Commune Development Funds (CDFs) are funds allocated by RUDEP to a Commune for a calendar year for development activities. CDFs aim to build the capacity of CPC, Village leaders and mass movement staff to plan, manage and monitor development activities whilst maintaining transparency, accountability, cost-effectiveness, participation and pro-poor principles. The CDF is sourced from the Government of Australia funds provided to RUDEP.

Uses

The CDF has four components and funds are allocated to each of these components. The components of the CDF are:

·        Economic Component:

o       Livestock (pigs, cattle, chickens, goats, etc)

o       Crops (rice, maize, cassava, etc)

o       Aquaculture (ponds, rice/fish, etc)

o       Forestry and tree crops (cinnamon, acacia, fruit trees, etc)

·        Social Component:

o       Health (child nutrition, women’s reproductive health, malaria prevention, etc)

o       Vocational training

o       Disaster mitigation

·        Infrastructure Component:

o       Roads

o       Irrigation

o       Wells/bathrooms

o       Communal water supply

o       Kindergartens

o       Electricity systems

o       Bridges

o       Markets

·        VSCF Support Component:

o       Livestock (pigs, cattle, chickens, goats, etc)

o       Crops (rice, maize, cassava, etc)

o       Aquaculture (ponds, rice/fish, etc)

o       Forestry and tree crops (cinnamon, acacia, fruit trees, etc)

o       Study Tours

Allocation

Details of the activities to be funded in the Economic, Social and Infrastructure Components are outlined in the Commune Annual Plan. More detailed implementation information is contained in the plans prepared by each Activity Group. The VSCF Support Component provides funds to existing VSCFs to increase and diversify their technical knowledge and skills with economic activities.

  Funding

Funds are allocated to communes depending on the population of each Commune:

·        Standard commune: with a population of more than 600 HHs: receives 100% of the allocated budget.

·        Small Commune: with a population of less than 600 HHs: receive 50% of the allocated budget.

CPCs are advised at the beginning of the Integrated CDP (planning) process each year of the actual funds allocated for each commune.

 In general the CDF for a standard commune for one year is:

            Component                             Standard Commune             Small Commune

·             Economic Component:           VND 150 million                      VND 75 million

·             Social Component:                 VND 150 million                      VND 75 million

·             Infrastructure Component:    VND 330 million                      VND 200 million

·             VSCF Support Component:    VND 10 million per VSCF.        VND 10m per VSCF

  Disbursement

CDF funds are disbursed to the Commune in one of two different bank accounts:

(i)                  VBARD/BSP Account: Each commune opens an account with the district VBARD/BSP to use for the economic component, social component and the VSCF support component of the CDF.

(ii)                State Treasury Account: Each commune will open and operate an account in their district State Treasury to use for the infrastructure component of the CDF.