Mechanism of capital management for JICA2 Project
Circular No. 118/2013/TT-BTC of August 23, 2013, guiding the mechanism of financial management of ODA loans from the Japanese Government for the Project on Restoration and Sustainable Management of Protection Forests (JICA2 Project)
The JICA2 Project aimed at restoring and sustainably managing protection forest areas and improving livelihood for people in 11 provinces (Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Thua Thien Hue, Quang Ngai, Binh Dinh, Phu Yen, Ninh Thuan and Binh Thuan) under Loan Agreement VN11-P9 signed between JICA and the Government of the Socialist Republic of Vietnam on March 30, 2012 (Loan Agreement) and conformable with the investment project approved by the Ministry of Agriculture and Rural Development in Decision No. 319/QD-BNN-HTQT of February 22, 2012.
Accordingly, JICA loans under the Loan Agreement are the Government’s loans managed in accordance with the Law on the State Budget and legal documents guiding the Law and current expenditure regulations. The Ministry of Finance shall repay loans (principals and interests) to JICA when these loans are due. These loans are included in the state budget and allocated to the Ministry of Agriculture and Rural Development for performance of its tasks in project activities (including also foreign consultancy for the whole Project) and to other localities in the form of the central budget’s targeted additional allocation for local budgets for implementation of component projects in these localities.This Circular takes effect on October 9, 2013.
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