Analysis of current situation and proposed solutions to improve the management of official development assistance loan projects from the World Bank of Vietnam Electricity Group

Fourth : Strengthening the authority and responsibility of the investor. According to the charter, the investor is the person who directly manages the use of investment capital and manages the use of assets after investment, so the investor must be responsible from the project establishment stage to the exploitation and use process. To strengthen the authority and responsibility of the investor and prevent loss and waste, it is necessary to rectify this stage in the following direction:

- Clearly define the personal responsibility of the investor for investment activities. Strictly manage the investor in establishing the Project Management Board, in selecting contractors, in bidding and designation, dividing the bidding package, changing the design and arising issues after bidding, payment method and payment time, managing prices and construction time. Issue a mechanism to check and bind the investor to limit the influence of bidding activities, selecting contractors according to the Law on Bidding and final settlement of works. This is an important step to limit ineffective loss.

3.2 Institutional factors

Decree 131/2006/ND-CP issued in 2006, after a number of years, has gradually shown some shortcomings in its implementation and execution. The roles of the EVN Investor and the Ministry of Industry and Trade's authorities in some cases are unclear and overlapping, prolonging the time for information processing between the two parties. It is time to consult all relevant parties to contribute ideas and amend Decree 131 to better suit the current situation.

3.3 “Hot solutions” to improve efficiency and disbursement of ODA loans

World Bank

Table 3.1: Quick solutions to improve ODA disbursement efficiency

Challenge

"Hot" solution	Processing agency
A. Accelerate the process, preparation, appraisal and approval of projects
Procedures are not consistent.	Synchronize approval process	Ministry of Planning and Investment
agreement between the Government and	and supporting documents:
World Bank	• Harmonize detailed project outline
	Government and Bank projects
	World goods
	• Institutionalize guidance documents

Maybe you are interested!

Guidance on preparing feasibility study report, investment project documents • Synchronize the approval process of the Government and the World Bank: (a) Review and approve the list of funding requests by the Prime Minister, (b) Approve the feasibility study report of the CQQ before negotiate
Insufficient budget allocation for project preparation, including for resettlement activities	Include in the detailed project outline submitted to the Prime Minister the project preparation capital, including counterpart capital, non-refundable aid, and technical assistance. techniques and other equipment	Ministry of Planning and Investment
The approval process for sectoral programs/loans is cumbersome and lengthy.	Based on approval of sectoral program/loan framework for programs/loans Allows for delegating management authority to sub-project portfolio Consider applying to projects is being deployed	Ministry of Planning and Investment
B. Accelerate project initiation
Still limited in empowering unit organizations to prepare and initiate projects	Identify project owners for all World Bank projects Ensure that decentralization is institutionalized in the spirit of Decree 131 and Circular 03	CQCQ/ WB Exchange of documents
Separating project preparation and implementation teams within agencies and limiting the delegation of authority to project preparation units	Project owner soon established the Board Project Management • Ensure that the Project Management Board prepares and implements the project. • Early appointment of Project Director

Project and key ministries • Provide sufficient budget for the activities of the Project Management Board or continue in case the project has many phases.
There are many delays in planning and organizing bidding due to the remaining differences between the Law on Bidding, sub-law documents and donor guidelines.	Clearly identify inconsistencies between the Government and donors. Provide clear guidance/training during project initiation to project owners, auditors and inspectors on how to handle the above issues. Ensure awareness of the differences between Government and donor regulations and agreed procedures. agreed in the agreement.
C. Accelerate project implementation progress
Over-reliance on construction cost norms construction in preparing cost estimates in the procurement bidding process (as stipulated in Articles 37 and 38 "the winning bidder must have a bid price not exceeding the approved estimated price of the bid package")	Apply Article 3.3 of the Law on Bidding to ODA programs and projects: Improve the costing and estimating system by creating a system where costs are controlled at the overall project level rather than individual bid packages (this allows for self-balancing within the project framework). Allow winning bids exceeding approved estimated prices (not applicable to articles 37, 38). Higher bid price is not the main reason for disqualification. Different bid price is allowed (consider the terms of the price adjustment in contracts).	The Ministry of Planning and Investment amends the Law on Bidding (No. 61) and Decree 111. While waiting for the issuance of a new decision applicable to ODA projects in accordance with Article 3
Delay in selection	Abolish/amend the regulations	Ministry of Finance/WB

choose domestic consultants

regulations on consulting salaries	New decision.
salary as prescribed	with programs and projects
Government's is too low compared to	ODA to be able to apply the level
at market price.	market price for services
	high quality consulting services

CHAPTER 3 SUMMARY

Chapter 3 has outlined the development orientation of EVN in the period of 2011-2020 with a view to 2030. To increase the speed of implementation and disbursement of ODA projects with loans from the World Bank, the chapter has proposed 10 solutions to improve management work, which are:

Solutions to overcome delays in the signing of the Credit Agreement

use

Solutions to overcome delays in completing the conditions of validity

Solutions to overcome delays in hiring consultants

Solutions to overcome the difficulties caused by cost norms

The solution is to retain employees who have knowledge of the project.

Solution to solve land clearance problem

Solutions to overcome difficulties in procurement and bidding

Solutions to overcome difficulties in disbursement

Solutions to overcome difficulties in project adjustment and surplus capital

Solutions to overcome difficulties in the process of exchanging and updating information

The proposed solutions are in the right direction and highly feasible. In addition, Chapter 3 also proposes some immediate solutions to remove some common obstacles in the process of deploying and implementing ODA projects with World Bank loans in the Vietnamese electricity sector.

CONCLUDE

In recent years (2002-2012), the electricity industry has invested a huge amount of capital in the construction of infrastructure power projects to serve the country's socio-economic development needs. A large amount of ODA capital from the World Bank has been prioritized by the Government for EVN to carry out assigned tasks. However, due to the lack of experience in managing projects using ODA capital, the work of mobilizing, preparing and implementing projects has been delayed, prolonging progress, reducing project efficiency. This reality requires research on solutions: improving the management of official development assistance (ODA) loan projects funded by the World Bank of Vietnam Electricity Group.

. That is the reason why the author chose this research topic. The thesis has focused on systematizing some theoretical issues on project management. This is a rather complex topic, with a large scale, along with unavoidable limitations in terms of time and students' qualifications, the thesis is difficult to avoid shortcomings in analysis content and presentation method. However, the author hopes that this will be a good reference document for officials related to the field of project management, especially projects using World Bank funds.

Through the time of studying, researching and implementing the topic, with the in-depth knowledge in the process of implementing the topic, equipped with more knowledge to meet the needs of my current and future work, the attention and facilitation of the Graduate Training Institute of Hanoi University of Science and Technology, the enthusiastic guidance of the teachers in the Institute of Economics and Management, especially I would like to thank Dr. Nguyen Dai Thang - Director of the Institute of Economics & Management of Hanoi University of Science and Technology, for his enthusiastic guidance and guidance in researching, writing the topic and completing this thesis.

Thank you very much!

REFERENCES

1. Decree No. 131/2006/ND-CP dated November 9, 2006 issued by the Government promulgating the Regulation on ODA Management and Use.

2. Decree No. 134/2005/ND-CP dated November 1, 2005 of the Government promulgating the Regulation on foreign borrowing and debt repayment.

3. Decision No. 803/2007/QD-BKH dated July 30, 2007 on promulgating the regime for reporting on the implementation of ODA programs and projects.

4. Decision No. 290/2006/QD-TTg, dated December 29, 2006 of the Prime Minister approving the Project "Orientation for attracting and using official development assistance for the period 2006 - 2010".

5. Circular No. 108/2007/TT-BTC dated September 7, 2007 on Guidance on financial management mechanisms for official development assistance programs and projects.

6. Decision No. 61/2006/QD-BTC dated November 2, 2006 of the Ministry of Finance on the

cost levels for ODA project programs.

8. Decree No. 60/2003/ND-CP dated June 6, 2003 of the Government detailing

and guidance on the implementation of the State Budget Law.

24. Law on Bidding No. 61/2005/QH11 dated November 29, 2005 of the National Assembly (effective)

effective from April 1, 2006).

25. Decree No. 111/2006/ND-CP dated September 29, 2006 of the Government guiding the implementation of the Law on Bidding and selection of construction contractors under the Construction Law No. 16/2003/QH11 dated November 26, 2003.

26. Investment Law No. 59/2005/QH11 dated November 29, 2005 of the National Assembly (effective

effective from July 1, 2006).

27. Construction Law No. 16/2003/QH11 dated November 26, 2003.

28. Decree No. 209/2004/ND-CP dated December 16, 2004 on Quality Management

construction works

29. Decree No. 126/2004/ND-CP dated May 26, 2004 on administrative sanctions for violations in construction activities, urban infrastructure management and housing use management.

30. Decree No. 08/2005/ND-CP dated January 24, 2005 on construction planning.

31. Decree No. 16/2005/ND-CP dated February 7, 2005 on Management of Construction Investment Projects.

33. Decree No. 99/2007/ND-CP dated June 13, 2007 on Investment Cost Management

construction

34. Decree No. 52/1999/ND-CP dated July 8, 1999 of the Government on the

Implementing the Regulations on Investment and Construction Management.

36. Decree No. 07/2003/ND-CP dated January 30, 2003 of the Government supplementing a number of articles in the Investment and Construction Management Regulations issued together with Decree No. 52/1999/ND-CP dated July 8, 1999 of the Government.

37. Law No. 41/2005/QH11 dated June 14, 2005 promulgated by the National Assembly on signing,

join and implement international treaties, effective from January 1, 2006.

38. Ordinance on signing, joining and implementing international agreements, effective

since 01/07/2007.

World Bank Project Management Documents

39. Guide to Purchasing using IBRD and IDA loans.

40. Guidelines for selecting and hiring Consultants for Borrowers.