Decision No. 12/2005/QD-TTg on approving the supplementary restructuring and modernization plan for state-owned enterprises under Vietnam Electricity Corporation until 2005.

Pursuant to …;

Regarding the approval of the supplementary project on restructuring and modernizing state-owned enterprises under the Vietnam Electricity Corporation until 2005

On the basis of Decree No. 180/2004/NĐ-CP dated October 24, 2004 of the Government on the establishment, reorganization, and dissolution of state-owned companies;

PRIME MINISTER

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

Pursuant to the State Enterprise Law dated November 26, 2003;

On the basis of Decision No. 155/2004/QĐ-TTg dated August 24, 2004 of the Prime Minister on issuing criteria and classification lists for state-owned enterprises and independent accounting subsidiaries under state-owned corporations;

Considering the proposal of the Board of Directors of the Vietnam Electricity Corporation,

Approves the supplementary project on restructuring and modernizing state-owned enterprises under the Vietnam Electricity Corporation until 2005, as follows:

DECISION:

Article 1. I. Convert the following dependent accounting units into independent accounting subsidiaries for subsequent privatization:

1. Thac Mo Hydroelectric Power Plant.

2. Uong Bi Thermal Power Plant.

3. Ninh Binh Thermal Power Plant.

4. Vung Tau Thermal Power Plant.

5. Dahnhim-Ham Thuan-Damy Hydroelectric Power Plant.

6. Thac Ba Hydroelectric Power Plant.

7. Pha La Thermal Power Plant.

II. Convert the following dependent accounting units into state-owned limited liability companies with one member:

1. Thu Duc Thermal Power Plant.

2. Phu My Power Plant.

III. Privatize the following units with the State holding a low percentage of shares or not holding any shares:

1. Construction and Installation Enterprise (Electricity Company 1).

2. Ceramic Insulation Factory (Electricity Company 1).

The Board of Directors of the Vietnam Electricity Corporation shall be responsible for:

Article 2. 1. Directing the implementation of the restructuring and modernization of state-owned enterprises directly under the Corporation according to the approved content and schedule.

2. Completing the project to establish the Vietnam Electricity Group and submitting it to the Prime Minister in the first quarter of 2005.

3. Developing a project to transform the Vietnam Electricity Telecommunications Company into a parent company - subsidiary model as prescribed by law.

4. Developing a project to reorganize the four existing power transmission companies into one power transmission company and submitting it to the Prime Minister for approval in the fourth quarter of 2005.

5. Developing a project for the Vietnam Electricity Finance Company and submitting it to the Prime Minister for approval in 2005.

The Ministry of Industry shall take the lead, in coordination with the Ministry of Finance and the Ministry of Planning and Investment in 2005, to submit to the Prime Minister mechanisms for adjusting electricity prices based on input costs, electricity prices for remote areas, and the establishment of a public utility fund for electricity.

Article 3. The Steering Committee for Enterprise Reform and Development shall be responsible for urging, guiding, and monitoring the implementation of this project, and at the same time proposing solutions to the Prime Minister to resolve difficulties during the implementation process.

The Ministry of Industry, the Ministry of Finance, the Ministry of Planning and Investment, the Ministry of Home Affairs, the Ministry of Labor, Invalids and Social Affairs, the Governor of the State Bank of Vietnam, the Board of Directors and General Director of the Vietnam Electricity Corporation, and the heads of relevant agencies shall be responsible for implementing this Decision./.

Article 4. The Standard Measurement Quality Control Department shall be responsible for organizing and guiding the implementation of the Regulations adopted herein.

The Ministry of Industry, the Ministry of Finance, the Ministry of Planning and Investment, the Ministry of Home Affairs, the Ministry of Labor, Invalids and Social Affairs, the Governor of the State Bank of Vietnam, the Board of Directors and General Director of Vietnam Electricity Corporation, and the heads of relevant agencies shall be responsible for implementing this Decision./.