ManualGuideline on Implementing The Regulation on Decentralization and Management of           CIFs in Cao Bang
LIST OF ABBREVIATIONS AND ACRONYMS ADB              Asian Development Bank CDB              Commune Development Board CEM ...
FOREWORDThe “Developing Business with the Rural Poor (DBRP) in Cao Bang”project is designed to empower targeted communes a...
The manual “Guidelines on implementing the regulation on decentralization andmanagement of the Community Investment Funds ...
-   Mr. Nong Minh Thang: Deputy Director of Project Management Unit.   -   Mr. Pham Xuan Tung : Chief Accountant   -   Mr....
GENERAL REGULATIONS   I.    Implementation bases:       Pursuant to the Financing Agreement No. 741 – VN and the Non-refun...
- To be used effectively, publicly, and transparently for the right purposes.      2. Scope of adjustment.The scope of adj...
-   Inspecting, reviewing and considering the approved socio-economic          development plan and selecting the activiti...
activities are not of the priority activities in the conclusion of the          extended CDB meeting but are suitable with...
-   Participating in and supporting the village, hamlet, and commune          development planning activities;      -   Or...
4. Commitments and rules on the use of CIFs:      Using forms I - 1 and I - 2: The manual “Guideline on implementing the r...
PART I: FORMING AND PROPOSING PROJECTS   I. Village/hamlet meeting for work selection;   1. Purposes and results to be ach...
-   Presenting the criteria for proposing and selecting the eligible investment       projects according to regulations of...
II. COST ESTIMATE OF                THE     PROJECT        SELECTED         BY    THE         VILLAGE/HAMLET   1. Contents...
- Comparing the projects with the selection criteria;       - Voting to select projects   2. Purposes and Results to be ac...
- Have very little or no impact on movement, compensation, and           resettlement;       - Capable of self-implementat...
- Expected implementation time (It is possible to consult PPMU or           DPMO staff);       - Methods of implementation...
+ Possibility of coincidence with other projects       + Suitability with the project objectives(Forms I-8 to I - 12 with ...
PART II – SURVEY, DESIGN AND PREPARATION OF ECO-TECHNICAL                             REPORT   The survey, design, and pre...
•   Step 3: Learning the list of eligible and capable bidders and       selecting the contractor   -   Inviting bidders to...
The project documents of execution design drawing and eco-technical report   are the basic legal documents to implement th...
During the survey and design, the consultant must consult the benefited   communities, villages as well as commune governm...
All of these processes are recorded in minutes with the agreement andsignature of CDB, and heads of villages attached with...
3. Steps of implementation:   •    Step 1: CDB makes a statement and submits it to the district’s relevant        speciali...
+ Minor difference in bid prices by the bidders        + Bidders participating in the bid packages all win the bid respect...
immediately implemented during the submission, approval and appraisal       of economic and technical statements;   -   CD...
-   The commune development board (CDB) (Or the employed consultant)   -   DPMO, PPMU Support officials   -   The district...
-   Implemented task: (For example, survey, design, and consultancy for       bidding management, etc.)   -   Non-bid task...
-   The employed consultant shall prepare the tender dossier for the       project   -   The content is as the aforesaid a...
-    Referral of the bidder’s representative (with seal and signature by the        bidder’s representative)   -    Identi...
To select the best qualified bidder who offers the lowest price for the project   implementation   2. Participants:   -   ...
V. SUBMISSION, APPRAISAL AND APPROVAL OF BIDDING RESULTS     1. Purposes and results:     To obtain the bidding approval r...
CDB shall notify the award notice according to form III - 9 to the bidders   and concerned agencies, and then shall invite...
B. COMMUNITY BIDDING AND CONSTRUCTION OF COMMUNITY                            BIDDING WORKS   1. Regulations on community ...
+ All group’s members are local people (who have permanent residence       in the commune)       + Representatives of hous...
+ Time for bidder selection: The time shall be counted from the time CDB       gives public notification of the bid packag...
+ Foreman steering the execution community shall be required. The       foreman shall be experienced in the works of the s...
-   In the event only one mass organization or household group, or local       people group takes charge of executing the ...
-   The district’s departments shall verify and provide appraisal report   -   CDB makes approval decision according to fo...
-   Executing the work in accordance with technical requirements of the       owner   •   Payment and final settlement of ...
PART IV: PROCESS OF WORKS QUALITY MANAGEMENT                                   GENERAL INSTRUCTIONSDuring the implementati...
•   Step 4: Managing the execution and accepting, and handing over the       project for putting it into use   •   Step 5:...
-   Proposing to the head of CDB to suspend execution of the work when       the poor quality and quantity of work and vio...
Inspecting preparations for construction:   + Documents, design drawings   + Construction area, construction site   + Mate...
III. HANDING OVER              THE      CONSTRUCTION            AREA       TO     THE          CONTRACTOR:   1. Purposes a...
-   The employed supervision consultant   -   CDB   -   The contractor   -   The community supervision board   3. Steps of...
CDB (It is possible to invite the community supervisor if required)       according to form IV - 6   •   Step 5: Acceptanc...
And such contents shall be made in writing with signatures and seals of       the parties according to form IV - 7   V. MA...
value and quantity) and submit it to the DPMO and the District’s       specialized departments for appraisal. The statemen...
Community Investment Funds - CIF Manual Cao Bang
Community Investment Funds - CIF Manual Cao Bang
Community Investment Funds - CIF Manual Cao Bang
Community Investment Funds - CIF Manual Cao Bang
Community Investment Funds - CIF Manual Cao Bang
Community Investment Funds - CIF Manual Cao Bang
Community Investment Funds - CIF Manual Cao Bang
Community Investment Funds - CIF Manual Cao Bang
Community Investment Funds - CIF Manual Cao Bang
Community Investment Funds - CIF Manual Cao Bang
Community Investment Funds - CIF Manual Cao Bang
Community Investment Funds - CIF Manual Cao Bang
Community Investment Funds - CIF Manual Cao Bang
Community Investment Funds - CIF Manual Cao Bang
Community Investment Funds - CIF Manual Cao Bang
Community Investment Funds - CIF Manual Cao Bang
Community Investment Funds - CIF Manual Cao Bang
Community Investment Funds - CIF Manual Cao Bang
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Guideline on Implementing The Regulation on Decentralization and Management of Community Investment Funds (CIFs) in Cao Bang.

The “Developing Business with the Rural Poor (DBRP) in Cao Bang” project is designed to empower targeted communes and communities to propose their own socio-economic development plan in the light of “People know, People discuss, People do, People inspect and People benefit”. The government at all levels will provide support in procedures and finance, methods and experts for improving the local people’s and communes’ capacities. This creates the most fundamental element for sustainable development of rural economics and for poverty reduction as the project’s objectives.

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Transcript of "Community Investment Funds - CIF Manual Cao Bang"

  1. 1. ManualGuideline on Implementing The Regulation on Decentralization and Management of CIFs in Cao Bang
  2. 2. LIST OF ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank CDB Commune Development Board CEM Committee for Ethnic Minorities CIF Community Investment Fund CIG Common Interest Group DARD Department of Agriculture and Rural Development DBRP Developing Business with the Rural Poor DPC District People’s Committee DPI Department of Planning and Investment DoF Department of Finance DPMO District Project Management Office EU European Union EUR European currency IFAD International Fund for Agricultural Development GOL Government of the Grand Duchy of Luxembourg ODA Official Development Assistance PPB Project Preparation Board PPC Provincial People’s Committee PPMU Province Project Management Unit TA Technical Assistance TOR Terms of Reference ToT Training of Trainers USD United States Dollar UN United Nations VBARD Vietnam Bank for Agriculture and Rural Development VBSP Vietnam Bank for Social Policies VND Vietnamese currency (Dong) The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 2 
  3. 3. FOREWORDThe “Developing Business with the Rural Poor (DBRP) in Cao Bang”project is designed to empower targeted communes and communities topropose their own socio-economic development plan in the light of “Peopleknow, People discuss, People do, People inspect and People benefit”. Thegovernment at all levels will provide support in procedures and finance,methods and experts for improving the local people’s and communes’capacities. This creates the most fundamental element for sustainabledevelopment of rural economics and for poverty reduction as the project’sobjectives.The project has introduced, though at small extent, a new thought and approachof the State management agencies on organization, implementation, andmanagement of investment and basic construction projects, especially thosebelonging to the national target programmes. It is therefore easy to see that theproject will have to face more risks than others, namely: - Empowerment to the commune level while the qualification of officials at the commune level and the grassroots level is still limited, which is the greatest risk of the project. - The target area is quite large (in more than 10 districts and 50 communes), with poor infrastructure, limited qualifications of people, and low living standards (people in some particular places are very poor). The project staff at all levels must be patient, diligent, hard-working, and sympathetic towards the poor so as to implement well the project’s objectives.The manual “Guideline on implementing the regulation on decentralization andmanagement of the Community Investment Funds (CIFs)” includes 2 volumes:Volume 1: “CIF utilization processes” including: 1. Part 1: Process of Project Formation and Proposal by the Community 2. Part 2: Processes of Survey, Design and Consultant Selection. 3. Part 3: Methods of Bidding and Contractor Selection 4. Part 4: Process of Construction Quality Management; 5. Part 5: Payment and Final Settlement of Accounts of The Project 6. Part 6: Process of Management, Operation and MaintenanceVolume 02: Appendices The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 3 
  4. 4. The manual “Guidelines on implementing the regulation on decentralization andmanagement of the Community Investment Funds (CIFs)” is an instructionaldocument for DPMO, CDB, and Village Development Board to understand andimplement according to the procedures for planning, implementation andmanagement of a Small&Medium Scale construction investment project in thecommune with the community participation. This manual refers to contents andimplementation manner of each specific activity in the project implementationprocess.The manual also helps community staff and DPMO during the instruction andsupport towards the communes and villages to implement the steps of forming,proposing, implementing and managing sub-projects in the communes.Besides, it can be used as a reference for the training staff, monitoring andevaluation staff, and financial staff of the Provincial Project Management Unitduring their task implementation.The manual “Guideline on implementing the regulation on decentralization andmanagement of the Community Investment Funds (CIFs)” is compiled under theleading of Mr. Phuong Tien Tan – Deputy Director of the DPI – Project Directorand participation of national and international consulting organizations: • Lux-Development – VIE/029 project: - Mr. Rudi Schuetz – Chief Technical Advisor of VIE/029 Project - Mr. Doan Manh Tuong – Senior Infrastructure Expert – VIE/029 Project • Consultancy team: - Mr. Nguyen Quang Phuc – Consultant - Mrs. Tran Thi Kim Dang – Consultant - Mrs. Dam Thi Thao – Head of Expenditure Control Department – the State Treasury Branch of Cao Bang Province - Mr. Duong Hung Dung – Head of Investment Office – Cao Bang Provincial Department of Finance - Mr. Dam Van Hai – Head of Budget Department – Cao Bang Provincial Department of Finance - Mrs. Hoang Thị Tuyen – Head of Accounting Office – State Treasury Branch of Cao Bang Province - Mr. Hoang Trung Kien – Vice Head of Foreign Economic Relations Office – Cao Bang Provincial Department of Planning and Investment - Mr. Vu Anh Tuan – Vice Head of General Office - Cao Bang Provincial Department of Planning and Investment • DBRP Project in Cao Bang: The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 4 
  5. 5. - Mr. Nong Minh Thang: Deputy Director of Project Management Unit. - Mr. Pham Xuan Tung : Chief Accountant - Mr. Lam Duy Tang: Head of Community Planning Department. - Mrs. Tham Thi Loan : Staff of Monitoring and Evaluation Office - Mrs. Bui Thi Que: Vice Head of Community Planning DepartmentBesides, it includes the participation and comments by many relevant agenciesin the province (Department of Construction, DPI, DPMOs, etc.) and, especially,the consideration and support by IFAD in Vietnam;We would like to express our faithful gratitude to the close coordination of theexperts and organizations that have helped us in completing this manual;Management Unit of the DBRP Project in Cao Bang The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 5 
  6. 6. GENERAL REGULATIONS I. Implementation bases: Pursuant to the Financing Agreement No. 741 – VN and the Non-refundable Aid No. 997 – VN signed on 16 January 2008 between theGovernment of the Socialist Republic of Vietnam and the International Fund forAgricultural Development (IFAD); Pursuant to Decision No. 2025/QD – UBND dated 7 September 2009 byCao Bang PPC on issuing the regulation on decentralization and managementof the CIFs under the DBRP Project in Cao Bang. II. Detailed guideline on implementation of CIF: 1. Introduction of CIF and principles of fund use:- The DBRP project in Cao Bang, which is implemented in 50 communes of 10districts, aims at improving the life quality of the rural poor through the marketparticipation and contributing to sustainable and equitable poverty reduction.Under this, the CIF is a Project improving the commune financial managementcapacity and directly contributing to poverty reduction by allocating thecommune budget to for-the-poor agricultural and rural development activities,namely: Building village and commune level infrastructures, production andmarketing facilities, and operational capacity building servicesCIF will be used to complement and assist the existing capital sources andprogrammes: Programme 135-Phase II, Programme 30A, etc.The investment capital in the project’s CIF under regulations of the Agreementincludes: + 80% from IFAD loan + 20% from the Government of Vietnam and beneficiaries- The owner of investment capital in the CIF is the CDB, who has an activeaccount at the District State Treasury. + Only use maximum 90% of IFAD loan to invest in communeinfrastructure + The remaining 10% for improving the commune capacity. (includingtraining in computer use for the mass organizations, commune Party Committeeand People’s Committee; training skills such as meeting facilitation, andminutes taking for the CIG leaders, and heads of villages; developing theproduction and business models for others’ learning and replication; organizingvisits to effective production and business models inside and outside theprovince, etc. depending on the actual needs of the commune.) The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 6 
  7. 7. - To be used effectively, publicly, and transparently for the right purposes. 2. Scope of adjustment.The scope of adjustment under this regulation includes the infrastructure worksin communes, and commune capacity improvement activities invested by thecapital from the DBRP project, including: - IFAD capital: Capital funded by IFAD. - Counterpart fund of the Government of Vietnam: Including the Government budget for operation expenses and domestic taxes.Counterpart capital by the beneficiaries: Mainly in kind such as labor, materialsfor building rural infrastructure and contributions from site clearance. III. Conditions of disbursement and forms of money transfer of the CIF 1. Conditions of disbursement: - The commune has its approved participatory socio-economic development plan; - The commune is trained on the commune integrated financial resources management process and the management and use process of the CIF; - The commune has the approved estimate of CIF; - The commune has issued the decision on establishing the CDB; 2. Management and use process of the CIF: 2.1. Establishment of CDB: - The DPC issues a decision on establishing CDB (Participants: Chairman of Commune People’s Committee as the head of the board, commune accountant, land registry or construction staff, staff in the commune departments, etc.) - Transaction account opening: After the issuance of the decision on establishment, CDB opens an account at the District State Treasury 2.2. Meeting of CDB:CDB organizes CIF utilization and assigns tasks to its members. Theparticipants include the CDB, collaborators (if any) and representatives of theDistrict Project Management Unit. The main contents to be mentioned in themeeting include: - Publicly announcing of the CIF, informing about capital source and cost norm; The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 7 
  8. 8. - Inspecting, reviewing and considering the approved socio-economic development plan and selecting the activities to be funded by the CIF. - Selecting and determining benefited villages and hamlets; - Agreeing on capital allocation to the activities; - Assigning tasks to the members of the CDB and collaborators (if any) in management, implementation and monitoring of the activities under the CIF 2.3. Meeting at benefited villages:CDB coordinates with the heads of villages/hamets to organize village andhamet meetings to inform about the CIF and determine the beneficiaries of thefund. Everyone in the village, including males and females, especially the poorand ethnic minority people are invited to the meeting - Notifying information about the CIF including: + Total financed budget of the commune and expenditure amount to be allocated to the village in the year + Principles, conditions and objects of the fund + Activities proposed by the village in the Socio-economic Development Plan financed by the CIF; budget estimates for these activitiesNotes: - Village and hamet meetings are conducted only when the representatives of at least 70% of the households in the village, hamlet are present and the gender priority is applicable; - Ensuring the sufficient time for discussion, opinion exchange and proposals; - At the end of the village meeting, the following results must be achieved: Minutes of village meeting, including the summary table of activities 2.4. Appraisal of the village/hamlet activities:On receiving the minutes of village/hamlet meeting, the CDB conducts appraisalof the activities proposed by the village/hamlet, while ensuring that: - Total expenditure for village/hamlet activities must be suitable with the amount allocated to the village from the community development fund; - The activities proposed by the village/hamlet must be suitable with the priority activities in the conclusion of the CDB meeting. If such The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 8 
  9. 9. activities are not of the priority activities in the conclusion of the extended CDB meeting but are suitable with the people’s expectation, the CDB will consider and issue their decision. 3. Organizing the operation structure of the CIF The operation structure of the CIF in Cao Bang includes provincial, district and commune levels. The specific responsibilities of each levels are as follows: 3.1. Commune Development Board (CDB): - Assigning tasks related to the functions and duties of the Board to each member of the CDB in accordance with their knowledge and capacity; - Participating in village, hamlet, and commune development planning; summarizing the village, hamlet, commune needs using the participatory approach with the assistance and guidance of the Cao Bang Provincial DPI, district DPMO, and DBRP project in Cao Bang - Defining the highest priorities for activities financed by the CIF using the participatory approach; - Informing the purposes, objectives and the regulations and criteria of CIF management, and capital source in commune meetings; - Making expenditure estimates for the activities; - Instructing the villages and hamlets to implement the activities; - Organizing seminars and training workshops in communes, villages and hamlets; - Preparing and recording management and monitoring forms and archiving them all systematically at the Commune People’s Committee; - Collecting all the receipts and invoices related to the expenses for CIF management activities as requested by the Project; - Making annual reports on the results of CIF management and use, conducting annual wrap-up meeting to evaluate the Fund management and use and consider the effectiveness of the support from the fund according to the requirements. 3.2. District Project Management Office (DPMO): - Assigning functional tasks to each member in accordance with their knowledge and capacity; The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 9 
  10. 10. - Participating in and supporting the village, hamlet, and commune development planning activities; - Organizing seminars and training workshops related to the Project in the district and commune.; - Supporting and advising the communes during their use of Fund as requested by the project; - Coordinating with related parties to solve the problems arising from Fund management; - Carrying out inspection, supervision, monitoring and evaluation of the CIF utilization in the communes of district regularly and extraodinarily; - Summarizing and reporting the plan progress and the fund use every three months to the Provincial Project Management Unit; - Organizing 6-month and one-year preliminary wrap-up meetings on implementation of the project activities in the area; - Making an annual summary report on the CIF management and use and submitting the report to the DPC and the Provincial Project Management Unit on the 30th of January every year. 3.3. Cao Bang Provincial Project Management Unit (PPMU): - Making plans for implementing activities improving system capacity and the commune’s financial management capacity (document compilation, seminar and training workshop preparation and organization) to implement in communes using the CIF; - Making plans for organizing and using the CIF in 10 districts of the Project; - Directing the 10 districts to make plans of using expenditure sources from the Community Invesment Fund (CIF) for and organize implementation of the activities accodring to the plan, progress and results; - Ensuring purpose-driven and effective financial and CIF management; - Preparing periodic reports (report on the progress and use of fund) as requested by the Project; - Transfering all the annually allocated expenditure to the commune as soon as all the necessary conditions are satisfied; - Summarizing and introducing good experience in management and use of the commune development fund of districts to the communes; The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 10 
  11. 11. 4. Commitments and rules on the use of CIFs: Using forms I - 1 and I - 2: The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 11 
  12. 12. PART I: FORMING AND PROPOSING PROJECTS I. Village/hamlet meeting for work selection; 1. Purposes and results to be achieved: - People in the village know about the members of the CIF management board, status quo of the existing works in the village, village potentials and limitations, amount of capital and eligible investment projects that may be proposed; - Selecting and proposing the works of villages, inter-villages, and communes 2. Participants: - All people in the village (both males and females) - Representatives of organizations, departments, and associations in the village - DPMO support staff and community staff of the provincial project (If required) 3. Content: - Informing the list of members of the CIF management board; - Introducing eligible investment projects, average investment rate for each project, and the capital allocated to the commune in the project implementation cycle and each year; - Evaluating the status quo of the existing projects in the village, - Selecting and proposing the construction investment projects in the village 4. Steps of implementation: • Step 1: Preparation: DPMO support staff and PPMU community staff meet the heads and leaders of villages to agree and inspect its preparation • Step 2: Meeting - The head of village introduces the participants, content, purposes and secretary of the meeting; - The village representative introduces the list of members of the newly established CBD; The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 12 
  13. 13. - Presenting the criteria for proposing and selecting the eligible investment projects according to regulations of the project, including: Project items, investment norms, amount of capital allocated to the commune and the capital each year; - Taking time to answer the people’s questions; - Instructing people to select suitable projects:+ Dividing people into separate teams by gender;+ Each village representative acts as the team leader and instructs hismembers to propose projects;+ Agreeing on the selected projects;+ Reaching an agreement among teams and giving votes;+ Disclosing the number of votes for each project and arranging them by thenumber of votes from higher to lower • Step 3: Meeting summary and evaluation 5. Necessary documents: - List of the CDB members in Ao paper; - Minutes of invested project list; - Board, papers, chalk, etc. - Table of village project status quo evaluation • Criteria for project selection: - Included in the list of the eligible investment projects - Have the highest number of beneficiaries in the village; - Have little or no impact on the environment; - Have little impact on movement, compensation, and resettlement; - Easy to implement, and everyone in the village is able to participate in implementation; - Not coincide with other programmes/projects; - Have a short time of work execution - Placed where there are many CIGs established by the Project - Suitable with the project expenditure - Giving priority to females (Forms I - 3 and I - 4 attached) The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 13 
  14. 14. II. COST ESTIMATE OF THE PROJECT SELECTED BY THE VILLAGE/HAMLET 1. Contents: - Classifying the projects selected by the people in the village; - Carrying out field surveys to these projects, and making estimate of main volumes; - Making basic cost estimate based on the investment rate 2. Purposes and Results to be achieved: Preliminary cost estimate of investment in the projects selected by thepeople for submission to the commune and meeting for final selection isobtained. 3. Participants: - DPMO support staff or PPMU infrastructure staff - Key staff of the CDB, and Village Development Board. 4. Order of implementation: - The projects proposed and selected by the people are classified into 2 types: new construction works and improved construction works; - Carrying out surveys of the project status quo; + The survey participants record necessary data such as scope description, status quo, number of beneficiaries, etc. and make preliminary estimates of the main volumes; + Collecting opinions of the survey participants, discussing and reaching an agreement to make construction cost estimates for the projects according to form I - 5 (Notes: The project Investigation, survey and cost estimate steps require the efficient support of DPMO staff and PPMU infrastructure staff) III. COMMUNE MEETING FOR COMMUNE PROJECT SELECTION 1. Contents: - Representatives of the villages introduce the proposed projects selected by the people; - Summarizing the projects of the commune’s villages; The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 14 
  15. 15. - Comparing the projects with the selection criteria; - Voting to select projects 2. Purposes and Results to be achieved: The proposals of the villages/hamlets are summarized to select the commune projects in a fair and democratic manner 3. Participants: - All the members of the CDB; - Heads and secretaries of the villages; - Representatives of the Communist Party, Youth Union, and social organizations of the commune; - DPMO and PPMU staff (If any) 4. Order of implementation: • Step 1: Preparation; • Step 2: Meeting process: - Head of the CDB presides over and introduces the participants, contents, and purposes of the meeting; - Representatives of the villages present their village’s project selection and proposal results; - Representative of the CDB presents the criteria of project selection to the commune; - District support staff instructs on project selection by voting method; - Summarizing and evaluating the meeting, reaching an agreement on the minutes and signing thereon according to the form • Criteria for commune project selection: - Included in the list of eligible investment projects; - Have many benefited villages and people; - Have poor villages (according to the commune evaluation); - Have many benefited poor people; - Have little or no impact on the environment; The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 15 
  16. 16. - Have very little or no impact on movement, compensation, and resettlement; - Capable of self-implementation and local people contribute many working days; - Suitable with capital source invested and allocated to the commune; - Not coincide with the works of other projects, and have a short execution time - Have many CIGs supported by the project. - Expenditures for each work are suitable with the project expenditure - Project proposed by many females (Attached forms: form I -6 and appendices) IV. PREPARING AND SUBMITTING THE PROPOSED PROJECT LIST 1. Purposes and Results to be achieved - Preparing the proposed project list selected by the people in the commune and submitting it to the District People’s Committee (DPC), PPMU for appraisal and approval - The content presents the people’s expectation and ensures validity in terms of legal procedures and priority order - The proposal document is bound in the regulated form, including: + Statement summarizing the project list; + Proposal for each project shall be bound in separate pages; + Attached appendices (If any) 2. Participants: - CDB; - DPMO or PPMU support staff (if required) 3. How to make a statement: - Name of project: as stated in the statement; - Construction location: Writing the exact name of work position named by the locality according to the village/hamlet and commune - Briefly describing the project scope and its status quo; - Giving preliminary investment cost estimate The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 16 
  17. 17. - Expected implementation time (It is possible to consult PPMU or DPMO staff); - Methods of implementation(Attached forms: form I-7 and appendices) (Notes: The representative signatures of the followings are required inthe proposal: Head of the CDB, DPMO support staff) V. APPRAISAL & APPROVAL OF PROJECT PROPOSAL 1. Purposes and Results to be achieved: - PPMU makes a decision on agreeing with the project list in accordance with the project objectives; - DPC appraises and makes a decision on approving the communes’ proposals submitted by the CDB 2. Participants: - Specialized department of the relevant districts (Department of Finance - Planning, Department of Industry and Trade) - DPMO - DPC, and PPMU 3. Steps of implementation: - CDB submits the proposals to PPMU for consideration whether the proposed project lists are suitable with the project objectives and then making a decision on approving the proposed list - CDB submits the proposals to the DPC; - Group of specialized departments (Department of Industry and Trade, Department of Finance - Planning) appraises the proposal and submits it to the DPC; - Based on the written evaluation of the appraisal team, the DPC gives its approval according to the following criteria: + Project eligibility; + Preliminary technical feasibility; + Financial capacity; + Resettlement and compensation issues; + Local People’s contribution possibility; The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 17 
  18. 18. + Possibility of coincidence with other projects + Suitability with the project objectives(Forms I-8 to I - 12 with attached appendices) VI. NOTIFICATION OF THE PROJECTS SELECTED BY THE DISTRICT TO THE VILLAGES/HAMLETS 1. Contents: - Notifying the projects in the villages and commune selected by DPC; - Notifying the people’s responsibilities, rights, and duties with the project 2. Purposes and Results to be achieved: • Purposes: Informing the people in the village about the proposed projects selected and rational reasons for not choosing other proposed projects • Results: People in the village know about the projects executed in their village and commune. They have practical activities to prepare for the participation in building and contributing to the projects 3. Order of implementation: - After the commune meeting, the village representatives will post up the list of projects appraised and selected by the district at public sites or the village bulletin - Informing on the village radio station; - Notifying to the people in meetings The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 18 
  19. 19. PART II – SURVEY, DESIGN AND PREPARATION OF ECO-TECHNICAL REPORT The survey, design, and preparation of estimate and eco-technical report for the projects include the following tasks: 1. Selecting consultants on survey, design and preparing eco-technical report; 2. Process of survey, design and preparing eco-technical report; 3. Holding village/hamlet meetings for approving the project survey and design plans; 4. Acceptance of eco-technical report and construction drawing; 5. Submission, appraisal, approval of eco-technical report and construction drawing. Because these tasks require highly qualified staff in CDBs, DPMO and PPMU infrastructure staff are required to provide frequent support to the CDBs for the best quality outputs; I. Selection of consultants on survey, design and preparing eco- technical report 1. Purposes and results: Selecting the most capable contractor on survey, design and eco-technical report preparation to meet the quality and progress of the project 2. Persons in charge: - Head of CDB - DPMO support staff (Commune support) 3. Steps of implementation: • Step 1: Preparing and approving the TOR - With the support of the DPMO’s TA staff, CDB sets up the provisions on tasks of survey and design consultant based on the approval decision according to form II -1 • Step 2: Sending invitation letter for expression of interest Based on the list of potential consultancy bidders provided by DPI, PPMU, DPMO or the contractors implementing these tasks in the commune, CDB will send an invitation letter for expression of interest to at least 03 bidders according to form II - 2 The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 19 
  20. 20. • Step 3: Learning the list of eligible and capable bidders and selecting the contractor - Inviting bidders to submit Documents of capacity, experience, etc. to confirm their capacity - Considering, evaluating and selecting the most capable bidders for contract negotiation based on the bidders’ Document of capacity and with the support of district TA staff, and PPMU infrastructure staff • Step 3: Invitation for contract negotiation and signing After the result of selecting the consultant for survey, design and eco- technical report preparation is available; CDB will send the selected bidder an invitation letter for contract negotiation according to form II - 3 • Step 4: Contract negotiation - Carrying out the contract negotiation with the consultant based on the tasks approved. The negotiation content includes: + General regulations + Consultant’s tasks + Contract price + Form of contract + Contract implementation time + Payment method and progress of contract.The negotiation minutes are prepared according to form II - 4 with thesignature of representatives of the related parties (CDB, Contractor)Notes: These processes require the support by DPMO or PPMU staff • Step 5: Preparing a written approval on Single-source selection and contract signing - The CDB prepares an approval decision on result of selecting the consultant for survey, design and economic-technical report preparation according to form II - 5 - Signing contract with the consultancy contractor (According to form II - 6) II. Survey, design and preparation of eco-technical report 1. Purposes and results: The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 20 
  21. 21. The project documents of execution design drawing and eco-technical report are the basic legal documents to implement the following tasks: bidding, managing and monitoring the work execution, carrying out payment and final settlement of accounts and the work acceptance. These documents are also the basis for such implementation during operation, and maintenance. 2. Participants: - CDB - Employed consultant - Heads and leadership of villages - DPMO and PPMU TA staff 3. Steps of implementation: a) Survey: Based on approved tasks for the survey and design consultant, the employed consultant sets up survey plan for the project and submits it to the CDB for approval - CDB issues a decision on survey plan approval - The consultant carries out the project survey according to the approved plan - Making survey report and submitting it to the CDB for approval - CDB approves the survey report by the consultant b) Designing, making estimates and preparing economic-technical report: - Based on the survey result, the consultant sets up the design plan, and makes estimates and economic-technical report for the project Notes: - When designing works with simple techniques, the model design plan and shaped design should be taken full advantage. - The design plan must ensure the highest economic benefit, smallest land area and least compensation, with little impact on the environment, etc. - The economic-technical report must clearly show the socio-economic development targets of the area or village/hamlet as well as the targets related to the project’s monitoring and evaluation indicators such as number of beneficiaries, irrigated land area, etc. and clarify the number and value of the people’s contribution and of the Project, or contribution forms by the beneficiaries, etc. The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 21 
  22. 22. During the survey and design, the consultant must consult the benefited communities, villages as well as commune governments to have the most feasible plan. CDB should monitor all of this process of the consultant. DPMO and PPMU staff will support the CDB during this monitoring process. III. Village/hamlet meeting for approval on the project survey and design plans 1. Purposes and results: - Informing the plans and results of project survey and design to the village/hamlet people - Helping the village/hamlet people and beneficiaries of the Project be informed about the design plan, and their contribution responsibility and other responsibilities with the project 2. Participants : - CDB - Employed consultant - Village/hamlet leadership - DPMO and PPMU staff - Representatives of the benefited village people 3. Steps of implementation: - Holding commune meetings to inform the CDB members - Informing the commune people by: + Posting up the design plans at the commune head office + Informing on the radio station of the village + Directly informing the villages - Holding meetings of all the commune people for the plan approval, discussing and reaching an agreement on: + Responsibilities, rights and duties of the people with the project + Duties of the people with the reciprocal contribution as 10% of the project + Method of the work organization, execution, and monitoring with the people’s participation + Compensation and site clearance plans The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 22 
  23. 23. All of these processes are recorded in minutes with the agreement andsignature of CDB, and heads of villages attached with the list of householdsaccording to form II - 7 IV. Acceptance on results of the survey, design and eco-technical report 1. Purposes and results: - Preparing the minutes of acceptance on the quality of survey, design and ecotechnical report in accordance with regulations and contracts 2. Participants: - CDB - Employed consultant - Support by DPMO and PPMU staff 3. Steps of implementation: - Evaluating the quality of survey and design compared to the applicable survey and design tasks and standards - Checking the form and quantity of survey and design result reports - Making acceptance on the volume of construction survey work according to the signed contract of construction survey - Preparing minutes and reaching an agreement on accepting survey and design according to form II - 8 V. Submission, appraisal, and approval of eco-technical report, design of shop drawing, estimate and project bidding plan 1. Purposes and results: Achieving a decision on approving the Document of execution technique design, estimate, eco-technical report and the project bidding plan as a legal basis for CDB to organize the bid, select contractor and execute the works. 2. Participants: - CDB submits the Document of design, estimate, eco-technical report and the project bidding plan - The district’s specialized departments (Department of Industry and Trade, Department of Finance – Planning) are assigned to be responsible for appraisal - The DPC issues a decision on approval The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 23 
  24. 24. 3. Steps of implementation: • Step 1: CDB makes a statement and submits it to the district’s relevant specialized departments for appraisal and approval of the Document of design, estimate, eco-technical report and the project bidding plan with the support of the DPMO and PPMU staff according to form II - 9 • Step 2: DPC assigns the relevant departments to carry out appraisal and submit appraisal report or revision (If any) • Step 3: DPC issues a decision on approval based on the appraisal report by specialized departments Notes: These steps are implemented with the DPMO and PPMU staff support PART III – METHODS OF BIDDING AND BIDDER SELECTION GENERAL INSTRUCTIONSTo ensure strict compliance with recommendations by IFAD in procurement andbidding, the Commune Development Board needs to be aware of the followingissues during the project implementation: - Complying with the Decision No. 2025/2009/QD-UBND dated September 7, 2009 by the PPC on issuing instructions of management, use and disbursement procedure of CIF source, and not misapplying the regulations negotiated by IFAD and the PPC (via instructions and manual). - During selection of consultant, CDB should pay attention to the consultant’s capacities and set up requirements for the consultant such as document quality, and completion period, and should carry out cautious negotiation before making the decision on appointment of consultant. CDB shall actively control the implementation time and avoid the case of excessive workload on the consultant that leads to delay of the project progress - Actively contacting the district’s specialized departments for record & document appraisal and approval - Avoiding unclear and non-transparent situations in bidding that were warned by IFAD such as: + Same font and size in the documents The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 24 
  25. 25. + Minor difference in bid prices by the bidders + Bidders participating in the bid packages all win the bid respectively + If any evidence of bid rigging is found by IFAD, the loan provision will be ended and the whole province has to take responsibility for this problem. METHODS OF BIDDING IN THE PROJECTAccording to general regulations by IFAD, the Project divides the methods ofbidding according to the following bid package prices: 1. For the project with bid package price > 60,000 USD (or an equivalent amount in VND at the current exchange rate) The method of single envelope competitive bidding shall be applied. Biddingdocuments and Bids shall be prepared in both English and Vietnamese. Theopinions and approval by IFAD shall be obtained before the projectimplementation 2. For the project with bid package price > 30.000 USD up to ≤ 60.000 USD (Or an equivalent amount in VND at the current exchange rate):The method of local competitive bidding shall be applied 3. For the project with bid package price ≤ 30.000 USD (Or an equivalent amount in VND at the current exchange rate):The method of local competitive bidding or appointment of contractors shall beapplied 4. For the project with bid package price < 300 million VND:The force account method can be applied. When this method is applied, theOwner should pay careful attention to capacity, labor mobilization capacity,equipment and machines for implementation and supervision in accordancewith the articles No.7 to No.13 of the Decision 2025/QD-UB dated September 7,2009Note: - For consultancy and supervision packages, Bid preparation and evaluation packages consultancy, and insurance packages, the method of appointment of contractor shall be applied due to relatively small bid package value. The order for this will be similar to the appointment of contractor of survey and design consultancy. - Due to the relatively small value of the project’s works, the process of submission, appraisal and approval of the bidding plan may be The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 25 
  26. 26. immediately implemented during the submission, approval and appraisal of economic and technical statements; - CDBs may employ consultant for bidding management (From the document preparation, submission and approval to the signing of the construction contract with contractors). In case, CDBs are of full capacity to carry out the work, they can implement this process by themselves under supervision and with the support of DPMO, PPMU officials.The content of bidding for construction contractor selection in thecompetitive bidding shall include the following steps: • Step 1: Submission, appraisal and approval of the bidding plan • Step 2: Preparation, submission, appraisal and approval of the bidding document • Step 3: Invitation for bids • Step 5: Opening and evaluation of bids • Step 6: Submission, appraisal and approval of bidding results • Step 7: Notification of bidding results • Step 8: Negotiation and signing of the construction contractIn this part, we shall only present the procedures of Bidder selection forconstruction contracts. The order of bidder selection for bidding preparation andmanagement consultancy, consultancy and supervision and insurance packageshall be applied according to part 2 – Selection of consultant for survey, designand preparation of eco – technical statements. A. THE METHOD OF LOCAL COMPETITIVE BIDDING I. SUBMISSION, APPRAISAL AND APPROVAL OF THE BIDDING PLAN Due to relatively small value of the project’s works, this step may be carried out simultaneously with the submission, appraisal and approval of economic and technical statements. However, this part shall be introduced separately here. 1. Purposes and results: - To obtain a specific plan that helps CDB carry out the bidder selection in compliance with the right method and project progress. 2. Participants: The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 26 
  27. 27. - The commune development board (CDB) (Or the employed consultant) - DPMO, PPMU Support officials - The district’s departments (Offices of Industry and Trade, Finance – Planning) - The District People’s Committee 3. Content: The content of the bidding plan shall include: - The packages shall be divided into consultancy and supervision package, construction package, insurance package and bid management consultancy package - Prices and capitals for packages + Price for construction package shall be determined basing on the total estimate, and the project estimate. It is necessary to clearly mention the contribution by the local people in terms of materials, workforce and cash (If any) in the bid package price + Price of consultancy package shall be determined basing on the cost norms pursuant to the circulars, decrees by the Government and concerned Ministries and Industries for each relevant task. - Method of bidder selection: the method of bidder selection for each package shall be specified. + Construction package: whether the package in the form of competitive bidding, appointment of contractor or force account shall be specified. + Consultancy package: Only the method of appointment of contractor shall be applied. - Bidding organization period for each package: the period from the issuance of bidding document to the notification of bidding results which will be specified in the bidding plan. - Type of contract: types of contracts (Price adjustment, non-price adjustment, etc.) shall be specified. The selection of contract types shall be subject to the nature and time of the bid package implementation - Contract implementation time shall be determined basing on the approved project progress and the actual capacity for bid package implementation • Bidding plan documents submitted for appraisal and approval: The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 27 
  28. 28. - Implemented task: (For example, survey, design, and consultancy for bidding management, etc.) - Non-bid tasks (For example, site clearance, compensation, etc.) - Bidding plan: As the above content - Attached appendices (If any) 4. Steps of implementation: • Step 1: Bidding plan submission for appraisal - CDB (Or the employed consultant but signed by the head of CDB) shall prepare the statement and submit it to the district’s office of finance – planning for the bidding plan appraisal - The district’s office of finance – planning verifies the bidding plan in compliance with regulations of the Law on bidding and provides appraisal report • Step 2: Approval of bidding plan - Based on the appraisal report, CDB (Or the employed consultant but signed by the head of CDB) shall prepare and submit the bidding plan statement to the DPC for approval according to form III - 1 - The DPC shall make decision on approving the bidding plan II. PREPARATION, SUBMISSION, APPRAISAL AND APPROVAL OF THE TENDER DOSSIER 1. Purposes and results: - To obtain a quality tender dossier for bidding 2. Participants: - CDB - The employed consultant - The District’s specialized departments (Office of Finance - planning, industry and trade, etc.) 3. Contents of the tender dossier: Refer to the form of small-scaled construction tender dossier by the Ministry of Planning and Investment 4. Order of implementation steps: • Step 1: Preparation of Tender Dossier The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 28 
  29. 29. - The employed consultant shall prepare the tender dossier for the project - The content is as the aforesaid and according to the form of tender dossier for small-scaled project (issued by the Ministry of Planning and Investment) • Step 2: Appraisal of tender dossier - CDB (Or the employed consultant but signed by the head of CDB) shall prepare the statement according to form III - 2 and submit it to the district’s office of finance – planning for tender dossier appraisal - The district’s office of finance – planning shall verify the tender dossier in accordance with regulations of the Law on bidding and shall issue the appraisal report • Step 3: Approval of tender dossier Based on the appraisal report, CDB shall make decision on approving the tender dossier according to form III - 3 III. INVITATION FOR BIDS AND SALE & ISSUANCE OF TENDER DOSSIER 1. Purposes and results: - Bidders in the area can know the bidding information of the project - Obtain the list of participating bidders 2. Participants: - The Commune Development Board - The commune community supervision board - Mass media (Newspapers, television, radio, etc.) - The employed consultant 3. Steps of implementation: • Step 1: Invitation for bids - Based on the bidding plan, CDB (or the employed consultant but signed by the head of CDB) drafts the invitation for bids and sends to newspaper and television, etc. according to form III - 4 • Step 2: Issuing tender dossier to Bidders Bidders will come to buy the tender dossier as stated in the invitation for bids. The participating bidders shall be required to present: The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 29 
  30. 30. - Referral of the bidder’s representative (with seal and signature by the bidder’s representative) - Identity documents of the buyer (ID card, driving license, etc.) • Step 3: Bid closing - At the time as specified in the invitation for bids, the bid closing shall be carried out before the witness of members of the Team of Bidding Experts (The team of bidding experts may be the employed consultant or members of CDB if qualified) - Prepare minutes of bid closing according to form III - 5 - All bids submitted after the specified time will not be opened and returned to the bidders with original seal - The bids must be maintained according to the policy of confidential document management IV. OPENING AND EVALUATION OF THE BIDS A. Bid opening 1. Participants: - The bidding consultancy team - CDB - The community supervision board - Participating bidders - DPMO, PPMU (If any) 2. Steps of implementation: - At the time and place as specified in the invitation for bids, open bids of the bidders before the witness of the parties involved - The team of bidding experts shall open the Bids of the bidders and reads loudly the following information: + Bidder’s name + Bid price + Discount (If any) + Bid bond + Other necessary information - CDB (Or the employed consultant) shall prepare the minutes of bid opening according to form III - 6 B. Evaluation of bids 1. Purposes and results: The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 30 
  31. 31. To select the best qualified bidder who offers the lowest price for the project implementation 2. Participants: - Team of bidding experts - CDB - DPMO, PPMU Officials (If any) 3. Steps of implementation: • Principles: - Only the bid evaluation criteria approved in the tender dossier shall be used for evaluation of bids - Ensure confidentiality, justice, and impartiality during the evaluation process. - Issues to be clarified about the bidders’ Bids shall be in writing and agreed and signed by the head of CDB and sent to the bidders • Order: - Checking the eligible status of the bidders: Whether the bid bond is fully prepared and meets basic requirements according to the tender dossier? The Bids must pass preliminary review steps to be reviewed in the next round - Evaluating the bidders’ experience and capacity: the evaluation criteria in the tender dossier shall be used for evaluation of the Bids. Only documents that meet the above criteria may go to the next round - Finance evaluation: Check the price and arithmetic errors, discount calculations, and adjust differences compared to the tender dossier - Preparing evaluation report: based on the evaluation results by experts, the team of bidding experts shall prepare the bid evaluation report and submit it to the authorities for appraisal and approval according to the Decree No. 85/2009/ND-CP Bidder who offers the bid that meets all requirements on experience, technical and financial capacity as provided in the tender dossier and offers the lowest bid price will be recommended for contract award Note: During the evaluation process, the experts may carry out independent evaluation or evaluation with the approval of the whole team. All members of the expert team must sign the final evaluation report. The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 31 
  32. 32. V. SUBMISSION, APPRAISAL AND APPROVAL OF BIDDING RESULTS 1. Purposes and results: To obtain the bidding approval result and select contractor for the project implementation 2. Participants: - CDB (Head of the board) - Team of bidding experts - PPMU, DPMO officials (if required) - District’s specialized departments (Offices of finance-planning, industry and trade) 3. Steps of implementation: • Step 1: Preparation of statement and submission of bidding result for appraisal - The team of bidding experts shall prepare the statement of bidding results for appraisal (Signed and sealed by the head of CDB) and submits it to the district’s specialized departments for appraisal according to form III - 7 (Note: The statements must be arranged in the order in which the winning bidder shall be at the first rank followed by next bidders attached with the following documents: Evaluation report, bids and bidding document) - The district’s specialized departments shall carry out appraisal of the bidding results and issues appraisal report • Step 2: Approval of bidding results - Based on the appraisal report, CDB shall issue the decision on Approving the bidding results according to form III - 8 VI. NOTIFICATION OF BIDDING RESULTS: 1. Purposes and results: To notify the project bidding results to the bidders, concerned agencies and the whole people in the commune 2. Participants: - CDB - DPMO, PPMU Officials (If required) 3. Steps of implementation: The manual “Guideline on implementing the regulation on decentralization and management of the CIFs" Page 32 
  33. 33. CDB shall notify the award notice according to form III - 9 to the bidders and concerned agencies, and then shall invite the successful bidder to come for negotiation and signing the contract. VII. NEGOTIATION AND SIGNING OF CONTRACT 1. Purposes and results: - To obtain basic agreement on the construction contract - To sign the construction contract 2. Participants: - CDB - The successful bidder - DPMO, PPMU representatives (If required) 3. Content: • CDB and successful bidder shall meet and negotiate the contract with the following contents: - Construction engineering (Criteria to be applied, construction order, etc.) - Construction period - Contract form - Contract value - Advance, payment and final settlement of accounts and warranty After agreement, the parties shall prepare the minutes according to form III - 10 Contract signing: CDB shall sign the construction contract with the successful bidder before the witness of the parties involved: DPMO, PPMU, Community Supervision Board, Commune People’s Committee, etc. The contract shall be prepared in accordance with form III - 11 The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 33 
  34. 34. B. COMMUNITY BIDDING AND CONSTRUCTION OF COMMUNITY BIDDING WORKS 1. Regulations on community bid packages Definition: Community bidding is a process of selecting bidder who is a mass organization, household group or local people group to carry out the construction package which has the value of less than 300 million VND funded by IFAD Programme. - The community bid packages are those of small-scaled and simple works within the scope of hamlet and village such as, house of culture, classroom (primary school, preschool), drying oven for agricultural products, etc. or the package that combines separate and small work items which have the following features: + Bid package value of less than 300 million VND + Simple technical work that can be carried by the local people, mainly using handicraft labors and available materials in local area + Being approved in the bidding plan 2. Purposes: - To facilitate the local people to directly participate in implementing the programme of IFAD project in the local area - The local people will get employment, use their knowledge, carry out simple work and use available materials in the local area to increase their income and help to reduce poverty - To empower rights to the local people for taking ownership and promote the sustainability of the works 3. Bidding participants: - Social mass organizations such as, Farmers’ Association, Veterans Association, Women’s Association, Youth Union, and the participation shall be specified as follows: + At least more than 50% of the members agreeing on bidding participation by the union and association + Having enough time, labors and experience for implementing the package - The participation of the household group, and people groups in the commune shall be specified as follows: The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 34 
  35. 35. + All group’s members are local people (who have permanent residence in the commune) + Representatives of household group and local people group are not under sentence execution period + Having enough time, labors and experience for implementing the package 4. Steps of implementation: • Step 1: Provision of the work survey and design: - According to requirements, almost these work items only require simple techniques and their value is small. Therefore, the survey, design and preparation of economic – technical statement may use the shaped design and sample design provided by DPMO and PPMU. According to the decision No. 2025/QD-UBND dated September 7, 2009 by Cao Bang PPC, the preparation of the economic – technical statement for the package value of less than 300 million VND will not be required. - When providing the shaped design, and sample design for the work, DPMO or PPMU shall full provide both quantity and detailed estimate, total estimate for the Commune Development Boards • Step 2: Bidding plan: - Based on the economic – technical statement and the shop drawing design, total work estimate, the Commune Development Board (Or individual employed consultant) shall prepare the bidding plan with support of the DPMO and PPMU officials according to form III.B - 1 - Contents of the bidding plan: + Bid package name: When assigning the tasks and grouping project tasks into a bid package, CDB should provide a name for such package to fit the purposes of tasks specified by the project + Bid package price: the total amount estimated to be allocated for the work execution. To calculate the package price, the CDB shall base on the approved estimate (if any) or the state’s regulations on expenditure norm or on the market price depending on the information the CDB obtain. For the community package, the package price must be less than 300 million VND + Funds for the bid package: 90% from IFAD capital and 10% from the contribution capital + Method of bidder selection: Community bidding The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 35 
  36. 36. + Time for bidder selection: The time shall be counted from the time CDB gives public notification of the bid package to the time of signing contract with the selected community bidder. This time shall be suitable with the project’s progress in the economic – technical statement + Contract form: Due to simple and small-scaled nature of the tasks and work, the Commune Development Board needs to specify the contract form as Fixed-price Contract + Time of contract execution: The time of contract execution shall be calculated from the time the Commune Development Board signs the contract with the community bidder to the time the bidder finishes and hands over the products and work to CDB. CDB should calculate this time for ensuring the fulfillment of the tasks in accordance with the time of project implementation - Submitting the bidding plan for appraisal: The Commune Development Board submits the bidding plan to the District’s specialized departments for review and appraisal. The submission document shall include: + Statement according to form III.B - 2 + Bidding plan according to form III.B - 1 + Other related documents - The district’s departments shall carry out appraisal of the bidding plan - CDB shall issue decision on approving the bidding plan according to form III.B - 3 • Step 3: Invitation for bids - Based on the approved bidding plan, CDB shall publicly notify the construction work or goods to be provided so that all commune people are aware of and register for participation. The invitation for community bid shall be in accordance with form III.B - 4 - Form of notification: Posting notice on the bulletin of the hamlet, commune, or reading on radio station of such hamlet, commune. • Step 4: Setting up selection criteria: - CDB shall set up criteria on selecting execution community and submits to the commune People’s Committee for approval. The selection criteria must be simple, understandable and close to specific requirements of each work as well as specific conditions of each commune/hamlet. In addition to the price, there are some suggestions for the content of these criteria: The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 36 
  37. 37. + Foreman steering the execution community shall be required. The foreman shall be experienced in the works of the similar nature in the area. The more skilled and experienced foreman shall be preferred. + Community of plentiful women, ethnic minority people and the poor shall be given priority for realizing the motto of “Local people get the works and employments” to increase income and improve living standards in terms of material and spirit for the people • Step 5: Public meeting with the local community shall be held to introduce the assignment to be done in order to provide the local people with necessary information about the bid package: Meeting contents: - Description of the work, construction location - Technical requirements of the work - Time of execution - Anticipated bid package price - Quality requirements of the work - Deadline for registration of bidding participation • Step 6: The mass organizations, and household (local people) group shall prepare documents and workforce to participate in negotiation and bidding - Based on the work load, technical requirements, materials and working days, the mass organizations or household group/local people group shall discuss to agree on the bid price and conditions for executing the bid package in order to prepare for the negotiation and bidding process - The mass organizations, and household (local people) group shall appoint 1 representative to participate in the negotiation (The representative must be agreed by at least 70% of the group members and the written election document shall be required) - Preparing necessary documents relating to for the capacity of bid package execution: workforce (labors), experience, skills, materials, anticipated methods (plans) of executing the bid package (the list of workforce, experience, skills and proposed preliminary execution plan shall be required) • Step 7: Selection of community bidder: The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 37 
  38. 38. - In the event only one mass organization or household group, or local people group takes charge of executing the bid package, such mass organization, household group, or local people group shall appoint a representative to negotiate with CDB. During the negotiation, CDB will be responsible for obviously explaining purposes, meanings and tasks to be implemented by the bidder so that the local people understand thoroughly the tasks. Specifically, the following main issues will be discussed: + Work load to be done + Amount to be paid (working days) + Working time and deadline for work accomplishment + Work quality to be obtained and conditions of acceptance, signing the minutes of acceptance as the basis for payment + List of the people committed to participating in the work implementation - In case a number of mass organizations/ household groups, or local people groups (The Youth Union, Women Association, Veterans Association, Co-operative teams and mason team) wish to execute the bid package, the bidder who proposes the lowest price will win the bid and be invited to negotiate for contract signing. If such negotiation fails, the bidder who offer the second, third lowest price will be invited respectively • Step 8: Preparing documents for proposing appraisal and approval of bidding results: - Head of CDB shall prepare the statement according to form III.B - 5, and submit it to the district’s departments for appraisal of bidding results. The content shall include: + Evidences proving that the method of work execution applied is force account: small capital, simple nature, using handicraftsmen as the main labor force, available materials for the work, etc. + Evidences showing that CDB is qualified to execute the work themselves: specifying the name of the mass organization/union that can take charge of, and execution capacity, experience and prestige of such organization, etc. + The work value approved in the investment report + Construction period + Other issues The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 38 
  39. 39. - The district’s departments shall verify and provide appraisal report - CDB makes approval decision according to form III.B - 6 • Step 9: Contract negotiation and signing - After getting the approval result, the Commune Development Board invites the bidder and negotiates the contract signing according to the following principles: + The contract price must not exceed the approved work estimate + Controlling the labor price at a flat rate paid by the community bidder according to this price basing on the market price and within the norm (With calculation under the support of DPMO & PPMU officials) - Head of CDB shall sign the contract with the representative of the construction contractor - The contract is signed 5. Construction, payment and final settlement of accounts of the community bidding works • For CDB: - After the contract is signed, CDB shall make an advance to the contractor at least 50% of the contract value (but not exceed the capital planned or the year estimate arranged for the package) - During the contract implementation, CDB or community supervision board shall appoint technical officials to instruct the people to implement the work in accordance with requirements of construction engineering, criteria and code. CDB, community supervision board and the representative of beneficiary shall carry out acceptance of each work item as the basis for payment made to the people • For the successful mass organization/ household group - The successful mass organization/ household group shall prepare materials, and labors to implement the package in accordance with technical requirements and the package execution period mentioned in the contract - The successful mass organization/ household group shall propose CDB to provide forms of documents serving the disbursement, payment and final settlement of accounts (timekeeping table, material purchase receipt from local people, table of finished workload, etc.) The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 39 
  40. 40. - Executing the work in accordance with technical requirements of the owner • Payment and final settlement of accounts - The contract shall be signed by and between CDB and the mass organization, household group or local people group who execute the package. Such contract shall not require the seal of party B. - The table of finished workload must be signed by CDB and the representative of the team, household group, or local people group executing the package and the supervisors (supervision and consultancy, community supervision board) - CDB shall prepare the proposed document of advance payment, and payment for the team, groups of households/local people in charge of execution in order to directly pay for individuals participating in execution of the work. In case the representative of the execution team/group has a bank account, the State Treasury will transfer money to such account as required by CDB - Based on the contract terms and the execution progress, CDB will determine the advance level appropriately to the investment capital demand of the project which shall not exceed the real capital demand for the execution team, and group of household/people. - CDB and the community supervision board are responsible for closely supervising the wage payment for execution participants The purchase receipt for materials such as rock, sand, gravel, bamboo, neohouzeaua, and wood exploited in the commune area is not required. The seller and buyer can declare by themselves and with confirmation of the head of village and the commune People’s Committee in the selling area; the two sides can determine the price and quality themselves but the price shall not exceed the average market price in the district area. The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 40 
  41. 41. PART IV: PROCESS OF WORKS QUALITY MANAGEMENT GENERAL INSTRUCTIONSDuring the implementation of acceptance, CDB shall give top priority to thequality management.Supervision of the work shall comply with management regulations of the Stateand IFAD and shall be implemented as follows: - CDB: supervision personnel (called the Owner supervisor) shall be required to take charge of supervising progress, solving problems arising during the execution, etc. and quality supervision, inspection of internal acceptance document of the contractor, preparing A- B acceptance document if qualified (Employing a consultant is recommended because the quality supervisor is required to obtain the supervision certificate appropriate with the project scope). - Supervision consultant: in case the supervision consultant is employed by the owner, the consultant shall act as the Owner’s representative for supervising the work and preparing quality acceptance documents, checking the progress, solving problems arising at the construction site and preparing reports to the Owner as provided (note: although the consultant is employed, the Owner shall still be responsible for its supervision task as an Owner). - Community supervisor: all CIF works shall require the community supervision board participating in supervising the execution process, checking the signature in acceptance document (The community supervision board implements in accordance with regulations in the Decision No. 2025/2009/QD-UB by Cao Bang PPC and the Decision No. 80/2005/QD - TTg dated 18 April 2005 by the Prime Minister on the community investment supervision rules and the joint Circular No. 04/2006/TTLT-KH&DT-UBTUMTTQVN-TC dated 4 December 2006 by the Ministry of Planning and Investment – Standing Board of Vietnam Fatherland Front Central Committee – Ministry of Finance on guiding the implementation of the Decision No. 80/2005/QD-TTg dated 18 April 2005 by the Prime Minister). Steps of implementation: • Step 1: Preparing the Contract of Employing the Supervision Consultant • Step 2: Establishing the community supervision board and the community supervision team • Step 3: Handing over the execution area to the contractor The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 41 
  42. 42. • Step 4: Managing the execution and accepting, and handing over the project for putting it into use • Step 5: Management of Additional works I. SELECTION OF SUPERVISION CONSULTANT The selection procedure of supervision consultant for CDB is similar to the selection of survey and design consultant and preparing eco – technical report. Note: The supervision consultant may be: - An organization, company - Individual (Complying with regulations of the Law on Construction, Decree No. 209 and Decree No. 12 by the Government) - The supervision consultants shall be required to provide appropriate diploma, certificate and practice certificate of supervision, etc. II. ESTABLISHMENT OF COMMUNITY SUPERVISION BOARD 1. Purposes and results: - The establishment is to ensure that the work shall be constructed in accordance with the given objective, quality, time and anticipated expenditure as well as facilitate the people benefited from the project to directly participate in management and supervision of implementation process on a democratic, public and transparent basis; - The community supervision board and community supervision group shall be positioned in CDBs and hamlets respectively for the project 2. Participants: - The community supervision board shall include 3 to 5 persons who are members of CDB and directly benefited from the project (for example, Head of the village, deputy head of the village, farmer association, etc.) - At least 1 person who owns certain knowledge of construction engineering or management of construction process (he/she can be the construction or cadastral official in the commune, etc.) shall be required. 3. Obligations and rights: - Coordinating with the employed supervision consultant to implement daily checking and supervision of the work construction in terms of construction quantity and quality, cost and time for accomplishment of the work items The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 42 
  43. 43. - Proposing to the head of CDB to suspend execution of the work when the poor quality and quantity of work and violation of implementation time are found during the construction. - Opening the journal of the community supervision board, regularly taking note of the execution condition of the work, preparing periodic and regular reports of the execution condition and submitting it to CDB - Presenting CDB to acquire opinions from local people on any issue related to the construction of the work 4. Supervision method and approach: - The selection of appropriate regime and frequency of regular or periodic checking and supervision shall be based on specific conditions of each commune, and the number as well as nature, scale of the work and capacity of the members of the supervision board - Methods: the following methods shall be applied: - Intuitive inspection: Directly touching, listening, knocking and looking at the parts or components, or materials used for the work in order to inspect and evaluate quality of such parts or components of the work; - Inspection shall be carried out by using simple measuring tools such as ruler, measuring tape, etc. to inspect the size of structure and materials, etc. for the work 5. Order of implementation: - Supervising preparations for the construction: checking the construction area, construction site, landmarks, electricity and water supply systems to the site, number of material types used for the construction - The inspection of the implementation process of the Contractor at site: Check the centre line, landmark, size and time, etc. and other tasks according to the design, shall be carried out together with the supervision consultant. - Participating in final acceptance of the work parts. Taking note and delivering periodic reports, receiving and making reports of the opinions by the local people to CDB. - Participating in acceptance and handing over of the project for putting it into use Steps of implementation are specified as follows: The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 43 
  44. 44. Inspecting preparations for construction: + Documents, design drawings + Construction area, construction site + Materials provided for construction of the work Regular/ periodic inspection of the execution quality: + According to each type of work: excavation, backfilling, etc. + According to parts and structure: Foundation, surface, walls, etc. Confirming the work quantity and quality: + Agreeing with the supervision consultant on quantity and quality of the finished work items. Taking note and reporting the implementation status: + Taking note of the implemented works on daily basis + Proposing ideas to the supervision consultant and DPMO, PPMU staff at site Participating in the work acceptance and hand-over: + Contributing opinions on quality, time and cost of the execution + On behalf of the CDB, notifying the local people the issues relating to construction process The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 44 
  45. 45. III. HANDING OVER THE CONSTRUCTION AREA TO THE CONTRACTOR: 1. Purposes and results: - To hand over the construction locations, landmarks, the works direction and technical issues relating to the work to the contractor - The contractor shall take over the construction area, main landmarks as well as other issues related to execute the work 2. Participants: - CDB - Design consultant - Supervision consultant - Contractor - The community supervision board 3. Steps of implementation: - Based on the landmarks established during survey and design process, the design consultant shall hand over the construction area to the contractor before the witness of the supervision consultant, CDB and the community supervision board - The contractor shall re-check the landmarks, location and direction of the work handed over by the design consultant (Preparing recommendation document if any defects are found) - Based on the site clearance landmarks, CDB shall carry out the site clearance and hand over the site to the contractor - Preparing the minutes of the land hand-over according to form IV - 1 - CDB shall hand over the document to the contractor according to form IV - 2 IV. CONSTRUCTION MANAGEMENT: 1. Purposes and results: - To help CDB understand the steps of quality management during construction process - CDB shall manage the construction process of the work to ensure the construction quality and time as regulated in the signed contract. 2. Participants The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 45 
  46. 46. - The employed supervision consultant - CDB - The contractor - The community supervision board 3. Steps of implementation • Step 1: Inspecting the contractor’s process of equipment and labor force mobilization - CDB together with the supervision consultant and the community supervision board shall inspect machines, equipment, and labor force proposed by the Contractor in his bid for execution of the work • Step 2: Inspecting the materials prepared for the works - Based on the current and general regulations of the project, CDB together with the community supervision board shall inspect the ex- factory certificate of materials before using them for the works. The contractor can only use the materials after providing such certificate. • Step 3: Accepting the construction work - Each construction work item must be accepted in order (for example, items of excavation, wall building, layer backfill, etc.) and agreed by the supervision consultant to implement the next tasks - Before accepting the construction work, the contractor must carry out internal acceptance of his own construction works and records into minutes according to form IV - 3 - Implementing acceptance of the construction work. Participants in acceptance: The supervision consultant, representative of the contractor (It is possible to invite CDB and the community supervisor if required) according to form IV - 4 • Step 4: Final acceptance of the construction work item: - The final acceptance of the construction works for all big or hidden finished items shall be carried out (for example: excavation, backfilling, wall building, and plastering work items …) - Before final acceptance of the construction work items, the contractor shall carry out final internal acceptance of his construction work items and records into minutes according to form IV - 5 - Implementing final acceptance of construction work items. Participants in acceptance: the supervision consultant, representative of the contractor, The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 46 
  47. 47. CDB (It is possible to invite the community supervisor if required) according to form IV - 6 • Step 5: Acceptance of the as-built document: - The contractor shall prepare the as-built document and submit 07 sets of the document to CDB before the acceptance and handing over the project for putting it into use - Content of the as-built document: + Volume 01: Legal documents + Volume 02: Records of works quality management Specific regulations will be mentioned in the Appendix – Requirements of the as-built document - CDB shall establish a team of as-built document acceptance - Inspecting and accepting the as-built document. Participants include: Head (Deputy Head) of CDB, supervision consultant. Invited participants: DPMO, PPMU, the community supervision board, contractor, and such work shall be made into written document - In case the acceptance can not be carried out and the contractor is required to make amendment and to complete the document, the number of days within which the contractor is requested for amendment, completion and reacceptance shall be specified. • Step 7: Acceptance, hand-over of the work for putting into use: - After accepting the as-built document, establishing the acceptance council to hand over and putting the works into use - Participants: head of CDB as the Council Chairman, other members include: Representative of the supervision consultant, representative of the design consultant (If required) and invited participants: PPMU, DPMO and the Community supervision board… - Content: + Bases for acceptance + Evaluation of execution quality + Evaluation of execution progress + Evaluation of execution quantity and cost + Amendments against the approved design + Opinions of the parties The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 47 
  48. 48. And such contents shall be made in writing with signatures and seals of the parties according to form IV - 7 V. MANAGEMENT OF ADDITIONAL WORKS: 1. Objective and output: - To manage additional costs during construction of the work - To overcome shortcomings that are not considered in the construction design - To avoid the wastage, false statement and collusion among the parties 2. Participants: - CDB - The district project office, the District People’s Committee - The supervision consultant - The design consultant - The contractor 3. Steps of implementation: Principle: Efforts should be made to avoid arising problems caused by subjectiveness. When the problems arise, settle the expenditure increase within the scope of under 10% of the signed contract value, except for the force majeure. • Step 1: Preparing the minutes of field inspection - As the contractor finds out mistakes in the design and the supplement to the arising items to fulfill the work is required , the contractor should submit official document to CDB to propose for supplementing the arising items - CDB shall send invitation letter to summon the concerned parties (The supervision consultant, design consultant and Community supervision board) to implement the field inspection and prepare the Minutes of field inspection according to form IV - 8 with signatures and seals of the parties • Step 2: Submission of arising and additional quantity and value for approval - Based on the quantity and unit price submitted by the design consultant and inspected by the supervision consultant and CDB, establish the statement of applying for the supplement of arising items (Including both The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 48 
  49. 49. value and quantity) and submit it to the DPMO and the District’s specialized departments for appraisal. The statement shall be in accordance with form IV - 9 - The district’s project office and other departments shall verify and issue the appraisal document - After appraisal results are issued, CDB shall make decision on approving the quantity and value of additional arising items. The approval decision shall be in accordance with form IV - 10 • Step 3: Making decision of adjustment of the project estimation and delivering it to the concerned parties - In case the arising value does not exceed 10% of the package value, CDB will issue a decision of adjusting total estimation of the project and deliver it to the concerned parties (DPMO, PPMU, treasury…) - In case the much excessive arising quantity which exceeds the approved total investment, the District People’s Committee shall issue a decision on adjusting total investment of the project and deliver it to the concerned parties (the Commune People’s Committee, DPMO, PPMU, Contractor, Supervision consultant, Design Consultant and treasury…) The manual “Guideline on implementing the regulation on decentralization and management ofthe CIFs" Page 49 

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