OPM provided a senior consultant for the appraisal of a project document for the second phase of the Government of Finland’s programme of support to Thua Thien Hue Province in central Vietnam. The mission involved a substantial revision of the draft programme design. The €12 million Phase II programme for 2004/08 extended the Phase I programme in one district of Hue to three districts. It also included a new emphasis on administrative reform. The revised Phase II programme retained some elements from Phase I, notably the Local Planning Process and a budget-led small-scale infrastructure methodology, of significant potential importance to Vietnam in increasing the efficiency of constrained infrastructure budgets. The project credit fund applied in Phase I was deleted in favour of linking households to the banking system through the intermediated lending arrangements now common elsewhere in the country. A fully revised programme document was prepared and presented at de-briefing meetings with the provincial Peoples committee in Hue, the Embassy of Finland in Hanoi, and the Ministry of Foreign Affairs in Helsinki.