Circular 27/2024/TT-BCT forms of dossiers for bidding for selection of investors to implement projects on investment in energy works

CIRCULAR

Defining criteria for evaluation of bid dossiers and forms of dossiers for bidding for selection of investors to implement projects on investment in energy works

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Pursuant to the Government’s Decree No. 96/2022/ND-CP dated November 29, 2022, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Government’s Decree No. 26/2018/ND-CP dated February 28, 2018, on the Charter of organization and operation of the Vietnam Electricity;

Pursuant to the Government’s Decree No. 105/2024/ND-CP dated August 01, 2024, amending and supplementing a number of articles of the Government’s Decree No. 96/2022/ND-CP dated November 29, 2022, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade, and the Government’s Decree No. 26/2018/ND-CP dated February 28, 2018, on the Charter of organization and operation of the Vietnam Electricity;

Pursuant to the Electricity Law dated December 3, 2004;

Pursuant to the Law Amending and Supplementing a Number of Articles of the Electricity Law dated November 20, 2012;

Pursuant to the Law Amending and Supplementing a Number of Articles of Eleven Laws Relating to the Planning Law dated June 15, 2018;

Pursuant to the Law on Amending and Supplementing a Number of Articles of the Law on Public Investment, Law on Investment in the Form of Public-Private Partnership, Law on Investment, Housing Law, Bidding Law, Electricity Law, Law on Enterprises, Law on Excise Tax, and Law on Enforcement of Civil Judgments dated January 11, 2022;

Pursuant to the Government’s Decree No. 137/2013/ND-CP dated October 21, 2013, detailing a number of articles of the Electricity Law and the Law Amending and Supplementing a Number of Articles of the Electricity Law;

Pursuant to the Government’s Decree No. 115/2024/ND-CP dated September 16, 2024, on detailing a number of articles of and measures to implement the Bidding Law regarding selection of investors to implement land-using investment projects;

At the proposal of the Director of the Electricity and Renewable Energy Authority;

The Minister of Industry and Trade promulgates the Circular defining criteria for evaluation of bid dossiers and forms of dossiers for bidding for selection of investors to implement projects on investment in energy works.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular details:

1. Clause 2 Article 49 of the Government’s Decree No. 115/2024/ND-CP dated September 16, 2024, on detailing a number of articles of and measures to implement the Bidding Law regarding selection of investors to implement land-using investment projects (hereinafter referred to as Decree No. 115/2024/ND-CP) regarding standard for evaluation of sectoral and local development investment efficiency for projects on investment in energy works.

2. Point m Clause 1 Article 47 of Decree No. 115/2024/ND-CP regarding standard for technical evaluation in evaluation of business investment plans of investors implementing projects on investment in energy works.

3. Forms of dossiers for bidding for selection of investors to implement projects on investment in energy works.

Article 2. Subjects of application

1. Organizations and individuals involved in bidding for project investor selection as specified in Clause 6, Article 3 of Decree No. 137/2013/ND-CP dated October 21, 2013, on detailing a number of articles of the Electricity Law and the Law Amending and Supplementing a Number of Articles of the Electricity Law, which is supplemented in Clause 1, Article 70 of Decree No. 115/2024/ND-CP.

2. Organizations and individuals with activities of selecting investors to implement  projects on investment in energy works that are not subject to Clause 1 of this Article but choose to apply this Circular.

Article 3. Interpretation of terms

In this Circular, the terms below are construed as follows:

1. Power purchasers mean the Vietnam Electricity (or representative unit according to decentralization or authorization), the Northern Power Corporation, the Central Power Corporation, the Southern Power Corporation, Hanoi Power Corporation, Ho Chi Minh City Power Corporation.

2. Party inviting the expression of interest means an agency or unit under the Ministry of Industry and Trade; specialized agency, agency or unit under the provincial-level People's Committee, agency or unit of the Economic Zone Management Board (for projects implemented in economic zones); or the district-level People's Committee that is assigned to carry out the procedure for inviting the expression of interest.

3. Competent agency means an agency approving the investment policy in accordance with the investment law, or an agency deciding on organization of investor selection. For project of which the investment policy is approved by the National Assembly or the Prime Minister, the competent agency is the agency deciding on organization of investor selection.

4. Agencies deciding on organization of a bidding to select investors include the Ministry of Industry and Trade, provincial-level People’s Committees and Management Boards of Economic Zones, other agencies as prescribed by specialized laws.

Article 4. Formulation of notices of invitation for expression of interest, dossiers of invitation to expression of interest, bidding dossiers of projects on investment in energy works

1. Notices of invitation for expression of interest, dossiers of invitation to expression of interest shall be formulated using the form provided in Appendix I issued together with this Circular.

2. Bidding dossiers shall be made using the form defined in Appendix II issued together with this Circular, for projects for which open bidding or restricted bidding is organized according to the single-stage single-envelope method or two-stage single-envelope method, ensuring the compliance with the Law on Bidding dated June 23, 2023 and the Decree No. 115/2024/ND-CP.

3. Draft power purchase agreements shall be made on the following basis:

a) For thermal power plant projects using natural gas, liquefied natural gas (LNG), projects of hydroelectric power plants (excluding small-sized hydroelectric power plants), the draft power purchase agreements shall be prepared based on Circular No. 07/2024/TT-BCT dated April 12, 2024 of the Minister of Industry and Trade, on providing method to determine electricity generation prices and power purchase agreement.

b) For biomass power plant projects, except for power plants applying the electricity price mechanisms in documents issued by competent authorities, the draft power purchase agreements shall be prepared based on Circular No. 07/2024/TT-BCT dated April 12, 2024 of the Minister of Industry and Trade, on providing method to determine electricity generation prices and power purchase agreement.

c) For solar power plant projects, the draft power purchase agreements shall be prepared based on Circular No. 18/2020/TT-BCT dated July 17, 2020 of the Ministry of Industry and Trade, on the development of solar power projects and model power purchase and sale contracts applicable to solar power projects and its amending and supplementing circulars.

d) For wind power plant projects, the draft power purchase agreements shall be prepared based on Circular No. 02/2019/TT-BCT dated January 15, 2019 of the Minister of Industry and Trade, on providing the development of wind power projects and the model power purchase agreement applicable to wind power projects and its amending and supplementing circulars.

e) For biomass power plant projects implemented in accordance with the Prime Minister’s Decision No. 24/2014/QD-TTg of March 24, 2014, on support mechanisms for development of biomass power projects in Vietnam and the Prime Minister’s Decision No. 08/2020/QD-TTg dated March 5, 2020, on amending and supplementing a number of articles of the Prime Minister’s Decision No. 24/2014/QD-TTg of March 24, 2014, on support mechanisms for development of biomass power projects in Vietnam, the draft power purchase agreements shall be prepared based on Circular No. 16/2020/TT-BCT dated July 07, 2020, on amending and supplementing of a number of articles of the Circular No. 44/2015/TT-BCT dated December 09, 2015 of the Minister of Industry and Trade, on project development, the avoidable cost tariff and power purchase agreement template for biomass power projects.

g) For small-sized hydroelectric power plants, the draft power purchase agreements shall be prepared based on Circular No. 29/2019/TT-BCT dated November 15, 2019, on amending and supplementing a number of articles of Circular No. 32/2014/TT-BCT dated October 9, 2014 of the Minister of Industry and Trade, on defining procedures for formulation and application of the avoidable cost tariff and promulgation of power purchase agreement template for small-sized hydroelectric power plants and repealing Circular No. 06/2016/TT-BCT dated June 14, 2019 of the Minister of Industry and Trade, amending and supplementing a number of articles of Circular No. 32/2014/TT-BCT dated October 9, 2014 of the Minister of Industry and Trade.

4. In Appendices I and II issued together with this Circular, the italicized contents are for guidance and illustration purposes and are specified in the dossier of invitation to expression of interest, bidding dossier based on the scale, nature and specific conditions (if any) of each project.

5. The provision and posting of information on bidding for selection of investors to implement projects on investment in energy works on the National E-Procurement System shall comply with the Circular No. 15/2024/TT-BKHDT dated October 1, 2024 of the Ministry of Planning and Investment, on defining forms of dossiers for bidding for selection of investors to implement investment projects in the form of public-private partnership, business investment projects; provision and posting of information on investment in the form of public-private partnership and bidding for selection of investors on the National E-Procurement System.

Chapter II

STANDARDS FOR EVALUATION OF BID DOSSIERS

Article 5. Standards for technical evaluation of investors’ business investment plans

1. Comply with Point a, Point b and Point c Clause 1 Article 47 of Decree No. 115/2024/ND-CP.

2. Other standards for technical evaluation:

a) Requirements on the conformity of the investment plan proposed by the investor (including project location, scale, progress, diagram of spatial organization, construction investment phasing and main technical parameters) with the decision on approval of project investment policy for projects subject to investment policy approval or the document on approval of land-using investment project for projects not subject to investment policy approval.

a) Requirements on the conformity with basic parameters of power plants according to each type of plant.

Article 6. Standards for evaluation of electricity development investment efficiency

1. The ceiling price of electricity is made based on the project’s bidding dossier and below the ceiling price frame corresponding to the type of power source that is issued by the Ministry of Industry and Trade in the year of bidding.

2. The principle of establishing the ceiling price of electricity is agreed upon with the power purchasers in accordance with the law on electricity in the bidding documents on the basis of:

a) Rational and reasonable expenses of the investor during the entire economic life of the project; financial internal rate of return (IRR) not exceeding 12%.

b) The ceiling price of electricity does not included value-added tax, water resource tax, royalty for exploitation of water resources, forest environment service charge, environmental protection charge applicable to solid wastes and industrial wastewater (applicable to thermal power plants) and other taxes, charges and payables in cash according to the competent State agency’s regulations (except for taxes and charges already included in the electricity price plan).

Chapter III

ORGANIZATION OF IMPLEMENTATION

Article 7. Transitional provisions

1. For projects on investment in energy works for which bidding dossiers have not been distributed or the bids have not yet closed, the preparation of bidding documents must comply with this Circular.

2. For projects on investment in energy works for which the bids have not yet closed but by the effective date of this Circular, the results of investor selection have not been approved, the bidding documents shall continue to be evaluated based on the distributed bidding documents.

Article 8. Effect

1. This Circular takes effect on the signing date.

2. In the course of implementation, any difficulty arising related to this Circular should be reported to the Ministry of Industry and Trade for timely consideration and guidance./.

* All Appendices are not translated herein.