Decision No. 147/2006/QĐ-TTg On approving the pilot project to establish the Vietnam Electricity Group

DECISION

Regarding the approval of the pilot project to form theVietnam Chemical Corporation Group

PRIME MINISTER

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

Pursuant to the Law on State-Owned Enterprises dated November 26, 2003;

Pursuant to the Enterprise Law dated November 29, 2005;

Pursuant to Decree No. 153/2004/NĐ-CP dated August 9, 2004 of the Government on the organization and management of state-owned holding corporations and the transformation of state-owned holding corporations and independent state-owned enterprises into parent-subsidiary models;

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

Pursuant to …;

Article 1. Approves the pilot project to form Vietnam Electricity Group operating under the parent-subsidiary model, with the following contents:

1. Forming Vietnam Electricity Group, multi-owned, with state ownership being dominant, including wholly state-owned enterprises, multi-owned enterprises, based on restructuring and reorganizing Vietnam Electricity Corporation and its subsidiaries; having modern technology, management, and high specialization levels; engaging in diversified industries, with electricity production and trading, public telecommunications, and power machinery being the main businesses; closely integrating production and business operations with science, technology, research and development, and training; serving as the core for the rapid and sustainable development of the Vietnamese power industry, effectively competing and integrating into the international economy.

2. The relationship between the parent company in Vietnam Electricity Group and the state owner and subsidiaries, associated companies shall be carried out in accordance with the law and stipulated in the Charter of the parent company's organizational structure and operation.

The Government shall uniformly manage and organize the implementation of the rights and obligations of the state owner towards Vietnam Electricity Group. The Prime Minister assigns relevant ministries, ministerial-level agencies, government-affiliated agencies, and the Board of Directors of Vietnam Electricity Group to exercise certain rights of the owner in accordance with current laws and the Charter of the parent company's organizational structure and operation.

3. Vietnam Electricity Group Parent Company is a state-owned enterprise directly engaged in production, business, and financial investment in other enterprises, maintaining control over subsidiaries through capital, assets managed by the state, technology, brand, and market.

The organizational structure of Vietnam Electricity Group Parent Company includes:

- Hoa Binh Hydroelectric Company;

- Yaly Hydroelectric Company;

- Tri An Hydroelectric Company;

- National Power System Dispatch Center;

- Power Information Center;

- Project Management Boards for power sources;

- Project Management Board for the Central Control and Telecommunication Industry Information Center;

- Electricity Trading Company (newly established).

4. Enterprises held 100% of charter capital by Vietnam Electricity Group:

a) Limited liability companies with one member:

- Can Tho Thermal Power Limited Liability Company with One Member;

- Phu My Thermal Power Limited Liability Company with One Member;

- Thu Duc Thermal Power Limited Liability Company with One Member;

- Hai Duong Power Limited Liability Company with One Member;

- Ninh Binh Power Limited Liability Company with One Member;

- Da Nang Power Limited Liability Company with One Member.

b) Companies converted into limited liability companies with one member in 2006-2007:

- Hanoi Electricity Company;

- Ho Chi Minh City Electricity Company;

- Dong Nai Electricity Company;

- Haiphong Electricity Company;

- Power Telecommunications and Information Company.

c) Newly established limited liability companies with one member:

- National Power Transmission Company (based on restructuring four Power Transmission Companies 1, 2, 3, and 4);

- Power Finance Company.

5. Enterprises held more than 50% of charter capital by Vietnam Electricity Group:

a) Joint-stock companies:

- Vinh Son-Song Hinh Hydroelectric Joint-Stock Company;

- Thac Ba Hydroelectric Joint-Stock Company;

- Haiphong Thermal Power Joint-Stock Company;

- Quang Ninh Thermal Power Joint-Stock Company;

- Electric Equipment Manufacturing Joint-Stock Company;

- Power Machinery Joint-Stock Company;

- Central Electric Machinery Joint-Stock Company;

- Pha Lai Thermal Power Joint-Stock Company;

- Khanh Hoa Power Joint-Stock Company.

b) Joint-stock companies to be established in 2006-2007:

- Dahnhim-Ham Thuan-Da Mi Hydroelectric Company;

- Thac Mo Hydroelectric Company;

- Ung Bi Thermal Power Company;

- Ninh Binh Thermal Power Company;

- Vung Tau Thermal Power Company;

- Information Technology Center;

- Thu Duc Electric Machinery Company;

- Power Construction Consulting Company 1;

- Power Construction Consulting Company 2;

- Power Construction Consulting Company 3;

- Power Construction Consulting Company 4;

- Power Company 1;

- Power Company 2;

- Power Company 3.

c) Newly established joint-stock companies:

- Power Business Services, Hotel and Tourism Joint-Stock Company;

- Northern Thermal Power Maintenance Service Joint-Stock Company;

- Southern Thermal Power Maintenance Service Joint-Stock Company.

6. Associated companies of Vietnam Electricity Group:

- Vietnam Power Development Joint-Stock Company;

- Se San 3A Power Investment and Development Joint-Stock Company;

- IQLinks Limited Liability Company;

- An Binh Commercial Joint-Stock Bank;

- Central Hydroelectric Joint-Stock Company;

- Vietnam-Laos Power Investment and Development Joint-Stock Company.

7. Public institutions:

- Energy Institute;

- Electric Power University;

- Ho Chi Minh City Electric Power College;

- Central Electric Power College;

- Electric Power Vocational Training School.

8. The establishment of new subsidiary units; converting member companies into limited liability companies with one member or joint-stock companies; supplementing new subsidiaries and associated companies, the Board of Directors of Vietnam Electricity Group shall implement in accordance with the provisions of the law.

Article 2. Implementation organization:

1. Ministries, ministerial-level agencies, and government-affiliated agencies shall perform their state management functions in related fields and carry out certain rights and obligations of the owner assigned by the Prime Minister to Vietnam Electricity Group.

2. The Ministry of Industry shall be responsible for directing and monitoring the implementation of this Decision; promptly identifying and resolving any arising issues, reporting to the Prime Minister for resolution of matters exceeding authority; taking the lead and coordinating with relevant agencies to study and propose to the Prime Minister new issues requiring piloting during the implementation process.

3. The Ministers of Finance, Planning and Investment, Labour - Invalids and Social Affairs, Home Affairs; Heads of relevant agencies, the Steering Committee for Enterprise Reform and Development shall be responsible for coordinating with the Ministry of Industry and the Board of Directors of Vietnam Electricity Corporation in carrying out the tasks mentioned above according to their functions and responsibilities.

Article 3. This Decision shall take effect fifteen days after its publication in the Official Gazette. The Ministers of Industry, Finance, Planning and Investment, Labour - Invalids and Social Affairs, Home Affairs, Heads of relevant agencies, the Steering Committee for Enterprise Reform and Development, and the Board of Directors of Vietnam Electricity Corporation are responsible for implementing this Decision./.