VietnameseDecision No. 30/2006/QD-BCN dated August 31, 2006 of the Ministry of Industry promulgating the Regulation on investment and construction management applicable to independent power projects
ATTRIBUTE
Decision No. 30/2006/QD-BCN dated August 31, 2006 of the Ministry of Industry promulgating the Regulation on investment and construction management applicable to independent power projects
| Issuing body: | Ministry of Industry | Effective date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Official number: | 30/2006/QD-BCN | Signer: | Hoang Trung Hai |
| Type: | Decision | Expiry date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Issuing date: | 31/08/2006 | Effect status: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Fields: | Construction , Industry , Investment |
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THE MINISTRY OF INDUSTRY ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------- |
No: 30/2006/QD-BCN | Hanoi, August 31, 2006 |
DECISION
PROMULGATING THE REGULATION ON INVESTMENT AND CONSTRUCTION MANAGEMENT APPLICABLE TO INDEPENDENT POWER PROJECTS
THE MINISTER OF INDUSTRY
Pursuant to the Government's Decree No. 55/2003/ND-CP of May 28, 2003, on the functions, tasks, powers and organizational structure of the Ministry of Industry;
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;
Pursuant to legal provisions on investment, construction and bidding;
At the proposal of the director of the Energy and Petroleum Department,
DECIDES:
Article 1.- To promulgate together with this Decision the Regulation on investment and construction management applicable to independent power projects.
Article 2.- This Decision shall take effect 15 days after its publication in "CONG BAO" and replace the Industry Minister's Decision No. 50/2002/QD-BCN of November 25, 2002, promulgating the Regulation on investment and construction management applicable to independent power projects.
Article 3.- Ministries, ministerial-level agencies, government-attached agencies, provincial/municipal People's Committees, heads of agencies and units, and concerned individuals shall have to implement this Decision.
MINISTER OF INDUSTRY Hoang Trung Hai |
REGULATION
ON INVESTMENT AND CONSTRUCTION MANAGEMENT APPLICABLE TO INDEPENDENT POWER PROJECTS
(Promulgated together with the Industry Minister's Decision No. 30/2006/QD-BCN of August 31, 2006)
(Promulgated together with the Industry Minister's Decision No. 30/2006/QD-BCN of August 31, 2006)
Chapter I
GENERAL PROVISIONS
Article 1.- Governing scope and subjects of application
1. This Document provides for the selection of investors, preparation for, appraisal, approval and execution of, investment projects, and investment management, applicable to independent power projects.
2. This Regulation applies to all organizations and individuals that invest in independent power projects.
Article 2.- Independent power projects
1. Independent power project (IPP) means an investment project which is not funded with state budget capital on the creation of the source of power for investment, exploitation and sale under legal provisions on electricity.
2. IPPs shall be invested in the forms of build-operate-transfer (BOT), build-own-operate (BOO) or other forms as provided for by law.
Article 3.- Investment in IPPs
1. Investments in IPPs must conform with electricity development plannings approved by competent agencies. Projects not yet included in such plannings must be approved by agencies with planning-approving competence before their investment preparation is made.
2. The competence to approve electricity development plannings shall comply with the provisions of the Electricity Law. For plannings on small-sized hydropower plants, the Ministry of Industry shall approve the national planning while provincial People's Committees shall approve their local plannings after consulting the Ministry of Industry.
3. The State shall manage IPPs in terms of investment undertakings, schedule and scope in accordance with legal provisions on construction investment.
4. Agencies competent to license investment in IPPs are those designated under the law on investment and construction management.
Chapter II
SELECTION OF INVESTORS, PREPARATION FOR INVESTMENT AND APPRAISAL AND APPROVAL OF INVESTMENT PROJECTS
Article 4.- Selection of investors
1. In order to ensure the efficiency and sustainability of projects, the selection of investors for execution of IPPs shall be carried out through bidding. The order of bidding shall comply with legal provisions on bidding.
2. After electricity development plannings are approved, the Ministry of Industry shall publicize the national electricity development planning and the national planning on medium- and small-sized hydropower plants; provincial/municipal People's Committees shall publicize provincial and district plannings on electricity development and provincial plannings on medium- and small-sized hydropower plants. Based on the list of IPPs calling for investment and the list of domestic and foreign organizations and individuals registering to be investors, agencies competent to license investment defined in Clause 4, Article 3 of this Regulation shall organize bidding to select investors for project development and submit bidding results for approval according to regulations.
3. For special cases such as small-sized projects; projects aiming to supply electricity for deep-lying and remote areas and difficulty-hit areas; projects for which there is only one registering investor or for other plausible reasons, agencies competent to license investment defined in Clause 4, Article 3 of this Regulation shall decide on the selection of investors through appointment of contractors.
Article 5.- Registration for participation in investment projects
1. Organizations and individuals that register for investment in IPPs shall have to make and submit to competent agencies investment reports, for group-A projects, or investment application reports, for group-B and group-C projects, for the latter to permit investment research and then investment.
2. Investment reports and investment application reports submitted to investment licensing agencies shall comprise:
a/ For group-A projects: Investment reports shall be compiled in accordance with legal provisions on management of investment projects on the construction of works.
b/ For other projects:
- The investor's written request for making investment;
- Basic information on the investor: Documents on the investor's legal capacity, business registration, diagram of the organizational apparatus, key personnel, project execution experience, and financial and technical capability, enumerating projects which the investor has executed (including industrial projects and power projects) over the past five years, and enterprise's settlement/audit reports of the last three years. The investor shall have to bear responsibility for the accuracy of declared information.
- Preliminary information on the registered project: Construction location; project purposes; main parameters on the capacity, investment capital, time of commission, contents related to branch and local plannings, the estimated schedule for project execution, compensation volume, population relocation, and methods of investment management, operation, business and transfer of the project (if any).
- The written agreement on the purchase of electricity by the Electricity of Vietnam or electricity wholesale or retail units.
- For projects falling beyond the competence of provinces, the written approval of the provincial People's Committee shall be required.
- Sources of capital to be mobilized for the execution of the project and loan commitments of credit institutions or banks.
- The investors' capital must account for least 30% of the total capital. In special cases, this rate shall be decided by competent agencies but must not be lower than 20%.
3. Time limit for agencies to reply to investment reports or investment application reports of investors:
a/ For group-A projects: Within 30 days the Ministry of Industry shall examine and propose the Prime Minister to license investment.
b/ For other projects: Within 20 days.
4. IPP investors shall be allowed to formulate investment projects according to regulations only after competent agencies have licensed the investment.
5. The contents of investment projects shall comply with the provisions of law, in which the connection to the national power system, measurement and control equipment shall be effected as agreed with the Electricity of Vietnam.
Article 6.- Appraisal and approval of investment projects
1. Investors shall formulate, appraise and submit to competent agencies basic designs for appraisal according to the provisions of law.
2. The competence to appraise basic designs shall be as follows:
a/ The Ministry of Industry: Group-A projects and projects with the main work located in two or more provinces.
b/ Provincial/municipal Industry Services: The remaining group-B and -C projects.
3. Within 30 working days (for group-A projects) or 20 working days (for group-B and -C projects) after receiving complete and valid dossiers, competent agencies defined in Clause 2 of this Article, shall have to notify in writing investors of the results of appraisal of their projects' basic designs.
4. Basic designs shall be appraised in accordance with current regulations. It is also necessary to appraise the construction and operation safety of works, design solutions and construction of dams and reservoirs (if any).
5. Investors shall appraise and approve investment projects and decide on the investment on the basis of the results of appraisal of basic designs of competent agencies.
Chapter III
EXECUTION OF INVESTMENT PROJECTS
Article 7.- Technical designs and total cost estimates
1. Investors shall elaborate, appraise and approve technical designs, construction drawing designs and total cost estimates on the basis of the investment projects already approved and in accordance with the provisions of law.
2. Investors may commence their projects only after the technical design of the first work item has been approved and adequate capital has been mobilized for such work item.
Article 8.- Execution of projects
1. The execution of investment projects shall comply with legal provisions on construction permits, selection of contractors, construction management, forms of project management, contracts, payment and settlement.
2. In the course of execution, investors should apply appropriate measures so as to ensure the construction progress as agreed upon, bear responsibility for the safety of works and ensure project quality.
3. Before projects are put into operation, investors shall have to apply for electricity operation permits according to the provisions of law.
Article 9.- Termination of projects
1. If investors fail to complete the formulation and approval of investment projects within 18 months, for group-A projects, or 12 months, for group-B and -C projects, after investment preparation work has been permitted, agencies competent to license investment may issue documents to terminate the projects in order to call for other investors to execute them.
2. If investors fail to commence the construction of works within two years, for group-A projects, or one year, for group-B and -C projects, after investment projects have been approved, agencies competent to license investment may issue documents to terminate the projects in order to call for other investors to execute them.
Chapter IV
MANAGEMENT OF INDEPENDENT POWER PROJECTS
Article 10.- Reporting regime
1. After investment reports or investment projects are approved, investors shall send a complete project dossier set (printed on A4-sized papers and recorded in CDs) to the Ministry of Industry and the Industry Services of their respective provinces or cities for management and supervision.
2. During construction, investors shall have to send quarterly and annual reports on the execution of the projects to the Ministry of Industry and the Industry Services of their respective provinces or cities within the first week of the following quarter and the first two weeks of the following year.
4. During the operation of the projects, investors shall have to send biannual reports on the operation and safety of works to the Ministry of Industry and the Industry Services of their respective provinces or centrally-run cities for supervision.
4. Provincial/municipal Industry Services shall sum up reports of IPPs in their localities for reporting to the Ministry of Industry within one week after the reporting deadline set for investors.
Article 11.- Inspection and supervision regimes
1. Provincial/municipal Industry Services shall be answerable for all IPPs in their localities and make annual inspection and supervision plans for implementation.
2. The Ministry of Industry shall direct and coordinate with provincial/municipal Industry Services in inspecting and supervising IPPs.
Article 12.- Responsibilities of state management agencies in charge of electricity activities and electricity use
1. To oversee the execution of the projects by investors.
2. To consider and settle according to their competence investors' proposals on matters related to the execution of projects.
3. To conduct inspection and examination according to the provisions of law.
Chapter V
IMPLEMENTATION PROVISIONS
Article 13.- Responsibilities of organizations and individuals investing in IPPs
Organizations and individuals that invest in IPPs shall have to abide by this Regulation.
Article 14.- Organization of implementation
The Energy and Petroleum Department shall have to organize, guide and coordinate with provincial/municipal Industry Services in inspecting the implementation of this Regulation.
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