Decision No. 2414/QD-TTg dated December 11, 2013 of the Prime Minister on adjusting list, schedule of several power projects and providing for a few of special regulations and policies for investment in high priority power works during 2013- 2020

THE PRIME MINISTER

Decision No.2414/QD-TTg dated December 11, 2013 of the Prime Minister on adjusting list, schedule of several power projects and providing for a few of special regulations and policies for investment in high priority power works during 2013- 2020

Pursuant to the December 25, 2001 Law on Organization of Government;

Pursuant to the November 26, 2003 Law on Construction;

Pursuant to the December 03, 2004 Law on Electricity; the November 20, 2012 Law on amending and supplementing a number of articles of Law on Electricity;

Pursuant to Law on bidding, Law amending and supplementing several articles of laws related to investment in capital construction; Government’s Decree No. 85/2009/ND-CP dated October 15, 2009, guiding implementation of Law on bidding and the selection of contractors under the Law on Construction;

Pursuant to the Government’s Decree No. 12/2009/ND-CP dated February 10, 2009, on managing of investment projects on the construction of works, the Government’s Decree No. 83/2009/ND-CP dated October 15, 2009, on amending and supplementing several articles of the Government s Decree no. 12/2009/ND-CP of February 12, 2009, on management of work construction investment projects;

Pursuant to the Government’s Resolution No. 104/NQ-CP dated September 06, 2013;

Pursuant to Decision No. 1208/QD-TTg dated July 21, 2011 of the Prime Minister approving the national master plan on power development during 2011-2020 with consideration till 2030;

At the proposal of Minister of Industry and Trade,

DECIDES:

Article 1.To adjust list of a few of projects on power source and grid during 2013 – 2020 and provide for a few special regulations and policies for investment in construction of the urgent power projects aiming to satisfy the power need during 2014 – 2020 and period after 2020.

Article 2.To adjust list and schedule of putting into operation of a few of projects on power source and grid by 2020 as follows:

a) Not to perform balance before 2020 for the power source projects: Projects on power import and projects on coal-burning thermal-power plants which have not yet confirmed the schedule of implementation.

b) Projects of Thermal-power plant in the O Mon Power Center are put synchronously into project on bringing gas from the B lot to shore.

c) To supplement projects to the power planning VII:

- Adjusting capacity of project on Cam Pha Thermal-power plant 3 from capacity of 2x135 MW up to capacity of 2x220 MW, putting into operation in 2019.

- The Pleiku 500kV switching station 2.

d) Projects on Hydro-power plant, projects on power source using renewable energy do not belong to scope of adjustment of schedule and list stated in this Decision.

The list and schedule to put projects on Thermal-power plant by 2020 into operation are prescribed in Annex enclosed with this Decision.

Article 3.The urgent power projects which are performed construction investment during 2014 – 2020 and allowed to apply the special regulations and policies in this Decision include the following projects:

1. Projects on Thermal-power plants such as: Long Phu 1, Vinh Tan 4, Duyen Hai 3 expanded and the Pleiku 500 kV switching station 2.

2. The urgent works of power source and grid already approved by the Prime Minister according to proposals of the Ministry of Industry and Trade.

Article 4.The special regulations and policies applied to the urgent power projects:

1. The urgent power projects are projects meeting the following criteria:

- Projects of power source and grid that must put into operation previously to prevent overloading for an area of Power grid or to offset the power source capacity volume lacked due to the schedule delay of other power projects.

- The projects on power grid that need to be invested previously in order to ensure the synchronism with projects on power source or that have important role in regulating the capacity of power source among zones.

2. Regarding preparation for project investment

a) Investors are allowed to apply form of appointment of domestic advisory contractor for the following affairs: Service bidding packages of advisory for making investment project, advisory for verification, appraisal; bidding packages related to the work of compensation and resettlement; bidding packages of making, verifying, appraising technical design; bidding packages of advisory for making the social-environment report and supervision advisory during the course of implementation of projects.

The orders of and procedures for appointment of bidding packages mentioned above shall comply with Law on bidding and documents guiding implementation.

b) If the domestic main advisory contractor needs assistance of foreign consultants, cost for hiring foreign consultants must be clearly defined in contract signed between the investor and the domestic main advisory contractor.

c) Investors of projects are allowed to approve the investment projects when they have the following conditions:

- Plan on mobilizing capital for project (Already had the principle agreements on capital supply from credit institutions).

- Register for satisfaction of environmental standards as prescribed.

d) For urgent projects on power source, together with the course of appraisal for approving the investment project, the investors are allowed to proactive organize the making, appraisal and approval of technical design and carry out the previous construction of auxiliary items of projects, including: Traffic infrastructure constructions to connect to premises of project; the work of leveling premises of plant; system of electricity and water supply for construction; the information and communication system; auxiliary facilities; the initial housing and working area; compensation for ground clearance and compensation for population relocation and resettlement; system of observation, measurement and mine sweeping. Estimate of the approved work items, investors are allowed to sum up and include in total of investment level and total estimate of project.

dd) For the urgent projects on power grid for transmission, the investors are allowed to carry out a part of the work of survey and advisory for making technical design together with the course of appraisal, approval for investment projects, provided that the parts of work performed previously must be suitable with scope of line plan, proposals on implementation according to written line agreement of the provincial People’s Committee where project is carried out.

3. Regarding the course of implementing the technical design:

a) The investors are allowed to carry out previously a few of contents of survey, advisory for making technical design during appraisal and approval of the investment project. The investor shall be responsible for the rationality of advisory contents carried out previously in line with the overall volume of technical design of project.

b) For the urgent projects on power source, they are allowed to put implementation of technical design into the scope of work of EPC bidding package, the investors shall be responsible for organization of appraisal, approval of technical design; appraisal and approval of design of construction drawings.

4. Regarding compensation and ground clearance:

a) Investors are allowed to appoint consultancy unit having capability and experiences to make the planning on total ground together with the making of the investment project so that as soon as the investment project and planning on total ground have been approved the provincial People’s Committee where the project will be carried out may perform the work of compensation and ground clearance.

Investors are allowed to grant advance capital for ground clearance for province and make agreements on the mechanism to refund this advance capital with the provincial People’s Committees where projects are carried out.

b) For the urgent projects on power transmission, investors are allowed to appoint consultancy unit having capability to perform the work of setting up landmarks of corridors of lines as soon as the competent agencies have approved for the sub-projects on compensation, ground clearance and resettlement and the provincial People’s Committees where projects are carried out have granted ground for lines.

c) Investors are allowed to make, submit to competent authorities for approval of the master plans (or investment projects) on compensation, support for population relocation and resettlement (for projects on power source), to make and submit for approval of the sub-projects on compensation, ground clearance, support for population relocation and resettlement (for projects on power grid for transmission). After sub-projects or the master plan on population relocation have been approved, the investors shall hand over for the provincial People s Committees where projects are carried out to organize implementation of projects and grant land, corridors of lines for stations and transmission lines, supplement the land fund to perform projects on power source and transmission into planning on land use as the basis for coordinating the plans, avoid the overlapping with other plans in localities.

5. Regarding selection of contractors

a) The competent persons shall decide and take responsibility for appointment of bidding packages of the urgent power projects as prescribed in Decision No. 50/2012/QD-TTg dated November 09, 2012 of the Prime Minister.

b) For new projects, but having the same technology and parameters as main equipment of similar projects which have constructed ago not exceeding 5 recently years, persons competent to or authorized persons to decide investment shall decide on direct negotiation with contractors that have capability to perform the previous projects so as to sign contract for new project, or decide on biding to select contractors as prescribed. Case of direct negotiation, price of bidding package do not exceed price of bidding package of and quality of equipment is not lower than quality of equipment of the similar project already performed, and ensuring to satisfy the schedule as required.

c) The general contractor who is selected by investor for implementation of an urgent power project is entitled to appoint subcontractors after unifying with investor (except for contractors banned participating in bid activity as prescribed in Article 65 of the Government’s Decree No. 85/2009/ND-CP dated October 15, 2009).

6. Regarding the contractual price of the urgent power source projects:

a) The EPC-contract price of the urgent power plant projects is performed under the method:

- Price and cost for import equipment and service are lump-sum price;

- Price for domestic construction, installment, processing and manufacture is price adjusted in case of having changes on exchange rate, labor unit price and price of other input raw materials, ensuring reasonable cost for implementation of project.

b) Persons competent to or persons authorized to decide investment are entitled to decide the contractual price on principles in which the values of the signed contracts are basis for negotiation, but not exceeding the approved price of bidding package and being allowed to adjust in case of having one of the following reasons:

- Change of scope of provision of supplies, equipment, services or change of volume of work, including price reduction due to expansion of contract.

- Other reasons as prescribed by law.

c) The competent persons shall, on the basis of Point a, this Clause, decide and take responsibility for adjustment of total investment level of projects.

7. Regarding the capital arrangement for projects

a) The Ministry of Finance shall make guarantee for investors to borrow foreign capital as prescribed in Law on Public Debt Management and the Government’s Decree No. 15/2011/ND-CP dated February 16, 2011, on granting and managing guarantee of the Government.

b) The domestic commercial loans:

- The State Bank of Vietnam shall direct the domestic commercial banks to allocate full capital to provide loans to investors at the practical request of each project.

- Credit institutions are allowed to provide loans exceeding 15% of own capital of bank for a customer and exceeding 25% of own capital for group of concerned customers when consider to provide loans for projects under list of the urgent power projects. To assign the State Bank of Vietnam to consider, approve the specific credit extension level according to requests of commercial banks for each project.

- The domestic credit institutions are allowed to be exempted from appraisal of economic and financial efficiency for each separate project on power transmission when consider to provide loans to investors for implementation of the urgent power transmission projects.

Article 5.Responsibilities of investors and concerned Groups in implementation of this Decision

1. Members Councils of Groups, persons competent to or persons authorized to decide on investment shall be responsible for their decision before law, ensure for the urgent power projects to be performed in accordance with this Decision and relevant legislations aiming to put projects into operation on schedule, ensuring quality of works and investment efficiency.

2. The Vietnam Electricity Group shall:

- Direct the power plants and the national power transmission Corporation in strengthening the work of repairing and maintaining power plants, works of power transmission in the Southern zone in order to ensure mobilization with high capacity and number of hours during 2017 and 2019.

- Concentrate on directing the development of 220 kV and 500 kV transmission grids synchronously with the schedule of putting projects on power plant into operation, increasing the reliability of power supply, reduce the electricity loss, and ensure the efficient mobilization of power sources in all operation modes of electrical system.

- Annually, the Group shall assume the prime responsibility for, and coordinate with investors of projects in reviewing progress of projects on power source and grid in list approved in the power planning VII, organizing to prepare the list of urgent power projects, enclosed with descriptions, explanations, send to the Ministry of Industry and Trade for appraisal, and submit to the Prime Minister for consideration and decision.

- For project of the Vinh Tan Thermal-power plant 4: Concentrate on finishing the negotiation with the consortium of contractors and concerned partners on EPC contract and contract of borrowing. The Members Council of the Group shall, base on directions in document No. 38/TTg-KTN dated June 14, 2013, of the Prime Minister, decide and take responsibility for approving the result of bid consideration and EPC contract.

- For the expended project of Coastal Thermal-power plant 3: The Group shall prepare and issue dossier of requirements of EPC bidding package, invite contractors, consortium of contractors which have capability to arrange capital for direct negotiation, meeting the requirements on quality, progress and efficiency.

3. The Vietnam Oil and Gas Group shall:

a) Maintain and supply stabilized existing gas source; proactively find, negotiate development of new gas source for need of the national economy and for electricity production.

b) For project on Long Phu Thermal-power plant 1: Members Council of the Group shall decide the appointment of the contractor partnership to act as the EPC general contractor; divide the work for contractors of partnership; ensure quality, progress and efficiency of project.

4. The Vietnam Coal - Mineral Industries Group shall: Accelerate completion of the coal transshipment port as basis for importing coal for the electricity centers in zone of Mekong Delta.

Article 6.Responsibilities of Ministries, sectors and localities:

1. The Ministry of Industry and Trade shall:

-Be responsible for presiding over inspecting and urging investors of the urgent power projects to comply with provisions of this Decision and other concerned legislations; timely solve difficulties, problems under its functions and competence during implementation. In case of beyond its competence, report to the Prime Minister for consideration and decision.

-Appraise, approve supplementation of list, and correct the scale and progress of the transmission power grid works, the works connecting transmission power grids to be synchronous with the power works mentioned in Article 2 of this Decision.

2. The Ministry of Transport shall: Expeditiously finish project on “Flow for ships with big tonnage entering Hau river’ to be synchronous with progress of finishing the urgent power projects at zone of Mekong river Delta.

3. The relevant Ministries and agencies shall, base on their functions and tasks, coordinate with the Ministry of Industry and Trade in monitoring, inspecting, urging, aiming to facilitate for investors in effective implementation of the urgent power projects; timely solve difficulties and problems under their competence, in case of falling beyond their competence, report to the Prime Minister for decision.

4. The provincial People’s Committees shall:

- Do as investor of sub-projects on compensation, support for population relocation and resettlement. To allocate full land fund in planning on land use of localities for the works of power source and grid under the electricity planning VII.

- To establish Councils of compensation, ground clearance of which presidents are leaders of People’s Committees at all levels, in order to organize implementation of sub-projects on compensation, ground clearance and population relocation, resettlement for the power projects on schedule, meet progress of investment so as to put the power projects into operation.

- To review, sum up needs of land use of projects on power source and grid in planning and plans on land use of localities to submit them to competent authorities for consideration and approval as the basis for land recovery, change of land use purpose, land handing, preparation and submission for approving plans on compensation, support and resettlement for projects.

Article 7.This Decision takes effect on the day of its signing.

Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, chairmen of the provincial People’s Committees, Presidents of Members Council, General Directors of the State Groups and Corporations and heads of relevant agencies shall implement this Decision.

The Prime Minister

Nguyen Tan Dung

ANNEX

LIST OF THE THERMAL-POWER PROJECTS PUT INTO OPERATION DURING 2013 -2020
(Promulgated together with Decision No. 2414/QD-TTg dated December 11, 2013 of the Prime Minister)