DECISION

ON THE INVESTMENT IN RURAL TRAFFIC PROJECT 2 USING LOAN CAPITAL FROM THE WORLD BANK AND NON-REFUNDABLE AID OF THE BRITISH GOVERNMENT

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;
Considering the proposal of the Ministry of Communications and Transport (Document No. 2848/GTVT-KHDT of August 21, 1999 and the appraisal opinion of the Ministry of Planing and Investment (Document No. 6316/BKH/VPTD of September 24, 1999),

DECIDES:

Article 1.- To invest in the Rural Traffic Project 2 with the following main contents:

1. Investment location and scale:

a) To improve and upgrade about 13,000 km of land road and build, improve and upgrade about 5,000 m of bridges in the following 40 provinces:

- In the North: Lai Chau, Vinh Phuc, Tuyen Quang, Quang Ninh, Bac Ninh, Hai Duong, Hung Yen, Thai Binh, Ha Tay, Nam Dinh, Ha Nam and Ninh Binh.

- In Central Vietnam and Central Highlands: Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Quang Nam, Da Nang, Thua Thien Hue, Dak Lak, Gia Lai, Lam Dong, Binh Thuan, Ninh Thuan and Khanh Hoa.

- In the South: Bac Lieu, Ca Mau, Tay Ninh, Dong Nai, Ba Ria-Vung Tau, Binh Duong, Binh Phuoc, Long An, Tien Giang, Dong Thap, Vinh Long, An Giang, Can Tho and Kien Giang.

b) Method of selecting the investment objects in the project is to combine social and economic criteria with the following priority order:

- First priority: Key roads linking commune centers to the nearest district centers, so that one-wheel drive cars can operate thereon all year round.

- Second priority: District roads based on calculation of spending efficiency.

- Third priority: Provincial roads based on calculation of economical use of expense.

2. Technical standards:

- For the commune and district roads: The 22-TCN-210-92 standards shall apply

- For provincial roads: The TCN-4054-85 standard shall apply.

- For the bridges lying on the route, depending on specific requirements, the designed loading capacity from H8 to H30 shall be considered for application (particularly the designed loading capacity of H18 and H30 shall apply only to provincial roads).

3. Total investment capital and capital sources:

The total investment capital is 145.3 million USD, including:

- Loan capital from the World Bank: 103.9 million USD

- Non-refundable aid of the British Government: 26.2 million USD

- Vietnam’s reciprocal capital: 15.2 million USD

4. Total time schedule: The project shall be exucuted in 5 years as from the time the credit agreement takes effect.

5. Investor: The Ministry of Communications and Transport.

- Investor’s representative: Management Board of Projects 18.

- The project managing body include 2 levels:

+ The central level: The Management Board of Projects 18.

+ The local level: The Management Board of Provincial Rural Traffic Project.

6. Project implementation mode: To comply with the capital borrowing agreement and the current regulations on investment and construction management.

Article 2.- Task assignment:

1. The Ministry of Communications and Transport shall have to:

a) Review and draw experiences from the implementation of the Rural Traffic Project 1 (Credit Agreement No. 2929-VN) to application to the Rural Traffic Project 2.

b) Approve the project’s general items.

c) Exercise the overall management and administration of the implementation of the project as assigned in the Agreement.

d) Work with the People’s Committees of the provinces involved in the project and consult the Ministry of Planning and Investment and the Ministry of Finance for determining the reciprocal capital allocation and assignment of responsibility for approving component projects.

2. The State Bank of Vietnam shall assume the prime responsibility in organizing the delegation for the negotiation of the Capital Borrowing Agreement according to schedule agreed upon with the World Bank.

3. The People’s Committees of the provinces involved in the project shall have to organize the implementation of the project in their respective localities as assigned in the Agreement.

4. The Ministry of Planning and Investment, the Ministry of Finance, the State Bank of Vietnam and concerned agencies shall perform their respective functions and coordinate with the Ministry of Communications and Transport in directing the implementation of the project in strict accordance with the State’s current regulations as well as international practices.

Article 3.- The ministers, the heads of the ministerial-level agencies, the heads of concerned agencies attached to the Government, the presidents of the People’s Committees of the provinces involved in the project shall have to implement this Decision.

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