Decision No. 09/2014/QD-TTg on the financial obligations of organizations with nuclear power plants, and the management methods for financial sources to ensure the shutdown and dismantling of nuclear power plants

 Pursuant to …;

Financial obligations of organizations with nuclear power plants,

management methods for financial sources ensuring the termination of operations

and dismantling of nuclear power plants

__________________

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

Pursuant to the Atomic Energy Law dated June 3, 2008;

Pursuant to Decree No. 70/2010/ND-CP dated June 22, 2010 of the Government detailing and guiding the implementation of certain provisions of the Atomic Energy Law regarding nuclear power plants;

At the proposal of the Minister of Industry and Trade;

The Prime Minister issues this Decision on the financial obligations of organizations with nuclear power plants, management methods for financial sources ensuring the termination of operations and dismantling of nuclear power plants,

Article 1. Scope of Regulation

This Decision stipulates the rights, obligations, and responsibilities of organizations and individuals related to the extraction, establishment, management, use, and settlement of the Fund guaranteeing financial obligations for the termination of operations and dismantling of nuclear power plants.

Article 2. Applicability

This Decision applies to organizations with nuclear power plants and organizations and individuals related to the extraction, establishment, management, use, and settlement of the Fund guaranteeing financial obligations for the termination of operations and dismantling of nuclear power plants.

Article 3. Guarantee Fund

The Guarantee Fund (hereinafter referred to as the Fund): Is a fund managed by the organization with a nuclear power plant, established to ensure sufficient funding for the termination of operations and dismantling of the nuclear power plant.

Article 4. Management Requirements for the Fund

1. Ensuring that the tasks of collecting and using the Fund's capital are carried out in accordance with the provisions of this Decision and relevant current laws.

2. Ensuring the safety, preservation, and development of the Fund's capital, enhancing the effectiveness of the Fund's operations.

3. Implementing accounting, auditing, and financial transparency in accordance with the provisions of the law.

Article 5. Sources of Revenue for the Fund

1. Sources of revenue for the Fund include:

a) Accumulated revenue from electricity sales: The organization with a nuclear power plant must extract from annual electricity sales revenue to be deposited into the Fund; this accumulated revenue is recorded in the production cost of the nuclear power plant. The extraction ratio based on annual electricity sales revenue of the nuclear power plant is as follows:

- In the first five years of operation: The extraction rate is 1%;

- In the next five years of operation: The extraction rate is 2%;

- During subsequent periods of operation: Every five years, the Ministry of Industry and Trade shall take the lead in reviewing and submitting to the Prime Minister for decision on adjusting the extraction rate based on the proposal of the organization with a nuclear power plant and the Dismantling Plan of the nuclear power plant approved by the competent authority.

b) Other sources of revenue:

- Interest income generated annually after fulfilling financial obligations to the State is included in the Fund;

- Other lawful sources of revenue.

2. Time of Extraction and Deposit into the Fund:

a) The Fund is calculated for extraction and deposit from the date the nuclear power plant is put into commercial operation.

b) Annually, within thirty days after the end of the fiscal year, the organization with a nuclear power plant must deposit the amount calculated according to Point a Clause 1 of this Article into the Fund.

3. Adjustment of Sources of Revenue for the Fund:

a) Within five years before the date of implementing the dismantling of the nuclear power plant approved by the competent authority, the organization with a nuclear power plant must assess the Fund balance, estimate the total costs required for the implementation of the termination of operations and dismantling of the nuclear power plant.

If the Fund balance is insufficient compared to the necessary funds for the termination of operations and dismantling of the plant, the organization with a nuclear power plant must develop a plan to raise additional funds to supplement the Fund one year before the start of the dismantling process.

b) In cases of natural disasters, unforeseen catastrophes, requiring the dismantling of the nuclear power plant, if the Fund balance is insufficient, the shortfall in funds for dismantling the nuclear power plant will be raised from the organization with a nuclear power plant, supported by the state budget, and other lawful sources.

Article 6. Use of the Fund

The Fund shall be used for the purpose of ensuring the cessation of operations and dismantling of nuclear power plants. Organizations with nuclear power plants may use the funds in the Fund to carry out tasks related to the cessation of operations and dismantling of nuclear power plants according to the approved cessation and dismantling plan of the nuclear power plant by the competent authority.

Article 7. Ensuring Foreign Currency Sources of the Fund

The Fund is responsible for purchasing foreign currency through transactions on the market to ensure sufficient foreign currency sources necessary for the cessation of operations and dismantling of nuclear power plants.

Article 8. Temporary Use of Idle Capital of the Fund

1. During the period when the funds are not needed, the money in the Fund must be preserved and developed through the following management activities:

a) Lending to the state budget or purchasing government bonds based on the Fund's financial balance. The term and conditions for lending and purchasing government bonds are decided by the competent authority for each loan period as stipulated. The state budget is responsible for arranging repayment to the Fund upon maturity;

b) Depositing at commercial banks and reputable domestic financial organizations announced by the State Bank of Vietnam to the organization with nuclear power plants and approved by the Prime Minister; financial institutions and banks are selected based on competitive interest rates offered;

c) Utilizing the capital management services of reputable domestic commercial banks, financial and credit organizations in Vietnam as rated by the State Bank of Vietnam and foreign banks legally operating in Vietnam.

2. The profit from the temporary idle capital usage of the Fund shall be used to address risks in the re-lending activities and to supplement the Fund's capital.

3. The Ministry of Finance shall specify the management and use of the temporarily unused capital of the Fund, ensuring safety, liquidity, and efficiency.

Article 9. Opening Accounts for the Fund

1. The Fund shall open transaction accounts in foreign currencies and Vietnamese dong at the State Treasury.

2. Transaction accounts shall be opened with sub-accounts according to the content and corresponding foreign currencies to monitor each source of income as prescribed.

Article 10. Reporting System

Annually, in the first quarter, the organization with a nuclear power plant must prepare a report on the operation status and financial report of the Fund in the previous year, to be sent to the Ministry of Industry and Trade and the Ministry of Finance for inspection and supervision.

Article 11. Supervision and Audit of the Fund's Activities

1. The Ministries of Industry and Trade, and Finance shall organize inspections and supervision of the Fund's management according to the provisions of this Decision and relevant current laws.

2. The Fund is responsible for hiring independent auditing organizations to conduct annual audits as prescribed and to undergo audit by the National Audit Office.

Article 12. Management and Operation of the Fund

1. The Fund shall not establish a separate legal entity. The organization with a nuclear power plant appoints the account manager, chief accountant (or accounting supervisor), and assigns some staff members to manage the Fund.

2. The organization with a nuclear power plant specifies in detail the management and operation of the Fund and the duties and authorities of the account manager, chief accountant (or accounting supervisor), and other staff involved in managing the Fund.

Article 13. Settlement of the Fund

1. After the completion of the termination of operations and dismantling of the nuclear power plant, the entity owning the nuclear power plant must prepare settlement documents in accordance with regulations, submit to the Ministry of Industry and Trade for examination and approval.

2. In cases where there is still a surplus in the Fund after settlement, the excess amount shall be deposited into the state budget.

Article 14. Implementation Organization

1. Ministry of Industry and Trade:

- Take the lead and coordinate with the Ministry of Finance and the Ministry of Science and Technology to inspect, supervise the situation regarding the allocation, payment, management, and utilization of the Fund;

- Take the lead and coordinate with the Ministry of Finance to guide:

+ The content of reports on the management and utilization of the Fund;

+ Documents, procedures, and processes for implementing: Adjustments to the ratio of allocations and payments to the Fund; examination and approval of the Fund's settlement.

2. The Ministry of Finance shall issue regulations on the management and use of temporarily unused funds of the Fund; coordinate with the Ministry of Industry and Trade to guide the management and use of the Fund.

Article 15. Effective Date

This Decision takes effect from March 10, 2014.

Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial People's Committees, and entities owning nuclear power plants are responsible for implementing this Decision./.