Supervision Report Cao Bang

Transcription

Socialist Republic of Viet Nam
SUPERVISION REPORT CAO BANG
Supervision report
Main report and appendices
Mission Dates:
Document Date:
Project No.
Report No:
6-16 May 2013
10-Jul 2013
1422
3105-VN
Asia and the Pacific Division
Programme Management Department
Supervision report - Mission dates: 6-16 May 2013
Contents
Abbreviations and acronyms
iii
A.
Introduction
1
B.
Overall assessment of project implementation
1
C.
Outputs and outcomes
3
D.
Project implementation progress
8
E.
Fiduciary aspects
11
F.
Sustainability
12
G.
Other
13
H.
Conclusion
14
i
Appendices
Appendix 1:
Appendix 2:
Appendix 3:
Appendix 4:
Appendix 5:
Summary of project status and ratings
15
Updated logical framework: Progress against objectives, outcomes and outputs
21
Summary of key actions to be taken within agreed timeframes
29
Physical progress measured against AWP&B, including RIMS indicators
35
Financial: Actual financial performance by financier; by component and disbursements
by category
41
Appendix 6: Compliance with legal covenants: Status of implementation
43
Appendix 7: Knowledge management: Learning and Innovation
61
Appendix 8: Progress Against Previous Mission Recommendations.
65
Appendix 9: List of People Met by the SM 2013
69
Appendix 10: Audit Log
77
ii
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
2
completed 30 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.
An IFAD Supervision Mission was undertaken in partnership with the Provincial Project
Management Unit (PPMU) and the VIE/029 Technical Assistance team from 6-16 May 2013. Its
objectives were to: (i) review project performance in general and, in particular, follow-up implementation
of the last Supervision Mission recommendations; and (ii) agree with the provincial authorities 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 next year 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 5 districts (Ha Quang, Nguyen Binh,
Quang Uyen, 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 5 private enterprises
involved in the project implementation. Key findings were discussed between the mission and PPMU
and LD VIE/029 on 15 May 2013. The final debriefing of the IFAD supervision mission to the Provincial
Program Steering Committee (PPSC) was held on 16 May 2013.
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.
B.
Overall assessment of project implementation
5.
Overall implementation progress. The current implementation performance or likelihood of
achieving development objectives of the DBRP in Cao Bang is ranked as satisfactory. The mission
appreciates efforts made by the province agencies and the project management of DBRP and
LD/VIE029 in having obtained quite improved project performance since the supervision mission one
year ago.. The annual implementation progress is also assessed as satisfactory.
1
Mission composition: 1 Mr. Nguyen Thanh Tung, IFAD Country Program Officer/ Institutional Management Specialist, Team
Leader; Mr. Do Thanh Lam, Value Chain Specialist; Mr. Phan Duy Toan, Infrastructure and Procurement Specialist; Mr.
Nguyen Hai Dat, Monitoring and Evaluation, Poverty and Gender Specialist; Mr. Do Hanh, Financial Management Specialist;
Mr. Sauli Hurri, IFAD Training Specialist and Mr. Henning Pederson, IFAD Country Programme Director joined from 14 to
16 May 2013.
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 18-28 June 2012
 Project Completion – 30 June 2014
 Loan closing date – 31 December 2014
1
6.
Key achievements are obtained in the following aspects: (i) Policy interventions: 9 policy
research and 6 policy documents supported by the project have been issued by local government;
(ii) Institutionalization of market-based approach: Value Chain Development Strategy and 3 VC
Action Plans for Cao Bang province and 10 its districts respectively issued by DARD and DPCs;
(ii) Private sector partnership and contract farming: 4 lead firms in selected value chains have been
supported and 9 enterprises have contract-farming partnership with CIGs; (iii) Access to public
agriculture services: public extension, veterinary and plant protection services strengthened and
outreach expanded to the poor in remote villages, 53 private veterinary service points established,
371 extension models developed covering 11,175 households and 705 extension courses organized for
30,330 participants; (iv) Farmer’s groups empowerment: Improved access of the poor households to
services, social capital and market linkages through participation in CIGs (enhanced 496 CIGs of
9,385 households or 50% of all population of the project communes), 175 CIGs developed members'
savings of VND 387 million for relending to the poor, 125 CIGs classified as with strong market linkages;
(v) Rural infrastructure:
210 infrastructure schemes including roads, irrigation, water supplies and
market places, in which 61 schemes use the community force-account method; (vi) Decentralization
and community participation: Market-oriented participatory socio-economic development planning
(MO-SEDP) satisfactorily implemented by all 50 project CPCs and 10 DPCs with full participation by the
local communities; and (vii) Project management: decentralization of project implementation to DPMOs
and CDBs, consolidated M&E and finance management further strengthened.
7.
By 30/4/2013, cumulative disbursement has reached 15.89 million USD, or 61.55% of the total
project budget of 25.814 million USD. Disbursement of IFAD loan is 11.24 million USD out of total
17.218 million USD, or 65.28% of plan. As estimated by the PPMU, taking all values of the committed
infrastructure schemes the delivery rate is about 85%.An estimated VND 60 billion is available for
planning for the last period of the project. The mission discussed reallocation of loan proceeds with the
project management, and a proposal to this effect will be submitted to IFAD by the end of July.
8.
However, the mission noted the following issues and challenges to full achievement of the
project objectives: (i) Target groups' participation and benefits: need for increasing the number of
poor people benefitted from extension activities and participation in the CIGs and saving/credit groups;
(ii) BDS and finance services to CIGs and enterprises: unavailability of professional institutions
delivering assistance to business planning and marketing, unchanged lending conditions of VBARD,
weak capacities of the commune CIG support teams; (iii) Business enabling environment: low
provincial competitiveness level leading to fewer numbers of enterprises in agriculture value chains, high
cost of transactions and weak demand for commodities production; (iv) Demand of the poor for easy
and sustainable microfinance services is very high, however the CIGs/SCGs have not received funds
for lending. The women’s support fund should be established under the WU and not under the project to
enhance sustainability; (v) Consolidation and institutionalization of innovative approaches: the
DARD/DPCs value chain strategy and plans, MOP-SEDP guidelines and local capacities are still weak
in terms of market orientation and private sector partnership, PPC and DPI need to take stronger
leadership in their institutionalization process; (iv) Knowledge management and partnership: lack of
mechanism and proper support for sharing/learning knowledge e.g. experience, lessons, models,
guidelines among donor-supported projects, CIGs, communes, districts, line agencies, etc.
9.
Therefore, the mission recommends giving priority to following actions:
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).
Institutionalization of value chain approach: consolidation of the value
chain action strategy and plans and revision/institutionalization 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.
Business Development Service: Strengthen 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.
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.
2
Responsibility
PSC/PPMU/DPCs/CPCs/
PWU
Agreed date
June
2013
onwards
PPC, VCTF,
DOIT, DPCs
DARD,
June
onwards
2013
PPMU, PPC, DPCs,
VCTFs, FU, WU, CA
June
onwards
2013
VBARD, WU
June
onwards
2013
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.
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.
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.
C.
PPC/DPI
June
onwards
2013
PSC,PPMU, DPI
June
onwards
2013
PSC/PPMU
By end of July
2013
Outputs and outcomes
Component 1: Improving the Business and Investment Environment
The component overall rating moderately satisfactory
Sub Component 1.1: Raising Provincial Competitiveness
10.
The sub component performance is rated moderately satisfactory. The main achievement from
this subcomponent is the six new policies were approved and implemented relating to promotion of
investment from enterprises on agro-forestry commodity development with farmers, strengthening of
grassroot extension services, and prevention and control of animal diseases. However, the overall score
of the provincial competitive index (PCI), despite continued efforts from the PPC and line agencies,
continues to be low leaving Cao Bang 61th among 63 provinces. The mission also found that a PCI
action plan was developed in 2011, but its enforcement is still weak. Without stronger efforts from the
PPC and its line agencies, it is difficult for Cao Bang to achieve its initially set target of “PCI increased at
least 5 ranks in 2013”.
11.
In order to improve the PCI, the mission team strongly recommends that the PPC should take a
proactive lead and strictly follow up with relevant line agencies to ensure that the agreed measures in
action plan are fully implemented in the coming months and years. Furthermore, in order to promote
more investment from the private sector into the selected provincial and district pro-poor agricultural
value chains that benefit farmers and smallholders in remote areas, separate and better structured
investment promotion and policy dialogue forums with key agro businesses (including processing and
trading enterprises, input suppliers, traders, cooperatives, and CIGs) should be organized biannually by
the PPC at provincial level and 10 project DPCs. These forums will be also a good opportunity for the
PPC, DPCs, and line agencies to learn about constraints faced by the business actors and be able to
develop measures/solutions to help address the identified constraints.
Sub Component 1.2: Improving the Efficiency of Equitized Businesses and their linkages to
producers
12.
Sub component performance is rated satisfactory. Taking recommendations from the mid-term
review in 2011 and last year supervision report, the DBPR with technical support from the LD/VIE029,
has shifted the project focus from general SOE equitization to direct support to lead enterprises that do
business with CIGs and farmers in project prioritized value chains. Until now, 4 enterprises are selected
for this support, namely the Le Thanh Company (in H’Mong cow value chain, linked with 80 CIGs);
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 (pig and feed value chains).
Supporting activities include (i) formulation of strategic and annual business plans; (ii) capacity building
activities on sales management, marketing, financial and human resource management (60 participants,
of which 38 were females); and (iii) support for design and establishment of economic contracts
between the enterprises and famers/CIGs, and start of a supporting legal unit.
13.
However, mission team found out that outcome from the DBPR and LD/VIE029’s technical
support on the companies' business performance and impact on the project CIGs/poor farmers are not
yet monitored and documented. Therefore, it is recommended for LD VIE0/29 together with PPMU to
follow up more closely with the 4 supported companies and study this support modality in order to draw
lessons and replicate this to other lead firms (including enterprises and cooperatives) in the selected
pro-poor value chains in the remaining months.
3
Agreed action
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.
Assess private sector involvement in different supported pro-poor
agricultural value chains and implement promotion activities to attract more
investment from this sector.
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.
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.
Responsibility
PPC and line agencies
Agreed date
June
2013
onward
DPI, DOIT,and 10 DPCs
with DBRP and LD
VIE029 support
PPC and 10 DPCs with
DBRP and LD VIE029
support
LD VIE029, IPCA
June
onward
2013
June
onward
2013
June
onward
2013
Component 2: Improving Rural Business Development Services
The component overall rating satisfactory
Sub Component 2.1: Value Chain Development Services
14.
The sub component performance is rated satisfactory. The supervision team has noted a wide
range of satisfactory activities implemented by DARD, with support from DBRP and LD VIE/029, under
this sub component: (i) formulation of 2013-2015 strategy for development of agro value chains in Cao
Bang; (ii) design of provincial action plans for upgrading 3 main agro value chains (H’mong cow, black
pig, and vermicelli-arrowroot) ready for PPC approval; (iii) a value chain analysis and action plans for
upgrading agro value chains in 10 districts; (iv) establishment of Value Chain Task Force under DARD in
10 project districts; and (v) establishment of improved linkages between CIGs and local enterprises,
cooperatives, and local traders in different value chains.
15.
However, mission identified issues that need consideration by the PPC and relevant agencies:
(i) Current value chain action plans lack measures related to product and market development, business
linkages (vertical and horizontal) and value chain governance; (ii) Both provincial and district level Value
Chain Task Forces (VCTF) were formally set up in March 2013, but they are composed only of DARD
staff. The new units face difficulty in fulfilling their functions and responsibilities as all members work
only part time with VCTF and lack experience in market and business development. Without
represenatives from other technical line agencies with market development experience such as DoIT it’s
hard for the VCTF to coordinate, advice and support on matters beyond DARD authority and skills. The
supervision team recommends PPC and PPMU to (i) revise the draft value chain strategy and action
plans to include guidance on market identification and development, (ii) institutionalize the VCTFs and
(iii) include other relevant organizations to the current Task Force composition. DBRP and LD VIE/029
will provide technical and financial support to complete the required documentation and to support the
VCTF members with capacity building activities and market analyses.
16.
Business Development Services. Management and marketing support for enterprises and
MSMEs will likely reach the moderate targets of the project.The progress in orienting province towards
functioning BDS service system has been relatively satisfactory. (i) ToT trainings for the Farmers' Union,
Women's Union and Cooperative Alliance were provided for these entities to become rural BDS
providers to strengthen capacity of the CIGs, cooperatives and MSMEs; (ii) 105 staff (105% of project
target) of new and existing enterprises trained on business development, management and marketing
skills; (iii) 175 family enterprises and MSMEs (88% of project target) in the province got access to BDS.
In the remaining time of DBRP, the project and LD need to support a provincial unit (potentially VCTF) to
implement the task of rural BDS coordination and project should support this unit technically and
financially in managing BDS in provincial and district levels, including management of market
development support to CIGs. The project should also deliver further capacity building for both the local
BSD provider agents (FU, WU, CA) and key business actors in product development, trademark
registration and market connection.
17.
Commodity market information system. The project has recently evaluated the provision of
official market information through mobile phones and leaflets to the poor. Results show that although
farmers have improved their understanding and use of market information, effectiveness of current
practice is still modest. It was highlighted by DoIT that the poor-targeting market information channels
are not realistically implementable without financial support from the DBRP, and this practice will likely
4
stop after project closure. Therefore, mission team recommends that the PPC should assign DoIT to
take lead in reviewing findings and recommendations from the evaluation and develop a sustainable
market information distribution plan for PPC approval, with technical support from the DBPR and
LuxDev VIE/029. The aim is to reduce costs and time required to deliver this service, making it
deliverable through government budget and staff at different levels.
18.
Labour market development. The project in collaboration with DOLISA has achieved
satisfactory results since 2010, in terms of: (i) 754 (75% of the project target) full time job opportunities
created by supported agro-processing MSMEs; and (ii) 199 trained people (33%) have a stable
employment 6 month after training. This is due to a number of activities implemented so far:
(i) 3 provincial and 20 district level job fairs organized; (ii) Jobs created through training of 223 rural
workers in direct linkage with enterprises' requirements; (iii) 5 workshops on labour market information
organized in Hoa An and Tra Linh districts and in 3 commune clusters; (iv) vocational training provided
to workers on brocatelle weaving for export; and (v) survey on labour demand conducted by the Job
Center.
19.
Food safety standards. Until now the project has achieved satisfactory results in assisting four
companies to obtain food safety certificates. These include the Le Thanh H’Mong cow products
Company, a slaughter house , a glass noodle cooperative and an agro processing cooperative.
Sub Component 2.2: Farm Productivity Improvement Services
20.
The sub component performance is rated satisfactory. Until now (i) about 17 thousand
farmers/rural producers (equivalent to 68% of the project target) have adopted improved
technologies/processes promoted by extension; (ii) according to project surveys, about 80% of target
groups are aware of the availability and quality of extension and technical support services; this is due to
activities supported by the project, including: (i) improved quality agricultural extension services from
both public and private service providers resulting amongst others in better control of animal diseases
(about 90% of the interviewed farmers were satisfied with veterinary services); (ii) the development of
371 production models with participation of 11175 households; (iii) the support of 170 households,
mainly poor households in CIGs in Ha Quang and Thong Nong districts, to move their animal stables out
of the family living areas; (iv) the 705 training courses on farming techniques and farm economic
analysis organized for 30330 turns of participants (12790 females) from villages and CIGs; and
(v) demand driven research and extension activities carried out for the CIGs (e.g. sesame farming
techniques in uplands, canvas bag usage for straw silage, improved technology in extracting starch from
arrowroot).
21.
In order to increase impact of these farm models, the team recommends DARD, with technical
and financial support from the project and LD VIE029, to conduct assessment of different farming
models tested so far, analyze and document the best models, adapt appropriate agricultural extension
methods and training materials for wider dissemination and replication in the project areas and
throughout the province. Beside this, in some of the visited communes, the team also learned that there
are some unknown plant diseases in sugarcane and corn that need DARDs attention.
Agreed action
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.
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 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.
Conduct evaluation of the farm models, identify and document the best
models, adjust agricultural methods (FFS) and training materials for wider
replication.
Investigate new plant diseases and develop climate smart agriculture (CSA)
solutions.
Facilitate DoLISA-IPAC collaboration for replication of direct enterprisevocational training link.
5
Responsibility
VCD-TF, PPMU,
VIE029
PPC, DARD,
LDVIE029
LD
Agreed date
June-July 2013
PPMU,
June-July 2013
PPC, DOIT, PPMU
June-December
2013
DARD and PPMU
January-April
2014
DARD and PPMU
OctoberDecember 2013
August
2013
onward
PPMU, DoLISA, IPAC
Sub Component 2.3: Rural Finance
22.
Sub component performance is rated moderately satisfactory. The mission observed progress
as follows: (i) The IFAD credit line for VBARD was disbursed according to last year’s target. Up to March
31, 2013, the provincial VBARD has disbursed VND 59,737,400,000 of the IFAD credit line. The current
outstanding balance is VND 36,827,544,758. Out of 1850 loans issued so far, 291 were borrowed by
poor households and 529 by near poor households; (ii) and the monitoring of the impacts created by the
IFAD financed loans have improved. DBRP and Vie 029 have assisted the district and provincial VBARD
in reviewing all disbursed loans to analyse the number of jobs created for the poor; (iii) borrowing
through CIGs has been encouraged and promoted. In 2012, loans were given to 35 CIGs
(286 members) with the total amount of VND 2,690 million, accounted for 12.2% of total disbursed
amount, an increase from 10.5% in last year; (iv) access to IFAD supported loans for businesses,
cooperatives and CIGs has been strengthened. Together with VIE029, PPMU organized TOT training
courses on rural finance for project staff, VBARD, WU, FU, and relevant line agency staff. The IFAD loan
manual was revised in terms of simplicity and adaption, following workshops with relevant entities
including VBARD Viet Nam.
23.
Following the SM 2012, the PPMU has established a CIGs Development Fund under DBRP in
order to provide access to finance to CIGs groups in parallel with the VBARD credit line. In 2013, PPMU
finalized the Manual of CIG Development Fund with an initial capital of about VND 3 billion. According to
the Manual, the provincial Women’s Union (PWU) has been authorized to manage the Fund.
24.
The discussion with CIGs revealed a substantive unfilled demand for additional finance.
However, as noted, only about 12% of the IFAD supported loans from VBARD were obtained by the CIG
members. This is due to the collateral requirement of VBARD. In addition, the CIG lending manual has
too many (15) and unclear criteria to assess the performance of CIGs. It is recommended that the
number of criteria is reduced and simplified along the following lines: (1) management board of at least
3 members; (2) mandatory group regulations; (3) regular meetings every 2-3 months; (4) savings
mobilization with average saving amount 50,000VND-100,000VND/member/year; (5) feasible business
plan; and (6) requirements for loan application as per VBARD regulations.
25.
Concerning the CIG Development Fund the mission noted the following sustainability issues:
(i) since it is established under DBRP, it will disappear after the project ends. Based on the expiriences
from other provinces, the Fund should be established under the PWU following the policy documents
148/2007/ND-CP 25/09/2007, 09/2008/TT-BNV 31/12/2008, 148/2007/ND-CP. Subsequently, the PPMU
will be able to support the operation of the Fund. (ii) The Manual for the CIG Development Fund has
been finalised, however it needs to be revised in terms of detailed products description and the payment
scheme. (iii) The projected interest rates of the CIGs Development Fund lending, as agreed between
PPMU and PWU is too low (0.25%/month) resulting in (a) rural finance market distortions,
(b) potentional low productivity investments and (c) depreciation of capital and insufficient provision for
operation costs. (iv) The Fund currently has no business plan outlining its operations and long term
vision, leading to overload of staff and capacity issues.
Agreed action
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.
Conduct an assessment of the impacts of VBARD loans for CIGs member
to draw lessons learnt and prepare for reporting the.
Establish the WSCG Fund under PWU, instead of the current arrangement
with direct PPMU management. Primary target of PWU lending will be for
CIGs.
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.
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.
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.
6
Responsibility
DBRP, LuxDev, VBARD,
IFAD
Agreed date
By July 2013
DBRP
ASAP
PWU with supports from
DBRP
June 2013
DBRP
June 2013
DBRP
June 2013
DBRP
June 2013
Dec 2014
till
Component 3: Amplification of Market Access for the Rural Poor
The component overall rating moderately satisfactory
Sub Component 3.1: Enhancing Common Interest Groups
26.
Sub component performance is rated moderately satisfactory. The proportion of project
commune households participating in CIGs is about 50%, and about 90% of CIG households reported
positive effects of CIG membership. With intensified assistance from LD VIE/029, DBRP has improved
province's CIG support effort and its documentation particularly in view of following: (i) membership in
CIGs is now voluntary-based and awareness of project, province and district staff is raised regarding
requirements of market-orientation and voluntarism in all CIG activities; (ii) as per recommendation of
SM 2012, the 469 CIGs have been classified based on their market access and group functions,
providing useful information for design of improved CIG support; (iii) practical pro-poor enterprise
partnership models in CIG strengthening are set up in different parts of project VCs such as sugar cane
and tobacco raw material supply, livestock feed supply, seedling production and handicraft weaving;
(iv) 175 of the CIGs have active savings and social funds (total 385 mil VND), establishing required
savings habit and small collateral for forthcoming WU micro-lending; (v) puring project duration
8441 members of CIGs have received capacity building through trainings and workshops, focusing in
agricultural productivity and establishment of the CIG and savings activity; (vi) poverty rate among the
CIG households reduced from 54.3% in 2011 to 38.6% in 2012.
27.
In terms of CIG and CIG support sustainability the following issues require attention: (i) CIGs still
have little or no capacity to plan joint procurement of inputs and equipment, and rarely do joint
marketing. 16.9% of the CIGs co-purchase inputs to some or all of the members, 14.7% sell their
products with commonly agreed price, and 7.2% implement a CIG business plan. The CIG training ToT
and subsequent support to WU, FU and PCA to hold CIG formation and management trainings
(200 CIGs trained) has by now resulted in basic CIG and savings management skills but not yet in skills
to invest or operate as group; (ii) CIG classification exercise gives weight to group establishment skills
and market access of individual households separately, leaving less value to operational collaboration
between group members. Class 1 CIGs have established CIG functions and consist of commercially
active households, but most of these CIGs still don't operate as one unit; (iii) neither CIG support groups
nor VCTFs have capacity in market identification or CIG business plan support, so market development
support structure is missing as was also explained in sub-component 2.1 above; (iv) CIG development
strategies have been designed for all 10 districts in 2011 but only one district has approved the strategy
for implementation. It remains unclear whether districts see it beneficial to continue supporting CIGs as
part of their institutional support to agricultural commodities production, and what actor will hold lead
responsibility in this task. To address these issues in support of CIG development in Cao Bang province,
mission recommends following:
Agreed action
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;
Project will allocate resources to district VCTFs to manage implementation
of basic market and business/investment plan coaching to CIGs;
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;
Project will support the province and districts to decide how to include CIG
development in strategies to promote agricultural commodities production;
In response to decision on provincial CIG development, project will continue
building capacity of a group of local CIG trainers.
Responsibility
PPMU, PPC
Agreed date
June-July 2013
PPMU, VCTFs
August 2013
DPCs, DPMOs, VC
taskforce, DARD, DoIT
September 2013
onwards
PPMU, PPC, DPCs
June-August
2013
September 2013
onwards
PPMU
Sub-Component 3.2: Participatory Planning and Investment
28.
Sub component performance is rated moderately satisfactory. The project with support from LD
VIE/029 has achieved satisfactory results as follows: (i) a software for collection and synthesis of
information/data for commune SEDP planning has been developed, and 250 planning staff at provincial,
district and commune levels have been trained in 2012; (ii) the project and LD VIE/029 in collaboration
with DPI and PSARD has prepared the integrated work plan and budget 2013 for SEDP planning
7
activities; (iii) CIG plans were integrated into the 2013 SEDPs for 50 project communes; (iv) A 3-day
training curriculum on commune SEDP planning was developed and accepted for use by the provincial
politics school for training district and commune cadres; (v) a training course on development of new
rural development proposals was conducted for commune staff of 20 project communes, and new rural
development proposals were developed for 4 project communes; (vi) the overall SEDP of Cao Bang
province towards 2020 and visions to 2025 was reviewed, revised and approved by the PPC.
29.
However, there are still challenges for up-scaling and institutionalization of the participatory
SEDP: (i) the participatory SEDP manual (revised in 2011) was being applied for 50 DBRP communes
and 62 PSARD communes; the remaining 76 non-project communes are still not familiar with
participatory SEDP planning process; (ii) budget source and allocation for conducting participatory
SEDP planning after DBRP phase-out is not yet guaranteed; (iii) the roadmap and roles of stakeholders
for up-scaling and institutionalization of the participatory SEDP planning process is still not clear, and
(iv) there is a need for review and revision of the SEDP manual after 3 years of application.
Agreed action
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
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.
Responsibility
DPI, PMU, LD VIE/012,
PSARD
Agreed date
Quarter II 2013
onwards
DPI, PMU, LD VIE/029,
PSARD
Qtr II 2013
Sub-Component 3.3: Commune Investment Fund
30.
Sub component performance is rated moderately satisfactory. The project and LD VIE/029 has
achieved results in CIF implementation including: (i) A manual on participatory implementation of smallscale CIF civil works (Force Account Manual) was developed and approved by the PPC (in November
2012); (ii) 61 CIF civil works out of the total 210 CIF civil works were planned and being implemented
using force account method; (iii) A manual for financial management of O&M activities for CIF civil works
were developed (October 2012); (iv) O&M groups for completed CIF schemes were established in
50 project communes; O&M plans for the completed CIF civil works were developed; (v) By May 2013,
131 out of the total 210 CIF civil works were completed and put in use for 9,156 benefiting households,
including 2,296 poor households. (vi) by April 2013, total 1,216 provincial, district and commune staffs
were trained on decentralized management of CIF.
31.
The mission however identified a number of issues related to CIF implementation: (i) payment
progress for completed CIF civil works is low (by 1 April 2013, payment requests for completed CIF
works of the total amount VND 29 billions are still under preparation and processing); (ii) liquidation
dossiers for completed CIF civil works are still to be prepared for appraisal and approval;
(iii) effectivenessof the pilot O&M fund for CIF civil works need further assessment in terms of
sustainability.
Agreed action
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.
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.
Prepare and submit to IFAD for approval before implementation of a
supplemental plan for additional CIF civil works using the remaining 90%
CIF.
D.
Responsibility
PMU, DPMOs
Agreed date
Quarter II 2013
onwards
PMU,
LD
VIE/029,
DPMOs, district planning
& financial sections,
District industrial and
trade sections
Quarter II 2013
PMU, DPMOs, CMBs
Quarter II 2013
Project implementation progress
32.
Project management performance. Rated as satisfactory. Over the past one year the project
management performance is satisfactory as evidenced by the M&E and RIMS indicators and the
financial disbursement rate of 94.9% against the 2012 AWPB. The project management has been active
in improving ownership of the province line agencies and promoting decentralization to the District and
8
Commune People’s Committees (DPCs and CPCs) in coordination of the project activities as
recommended by the last SM. The technical assistance by LuxDev has also been substantially more
effective in closely supporting the local levels for capacity building and strategic planning. The mission
found high commitment of the provincial agencies, DPCs and CPCs for replication of the innovative
approaches introduced by the project such as the MO-SEDP, value chain methodology, CIG and
women’s saving and credit groups, etc. The project exit strategy has been approved by the PPC
meanwhile expectation for further IFAD assistance has been expressed by all the visited districts,
communes and communities. During the last period the project management has also been flexible to
change the project modalities for improvement of its effectiveness and efficiency such as the change
from public bidding to the force account in implementation of small-scale infrastructure schemes, and
development of saving and microfinance activities within the CIGs.
33.
However, the following issues require attention: (i) the capacities of district and commune staff
on result-based management should be further enhanced and transferred to the management of the
New Rural Development Programme; (ii) the existing AWPBs at the province and district levels should
be integrated with the approved value chain action plans as well as with the activities financed by the
10% of CIF allocation; (iii) the project should reallocate funds towards the upscaling of the successful
and strategic activities such as the women’s saving and credit groups, the force-account small-scale
infrastructure schemes, and VCTF activities to ensure effective and full delivery by end of the project;
(iv) CDBs should be fully informed 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.
Agreed action
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
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
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 small-scale infrastructure schemes. Ensure full budget
delivery by end of the project.
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
Responsibility
PPMU, LD VIE029,
NTP-NRD office
Agreed date
June
2013
onwards
PPMU, DPMOs
June
onwards
PSC, PPMU
June2013
onwards
PSC, PPMU
June
onwards
2012
2013
34.
Coherence between AWPB and Implementation. Rated as satisfactory. After the SM 2012,
PPMU revised the remaining project budget and developed 2013 AWPB, which was approved by PPC.
Following the SM 2012 and with support from LD VIE/029, DBRP identified challenges and intensively
accelerated the project implementation progress. Focus was put on value chain development, CIGs, and
strengthened capacity for implementing CIF. By the end of 2012, the project has made significant
improvements. Most of project activities have achieved expected results. The project has also
cooperated with line agencies and related stakeholders to implement the project activities as scheduled
in 2012 AWPB. All project activities aim at target groups such as poor households, woman, CIGs,
business households, and enterprises related to selected value chains.
35.
Monitoring and Evaluation. Rated as satisfactory. The Project’s M&E has been kept updated
and functioning with competent technical assistance from Project LD VIE/029. Information collection
process is quite smooth. Indicators at three levels (output, outcome and impact) are collected from the
use of forms (at the commune level) and surveys (annual and RIMS). The Project has cooperate with
district VBARD to review all disbursed loans to analyse the number of jobs created for the poor and the
number of poor households having accessed loans. Additional survey has been conducted, including the
CIGs reports, the training effective assessment.
36.
However, there are some drawbacks for M&E, including the poor capacity of M&E staff at the
commune level. Their computer skills are also weak and facilities are not adequate. The commune data
is stored in hardcopy rather than in computer, which make difficulties for the commune staff to generate
the data upon requests. Second, the project log frame has changed significantly since the beginning,
with a number of results removed or changed, but the indicators have not been adjusted accordingly,
making some indicators irrelevant or unable to measured or achieved. There is a need to review the log
frame and the indicators. As the project will end in the next year, the preparation for the Project
9
Completion report has to commence, including the RIMS plus survey with the control groups. The PPMU
should start planning and implementing transfer of M&E system and its database to local statistic
agency and relevant stakeholders. There is still a need for case studies to illustrate project impacts.
37.
Gender focus. Rated as satisfactory. Women’s participation has been impressive and progress
is satisfactory. Women play a significant role both as beneficiaries and actors in the implementation of
the project activities. The participation of women in the management at all levels is more than 30% (in
the PPMU, DPMO, and CDB). Women account for 43% of all beneficiaries from capacity building
activities by the project Women also play an important role as members and the main labour force in the
CIGs, the ratio of women in CIGs member is 40.6% while the involvement of women in the SEDP has
been stronger with 42% involved in SEDP preparation. Women account for 43% of all beneficiaries from
capacity building activities by the project. The 2012 SM recommended training on gender awareness,
gender equality and gender mainstreaming for project staffs at province, district, commune levels and
partners involved in the project such as staffs from DARD, DPI, DOLISA, and DOIT. This is still to be
implemented.
38.
Poverty focus. Rated as moderately satisfactory. About 28% of the households of the province
were classified as poor in 2012. Out of the list of 62 poorest districts nationwide, 5 districts are located in
Cao Bang (Bao Lam, Bao Lac, Thong Nong, Ha Quang and Ha Lang) and 3 of them are covered by
DBRP. As a province, Cao Bang is classified among the 20 poorest provinces nationwide. The poverty
rate in the project area varies considerably (from 15.3% in Hoa An to 78.4% in Nguyen Binh). There is
evidence that DBRP project has contributed to reduce the poverty rate in the CIGs from 50% in 2010 to
39% in 2012. However, in some districts and commune, the poverty reduction rate is very slow. In
particular in Nguyen Binh district, the poverty rate increased nearly 10% during the last year. In some
communes such as Ca Thanh, Hoa Tham, Thinh Vuong (Nguyen Binh district) and Dinh Phong (Trung
Khanh) the poverty rate increased during the last year, which might however be due to data collection
methods.
39.
Effectiveness of targeting approach. Rated as moderately satisfactory. The CIG support is
the main activity with direct impact upon the rural poor. CIG regulations require that the minimum
proportion of the participation of the poor must be 70%, but up to now the poverty rate in the CIGs
comprise around 43%. About 15% of the IFAD credit line to VBARD has been provided to poor
households, and the ratio of near-poor accounted for 29%. Under the CIF, the poor households are
participating in the MO-SEDP process fully and benefit substantially from the infrastructure
improvements.
40.
Innovation and learning. Rated as moderately satisfactory. The project has organized 8
training courses on topic related to knowledge management for staffs from project and line agencies at
all levels since 2010. Quarterly newsletter was issued in order to share information on project
implementation progress. Leaflets, posters, videos, and brochures were also developed and widely
distributed to villages. Manuals on Knowledge Management, Monitoring and Evaluation, CIG, and CIF
were also developed and disseminated to project communes. The project has also been cooperating
with Cao Bang Press and Provincial Broadcasting Center to issue 2 reportages per month and organize
forums on value chain development, and solutions for preventing and protecting cattle from hunger and
coldness. Every month, project news are also published in Cao Bang Press. The project has also
organized a number of learning visits for staffs from line agencies, partners, and project management at
different levels. As project is closing next year, the supervision team recommends the PPMU to focus on
analysing and documenting best examples/models.
41.
Partnerships. The partnership between the DBRP and LD VIE/029 is contributing substantially
to the achievement of the project objectives. In addition, the cooperation with an on-going Swiss
Development Cooperation program (PSARD) ensures synergy in donor support for PPC/DPI to roll out
innovative approaches such as the participatory MO-SEDP and PPP models. To further strengthen this
collaboration, the mission recommends that the PPC/DPI establish a partnership working group
consisting representatives from the projects.
Agreed action
Revise the indicators in the log frame to remove irrelevant indicators or adjust the
target for some indicators
Implement the SM 2012 recommendation on gender training
10
Responsibility
PPMU
Agreed date
ASAP
DBRP
July 2013
E.
Fiduciary aspects
42.
Financial management. Rated as moderately satisfactory. The mission acknowledged that:
(i) PPMU already issued internal control manual and applied the internal control procedures quite
effectively for the purpose of financial management; (ii) monthly, PPMU’s accountants work with DPMOs
on financial settlement, also check cost norms and eligibility of expenses, collect accounting documents
from DPMOs and CDBs. All the financial settlements follow a checklist with 7 steps, which are clearly
and scientifically designed. The checklist is enclosed with minutes of accounting documents handover
which are classified into certain categories to facilitate for PPMU to update data into accounting software
and preparation of withdrawal application.
43.
However, the mission found that: (i) many documents prepared by accountants of CDBs have
errors, and need to be supported from PPMU and DPMOs’ staff to completion; (ii) supporting documents
do not have adequate information or not indicate all outputs. Some tools and stationeries for training
activities had been bought before the approved date of cost estimates; (iii) monitoring costs for PPMU
and DPMUs staffs are paid by CDBs, who directly implement the project activities, so that should not
ensure the independent of M&E staff. Furthermore, the project does not have effective controlling
mechanism to avoid the double payments for DSA and monitoring costs; (iv) although monitoring on
implementation progress and payment of contracts are managed quite well in each unit of PPMU, there
is no unified forms and no comparison or regular updates between technical sections with accounting
unit. As a result, the consolidation of disbursements based on the exchange rate of SDR and USD take
long time; (v) there is a high turnover of accounting staff at all levels, which poses difficulties in
maintaining the accounting and financial information system.
44.
In conclusion, the mission recommends that PPMU should setup a system to monitor all
contracts, implementing progress and payments. Payments for M&E staff should be done at the PPMU
and DPMOs levels in order to ensure independent M&E work; moreover, expenses on DSA and other
things can be under control.
45.
Disbursement. Rated as moderately satisfactory. By 30/4/2013, cumulative disbursement has
reached 15.89 million USD, or 61.55% of the total project budget of 25.814 million USD. Disbursement
of IFAD loan is 11.24 million USD out of total 17.218 million USD, or 65.28%. Cumulative expense of the
project is 16.08 million USD, or 62.31% of the total project budget. The mission noticed that in 2013,
PPMU has been active in reviewing activities, balancing budget lines, considering changes in exchange
rate of SDR, USD to develop a more realistic AWPB to ensure disbursement progress. However, (i) by
30/4/2013, under disbursement of Cat. V, technical assistance, studies and training has exceeded the
funding allocated for this category. The reason is that most of training and capacity building activities in
previous years, which should be financed by 10% of CIF under Cat. I, were put to Cat. V; (ii) Cat. VIII –
Salaries has a large unspent amount since the project applied the method of allocating IFAD fund and
GoV fund at the rate of 50/50, not including social insurance. In addition, GoV regulations on salary
ceilings applied to project staff also significantly limits value of disbursement under this category; (iii)
PPMU only informs CDBs budget plan of each year but not total funding amount, which causes
difficulties for communes in actively developing long-term work plan.
46.
Recommendations of the mission are as follows: (i) PPMU should urgently review activities,
balance and make proposals about reallocation among categories; (ii) PPMU should inform relevant
entities about forthcoming reallocation so that they can effectively carry out project activities in short
term and long term; (iii) monitor the system of withdrawal applications for each component and category.
47.
Counterpart funds. Rated as satisfactory. According to the procedures of providing counterpart
fund of GoV, counterpart fund is approved annually. The amount was 100% of counterpart fund
requested in AWPB. By 30/4/2013, cumulative disbursement of the counterpart fund is 1.22 million USD,
or 48,51% of allocated fund. Adequate allocation of counterpart fund creates favourable conditions for
PPMU actively prepares for and carries out project activities. However, counterpart fund was calculated
at the exchange rate of 16.000 VND for 1 USD at the time of Loan Agreement signing. As a result, there
will not be enough GoV fund from now until the project closing date if timely adjustments are not made.
48.
Compliance with loan covenants. Rated as satisfactory. In general, the project complies with
provisions of the loan agreement and its adjustments with regard to financial management,
disbursement, tendering and auditing. The project prepared an annual work plan and budget (AWPB),
audited financial reports, regular financial reports to the donor and related agencies for review and
feedback. Project assets were thoroughly managed from PPMU to DPMOs. PPMU has leveraged its
11
coordinating role and closely linked the PPC, DPMOs, CDBs and IFAD to implement the project.
Expenses using IFAD funding exclude tax. Tax payment was financed by the GoV as stated in the Loan
Agreement.
49.
Procurement. Rated as satisfactory. The project applied procurement procedures in line with
loan covenants as well as laws on tendering of Vietnam. Procurement guideline was issued and updated
in a timely manner. Through document review and working with DPMOs and CDBs, the mission
recognized that the force account method has been adopted by the project effectively. The force account
method has mobilized significant level of local resources from beneficiaries, and generated more jobs
and income for poor people in the project area.
50.
Audit. Rated as satisfactory. Recommendations of auditing companies and supervision
missions have been completed by PPMU. At the time of the mission, auditing of financial statement
2012 is still in draft version. The mission reviewed the auditing contract, auditing plan, draft of
agreement on auditing results, and noted that the auditing of financial statements are satisfactory and in
compliance with terms and conditions.
Agreed action
Disbursement
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.
Allocate the remaining budget for each CDB
Management of project assets
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.
Financial management
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
F.
Responsibility
Agreed date
PPMU
Q2/2013
PPMU
Q2/2013
PPMU, DPMO, CDB
As of 5/2013
PPMU, DPMOs, CDBs
As of 5/2013
Sustainability
51.
Institution building. Rated as satisfactory. The project-supported institutions will be sustainable
if the PPC and PSC continue to support the following: (i) the MO-SEDP; (ii) the Saving and Microfinance
Fund under the Women’s Union and provision of capacity building; (iii) further development of
collaborative groups and cooperatives based on the CIG concept; (iv) the M&E system for the NTP-NRD
based on the DBRP model; (v) Value Chain Strategy, Action Plans and Task Forces.
52.
Therefore in order to ensure institutional sustainability of the project-supported institutions the
mission recommends that the PPC ensure sufficient allocation of government funds for replication of the
above activities.
53.
Empowerment and social sustainability. Rated as satisfactory. DBRP has been highly
supported by the society, thanks to its sustainable solutions in addressing issues related to poverty,
gender and ethnicity minority. For officials at all levels, the new SEDP planning is a breakthrough on
how to plan investments and get social consensus among local authorities, citizens, mass organizations
and business community. However, to ensure effective participation of local people, especially the poor
and women, in the commune development process, the project should continue to enhance capacity for
CIGs members, mass organisations, village leaders and CIG leaders. In addition, the project needs to
continue decentralising to the communes, ensuring they have greater authority in selecting and
implementing project activities.
54.
Quality of beneficiary participation. Rated as satisfactory. The SM witnessed the active
participation of the people, including the poor, women and ethnic minorities to the planning,
implementation, O&M, and monitoring/evaluation of the project activities. 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 later on they can engage directly in implementation and
monitoring of approved activities and benefit directly from it.
12
55.
Responsiveness of service providers. Rated as satisfactory. Over time, thanks to the project
approach, service provision is more demand driven and diversified. The Agricultural Extension Center
and its stations at district level are providing courses according to the actual needs of communes and
farmers. Commune WU and FA are responsible for defining needs from the beneficiaries, contracting
extension agencies and organizing training courses. The beneficiaries are increasingly involved in
selecting private service providers thus improving the quality, outreach and diversity of services.
56.
Exit Strategy. Rated as satisfactory. The project has prepared an exit strategy and submitted it
to PPC for approval. The strategy is considered comprehensive and realistic. The strategy outlines
specific collaboration with institutions and approaches for upscaling and transfer of responsibility: (i) DPI
in institutionalizing MO-SEDP, (ii) DARD in implementing the NTP-NRD and developing agriculture
commodity value chains, (iii) DOLISA in rural vocational training, and (iv) mass organizations (FA, WU,
CA) in development of CIGs and microfinance and saving services. Based on these and discussions in
the province, the mission recommends following:
Agreed actions
Update the exit strategy with the mission’s agreed actions and submit for PPC
approval
PPMU should advocate for PPC’s commitment in allocating resources for rolling out
the planning process province-wide starting with the 2014 planning
PPMU
Responsibility
PPMU
Agreed date
June 2013
57.
Potential for scaling up. Rated as satisfactory. The scaling up potential of the DBRP has
already been extensively outlined above, including the (i) rollout of MO-SEDP, (ii) pro-poor value chain
development through VC plans, and (iii) WU saving and credit activities.
G.
Other
58.
Impact on physical and financial assets. Rated as moderately satisfactory. By May 2013,
117 km of rural road, 37.5 km lined canals (to irrigate 766 hectares of paddy lands), 10.9 km low-voltage
electricity lines, two bridges and two water supply schemes have been completed and put in use for
benefits of 9.156 households including 2.296 poor households. So far, 256 CIGs are benefited from CIF
investment. The total accumulative contribution by benefiting groups for 210 CIF civil works amounted
VND18.3 billion out of the total investment cost VND208.6 billion. 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.
59.
Impact on food security. Rated as moderately satisfactory. The RIMS baseline survey found of
2009 found that 20% of the sample (183 households) experienced a period of hunger. The 2012 project
survey shows that 17% of the sample (34 households) experienced a period of hunger over the last
12 months. The proportion of households experiencing a period of hunger has decreased, while from the
project surveys it should be noted that the length of the hungry season seems to have increased. Even
though more in-depth analysis would be necessary, survey findings suggest some improvements in food
security. Overall, food security is not a main issue for rural population in Cao Bang.
60.
Impact on incomes. The overall economic impact of project investments will be assessed at
completion. At this stage it appears that that project support has had a positive impact on poverty
reduction in the majority of the fifty communes supported by the various interventions. Likewise the
financial viability and sustainability of CIGs, infrastructure investments, support for value chain
development still need elaboration. However the positive developments in terms of increased production
within value chains covering cow, pig, sugar cane, and tobacco, maize, seed ground nut, soybean and
peanut subsectors are positive indications of satisfactory financial return.
61.
Policy impact. The 6 approved agricultural policies supported by DBRP had a positive impact
on rural development of the province, especially (i) animal diseases are now better controlled in the
province; (ii) more timely accessible services thanks to increased number of community-based private
veterinary and plant protection service providers and village and commune extension workers;
(iii) increased crop yields and animal rearing and profits; (iv) farmers are more satisfied with local
services; (iv) increased number of enterprises following the farming contract policies.
13
H.
Conclusion
62.
The implementation progress of DBRP Cao Bang is assessed as satisfactory for the past year.
The project implementation since the 2012 supervision include (i) some important policy achievements,
(ii) institutionalization of market-based approaches, (iii) private sector partnerships and contract farming,
(iv) improved agricultural demand driven services, (v) farmer’s Common Interest Group improvement,
(vi) rural infrastructure works, (vii) community participation for market-oriented SEDP, (viii) decentralized
project management; and (ix) a sound M&E system.
63.
In terms of pertinent actions to be implemented during the remaining project period the mission
recommends following: (i) increased participation of and benefits to the poor, (ii) institutionalization of
value chain approach, (iii) strengthened business development and rural finance services,
(iv) institutionalization of SEDP, and (iv) reallocation of funds for the remaining project period.
64.
With an accelerated implementation pace and the adoption of series of recommendations as
mentioned above, the mission is quite confident that DBRP Cao Bang will achieve its objectives and be
fully disbursed by closure end of 2014.
14
Appendix 1: Summary of project status and ratings
Basic Facts
Country
Viet Nam
Project ID
Project
Developing Business with the Rural Poor Programme
Date of Update
28-May-2013
Supervising Inst.
IFAD/IFAD
No. of
5
Supervisions
No. of
Implementation
11
Support/Followup missions
1422
Loan/DSF Grant
No.
741
Supp. Loan/DSF
Grant
Financing terms
HC
Last
Last
May Implementation
Supervision 2013 Support/Followup mission
Approval
13-Dec-2007
Agreement
16-Jan-2008
Effectiveness lag 4
Effectiveness
06-May-2008
PAR value
MTR
03-Jun-2011
Current
completion
30-Jun-2014
Current closing
31-Dec-2014
Total costs
USD
Disb. Rate
million
%
48.2
58
35.7
59
IFAD loan
35.0
58
IFAD grant
0.2
75
IFAD Total
5
Last Amendment
Lux Grant in Cao
Bang
3.5
66
Last Audit
Domestic Total
9.0
52
Beneficiaries
1.8
58
Government
(National)
5.1
51
Domes. Fin.
Inst.
2.0
48
No. of extensions 0
Project Performance Ratings
B.1 Fiduciary Aspects
Last Current B.2 Project implementation progress
Last Current
1. Quality of financial management
5
4
1. Quality of project management
5
5
2. Acceptable disbursement rate
4
4
2. Performance of M&E
4
5
3. Counterpart funds
4
5
3. Coherence between AWPB &
implementation
5
5
4. Compliance with loan covenants
5
5
4. Gender focus
5
5
5. Compliance with procurement
5
5
5. Poverty focus
4
4
6. Quality and timeliness of audits
5
5
6. Effectiveness of targeting approach
4
4
7. Innovation and learning
5
4
B.3 Outputs and outcomes
Last Current B.4 Sustainability
Last Current
1. Amplification of Market Access for the
5
Poor
4
1. Institution building (organizations, etc.)
5
4
2. Rural Business Development Services 5
4
2. Empowerment
4
5
3. Improving the Business Environment
4
3. Quality of beneficiary participation
5
5
4. Responsiveness of service providers
5
4
5. Exit strategy (readiness and quality)
4
4
6. Potential for scaling up and replication
4
4
4
15
B.5 Justification of ratings
Ben Tre: The implementation performance of the DBRP is assessed as satisfactory. The mission noted a
consolidation of the positive trends identified during the July 2012 Supervision Mission in particular in relation to:
(i) the support for local capacity development at the district commune levels in areas such as in market-oriented
community, socio-economic development planning (MOSEDP) and construction of minor civil works using forced
accounts; (ii) employment generation for the poor through the establishment of linkages between companies and
Common Interest Groups (CIG) backed by appropriate demand driven training activities; (iii) a very successful
launching of the Savings and Credit Group (SCG) concept through the Women's Union in line with the
recommendation of the July 2012 Supervision; (iv) and initiation of 10% CIF activities in some communes.
Cao Bang: The current implementation performance or likelihood of achieving development objectives of the
DBRP in Cao Bang is ranked as satisfactory. The mission appreciates efforts made by the province agencies and
the project management of DBRP and LD/VIE029 in having obtained quite improved project performance since
the supervision mission one year ago. The annual implementation progress is also assessed as satisfactory. Key
achievements are obtained in the following aspects: (i) Policy interventions,(ii) Private sector partnership and
contract farming,(iii) Access to public agriculture services,(iv) Farmer’s groups empowerment,(v) Rural
infrastructure,(vi) Decentralization and community participation and(vii) Project management.
Overall Assessment and Risk Profile
Last
C.1
Physical/financial
5
assets
C.2 Food security
Current
4
4
4
Overall
implementation
C.3 progress
5
(Sections B1 and
B2)
5
Rationale for implementation progress rating
Ben Tre: Current implementation performance of the DBRP in Ben Tre is assessed as satisfactory. The project
has maintained and improved implementation performance over the last year, particularly in (i) the support for
local capacity development at the district commune levels in areas such as in market-oriented community, socioeconomic development planning (MOSEDP) and construction of minor civil works using forced accounts; (ii)
employment generation for the poor through the establishment of linkages between companies and Common
Interest Groups (CIG) backed by appropriate demand driven training activities; (iii) launching of the Savings and
Credit Group (SCG) concept through the Women's Union in line with the recommendation of the July 2012
Supervision; (iv) and initiation of 10% CIF activities in some communes. Nine months after the last supervision
mission the project has disbursed about USD3 million which is a positive result. The M&E system and financial
management have maintained good quality at all levels.
Cao Bang: The project implementation progress in rated satisfactory since over the last one year it has achieved
very good progress in following the recommendations and agreed actions made by the last supervision mission,
in particular in the following areas: (i) assistance to the local government in research and issue of 6 important
policy documents related to agriculture support services, (ii) institutionalization of market-based approaches, (iii)
private sector partnerships and contract farming, (iv) improved agricultural demand driven services, (v) farmer’s
Common Interest Group improvement, (vi) rural infrastructure works, (vii) community participation for marketoriented SEDP, (viii) decentralized project management; and (ix) a sound M&E system.
Likelihood of
achieving the
development
C.4
objectives
(section B3 and
B4)
5
5
Rationale for development objectives rating
Ben Tre: The project aims at sustainable poverty reduction for rural households through increasing business
development opportunities and participation of the poor in the business activities. Project commune’s poverty rate
decreased by 2.5% from 19,0% in 2011 to 16.5% in 2012. The project M&E system shows that the inclusion of
the poor in project activities is good, as of 70% of CIGs have participation of the poor, around 70% of vocational
16
and agricultural extension training targets the poor, and, among borrowers from CIG fund the participation of poor
is also measured at 70%. The figures show that the project target strategy works well. The project in general has
potential for achieving its development objectives, although it must be noted, that the 2012 SM-identified risk of
agricultural products price fluctuation has had a significant impact in households’ income structures: during 2012
the additional income generation has decreased in 33% of the project households, in contrast to the
corresponding 2011 value of 10%.
Cao Bang: The likelihood for achieving the project objectives is well measured by the M&E system, and rated
satisfactory based on success in following areas: (i) policy interventions through research and endorsed policies,
(ii) institutionalization of market-based approach, (ii) private sector partnership and contract farming, (iii) improved
access to agriculture services, (iv) farmer’s groups empowerment, (v) rural infrastructure through force account
method, and (vi) decentralization and community participation.
C.5
Risks Short description of major risks for each section and their impact on achievement of development
objectives and sustainability
Fiduciary
aspects
Project
implementation
progress
Outputs and
outcomes
Ben Tre: The internal control system of PPMU, DPMOs, and CDBs as well as project
disbursement have continued to perform well. The advances to staffs in PPMU and CDBs
are well controlled. Fund transfers as advances to DPMOs and CDBs also are well
monitored. The management of contracts in PPMU and CDBs has been done
systematically to keep tracks of advances, progress payments strictly followed specific
terms and conditions.
Cao Bang: Project has made significant improvements in financial management compared
to the last year in DPMOs and CDBs. PPMU has been active in reviewing activities,
balancing budget lines, considering changes in exchange rate of SDR, USD to develop a
more realistic AWPB to ensure disbursement progress.
Ben Tre: The mission noted new areas where Ben Tre DBRP need to pay particular
attention: (i) provision of technical assistance and training in climate change adaptive
measures (changing of cropping patterns and shift to livestock production); (ii) improved
access to financial services to start new activities (e.g. cattle or aquaculture) and off-farm
jobs through the provision of a more diversified set of products from the WU and (iii) further
capacity building for CIGs in terms of business development, demand driven vocational
training and market access measures and (iv) improved coordination among line agencies
for the development of actions plans for identified value chains.
Cao Bang: Although improvements are significant, project implementation needs to pay
attention in (i) Target groups' participation and benefits, (ii) BDS and finance services to
CIGs and enterprises, (iii) Business enabling environment, (iv) Sustainable microfinance
services, and (v) Consolidation and institutionalization of innovative approaches.
Ben Tre:
1.1: The PPC should ensure that the PCI improvement action plan will be implemented.
1.2: The province leadership needs to identify a plan to establish a functioning rural BDS
system.
1.3: DBRP and PPC should evaluate, revise and institutionalize the framework for
allocation of funds for PPP development.
2.1: PPMU needs to develop and institutionalize both VC approach and BDS service
system through training and coaching of project staff, province level line agencies and
district officials.
2.2: The project should support DARD to address the issue of new climate change related
diseases.
2.3: Resources should be reallocated from VBARD credit line for SCG activities
implemented by the WU.
3.1: Project is to identify, appoint and develop district level agencies to provide BDS to
CIGs.
3.2: Participatory SEDP should be upscaled to use by all communes in Ben Tre.
3.3: The planning and implementation of 10% CIF activities need to be accelerated in slow
performing communes.
Cao Bang:
1.1: A provincial action plan to improve the Provincial Competitiveness Index was
developed and approved by the PPC, however implementation is not effective
1.2: Support to lead firms in value chains is not properly monitored.
2.1: Weak marketing / business plan support capacity of the VCTFs for supporting the
CIGs’.
2.2: The extension activities by DARD are not linked to the 10% CIF extension activities.
2.3: VBARD lending conditions are strict, few CIGs or SMEs have accessed to the loans.
3.1: No identified institution which could sustainably provide BDS to the CIGs.
17
Sustainability
3.3: The planning and implementation of 10% CIF activities need to be accelerated in slow
performing communes.
Both DBRP provinces have developed an exit strategy with description of arrangements for
the Project Completion Report which should be commissioned ahead of the completion
date end of June 2014. In addition the exit strategies comprise modalities for the transfer
of responsibilities to relevant agencies at various levels and in addition outline how the
DBRP experience can support and complement existing government programmes such
the New Rural development. For the part of Ben Tre, following the final design mission for
the AMD/Mekong project in August the exit strategy will delineate which of the current
DBRP functions shall be continued under that project. In terms of institutional
sustainability, Cao Bang should focus in supporting (i) DPI in institutionalizing MO-SEDP,
(ii) DARD in implementing the NTP-NRD and developing agriculture commodity value
chains, (iii) DOLISA in rural vocational training, and (iv) mass organizations (FA, WU, CA)
in development of CIGs and microfinance and saving services.
Proposed Follow-up in Ben Tre
Issue / Problem
Recommended Actions
Timing
Increasing participation
of and benefits to the
poor:
In order to enhance poverty focus, organize support activities for poor June 2013
households (CIG members and non-members) using 10% of CIF; With the onwards
CIGs as priority target, increase the funds allocated for the women’s saving
and credit groups (WSCG).
Institutionalization of
value chain approach
Consolidation of the value chain action strategy and plans and June 2013
revision/institutionalization of district VCTF composition (to include DARD onwards
and DoIT) and function. Trainings for province and district VCTF relevant
staff, and subsequent technical/financial support for district VCTFs' activities.
Business Development
Service
Strengthen existing ToT trained teams of BDS/CIG support providers in FU, June 2013
WU, CA and private sector. Allocate funds to institutionalized district level onwards
VCTFs to manage BDS support for CIGs and MSMEs in the communes.
Finance services
VBARD explores new lending products to the CIGs; revision of the current June 2013
guidelines for the WSCGs; establishment of WSCG fund under the WU and onwards
development of WU capacities.
Institutionalization of
MOP-SEDP
DPI to take lead with supports from BDRP and PSARD to consolidate the June 2013
manual and to promulgate to all communes in Cao Bang.
onwards
Status
Knowledge management Document and share BDRP good practices/experiences; exchange visits of 2013
and partnership:
CIGs and CDBs; establishment of partnership group among projects in Cao
Bang.
Project management:
Review actual disbursement of each component and subcomponent to July 2013
reallocate project funds among budget lines to implement prioritized
activities; Revise the 2013 AWPB based on the recommendations of SM and
reallocated budget.
Proposed Follow-up in Cao Bang
Issue / Problem
Recommended Actions
Timing
May 2013
onwards
MOSEDP
Further consolidate participatory market-oriented SEDP planning to
integrate all resources mobilized at the commune level.
Support diversification
Further support diversification of agricultural incomes, through extension May 2013
of low-cost production systems suitable for poor households, such as
onwards
cattle, aquaculture, pig/poultry and worm-raising and allocate further
financial support to this end.
MF-BDS linkage
Establish stronger linkages between microfinance activities of the WU
and extension/business training activities.
June 2013
onwards
BDS service
Establish a functioning rural BDS system which can effectively support
rural SMEs in finding markets including a range of products not limited
to coconut sector.
June 2013
onwards
Success stories
Document the initial successful models and organise policy
workshops/dialogues on DBRP innovations in cooperation with central
policy makers and mass organizations.
September
2013
onwards
WU MF manual
Revision of savings and credit manual for the WU.
October
2013
PPP
Evaluate and document performance of pilot PPPs and develop a
province wide policy for PPP development for the agricultural and rural
sectors, including revision and institutionalization of the current
guidelines for transparent allocation of funds for PPP development.
OctoberDecember
2013
18
Status
Climate change
Support DARD to conduct applied research and support CIGs and
farmers in addressing the problem of climate change and crop and
animal diseases.
Rural and microfinance
Carry out (i) a study on the impact of VBARD lending in terms of
Oct 2013 targeting and employment generation, (ii) a study to assess the impact first quarter
of WU SCG support in terms of poverty reduction and adequacy of
2014
lending products, (iii) reallocate funds from the VBARD credit line to the
WU and (iv) allocate funds for international TA support to assist the WU
in MFI development
CIF 10%
Revise the AWPB 2013 for to accelerate implementation of CIF
schemes in the waiting list and the 10% CIF activities proposed by the
CDBs and selected in compliance with the principle and criteria for
allocation of the additional CIF.
19
July 2013
onward
May 2013
Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs
Code
Goal and Objectives
Indicator
Source of verification
Assumptions
Indicator
Code
I
R
Goal
(Impact)
To achieve sustainable
and equitable poverty
reduction and improve
livelihoods of the rural
poor
Development Objective
Rural poor empowered
to
benefit
from
participation
in
improved market in Cao
Bang Province
C1
SC1
1.1.1
Component
1:
Improving
Business
and
Investment
Environment
Sub-component
1.1:
Raising
Provincial
Competitiveness
1.1.1 . Pro-poor policies
to be studied, approved
and implemented
01-I
Number of households with improvements
household assets ownership index*
in
Baseline, mid-term and completion
assessment (RIMS)
02-I
Reduction in prevalence of child malnutrition, by
gender (h/a, w/a, w/h) *
assessment (RIMS)
03-I
Change in position of Cao Bang in the National Human
Development Index
National
Human
Indicator Statistics
04-I
Reduction in the prevalence of people below the poverty
line in targeted areas
DOLISA statistics.
05-I
Increase in average annual income per capita in the
province
DOLISA statistics.
06-R
Number of rural poor households experiencing
improved food security
assessment (RIMS)
07-R
08-R
Decrease in the rate of unemployment in the province
Share of production sold, by commodity, for rural poor
households
DOLISA statistics on employment
Annual Survey of samples of
beneficiaries
(rural
producers,
MSMEs
09-R
Quantity of product sold, by commodity, for rural poor
households
Market Information System
10-R
11-C1
Farm gate prices for strategic commodities
At least 100 of new joint ventures/cooperatives/MSMEs
registered starting 2010 (regarding agricultural production,
at least 5 new enterprises/cooperatives registered)
Market Information System
DPI
12-C1
Provincial gross outputs in up to 5 rural agricultural
commodities increased compared to the previous year,
starting 2010
Statistics Berau
13-SC1
Percentage of private sector investment in maximum 5
strategic rural agricultural commodities increased
compared to the previous year, starting 2011
Annual survey (PPMU)
14-SC1
Cao Bang PCI increased at least 5 ranks in 2013 against
2009.
VCCI
15-1.1.1
16-1.1.1
Up to 8 pro-poor policies studied in Cao Bang till 2012
at least 3 pro-poor policies approved and implemented in
Cao Bang till 2013
Reports from consultants
Provincial People committee
21
Development
- Demand and purchasing
capacity of markets can absorb
increased offer of agro-industry
commodities
Continued
political
commitment to decentralization
of the development process
and poverty reduction
Line agencies are ready to
cooperate to promote an
equitable
business
environment
1.1.2
PCI
improvement
strategy to be approved
and undertaken
17-1.1.2
18-1.1.2
PCI improvement strategy approved by PC in 2011
At least one annual workshop on PCI improvement
chaired by PC starting in 2010
1.1.3
Governance
capacity
and public services of
provincial
agencies
improved
19-1.1.3
Up to 5 departments/agencies in the province awarded
with ISO 9001:2000 till 2013
Sub-Agency of Registration of Cao
Bang/consulting companies
Enterprises supported in
business
registration
procedure
20-1.1.4
At least 70.enterprises per year are supported in business
registration procedure, starting in 2012.
PPC
Sub Component 1.2:
Improving
efficiency
and
impact
of
equitisized enterprises
21SC1.2
At least 1 equitized enterprise has private share in stateowned companies increased, compared to the previous
year, starting in 2010
Equitised enterprises' reports
1.1.4
SC1.2
1.2.1
C2
SC2.1
22SC1.2
Up to 2013, maximum 100 supply contracts signed
between the enterprises and farmers, CIGs
Ownership
structure,
competitiveness,
marketing and technology
of
project-related
enterprises
researched
and applied.
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
23-1.2.1
Up to 3 researches on 3 enterprises in Cao Bang province
implemented and applied till 2013.
Equitised enterprises' reports
PPMU-DPI reports; consulting firms;
24-C2
Land productivity (kg/ha) of maximum 5 rural agriculture
commodities increased compared to previous year,
starting 2010
Annual survey
25-C2
No. of farmers reporting they are engaged in processing
activities increased compared to previous year, starting
2010
Annual survey
26-C2
No. of farmers/rural producers reporting their
productivity has improved compared to previous
year, starting 2010
Annual survey
Sub Component 2.1:
Value
Chain
Development Services
27-SC2.1
Up to 1000 full time job opportunities created by
supported agro-processing MSMEs till 2013
DOLISA
28-SC2.1
Up to 60% of 1,000 people trained have a stable
employment 6 months after training until 2013
DOLISA
29-SC2.1
Up to 3 products certificated with national standard till
2013
Department
Technology
30-SC2.1
Up to 20 enterprises have engaged in new contracts with
farmers and CIGs till 2013.
Reports from enterprises
22
- 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
of
Sciences
&
2.1.1
2.1.1
Value
analysed
and
opportunities for
added identified
chain
key
value
31-2.1.1
/At least two value chains decided by the PPC to be
implemented starting 2010.
Consultant's reports
2.1.2
2.1.2 New and existing
Enterprises trained on
business
management
and
development
of
project-related
value
chains
2.1.3 BDS provided to
MSMEs
and
family
enterprises
32-2.1.2
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
33-2.1.3
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
34-2.1.4
50 communes and 500 CIGs provided with monthly
newsletter, starting August 2010
DOIT and PPMU
35-2.1.4
At least 150 CIGs in the province provided with basic
communication tools in 2012
DOIT and PPMU
2.1.5
Labour
market
information
system
supported and promoted
36-2.1.5
At least one job fair per year held in Cao Bang starting
2010
PPMU; DOLISA
2.1.6
2.1.6 Short-term training
based on labor market
demand
effectively
implemented
37-2.1.6
Up to 2013, At least 500 poor farmers trained, of
whom at least 300 farmers have stable jobs after the
trainings (at least 30% female)
Annual survey from PPMU
2.1.7
2.1.7 National food safe
standard implemented in
the province
38-2.1.7
Up to 5 agro processing enterprises implemented national
food safety standards until 2013
Department
of
Sciences
&
Technology; Division of Food Safety
& Hygiene - DoH
SC2.2
2.2 Farm Productivity
Improvement Services
39-SC2.2
Post-harvesting production loss decreased annually
compared to the previous year starting 2010, by selected
commodities related to value chains
Annual Survey
40-SC2.2
Up to 2500 farmers/rural producers that have adopted
improved technologies/processes promoted by
extension and technical support services till 2013
Annual Survey
41-SC2.2
Up to 2014, awareness of the rural poor towards
environment protection, including climate change
related topics, raised
Annual Survey
42-SC2.2
Up to 90% of target groups know the availability and
quality of extension and technical support services till
2013
PME
2.1.3
2.1.4
23
2.2.1
2.2.2
2.2.3
2.2.1
Extension
staff
received
refresher
training
Rural extension services
expanded
to
private
sector
43-2.2.1
Up to 450 extension staff received refresher trainings
(at least 50% females) till 2013
DARD
44-2.2.2
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
45-2.2.3
Up to 500 demonstrations conducted until 2013
Reports from DARD, PPMU, and
training units
46-2.2.3
Up to 25000 farmers trained, (at least 30% female) up
to 2013
Reports from DARD, PPMU, and
training units
47-2.2.3
Number of farmers have been trained on relevant
climate change topic per year, starting from 2012
Drought and floods may
happen and last for long time,
which may buried production
areas
2.2.4
Research and extension
projects requested by the
CIGS implemented
48-2.2.4
Up to 10 research and extension projects requested by
the CIGs implemented until 2013
Reports from PPMU and training
units
SC2.3
2.3 Rural Finance
49-SC2.3
% of loans disbursed increased compared to previous
year, starting 2010
VBARD
VBARD
provide
proper
information for PPMU in a
timely manner.
50-SC2.3
No. of processing units provided with loans increased
compared to previous year, starting 2010
VBARD
VBARD is willing to work with
PPMU
51-SC2.3
Annual increase of VBARD portfolio in targeted
communes compared to previous year, starting 2010
VBARD
2.3.1
2.3.1
Project
target
groups have access to
rural financial products
52-2.3.1
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
2.3.2 VBARD staff trained
in pro-poor financial IFAD
procedures and practices
53-2.3.2
Up to 100 VBARD staff in the province trained in IFAD
pro-poor financial procedures and practices till 2013
units
2.3.3
2.3.3 CIGs and mass
organizations' members
trained in rural financial
management and use
54-2.3.3
At least 10 000 members of CIGS and mass
organizations trained on usage and management of credit
for production until 2013
units
2.3.4
Long-term loans provided
to
rural
farmers,
producers, and off-farm
MSME for investments in
agro-forestry,
and
processing
55-2.3.4
Up to 100 long-term relevant lending contracts with
project target groups provided by VBARD until 2013 (at
least 30% female)
VBARD, PPMU
24
2.3.5
2.3.5
Loans
for
investments on contract
farming and marketing
provided
to
farmers,
traders, processors
56-2.3.5
Up to 100 lending contracts with farmers, business and
processing units for investment on contract farming and
marketing until 2013 (at least 30% female)
VBARD, PPMU
C3
Component
3:
Amplification of Market
Access for the Rural
Poor:
Rural
poor
empowered
to
fully
participate in markets
and profit from market
opportunities
57-C3
total production outputs in targeted communes increased
compared to previous year, starting 2010
DPMO
Target group formed with the
ownership
of
market
development process
58-C3
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
59-C3
Number of contracts between farmers/rural producers and
traders/MSMEs increased compared to previous year,
starting 2010
DPMO
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
60-SC3.1
No. of CIGs functioning increased compared to
previous year, starting 2010
Annual survey
61-SC3.1
At least 30% of CIGs formulated having stable sale
contracts until 2013
Annual survey
62-3.1.1
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
3.1.2CIG
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
63-3.1.2
Up to 20 000 members trained on CIG management,
value chain approaches, marketing and savings/credits
(at least 40% females) until 2013
CDB
64-3.1.3
Up to 100 workshops for CIGs in 10 project districts until
2013
Reports from PPMU, DPMO and
CDB
SC3.1
3.1.1
3.1.2
3.1.3
25
Project financial capacity
SC3.2
3.2:
Participatory
Planning
and
Investment
Prioritisation
Objective: Village level
participatory planning
process enhanced and
successful
in
identifying
highest
priorities for investment
and business linkages
65-SC3.2
At least 90% of households participated in village level
planning until 2013 (at least 40% female)
CDB
3.2.1
3.2.1 Staff at all levels
trained on participatory
SEDP
66-3.2.1
Up to 500 staff at all levels trained on SEDP (at least
30% females) till 2013
PPMU, DPMO, CDB
3.2.2
3.2.2
CIG
members
trained in SEDP
67-3.2.2
Up to 1000 key members (at least 30% female) trained
on SEDP until 2013
CDB, CIG
3.2.3
3.2.3 Commune SEDP
established
in
a
participatory
planning
exercise and approved
accordingly
68-3.2.3
50 commune SEDPs established in a participatory
planning exercise and approved each year, starting
2010
DPMO, CDB
69-3.2.3
At least 75% of village households participating in village
level planning each year
DPMO, CDB
3.3: Commune
Investments - Objective:
Village and commune
level infrastructure
effectively utilised
70-SC3.3
50/50 Commune Supervision Boards of CIF effectively
work until 2013
DPMO, CDB
71-SC3.3
No. households benefited from small infrastructure works
increase annually
72-SC3.3
No. CIGs have access to CIF works for market linkage
increase
73-SC3.3
An increase in No. hectare of agricultural land
irrigated annually
SC3.3
3.3.1
3.3.1 Procedure of CIF
decentralisation
and
management established
74-3.3.1
Procedure of CIF decentralisation and management
established and implemented in 2009
PPMU, CBD
3.3.2
trained
on
CIF
management
75-3.3.2
At least 200 staff at all levels (at least 30% females)
trained annually on CIF, starting 2010
PPMU, DPMO, CDB
3.3.3
3.3.3 Commune
investment priorities
included in SEDP
implemented
76-3.3.3
145 Km of road built
30 Number of irrigation schemes built.
2 water supplies built
5 electricity schemes built
at least 50 O&M groups established.
two rural markets built
CDB
26
C4
4.1
4.2
4.3
Component 4 Project
Management.
Project
management
implemented effectively
at all levels
77-C4
78-C4
AWPB approved as requested
Progress report & financial report submitted as requested
PPMU
PPMU
79-C4
80-C4
RIMS report submitted as requested
Capacity of at least 50% staff improved after trainings til
2013
PPMU
Reports of trainers
4.1. Project management
structures at 3 levels
established
and
equipped;
4.2. Project staff at 3
levels
recruited
and
trained
81-4.1
82-4.1
Offices at 3 levels equipped
Inventory list established and annually updated
PPMU
PPMU
83-4.2
At least 30% project staff at different levels trained by
subject (at least 30% females) starting 2010
PPMU
84-4.2
Job description developed and introduced for at least 50%
of key personnel regarding PPMU by 2010
PPMU
4.3
Communication
activities among 3 levels
regularly maintained
85-4.3
86-4.3
PSC meetings held twice per year
PPMU meetings held twice per month
PPMU
PPMU
87-4.3
Meeting between PPMU and DPMO held once per
quarter
Meeting between CDB and DPMO held once per quarter
In 2008, PIM & FMM enacted and implemented
In 2009, M&E and KM systems established &
implemented
PPMU
4.4
4.4 M&E, KM,
established
implemented
FMM
and
88-4.3
89-4.4
90-4.4
4.5
4.5 Compliance
undertaken
Audit
91-4.4
92-4.5
M&E reports submitted annually as regulated
At least 50% audit recommendations carried out annually
27
DPMO
PPMU
PPMU
PPMU
PPMU
Whether there are enough
staff in PPMU, DPMOs, and
CDBs
Appendix 3: Summary of key actions to be taken within agreed timeframes
Agreed action
Responsibility
Agreed date
Overall recommendation
Increasing participation of and benefits to the poor: Organize support activities using 10% of CIF for poor
household as non-members of CIGs; Increase the funds for the women’s saving and credit groups (WSCG) and
establish more WSCGs with at least 50% of poor households.
PSC/PPMU/DPCs/CPCs
Institutionalization of value chain approach: consolidation of the value chain action strategy and plans and
revision/institutionalization 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.
VCTF, DARD, DOIT, DPCs
Business Development Service: Strengthen 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
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.
VBARD, WU
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
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
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
Component 1
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 propoor value chains selected by the VCD-TF and the project at provincial and district levels.
29
PPC and line agencies
June 2013 onward
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
June 2013 onward
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
June 2013 onward
Assess private sector involvement in different supported value chains. Invite investment and support enterprises
for value chains with lack of processers and buyers.
LD VIE029, IPCA
June 2013 onward
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, PPMU, LD VIE029
June-July 2013
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, PPMU, LDVIE029
June-July 2013
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
June-December 2013
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
January-April 2014
Investigate new plant diseases and develop climate smart agriculture (CSA) solutions.
DARD and PPMU
October-December 2013
Facilitate DoLISA-IPAC collaboration for replication of direct enterprise-vocational training link.
PPMU, DoLISA, IPAC
August 2013 onward
Revise the Manual for IFAD support fund via VBARD towards simplifying the criteria for assessing the
performance of CIGs.
DBRP, VBARD, IFAD
August 2013
Conduct an assessment of the impacts of VBARD loans for CIGs member to draw lessons learnt and prepare
for reporting the.
DBRP
ASAP
Establish the CIGs Development Fund under PWU.
PWU with supports from DBRP
June 2013
Revise the CIGs 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.
June 2013
Component 2
30
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.
June 2013
Provision of technical support for PWU including external consultancy supports to revise the Fund Manual, to
develop a Fund Business Plan, and support as required from PPMU for capacity building.
DBRP
June 2013 till Dec 2014
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
June-July 2013
Project will allocate resources to district VCTFs to manage implementation of basic market and
business/investment plan coaching to CIGs;
PPMU, VCTFs
August 2013
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;
DPCs, DPMOs, VC taskforce, DARD,
DoIT
September 2013 onwards
Project will support the province and districts to decide how to include CIG development in strategies to promote
agricultural commodities production;
PPMU, PPC, DPCs
June-August 2013
In response to decision on provincial CIG development, project will continue building capacity of a group of local
CIG trainers.
PPMU
September 2013 onwards
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, PMU, LD VIE/012, PSARD
Quarter II 2013 onwards
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, PMU, LD VIE/029, PSARD
Qtr II 2013
Conduct a training course on participatory SEDP planning for 76 none-project communes
PMU, LD VIE/029, DPI, District
planning and financial sections
Quarter II 2013
The PPC, DPCs shall direct and commit budget allocation for up-scaling and institutionalization of the
participatory SEDP planning process for all communes in Cao Bang province.
PPC. DPI, DPCs
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.
PMU, DPMOs
Component 3
31
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; (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.
PMU, LD VIE/029, DPMOs, district
planning & financial sections, District
industrial and trade sections
Quarter II 2013
Prepare and submit to IFAD for approval before implementation of a supplemental plan for additional CIF civil
works using the remaining 90% CIF.
PMU, DPMOs, CMBs
Quarter II 2013
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
PPMU, LD VIE029, NTP-NRD office
June 2013 onwards
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
June 2012 onwards
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 small-scale infrastructure
schemes. Ensure full budget delivery by end of the project.
PSC, PPMU
June2013 onwards
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
June 2013 onwards
PPC/DPI
June 2013 onwards
Conduct detail surveys to understand the poverty reason in the communes and district where the poverty
reduction is slow (and even negative) and to propose addition poverty measures out of poor household rate
DBRP
During PCR preparation
Revise the indicators in the log frame to remove irrelevant indicators or adjust the target for some indicators
PPMU
ASAP
Implement the SM 2012 recommendation on gender training
DBRP
July 2013
PPMU
Q2/2013
Project implementation
Establish a partnership working group consisted of representatives from the donor-supported projects for
frequent coordination meetings and knowledge sharing.
Fiduciary Aspects
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.
32
Allocate the remaining budget for each CDB
PPMU
Q2/2013
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.
PPMU, DPMO, CDB
As of 5/2013
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
As of 5/2013
PPMU
June 2013
Sustainability
Update the exit strategy with the mission’s agreed actions and submit for PPC approval
PPMU should advocate for PPC’s commitment in allocating resources for rolling out the planning process
province-wide starting with the 2014 planning PPMU
33
Appendix 4: Physical progress measured against AWP&B, including RIMS indicators
Cumulative
Output
Indicator
Unit
Logframe
target
Cumulative
%
Achievement
2011
Cumulative
%
Achievement
2012
%
Achievement
3/2013
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
1.1.1 . Pro-poor policies
Number
8
4
50
9
113
9
113
to be studied, approved
and implemented
Number
3
2
67
6
200
6
200
Number
1
1
100
1
100
1
100
Number
4
4
100
5
125
5
125
Number
5
2
40
5
100
5
100
Number
140
0
n.a
102
73
102
73
Number
3
3
100
3
100
3
100
1.1.2 .PCI improvement
strategy to be approved
and undertaken
1.1.3 Governance
capacity and public
services of provincial
agencies improved
1.1.4 Enterprises
supported in business
registration procedure
at least 3 pro-poor policies approved and
implemented in Cao Bang till 2013
PCI improvement strategy approved by PC in 2011
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
At least 70.enterprises per year are supported in
business registration procedure, starting in 2012.
Sub-component 1.2: Improving Efficiency and Impact of Equitized Enterprises
1.2.1 Ownership
At least 1 equitized enterprise has private share in
structure,
state-owned companies increased, compared to the
competitiveness,
previous year, starting in 2010
marketing and technology
of project-related
enterprises researched
and applied.
35
Component 2: Rural Business Development Services
Sub-component 2.1: Value chain development services
2.1.1 Value chain
analysed and key
At least two value chains decided by the PPC to be
opportunities for value
implemented starting 2010.
added identified
2.1.2 New and existing
Enterprises trained on
Up to 2012, at least 100 staff of new and existing
business management
enterprises in Cao Bang province trained in business
and development of
management and development (at least 30% females)
project-related value
chains
2.1.3 BDS provided to
Up to 200 family enterprises and MSMEs in the
MSMEs and family
province accessing BDS until 2013
enterprises
2.1.4 Market information
50 communes and 500 CIGs provided with monthly
system established and
newsletter, starting August 2010
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
2
0
0
0
0
3
150
Number
100
45
45
105
105
105
105
Number
women
30
12
40
54
180
54
180
Number
200
24
12
175
88
175
88
Number
40
16
40
28
70
31
78
At least 150 CIGs in the province provided with basic
communication tools in 2012
Number
150
200
133
200
133
200
133
At least one job fair per year held in Cao Bang starting
2010
Number
4
2
50
3
75
3
75
500
114
22.8
199
40
199
40
300
69
114
38
114
38
150
62
41.3
137
91
137
91
5
3
60
4
80
4
80
Number
total
450
227
50
359
80
359
80
Number
women
225
85
38
152
68
152
68
Number
50
34
68
53
106
53
106
Up to 2013, At least 500 poor farmers trained, of
whom at least 300 farmers have stable jobs after the
trainings (at least 30% female)
Number
total
No.
Poor
Number
women
Up to 5 agro processing enterprises implemented
national food safety standards until 2013
Number
2.2 Farm Productivity Improvement Services
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
At least 50 private agents/agencies in the province
offered rural extension services up to 2013
36
Up to 500 demonstrations conducted until 2013
2.2.3 Demonstrations
conducted and farmers
trained
Number
500
267
53
368
74
371
74
Number
total
25,000
19,862
79
29,560
118
30,330
121
Number
women
7,500
8843
118
12,474
166
12,790
171
Number
total
nt
n.d
n.a
n.d
n.a
770
n.a
Number
women
nt
n.d
n.a
n.d
n.a
316
n.a
Up to 10 research and extension projects requested by
the CIGs implemented until 2013
Number
10
3
30
3
30
3
30
At least 1000 households, CIGs and MSMEs in the
province have access to long-, medium-, short-term
loans until 2013 (by gender)
Number
1,000
1477
148
2,857
285.7
2,857
286
Up to 100 VBARD staff in the province trained in IFAD
pro-poor financial procedures and practices till 2013
Number
100
50
50
62
62
62
62
At least 10 000 members of CIGS and mass
organizations trained on usage and management of
credit for production until 2013
Number
10,000
4,716
47
8,558
86
8,857
89
Number
total
100
n.d.
n.a.
n.d
n.a
n.d
n.a
Number
women
30
n.d.
n.a.
n.d
n.a
n.d
n.a
Number
total
100
1
1
2
2
2
2
Number
women
30
1
3
2
6.7
2
7
Up to 25000 farmers trained, (at least 30% female) up
to 2013
Number of farmers have been trained on relevant
climate change topic per year, starting from 2012
2.2.4 Research and
extension projects
requested by the CIGS
implemented
2.3 Rural Finance
2.3.1 Project target
groups have access to
rural financial products
2.3.2 VBARD staff trained
in pro-poor financial IFAD
procedures and practices
2.3.3 CIGs and mass
organizations' members
trained in rural financial
management and use
2.3.4 Long-term loans
provided to rural farmers,
producers, and off-farm
MSME for investments in
agro-forestry, and
processing
2.3.5Loans for
investments on contract
farming and marketing
provided to farmers,
traders, processors
Up to 100 long-term relevant lending contracts with
project target groups provided by VBARD until 2013
(at least 30% female) (removed after MTR)
Up to 100 lending contracts with farmers, business
and processing units for investment on contract
farming and marketing until 2013 (at least 30% female)
37
Component 3 Amplification of Market Access for the Rural Poor
Component 3.1: Enhancing Common Interest Groups - Objective:
CIGs formulated in the project areas on the base of voluntary and collective interests of the members
Up to 500 CIGs in 10 project districts in Cao Bang
3.1.1 New CIGs formed
formulated. At least 70% of poor households
Number
500
with high participation of
participated, by types of business and production until
poor households
2012
3.1.2 CIG members
Number
20,000
trained on group
total
management, value
Up to 20 000 members trained on CIG management,
Number
chains approaches,
value chain approaches, marketing and
8,000
women
savings/credits
savings/credits (at least 40% females) until 2013
3.1.3 Networking and
contract farming
promoted among CIGs,
Number
100
buyers, and sellers of
Up to 100 workshops for CIGs in 10 project districts
inputs
until 2013
550
110
469
94
469
94
4,003
20
8,142
41
8,441
42
1899
24
3,705
46
3,868
48
22
22
31
31
33
33
Sub-component 3.2: Participatory Planning and Investment Prioritization
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
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
At least 75% of village households participating in
village level planning each year
Number
total
500
517
103
584
117
584
117
Number
women
150
216
144
235
157
235
157
Number
total
1,000
1074
107
1,407
141
1,407
141
Number
women
300
475
158
475
158
475
158
200
100
50
150
75
150
75
75
76
101
72
96
72
96
1
1
100
1
100
1
100
Number
total
800
490
61
1,126
141
1,126
141
Number
women
240
153
64
382
159
382
159
Number
%
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
trained on CIF
management
At least 200 staff at all levels (at least 30% females)
trained annually on CIF, starting 2010
Number
38
145 Km of road built
Km
30 Number of irrigation schemes built.
Number
3.3.3Commune
investment priorities
included in SEDP
implemented
2 water supplies built
Number
5 electricity schemes built
Number
two rural markets built
Number
at least 50 O&M groups established.
Number
Component 4: Project management system implemented effectively at different levels
Offices at 3 levels equipped
4.1 Project management
Number
structures at 3 levels
established and
Inventory list established and annually updated
equipped;
Number
Number
total
At least 30% project staff at different levels trained by
Number
4.2 Project staff at 3
subject (at least 30% females) starting 2010
women
levels recruited and
trained
Job description developed and introduced for at least
50% of key personnel regarding PPMU by 2010
PSC meetings held twice per year
%
Number
4.3 Communication
activities among 3 levels
regularly maintained
4.4 PIM, M&E, KM, FMM
established and
implemented
PPMU meetings held twice per month
Number
Meeting between PPMU and DPMO held once per
quarter
Meeting between CDB and DPMO held once per
quarter
In 2008, PIM & FMM enacted and implemented
Number
Number
Number
In 2009, M&E and KM systems established &
implemented
M&E reports submitted annually as regulated
Number
Number
4.5 Compliance Audit
undertaken
At least 50% audit recommendations carried out
annually
%
145
18
12
107
74
107
74
30
8
27
30
100
30
100
2
1
50
2
100
2
100
5
4
80
5
100
5
100
2
1
50
1
50
1
50
50
0
0
50
100
50
100
61
61
100
61
100
61
100
5
3
60
4
80
4
80
NT
358
n.a.
430
n.a.
430
n.a
NT
148
n.a.
169
n.a.
169
n.a
50
100
200
100
200
100
200
12
7
58
10
83
12
100
144
84
58
116
81
120
83
24
14
58
17
71
19
79
220
125
57
166
75
186
85
2
2
100
2
100
2
100
2
2
100
2
100
2
100
6
4
67
5
83
5
83
NT
n.d.
n.a.
60
n.a
60
n.a
39
Appendix 5: Financial: Actual financial performance by financier; by component and disbursements by
category
Table 5A:
Financial performance by financier (USD'000) as of 30/04/2013
Financier
Approval
(USD'000)
Disbursements
(USD ‘000)
Per cent disbursed
(%)
17,218
549
3,489
2,533
1,000
1,025
25,814
11,240.17
396.00
2,314.85
1,228.79
457.36
251.11
15,888.27
65.28
72.13
66.35
48.51
45.7
24.5
61.55
IFAD loan
IFAD grant
Lux Development
Government of Vietnam
VBARD
Beneficiaries
Total
Note: Disbursement of IFAD loan is exclusive of the advance of USD 2.5 million to PPMU' account and USD 0.5 million to VBARD's account
Disbursement of VBARD is proportionally 20% and 80% of VBARD and IFAD Loan respectively
Table 5B:
Financial performance by financier by component (USD ‘000) - as of 30/04/2013
IFAD loan
Approva
Component
l
Actual
Approv
al
%
Lux DEV
Actual
VBARD
Appro
val
Actual
%
I
133
142
107
861
456
53
II
5,163
2,837
55
376
150
40
III
8,908
6,334
71
659
325
2,295
719
17,218
1,927
84
1,594
11,240
65
3,489
IV
Unallocated
Total
Government
Approva
l
Actual
%
Beneficiares
Approv
al
Actual
%
%
Approva
l
Total
Actual
%
34
0.96
3
1,028
599
58
205
16
8
6,744
3,461
51
49
1,131
301
27
11,723
7,211
62
1,384
87
1,163
911
78
5,052
4,221
84
2,315
66
2,533
1,229
49
24,546
15,492
63
1,000
1,000
457
457
46
46
41
1,025
1,025
251
251
24
24
Table 5C: IFAD loan disbursements (SDR, as at 30/4/2013)
Category
Category description
Original
Allocation
Revised
Disbursement W/A pending
Allocation
Balance
Per cent
disbursed
(%)
I
C ommune Investment Funds
5,217,000
5,790,000
3,402,875.13
91,487.07
2,295,637.80
60.35
II
C redit and Loan Assurance
2,650,000
1,593,000
867,791.16
331,279.40
393,929.44
75.27
III
C ivil works
121,000
98,000
97,608.58
391.42
99.60
IV
C ontract services
216,000
561,000
312,523.74
202,715.09
63.87
V
1,130,000
1,437,000
1,438,955.52
(1,955.52)
100.14
VI
Technical assistance, traning and
studies
Vehicles, equipment and goods
280,000
352,000
278,838.22
73,161.78
79.22
VII
Business forum and fairs
292,000
91,000
8,566.31
82,433.69
9.41
VIII
Salaries
412,000
516,000
215,491.67
4,909.02
295,599.31
42.71
XI
Operation and maintenace
198,000
251,000
207,404.38
7,889.42
35,706.20
85.77
X
C ontigency
454,000
281,000
0.00
281,000.00
1,600,224.23
(1,600,224.23)
322,866.03
(322,866.03)
Initial deposit to PPMU C ao Bang
Initial deposit to VBARD for C ao Bang
Total
10,970,000 10,970,000 8,753,144.97
42
45,761.17
481,326.08
1,735,528.96
-
84.18
Appendix 6: 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
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
43
Compliance
Status/Date
Complied
Complied
Complied
Remarks
Section
2.05.
2.06
2.07.
SECTION
3.01.
3.02.
Covenant
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
5.2.1(c)) in the respective Programme Province (collectively, “AWPBs”; individually, the “AWPB-BT”, the
“AWPB-CB”, and “AWPB-VBARD”). The draft AWPBs shall include, among other things, a detailed
44
Compliance
Status/Date
Complied
Complied
Complied
Partially Complied
Remarks
Section
SECTION
3.03.
Covenant
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
“VBARD Provincial Branch Account BT”, the “VBARD Provincial Branch Account CB” and, collectively the
“VBARD Accounts”).
45
Compliance
Status/Date
Complied
Remarks
Section
SECTION
3.04.
SECTION
3.05
3.06
4.01.
4.02.
Covenant
(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.
(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
46
Compliance
Status/Date
Complied
Complied
Complied
Complied
Not fully complied
Remarks
Section
4.03.
4.04.
4.05.
5.01
Covenant
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
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
47
Compliance
Status/Date
Complied
Not yet applicable
Not yet applicable
Complied
Remarks
Section
5.02
7.01.
Covenant
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
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
48
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
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
people.
49
Compliance
Status/Date
Complied
Complied
Complied
Complied
Partially complied
Complied
Complied
Remarks
Section
Para 5.2
Para 5.3
Para 5.4
Covenant
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
Development Boards (CDBs) and Community Supervision Boards (CSBs) in each of the Communes of the
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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;
(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
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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.
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
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
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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;
(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;
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(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)
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
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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
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
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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
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;
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(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
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.
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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
(ii) Limited International Bidding
(iii) National Competitive Bidding
(iv) International or National Shopping
(v) Direct Contracting
(vi) Procurement from Commodity Markets
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(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
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
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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 7: Knowledge management: Learning and Innovation
Learning: What has worked particularly well in this project during this period? What have been
the reasons for this?
CIG development: Performance of the CIG development has been improved. About 90% of CIG
households reported positive effects of CIG membership. Main positive changes include:
(i) Membership in CIGs is now voluntary-based, and awareness of project, province and district staff is
raised regarding requirements of market-orientation and voluntarism in all CIG activities; (ii) The 469
CIGs have been classified based on their market access and group functions, providing useful
information for design of improved CIG support; (iii) Practical pro-poor enterprise partnership models
in CIG strengthening are set up in different parts of project VCs such as sugar cane and tobacco raw
material supply, livestock feed supply, seedling production and handicraft weaving; (iv) 175 of the
CIGs have active savings and social funds (total 385 mil VND), establishing required savings habit
and small collateral for forthcoming WU microlending; (v) During project duration 8441 members of
CIGs have received capacity building through trainings and workshops, focusing in agricultural
productivity and establishment of the CIG and savings activity; (vi) Poverty rate among the CIG
households reduced from 54.3% in 2011 to 38.6% in 2012. Such improvements are thanks to
(i) continued technical assistance from the LD VIE/029; (ii) close monitoring and coaching from the
DBRP staffs at different commune and district levels; and (iii) enhanced capacity of staffs from the
WU and FA to support the CIG development directly. Taking into account of some identified areas for
improvement, as highlighted in the AM, the PPMU and LD VIE/029 will work together with the WU,
FA, and project staffs at district and commune levels in order to improve quality of the current CIG
performance.
Toward institutionalization of the pro-poor value chain approach: The supervision team has
noted a wide range of satisfactory activities implemented by DARD, with support from DBRP and LD
VIE/029, under this sub component: (i) formulation of 2013-2015 strategy for development of agro
value chains in Cao Bang; (ii) design of provincial action plans for upgrading 3 main agro value chains
(H’mong cow, black pig, and vermicelli-arrowroot) ready for PPC approval; (iii) a value chain analysis
and action plans for upgrading agro value chains in 10 districts; (iv) establishment of Value Chain
Task Force under DARD and in 10 project districts; and (v) establishment of improved linkages
between CIGs and local enterprises, cooperatives, and local traders in different value chains. These
changes are thanks to (i) improved technical and financial support from the DBPR and LD VIE/029;
and (ii) increasing awareness on the importance of pro-poor value chain approach by DARD, DOIT
and project districts. However, as current staffs assigned to the new VCTFs work mainly part-time,
and lack prior experiences on market development and how to support the CIGs and other chain
actors, this approach might take time before it will become the government’s own practice.
Force Account: The application of “force account” method for construction of 61 small-scaled CIF
civil works such as village roads and lined irrigation canals under the DBRP using intensive unskilled
rural labours showed advantages compared to the traditional method of contracting companies. The
method should be replicated for implementation of the ongoing new rural development programme
because: (i) it’s easier to mobilise local community contribution in labours (70% - 90% labour cost) or
in kinds; (ii) saving costs for designs, procurement and project management; (iii) it allows for utilization
of local materials; and (iv) helps improve ownership of local community as well as sustainability of the
schemes after the construction.
Financial management. Monthly, PPMU's accountants work with DPMOs on financial settlement,
check cost norms and eligibility of expenses, collect accounting documents from all DPMOs and
CDBs. All the monthly reviews follow a check list with 7 steps, which are clearly and scientifically
designed. The check list is enclosed with minutes of accounting documents handover which are
classified into different categories to facilitate the update to accounting software and preparation of
WA of PPMU. This good practice is thanks to efforts made by the PPMU recently following
recommendations from the previous supervision missions.
61
Learning: What has not worked so well? What have been the reasons?
The Provincial Competitiveness Index (PCI): The overall score of the provincial competitive index
(PCI), despite continued efforts from the PPC and line agencies, continues to be low leaving Cao
Bang 61th among 63 provinces. Indices without improvement are: time cost, informal charges, proactivity and leadership, skilled labour, and legal institutions. These are due mainly to weak
enforcement for the implementation of PCI action plan by the Provincial People’s Committee and line
agencies. Without their stronger efforts, it is difficult for Cao Bang to achieve its initially set target of
“PCI increased at least 5 ranks in 2013”.
Financial management: Although each Unit of the PPMU has been monitoring well on
implementation progress and payment of contracts, there is no unified forms to consolidate data that
allows for comparison or regular updates between technical sections and the accounting unit. As a
result, the consolidation of disbursements based on the exchange rate of SDR and USD takes time.
This is because of (i) a lack of consolidated table of WAs which allows for monitoring disbursement
not only by categories but also by components; and (ii) high turnover of accounting staff at all levels,
which poses difficulties in maintaining the accounting and financial information system.
Rural Financial Services through VBARD: Since the VBARD is a commercial bank and intends to
secure their capital through strict procedures on collateral evidence, the rural finance sub-component
has not been able to provide assistance to cooperatives and private firms working in pro-poor value
chains and developing market linkages of the CIGs. The poverty targeting of this component is very
poor, with only 15.7% of the loans were given to the poor households. There is very little connection
between the projects CIGs development work with the rural finance. The discussion with CIGs
revealed a huge borrowing demand from the members, but only 12% of the IFAD supported loans via
VBARD reached the CIGs member. Second, difficulties facing CIGs member is the requirement for
collateral to be hold by VBARD (for instance the Land Use Right Certificate must be kept by VBARD
as the condition for disbursement). In addition, the IFAD manual for lending CIGs group defines too
many criteria to assess the performance of CIGs (15 criteria) and those Criteria are not clear, making
it difficult to be complied with.
Innovation: Describe any interesting innovation noted during supervision
Commune Social-economic development planning: The project has been testing and supporting
the Department of Planning and Investment with capacity to support actual implementation at the
commune and district levels. This approach contains some innovative features such as (i) consultation
with commune groups and poor people on their needs and priorities for economic development and
poverty reduction; (ii) integrate information from value chain analysis and action plan into the
commune SEDP for proper planning and budgeting and implementation; and (iii) more active
participation of commune-based enterprises and cooperatives into the planning process in order to
ensure that activities supported by the commune SEDP will lead to pro-poor value chain development.
Annual CIG Classification. In order to understand the nature of economic activities and group
management of the 469 CIGs, the project together with LD has implemented a thorough CIG
classification survey. The classification method divides all CIGs to three categories as follows. Class
1: CIGs with strong linkage to market, Class 2: CIGs with medium linkage to market, and Class 3:
CIGs with duties of food security. As result of the surveying we now know that 125 CIGs are of class
1, 209 of class 2 and 135 of class 3. The classification helps province to understand what are the
training needs of different CIGs and design targeted CIG improvement activities.
Innovation: How might this be replicated by others, or upscaled here?
SEPD rolling out: In order to assist the province in institutionalizing the SEPD, the project has been
supporting the Provincial Politics School with a 3-day training curriculum on marketed 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.
62
Annual CIG Classification Before considering replication in other IFAD projects, the classification
method would benefit from some revision. The current version focuses in individual households'
production and marketing improvements and CIG group management. The more ambitious targets of
joint marketing and joint production improvement still have limited weight in the survey, thus leaving
project without in depth information on which CIGs would benefit from becoming Cooperative Groups
or Cooperatives. Therefore, the BDPR, with technical assistance from the LD VIE/029, would have to
work with the WU, FU, and CA to improve the guideline and build up capacity of these organizations
in implementation and replication.
63
Appendix 8: Progress Against Previous Mission
Recommendations.
Agreed Action
Responsibility
Agreed
date
Progress
in
completion
of action
1.
Decentralization of project activities: Review the remaining project
budget and make necessary adjustments to increase allocations for District and
Commune People’s Committees (DPCs), to support implementation at those levels
in terms of improved targeting of poor households. Poverty reduction targets should
be set for each commune and district and Chairmen’s of DPCs and CPCs will take
the leadership and be held accountable for results.
PPC and
PPMU
Q3-4/2012
In Progress
2.
Improved targeting: Develop a financial incentive scheme for CIG
establishment and the improved participation of poor households in the existing
CIGs. Develop guidelines to this effect
PPC and
PPMU
Q3-4/2012
In Progress
3.
Capacity building: Improve the utilisation of the 10% CIF budget at the
communal level, especially for CIGs with high rate of poor and near poor
households to improve of these institutions. As required other poor households
outside CIGs may also be supported under the 10 % CIF budget
PPMU,
DPMOs and
CDBs
Q3-4/2012
In Progress
4.
Increase performance of CIGs: Maintain the annual evaluation and
classification of CIGs and inform about results within the community in a transparent
manner to increase the competition among groups. Continued support and
allocation of matching grants should be linked to the evaluation.
PPMU,
DPMOs and
CDBs
Continuous
In Progress
5.
Linkage between CIGs and enterprises: Strengthen the support for the
establishment of linkages between the CIGs and enterprises or private traders
along selected value chains. Facilitate cooperation among CIGs and input
providers to secure quality of services at lower cost.
PPMU,
DPMOs and
LD VIE/029
Since
7/2012
In Progress
6.
Action plans for value chain development: Complete and approve action
plans for upgrading of selected value chains (including those across districts and
communes) for all 10 district and 50 communes and facilitate coordination among
agencies for implementation of such plans.
Value chain
task force,
DARD, DOIT,
DPMOs, LD
VIE/029
Since 712/2012
In Progress
7.
SEDP: Cao Bang PPC to develop a strategy and mobilise resources for
rolling out the SEDP process in communes across the whole province.
PPC and DPI
Q3/2012
In Progress
8.
Manual for CIF micro-scale infrastructure: The preparation and approval
by the PPC of a Manual for CIF micro-scale the implementation of Infrastructure
works/facilities using Force Account procedures using community labor. Finance
instructions for this including procedures for liquidation/hand over should be
developed by DoF and the Provincial Treasury
PPMU, DOF,
Treasure and
LD VIE/029
JulyDecember
2012
In Progress
9.
Exit Strategy: The development and approval of an exit strategy for the
project outlining roles and responsibilities of People’s Committees and line agencies
at different levels. The exit strategy shall be integrated into the annual work plans of
relevant parties to ensure the institutional sustainability at DBRP closing.
PPC, PPMU
and LD
VIE/029
Q3-4/2012
In Progress
By Component
Agreed Action
Responsibility
Agreed
date
Progress in
completion
of action
PPMU and LD
VIE/029
7-12/2012
Done
LD
VIE/029,
CVTF, PPMU
7-8/2012
Done
Component 1
Establish criteria for selection of companies with priority to those with most
outreach to CIGs and farmers. Framework for contracts with companies prior to
TA support should be developed.
Component 2
Sub-component 2.1 Value chain development services
Analyse and prioritize support for value chains in view of impact on poverty
reduction, feasibility and market opportunities.
65
Support enterprises as required in to conduct market studies for potential
products taking into consideration linkages with CIGs.
LD
VIE/029,
VCTF, PPMU
7-11/2012
In progress
Formulate and submit to the PPC for approval action plans for respective value
chains.
LD
VIE/029,
VCTF, PPMU
7-12/2012
Ready
to
submit
to
PPC, requires
improvement
Subsequent to PPC approval assist District and Commune People’s
Committees in developing annual detailed plans to execute the value chain
action plans
LD
VIE/029,
VCTF, PPMU
7-12/2012
Done,
requires
improvement
and
PPC
approval
Develop capacity for officials of DPMOs, CDBs and chain actors including
private traders, CIGs in service of developing local chains.
LD
VIE/029,
VCTF, PPMU
7/2012 till
project end.
In
progress,
priority action
for 2013
Diversify occupational trainings in linkage with jobs for local poor people
PPMU,
DOLISA,
enterprises
7/2012 till
project end
Partially
completed
Carry out the evaluation of the effectiveness of the market information systems
provided to CIGs
DOIT/ PPMU
7-12/2012
Done,
need
validation
workshop
Provide detailed information on local service providers and empower the CIGs
in selecting the right one for their needs
DPMU
CPMU
July to Dec
2012
Done
Evaluate effectiveness of veterinary, plant protection, and 317 production
models on income and poverty for the project beneficiaries for lessons learned
and replication
PPMU
July to Dec
2012
Done
Support research to select the most suitable production models suitable to
climate change conditions in 50 communes, and replication of the successful
models to other communes.
PPMU,
From July
20122
onward
Partially done
Support companies and CIGs for improved land-use planning for different
commodities selected in order to increase production scale and profitability
DARD, VCTF,
companies,
PPMU,
July-Dec
2012
In progress
Provincial VBARD requests district VBARD to cooperate with the Project to
review all disbursed loans to analyse the number of jobs created for the poor
and the number of poor households having accessed loans. Adjust the bank
monitoring forms to collect and report the above-mentioned indicators. Remove
the loans which do not meet the criteria of the job creation for the poor and
revise statistical report on the disbursement of this sub-component. A
systematic quarterly reporting by VBARD on the utilisation of the IFAD financed
credit line should be introduced
VBARD,
VIE/029
LD
July
onwards
Done
Training and improving the capacity of VBARD staff on value chain and the
importance of the cooperation between economic sectors – inviting the Bank to
participate in the VCD planning workshops at district level
PMU,
VIE/029
LD
July
onwards
Done
Project supports building financial management capacities of SMEs and
cooperatives thus improving their possibilities to access the IFAD financed
credit line in VBARD
PMU,
VIE/029
LD
July
onwards
In progress
IFAD, central VBARD and MARD discuss the measures to be introduced on a
pilot basis Cao Bang province to better support cooperatives, enterprises and
business households
IFAD Country
Office
July
onwards
Pending
PMU,
VIE/029
July
onwards
Done,
requires
further focus
Subcomponent 2.2 Farm Productivity Improvement Service
and
DARD,
Research
Institutions,
DPMO, CDB
Sub-Component 2.3: Rural Finance
Component 3: Amplification of Market Access for the Rural Poor
Sub-component 3.1 CIG Enhancements
Adjust the strategy to develop CIGs and Manual following the method of
communication, connecting with the development strategy of industries and
cooperate with lead enterprises
66
LD
Technical assistance mobilised for each district to develop specific plan to
expand to CIG network, connecting with the industry development and PPP;
provide fund for DPMUs to implement this plan
PMU,
VIE/029
Convert the contents of contracts with the cooperatives alliance, FU, WU
according to separate regions to promote joint capacity building cooperation
according to specific tasks and activities in all districts and communes
LD
July
onwards
In progress
PMU
July
onwards
Done
Develop and training on the Saving and Credits Group Handbook and a
mechanism for the provision of matching grants to groups having number of
poor households higher than 50%
WU, PMU
July
onwards
Done, needs
significant
improvement
Design information material about the benefits of CIGs like leaflets, video tapes
and arrange exchange visits to groups that work well
FU, PMU
July
onwards
In progress
Continue providing technical assistance to CIGs to develop business
development plans and access to the finance from VBARD
CA,
CDBs
July
onwards
Slowly
progressing
Cooperate with enterprises to develop the networks of CIGs, assist developing
supply and purchasing contracts
DPCs, DPMUs
July
onwards
Progressing
well
Inform development targets and allocate budget (both from DBRP and other
sources) to project communes and districts officially (in writing) in the next 2
years so that they prioritize and prepare their respective SEDPs more
proactively.
PPC
July
–
December
2012
Partly
compliance
Implementing a series of actions for improving SEDP and preparing for upscaling SEDP. These actions are described in the technical annex SEDP and
CIF attached herewith this AM;
DPI,
VIE/029
July 2012
onward
In progress
Revising the SEDP manual. Instructions for revising SEDP manual are
described in the technical annex SEDP and CIF attached herewith this AM;
DPI
leading,
PPMU,
LD
VIE/029
July2012
onward
Pending
The DBRP should support preparation of Commune Master Plan for NRD.
Instructions for this are described in the technical annex attached to SEDP and
CIF.
DRD,
PPMU,LD
VIE/029, DPI
July 2012
onward
In progress, 4
communes
completed
NRD Master
Plan
Preparation of Manual for CIF micro-scale infrastructure works/facilitiesunder
FA (Force Account) and approval by PPCfor implementation by the community.
The finance instructions regarding these works/facilities (finance management
and liquidation) should be made by DoF and Provincial Treasury.
PPMU, DOF,
July
and
August
2012
Done,
schemes
apply
method
Improving quality control of Specialised and Accounting units of PPMU. These
controls should be focused on issues, which are detailed in the technical annex
SEDP and CIF attached this AM;
PPMU
Now
and
onward
In progress
Infrastructure works and contracts facing issues related to quality and
liquidation should be reviewed and settled by PPMU. Instructions are detailed
in the technical annex SEDP and CIF attached to this AM;
PPMU,
LD
VIE/029, CDBs
Deadline of
12/2012
In progress
Prioritisation of capacity building activities using 10% of CIF for development of
value chains, farm productivity improvement, CIGs and hand-on supports for
implementing infrastructure;
PPMU,
DPMOs, CDBs
July 2012
In progress
Develop financial mechanism for regular O&M of infrastructure works at
commune and village levels. Instructions are detailed in the technical annex
SEDP and CIF attached to this AM;
PPMU,
DPMOs, CDBs,
consultant,
District
agencies
Started July
Done, needs
review
and
revision
Review the results of contracts between PPMU and the province agencies
entered into in 2010 to asses performance and lessons learned
PPMU,
VIE029
July 2012
onwards
Pending
Revise contracts entered into in 2012 with province agencies to include a
decentralised implementation approach where districts and communes are
main actors for implementation.
PPMU
July 2012
onwards
In progress
DPCs,
Sub-component 3.2: Participatory Planning and Investment Prioritization
PPMU
DPI
LD
PPMU,
DPMOs, CDBs,
Local agencies
Sub-component 3.3 Commune Investments
LD VIE/029
Component 4: Project management
67
LD
63
FA
Based on the commune SEDPs, develop actions plans for DPMOs – PMU to
allocate more funds for these entities for actual implementation
PSC, PPMU
July 2012
onwards
In progress
Develop exit strategy for the project from now until its termination emphasizing
the transfer of project activities to in-line agencies at relevant levels.
PSC, PPMU
July 2012
onwards
Done
PPMU, DPMU,
and LD VIE/029
7-12/2012
and annual
In progress
Provide training on gender awareness, gender equality and gender
mainstreaming for project staffs at province, district, commune levels and
partners involved in the project such as staffs from DARD, DPI, DOLISA, and
DOIT.
PPMU and LD
VIE/029
September
December
2012
Planned,
implementatio
n pending
Setting minimum targets for gender/women participation, especially poor
women, in key project activities, and implement different campaigning and
economic activities to attract more participation of poor women in the CIGs
through different pro-poor value chains and market linkages.
PPMU and LD
VIE/029
7-12/2012
and
annually
Planned,
implementatio
n pending
PMU
In progress
3rd quarter
2012
Done
Strengthening the M&E and the results-based management capacity: (i)
classification of weak performance monitoring staffs for appropriate capacity
building support and/or replacing them, (ii) organization of training for M&E
staffs at all levels on how to collect information, analyse data and write reports;
(iii) review of all planned targets, in accordance with the Log Frame, to identify
the indicators with low levels of completion for timely solutions, (iv) training and
coaching PMU leaders at all levels to improve their result-based management
skills
Gender Development Focus
DPMO, CDB
Knowledge Management and Innovation
Enhance cooperation with IFAD Office to further contribute to the knowledge
management of IFAD programme in Viet Nam
PMU
Partnerships
Request the Lux Development to extend the contract of the CTA to ensure
continuity of technical support to the DBRP
PPMU
PPC
and
Fiduciary Aspects
Advance Payments: The PPMU to prepare a system to calculate the maturity
of advance payments including milestones for payments related to completion
of works and timely recovery
PPMU
As soon as
possible
Pending
Bank guarantee for advance payment: Check the validity of bank guarantees
for advance payments for civil work contracts and request extension from
contractors in case of delays
PPMU, CDBs
As soon as
possible
Pending
Other receipts and expenditures: PPMU to provide guidance CDBs to record
and report other incomes and expenditures of the project to avoid the misuse.
Accounts for such income should be done separately as required by Ministry of
Finance.
PPMU
As soon as
possible
Done
Contract management: Payments for longer term contracts should in at least
two instalments. Advance payments should not exceed 50% of the contract
value.
PPMU, CDBs
As soon as
possible
Done
Contribution from beneficiaries. This supervision mission suggests PPMU
and CDBs should use the form provided by IFAD right away for all
infrastructure contracts of the project. CDBs need to finalize payment
documents to submit to PPMU for recording the contribution from beneficiaries.
Financial audited report for 2010: i) review payables and receivables to
record correctly; ii) record other incomes and expenditures; iii) record correctly
the beneficiary contribution fund; iv) assess the adequacy of the internal control
system of PPMU, DPMUs, CDBs
68
In progress
PPMU, auditor
As soon as
possible
In progress
Appendix 9: List of People Met by the SM 2013
PROVINCIAL LINE AGENCIES
No.
Name
Position
1
Phuong Tien Tan
Project Director
2
Nong Minh Thang
Project Vice Director
3
Lam Duy Tang
4
Bui Thi Que
Head of Planning Department
Deputy Head of Planning
Department
5
Nguyen Thi Xuan
6
Đo Thi Minh Tam
7
Ha Thi Phuong
8
Hoang Thi Hong Mai
Administrator
Marketing and Value Chain
Development Officer
9
Chu The Giang
Community Facilitator
10
Hoang Van Huy
11
Trieu Thuy Nga
Interpreter
12
Nguyen Van Bao
Infrastructure staff
13
Hoang Van Thuan
Infrastructure staff
14
Trinh Thanh Tu
CIG staff
15
Hoang Thai
Director
16
Hoang Kim Trong
17
Nguyen Van Trụ
Staff
Head of Department of
Breeding
18
Ha Thi Xuan
19
Ha Minh Tran
20
Ly Thi Hoi
21
Ma Van Đuong
22
Hoang Thi Diep
23
Đang Hoa Lan
24
Nong Thi Ha
25
Nguyen Minh Anh
26
Trieu Ngoc Thu
27
Lưu Quyet Thang
Marketing and Value Chain
Development Officer
28
Pham Quang Hoa
Value Chain Expert
29
Duong Thi Noong
Vice Director
Chief Accountant
Deputy Head of Accounting
Department
Unit
PPMU
PPMU
PPMU
PPMU
PPMU
PPMU
PPMU
PPMU
PPMU
PPMU
PPMU
PPMU
PPMU
PPMU
DARD
DARD
DARD
DARD
Director
Deputy head of Department of
Employment and Labour
Safety
Vice chairman of Provincial
Co-Alliance
DOLISA
DOLISA
Co-Alliance
Co-Alliance
Co-Alliance
Chairman of Farmer Union
Farmer Union
Farmer Union
Farmer Union
69
PPMU
VIE 029
Provincial Investment
Consultancy and Promotion
Center
30
Nguyen Thanh Tam
Director
31
Ma Van Khoe
32
Duong Thanh Trung
Vice Director
Department of Commercial
Management
33
Nguyen Thi Duyen
Director
34
Luong Van Huu
Director
35
Đam Le
Administrator
36
Nguyen Sinh Huynh
Director
37
Nguyen Ngoc Tuan
Head of Business Department
Tam Hoa Cooperatives
Department of Trade and
Industry
Department of Trade and
Industry
Vi Duyen Company of
Concentrade Feed
Cao Bang Seedling
Company
Cao Bang Seedling
Company
Cao Bang Company of
Concentrate Feed
Production
Cao Bang Company of
Concentrate Feed
Production
38
Nguyen Thi Hai
Director
Viet Cuong Cooperatives
39
Tran Van Khan
Vice Director
DARD
HA QUANG DISTRICT
List of staff at all provincial, district, and communal levels
No.
Name
Position
1
Phuong Tien Tan
Project Director
2
Lam Duy Tang
Head of Planning Department
3
Nguyen Van Bao
Infrastructure Staff
4
Luu Quyet Thang
Marketing Staff
5
Hoang Van Huy
M&E Officer
6
Lanh Duc Dung
Chairman
7
Tran Thi Hang
Head of Agricultural Department
8
Vuong Van Din
Head of Extension Station
9
Ly Que Huong
Planning Officer
10
Hoang Thi Loan
Vice Chairman
11
Be Van Tan
Staff
12
Vu Tien Dinh
Manager
13
Dam Van Phu
M&E Officer
14
Nong Van Vuong
Marketing Officer
15
Be Thi Chien
Accountant
16
Sam Thanh Tuyen
CIG Staff
17
Trinh Van Thang
Chairman
18
Trieu Viet Cuong
Chairman of PPC/ Head of CDB
19
Hoang Thi Hoa
Party Communal Secretary
20
Hoang Van Dong
Planning
Officer,
member
of
commune planning taskforce
21
Lanh Thi Thuyet
Chairman of commune WU, Deputy
Head of CDB
22
Hoang Van Dao
Chairman of FU, Marketing Officer
23
Vi thi Hop
Extension Staff, M&E Officer
24
Hoang Duc Xoan
Accountant
70
Unit
PPMU
PPMU
PPMU
PPMU
PPMU
DPC
Agricultural Department
Extension Station
DPMO
Farmer Union
Seedling Station
DPMO
DPMO
DPMO
DPMO
DPMO
Woman Union
Quy Quan CDB
Quy Quan CDB
Quy Quan CDB
Quy Quan CDB
Quy Quan CDB
Quy Quan CDB
Quy Quan CDB
List of members of Black Pig CIG – Quy Quan commune, Ha Quang district
No.
Name
Position
1
La Thi Dau
Group Leader
2
Vi Thi Sinh
Group Deputy Leader
3
Nong Thi Phuong
Secretary
4
Trieu Thi Hoa
5
Nong Thi Hien
6
Nong Thi Dong
7
Trieu Thi Men
8
Sam Thi Nhinh
9
Vi Thi Thuy
10 La Thi Nghiep
11 Le Thi Thien
12
Lanh Thi Bich
13
Lanh Thi Thiet
14
Vi Thi Nho
15
Nong Thi Dep
16
Hoang Thi Hop
NGUYEN BINH DISTRICT
List of staff at provincial, district, and communal levels
No.
Name
Position
1
Nong The Phuc
Vice Chairman
2
Phuong Tien Tan
Project Director
3
Nguyen Van Bao
4
Duong Tuan Viet
Community Facilitator
5
Luu Quyet Thang
Marketing Officer
6
Nguyen Thi Huyen Trang
M&E Officer
7
Peter Heeres
CTA
8
Nguyen Thi Hue
M&E and KMO Expert
9
Doan Manh Tuong
Infrastructure Expert
10
Nguyen Thi Phuong
Interpreter
11
Le Thi Minh Thu
Vice Chairman
12
Nong Trung Hieu
Vice Director
13
Nong Van Tue
Vice Chairman
14
Nong Van Bao
Staff
15
Mạc Thi Khanh
Head of Station
16
Hoang Thi Hoa
Manager
17
Đam Thi Lan
M&E Officer
18
Vũ Thi Ha
Marketing Officer
19
Đinh Vinh Bac
Planning Officer
20
Luong Thi Huong
Accountant
21
Ma Van Vung
22
Nhan Van Khiem
CIG Staff
23
Hoang Ton Sao
Head of CDB
24
Đam Quang Toa
Deputy Head of CDB
25
Chu Thuy Dien
Accountant
26
Đang Van Cat
Cashier
27
Chu Thi Luyen
M&E Officer
28
Ban Thi Xuan
CIG Staff
29
Chu Thi Quyen
Party assistant secretary
71
Unit
PPC
PPMU
PPMU
PPMU
PPMU
PPMU
VIE 029
VIE 029
VIE 029
VIE 029
Woman Union
District VBARD
Farmer Union
District State Treasury
Extension Station
DPMO
DPMO
DPMO
DPMO
DPMO
DPMO
DPMO
Hoa Tham CDB
Hoa Tham CDB
Hoa Tham CDB
Hoa Tham CDB
Hoa Tham CDB
Hoa Tham CDB
Hoa Tham CDB
List of members of Raising Black Pig CIG – Khuoi Phay, Hoa Tham commune
No.
Name
Position
Phone number
1
Nong Van Kinh
Group Leader
01654169802
2
Nong van Khuon
Group Deputy Leader
3
Ban Phu Chieu
Group Secretary
4
Trieu Mui Sinh
5
Hoang – Kiem
6
Hoang – Hien
7
Ban Phu Kinh
8
Hoang – Quyen
9
Hoang – Nhan
10
Nong – Trinh
11
Ban – Vang
12
Trieu – Chan
13
Ban – Trinh(A)
14
Hoang – Hin
15
Hoang Thong Tinh
16
Hoang Sinh Tinh
17
Ban Phu Binh
18
Hoanh Dun Pu
19
Hoang Thong Tinh
20
Ban Mui Chieu
21
Ly Mui Sau
22
Đang Thi Hoa
List of members of Brocatelle Weaving CIG – Thang Cong, Hoa Tham commune
No.
Name
Position
Remarks
1
Chu Thi Mai
Group Leader
2
Chu Thi Quyen
Group Deputy Leader
3
Li Thi Mai
Group Secretary
4
Chu Thi Quyen
5
Ban Thi Coc
6
Ban Thi Xuan
6
Đang Thi Thuy
7
Ban Mui Phay
8
Trieu Thi Hoa
9
Ly Mui Chuong
10
Ban Thi Xuyen
12
Ban Thi Hoang
13
Đang Thi Dieu
14
Ban Mui Lai
15
Ban thi Bich
16
Ban Thi Hoa
17
Chu thi Un
17
Chu Thi Hue
19
Chi Thi Moi
20
Ban Thi Moi
21
Đang THi Moi
22
Trieu Thi Hau
23
Đang Thi Xuan
24
Ban Thi Lieu
25
Đang Thi Chu Hoang
26
Li Mui Nhay
27
Trieu Thi Binh
72
PHUC HOA DISTRICT
Commune People’s Committe UBND
No.
Name
Position
1
Be Van Van
Head of Commune
Development Board (CDB)
2
Ly Thi Minh
Accountant
3
4
Nguyen Van Buu
Hua Van Dam
Member of CDB
Member of CDB
Unit
CPC
CPC
CPC
CPC
Member of CDB
CPC
Phone number
0985908564
0979957956
0974611372
01696712023
5
Hoang Ky Hiep
6
Đao Nguyen Phong
Vice Chairman
DPC
7
Nguyen Hong Hai
Manager
DPMO
0984498700
8
Luu Đai Quan
M&E officer
DPMO
0988920986
9
Đam Quoc The
CIG Officer
DPMO
0917607933
10
Pham Thi Ngo
DPMO
11
Truơng Thi Lieu
Planning Officer
Deputy Head of District
Department of Agriculture
12
Hua Ngoc Diep
Staff
13
Long Thi Yen
Staff
DPC
Company of
Sugar
Production
Company of
Sugar
Production
14
Nong Minh Thang
Vice Director
PPMU
15
Hoang Thi Hong Mai
Staff
PPMU
16
Trinh Thanh Tu
Staff
PPMU
17
Peter heerer
CTA
VIE/029
18
Trieu Thuy Nga
Staff
PPMU
19
Hoang Van Thuan
Staff
PPMU
20
Nguyen T Huyen Trang
Staff
PPMU
21
Pham Van Vinh
Staff
VIE/029
22
Nguyen Thi Hue
Staff
VIE/029
23
Pham Quang Hoa
Staff
VIE/029
24
Đoan Manh Tuong
Staff
VIE/029
25
Nguyen Thi Phuong
Staff
VIE/029
73
0915913589
QUANG UYEN DISTRICT
Phuc Sen Commune People’s Committee
No.
Name
1
Linh Van Phu
2
Nong Thi Dung
3
4
5
6
7
Luc Van Tien
Luong Dai Duong
Nong Van Linh
Luong Van Luong
Luong Van Vinh
8
Nong Van Thang
9
Dinh Huy Giap
Position
Chairman/ Head of
CDB
Vice Chairman
Administrator/ M&E
Officer
Unit
UBND xa
UBND xa
Accountant
Party Communal
Secretary
Vice Chairman of
Council of People
Culture and Society
staff/ CIG staff
01683126321
0987291650
UBND xa
0919775569
UBND xa
Land Officer
Phone number
UBND xa
0964537507
0982918919
UBND xa
0987291720
UBND xa
01693985189
UBND xa
0904817490
10
Hoang Van Quyet
11
Nong Cong Dinh
Vice Chairman
Deputy Chief of the
Secretariat/ Manager
Staff/ Marketing
Officer
12
Ma Thi Chiu
Staff
Phòng NN & PTNT
0973533669
13
Ma Thi Luu
Vice Chairman
Hội phụ nữ huyen
0986349694
14
Ha Kim Phuong
Tram KN - KL
0988844626
15
Be Ich Thuong
Phòng TC - KH
0978925455
16
Nong Duoc Thuan
Head of Station
Staff/ Planning
Officer
Staff/ M&E Officer
Phòng dan tộc
0989977879
BQLDA DT&XD
0974399208
17
Hua Thi Mo
Staff
Staff
UBND huyen
0919649888
Phòng LD TB XH
Hội ND huyen
18
Hoang Thi Tam
19
Do Anh Phuoc
CIG staff
DPMO
20
Nong Minh Thang
PPMU
21
Hoang Thi Hong Mai
Vice Director
Staff
22
23
24
25
26
27
28
Trinh Thanh Tu
Phuong Tien Manh
Trieu Thuy Nga
Hoang Van Thuan
Chu The Giang
Pham Van Vinh
Vu Van Quyen
Staff
PPMU
PPMU
Staff
PPMU
Staff
PPMU
Staff
PPMU
Staff
PPMU
Staff
VIE/029
Staff
VIE/029
74
01697078980
01683834866
0977651524
0915802568
Staff
29
Pham Quang Hoa
VIE/029
30
Dam Trung Luong
Driver
VIE/029
31
Lam Ngọc Dung
Driver
PPMU
TRUNG KHANH DISTRICT
Trung Phuc Commune
No.
Name
Position
Unit
1
Peter
CTA
2
Hoang Thi Hue
M&E Expert
VIE 029
VIE 02D
3
Nguyen Van Quyen
Infrastructure Expert
VIE 029
4
Phuong Tien Tan
Project Director
5
Nguyen Van Bao
6
Nong Hong Binh
Staff
Staff
PPMU
PPMU
7
Vu Trong Tuyen
Staff
PPMU
8
Nguyen Thi Xuan
Staff
PPMU
9
Nguyen Thi Trang
Staff
PPMU
10
Luu Quyet Thang
Staff
PPMU
11
Dam Ly
Reporter
12
Xuan Chung
Reporter
13
Mong Van Luc
14
Thach Thi Yen
Vice Chairman
Deputy Head of Agricultural
Department/ Value Chain Taskforce
Leader
DPC
15
Luong Van Lam
Member of Value Chain Taskforce
Extension Station
16
Ly Van Ngoan
Farmer Union
17
Nong Thi Huong
Woman Union
18
Nong Van Hieu
19
Hoang Van Thuyen
District VBARD
District Department of
Industry and Trade
20
Dinh Manh Thang
21
Nguyen Thi Loan
22
Mong Hong Dieu
23
Hoang Thi Lieu
24
Dinh Thanh Tam
DPMO
25
Luong Trung Truc
Driver
PPMU
26
Hoang van Mao
Driver
PPMU
27
Trieu Quang Thai
Party Communal Secretary
CPC
28
Nong Van Soi
CDB
29
Chu Cao Cuong
Chairman, Head of CDB
Chairman of Fatherland Front
Committee, Head of Community
Supervision Board
PPMU
Cao Bang Broadcasting
Center
Cao Bang Broadcasting
Center
Deputy Head of Value Chain
Taskforce
DPC
DPMO
DPMO
DPMO
DPMO
75
CDB
30
Dinh Ich Cuong
Land Officer, head of O&M group
CDB
31
Dinh Thi Huan
Chairman of FU, member of CDB
CDB
32
To Quang Du
CDB
33
Trieu Thi Phuong
Accountant
Vice Chairman of WU, leader of CIG
taskforce
34
Sầm Thi Nhung
Extension staff, M&E Officer
CDB
35
Trieu Quang Hoan
Cultural staff
CDB
36
Hoang Thi Hanh
Vice chairman of FU
CDB
37
Nong Van Kim
Chairman of Veteran Association
CDB
38
Ha Van Ngon
Administrator
CDB
39
Nong Thi Hang
Chairman of WU
CDB
40
Nong Dinh Than
Secretary of Youth Union
CDB
List of CIG members
No.
Name
Position
1
Be Luong Bang
Group Leader
2
Dinh Ich Hop
Group Deputy Leader
3
Nong Thi Thu
Cashier
4
Ly Thi Duong
5
Dinh Ich Ngon
6
Dinh Ich Hung
7
Dinh Ich Hoan
8
Dinh Ich Binh
9
Dinh Ich Khai
10
Dinh Ich Truong
11
Dinh Ich Nau
12
Dinh Ich Yen
13
Dinh Ich Viet
14
Dinh Thi Chinh
15
Luong Thi Mo
16
Trieu Thi Nhit
17
Vu Van Ray
18
Vuong Van Tuong
76
CDB
Appendix 10: Audit Log
1. Summary Audit Table
Financial
Year
Audit Observations as per
Audit Report
Number
Number
Value
(VND)
Number
2008
5
5
0
2009
3
2
1
2010
5
4
1
2011
6
4
2
2012
4
1
3
Total
23
16
7
a)
Sl.
No.
Value
(VND)
Audit Observations
Outstanding
Audit Observations Settled
Financial
year
2. Detailed Audit Table
Class:
Audit
Serious/
Ref.
general
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
77
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
78
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 withhold 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 incurred 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
supporting documents related to
CIF
Total Amount
per
Observation
Action taken by the
wise)
Present status
(Auditors
Validation
Result)
Total amount
not settled/
outstanding
Outstanding
Outstanding
Fixed
Fixed
Fixed
VND 2,000,000
Outstanding
Outstanding
VND
349,353,000
Performed
Performed
79
Settled
Partly
outstanding
Remarks

Supervision Report Cao Bang

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