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CONFORMED COPY 
The World Bank 
1818 H Street N.W. 
(202) 477-1234 
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
 
Washington, D.C.  20433 
Cable Address:  INTBAFRAD 
INTERNATIONAL DEVELOPMENT ASSOCIATION
 
U.S.A. 
Cable Address:  INDEVAS 
 
June 14, 2010 
 
His Excellency 
Nguyę
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Governor 
State Bank of Vietnam 
Hanoi, Vietnam 
 
Re: 
Vietnam: IDF Grant for Strengthening Procurement Audit
 
Project 
 
IDF Grant No. TF096622 
 
Excellency: 
 
In response to the request for financial assistance made on behalf of Socialist Republic of 
Vietnam (the “Recipient”), I am pleased to inform you that the International Bank for 
Reconstruction and Development (the “World Bank”) proposes to extend to the Recipient, a 
grant from the World Bank’s Institutional Development Fund (“IDF”) in an amount not to exceed 
two hundred thousand United States Dollars (U.S.$200,000) (the “Grant”) on the terms and 
conditions set forth or referred to in this letter agreement (the “Agreement”), which includes the 
attached Annex, to assist in the financing of the project described in the Annex (the “Project”).
 
The Recipient represents, by confirming its agreement below, that it is authorized to enter 
into this Agreement and to carry out the Project in accordance with the terms and conditions set 
forth or referred to in this Agreement.  
 
Please confirm the Recipient’s agreement to the foregoing by having an authorized 
official of the Recipient sign and date the enclosed copy of this Agreement, and returning it to 
the World Bank.  Upon receipt by the World Bank of this countersigned copy, this Agreement 
shall become effective as of the date of the countersignature.  
 
Very truly yours, 
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 
 
By: Victoria Kwakwa
Victoria Kwakwa 
Country Director, Vietnam 
East Asia and Pacific Region 
 
CONFIRMED: 
SOCIALIST REPUBLIC OF VIETNAM 
 
By Nguyen Van Binh
Authorized Representative 
Name Nguyen Van Binh
Title Deputy Governor
Date: August 19, 2010
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Enclosures:   
 
(1) 
Standard Conditions for Grants Made by the World Bank out of Various Funds, 
dated July 1, 2008. 
 
(2) 
Disbursement Letter dated June 14, 2010 together with World Bank Disbursement 
Guidelines for Projects, dated May 1, 2006. 
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ANNEX 
 
Article I 
Standard Conditions; Definitions 
 
1.01. 
Standard Conditions.
 
The Standard Conditions for Grants Made by the World Bank out 
of Various Funds dated 
July 1, 2008 (“Standard Conditions”), with the modifications set forth in 
the Appendix to this Agreement, constitute an integral part of this Agreement. 
 
1.02. 
Definitions.  
Unless the context requires otherwise, the capitalized terms used in this 
Agreement have the meanings ascribed to them in the Standard Conditions or in this Agreement.  
 
Article II 
Project Execution 
 
2.01. 
Project Objectives and Description.
 
The objective of the Project is to increase 
transparency and accountability in public procurement.  The Project consists of the following parts:  
 
Part 1
.
Strengthening of Procurement Audit Function
(a)  Carrying out an assessment of the existing public procurement audit function and the 
development of national standards for procurement audits. 
 
(b) Carrying out training activities for the Public Procurement Agency and Ministry of 
Planning and Investment auditors in procurement auditing. 
 
Part 
2. 
Update the Assessment of the Recipient’s Procurement System
(a)  Assessment of the legal framework for public procurement using the Organization for 
Economic Co-operation and Development - Development Assistance Committee 
(OECD-DAC) benchmarking tool for international good public procurement practice.  
 
(b)  Conduct workshops to disseminate the findings from the assessment mentioned in (a) 
above and to propose the required improvements in the legal framework.   
 
Part 3
.
External Assessment of the Pilot e-GP System for Compliance with MDB Requirements
(a)  Support study tours for staff of relevant institutions to evaluate the Pilot e-Government 
Procurement System (e-GP System) and to learn from similar international experiences.  
 
(b) Carrying out an external assessment of e-GP System for the purpose of determining its 
suitability for use in multilateral development banks (MDBs) financed projects.  
 
Part 4
.
Project Audit
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Conduct Project audit by independent external auditors.  
2.02. 
Project Execution Generally.
 
The Recipient declares its commitment to the objectives 
of the Project. To this end, the Recipient shall carry out the Project through the Public 
Procurement Agency under the Ministry of Planning and Investment, in accordance with the 
provisions of: (a) Article II of the Standard Conditions; (b) the 
“Guidelines on Preventing and 
Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and 
Grants”, dated October 15, 2006, with the modifications set forth in the Appendix to this 
Agreement; and (c) this Article II. 
 
2.03.
 
Project Monitoring, Reporting and Evaluation. 
(a)  The Recipient shall monitor and 
evaluate the progress of the Project and, upon the World Bank’s request, prepare Project Reports, 
in accordance with the provisions of Section 2.06 of the Standard Conditions and on the basis of 
the indicators set forth below in paragraph (b) of this Section. Each Project Report shall cover 
such period as shall be indicated in the World Bank’s request and shall be furnished to the World 
Bank not later than one (1) month after the date of such request. 
(b) 
The performance indicators referred to above in paragraph (a) consist of the 
following:   
(i) 
Sustainable system for assessing procurement compliance and 
performance by procuring entities established; 
(ii) 
Legal framework for public procurement benchmarked against 
international standards and report issued; and 
(iii) 
Pilot e-GP system benchmarked against MDBs’ standards identified for 
MDB financed procurement and Gap Matrix, which includes the 
modifications, enhancements, adjustments, and customization required to 
be made to the Pilot e-GP system, discussed with the Recipient. 
 
(c) 
The Recipient shall, upon the World Bank’s request, prepare the Completion 
Report in accordance with the provisions of Section 2.06 of the Standard Conditions. The 
Completion Report shall be furnished to the World Bank not later than October 15, 2013. 
2.04. 
Financial Management.
 (a) 
The Recipient shall ensure that a financial management 
system is maintained in accordance with the provisions of Section 2.07 of the Standard 
Conditions. 
 
(b) 
The Recipient shall ensure that interim unaudited financial reports for the Project 
are prepared and furnished to the World Bank not later than forty five (45 days) after the end of 
each calendar quarter, covering the quarter, in form and substance satisfactory to the World Bank. 
 
(c) 
The Recipient shall have its Financial Statements audited in accordance with the 
provisions of Section 2.07 (b) of the Standard Conditions. Each such audit of the Financial 
Statements shall cover the period of one (1) fiscal year of the Recipient. The audited Financial 
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Statements for each such period shall be furnished to the World Bank not later than six (6) months 
after the end of such period.
 
2.05. 
Procurement 
 
(a) General
.
All goods and services required for the Project and to be financed out 
of the proceeds of the Grant shall be procured in accordance with the requirements set forth or 
referred to in: 
 
(i) 
Section I  of the “Guidelines: Procurement under IBRD Loans and IDA 
Credits” published by the World Bank in May 2004 and revised in October 2006 and May 2010 
(“Procurement Guidelines”), in the case of goods and non-consulting services required for 
workshops and study tours; and 
 
(ii) 
Sections I  and IV of the “Guidelines: Selection and Employment of 
Consultants by World Bank Borrowers” published by the World Bank in May 2004 and revised 
in October 2006 and May 2010 (“Consultant Guidelines”) in the case of consultants’ services. 
 
(b) Definitions
.
The capitalized terms used in the following paragraphs of this 
Section to describe particular procurement methods or methods of review by the World Bank of 
particular contracts, refer to the corresponding method described in the Procurement Guidelines, 
or the Consultant Guidelines, as the case may be. 
 
(c) 
Particular Methods of Procurement of Goods and non-consulting services
(i) 
Except as otherwise provided in item (ii) below, goods and non 
consulting services required for training workshops and study tours shall 
be procured under contracts awarded on the basis of Shopping. 
 
(ii) 
Goods and non consulting services required for training workshops and 
study tours may be procured on the basis of Direct Contracting.  
 
(d) 
Particular Methods of Procurement of Consultants’ Services
(i) 
Except as otherwise provided in item (ii) below, consultants’ services 
shall be procured under contracts awarded on the basis of Selection based on the Consultants’ 
Qualifications.
 
(ii) 
The following methods may be used for the procurement of consultants’ 
services for those assignments which the World Bank agrees meet the requirements set forth in 
the Consultant Guidelines for their use:  (A) Single-source Selection; (B) Selection of Individual 
Consultants; and (C) Sole Source Procedures for the Selection of Individual Consultants.   
 
(e) 
Review by the World Bank of Procurement Decisions
.
The Procurement Plan shall set forth those contracts which shall be subject to the 
World Bank’s Prior Review.  All other contracts shall be subject to Post Review by the 
World Bank.
 
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Article III 
Withdrawal of Grant Proceeds 
 
3.01. 
Eligible Expenditures.
 
The Recipient may withdraw the proceeds of the Grant in 
accordance with the provisions of: (a) Article III of the Standard Conditions; (b) this Section; and 
(c) such additional instructions as the World Bank may specify by notice to the Recipient 
(including the “World Bank Disbursement Guidelines for Projects” dated May 2006, as revised 
from time to time by the World Bank and as made applicable to this Agreement pursuant to such 
instructions), to finance Eligible Expenditures as set forth in the following table.  The table 
specifies the categories of Eligible Expenditures that may be financed out of the proceeds of the 
Grant (“Category”), the allocations of the amounts of the Grant to each Category, and the 
percentage of expenditures to be financed for Eligible Expenditures in each Category: 
 
For the purposes of this Section, the term “Training and Workshops” the costs associated with 
training of personnel involved in the implementation of the Project including travel and 
subsistence costs for training and workshops, costs associated with securing the services of 
trainers, rental of training and workshops facilities, preparation and reproduction of training and 
workshop materials, and other costs directly related to workshop and training courses preparation 
and implementation. 
3.02. 
Withdrawal Conditions.
 
Notwithstanding the provisions of Section 3.01 of this 
Agreement, no withdrawal shall be made for payments made prior to the date of countersignature 
of this Agreement by the Recipient.  
3.03. 
Withdrawal Period.
 
The Closing Date referred to in Section 3.06 (c) of the Standard 
Conditions is three (3) years after the date of countersignature of this Agreement by the 
Recipient. 
 
Category 
Amount of the Grant 
Allocated  
(expressed in USD) 
Percentage of 
Expenditures to be 
Financed 
(inclusive of Taxes) 
(1) Consultants’ Services 
132,000 
100% 
(2) Training and Workshops 
60,000 
100% 
(3) Audit  
8,000 
100% 
TOTAL AMOUNT 
200,000  
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Article IV 
Recipient’s Representative; Addresses 
 
4.01. 
Recipient’s Representative
.
The Recipient’s Representative referred to in Section 7.02 
of the Standard Conditions is the Governor, State Bank of Vietnam.  
4.02. 
Recipient’s Address
.
The Recipient’s Address referred to in Section 7.01 of the Standard 
Conditions is: 
State Bank of Vietnam 
49 Ly Thai To 
Hanoi 
Socialist Republic of Vietnam  
 
Cable: 
  Telex: 
  Facsimile: 
 
VIETBANK 
 412248 
  (84-4)825 
0612 
Hanoi 
  NHTWVT 
 
4.03. 
World Bank’s Address
.
The World Bank’s Address referred to in Section 7.01 of the 
Standard Conditions is: 
 
International Bank for Reconstruction and Development 
 
1818 H Street, N.W. 
Washington, D.C. 20433 
 
United States of America 
 
Cable: 
  Telex: 
  Facsimile: 
 INTBAFRAD 
 248423 
(MCI) 
or 1-202-477-6391 
 
Washington, D.C. 
64145 (MCI) 
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APPENDIX 
 
Modifications to the Standard Conditions and the
 
Anti-Corruption Guidelines 
A.
 
The Standard Conditions are modified as follows:   
1. 
The provisions of Section 4.02 (j) of the Standard Conditions are modified to read as 
follows:  
... (j) 
Ineligibility
.
IBRD or IDA has declared the Recipient (other than the Member 
Country) ineligible to receive proceeds of any financing made by IBRD or IDA or 
otherwise to participate in the preparation or implementation of any project financed in 
whole or in part by IBRD or IDA, as a result of: (i) a determination by IBRD or IDA that 
the Recipient has engaged in fraudulent, corrupt, coercive or collusive practices in 
connection with the use of the proceeds of any financing made by IBRD or IDA; and/or 
(ii) a declaration by another financier that the Recipient is ineligible to receive proceeds 
of financings made by such financier or otherwise to participate in the preparation or 
implementation of any project financed in whole or in part by such financier as a result of 
a
determination by such financier that the Recipient has engaged in fraudulent, corrupt, 
coercive or collusive practices in connection with the use of the proceeds of a financing 
made by such financier.
”
B.
 
The modifications to the Anti-Corruption Guidelines are as follows:   
 
1.  
Section 5 is re-numbered as Section 5(a) and a new Section 5(b) is added to read as 
follows: 
 
“…(b)  These Guidelines also provide for the sanctions and related actions to be imposed 
by the Bank on Borrowers (other than the Member Country) and all other individuals or 
entities who are recipients of Loan proceeds, in the event that the Borrower or the 
individual or entity has been debarred by another financier as a result of a determination 
by such financier that the Borrower or the individual or entity has engaged in fraudulent, 
corrupt, coercive or collusive practices in connection with the use of the proceeds of a 
financing made by such financier.” 
 
2. 
Section 11(a) is modified to read as follows: 
 
“… (a)  sanction in accordance with prevailing Bank’s sanctions policies and procedures 
(fn13) a Borrower (other than a Member Country) (fn 14) or an individual or entity, 
including (but not limited to) declaring such Borrower, individual or entity ineligible 
publicly, either indefinitely or for a stated period of time: (i) to be awarded a Bank-
financed contract; (ii) to benefit from a Bank-financed contract, financially or otherwise, 
for example as a sub-contractor; and (iii) to otherwise participate in the preparation or 
implementation of the project or any other project financed, in whole or in part, by the 
Bank, if at any time the Bank determines (fn 15) that such Borrower, individual or entity 
has engaged in corrupt, fraudulent, collusive, coercive or obstructive practices in 
connection with the use of loan proceeds, or if another financier with which the Bank has 
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entered into an agreement for the mutual enforcement of debarment decisions has 
declared such person or entity ineligible to receive proceeds of financings made by such 
financier or otherwise to participate in the preparation or implementation of any project 
financed in whole or in part by such financier as a result of a determination by such 
financier that the Borrower or the individual or entity has engaged in fraudulent, corrupt, 
coercive or collusive practices in connection with the use of the proceeds of a financing 
made by such financier.” 
 
Footnotes:
“13. An individual or entity may be declared ineligible to be awarded a Bank financed 
contract upon completion of sanctions proceedings pursuant to the  Bank’s sanctions 
policies and procedures, or under the procedures of temporary suspension or early 
temporary suspension in connection with an ongoing sanctions proceeding, or following a 
sanction by another financier with whom the Bank has entered into a cross debarment 
agreement, as a result of a determination by such financier that the firm or individual has 
engaged in fraudulent, corrupt, coercive or collusive practices in connection with the use 
of the proceeds of a financing made by such financier.” 
 
“14. Member Country includes officials and employees of the national government or of 
any of its political or administrative subdivisions, and government owned enterprises and 
agencies that are not eligible to bid under paragraph 1.8(b) of the Procurement Guidelines 
or participate under paragraph 1.11(c) of the Consultant Guidelines.” 
 
“15. The Bank has established a Sanctions Board, and related procedures, for the purpose 
of making such determinations. The procedures of the Sanctions Board sets forth the full 
set of sanctions available to the Bank. In addition, the Bank has adopted an internal 
protocol outlining the process to be followed in implementing debarments by other 
financiers, and explaining how cross-debarments will be posted on the Bank’s website 
and otherwise be made known to staff and other stakeholders.”