods, Works, and Non-
Consulting Services under IBRD Loans and IDA Credits & Grants by World Bank Borrowers"
dated January 2011 and revised July 2014 ("the Procurement Guidelines") and the following
provisions:
Conflict of Interest
1. A bidder shall not have a conflict of interest. Any bidder found to have a conflict of interest
shall be ineligible for award of a contract. The provisions on conflict of interest as stated under
Section I of the Procurement Guidelines shall apply.
Eligibility
2. The eligibility of bidders shall be as defined under Section I of the Procurement Guidelines;
accordingly, no bidder or potential bidder shall be declared ineligible for contracts financed by the
Association for reasons other than those provided in Section I of the Guidelines. Foreign bidders
shall be eligible to participate in bidding under the same conditions as national bidders. In
particular, no domestic preference over foreign bidders shall be granted to national bidders in bid
evaluation, nor shall foreign bidders be asked or required to form joint ventures with or be
subcontractors to national bidders in order to submit a bid.
3. Government-owned enterprises or institutions of the Recipient's country are eligible to bid
in the Recipient's country only if they can establish that they: (i) are legally and financially
autonomous, (ii) operate under commercial law, and (iii) are not dependent agencies of the
Recipient or Sub-Recipient.
Time for Bid Preparation
4. The time allowed for the preparation and submission of bids for large and/or complex
packages shall not be less than thirty (30) days from the date of the invitation to bid or the date of
availability of the bidding documents, whichever is later.
Standard Bidding Documents
5. The standard bidding documents acceptable to the Association shall be used.
Bid Opening and Bid Evaluation
6. Bids shall be opened in public, immediately after the deadline for submission of bids,
regardless of the number of bids received.
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7. Evaluation of bids shall be made in strict adherence to the criteria that shall be clearly
specified in the bidding documents and quantified in monetary terms for evaluation criteria other
than price; merit points shall not be used in bid evaluation. No bid shall be eliminated from detailed
evaluation on the basis of minor, non-substantive deviations. The evaluation of bidder's
qualifications shall be conducted separately subsequent to the technical and commercial evaluation
of the bid.
8. A contract shall be awarded, within the period of the validity of bids, to the bidder who
meets the appropriate standards of capability and resources and whose bid has been determined (i)
to be substantially responsive to the bidding documents and (ii) to offer the lowest evaluated cost.
A bidder shall neither be required nor permitted, as a condition for award, to undertake obligations
not specified in the bidding documents or otherwise to modify the bid as originally submitted.
9. No bid shall be rejected on the basis of a comparison with the employer's estimate and
budget ceiling without the Association's prior written agreement.
Rejection of All Bids and Re-bidding
10. Rejection of all bids is justified when there is lack of effective competition, or all bids are
not substantially responsive, or no bidder meets the specified qualification criteria, or the bid price
of the lowest evaluated winning bid is substantially higher than the Recipient's updated estimated
cost or available budget. All bids shall not be rejected or new bids solicited without the
Association's prior written agreement.
Complaints by Bidders and Handling of Complaints
11. The Recipient shall implement an effective and independent protest mechanism, acceptable
to the Association, allowing bidders to protest and have their protests handled in a timely manner.
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