Notice No. 315/TB-VPCP dated September 16, 2015, conclusions from Deputy Prime Minister Hoang Trung Hai in the meeting on completion of feasibility study on the construction of transshipment terminal in Mekong Delta

THE GOVERNMENT OFFICE

Announcement No. 315/TB-VPCP dated September 16, 2015, conclusions from Deputy Prime Minister Hoang Trung Hai in the meeting on completion of feasibility study on the construction of transshipment terminal in Mekong Delta

On September 11, 2015, at the Office of the Government, the Deputy Prime Minister Hoang Trung Hai has chaired the meeting on the implementation and completion of the feasibility study on the investment and construction of the transshipment terminal in Mekong Delta. Attendants include leaders and representatives of the ministries and agencies of Transport, Natural Resources and Environment, Industry and Trade, Planning and Investment, Finance, Construction, Office of the Government, Vietnam Maritime Administration, Vinacomin, EVN and PVN. After listening to reports made by Vinacomin, Portcoast Engineering Consultant Joint-Stock Company (Portcoast) as well as suggestions from delegates, Deputy Prime Minister Hoang Trung Hai has come to following conclusions:

1. With the aim of ensuring general efficiency in the supply of coal to power stations within The Mekong Delta such as Duyen Hai, Long Phu and Song Hau power stations, right in 2010, the Prime Minister has assigned Vinacomin to study and select the location for the construction of coal transshipment terminal in this region. With supports from JICA, Vinacomin has proposed three locations of priority: Cai Mep (Ba Ria - Vung Tau Province), Duyen Hai (Tra Vinh Province) and Soai Riep (Tien Giang Province) from nine different locations studied in southern coasts. The Ministry of Industry and Trade has presided over and cooperated with relevant ministries, sectors and localities in verifying Vinacomin’s proposals and making the submission to the Prime Minister for granting approval for selection of Duyen Hai (Tra Vinh Province) as a location for investment and construction of coal transshipment terminal for thermo-power plants in the Mekong Delta. The Prime Minister has granted the approval and assigned Vinacomin to preside over and cooperate with relevant agencies in the establishment of the investment project. Wherefore, selection of Duyen Hai as a location for the coal transshipment terminal has been well implemented with participation of a lot of experienced consultants at home and abroad.

2. Right in 2013, Vinacomin has cooperated with JICA’s consultant in the establishment of feasibility study on investment and construction of coal transshipment terminal in Duyen Hai and now with Portcoast for completion. To speed up progress of the Project, Vinacomin shall cooperate with Portcoast and relevant agencies in completing the feasibility study and making the submission to competent authorities for approval in January 2016. In case of need, the pre-feasibility study shall be established on the basis of the completed feasibility study to comply with regulations.

3. The Project is closely associated with scale and progress of power plant projects in the region and infrastructure projects implemented by lots of investors: ports and dykes for Duyen Hai Power Station, navigable channel projects for ships of large DWT entering Hau River, Since coordination and comprehensive development of the projects are vital, relevant ministries, sectors, localities and agencies should carry out following duties:

a) The Ministry of Industry and Trade

- Preside over and direct Vinacomin to complete feasibility study of the Project; organize verification and grant approval as prescribed;

- Prepare invitation for bid for the selection of an investor of the Project in the form of Public-Private Partnerships as prescribed in the Government’s Decree No. 15/2015/ND-CP. Any investor who is selected for the implementation of the Project must return all the expenses for the project preparations and other relevant expenses to Vinacomin.

- Direct consultants, PVN, and EVN to check and supply information about coal-fired power plants in The Mekong Delta to Vinacomin and Project Establishing Consultant as requested.

- Apart from the projects that have been put into operation and are under construction: Duyen Hai, Song Hau, Long Phu (Duyen Hai 1, Duyen Hai 3, expanded Duyen Hai 3, Song Hau 1, Long Phu 1),

+ Study transport capacity of waterway routes through Dinh An gate, Quan Chanh Bo Channel; clarify capacity of supply of coal to thermo-power plant projects of Song Hau 3, Long Phu to come up with alternatives in case the supply of coal is unfeasible;

+ Preside over and direct relevant units to promptly complete negotiations on a suite of BOT contracts (BOT, PPA and land lease agreement...) Ensure Song Hau 2 and Long Phu 2 BOT projects are put into operation as agreed with the investors;

- Direct EVN and PVN to coordinate and unify plans for using coal terminals of Vinh Tan and Duyen Hai power stations for transshipment and supply of coal to Long Phu 1 and Song Hau 1 power stations during the time the coal transshipment terminal in the Mekong Delta is yet to be put into operation.

b) The Ministry of Transport:

- Direct marine project management board to speed up the construction of South Dyke of Duyen Hai coal terminal to reduce alluvial deposits during northeast wind season from October 2015 to March 2016;

- Direct relevant agencies to check and supply information about flow of goods (other than coal) transported on waterway routes in the Mekong Delta to Vinacomin and Project Establishment Consultant;

c) Vinacomin

- Promptly sign contracts with Portcoast to be able to complete the feasibility study on the Project in January 2016; in reliance on research results from JICA and Portcoast in related projects in the region, the feasibility study should include information according to applicable regulations of which the followings must be clarified:

+ Forecasts about demands for goods (coal and general cargo) through ports and navigable channels (international and domestic) by 2020, 2030 and 2050;

+ Economic - technical calculation for selection of appropriate plans: (i) inside area of the coal terminal of Duyen Hai Power Station; offshore (with and without dykes) and combination (first phase: inside area of the terminal, second phase: offshore (outside area of the terminal) (ii) locations of coal storage and arrangement of band conveyors...

+ Calculation of total investment and operation costs through stages as the basis for the Project’s economic and financial analysis, and calculation of cost price of a ton of coal transshipped through terminals over various stages;

+ Proposals for plans and capital sources for implementation of the Project

+ Maximum exploitation and appropriate use of existing and under-construction works at coal terminals of Duyen Hai Power Station; Construction of transshipment terminal should not affect the construction and operation of the works and power plants belonging to Duyen Hai Power Station.

- Vinacomin must report to the Prime Minister results of studying abovementioned issues at the end of November 2015 for consideration and reporting to the Standing Government at the beginning of December 2015. Based on conclusions from the Standing Government, Vinacomin shall complete the Project and make the submission to competent authorities for verification and approval in January 2016.

d) EVN and PVN

- Promptly complete signing of contracts for supply and transport of coal to power plants for which EVN and PVN are the investor;

- Coordinate to study plans for using coal terminals of Vinh Tan and Duyen Hai power stations for transshipment of coal to Long Phu 1 and Song Hau 1 power stations;

- EVN should promptly carry out negotiations on power purchase agreement (PPA) belonging to Song Hau 2, Long Phu 2 BOT thermo-power plant projects, then make the submission to the Ministry of Industry and Trade for making checks, ensuring uniformity across the contracts in the suite of BOT contracts.

This Notice is hereby sent to relevant ministries, sectors, localities and agencies for execution. /.

For the Minister, Chairman

The Deputy Chairman

Nguyen Cao Luc