Decision No. 22/1999/QĐ-TTg Approving the Rural Electrification Program

Pursuant to …;

Approving the Rural Electrification Program

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PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

At the proposal of the Minister of Planning and Investment and the Minister of Industry,

DECISION:

Article 1. Approves the Rural Electrification Program until 2000 with the following main contents:

1. Objectives of the Plan

By the end of 2000, bring electricity to all provinces and districts throughout the country. Strive for 80% of communes, including 60% of rural households, to have electricity for daily life and production, thereby improving material and spiritual living standards and promoting economic and social development in rural areas in the process of industrialization and modernization of the country.

2. Guiding Principles

Developing rural electrification, including building new systems and upgrading existing ones, must be consistent with planning, combined with specific population resettlement at each locality; arranging projects with focus and implementing them gradually according to our financial balancing capacity. Prioritize areas with potential for rapidly increasing productivity towards modernizing agricultural production and restructuring the economy in key regions concerning national security and defense.

Bringing electricity to rural areas must combine the development of the national power grid with local power generation such as small hydropower, wind power, solar power, biogas... based on analyzing optimal cost options and other related factors. Fully and reasonably implement the principle that the State and people, central and local authorities work together to mobilize and combine various sources of capital.

3. Implementation Measures

Focus on addressing electricity supply issues in communes in revolutionary bases, remote and far-flung areas, key regions concerning national security and defense; communes with conditions to restructure their economies towards modernizing agriculture and rural areas.

Focus on upgrading power grids in communes that already have electricity and places where the grid has severely deteriorated, with poor quality power supply not meeting technical and safety requirements for power supply and consumption. Pay attention to upgrading grids in communes where planning has been stabilized.

4. Mechanism for Mobilizing and Investment Capital

a) For medium voltage lines, substations, and metering devices, funds will come from:

- Budgetary funds,

- Retained depreciation funds,

- Preferential credit funds according to the annual state plan,

- International aid funds under agreements,

b) For low voltage grids, funds will come from local government budgets.

c) Low voltage grids from the main low voltage line to residential houses will be invested by the people themselves.

d) For regions II, III of provinces and border areas, islands, and places far from the national power grid, and for households in special policy categories facing difficulties, the State will support part of the funding to build main low voltage lines and low voltage lines to residential houses.

đ) For Hanoi, Haiphong, Da Nang, Ho Chi Minh City, and provinces such as Dong Nai, Khanh Hoa, Ba Ria-Vung Tau, investment in power grids, including medium and low voltage, will mainly be mobilized from local government budget funds.

e) To accelerate the progress of bringing electricity to rural areas, provincial and municipal people's committees shall establish projects and submit them for approval according to current regulations. Encourage all economic sectors to participate in investment and be allowed to operate low voltage power grids in rural areas through the method of investing in low voltage grids, purchasing electricity from Vietnam Power Corporation at state-set prices, and selling it to users at prices approved by the Government Price Board.

g) For some mountainous communes and island regions unable to connect to the national power grid by 2000, localities shall establish projects to build local power sources suitable for specific conditions such as diesel power, small hydropower, solar power... The State encourages domestic and foreign economic sectors to invest in operating these local power sources.

5. Management and Construction Mechanism

a) The Ministry of Industry shall promptly issue economic and technical criteria, standardize rural power grids to uniformly apply nationwide, simplifying project establishment procedures, review, and construction design. Investment and construction of rural power grids must comply with current management and construction regulations.

b) Vietnam Power Corporation has the authority to decide on investment projects for rural power grids and local power sources in group C from various sources of capital (following the correct investment and construction procedures from preparation to implementation and operation). For small-scale projects, allow technical design according to planning and total budget estimates for approval (model design) for each region.

c) Provincial and municipal people's committees directly under the Central Government shall perform state management functions over:

- Power development planning,

- Implementing electricity monitoring work according to state regulations and the division of labor of the Ministry of Industry,

- Managing the development of new forms of energy,

- Inspecting electrical safety.

d) Entrust the Ministry of Industry to coordinate with the Ministry of Planning and Investment, the Ministry of Finance, the State Bank of Vietnam, and provincial and municipal people's committees to study and propose solutions for capital sources according to the annual plan to submit for approval. the Prime Minister for decision.

6. Management and Business Mechanism for Rural Electricity

a) Vietnam Power Corporation manages up to 22KV grids and substations. Local authorities manage distribution grids up to electricity meters.

b) The Ministry of Industry is responsible for guiding places with conditions to accept and manage power grids according to the above division of labor. Ensure safe, quality, efficient power grid acceptance and management, and reduce power losses.

c) Enterprises (including current models) must follow legal provisions when managing and operating rural electricity upon establishment. Electricity purchase and sale prices must follow guidelines from the Government Price Board.

7. Organizational Implementation Division of Labor

a) The Ministry of Industry performs state management functions, responsible for issuing the Regulation on Rural Power Grid Management, guiding its implementation, and conducting inspections.

b) The Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Finance to balance investment capital from the state budget (including ODA funds and preferential credit) for rural electrification projects until the year 2000 according to the annual plan of each locality.

c) Ministry of Finance:

- Coordinate with the Ministry of Planning and Investment to determine the annual state budget funding for rural electrification projects until the year 2000; direct the General Department of Investment Development to implement capital mobilization for the electricity sector and for localities to borrow preferentially to build power grids according to the plan.

- Direct and organize the full, timely, and accurate allocation of capital according to the approved budget and objectives of the investment projects within the scope of this Project Proposal.

d) The State Bank of Vietnam shall instruct commercial banks to apply preferential measures for households under policy categories with particularly difficult circumstances to obtain loans for investment purposes, and direct the mobilization of capital for the electricity sector and for localities to borrow preferentially to build power grids according to the mechanism approved annually by the Government.

đ) Provincial People's Committees directly under the Central Government shall closely cooperate with the Ministry of Industry and Vietnam Electricity Corporation to develop plans, investment projects, management, and operation of rural power grids to ensure that the Rural Electrification Program until the year 2000 achieves its set goals; implement state management over electricity activities in their respective localities.

e) The Government Price Management Board shall take the lead in establishing the cost of electricity and guiding the selling price of electricity to rural households in accordance with the Prime Minister's directive on setting ceiling prices. g) Vietnam Electricity Corporation shall be responsible for implementing the directives of the Ministry of Industry, relevant sectors, and provincial people's committees directly under the Central Government to achieve the planned objectives.

This Decision shall take effect fifteen days after the date of signature. The Minister of Industry, ministers, heads of ministerial-level agencies, heads of agencies under the Government, and chairpersons of provincial people's committees directly under the Central Government are responsible for enforcing this Decision.

Article 2. This Decision shall take effect fifteen days after the date of signature. The Minister of Industry, ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, chairpersons of provincial people's committees under the direct control of the central government are responsible for implementing this Decision.