The Decree on transferring power projects (public property) to EVN

The Electricity projects as the public assets transferring to EVN:

1. The Electrical projects as the public assets at state agencies, public service units, people's armed forces units, Communist Party of Vietnam agencies, Vietnam Fatherland Front, socio-political organizations, professional socio-political organizations and other organizations established per the law on associations (the public properties at the agencies, organizations and units).

2. The Electricity projects are the public assets assigned to enterprises to manage, excluding the state capital component of the enterprises (public assets at the enterprises).

3. The Electrical projects belonging to technical infrastructure projects invested with state capital, that managed by project management boards, agencies, organizations, and units (the electrical projects belonging to technical infrastructure invested by state capital).

4. The Electrical projects belonging to technical infrastructure commonly used in urban, residential areas and other projects that investors must be handed over to the State according to the provisions of law.

5. The Electricity projects, whose ownership established by the entire people originate outside the state budget (including the value of the increased electricity project due to organizations and individuals investing, renovating and upgrading existing power projects of the electricity unit) due to organizations and individuals voluntarily transferring ownership rights to the State of Vietnam through EVN in the form of non-refundable capital and the electricity unit agrees to receive it (electricity projects originating outside the state budget).

6. The Electricity projects whose ownership would be established by the entire people originate from an investment project under the public-private partnership method and would be agreed upon by the parties for transferring to the electricity unit according to the project contract according to regulations of the law or decided by a competent authority to assign the electricity unit to perform the receiving task (the electricity projects invested in the public-private partnership method).

The conditions for the Electricity projects transferring to EVN:

The Decree clearly states that the electricity projects specified in Points 1, 2, 3, and 4 above that transferring to EVN according to the provisions of Chapter II of this Decree must be fully suitable with the following conditions:

Firstly: It will be suitable with the Power development planning, and the electricity supply network development plan in the provincial planning at the time of construction, or at the time of checking the current status of the electricity project for transferring.

Specifically, for power lines and transformer stations with voltage levels of 110 kV or higher; power plant, equipment, power grid connecting the power plant to the national power system and auxiliary works of the power plant.

Secondly: Satisfying relevant regulations and standards while checking the current status of the electrical project for transferring.

Thirdly: The electrical project is operating (being used to generate, transmit, and distribute electricity) normally at the time of inspection and the current status of the electrical project for transferring.

Fourthly: The electrical projects that are not in a state of mortgage, guarantee, or ensure of any other debt obligations. For the electrical projects specified in points 1 and 2 that meet the provisions in point a (first) and point d (fourth) above but do not meet the conditions specified in point b (second), point c (third), but the electricity units confirm that it can carry out renovation and repair to continuous operate, then it be determined to be eligible for transfer.

The Decree clearly states that the electricity projects specified in above point 5 that are transferring to EVN according to the provisions of Chapter III of this Decree must fully meet the prescribed conditions and must be capable of supplying electricity or developing to provide the electricity to local organizations and households.

The electricity projects specified in above point 6 must meet the transfer conditions as prescribed in Decree No. 35/2021/ND-CP dated March 29, 2021, of the Government guiding the Investment Law in a reciprocal manner of public-private mode.

Order and procedures for transferring electrical projects:

According to the Decree, when there is an electrical project that needs to be transferred, the transferor is responsible for preparing a transfer request document and sending it (directly, via postal service, or electronically in cases where there is a digital signature) to the recipient as announced by EVN.

Within 30 days from the date of receiving the complete document requesting the transfer of the electrical project, the receiving party is responsible for presiding over and coordinating with the transferor to inspect the current status of the electrical project and evaluate the transfer of the electrical project. Meet the transfer conditions according to regulations and prepare records according to the form. On that basis:

Firstly: In case the electrical project is eligible for transfer, the receiving party shall preside and coordinate with the transferor, inventory and determine the value of the transferred electrical projects according to regulations and carry out the following contents:

- Within 7 days of completing the inventory and determining the value of the electrical project, the head of the transferor shall issue a Decision to transfer the electrical project according to the form.

- Within 7 days from the date of the completion inventory and definition of the value of the electricity project, the chief officer of the sender will promulgate to transfer project in form.

- Within 7 days from the date of the decision to transfer the sender to a chair and will coordinate with the recipient to hand over and receive the electrical project along with the required documents. The handover and receipt of assets must be made in a minute according to the form.

Based on the minutes of handover and receipt of assets, the receiving party records the increase in assets and investment capital of the owner in the enterprise.

Secondly: In the case the electrical project is not eligible for transferring, the receiving party shall notify the sender in writing document that the electrical project is not eligible for transferring (specifically identifying the conditions for not meeting the conditions for transferring).

The Decree takes effect from March 1, 2024./.