Circular No. 1461/QD-TTg 2019 investment policies for Dung Quat I Mixed Gas Turbine Power Plant Project

DECISION
On approving investment policies
for Dung Quat I Mixed Gas Turbine Power Plant Project

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THE PRIME MINISTER

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the November 26, 2011 Law on Investment;

Pursuant to the June 19, 2015 Law on Organization of the Government

Pursuant to the Decree 118/2015/ND-CP dated November 12, 2015 of the Government on detailing and guiding the implementation of a number of articles of the Investment Law;

Pursuant to the Decree 59/2015/ND-CP dated June 18, 2015 of the Government on  management of construction investment projects and the Decree No. 42/2017/ND-CP dated April 05, 2017 of the Government on amendments to the Government's Decree No. 59/2015/ND-CP dated June 18, 2015 on management of construction investment projects;

Pursuant to the Decree No. 32/2015/ND-CP dated March 25, 2015 of the Government on the construction cost management;

Pursuant to the Prime Minister’s Decision No. 428/QD-TTG of July 21, 2011, approving the master plan for national power development in the 2011-2020 period, with considerations up to 2030;

Pursuant to the document No. 51/TTg-CN dated July 12, 2017 of the Government on general process of the Blue Whale Gas Project Chain;

At the proposal of the Vietnam Electricity and the assessment result of investment policy for 02 Mixed Gas Turbine Power Plant Project of Dung Quat I and Dung Quat III at the document No. 4955/BC-BKHDT-GSTDDT dated July 17, 2019 of the Ministry of Planning and Investment.

DECIDES:

Article 1. To approving investment policies for the Dung Quat I Mixed Gas Turbine Power Plant Project (Project) with the following contents:

1. Investor: Vietnam Electricity (EVN).

2. Name of the project: Dung Quat I Mixed Gas Turbine Power Plant Project.

3. Construction objectives: To supply sustainable electric source for the electric system of Central Region and nationwide; contribute to the assurance of energy security and safety electricity supply for the system and synchronize with the Blue Whale Gas Project Chain.

4. Investment construction scale:

- To invest in the construction of the combined cycle gas turbine power plant with the capacity of approximately 750MW;

- To invest in the construction of the shared technical items in Dung Quat Power Center.

5. Location:

- Dung Quat I Mixed Gas Turbine Power Plan in the Power Center in Binh Thanh commune, Binh Son district, Quang Ngai province;

- Official residences for operational management officers and employees of Dung Quat I and Dung Quat III Power Plant: at Van Tuong Urban Area, Binh Son district, Quang Ngai province.

6. Total investment (preliminary): VND 18,663.679 billion including the construction of the shared technical items in Dung Quat Power Plant Center.

7. Capital resource:

- Owner's equity of EVN: 20% of the Project’s total investment capital.

- Commercial loans of EVN: 80% of the Project’s total investment capital.

8. Implementation schedule:

The project shall be implemented synchronously with gas supply progress of the upstream project within the Blue Whale Gas Projects. The Project is expected to start in January 2021 and commercially operate in December 2023.

9. Investment incentives and support: comply with current law provisions.

Article 2. Organization of implementation

1. The Ministry of Industry and Trade shall:

a) Instruct the investors to carry out the upstream project clarifying the composition and parameters of the gases in order to ensure the progress and efficiency of investment of the whole Blue Whale Gas Projects.

b) Inspect, supervise and direct EVN in choosing appreciate engine configuration so as to ensure the capacity and efficiency of investment, while clarifying the technological issues of the project, especially MGT technology as the plant uses low calorific value gas and high inert gas exploited at the Blue Whale gas field.

c) Calculate the electricity selling price of the Project on the basis of complying with current regulations, ensuring the effectiveness of the Project and,

in principle, be allowed to transfer gas price to busbar electricity price and made a consumption mechanism for the upstream gas output according to the Prime Minister's conclusion in the Document No. 343/TB-VPCP dated September 27, 2019 of the Government Office.

d) To organize the performance of specialized State management over the Project in the course of implementing investment and management of exploitation and use according to law provisions.

2. Ministry of Natural Resources and Environment shall:

a) Support and provide guidance to the People's Committee of Quang Ngai province in land allocation, land lease and land use purpose transfer for implementing the Project in line with the land use plans approved by competent authorities according to law provisions on land.

b) Support and provide guidance to EVN in completing documents and implementing the environmental impact assessment procedures of the Project in accordance with law provisions on environmental protection.

c) Appraise and approve the environmental impact assessment report in case it is on the approval schedule of the investment project.

3. Committee for Management of State Capital at Enterprises shall:

a) Direct and provide guidance to EVN to carry out the next steps of investment preparation and construction investment according to the current regulations, ensuring the Project's objectives, progress, effectiveness and safety the process of construction and operation.

b) Inspect, supervise and clarify EVN's capital mobilization (equity capital and borrowed capital) according to the Project’s implementation schedule; based on which, directing EVN to formulate financial plans for the implementation of the project, ensuring the efficiency of investment, use, maintenance and development of state capital in accordance with law provisions.

c) Appraise and approve the Project, ensuring the general progress of the whole Blue Whale Gas Projects.

d) Organize the inspection and supervision of the entire Project implementation process, promptly handle or propose to handle arising problems, control risks, ensure feasibility, objectives and investment effectiveness of the Project.

4. Quang Ngai Provincial People's Committee shall:

a) Take responsibility for the contents of evaluation of Project dossiers in documents submitted to the Ministry of Planning and Investment; 

check the investors’ financial ability to ensure that the investors shall be eligible for land allocation, land lease by the State and land use purpose transfer in carrying out the Project in accordance with the schedule and law provisions on investment and land; take procedures for security deposits in accordance with Article 42 of the Law on Investment and Article 27 of the Government's Decree No. 118/2015/ND-CP dated November 12, 2015 detailing and guiding the implementation of a number of articles of Law on Investment.

b) Inspect and supervise the implementation of the Project in accordance with law provisions, directions of the Prime Minister and recommendations of the concerned ministries and agencies, including inspecting and supervising EVN’s capital mobilization (equity capital and borrowed capital) in line with the Project’s implementation progress.

c) Coordinate with the Ministry of Natural Resources and Environment to direct EVN to implement environmental impact assessment procedures in accordance with law provisions on environmental protection.

d) Instruct relevant agencies of Quang Ngai province to coordinate with EVN in promptly removing difficulties and solving problems in the curse of implementing the Project.

dd) Assume the prime responsibility for conducting compensation, ground clearance and handover of cleared land to EVN as scheduled.

5. Vietnam Electricity:

a) Take responsibility for the information and data reported in the Project dossiers as well as the efficiency of investment, use, maintenance and development of state capital invested in the Project in accordance with law provisions.

b) Elaborate the feasibility study report, in which further research is needed to refine the scale, schedule, configuration, key technical specifications as well as the feasibility and effectiveness of the Project in accordance with current regulations.

c) Organizing the implementation and management of the Project strictly according to the provisions of law.

d) Be allowed to account the expenditures for electricity production of the Dung Quat III MGT Power Plant into the total expenditures of the parent company.

Article 3. Implementation provisions

1. This Decision takes effect on the signing date.

2.  The Ministers of Industry and Trade; Planning and Investment; Finance; Construction; Natural Resources and Environment, the Presidents of the Committee for Management of State Capital at Enterprises and the Quang Ngai Provincial People's Committee, the Chairman of Members’ Council of Vietnam Electricity, concerned agencies and units shall take responsibilities for implementing this Decision./.

For Prime Minister

The Deputy Prime Minister

Trinh Dinh Dung