Decision No. 1460/QD-TTg 2019 investment policies of Dung Quat III Mixed Gas Turbine Power Plant Project

DECISION
Approvingtheinvestmentpolicies
of Dung Quat III Mixed Gas Turbine Power PlantProjectpolicy for
Dung Quat 3 Combined-Cycle Gas Turbine Power PlantProject

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THE PRIME MINISTER

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

Pursuant to the Law on Investment dated November 26, 2014;

Pursuant to theLawon Construction dated June 18, 2014Law;

Pursuant to the Government s Decree No. 118/2015/ND-CP dated November 12, 2015 detailing and guiding the implementation of a number of articles of the Law on Investment;

Pursuant to the Government s Decree No. 59/2015/ND-CP dated June 18, 2015 on management of construction investment projects and the Government s Decree No. 42/20 17/ND-CP dated April05, 2017 amending and supplementing a number of articles of the Government s Decree No. 59/2015/ND-CP dated June 18, 2015;

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

Pursuant to the Prime Minister s Decision No. 428/QD-TTg dated March 18, 2016on approving the adjusted master plan on national electricity development in the 2011-2020 period, with considerations up to 2030amending the National Electricity Development Planning for the period of 2011-2020 and the vision towards 2030;

Pursuant to the Prime Minister s Document No. 51/TTg-CN dated July 12, 2017 on overall progress of Blue Whale Gas Projects;

At the proposal of the Vietnam ElectricityGroupand based on results of investment evaluation over 02Mixed Gas Turbine Power Plant Projectscombined-cycle gas turbine power plant projects, namely Dung Quat1Iand Dung Quat 3III, intheDocument No. 4955/BC-BKHDT-GSTDDT datedJuly 17, 2019 of the Ministry of Planning and Investment.

DECIDESON:

Article 1. Approvinginvestment policies of Dung Quat III Mixed Gas Turbine Power Plant Project(Project)the investment project of Dung Quat 3 Combined-Cycle Gas Turbine Power Plantwith the main contents as follows:

1. Investor: Vietnam ElectricityGroup(EVN).

2. Project’s name:Dung Quat III Mixed Gas Turbine Power Plant ProjectDung Quat3Combined-Cycle Gas Turbine Power Plant.

3. Objectives of construction investment: To supply stable power sources for the electricity system of Central Region and the national electricity system, thus contributing to ensuring energy security and safety of electricity supply for the systems and promoting the development in line with the Blue Whale Gas Projects.

4. Scale of construction investment:constructingConstructingamixed gas turbinecombined-cycle gas turbine (CCGTMGT) power plant with a capacity of about 750MW.

5. Location:Iin Dung Quat Electricity Center located in Binh Thanh commune, Binh So district of Quang Ngai province;

6. Total investment (initial): VND 17,538.76 billion.

7. Capital:

- Owner s equity of EVN: 20% of the totalprojectProject’sinvestmentcapital.

- EVN’s commercial loans: 80% of the totalprojectProject’sinvestmentcapital.

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 2022 and commercially operate in December 2024.

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

Article 2. Organization of implementation

1. Ministry of Industry and Trade shall:

a) Instruct the investors to carry out the upstreamprojectProjectclarifying 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 theprojectProject, especiallyCCGTMGTtechnology 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 thePproject 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 madea consumption mechanism for the upstream gas output according to the Prime Minister s conclusion intheDocument 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 thePproject 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 thePproject 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 theproject sProject sobjectives, 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 thePproject’s implementation schedule; based on which, directing EVN to formulate financial plans for the implementation of thepproject, ensuring the efficiency of investment, use, maintenance and development of state capital in accordance with law provisions.

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

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

4. Quang Ngai Provincial People s Committee shall:

a) Take responsibility for the contents of evaluation of pProject dossiers in documents submitted to the Ministry of Planning and Investment; cCheck 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; tTake 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 thePproject 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 thePproject’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 thepProject.

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

5. Vietnam ElectricityGroupshall:

a) Take responsibility for the information and data reported in the Pproject 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 thePproject in accordance with current regulations.

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

d) Be allowed to account the expenditures for electricity production of the Dung Quat2IIICCGTMGTPower Plant into the total expenditures of the parent company.

Article 3.Provisions of implementationImplementation provisions

1. This Decision takes effect from thedate of signingsigning 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 ElectricityGroup, concerned agencies and units shall take responsibilities for implementing this Decision./.