Project implementation management

5.2.1. Organization of project implementation management

1. Organization method for project implementation management

Ho Chi Minh City People's Committee has established the HCMC Environmental Sanitation PMU (hereinafter referred to as the PMU) under the Department of Transport playing a role as the Employer of HCMC Environmental Sanitation Project -phase 2 according to the Decision no. 4422/TB-VP dated 19 August, 2013.

Project Management Unit consists of in charge officers whose extensive experience in management and direct operation of ODA projects and full capacity to perform the tasks of the Project Owner according to the prevail regulations.

2. Generalization of working mechanism between Ministries, Sectors in project management

The Government of Vietnam approved by the Prime Minister to direct all ministries and governmental agencies with the specific functions and duties.

Ministry of Planning and Investment is the leading agency to help the Prime Minister to collect the opinions of the ministries, sectors concerned and the local authorities, strengthen and submit the Prime Minister for approval of the Investment Report for the projects and annual investment plans.

The Ministry of Finance is responsible for issuing guidance for financial mechanism of the project before the sponsor agreement is signed. The Ministry will review, consider and express the agreement in writing to allow the withdrawal of capital from donors to cover the cost of the project at the request of the Project Management Unit. The Ministry will also lead to monitor and approve the balance after the project is completed.

State Bank is assigned to negotiate on behalf of the Government, signed the sponsor agreement and other legal documents related to the WB.

Ministry of Construction uses his tasks and functions construction management to consider the technical problems of all project components.

Ministry of Natural Resources and Environment should consider the environmental issues of the project.

3. Generalization of coordination mechanism between Departments, relevant sectors of the city in project implementation

Once the loan agreement has been approved and the loan is provided, the Government shall assign Ho Chi Minh City People's Committee to perform the loan. Ho Chi Minh City People's Committee shall provide counterpart funds for the project, ensuring that agencies comply with the obligations specified in the loan agreement. Project Management Office on behalf of Ho Chi Minh City’s People's Committee to direct the execution and management of the State in accordance with the laws of ODA funded programs and projects of the City.

Ho Chi Minh City People's Committee issued Decision 4422/QD-UBND dated 19 August, 2013 on the establishment of the Project Management Unit of the city’s Environmental Sanitation project (hereinafter referred to as Project Management Unit) under the Department of Transport, playing role as HCMC Environmental Sanitation Project -phase 2.

The Department of Transport will directly manage the Project Management Unit and support it under the implementation of the functions and tasks and simultaneously solve and handle contents beyond the competence to ensure project progress.

The departments and relevant sectors of the City shall base on the functions and assigned tasks to assist the Employer in the project's contents as well as arisen issues to help the project fulfill the schedule as committed with the sponsors.

Project Management Unit shall establish the Project Management Unit to help him organize project implementation. Project Management Unit shall work directly with contractors, consultants to implement the project. The disbursements for the project will be disbursed to contractors by Project Management Unit after acceptance of the work volume in accordance with the current disbursement procedures.

5.2.2. Role of organizations, functional agencies organizing the project implementation The project implementation is decentralized from central to local.

The Government of Vietnam

State Bank, Ministries, Sectors

HCM city’s People Committee

HCM city’s ministries, sectors

PMU

Contractors

WB

- The Government: To consider and approve the list of projects, sign framework agreement between the Government of Vietnam and World Bank. Manage macroeconomic in the management and use of ODA fund.

- Ministry of Planning & Investment: To be leading agency and chairman in charge of the implementation of ODA-funded projects such as guiding the governing agency to build a list of programs and projects required ODA of each agency to make a list of ODA requirement for the Prime Minister’s approval.

- Ministry of Finance: To be official representative for “Borrower” who is the Government or Socialist Republic of Vietnam in specific international treaties for ODA fund. Preside over the affairs of the financial sector such as: promulgating regulations on lending, distribution, financial condition, financial mechanism etc.

- Relevant Ministries, Sectors: To coordinate with the Ministry of Planning and Investment, give comments and perform works related to State policy for ODA funded projects. Implementing state management functions for programs and projects in accordance with the law. Upon request, review and comment in writing on issues related to programs and projects within stipulated time.

- Ho Chi Minh city’s People Committee: To coordinate with the Ministry of Planning and Investment in submission to the Government on signing of specific international treaties on ODA for programs and projects in the field of being charged under the provisions of this Regulation; assure quality and effectively use of ODA to be directly controlled and implemented by the locality; take responsibility for land acquisition, site clearance and implementation of compensation resettlement policies for programs and projects in the area District 2 under the provisions of law.

- Responsibilities of Ho Chi Minh city’s Department of Transport-Employer of the Project. + Establish, submit for approval; organize compensation, site clearance, receive handover of construction site; prepare, submit for approval of bidding plan, bidding documents; organize bidding; bid evaluation, submit bidding results to the city People's Committee for approval.

+ Prepare application for receiving or leasing for the construction of the project works. + Coordinate with local authorities to implement the land compensation, crops etc site clearance and hand over the construction site in accordance with the schedule.

+ Coordinate with relevant agencies to promptly solve the necessary works to be done during the implementation.

+ Organize final payment, submit final payment of works for approval.

+ Project Management Unit of the city Environmental Sanitation: On behalf of the Employer to carry out all the work of the project as preparing, submitting, performing works of investigation, compensation, resettlement, preparing, submitting and evaluating bids, signing and implementing the contract with successful Bidder according to the current regulations etc.

- Responsibilities of the Consultant

+ Perform works before the investment (investigation, social economic survey, preparation of work construction investment project, basic design etc).

+ Support the Employer in the process of selecting, negotiating, negotiating and contracting with the parties. The Consultant shall help the Employer in the form of report to the superiors at every step of implementation.

+ Provide the Contractor all necessary information, perform well their responsibilities in the construction process.

+ Take part in considering the plan, schedule submitted by the Contractor; propose measures in favor of the project.

+ Assist the Employer to check and certify the quantity and quality of construction work items. Timely notify to the Employer any arisen mater regarding the quality of the work.

+ Prepare data, technical documentation, and finance... as a legal basis for the completion of construction, handover and putting the work into operation.

- Other relevant agencies: To implement the project as scheduled, the HCMC Environmental Sanitation PMU shall need to coordinate closely with other agencies and authorities such as: District 2 People's Committee, the Department of Planning and Investment, Department of Construction, Department of Finance, Department of Natural Resources and Environment, Committee of the relevant ward and communes etc to timely solve tasks such as funding, applying for permits of construction, compensation, treatment of underground works, final payment etc.

5.3. Project implementation schedule

To perform well works of the project, all involved agencies and authorities must participate and take responsibility for the project.

Under the provisions of Vietnam Law, the project management and implementation shall comply with the Decree no.12/2009/ND-CP dated 10 February, 2009 and the Decree No. 83/2009/ND-CP dated 15 October, 2009 of the Government on amending and supplementing a number of articles of Decree No. 12/2009/ND-CP on management of work construction investment projects.

To implement the project, it can be divided into 03 phases: preparation phase for investment, investment phase and operation & management phase. For each phase, the responsibilities of involved parties and agencies involved are different but generally agree on the content of works to be done.

Table …: Project implementation schedule

No Contents Completion time

1 Preparation of work construction investment project June, 2013 2 Appraisal from governmental agencies (ministries and sectors

under the Government), amendment of the project

August, 2013

3 Submission to WB for appraisal October, 2013

4 Appraisal delegation of WB come to HCM city for survey November, 2013

5 Project completion December, 2013

6 Letter of project acceptance of WB January, 2014

7 Preparation of bidding documents (EPC), submission to WB for approval

March, 2014

8 Bidding evaluation, approval of bidding results, negotiation for signing the Contract

9 Commencement of construction September, 2014 10 Training, instructions of operation, commissioning, work

handover

January, 2017