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

According to the Decision, the schedule of a number of urgent power projects in period up to 2020 have been amended as follows:

 The power import grid project and coal-fired power thermal projects, the implementation schedule of which is not conformed, have been not considered before  2020. 

 Thermal power plant projects at O Mon Power Center will be operated synchronously with completion of gas pipeline project from Block B to the shore.

 To adjust and supplement to the Power Master Plan VII following projects: Increasing capacity of Cam Pha 3 Thermal Power Plant  from 2x135 MW to 2x220 MW, that would be operated in 2019;  supplementing Pleiku-2 500kV breaker-substation.

 Hydropower and Renewable  energy projects are not subject for amendment in this Decision.

 The special mechanisms and policies in this Decision will be applied for urgent power projects developed in 2013-2020 period such as   power thermal plants: Long Phu 1, Vinh Tan 4 and Duyen Hai 3 extension; Pleiku-2 500kV breaker-substation; and other urgen power  projects approved by the Prime Minister with proposal of the Ministry of Industry and Trade.

 Herein, the urgent projects are projects, developing schedule of which must be speeded up in order, for generation projects, to compensate the power shortage resulting from the slow schedule of other generation projects and for grid projects, to avoid overload for power grid in some area or to ensure the synchronization with generation projects. The urgent projects are also grid projects playing important role in power harmonisation between regional power systems.  

Regarding preparation of investment in power projects, the investors are permitted to appoint domestic consultancy contractors for the  consultancy bidding packages of the investment project and engineering design establishment, verification and appraisal; compensation and resettlement work; environment and society impact report and project implementation supervising. 

 The Procedure of bidding appointment for the above mentioning packages complies with the provisions of the Bidding Law and concerning guidelines.

 In case, the domestic main consultancy contractors need assistance of foreign consultants, the expenses for hiring foreign consultants shall be specified in the agreement between the investors and domestic main consultancy contractors.

The investor is permitted to approve the investment projects, when the capital mobilíing plan for the project (an agreement on capital funded by credit institutions), and the license for meeting environmental standards in accordance with the existing regulations. 

For urgent power projects, in parallel with the appraisal  and approval process of investment projects, the investors are permitted to take the initiative for organizing the establishment, appraisal and approvement of engineering design and carrying out, in advance, the construction of auxiliary works of the project, including transport infrastructure works to the project site; site layout clearance;  power and water supply system for construction; communication system; auxiliary facilities; tempolary housing and working places; compensation for site clearance; project compensation and resettlement; observing and surveying systems; detecting and destroying bombs and mines. The investor is also allowed to summarize estimate items of approved works, and include them into total investment and total cost estimate of the project. 

For urgent power transmission projects, the investors are permitted to carry out in advandce a part of survey, consultance and engineering design items in parallel with appraisal and approval process of the investment projects, with a condition that, this part must comply with the framework of the track, proposed by the Provincal People’s Committee (PPC) of province, where the project is implemented.

Regarding engineering design implementation process, the investor is permitted to carry out some items of survey, consultance and engineering design works during the period of appraisal and approval of the investment project. The investor is responsible for reasonableness of implemented consultative issues and consistency with general amount of the engineering design for the project. 

For urgent power generation projects, the investor is permitted to include engineering design into the scope of work of EPC bidding package. The investor is responsible for appraising and approving the engineering design and working drawings.

Regarding compensation and site clearance work, the investor is permitted to appoint consultancy contractors having capability and experiences in designing general plan layout in parallel with establishing the investment project so that the People's Committee of Province where the project is could implement compensation and site clearance works as soon as possirble after the approvement of investment project and general plan layout.

The investor is permitted to pay in advance money for site clearance  on behalf of the People's Committee of province, where the project is,  and to agree with It for the mechanism of repaying the money.  

For urgent transmission projects, the investor is permitted to appoint capable consultancy contractor to set up landmarks for route corridor of transmission line, right after the components of the project concerning compensation, site clearance and resettlement approved by the competent authority and route plan layout of transmission line provided by the People's Committee of province where the project is.

The investor, establishing, submiting to the competent authority for approving the general planning (or investment project) is permitted to carry out the compensation, migration support and resettlement works (for power resource projects); to make and submit components of the project for the compensation, site clearance, migration support and resettlement (for power transmission grid projects). After the approvement of the project components or general migration planning, the investor shall hand over them to the Provincial People's Committees in order to grant land for transformer station and route corridor for transmission line; and to organize the project implementation; to add land fund for power generation and transmission grid projects to land-use planning, as a basis for coordinating planning projects and avoiding overlapping status with other planning projects. 

Regarding selection of contractors, the person with the competence to decide and be responsible for appointing the contractors of bidding packages of urgent power projects has been stipulated in Decision No. 50/2012/QD-TTg dated November 9, 2012 issued by the Prime Minister.

For the new projects, which have the same technology and main equipment parameters as similar projects built or being built for not over the recent five years, the competent person or person authorized for the investment decision decides to directly negotiate with capable contractor, who implemented the previous projects to sign a contract for new project, or to organize bidding to select the new contractor as prescribed by the law. In case of direct negotiation, the package price must not exceed the bidding package price and equipment quality must be not lower than that of equipment of similar projects built or being built; and it is required to ensure developing progress.

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

EPC contract price of the urgent power plant projects is calculated as follows: price and cost of import equipment and  service are the lump-sum ones; price of domestic construction, installation and fabrication is adjusted in accordance with fluctuation of exchange rate, labour unit cost and prices of other input materials are calculated to ensure reasonable expenditure, adequate for implementing the project. 

Competent person or person authorized for investment decision is entitled to decide the contract price in the principle of using the price of the signed contract as a basis for negotiation, so that it shall not exceed the price of approved bidding packages. The person is also permitted to adjust contract price due to one of following reasons: changing the scope of materials, equipment, services supply or amount of work, decreasing the price due to extension of contract and other reasons stpulated by the law.

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

Regarding capital arrangement for the projects, the Ministry of Finance guarantees for the investors on 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) directs domestic commercial banks to allocate sufficient capital to the Investor according to the actual need of each project.

Credit institutions is 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 are permited to exempt appaising the economic and financial efficiency 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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