Decision No. 11/2007/QĐ-TTg On Amending and Supplementing Certain Provisions on Management Mechanism and Implementation of the Son La Hydropower Project issued together with Decision No. 207/2004/QĐ-TTg dated December 11, 2004

Pursuant to …;

Regarding the amendment and supplementation of certain provisions on the management mechanism and implementation of the Son La Hydropower Project issued together with Decision No. 207/2004/QĐ-TTg dated December 11, 2004

_____________________________

PRIME MINISTER

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

Pursuant to the Construction Law dated November 26, 2003;

Pursuant to the Law Amending and Supplementing Certain Provisions of Laws Related to Investment in Construction Projects dated June 19, 2009;

Pursuant to Resolution No. 44/2001/QH10 of the Tenth National Assembly at its ninth session on June 29, 2001 regarding the investment policy for the Son La Hydropower Plant Project; Resolution No. 13/2002/QH11 of the Eleventh National Assembly at its second session on December 16, 2002 regarding the construction plan for the Son La project;

Pursuant to Decree No. 16/2005/NĐ-CP dated February 7, 2005 of the Government on project management for investment in construction works; Decree No. 112/2006/NĐ-CP dated September 29, 2006 amending and supplementing certain articles of Decree No. 16/2005/NĐ-CP; Decree No. 197/2004/NĐ-CP dated December 3, 2004 of the Government on compensation, support, and resettlement when land is reclaimed by the State;

Pursuant to Decision No. 92/QĐ-TTg dated January 15, 2004 of the Prime Minister approving the investment in the Son La Hydropower Project;

Pursuant to Decisions of the Prime Minister No. 09/2004/QĐ-TTg dated January 15, 2004 establishing the National Steering Committee and No. 677/QĐ-TTg dated June 18, 2004 promulgating the Operation Regulation of the National Steering Committee for the Son La Hydropower Project;

Considering the proposal of the Minister of Industry,

DECISION:

Article 1. Amending and supplementing certain provisions on the management mechanism and implementation of the Son La Hydropower Project issued together with Decision No. 207/2004/QĐ-TTg dated December 11, 2004 of the Prime Minister as follows:

1. Amend and supplement Clause 3 of Article 3 as follows:

a) Amend and supplement Point đ as follows:

"d) The investor shall select foreign consultants with experience and capacity through limited international bidding to act as supervisory consultants for the energy transmission line, concrete roller-compacted dam (RCC) section, and other technically complex works; the investor shall organize the implementation or hire supervisory consultants for the remaining sections and tasks according to current regulations."

b) Supplement point g as follows:

g) Permitting the Vietnam Electricity Corporation to invest in constructing the cement additive production unit from Phả Lại fly ash (this unit belongs to the auxiliary area of the Son La Hydropower Project)."

2. Amending and supplementing Clause 4 as follows:

"Article 4. Unit price, total budget estimate, and budget estimates for individual items:

1. The Ministry of Industry shall establish a unit price committee. The unit price committee shall develop standard rates - unit prices, submit them for review by the investor, and submit them for approval by the Ministry of Industry after obtaining the agreement of the Ministry of Construction.

2. The total budget estimate for construction works shall be prepared and approved after the technical design phase 2 and the unit prices are issued, and must be approved no later than when 30% of the construction value in the total investment ceiling is implemented.

3. Acceptance and payment of completed work volumes shall be carried out according to the budget estimate, construction drawings, and construction organization designs that have been approved, consistent with the technical design and total budget estimate.

4. During the period before the technical design phase 2 and the total budget estimate are approved, preparation of designs and budget estimates for individual works that can commence early may be made for approval as the basis for signing contracts to implement those works."

3. Amend and supplement Article 5 as follows:

a) Amend and supplement Clause 2 as follows:

"2. Mechanism for implementing General Contractor Contracts

a) Form and value of General Contractor Contracts:

- A General Contractor Contract is a contract with adjustable prices signed between the investor and the general contractor. Adjustments to the value of the General Contractor Contract shall be made according to current regulations;

- The value of the General Contractor Contract shall be determined based on the construction cost (including contingency) in the approved total budget estimate for corresponding sections within the scope of the General Contractor Contract, reduced by 5%;

b) Advance payments:

- The investor shall temporarily advance funds to the General Contractor or subcontractor according to the provisions of Decree No. 16/2005/NĐ-CP dated February 7, 2005 of the Government on project management for investment in construction works;

- The investor shall temporarily advance a sum of money to the General Contractor to cover material reserves affected by transportation seasonality on the Da River, high construction intensity (sand, gravel, clinker...). The quantity of materials reserved and the amount of temporary advance shall be agreed upon by the investor and the General Contractor.

c) Settlement:

- Allow the investor to pay 92% of the value of completed work when the contractor has completed the payment procedures. The remaining portion will be paid as follows: 5% when there is a completion certificate for the work item from the State Acceptance Board, 2% at the end of the 12-month warranty period, and 1% at the end of the 24-month warranty period.

- Allow the investor to directly pay the subcontractors when the authorized representative of the General Contractor and the Project Management Board sign off on the quality acceptance and quantity confirmation.

- Allow the investor to pay up to 85% of the design budget estimate before the total budget estimate is approved."

b) Amend and supplement Clause 3 as follows:

"3. Mechanism for allocating and paying auxiliary items:

- Auxiliary items such as traffic systems, construction power supply systems within the construction site, water supply, access roads to material quarries, contractors' working houses shall be allocated as a lump sum based on the approved budget estimate. Auxiliary items shall be accepted based on scale and functionality. The scale of these items shall be determined based on the approved construction site layout. Camp costs shall be allocated as a lump sum according to current regulations.

There shall be no reduction of 5% for auxiliary items such as traffic systems, power supply, water supply, basic construction of material quarries, leveling and construction of auxiliary areas, camps, working houses, construction materials provided through competitive bidding or tendering.

- The capital transfer and payment plan shall be carried out according to the agreement between the investor and the General Contractor. Allow the investor to pay up to 95% of the allocated value of preparatory works depending on the degree of completion of the works, the remaining 5% shall be paid when the allocated works have been completed and confirmed by the Project Management Board."

"c) Supplement Clause 6 as follows:"

"6. Allow the investor to borrow funds from banks without having to conduct a loan repayment plan assessment."

4. AMENDING AND SUPPLEMENTING ARTICLE 6 AS FOLLOWS:

"1. The method of selecting suppliers of electromechanical equipment and hydraulic machinery for the main works shall be carried out according to the bidding plan

2. The Ministry of Finance shall provide guarantees for the project investor to borrow foreign capital; organize the issuance of international bonds to purchase equipment, materials, and technology that have not yet been produced domestically.

5. Amend and supplement Clause 1 of Article 12 as follows:

"1. Comprehensive relocation planning: carried out in accordance with Decision No. 196/2004/QĐ-TTg dated November 29, 2004, and subsequent Decisions approving adjustments and supplements by the Prime Minister."

6. Amend and supplement Article 13 as follows:

"Article 13. Work on establishing investment projects, designing, and preparing estimates for projects and works under the relocation resettlement project

1. Economic and technical report preparation for infrastructure works (transportation, water conservancy, electricity supply, water supply...), project establishment, and design stages shall be conducted in accordance with Government Decree No. 16/2005/NĐ-CP dated February 7, 2005, on managing construction investment projects; and Decree No. 112/2006/NĐ-CP dated September 29, 2006, amending and supplementing certain articles of Decree No. 16/2005/NĐ-CP.

2. Allow the People's Committee of the province to designate consulting units with sufficient capacity and experience to undertake detailed planning, project establishment, and design-estimate work for sub-projects and components within the relocation resettlement project.

3. The People's Committees of the provinces shall stipulate the classification and approval procedures for detailed planning, design, and projects and components within the relocation resettlement project.

7. Amending and supplementing Article 16 as follows:

a) Amend and supplement Clause 4 as follows:

"4. Management of funds, advance payments, settlement, and final accounts for compensation and relocation resettlement work shall be carried out in accordance with Decision No. 02/2007/QĐ-TTg dated January 9, 2007, issued by the Prime Minister on compensation, support, and relocation resettlement for the Son La Hydropower Project, and the Circular guiding this by the Ministry of Finance regarding compensation for relocation resettlement.

b) Amend and supplement Clause 5 as follows:

"5. The project investor shall make advance payments to contractors in accordance with the provisions of Government Decree No. 16/2005/NĐ-CP dated February 7, 2005, on managing construction investment projects.

c) Amending and supplementing Clause 6 as follows:

"6. The Chairmen of the People's Committees of Son La, Dien Bien, and Lai Chau Provinces shall be responsible for ensuring the effective and appropriate use of relocation resettlement funds, and shall not use them to settle items funded from other sources.

8. Amend and supplement Clause 1 of Article 17 as follows:

"1. The scope and scale of the Son La Hydropower Flood Avoidance Transportation Works Project are defined in Point 3 of Circular No. 2120/TTg-CN dated December 28, 2005, issued by the Prime Minister.

9. Sửa đổi, bổ sung khoản 1 Điều 18 như sau:

"1. The funding source for the Son La Hydropower Flood Avoidance Transportation Works Project shall be implemented according to Circulars No. 2120/TTg-CN dated December 28, 2005, and No. 1887/TTg-CN dated November 17, 2006, issued by the Prime Minister.

Article 2. This Decision shall take effect from the date of signing.

Article 3. The National Steering Committee for the Son La Hydropower Project, Ministers, Heads of Ministries equivalent to Ministries, Heads of agencies under the Government, Heads of related agencies, Chairmen of the People's Committees of Son La, Dien Bien, and Lai Chau Provinces, Vietnam Electricity Corporation, and Song Da Corporation shall be responsible for implementing this Decision./.