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ASIAN DEVELOPMENT BANK Loan 2750/2751-VIE: University of Science and Technology of Ha Noi Development

(New Model University) Project REVIEW MISSION, 23 SEPTEMBER-2 OCTOBER 2013

MEMORANDUM OF UNDERSTANDING

I. INTRODUCTION 1. The University of Science and Technology of Ha Noi Development (New Model University) Project (the Project) was approved by the Asian Development Bank (ADB) on 25 April 2011 for $213.0 million ($210 million for the project and $3 million for resettlement). ADB is financing $190 million of this – $170 million OCR and $20 million ADF Hard-Terms – and the Government is providing $23 million in counterpart funds. The loan agreement was signed on 10 November 2011 and was made effective on 1 March 2012. The project seeks to establish a new model university (NMU) focused on international standard teaching and research in science and technology. This NMU—the University of Science and Technology of Ha Noi (USTH)—will demonstrate a new policy framework for the governance, financing, and quality assurance of universities in Viet Nam.The Government of France is providing about €100 million to support development and operating costs until at least 2020, including provision of curricula, research capacity, the rector, academic staff, and scholarships. The USTH opened in October 2010 using facilities at the Viet Nam Academy of Science and Technology and will migrate to its new campus at Hoa Lac Hi Tech Park (HHTP), which is being developed in cooperation with the Japan International Cooperation Agency (JICA), once it is ready. 2. The expected impact of the project is that the contribution of higher education to innovation in Viet Nam is increased. The performance target is that Viet Nam’s rank on the innovation pillar of the World Economic Forum’s Global Competitiveness Index increases from 49th in 2010 to 45th by 2022. The project's expected outcome is a high-quality NMU that generates industry-relevant science and technology teaching and research. The project will deliver four outputs: (i) an effective management and governance system for the USTH will be developed and implemented, (ii) systems to promote high-quality and relevant academic programs at the USTH will be developed and implemented, (iii) physical facilities at the USTH will be constructed and outfitted, and (iv) effective project management and implementation. 3. An Asian Development Bank (ADB) Mission1 visited Viet Nam from 23 September-2 October 2013. The objectives of the Mission were to: (i) Meet with officials from HHTP, the PMU-USTH and the French Government, to discuss progress on resettlement under the project; (ii) Review progress on project implementation since the most recent review mission in May 2013, including progress on campus design and construction activities, and other issues related to preparation of the architectural design competition, USTH site preparation and civil works; (iii) Assess UIU progress on project start-up activities; (iv) Meet with the Vice Minister of the Ministry of Education and Training (MOET); (v) Meet with officials from the French Embassy to discuss issues related to USTH and project implementation; (vi) Discuss a possible $20 million project

1 The Mission comprised Norman LaRocque, Senior Education Specialist/Mission Leader; Jose Tiburcio Nicolas,

Safeguards Specialist (Resettlement), VRM; and Donna Medenilla, Associate Project Officer.

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cofinancing arrangement with Swiss firm Aid and Investment Agency (AIA); (vii) Discuss changes to the Project Administration Manual (PAM) and the Procurement Plan; and (viii) Discuss progress of the implementation of the Vietnamese-German University (VGU) project with representatives from the World Bank.

4. A mission kick-off meeting, chaired byMr. Nguyen Van Ngu, was held on 23 September2013 and a wrap-up meeting, also chaired by Mr. Nguyen Van Ngu, took place on 2 October2013. The Mission met with Mr. Bui Van Ga, Vice Minister of MOET, as well as with representatives from the PMU-USTH, UIU, USTH, HHTP, the French Embassy, AIAand the World Bank. The Mission also met with the Senior Portfolio Management Specialist, Vietnam Resident Mission (VRM) to brief him on Mission outcomes.The list of people met is in Annex 1 and the final schedule of meetings is in Annex 2. II. MISSION FINDINGS

A. Project Implementation 5. Overall Project Performance. The original loan allocation of $190.0 million currently amounts to $189.21 million (L2750 $170.0 million and L2751 $19.21 million). As of 30 September 2013, physical progress was estimated at 12% against an elapsed loan period of 37%. The Mission and the PMU-USTH emphasized the need to accelerate project implementation activities. 6. Contract Awards and Disbursements. Cumulative contract awards are mainly contracts for PMU-USTH consultants, project management expenditures and project vehicle. Cumulative disbursements are mainly imprest account of $1.1 million and interest charges of $0.33 million. The original loan allocation of $190.0 million currently amounts to $189.21 million (L2750 $170.0 million and L2751 $19.21 million). Actual cumulative contract awards for L2750 (OCR) were $0.26 million and for L2751 (ADF) were $0.62 million.Actual cumulative disbursements for L2750 (OCR) were $0.65 million and for L2751 (ADF) were $0.94 million. The Loan Status for both the OCR and ADF loans is in Tables 1 and 2.

Table 1: Loan 2750-VIE: USTH Development (New Model University) Project Loan Status, by Category (OCR), as at 30 September 2013

Category No. Category Name Allocation Contract

Awards % Disbursement %

01 Equipment 39,600,000 02 Works and Furniture 90,188,000 03 Design and Construction Management 8,544,000 263,881 04 Interest and Commitment Charges 10,353,000 324,964 05 Unallocated 21,315,000 99 Imprest Account - PMU USTH 0 250,000

99A Imprest Account - PMU UIU 0 80,000 Total 170,000,000 263,881 0.2 654,964 0.4

Table 2: Loan 2751-VIE: USTH Development (New Model University) Project

Loan Status, by Category (ADF), as at 30 September 2013 Category

No. Category Name Allocation Contract Awards % Disbursement %

01 Capacity Building 7,737,192 27,508 17,508 02 Systems Development and Training 1,810,880

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03 Scholarships 961,840 04 Design and Construction Management 5,261,685 175,865 19,870 05 Project Management 2,289,749 369,430 109,933 06 Vehicles 95,505 44,887 44,887 07 Interest Charge 964,814 8,424 08 Unallocated 96,032 99 Imprest Account - PMU USTH (4,688) 450,000

99A Imprest Account - PMU UIU 362 287,446 Total 19,213,371 617,690 3.2 938,068 4.9

Grand Total 189,213,371 881,571 0.5 1,593,032 0.8

7. Project Management.MOET is the Executing Agency for the Project. It has established an Implementing Agency (IA), the PMU-USTH. The PMU-USTH is responsible for: (i) implementing Output 3 and part of Output 4; (ii) processing withdrawal applications, (iii) supporting the UIU in the implementation of Outputs 1 and 2; (iv) monitoring USTH activities; and (v) preparingproject reports. The PMU-USTH is headed by a full-time Project Director, drawn from MOET. MOET has assigned a full-time Deputy Project Director and four part-time staff to assist the PMU-USTH in project implementation. The PMU-USTH has recruited additional staff to assist in the implementation of the project. The MOET has recognized the establishment of the UIU. 8. The University Implementation Unit (UIU) is the IA for Outputs 1 and 2. The UIUis:(i) implementing activities under Outputs 1 and 2 and participate in the delivery of Output 4; (ii) managing the contracting and provide oversight of USTH’s internal management and academic development;(iii) determining the specifications and lists of specialized equipment for laboratories and the library; (iv) liaising closely with the construction project manager to advise on and support the design specifications of the buildings and laboratories to be built; (v) processing withdrawal applications; and (vi) managing the procurement of the laboratory equipment and ensure coordination of the procurement and installation of equipment to ensure it is appropriately linked to the construction schedule. The UIU is headed by an Executive Project Director and a Project co-Director. Senior UIU staff are drawn from USTH, while staff below unit head level will be contracted from outside USTH. 9. The previous Review Mission noted that the UIUhad made little progress in either recruitment of consultants or in procurement and agreed to some changes to address this issue. The previous Review Mission also noted that project implementation arrangements would be reassessed during the next Review Mission and that changes would be considered if there was insufficient progress in project implementation. The view of the Mission is that, while there has been some progress (eg. appointment of national procurement consultant), this has not been sufficient to allay concerns about the pace of project implementation. The Mission noted that, despite the passage of 4 months since the last Review Mission, the International Higher Education Procurement and Planning Consultant is not yet appointed and the UIU Director is unable to commit 100% of his time to project implementation. 10. In order to address this, the Mission proposed a change to project management arrangements. Under these revised arrangements, the PMU-USTH will lead and undertake major consultant recruitment/procurement activities on behalf of the UIU, in addition to its own consultant recruitment/procurement. A list of the UIU consultant recruitment/procurement activities to be undertaken by the PMU-USTH will be developed jointly by the UIU and the PMU-USTH and submitted by the PMU-USTH to ADB by 7 October 2013. The UIU will play more of an advisory/consultative role. To put this into effect, the major consultant

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appointments/procurement processes will be transferred to the PMU-USTH from the UIU and the recently recruited UIU national procurement consultant will be co-located at the PMU-USTH officesand will be guided by the PMU-USTH’s International Consultant for Procurement and Project Implementation(although the position will remain in the UIU organizational chart). The Mission emphasized that this change was only meant to ensure that the PMU-USTH would take over the ‘transaction’ function in procurement/consultant recruitment, and that it was not intended to usurp the UIU’s role in, and responsibility for, delivering on the Project’s Outputs 1 and 2. Consultants selected under these new arrangements will need to work closely with the UIU/USTH – just as they would have if they were hired under the previous arrangements. Similarly, any procurement undertaken needs to be based on the requirements specified by the UIU/USTH. The UIU/USTH will initiate and determine the timing of recruitment/procurement processes and should be heavily involved in the specification of all TORs for consultant recruitment and technical/other specifications for procurement processes and should sign off as agreeing to these before they are sent to ADB for NOL. The UIU should be involved to the extent possible during the remainder of the consultant recruitment/procurement process, including, where possible,nominating a member of the UIU to the bid evaluation committee/ consultant selection committee. For example, the UIU/USTH will work with the PMU-USTH to specify the equipment required by USTH, even if the equipment procurement process is run by the PMU-USTH. This will require very close cooperation between the PMU-USTH and the UIU/USTH. 11. The Mission indicated that ADB will only provide NOL for consultant recruitment/procurement processes if the UIU/USTH has signed off on the relevant TORs/technical specifications. The Mission noted that the ongoing space scheduling process and the engagement of the National Higher Education Consultant (NHEC) provided models for the operation of these new project management arrangements. Although the International Space Scheduler was recruited by the PMU-USTH, he worked closely with the UIU/USTH and the French consortium of universities in undertaking his tasks. The TORs of the NHEC were jointly formulated by the UIU/USTH and the PMU-USTH. The Mission emphasized the need for very close cooperation between the UIU/USTH and the PMU-USTH, including holding frequent combined meetings to facilitate cooperation. This arrangement will be reviewed at each Review Mission. 12. The Mission emphasized the need for the UIU to put more resources into project implementation. The Mission requested that the UIU/USTH increase the time commitment of the USTH Director of Administration to project implementation. The Mission noted that it would review the UIU’s project implementation progress and that it would consider further measures if project implementation did not accelerate. 13. Equipment Purchases. The Mission discussed the purchase of equipment for USTH and confirmed that, irrespective of project implementation arrangements, UIU/USTH is responsible for identifying the equipment to be purchased and the timing of those purchases. The PMU-USTH will undertake the ‘transaction’ process of running the consultant selection/procurement process. 14. Consultant Recruitment. The UIU has recruited and signed contracts with the National Procurement Consultant, Financial Consultant, Disbursement Assistant and Interpreter. The International Higher Education Planning and Procurement Consultant (IHEPPC) has not yet been recruited, although the process has been underway for some months. This delay has been caused by the inability to find a suitable candidate. The Mission agreed to support the revision of the TORs and worked with the UIU and the PMU-USTH to formulate revised TORs for the

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new position of International Higher Education Planning Consultant, which excludes procurement related tasks. A new recruitment process will be undertaken. The Mission agreed to support this change and requested the UIU to submit a formal letter to ADB regarding the result of the first evaluation and the proposed changes to the TORs by 11 October 2013. 15. Procurement. The UIU will shortly start its first major procurement in Q4 2013 (see Table 3below). The Mission explained the critical timing in preparing the draft bidding documents for the review and approval of ADB. In particular, the schedule of supply for the equipment to be procured should be completed and included in the draft bidding documents. If the target advertisement date is Q1 2014, the UIU was advised that it should submit its first draft bidding documents for ICB and NCB to ADB by 15 November 2013. Since these would be the first draft bidding documents, initial review will be carried out by SEHS in consultation with OSFMD (procurement) and OGC (legal) for review. Table 3: Upcoming UIU Procurement

General Description Value of

Contracts ($)

Number of Contracts

Procurement/ Recruitment

Method Comments

Furniture for UIU 15,000 1 Shopping Advertisement in Q4, 2013

Equipment for UIU 80,000 1 Shopping Advertisement in Q4, 2013

Vehicle for UIU 50,000 1 Shopping Advertisement in Q4, 2013

Laboratory Equipment Package 1 1,000,000 1 ICB Advertisement in Q1, 2014

Equipment, Computers and Software for USTH Package 1 300,000 1 NCB Advertisement

in Q1, 2014 16. The PMU-USTH is scheduled to commence its first major procurement in Q1 2014 (see Table 4 below).The Mission advised the PMU-USTH that it should submit the first draft bidding documents for NCB civil works for ADB’s approval by 10 December 2013. Table 4: Upcoming PMU-USTH Procurement

General Description Value of

Contracts ($)

Number of Contract(s)


Method Comments

Construction of Temporary Office at Hoa Lac 50,000 1 Shopping Advertisement,

Q4, 2013 Construction of Temporary Boundary Fence 582,000 1 NCB Advertisement

in Q1, 2014 17. The Mission advised both the PMU-USTH and UIU that they should download the latest standard bidding document templates from the ADB website. 18. Disbursements. The Mission met with the Disbursement Unitsof both the PMU-USTH and UIU. Currently, disbursementsare at a very low level – only 8%. However, the Mission advised staff on how to monitor disbursements in anticipation of the upcoming procurement of

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larger packages relating to architectural design, building construction and construction supervision. 19. The Mission conducted a random check of expenditures covered by the statement of expenditures (SOEs). It found that supporting receipts for rental payments were sufficient. However, the Mission also found that the national consultant salaries were paid in cash. Hence, the PMU-USTH’s Disbursement Unit was only able to provide an acknowledgement receipt from national consultants. The Mission therefore advised the PMU-USTH that payments to national consultants should be made through bank transfers, not in cash.The PMU-USTH advised that this will begin with the September 2013 pay period. 20. Project Administration Manual. The PAM was most recently updated on 7 September 2012. A number of updates were agreed during the December 2012 and May 2013 Review Missions, subject to ADB approval. A number of these approvals have been obtained. The PMU-USTH provided theMission with proposed drafting changes for the PAM, covering all agreements from the two previous Review Missions and the current Review Mission. These will be submitted to ADB for approval by the PMU-USTH by 15 October 2013. 21. Procurement Plan.The Procurement Plan was reviewed thoroughly with both the PMU-USTH and UIU so as to incorporatechanges that have been approved by ADB since the last Review Mission. The PMU-USTH proposed additional changes to the Procurement Plan, as follows:

(i) An increase in the estimated contracted amount for the construction of the temporary site office at HHTP to $50,000 ($10,000 more than ADB approved in June 2013). This is to reflect more accurate costings: leveling the parking area, installation of electrical supply and fire resistant system, drilling a well for water supply, and connectingthe sewage system to the existing system. These were not included in the earlier calculation. PMU-USTH will send an official letter to ADB by 10 October 2013 requesting the increased amount. The Mission agreed to support the change.

(ii) The recruitment of several additional national consultants: (a) National Consultant on Procurement 3; (b) National Consultant on Construction Management 2; (c) National Consultant on Architecture 2; (d) National Consultant on Construction Cost 2; (e) National Consultant on Electrics and Mechanics; (f) National Consultant on Construction Infrastructure; (g) Disbursement Accountant 1; and (h) Payment Accountant 2. PMU-USTH will send an official letter to ADB by 10 October 2013 outlining the scope of work and the timing of recruitment.

(iii) The UIU proposed a change in the procurement of laboratory equipment packages.

They will submit an official letter to ADB to seek approval for this change. 22. Reporting Requirements. The PMU-USTH and UIU promptly submitted their Q2 2013 Progress report. However, the Mission explained that the information in this report is the basis for updating Project data in ADB’s eOperations system. As a result, it is important that the report provide detailed information on Project progress. In particular, more detailed and updated information should be provided in respect of Project output targets and indicators. 23. Audit. The Mission sought an update on the status of the engagement of the project independent auditor and the Audit Report for fiscal year (FY) 2012. The Mission noted that, according to its Charter,the ADB must take necessary measures to ensure that loan proceeds

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are used only for their intended purpose and that Borrowers are required to submit annual independent audit reports.The Mission also noted that the Audit report for FY 2012, which was due on 30 June 2013, has not yet been submitted. Submission of Audit reports is one of the loan covenants and is one of the performance indicators used in rating project performance in ADB’s eOperations system. It is therefore important that it is complied with in a timely manner. Further delays can have significant implications for the Project:

(i) If the Audit report is not submitted within six months of the end of the FY (ie. by 30 December 2013),ADB will withhold processing of new contract awards and disbursements such as replenishment of imprest accounts or new reimbursements;

(ii) If the Audit report is not submitted within twelve months of the end of the FY (ie.

by 30 June 2014), the loan will be suspended. 24. The Mission was advised that the PMU-USTH had signed the contract with the first-ranked Audit firm and that it is expected to mobilize by 9 October 2013. The Mission was further advised that the Audit report for FY 2012 would be submitted on or before 15 November 2013. 25. Loan Covenants. The list of covenants related to the implementation of the Project is in the PAM. The loan covenants were updated during the Review Mission. Only one covenantis overdue: revision of the 1:2000 Master Plan (due 1 June 2012). HHTP will approve a revised 1:2000 Master Plan once the design of the USTH campus has been developed. This is supported by the Mission. Despite the absence of a 1:2000 Master Plan, the HHTP has given its approval for preparatory work to commence, including geological survey, boundary fence construction, land demining, etc.The MOET has established the USTH Council and the Charter wasapproved by the Prime Minister on 23 August 2012. The USTH committees have been established and the first meeting of the USTH Council took place in June 2013 in Paris. The special financial mechanism for USTH was approved on 9 January 2013. A table outlining the loan covenants is presented in Annex 3.The USTH Strategic Plan was approved by the USTH Council in June 2013. The PMU-USTH and UIU should update the status of loan covenants from time to time.

B. Technical Issues 26. Land Acquisitionat USTH Site at Hoa Lac High Tech Park.The Mission held discussionson the issue of land acquisition with the PMU-USTH, the UIU/USTH, the French Embassy, the HHTP Management Board, the Thach That District Resettlement Committee (DRC), and the Hanoi People’s Committee. Some Mission members met with the Deputy Director and Deputy Manager of the Land Management Department at the HHTP Management Board;the Director of the Thach That DRC and the Deputy Manager of the Hanoi City Steering Committee for Compensation and Resettlement. The purpose of the meeting was to get updated on progress with Project land acquisition and to explain the revisions and required actions under the Updated Resettlement Plan that was sent to the PMU-USTH for endorsement on 26 September 2013. The Mission also held a second meeting with the PMU-USTH and the UIU/USTH to discuss land acquisition.

1. Background

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27. Under the project loan agreement, the borrower, through the project EA, has agreed to provide, within 16 months of loan effectiveness (ie. 1 June 2013), USTH with: (i) a decision that shall ensure that USTH has legal rights over the land allocated for their campus; and (ii) the right to commence construction of the campus in accordance with the agreed construction timeframe. Land acquisition under the project has made further progress since the last Missionin May 2013, but is not yet completed. There are three areas of interest in terms of land acquisition under the USTH project:

(i) The site of USTH campus at HHTP (residential/agricultural plots and the Army occupied site);

(ii) The relocation site for the two Army units currently occupying part of the USTH site at HHTP; and

(iii) The HHTP resettlement site located at Binh Yen Commune.

2. Progress on Land Acquisition/Relocation as at 23 October 2013

28. The state of play as at 23 October 2013 and remaining issues to be addressed in respect of land acquisitionunder the USTH project are discussed below.The Prime Minister has indicated his desire for the handover of cleared landof the 65 ha USTH site at HHTP to be completed by the end of December 2013. This appears broadly achievable, although actual turnover may occur sometime in January 2014. Table 5 summarizes the status of land acquisition as at 23 October 2013 for all three sites above, while Table 6 summarizes progress on land acquisition since the previous Review Mission in May 2013.

(a) Site of USTH Campus at HHTP 29. The total area for land acquisition at this site is 65 ha. There are two issues here: (i) Resettlement of 26 ha of land containing 195 land plots claimed by approximately 118 land users; and (ii) Relocation of two Army units currently occupying 39 ha of land. Acquisition of Household Plots in HHTP 30. The situation remains as it was during the May 2013 Review Mission: (i) Detailed Measurement Survey (DMS) has been completed on all 26 ha of land to be acquired; (ii) 3.5 ha of land remains to be acquired; and (iii) 12.4 ha of land has yet to be turned to USTH by HHTP. These figures are summarized in Column (2) of Table 5 below. The Thach That DRC is expected to get the funds to pay compensation for the remaining 3.5 ha within the next 2-3 days, with the compensation for the remaining 3.5 ha of land expected to be completed within one week of receipt of these funds. The land is expected to be handed over within 15 days of the payment of compensation to Affected Persons (APs). Acquisition of Army Site at HHTP 31. There has been some progress in moving forward the relocation of the Army units from HHTP since the May 2013 Review Mission. In two respects, the situation remains as it was at the time of the May 2013 Review Mission: (i) the whole area (39 ha) has undergone DMS; and (ii) all of the land occupied by the Army has been acquired by HHTP. There has been progress in respect of land handover – since the May 2013 Review Mission, 20 ha of land has been turned over to USTH (up from zero in May 2013). These figures are summarized in Column (3) of Table 5 below. Handover of the remaining 19 ha will depend on the timing of the handover of

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the 52.7 ha Army relocation site in the Hamlets of Thai Binh (38 ha) and Canh Chu (14.7 ha). This is expected by the end of December 2013. Planning and funding to support construction of the military facility in the Army relocation site is still being discussed by the Ministry of Finance, the Ministry of Planningand Investment and the Ministry of Defense. However, officials indicated that the transfer of the Army Units to the Army relocation site can occur before new buildings are constructed on the new site. The Army remains supportive of the Project and has also agreed to allow the PMU-USTH the right to do preparation work on the 39 ha of land it currently occupies at HHTP (eg. land demining, geology surveys).

(b) Army Relocation Site at Thai Binh and Canh Chu 32. The new site is located in the Hamlet of Thai Binh (38 ha) and Canh Chu (14.7 ha). The total area for resettlement at this site is 52.7 ha. It contains approximately 463 landplots claimed by 308 land users. Approximately 54 households occupying residential plots will need to be resettled. The site also included a large number of burial plots, all of which have been relocated. Of the 52.7 ha of land at this site: DMS has been undertaken on all 52.7 ha of the land (up from 46.3 ha in May 2013). In the remaining tow respects, it remains as it was in May 2013: (i) 18.9 ha have been acquired; and (ii) none has yet been turned over to the Military. These figures are summarized in Column (5) of Table 5 below. 33. Funds for compensating the APs for the remaining 33.8 ha of land are still being processed. Thach That District expects to receive funds in two tranches: 30 October 2013 for 21.3ha, and 31 December 2013 for the remainder. Land acquisition and turnover of land would follow soon after.

(c) HHTP Resettlement Site at Binh Yen Commune 34. This site is the designated resettlement site for households needing to be resettled anywhere in HHTP (including the USTH site). Compensation provided to households who are resettled from HHTP includes a plot of land at this site. Thach That District is addressing power and water supply requirements at the resettlement site. A transformer for power distribution has been installed. For water supply, a proposal for connecting the area under the rural water supply program of the District is being prepared. In the short-term, two options are being considered to address requirements: (i) Install one centralized deep-well water supply system for the site; and (ii) Provide additional compensation to each household to install their own shallow well (as they do in their current location).Relocated APs can start building their houses at the Resettlement site from December 2013. Table 5: Status of Land at USTH Site and Military Relocation Site as at 23 October 2013

(1)

USTH Site at HHTP (5) Military

Relocation Site

(2) Residential/

Agricultural Site

(3) Military Site

(4) Total

Land Area (ha) 26 39 65 52.7

Land for Which DMS Completed (ha) 26 39 65 52.7

Land for Which DMS Not Completed (ha) 0 0 0 0

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Land Which Has Been Acquired by HHTP (ha) 22.5 39 61.5 18.9

Land Which Has Not Been Acquired by HHTP (ha) 3.5 0 3.5 33.8

Cleared Land Turned Over to USTH/Military (ha) 13.6 20 33.6 0

Cleared Land Yet to be Turned Over to USTH/Military (ha)

12.4 19 31.4 52.7

Note: Cells with changes since May 2013 are bolded. Source: Ha Noi City Resettlement Committee, 23 October 2013.

3. Other Progress on Land Acquisition/RelocationIssues

35. The ADB recently completed an Updated RP, which has been approved by the resettlement specialist in ADB’s RSES. The approved Updated RP was sent to the PMU-USTH (in both English and Vietnamese) for Government of Viet Nam endorsement. It has been forwarded by PMU-USTH to HPC, Thach That District and HHTP for their endorsement. Once all endorsements have been obtained, MOET will need to endorse it. Once it has been endorsed by all parties, the Updated RP will need to be disclosed locally. It will also be uploaded to the ADB website. The content of the Updated RP was discussed with the PMU-USTH, HHTP, the Thach That DRC and the Hanoi People’s Committee at a meeting on 24 September 2013. The Mission highlighted the importance of timely endorsement and disclosure of the Updated RP as it will provide a basis for the independent resettlement monitoring specialist to monitor RP implementation going forward. The PMU-USTH undertook to facilitate the endorsement of the Updated RP by 31 October 2013. 36. The project is benefiting from the active engagement of a national resettlement consultant recruited by ADB and VRM’s Safeguards Specialist (Resettlement) and Associate Safeguards Officer. It is also benefiting from the active engagement of a national independent resettlement review specialist, who was engaged by the PMU-USTH in December 2012. The consultant has produced two independent resettlement quarterly monitoring reports (Q1/2013 and Q2/2013). Both have been uploaded to the ADB website. Table6 compares the status of acquisition issues in May 2013 and October 2013. Table 6: Progress on Land Acquisition Issues from May 2013 to October 2013

Site Status as at May 2013 Status as of October 2013

USTH Residential/ Agricultural Site (26 ha)

DMS completed: 26 ha Land acquired: 22.5 ha Land turned over to HHTP: 13.6

ha

DMS completed: 26 ha Land acquired: 22.5 ha Land turned over to HHTP: 13.6 ha

USTH Military Site (39 ha)

DMS completed: 39 ha Land acquired: 39 ha Land turned over to HHTP: 0 ha

DMS completed: 39 ha Land acquired: 39 ha Land turned over to HHTP: 20 ha

Military Relocation Site (52.7 ha)

DMS completed: 46.3 Land acquired: 18.9 ha Land turned over to Military: 0 ha

DMS completed: 52.7 ha Land acquired: 18.9 ha Land turned over to Military: 0 ha

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Other External Resettlement Monitoring Consultant engaged by PMU-USTH

Internal Monitoring Consultant engaged by PMU-USTH

Draft Revised Resettlement Plan completed

Draft Q1 Independent Resettlement Report nearly completed

Resettlement Specialist engaged by ADB to update RP and facilitate completion of resettlement

Further involvement of VRM staff in USTH project – Associate Safeguards Officer and Safeguards Specialist (Resettlement)

External Resettlement Monitoring Consultant engaged by PMU-USTH

Internal Monitoring Consultant engaged by PMU-USTH. Monitoring report is pending

Updated Resettlement Plan (RP) approved by ADB. Government endorsement and disclosure of Updated RP are pending.

Independent Resettlement Reportsfor Q1 and Q2 completed

National resettlement specialist engaged by ADB facilitatedpreparation of Updated RP. Coaching of USTH-PMU ongoing.

Continued involvement of VRM safeguards staff in USTH project

37. Design and Construction of USTH Campus. The PMU-USTH advised that it was negotiating with the top-ranked firm for the ADCM and that they hoped that final contract negotiations would occur on 7 October 2013. They also reported that some amendments had been made to the Architecture and Engineering Consultant draft TORs and that a revised version would be submitted to the ADB by 8 October 2013. 38. Key contract milestones in the design and construction process of the USTH Campus, as well as associated timeframes and estimated costs, are set out in Table 7 below. Table 7: Key Contract Milestones in Design and Construction Process

Design/Construction Activity Estimated Contract Date

Approximate Estimated Contract Amount

Architecture Design Competition Management 31 October 2013 $300,000

Geological Survey 31 December 2013 $20,000 Architecture and Engineering of Boundary Fence 31 December 2013 $8,000

Construction of Temporary Boundary Fence

Q2, 2014 $582,000

Construction of Temporary Office at HHTP Q1, 2014 $50,000

Architects and Engineering Consultant Q1, 2015 $6,614,000 Geological Survey Consultant for Design Q2, 2015 $819,000 Project Management and Supervision of Construction Q3, 2015 $4,283,000

Services and Infrastructure Q4, 2015 $13,669,907 Building Construction Q1, 2016 $84,811,263

39. Space Scheduling/Operational Design Requirements for USTH. The International Space Scheduler presented the preliminary findings of his work. This work is critical as it will guide the design of the USTH campus and will feed directly into the campus design competition.

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The consultant has worked closely with both the PMU-USTH and the UIU to identify: (i) USTH’s functional requirements including specification, technical requirements, space standards, adjacency requirements and utilization; and (ii) ‘learning models’ of modern French Universities and applying them to the academic, research and other areas of USTH campus. On the basis of this work, it is expected that:(i) the Tertiary Education Facility Management standards will be used as the international space standards at USTH; (ii) international performance and safety standardswill need to be determined; and (iii) International Standards Organization (ISO) and Vietnamese building requirements will also apply. 40. The International Space Scheduler has alsoissued a draft space schedule for USTH, revised the space allocation determined during the PPTA, confirmed the pedagogical approach that will guide space allocation at USTH and issued a preliminary equipment list.Much work on space scheduling remains, and will need to be carried out in close collaboration with the PMU-USTH and USTH/UIU. This includes work across a number of areas: (i) Master Plan/growth projections; (ii) specialist space planning requirements; (iii) Staffing; (iv) research and laboratory environments; (v) ICT; (vi) Learning Resource Center; and (vii) Green standards. Space scheduling outputs will be provided to the ADCM, who will further develop EOI and RFP tender documents and processes for engaging the AEC. 41. The French strategic partner should establish a dedicated project control group (PCG) focused on facilities issues to work with the Project. While the French consortium has nominated universities to support each faculty, there is no similar PCG for facilities or campus infrastructure issues. It would be beneficial to the project to have this additional support. The French strategic partner and the UIU agreed to facilitate the establishment of a PCG for facilities issues by 15 November 2013. The UIU will immediately seek the assistance of the International Space Scheduler to determine the scope of work of the proposed PCG. 42. Possible Financing Partnership for USTH Project. The Mission, along with officials from the PMU-USTH, UIU/USTH and ADB, met with Mr. Philippe Tiger, President of AIA and Ms. Mai Chi Thi Hoang, AIA’s local representative in Viet Nam, regarding the possibility of a financing partnership for the Project. AIA is an independent Switzerland based private company which aims to provide investors with technical assistance to identify and implement projects in the area of international aid and development. The AIA representatives outlined the proposed $20 million equity investment that would finance the construction of student and/or teacher accommodation on the USTH campus at HHTP. Investors would generate a return on their investment through the payment of rentals on the accommodation. Subject to further lenders due diligence, it may be possible that some portion of investors’ financial return could be provided to USTH to increase salaries for academics involved in teaching and research. This is to ensure that USTH remains an attractive academic institution to not only undertake advanced and cutting edge research but is also able to attract and retain high calibre academic staff. 43. The meeting discussed possible ways that such an arrangement could be structured, including public-private partnership models. Officials from the PMU-USTH raised a number of technical and process issues that needed to be taken into account if the investment is to move forward. AIA indicated that it wished to see an investment that enjoyed legal security (eg. land concession or long term lease), but was integrated into the wider USTH Project. AIA also indicated it was open to possible ADB involvement in the Project. Representatives from the PMU-USTH, the UIU/USTH and ADB welcomed the offer of additional financing for the Project and agreed that it merited further specification and evaluation. The Mission agreed to request ADB to work with AIA to examine possible structuring for the investment and assess the legal

13

and technical feasibility of these structures in a Vietnamese context, including the suitability and feasibility of PPP models. III. AGREED ACTIONS 44. To expedite project implementation, a number of actions were agreed with the PMU-USTH and UIU. These agreed actions, and associated timeframes, are set out below:

No. Planned Activity Target Date Responsible Agency

1 Payment of PMU-USTH consultant salaries carried out through bank transfer

September pay period PMU-USTH

2 Revised TORs for AEC submitted to ADB for approval 8 October 2013 PMU-USTH

3 Official letter requesting increased contract amount for construction of temporary site office submitted to ADB

10 October 2013 PMU-USTH

4

List of UIU consultant recruitment/procurement activities to be undertaken by the PMU-USTH jointly developed by PMU-USTH and UIU, submitted to ADB


5 Official letter outlining scope of work and timing of recruitment of proposed consultants submitted to ADB


6 Formal letter regarding the result of the first IHEPPC evaluation and revised TORs submitted to ADB

11 October 2013 UIU

7 Proposed PAM changes submitted to ADB for approval 15 October 2013 PMU-USTH

8 Reports on June 2013 study visit to France and September 2013 study visit to Hong Kong submitted to ADB


9 Updated RP endorsed by Government of Viet Nam 31 October 2013 PMU-USTH

10 Draft of Third Quarterly Independent Resettlement Monitoring Report submitted to ADB 31 October 2013 PMU-USTH

11 Project website upgraded 31 October 2013 PMU-USTH

12 Scholarship program design finalized 31 October 2013 UIU

13 Approved Updated RP disclosed locally 8 November 2013 MOET

14 Updated RP uploaded to ADB website 8 November 2013 ADB

14

No. Planned Activity Target Date Responsible Agency

15 Updated RP disclosed URP to APand Communes 8 November 2013 That Thach

DRC/ PMU-USTH

16 PCG for facilities established by French university consortium

15 November 2013

French Embassy/UIU

17 Draft bidding documents for NCB and ICB goods submitted to ADB

15 November 2013 UIU

18 Audit report for FY 2012 submitted to ADB 15 November 2013 PMU-USTH

19 Combined (ie. PMU-USTH and UIU) quarterly reports submitted to ADB

31 October 2013 and subsequent

quarters

PMU-USTH/UIU

20 Draft bidding documents for Temporary Boundary Fence submitted to ADB

10 December 2013 PMU-USTH

21 Letter for proposed change in procurement packages submitted to ADB

20 December 2013 UIU

IV. CONCLUSION 45. The Mission wishes to thank Mr. Nguyen Van Ngu and colleagues from the PMU-USTH, as well as Prof. Pierre Sebban and Prof. Le Tran Binh, and colleagues at the UIU/USTH for the arrangements and the cooperation extended to the Mission. The next loan review Mission is expected to take place in December 2013. The ADB, PMU-USTH and UIU will hold videoconferences as needed to address issues as they arise.

Annex 1: List of Key Persons Met by the Mission Annex 2: Mission TORs/Schedule of Meetings Annex 3: Status of Loan Covenants Annex 4: Revised Procurement Plan

2

Annex 1: List of Persons Met by the Mission

PMU-USTH Dr. Nguyen Van Ngu Director Mr. Nguyen Quoc Huy Deputy Director Ms. Tran Thi Kim Thuy Chief Accountant Ms. Nguyen Thi Vinh Ha Project Operations Coordinator Ms. Le Thi Binh Interpreter Mr. Pham Thanh Tung National Procurement Consultant Ms. Le Thi Hong Loan Administrator Mr. Patrick Lizot International Procurement and Project Implementation

Consultant Mr Trinh Xuan Lam Construction Consultant Mr. Nguyen Truong Son National Independent Resettlement Review Consultant Mr. Vu Quyet Thang National Consultant for Construction Cost Mr. Bui Duy Nghia ArchitectureConsultant Mr. Hoang Truong Nam Resettlement Consultant Ms. Nguyen Thi ThanhHien Procurement Consultant Ms. Dang Thi Kim Phuong Administrative Assistant Ms. Le HuongGiang General Accountant Mr. Hoang Truong Nam Internal Resettlement Monitoring Specialist Mr. Le Van Dua Construction Officer Mr. Nguyen The Hien National Higher Education Consultant Mr. Andrew Bell International Space Scheduler Mr. Bill Matthews International Quantity Surveyor HOA LAC HIGH TECH PARK MANAGEMENT BOARD Mr. Nguyen Van Cuong Deputy Director/ HHTP Mr. Nguyen Duy Thang Vice Director of Land Management Division THACH THAT DRC Mr. Can Van Lai Chairman of Compensation Committee HANOI CITY PEOPLE’S COMMITTEE Mr. Tran Dong Duc Deputy Manager, Steering Committee for Compensation

and Resettlement MOET H.E. Bui Van Ga Vice Minister Mr. Tran Duy Tao Director, Department of Physical Facilities, School

Equipment and Toys Ms. Dao Bich Lien Department of Physical Facilities, School Equipment and

Toys Ms. Ngo Viet Ha Specialist, Department of Planning and Investment Mr. Nguyen AnhHuan Specialist, Department of Finance UNIVERSITY OF SCIENCE AND TECHNOLOGY OF HANOI/UIU Prof. Pierre Sebban Rector/Project Co-Director Dr. Le Tran Binh Vice Rector/Project Director Mr. Gérard Gasquet Director of Administration Ms. Nguyen Thi Phuong Chief Accountant Ms. Nguyen Thanh Thuy Translator

3

Mr. Nguyen Nam Son National Procurement Consultant Ms. Nguyen Thi Ngoc Anh Disbursement Assistant FRENCH EMBASSY Ms. Eva Nguyen Binh Conseillère de coopération et d’action culturelle Mr. Jacques Frère Attaché de coopération scientifique et universitaire Mr. Borin Pin Responsableinfrastructures, développement durable,

financements et aide-projet AUSAID Ms. Gai Sheridan Consultant Ms. Simone Corrigan Second Secretary Ms. Nguyen Thu Hang Senior Program Manager AID AND INVESTMENT AGENCY Mr. Philippe Tiger Président Ms. Mai Chi Thi Hoang Consultant WORLD BANK Ms. Vo Kieu Dung Senior Education Specialist Ms. Vu LanAnh Human Development Specialist ADB Mr. JesperKlindtPetersen Senior Portfolio Management Specialist, VRM Mr. SrinivasSampath Principal Urban Development Specialist, RSDD ADB CONSULTANT Mr. Nguyen Van Trung Resettlement Specialist

4

Annex 2: VIE: University of Science and Technology of Ha Noi Development

(New Model University) Project Review Mission FinalSchedule

Ha Noi 23 September-2 October 2013

Background 1 The University of Science and Technology of Hanoi Development (New Model University) Project (the Project) was approved by the Asian Development Bank (ADB) on 25 April 2011 for $213.0 million (ADB financing of $190 million – $170 million OCR and $20 million ADF Hard-Terms) and $23 million Government counterpart funds. The loan agreement was signed on 10 November 2011 and the loan was made effective on 1 March 2012. 2. The project seeks to establish a new model university (NMU) focused on international standard teaching and research in science and technology. This NMU—the University of Science and Technology of Hanoi (USTH)—will demonstrate a new policy framework for the governance, financing, and quality assurance of universities in Viet Nam.The Government of France is providing about €100 million to support development and operating costs until at least 2020, including provision of curricula, research capacity, the rector, academic staff, and scholarships. The USTH opened in October 2010 using facilities at the Viet Nam Academy of Science and Technology and will migrate to its new campus at Hoa Lac High Tech Park (HHTP), which is being developed in cooperation with the Japan International Cooperation Agency, once it is ready. Mission Composition: 3. The mission will comprise Mr. Norman LaRocque, Senior Education Specialist;Mr. Jose Tiburcio Nicolas, Safeguards Specialist (Resettlement), Vietnam Resident Mission and Donna Medenilla, Associate Project Officer. Mission Purpose: 4. The main purpose of the mission is to:

(i) Meet with officials from HHTP, the PMU-USTH, and the French Government, to discuss progress on resettlement under the project;

(ii) Review progress on project implementation since the most recent review mission in May 2013, including progress on campus design and construction activities, and other issues related to preparation of the architectural design competition, USTH site preparation and civil works;

(iii) Assess UIU progress on project start-up activities; (iv) Meet with the Vice Minister of MOET; (v) Meet with officials from the French Embassy to discuss issues related to USTH and project

implementation; (vi) Discuss a possible $20 million project cofinancing arrangement with Swiss firm Aid and

Investment Agency; (vii) Discuss changes to the Project Administration Manual and the Procurement Plan; and (viii) Discuss progress of the implementation of the Vietnamese-German University project with

representatives from the World Bank.

5

46. The Mission will have a special focus on assessing progress on resettlement issues under the project, including assessing the current status of resettlement and identify any further steps that are required to speed up implementation of the project Resettlement Plan (RP). The Mission will discuss the updated RP and the most recent Q2/2013 Independent Resettlement Report. The Mission would appreciate a special session dedicated to resettlement issues, with HHTP and the PMU-USTH providing a formal presentation outlining the current status/outstanding issues, progress since the last Review Mission, any barriers to implementation of the RP and next steps in the implementation of the RP. The Mission will also visit the USTH site at HHTP to gauge land acquisition progress on the ground.

Date Time Details Participants 23 September AM

PM

AusAID Strategic Review Mission Meeting Venue: Hotel Metropole Mission pre-meetings Venue: VRM Kick-off Meeting Venue: PMU-USTH

ADB: NL AusAID: Gai Sheridan, Simone Corrigan, Nguyen Thu Hang ADB: NL, JTN ADB:NL, JTN Officials: PMU-USTH, UIU, USTH, MOET, HHTP, French Embassy, Consultant:Nguyen Van Trung (NVT)

24September AM PM

Meeting on campus design, construction and space scheduling Venue: PMU-USTH Meeting regarding resettlement issues Meeting with PMU-USTH/UIU on project implementation issues Venue: PMU-USTH

ADB: NL Officials: PMU-USTH, UIU/USTH, French Embassy ADB: JTN Officials: HHTP, Thach That DRC, HPC, PMU-USTH Consultant: NVT ADB: NL, DM Officials: USTH/UIU, PMU-USTH, French Embassy Consultant: AB

25 September AM/PM

Meeting with PMU-USTH and UIU on resettlement and project implementation issues Venue: PMU-USTH

ADB: NL, JTN, DM Officials: PMU-USTH,UIU/USTH, French Embassy Consultant: NVT

26 September AM Working session to develop TORs for higher education consultant Venue: PMU-USTH

ADB: NL, DM Officials: PMU-USTH,UIU/USTH, French Embassy

27September AM PM

Meeting with French Embassy Venue: French Embassy Meeting re disbursement and procurement plan Venue: PMU-USTH Dinner Meeting re cofinancing with Mai Chi Thi Hoang, Aid and Investment Agency Venue: Madame Hien

ADB: NL ADB: DM ADB: NL

28September AM/PM Drafting of MOU ADB: NL 29 September AM/PM Drafting of MOU ADB: NL

6

Date Time Details Participants 30September AM

PM

Meeting with World Bank Venue: World Bank Meeting with Vice Minister Bui Van Ga Venue: MOET Dinner Meeting with Philippe Tiger and Mai Chi Thi Hoang, Aid and Investment Agency Venue: Wild Lotus

ADB: NL, DM Officials: PMU-USTH, UIU/USTH ADB: NL Officials: PMU-USTH, UIU/USTH, French Embassy ADB: NL

1 October AM PM

Meeting with Aid and Investment Agency regarding proposed cofinancing for USTH Project Venue: VRM-USTH Pre Wrap-up Meeting Venue: PMU-USTH

ADB: NL, DM Officials: PMU-USTH, French Embassy, UIU/USTH ADB: NL, DM Officials: PMU-USTH, UIU/USTH, French Embassy Consultant: NVT

2 October AM PM

Wrap-up Meeting Meeting with Senior Portfolio Management Specialist, VRM Venue: VRM Departure Flight

ADB: NL, DM Officials: PMU-USTH, UIU/USTH, French Embassy ADB: NL, DM ADB: NL, DM

Terms of Reference Norman LaRocque (NL), Senior Education Specialist/Mission Leader (i) Lead discussions with PMU-USTH and HHTP over resettlement issues (ii) Lead discussions with PMU-USTH and UIU over project implementation issues (iii) Lead discussions with PMU-USTH on issues related to the design and construction

framework for the proposed USTH site, including progress on the architectural design competition and other early phase activities

(iv) Lead discussions with the French strategic partner (v) Lead discussions on possible project cofinancing arrangement (vi) Lead in drafting the Mission MOU Donna Medenilla (DM), Associate Project Officer (i) Take lead in working with PMU-USTH and UIU on project implementation issues,

including procurement (ii) Attend kick-off and wrap-up meetings, as well as meeting with Vice Minister (iii) Participate in discussions with PMU-USTH and UIU over project implementation issues,

including project implementation arrangements (iv) Review any proposed changes to procurement plan (v) Provide inputs to MOU as required

7

Mr. Jose Tiburcio Nicolas, Safeguards Specialist (Resettlement) (JTN) (i) Provide advice on project resettlement issues, including on updated RP and most Q2 2013 IRR (ii) Attend kick-off meeting, as well as the meeting with the Vice Minister, and any other meetings

related to resettlement (iii) Provide inputs into MOU as required

8

Annex 3: Status of Loan Covenants

No. Reference

in Loan Agreement

Major Covenants Status

1 LA, Article IV, Section 4.01

The Borrower shall cause the Project to be carried out with due diligence and efficiency and in conformity with sound applicable technical, financial, business and development practices. In the carrying out of the Project and operation of the Project facilities, the Borrower shall perform, or cause to be performed, all obligations set forth in Schedule 5 to the Special Operations Loan Agreement.

To be complied with, ongoing.


The Borrower shall make available, promptly as needed and on terms and conditions acceptable to ADB, the funds, facilities, services, land and other resources, as required in addition to the proceeds of the Loan, for the carrying out of the Project and for the operation and maintenance of the facilities.



The Borrower shall cause competent and qualified consultants and contractors, acceptable to ADB to be employed to an extent and upon terms and conditions satisfactory to the Borrower and ADB. The Borrower shall cause the Project to be carried out in accordance with plans, design standards, specifications, work schedules and construction methods acceptable to ADB. The Borrower shall furnish, or cause to be furnished, to ADB, promptly after their preparation, such plans, design standards, specifications and work schedules, and any material modifications subsequently made therein, in such detail as ADB shall reasonably request.

To be complied with, ongoing. To be complied with, ongoing.


The Borrower shall ensure that the activities of its departments and agencies with respect to the carrying out of the Project and operation of the Project facilities are conducted and coordinated in accordance with sound administrative policies and procedures.


5 LA, Article IV, Section 4.05 and Section 4.02

The Borrower shall (i) maintain, or cause to be maintained, separate accounts for the Project; (ii) have such accounts and related financial statements audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB; (iii) furnish to ADB, as soon as available but in any event not later than 6 months after the end of each related fiscal year, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors’ opinion on the use of the Loan proceeds

To be complied with, ongoing. First Audit for FY 2012 not submitted by due date of 30 June 2013.

9

No. Reference

in Loan Agreement


and compliance with the financial covenants of this Loan Agreement as well as on the use of the procedures for imprest account and statement of expenditures), all in the English language; and (iv) furnish to ADB such other information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request. The Borrower shall enable ADB, upon ADB’s request, to discuss the Borrower’s financial statements for the Project and its financial affairs related to the Project from time to time with the auditors appointed by the Borrower pursuant to Section 4.05(a) hereinabove, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB, provided that any such discussion shall be conducted only in the presence of an authorized officer of the Borrower unless the Borrower shall otherwise agree.


6 Schedule 2, Para. 6 Schedule 3, Para. 6

Imprest Accounts and Statement of Expenditures Except as ADB may otherwise agree, the Borrower (SBV) shall establish immediately after the Effective Date, two imprest accounts, each at a commercial bank acceptable to the ADB, to be managed by, respectively, the PMU-USTH and UIU. The imprest accounts shall be established, managed, replenished and liquidated in accordance with the Loan Disbursement Handbook, and detailed arrangements agreed upon between the Borrower and ADB. The imprest accounts shall only be used for the purposes of the Project. The currency of each imprest account shall be Dollars. The ceiling for the imprest accounts, in aggregate, shall not exceed the lower of (i) the estimated expenditure for the first 6 months of project implementation, or (ii) the equivalent of 10% of the Loan amount.

Imprest accounts were opened since October 2012 (both PMU-USTH and UIU).

7 Schedule 2, Para. 8 Schedule 3, Para. 8

Conditions of Withdrawal Notwithstanding any other provision of this Loan Agreement, no withdrawals shall be made from the Loan Account until the Borrower (SBV) shall have established, to the satisfaction of ADB: (a) the PMU-USTH; and (b) the UIU.

PMU-USTH and UIU were established.

10

No. Reference

in Loan Agreement


8 Schedule 5, Para. 1

Implementation Arrangements The Borrower shall ensure that the Project is implemented in accordance with the detailed arrangements set forth in the PAM. Any subsequent change to the PAM shall become effective only after approval of such change by the Borrower and ADB. In the event of any discrepancy between the PAM and this Loan Agreement, the provisions of this Loan Agreement shall prevail.



Environment The Borrower through the Project Executing Agency shall ensure that the design and construction of physical facilities under the Project comply with; (a) all applicable environmental laws and regulations of the Borrower; and (b) the ADB’s Safeguard Policy Statement (2009). In case of discrepancies between the relevant laws and regulations of the Borrower and ADB’s Safeguard Policy Statement, then ADB’s Safeguard Policy Statement shall prevail. The Borrower through the Project Executing Agency shall further ensure that: (a) the contractors (i) maintain noise and dust within locally acceptable levels during the construction of the campus, and (ii) manage fill, excavated material, and solid waste in a way that does not create a permanent impact; and (b) water supply in the dormitories shall meet national drinking water quality standards.

To be complied with.


Land Acquisition and Involuntary Resettlement The Borrower through the Project Executing Agency shall ensure that all land acquisition and resettlement activities under the Project shall be conducted in accordance with: (a) resettlement plan; (b) the relevant laws and regulations of the Borrower; and (c) ADB’s Safeguard Policy Statement (2009). In case of discrepancies between the relevant laws and regulations of the Borrower with ADB’s Safeguard Policy, then the ADB’s Safeguard Policy Statement shall prevail.



Land Acquisition and Involuntary Resettlement The Borrower through the Project Executing Agency shall: (a) disclose the updated resettlement plan to the affected people and implement the approved resettlement plan to the satisfaction of ADB, including provision of adequate counterpart funding to cover the actual costs; and (b) ensure that all

The Updated RP/Corrective Action Plan was approved by ADB on 25 September 2013.

11

No. Reference

in Loan Agreement


people affected by the Project are compensated, resettled, and rehabilitated in accordance with the requirements of the approved resettlement plan prior to any physical or economic displacement taking place.


Land Acquisition and Involuntary Resettlement Prior to commencement of any resettlement activities, the Borrower through the Project Executing Agency shall sign a contract with a qualified institution acceptable to ADB to conduct independent external monitoring and periodic reporting of resettlement.

Independent Resettlement Review recruited and mobilized since 20 November 2012. Has submitted reports for Q1 and Q2 2013.


Commencement of Works The Borrower through the Project Executing Agency shall not commence works activities until: (a) the updated resettlement plan has been fully implemented, which shall be verified by a report prepared by the independent monitoring agency; and (b) the implementation report prepared by the independent monitoring agency has been approved by ADB.

To be complied with.


Gender Action Plan The Borrower through the Project Executing Agency shall ensure that the Gender Action plan is fully implemented and that all Project activities are designed and implemented in accordance with ADB’s Policy on Gender and Development (1998) including, but not limited to: (a) development and implementation of equity strategies to increase female student enrollment in the university; (b) an allocation of 40% of dormitory accommodation for female students; (c) a quota of 20% females in senior management, academic staff and university council positions; (d) a quota of 30% female participation in capacity building programs for senior managers, technical and administrative staff; (e) gender balance in industry placement programs in USTH to increase female employment and participation in further studies in science and technology; (f) gender inclusive design of physical facilities; (g) the inclusion of relevant provisions in the Works contracts to ensure the recruitment of local labor shall be conducted on the basis of equal opportunities and equal pay for women and men and that 40% of unskilled laborers are female; and (h) the disaggregation of all monitoring and


12

No. Reference

in Loan Agreement


evaluation data by sex and ethnicity. 15 Schedule 5,

Para. 8 Counterpart Funds The Borrower shall ensure that: (a) adequate counterpart funds required during Project implementation period are provided on a timely basis; (b) annual budgetary appropriation requests are submitted in a timely manner; and (c) appropriated funds are disbursed promptly when needed for Project implementation purposes.



USTH Governance Framework Within 3 months of the Effective Date, the Borrower shall have issued a regulation, to the satisfaction of ADB, which provides the legal framework for USTH to operate with substantial level of autonomy, including to be governed by its own university council, rector and academic board. The Borrower and the ADB shall conduct a joint review by 31 December 2012 to assess the effectiveness of the regulation. Within 3 months after the conclusion of the review, the Borrower shall amend, as necessary, the regulation to reflect the result and recommendation of the review.

The USTH Charter was approved on 23 August 2012.


USTH Structure Within 3 months of the Effective Date, the Borrower through the Project Executing Agency shall have established and appointed the members of the university council of USTH. The university council shall have the authorities to: (a) approve a strategic direction; (b) establish an internal organization and administration; (c) manage student intakes; (d) approve a university budget; and (e) select and appoint the members of the council for the second and subsequent terms. The Borrower shall appoint up to 2 representatives as university council members.

Due on 1 June 2012. The University Council was established on 6 April 2011.


USTH Structure Within 3 months of the Effective Date, the Borrower through the Project Executing Agency shall ensure that USTH shall have established and appointed a science and academic council with the responsibilities to: (a) establish and maintain academic standards; (b) approve all academic programs; and (c) award all academic qualifications.

Due on 1 June 2012. The University Science and Academic Council was established on 20 January 2013.

19 Schedule 5, USTH Structure

13

No. Reference

in Loan Agreement


Para. 12 Within 9 months of the Effective Date, the Borrower through the Project Executing Agency and USTH shall have approved a written commitment on the objectives and goals to be achieved by USTH over a period of at least 3 years. The Borrower shall ensure that such commitment shall serve as a basis for MOET to oversee USTH’s performance and to allocate budget for the university. The Borrower, through the Project Executing Agency, and USTH shall review the relevance and efficacy of the written commitment on an annual basis.

Due on 1 December 2012. The USTH Strategic Plan was approved by the USTH Council in June 2013.


USTH Structure The Borrower through the Project Executing Agency shall ensure that the appointment of the second and subsequent Rectors of USTH shall be based upon: (a) a transparent, merit-based, international selection process; and (b) the recommendation of the university council.



Scholarships The Borrower through the Project Executing Agency shall ensure that USTH, through its office of student services, shall establish selection criteria for the scholarships, to the satisfaction of ADB, that ensure students who are female, from ethnic minorities or poor and meet USTH’s academic requirements are adequately represented as recipients.

The draft selection criteria for scholarships were sent to ADB for comments. ADB provided two sets of comments on unofficial draft.


Operational Mechanism By 31 December 2012, the Borrower shall issue a legal instrument, in a manner consistent with the prevailing law of the Borrower, that provides the operational mechanism for USTH to: (a) be autonomous and accountable in all aspects of academic, administrative and financial management; and (b) have adequate public and private funding to allow USTH to operate at international standard.

The USTH financial mechanism was approved on 9 January 2013.


Master Plan Within 3 months of Effective Date, the Borrower through the Project Executing Agency shall have provided an amended 1:2000 scale master plan that reflects the new agreed zones for academic, administration and residential areas of the USTH campus, in accordance with the revised planning law, and to be approved by the management board

Due on 1 June 2012. Master Plan will only be submitted once the architectural design competition is completed

14

No. Reference

in Loan Agreement


of Hoa Lac High Tech Park. 24 Schedule 5,

Para. 17 Master Plan Within 16 months of the Effective Date, the Borrower through the Project Executing Agency shall have provided a decision that shall ensure USTH with: (a) legal rights over the land allocated for their campus; and (b) the right to commence construction of the campus in accordance with the agreed construction timeline.

Due on 1 July 2013. Decision No. 238/QĐ-CNCHL dated 28 Dec 2012 on land allocation to commence the preparation for the construction of the campus.


Governance and Anticorruption The Borrower, the Project Executing Agency, and USTH shall (a) comply with ADB’s Anticorruption Policy (1998, as amended to date) and acknowledge that ADB reserves the right to investigate directly, or through its agents, any alleged corrupt, fraudulent, collusive or coercive practice relating to the Project; and (b) cooperate with any such investigation and extend all necessary assistance for satisfactory completion of such investigation.



The Project Executing Agency and USTH shall ensure that the anticorruption provisions acceptable to ADB are included in all bidding documents and contracts, including provisions specifying the right of ADB to audit and examine the records and accounts of the executing and implementing agencies and all contractors, suppliers, consultants, and other service providers as they relate to the Project.



The Borrower shall ensure that the Project Executing Agency publicly discloses on its website information related to (a) the intended and actual utilization of Loan proceeds; and (b) award of procurement contracts, such as (i) the list of participating bidders for each contract, (ii) name of the winning bidder, (iii) basic details on bidding procedures adopted, (iv) amount of the contract awarded, and (v) list of goods and/or services purchased.

To be complied with, the website of PMU-USTH is online but needs upgrading.

15

ANNEX 4

PROCUREMENT PLAN Basic Data

Project Name: University of Science and Technology of Hanoi Development (New ModelUniversity) Project Country:Vietnam Executing Agency: Ministry of Education and Training Loan Amount: $190 million Loan Number: 2750-VIE and 2751-VIE Date of First Procurement Plan: 10 November 2011 Date of this Procurement Plan: 2 October 2013

A. Process Thresholds and Review

1. Project Procurement Thresholds

1. Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works.

Procurement of Goods and Works Method Threshold International Competitive Bidding (ICB) for Works International Competitive Bidding for Goods

Above $2,000,000 Above $500,000

National Competitive Bidding (NCB) for Works Beneath that stated for ICB, Works National Competitive Bidding for Goods Shopping for Works

Beneath that stated for ICB, Goods Below $100,000

Shopping for Goods Below $100,000

2. ADB Prior or Post Review

2. Except as ADB may otherwise agree, the following prior or post review requirements apply to the various procurement and consultant recruitment methods used for the project.

Procurement Method Prior or Post Comments Procurement of Goods and Works ICB Works ICB Goods

Prior Prior

Prior review of all bidding documents

NCB Works Prior/Post The first two contracts in English language version for NCB/Shopping goods and works will be reviewed using prior review procedure. Following that, post review will be used. ADB approved procurement documents will be used as a model for subsequent procurement.

NCB Goods Shopping for Works Shopping for Goods Direct Contracting

Prior/Post

Prior

Recruitment of Consulting Firms Quality and Cost-Based Selection (QCBS) Quality-Based Selection (QBS) Least-Cost Selection (LCS) Consultants’ Qualifications Selection (CQS)

Prior Prior Prior Prior

Prior review for all contracts.

Recruitment of Individual Consultants Individual Consultants Prior

16

3. Goods and Works Contracts Estimated to Cost More Than $1 Million

3. The following table lists goods and works contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.

General Description

Contract Value

($) Procurement

Method Prequalification of Bidders (y/n)

Advertisement Date(quarter/year) Comments

Services and Infrastructure Package

13,669,907

ICB

Y Q4, 2014

International

Construction Package 84,811,263 ICB Y Q1, 2015 International

4. Consulting Services Contracts Estimated to Cost More Than $100,000

4. The following table lists consulting services contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.

General Description Contract

Value ($)

Recruitment Method

Advertisement Date

International or National Assignment

Comments

Consulting Services-Firms PMU-USTH Architecture Design Competition Management

300,000 CQS Q4,2012 International Signing contract.

Architects & Engineering Consultant (AEC)

6,614,000

QBS Q1,2014 International Total 749 pm : Int x 217 pm ; Nat x 531pm

Geological Survey Consultant for Design (GSCD)

819,000 QBS Q1,2014 National

Project Management and Supervision for Construction (PMSC)

4,283,000 QCBS (80:20) Q2, 2014 International

UIU Higher Education Equipment Supply (HEES)

1,278,050

QCBS (80:20) Q2, 2014 International

Higher Education Services Consultant (HESC)

6,937,500

QCBS (80:20) Q2, 2014 International

Individual Consultants and Staff PMU-USTH Procurement and Project Readiness (PPR)

International Consultant for Procurement and Project Implementation

546,000 ICS Q2,2012 International 27 pm

Contract signed.

UIU International Higher Education Planning Consultant

648,000 ICS Q2,2013 International 36 pm

Recruitment ongoing.

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5. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000

5. The following table groups smaller-value goods, works and consulting services contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.

General Description

Value of Contracts

($)

Number of Contracts


Method

Comments

Goods PMU-USTH Supply and Installation of Furniture for PMU 15,000 1 Shopping Contract signed. Office Equipment and Software for PMU 95,000 1 Shopping Contract signed. Vehicles for PMU 48,400 1 Shopping Contract signed. UIU Supply and Installation of Furniture for UIU 15,000 1 Shopping Advertisement in Q4,

2013. Office Equipment and Software for UIU

80,000

1 Shopping Advertisement in Q4, 2013.

Vehicle for UIU

50,000

1 Shopping Advertisement in Q4, 2013.

Laboratory Equipment Package 1 1,000,000 1 ICB Advertisement in Q1, 2014.

Equipment, Computers and Software for USTH 1

300,000 2 NCB Advertisement in Q1, 2014.



Works Construction of Temporary Office at Hoa Lac 50,000 1 Shopping Advertisement in Q4,

2013 Construction of Temporary Boundary Fence 582,000 1 NCB Advertisement in Q1,

2014 Consulting Services –Firms Financial Management Software and Installation (FMSI)

20,000 1 CQS/National Contract signed

Contract Legal Review (CLR) 96,250 1 CQS/National Recruitment ongoing. Independent Audit (IA) (FY2012) 15,000 1 LCS/National Signing contract. Independent Audit (IA) (FY2013) 15,000 1 SSS/National Initiate recruitment in

Q1/2014. Architecture and Engineering of Boundary Fence (AEBF)

8,000 1 CQS/National Recruitment ongoing.

Geology Survey (GS) 20,000 1 CQS/National Recruitment ongoing. Individual consultants PMU-USTH Procurement and Project Readiness (PPR)

International Space Scheduler

72,000 1 ICS/International 4pm

Contract signed.

International Quantity Surveyor 36,000

1 ICS/International 2pm

Contract signed.

National Procurement Consultant 1 93,000 5 ICS/National 62 pm

Contract signed. Annual contracts.

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General Description

Value of Contracts

($)

Number of Contracts


Method

Comments

National Procurement Consultant 2 43,200 3 ICS/National 36 pm


Project Operation Coordinator 93,000 5 ICS/National 62 pm


National Consultant on Construction Management

93,000 5 ICS/National 62 pm

Contract signed. Annual contracts

National Consultant on Architecture 74,400 5 ICS/National 62 pm


National Consultant on Construction Cost 74,400 5 ICS/National 62 pm


National Consultant on Higher Education Operation


Contract signed.

National Consultant on Monitoring, Evaluation 57,600 4 ICS/National 48 pm

Contract signed.

Information Technology Administrator



National Consultant on Website Design and Development

8,000 1 ICS/National

Contract signed.

General Accountant


Contract signed. Annual contract.

Payment Accountant



Project Administrator 74,400 5 ICS/National 62 pm


Interpreter 1



Interpreter 2



Independent Resettlement Review (IRR) 25,000 1 ICS/National Contract signed. Lump-sum contract

National Internal Resettlement Monitor 14,400 1 ICS/National 12 pm

Advertisement in Q4, 2013.

UIU National Procurement Consultant 72,000 4 ICS/National

48 pm Contract signed. Annual contracts.

National Gender Consultant 36,000 3 ICS/National 24 pm


Project Financial Consultant 72,000 4 ICS/National 48 pm

Contract signed.

Project Disbursement Assistant 57,600 4 ICS/National 48 pm


Interpreter 62,400 4 ICS/National 52 pm


National HR Development Consultant 36,000 2 ICS/National 24 pm


Project Assistant for HR &Administration 60,000 4 ICS/National 50 pm


Assistant to Teaching and Learning Consultant 60,000 4 ICS/National 50 pm


Assistant to Quality Assurance Consultant 60,000 4 ICS/National Advertisement in

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General Description

Value of Contracts

($)

Number of Contracts


Method

Comments

50 pm Q4, 2013. Assistant to Laboratory Management Consultant



Assistant to Industry Linkage Consultant 60,000 4 ICS/National 50 pm


Assistant to Research Support Consultant 60,000 4 ICS/National 50 pm


B. Indicative List of Packages Required Under the Project 6. The following table lists goods and works contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.

General Description

Estimated Contract Value ($)

Procurement Method

Estimated Number of Contracts

Advertisement Date(quarter/year) Comments

Works Services and Infrastructure Package

13,669,907

ICB

1 Q4, 2014

Construction Package 84,811,263 ICB 1 Q1, 2015

Construction of Temporary Office at Hoa Lac

50,000 Shopping 1 Q4,2013

Construction of Temporary Boundary Fence

582,000 NCB 1 Q1, 2014

Goods Laboratory Equipment Package 1

1,000,000 ICB 1 Q1, 2014

Laboratory Equipment Package 2

2,000,000 ICB 2 Q2, 2014


2,000,000 ICB 2 Q1, 2015


20,000,000 ICB 2 Q4, 2015


10,000,000 ICB 4 Q3, 2016

Equipment Package Library stock (E–Library, Textbooks, Scientific Journals, Library Equipment)

3,000,000

ICB

4 Q2, 2016

Supply and Installation of Furniture for PMU

15,000 Shopping 1 Q3, 2012 Contract signed.

Office Equipment and Software for PMU

95,000 Shopping 1 Q3, 2012 Contract signed.

Vehicle for PMU 48,400 Shopping 1 Q3, 2012 Contract signed. Supply and Installation of Furniture for UIU

15,000 Shopping 1 Q4, 2013

Office Equipment and Software for UIU

80,000 Shopping 1 Q4, 2013

Vehicle for UIU 50,000 Shopping 1 Q4, 2013

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Equipment, Computers and Software for USTH Package 1

300,000 NCB 1 Q4, 2013

Equipment, Computers and Software for USTH Package 2

790,000 NCB 1 Q3, 2016

Office Equipment, Supplies, and Software for USTH

510,000 NCB 4 Q3, 2016

General Description Estimated

Contract Value ($)

Recruitment Method

Estimated Number of Contracts

Advertisement Date

(quarter/year)

Type of Proposal

Comments

Consulting Services Architecture Design Competition Management

300,000 CQS 1 Q4, 2012 Signing contract.

Architects and Engineering Consultant (AEC)

6,614,000 QBS 1 Q1, 2014 FTP Total 749 pm Int x 217 pm Nat x 531pm

Geological Survey Consultant for Design (GSCD)

819,000 QBS 1 Q1, 2014 FTP International

Project Management and Supervision for Construction (PMSC)

4,283,000 QCBS (80:20)

1 Q2, 2014 FTP International

Higher Education Equipment Supply (HEES)

1,278,050 QCBS (80:20)


Higher Education Services Consultant (HESC)

6,937,500 QCBS (80:20)


Procurement and Project Readiness (PPR) International Consultant

for Procurement and Project Implementation

546,000 ICS 1 Q2, 2012 Contract signed.

International Higher Education Planning Consultant

648,000 ICS 1 Q2, 2013

International Space Scheduler


International Quantity Surveyor


Financial Management Software and Installation (FMSI)

20,000 CQS 1 Q4, 2012 Contract signed.

Contract Legal Review (CLR) 96,250 CQS 1 Q2, 2013 Recruitment ongoing.

Independent Audit (IA) 180,000 LCS/SSS 6

Q1 annually FYs 2012-2018

Architecture and Engineering of Boundary Fence (AEBF)

8,000 CQS 1 Q4, 2012 Recruitment ongoing.

Geology Survey 20,000 CQS 1 Q1, 2012 Recruitment ongoing.

National Procurement Consultant 1 PMU-USTH

93,000 ICS 5 (Annual)

Q3, 2012 Contract signed.

National Procurement Consultant 2 PMU-USTH



Project Operation Coordinator



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National Consultant on Construction Management



National Consultant on Architecture



National Consultant on Construction Cost



National Consultant on Higher Education



National Internal Resettlement Monitor


National Consulting on Monitoring Evaluation



Information Technology Administrator



National Consultant on Website Design and Development


General Accountant 74,400 ICS 5 (Annual)


Payment Accountant 73,200 ICS 5 (Annual)


Project Administrator 74,400 ICS 5 (Annual)


Interpreter 1 PMU-USTH 74,400 ICS 5 (Annual)


Interpreter 2 PMU-USTH 73,200 ICS 5 (Annual)


Independent Resettlement Review (IRR)


National Procurement Consultant UIU



National Gender Consultant UIU


Q4, 2013

Project Financial Consultant UIU



Project Disbursement Assistant UIU



Interpreter UIU 62,400 ICS 4 (Annual)


National HR Development Consultant


Q4, 2013

Project Assistant for HR and Administration


Q4, 2013

Assistant to Teaching and Learning Consultant


Q4, 2013

Assistant to Quality Assurance Consultant


Q4, 2013

Assistant to Laboratory Management Consultant


Q4, 2013

Assistant to Industry Linkage Consultant


Q4, 2013

Assistant to Research Support Consultant


Q4, 2013

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C. National Competitive Bidding

1. General

7. The laws to be followed for national competitive bidding are set forth in (i) the Law on Procurement No. 61/2005/QH11 of 29 November 2005, (ii) the Construction Law no. 16/2003/QH11 of 26 November 2003, (iii) the Amendment Law No. 38/2009/QH12 of 19 June 2009 amending and supplementing key articles of the above-mentioned two laws, and (iv) the processes described in Decree No. 85/2009/ND-CP of 15 October 2009 on “Guiding Implementation of Procurement Law and Selection of Construction Contractors under the Construction Law”. Whenever any procedure in the national procurement laws is inconsistent with the ADB Procurement Guidelines (April 2010, and as amended from time to time), the ADB Guidelines shall prevail, amongst others on the following.

2. Registration

(i) Bidding shall not be restricted to pre-registered firms and such registration shall not be a condition for participation in the bidding process.

(ii) Where registration is required prior to award of contract, bidders: (i) shall be allowed a reasonable time to complete the registration process; and (ii) shall not be denied registration for reasons unrelated to their capability and resources to successfully perform the contract, which shall be verified through post-qualification.

(iii) Foreign bidders shall not be required to register as a condition for submitting bids.

(iv) Bidder’s qualification shall be verified through pre- or post-qualification process. 3. Eligibility

(i) National sanction lists may only be applied with approval of ADB2. (ii) A firm declared ineligible by ADB cannot participate in bidding for an ADB financed contract during the

period of time determined by ADB.

(iii) A firm which has been engaged by the borrower to provide consulting services for the preparation or implementation of a project, and any of its affiliates, shall be disqualified from subsequently providing goods, works, or services, resulting from or directly related to the firm's consulting services for such preparation or implementation.

4. Prequalification and Post qualification

(i) Post qualification shall be used unless prequalification is explicitly provided for in the loan agreement/procurement plan. Irrespective of whether post qualification or prequalification is used, eligible bidders (both national and foreign) shall be allowed to participate.

(ii) In the event where pre-qualification is used, interested firms shall be given no less than 42 days to prepare

their pre-qualification submission. (iii) When pre-qualification is required, the evaluation methodology shall be based on pass/ fail criteria relating

to the firm’s experience, technical and financial capacities.

2Section 52 of the Integrity Principles and Guidelines allows ADB to sanction parties who fail to meet ADB's high ethical standards based on the decisions of

third parties, such a decision can only be made by the Integrity Oversight Committee on the basis of ADB's own independent examination of the evidence. As such, the process should follow the normal assessment and investigative processes prescribed by the Integrity Principles and Guidelines.http://www.adb.org/Documents/Guidelines/Integrity-Guidelines-Procedures/integrity-guidelines-procedures-2006.pdf

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(iv) Qualification criteria shall be clearly specified in the bidding documents, and all criteria so specified, and

only criteria so specified, shall be used to determine whether a bidder is qualified. The evaluation of the bidder’s qualifications should be conducted separately from the technical and commercial evaluation of the bid.

(v) In carrying out the post-qualification assessment, the Employer/ Purchaser shall exercise reasonable

judgment in requesting, in writing, from a bidder missing factual or historical supporting information related to the bidder’s qualifications and shall provide reasonable time period (a minimum of 7 days) to the bidder to provide response.

5. Preferences

(i) No preference of any kind shall be given to domestic bidders or for domestically manufactured goods.

(ii) Regulations issued by a sectoral ministry, provincial regulations and local regulations which restrict national competitive bidding procedures to a class of contractors or a class of suppliers shall not be applicable.

(iii) Foreign bidders shall be eligible to participate in bidding under the same conditions as local bidders, and

local bidders shall be given no preference (either in bidding process or in bid evaluation) over foreign bidders, nor shall bidders located in the same province or city as the procuring entity be given any such preference over bidders located outside that city or province

6. Advertising

(i) Invitations to bid (or prequalify, where prequalification is used) shall be advertised in Government Public Procurement Bulletin. In addition, the procuring agency should publish the advertisement in at least one widely circulated national daily newspaper or freely accessible, nationally-known website allowing a minimum of twenty-eight (28) days for the preparation and submission of bids and allowing potential bidders to purchase bidding documents up to at least twenty-four (24) hours prior the deadline for the submission of bids. Bidding of NCB contracts estimated at $500,000 or more for goods and related services or $1,000,000 or more for civil works shall be advertised on ADB’s website via the posting of the Procurement Plan.

(ii) Bidding documents shall be made available by mail, or in person, to all who are willing to pay the required

fee, if any.

(iii) The fee for the bidding documents should be reasonable and consist only of the cost of printing (or photocopying) the documents and their delivery to the bidder. (Currently set at 1 Mln VND, increase subject to approval of ADB)

7. Standard bidding documents

(i) The Borrower’s standard bidding documents, acceptable to ADB, shall be used. The bidding documents shall provide clear instructions on how bids should be submitted, how prices should be offered, and the place and time for submission and opening of bids.

(ii) Bidders shall be allowed to submit bids by hand or by mail/ courier. 8. Bid Opening

(i) All bids received after the deadline for submission indicated in the bidding documents will be rejected.

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(ii) All bids received before the bid submission deadline shall be opened except those with proper notice of withdrawal.

(iii) A copy of the bid opening record shall be promptly provided to all bidders who submitted bids.

9. Bid Evaluation

(i) Merit points shall not be used in bid evaluation. (ii) Bidders shall not be eliminated from detailed evaluation on the basis of minor, non-substantial deviations.3 (iii) Except with the prior approval of ADB, no negotiations shall take place with any bidder prior to the award,

even when all bids exceed the cost estimates. (iv) A bidder shall not be required, as a condition for award of contract, to undertake obligations not specified

in the bidding documents or otherwise to modify the bid as originally submitted. (v) Bids shall not be rejected on account of arithmetic corrections of any amount. However, if the Bidder that

submitted the lowest evaluated bid does not accept the arithmetical corrections made by the evaluating committee during the evaluation stage, its bid shall be disqualified and its bid security shall be forfeited.

10. Rejection of All Bids and Rebidding

(i) No bid shall be rejected on the basis of a comparison with the owner's estimate or budget ceiling without the ADB’s prior concurrence.

(ii) Bids shall not be rejected and new bids solicited without the ADB’s prior concurrence. 11. Participation by Government-owned enterprises

8. Government-owned enterprises shall be eligible to participate as bidders only if they can establish that they are legally and financially autonomous, operate under Enterprise law and are not a dependent agency the contracting entity. Furthermore, they will be subject to the same bid and performance security requirements as other bidders.

12. Participation by Foreign contractors and suppliers. Joint Ventures and Associations

(i) Foreign suppliers and contractors from eligible countries shall, if they are interested, be allowed to participate without being required to associate or form joint ventures with local suppliers or contractors, or to subcontract part of their contract to a local bidder.

(ii) A bidder declared the lowest evaluated responsive bidder shall not be required to form a joint venture or

to sub-contract part of the supply of goods as a condition of award of the contract.

(iii) License for foreign contractors operation in Vietnam would be provided in a timely manner and will not be arbitrarily withheld.

13. Publication of the Award of Contract. Debriefing.

(i) For contracts subject to prior review, within 2 weeks of receiving ADB’s “No-objection” to the recommendation of contract award, the borrower shall publish in the Government Public Procurement

3Minor, non-substantial deviation is one that, if accepted, would not affect in any substantial way the scope, quality, or performance specified in the

contract; or limit in any substantial way, the Contracting entity rights or the Bidder’s obligations under the proposed contract or if rectified, would not unfairly affect the competitive position of other bidders presenting substantially responsive bids.

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Bulletin, or well-known and freely-accessible website the results of the bid evaluation, identifying the bid and lot numbers, and providing information on: i) name of each bidder who submitted a bid; ii) bid prices as read out at bid opening; iii) name and evaluated prices of each bid that was evaluated; iv) name of bidders whose bids were rejected and the reasons for their rejection; and v) name of the winning bidder, and the price it offered, as well as the duration and summary scope of the contract awarded.

(ii) For contracts subject to post review, the procuring entity shall publish the bid evaluation results no later

than the date of contract award.

(iii) In the publication of the bid evaluation results, the borrower shall specify that any bidder who wishes to ascertain the grounds on which its bid was not selected, should request an explanation from the procuring entity. The procuring entity shall promptly provide an explanation of why such bid was not selected, either in writing and / or in a debriefing meeting, at the option of the borrower. The requesting bidder shall bear all the costs of attending such as debriefing. In this discussion, only the bidder’s bid can be discussed and not the bids of competitors.

14. Handling of Complaints

9. The national competitive bidding documents shall contain provisions acceptable to ADB describing the handling of complaints in accordance with Chapter X of Decree No. 85/2009/ND-CP, read with Articles 72 and 73 of the Law on Procurement No. 61/2005/QH11.

15. ADB Member Country Restrictions

10. Bidders must be nationals of member countries of ADB, and offered goods, works, and services must be produced in and supplied from member countries of ADB.

16. Fraud and Corruption

11. ADB will sanction a party or its successor, including declaring ineligible, either indefinitely or for a stated period of time, to participate in ADB-financed activities if it at any time determines that the firm has, directly or through an agent, engaged in corrupt, fraudulent, collusive, or coercive practices in competing for, or in executing, an ADB-financed contract.

17. Right to Inspect/ Audit

12. Each bidding document and contract financed from by ADB shall include a provision requiring bidders, suppliers, contractors to permit ADB or its representative to inspect their accounts and records relating to the bid submission and contract performance of the contract and to have them audited by auditors appointed by ADB.

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