Decision on amending the list of Power Master Plan VII, giving priority to urgent power projects

According to the Decision, the list and schedule of a few of urgent power projects have been amended to put some power transmission grid and resource works into operation until 2020 as follows:

Balanced power resources projects shall not be achieved prior to 2020 because progress of imported power projects and construction of coal-fired power plant projects has not been confirmed. 

Thermal power plant projects at O Mon Power Center are put into operation in sync with the project of which gas is brought from Block B to the shore.

To supplement to the Power Master Plan VII with following projects: Capacity of Cam Pha 3 Thermal Power Plant shall be adjusted to increase  from 2x135 MW to 2x220 MW and put into operation in 2019;  500kv Pleiku-2 substation.

Hydropower plant projects and renewable power generation projects shall not be subject to the scope of amendment to the list and schedule of this Decision.

The urgent power projects that are invested and constructed in the period of 2013 – 2020 shall be applied in accordance with special mechanisms and policies under this Decision, including the following projects such as Long Phu 1, Vinh Tan 4, extension of Duyen Hai 3, 500kV Pleiku-2 substation, power transmission grid and power resources works approved by the Prime Minister at the proposal of the Ministry of Industry and Trade.

As specified in the Decision, the urgent power project shall meet the following criteria: power transmission grid and resource projects need putting into operation urgently in order to avoid some overload section of power grids or to offset shortage of power supply due to slow progress of other power projects; power transmission grid projects need to be urgently invested to ensure synchronization with other power resource projects or play an important role in regulating capacity of power resources among areas.

Regarding preparation of investment in power projects, the assigned investors shall be  permitted to appoint domestic consultancy contractors for the following works: consultancy bidding packages for planning investment project, verification and appraisal; bidding packages relating to compensation and resettlement; bidding packages relating to verification and appraisal of engineering design, consultancy bidding packages of making reports on environment, society and supervision during project implementation.

Bidding appointment procedures and orders for the above bidding packages shall comply with the provisions of the Bidding Law and guidelines.

Where domestic main consultancy contractor needs supports of foreign consultants, expenses for hiring foreign consultants shall be specified in the contract signed between the investors and domestic main consultancy contractors.

The investors in approved projects shall meet the following conditions: a capital raising plan for the project (an agreement on capital funded by credit institutions), approved licenses in accordance with environmental regulations.

For urgent power projects, in parallel with the appraisal  and approval process of investment projects, the investors shall be permitted to actively organize, plan, appraise and approve engineering design and carry out construction of utility works of the project including: transport infrastructure works connecting to site layout; site clearance work;  power and water supply system for construction; communication system; utility facilities; housing and initial working places; compensation for site clearance and resettlement; surveying , measurement and explosive detection system. In addition, They shall be also allowed to estimate items of approved works, summarize and put them into total investment and total cost estimate of the project.

For urgent power transmission grid projects, the investors shall be permitted to carry out a part of survey, consultation, engineering design in parallel with appraisal and approval process of the investment project with a condition that parts of previously implemented works must comply with the proposals submitted by the People’s Committee of Province where the project is implemented.

Regarding engineering design, the investors shall be permitted to carry out some of parts of work such as survey, consultation, engineering during the period of appraisal and approval of the investment project. The investors shall be responsible for reasonableness of implemented consultation and consistency with general volume of the engineering design for the project.

For urgent power resource projects, the investors shall be permitted to include engineering design into the scope of work of EPC bidding package, the investors shall be responsible for appraising and approving the engineering design and working drawings.

Regarding compensation and site clearance work, the investors shall be permitted to appoint consultancy contractors with capability and experiences in designing general layout as well as planning investment projects so that the People's Committee of Province where the project is carried out shall implement compensation and site clearance work as soon as the investment project and general layout are approved.

The investors shall be permitted to advance their money for site clearance on behalf of the province and agree with the People's Committee of province where the project is carried on a refunding mechanism for that amount in advance.

For urgent transmission grid projects, the investors shall be permitted to appoint capable consultancy contractor to mark corridor routes right after components of the project concerning compensation, site clearance and resettlement approved by the competent authority as well as transmission line site approved by the People's Committee of province where the project is carried out.

The investors shall be permitted to design and submit the competent authority to approve the general layout (or investment project) relating to compensation, migration support and resettlement (for power resource projects); to plan and submit components of the project relating to compensation, site clearance, migration support and resettlement (for power transmission grid projects). The investors shall submit the approved project and general layout to the provincial People's Committees to organize the implementation of project, grant land and corridor routes for transformer stations and transmission lines, add land reserve of power resource and transmission grid projects to land-use plan as a basis for planning coordination and avoid overlapping status with other provinces’ plan after the components of the project and general layout are approved

Regarding choice of contractors, competent persons shall decide and be responsible for appointing the contractors for bidding packages of urgent power projects as stipulated in Decision No. 50/2012/QD-TTg dated November 9, 2012 issued by the Prime Minister.

However, new projects with the same technology and main equipment specifications as similar projects or projects that are being carried out but shall not exceed the past five years, the competent persons or persons authorized to make investment decision shall decide to directly negotiate with capable contractors who are capable of implementing the previous projects to sign a contract for new project, or decide to organize bidding activity to select contractor as prescribed by the law. In case of direct negotiation, package price shall not exceed the bidding package price and equipment quality shall not be inferior to that of equipment supplied for similar projects that have been or are being carried out, it should ensure to meet progress as required.

The general contractor selected by the investor in urgent power projects shall be entitled to appoint sub-contractors after having agreed with the investor (except contractors banned from participation in bidding activities as stipulated at Article 65 of Decree No. 85/2009/ND-CP dated  October 15, 2009 issued by the Government.

EPC contract price of the urgent power plant projects is calculated as follows: price and cost of equipment and import service are the lump-sum price; price for domestic construction, installation and fabrication is one adjusted according to fluctuations in exchange rates, unit labour cost and prices of other input raw materials, which ensure reasonable cost adequate for implementing the project.

Competent person or persons authorized to make a decision and investment shall be entitled to decide the contract price in the principle of price of the signed contract as a basis for negotiation, but it shall not exceed the price of approved bidding packages and be permitted to adjust if there are one of the following reasons: Amendment to the scope of supply of materials, equipment, services or change in work volumes, including price drop due to extension of contract ; other reasons shall be prescribed by law.

The competent persons as stipulated in this Decision shall decide and be responsible for adjusting total investment capital of the projects.

Regarding capital arrangement for the projects, the Ministry of Finance shall provide guarantees to the investor for foreign loans in accordance with the provisions of the Law on Public Debt Management and Decree No. 15/2011/ND-CP dated February 16, 2011 on provision and management of Government guarantee.

For domestic commercial loans, the State Bank of Vietnam (SBV) shall direct domestic commercial banks to allocate sufficient capital to the Investor according to the actual need of each project.

Credit institutions shall be permitted to lend over 15 % equity to a customer and over 25 % equity for the relevant customer group when considering loans to projects in the list of urgent power projects. SBV shall consider and approve specific levels of credit level at the request of commercial banks for each project.

Domestic credit institutions shall be exempt from the economic efficiency and financial appraisal for each individual power transmission grid project when considering loans to the Investor for urgent power transmission grid projects.

The Decision also stipulates the responsibilities of the Investor, corporations, relevant ministries and agencies

Decision No. 2414/QD-TTg dated December 11, 2013

ANNEX OF THE LIST OF THERMAL POWER PLANT PROJECTS PUT INTO OPERATION IN THE PERIOD OF 2013-2020

(attached to Decision No.2414/QD-TTg dated December 11, 2013 issued by the Prime Minister)

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