Circular No. 11/2008/TT-BCT dated October 22, 2008 of the Ministry of Industry and Trade guiding the order of and procedures for electricity purchase and sale with foreign partners

CIRCULAR

GUIDING THE ORDER OF AND PROCEDURES FOR ELECTRICITY PURCHASE AND SALE WITH FOREIGN PARTNERS

Pursuant to the Government's Decree No. 189/2007/ND-CP of December 27, 2007, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the December 3, 2004 Electricity Law;

Pursuant to the Government's Decree No. 105/2005/ND-CP of August 17, 2005, detailing and guiding the implementation of a number of articles of the Electricity Law;

The Ministry of Industry and Trade guides the making of dossiers of, and the order of and procedures for, electricity purchase and sale with foreign partners as follows:

I. GOVERNING SCOPE AND SUBJECTS OF APPLICATION

1. This Circular guides the making of dossiers of, and the order of and procedures for. electricity purchase and sale with foreign partners applicable to electricity import and export projects and electricity units.

2. This Circular does not apply to electricity users in border areas that directly purchase electricity of a voltage of 0.4kV from foreign partners not through the national power grid for daily-life use or business and production activities consuming electricity at an output of under 50 kVA.

II. CONTENTS OF A DOSSIER OF REQUEST FOR APPROVAL OF ELECTRICITY PURCHASE OR SALE WITH A FOREIGN PARTNER

Electricity purchase and sale with foreign partners is subject to policy approval. Plans on electricity purchase and sale with foreign partners must be consistent with the approved electricity development planning.

A dossier of electricity purchase or sale with a foreign partner comprises:

1. A dossier of request for approval of the policy on the purchase or sale of electricity of a voltage of  110kV or more from or to a foreign partner

a/ The electricity unit's report of request for approval of the policy on electricity purchase or sale with a foreign partner.

b/ The foreign partner's written request for electricity purchase or written approval of electricity sale.

c/ A plan on electricity purchase or sale with a foreign partner (5 sets), comprising:

- A brief description of the current conditions of the regional power grid;

- Annual needs for electricity (output electricity energy, annual load diagram, typical day) to be purchased from or sold to a foreign partner in the duration conformable to that of the approved national or local electricity development planning:

- A plan on power grid connection between Vietnam's power system and a power grid of the foreign partner that will purchase or sell electricity:

+ Tne regional power grid development piar, already approved by a competent authority:

+ The power grid connection plan, indicating the output, electricity energy, projected time of electricity purchase and sale, connection points, places for installing electricity meters, voltage, reflection of the electricity purchase or sale plan on a map, and the regional power grid diagram:

- Analysis and preliminary selection of technologies and techniques, the ground clearance and resettlement plan (if any), the project's impacts on the eco-environment, fire and explosion prevention and fighting, security and defense;

- The form of investment, preliminary determination of the construction volume, total investment level, project implementation duration, Vietnamese partner's plan to raise capital based on the project's implementation progress and socio economic efficiency and investment capital phasing, if any;

- Conclusions and recommendations on implementation solutions.

d/ If the electricity unit uses the power grid of another power grid-managing unit, the latter's written opinion is required.

2. A dossier of request for approval of the policy on the purchase or sale of electricity of a voltage of 35kV or less from or to a foreign partner

a/ The electricity unit's report of request for approval of the policy on electricity purchase or sale with a foreign partner.

b/ The foreign partner's written request for electricity purchase or written approval of electricity sale.

c/ A plan on electricity purchase or sale with a foreign partner (5 sets), comprising:

- A brief description of the current conditions of the regional power grid;

- Annual needs for electricity (output electricity energy) projected to be purchased or sold with foreign partners in the duration conformable to that of the approved local electricity development planning;

- A plan on power grid connection between Vietnam's power system and a power grid of the foreign partner that will purchase or sell electricity.

+ The regional power grid development plan already approved by a competent authority;

+ The power grid connection plan, indicating the output, electricity energy, projected time of electricity purchase and sale, connection points, places for installing electricity meters, voltage, reflection of the electricity purchase and sale option on a map, and the regional power grid diagram;

- The projected construction volume, the Vietnamese partner's investment capital;

- Conclusions and recommendations on implementation solutions.

d/ If the electricity unit uses the power grid of another power grid-managing unit, the latter's written opinion is required.

III. ORDER OF EVALUATING AND APPROVING POLICIES ON ELECTRICITY PURCHASE AND SALE WITH FOREIGN PARTNERS

1. For purchase or sale of electricity of a voltage of 110kV or more from or to foreign partners

a/ The electricity unit shall submit a dossier of request for approval of the policy on electricity purchase or sale from or to a foreign partner to the Electricity Regulatory Authority Department for evaluation.

b/ Within 5 working days after receiving the dossier, the Electricity Regulatory Authority Department shall notify the electricity unit in writing of the dossier's validity.

c/ Within 10 working days after receiving a complete and valid dossier, the Electricity Regulatory Authority Department shall organize evaluation of the dossier and gather concerned ministries' and branches' opinions on the plan on electricity purchase or sale with a foreign partner.

d/ When necessary, the electricity unit shall give explanations or the evaluation unit shall conduct field examination and assessment.

e/ Within 15 working days after receiving concerned ministries' and branches written official opinions on the plan on electricity purchase or sale with a foreign partner, the Electricity Regulatory Authority Department shall complete the evaluation report and submit it to the Minister of Industry and Trade for consideration and further submission to the Prime Minister for approval.

2. For purchase or sale of electricity of a voltage of 35kV or less from or to foreign partners

a/ The electricity unit shall submit a dossier of request for approval of the policy on electricity purchase or sale with a foreign partner to the Electricity Regulatory Authority Department for evaluation.

b/ Within 5 working days after receiving the dossier, the Electricity Regulatory Authority Department shall notify the electricity unit in writing of the dossier's validity.

c/ Within 30 working days after receiving a complete and valid dossier, the Electricity Regulatory Authority Department shall complete the evaluation report and submit it to the Minister of Industry and Trade for consideration and approval.

IV. IMPLEMENTATION PROVISIONS

1. This Circular takes effect 15 days after its publication in "CONG BAO."

2. The director of the Office, the chief inspector, directors of departments, and heads of bureaus of the Ministry, directors of provincial/municipal Industry and Trade Services, heads of concerned agencies, and electricity importers and exporters shall implement this Circular.

3. Problems arising in the course of implementation should be reported to the Ministry of Industry and Trade for supplementation and amendment as appropriate.