Circular No. 23/2014/TT-BCT on the procedures for drafting, reviewing, and approving design and manufacturing contracts for auxiliary equipment of thermal power plants within Vietnam

CIRCULAR

Article 24Article ||| prescribes the procedures for drafting, reviewing, and approving design contracts, manufacturing within the country.

manufacturing within the country auxiliary equipment for thermal power plantsFor power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.

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Pursuant to Decree No. 95/2012/NĐ-CP dated November 12, 2012, of the Government, detailing the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to Decree No. 48/2010/NĐ-CP dated May 5, 2010 of the Government on contracts in construction activities;

On the basis of Law on Bidding No. 43/2013/QH13 dated November 26, 2013;

Implementing Decision No. 1791/QĐ-TTg dated November 29, 2012 of the Prime Minister approving the pilot mechanism for designing and manufacturing within the country auxiliary equipment for thermal power plants during the period from 2012 to 2025;

At the proposal of the Director General of the National Energy Agency;

The Minister of Industry and Trade issues this Circular prescribing the procedures for drafting, reviewing, and approving design and manufacturing within the country contracts for auxiliary equipment for thermal power plants.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

Thông tư này quy định chi tiết khoản 4 Điều 38 Luật Thủy sản số 18/2017/QH14 đã được sửa đổi, bổ sung tại điểm c khoản 21 Điều 14 Luật số 146/2025/QH15.

This Circular prescribes the procedures for drafting, reviewing, and approving design and manufacturing within the country contracts for auxiliary equipment for thermal power plant projects signed between the Project Owner and domestic contractors.

Thông tư này áp dụng đối với tổ chức, cá nhân có liên quan đến hoạt động kinh doanh đối tượng thủy sản nuôi chủ lực trên lãnh thổ Việt Nam.

a) Owners of thermal power plant projects assigned by the Prime Minister to implement the pilot design and manufacturing within the country of auxiliary equipment for thermal power plants as stipulated in Decision 1791/QĐ-TTg dated November 29, 2012 of the Prime Minister (hereinafter referred to as Decision 1791) and owners of other thermal power plant projects according to decisions of the Prime Minister;

b) Domestic mechanical enterprises participating in the design and manufacturing within the country of auxiliary equipment for thermal power plants as stipulated in Clause 5, Article 1 of Decision 1791 and enterprises approved by the Ministry of Industry and Trade to be added;

c) Domestic consulting units as stipulated in Clause 4, Article 1 of Decision 1791 and foreign consulting units selected to participate in the design and manufacture of auxiliary equipment for thermal power plants.

Article 2. Interpretation of Terms

In this Circular, the following terms shall be understood as follows:

1. A consortium of domestic contractors implementing the design and manufacturing of auxiliary equipment for thermal power plants (hereinafter referred to as the Consortium) is a combination of two or more entities, including design and manufacturing consultants and domestic mechanical enterprises, as stipulated in point b, Clause 4, Clause 5, Article 1 of Decision 1791 and enterprises approved by the Ministry of Industry and Trade.

2. Project sponsors is the owner of thermal power plant projects with auxiliary equipment assigned to implement design and manufacturing within the country as prescribed in Clause 1, Article 3 of this Circular.

3. Foreign design consultant is an organization or individual foreign design consultant selected by the Consortium to provide design copyright, transfer design technology, and assist in the design and manufacture of auxiliary equipment for thermal power plants.

4. Foreign material and equipment supplier is a foreign contractor selected by the Consortium to supply single items of materials and equipment that have not yet been produced domestically, to integrate and synchronize according to the design and manufacture of equipment components, for projects specified in point b, Clause 1, Section 1 of Decision 1791 must be accompanied by conditions for transferring design and manufacturing technology.

5. Design and manufacturing contract for auxiliary equipment for thermal power plants (hereinafter referred to as the Contract) is a written agreement between the Project Owner and the Consortium to implement the design and manufacturing within the country of auxiliary equipment for thermal power plants.

Article 3. List of projects and list of equipment components to be designed and manufactured within the country

1. List of projects

a) Thermal power plant projects: Quynh Lap 1, Song Hau 1, Quang Trach 1 implemented according to Decision 1791;

b) Other thermal power plant projects implemented according to decisions of the Prime Minister;

c) Thermal power plant projects implemented under the Build-Operate-Transfer (BOT) contract form (hereinafter referred to as BOT thermal power plant projects).

2. List of equipment components

List of equipment components for thermal power plants assigned to design and manufacture within the country as stipulated in Clause 3, Article 1 of Decision 1791.

Chapter II

PROCEDURES FOR DRAFTING, REVIEWING, AND APPROVING DESIGN AND MANUFACTURING WITHIN THE COUNTRY CONTRACTS FOR AUXILIARY EQUIPMENT FOR THERMAL POWER PLANTS

Article 4. Procedures and formalities for approving the Consortium of contractors for designing and manufacturing within the country of auxiliary equipment for thermal power plants

1. Proposal for the Consortium

a) Content of the proposal dossier

Based on the scope and volume of work for the design and manufacture of auxiliary equipment for each specific project, the Institute of Mechanical Research will coordinate with the owners of projects as stipulated in point a and point b, Clause 1, Article 3 of this Circular and mechanical enterprises to submit one set of dossier to the Ministry of Industry and Trade for approval of the Consortium to implement the design and manufacture within the country of auxiliary equipment for the project. The dossier includes the following main contents:

- Division of work among the Consortium and member enterprises within the Consortium towards specialized design and manufacture of certain types of auxiliary equipment, in accordance with their capacity;

- Request for approval of the Consortium in accordance with Appendix 1 issued together with this Circular;

- List of member enterprises within the Consortium and the head of the Consortium;

- Capability dossiers of enterprises;

- Plan for the implementation of the design and manufacture of auxiliary equipment for thermal power plants.

b) Method of submitting the dossier: direct submission or via postal service.

2. Approval of the Consortium

a) Within five working days from the date of receipt of the dossier, the General Department of Energy must issue a document requesting additional or amended content in the dossier if the dossier submitted for approval of the Consortium is incomplete for review;

b) Within five working days from the date of receipt of the document from the General Department of Energy, the Institute of Mechanical Research is responsible for supplementing the dossier fully for approval of the Consortium;

c) Within twenty working days from the date of receipt of a complete and valid dossier, the General Department of Energy will examine and submit to the Ministry of Industry and Trade for approval the list of Consortia participating in the design and manufacture within the country of auxiliary equipment for thermal power plant projects.

Participation of foreign design consultants in the Consortium

a) The Institute of Mechanical Research will coordinate with the members of the Consortium to propose a subcontractor foreign design consultant to support design, manufacture, and transfer design and manufacturing technology for auxiliary equipment for thermal power plants which the Consortium is responsible for designing and manufacturing;

b) The Consortium agrees with the Project Owner on the scope and value of work undertaken by the foreign design consultant to be included in the Consortium's proposal dossier.

Article 5. Procedures for drafting, reviewing, and approving bidding plans for projects

1. For projects as stipulated in point a, Clause 1, Article 3 of this Circular

a) Prepare tender plans

The project sponsor shall be responsible for preparing and submitting to the Ministry of Industry and Trade the tender plans for projects, wherein the equipment items specified in Clause 2, Article 3 of this Circular shall be divided into one or more tenders to be assigned to consortiums for implementation;

The contents of the tender plan shall be carried out in accordance with the provisions at point a, Clause 2, Article 1 of Decision 1791 and the Government Decree guiding the implementation of the Law on Bidding regarding the selection of contractors.

b) Review and approve tender plans

Within twenty (20) working days, based on complete and valid documents, the General Department of Energy shall be responsible for organizing the review and submitting to the Ministry of Industry and Trade for approval of the tender plans for the projects;

c) Approve tender plans

Within ten (10) working days from the date the Ministry of Industry and Trade approves the tender plans, the project sponsor shall be responsible for approving the tender plans for the projects.

2. For projects stipulated in point b, Clause 1, Article 3 of this Circular

The project sponsor shall be responsible for preparing and submitting to the Ministry of Industry and Trade for approval the tender plans for tenders assigned to consortiums to implement the design and manufacture of auxiliary power plant equipment domestically. The procedures for preparing, reviewing, and approving the tender plans for these tenders shall be applied as prescribed in this Clause.

Article 6. Preparation of Contracts for Domestic Design and Manufacturing of Auxiliary Equipment for Projects Implemented under Decision 1791

Based on the Request for Proposal issued by the project sponsor, the consortium shall prepare and submit a Proposal to the project sponsor for evaluation, and the parties shall proceed to negotiate the Contract. The Contract must include the following main contents:

1. Scope of the Contract

The scope of the Contract includes all works related to the design and domestic manufacturing of auxiliary thermal power plant equipment, comprising two main parts as follows:

a) Domestic goods and services, including: design consultancy and manufacturing; machining and manufacturing of equipment by mechanical enterprises; transportation of manufactured equipment to the construction site; supervision and guidance for installation of equipment; testing and acceptance of equipment systems and other agreed-upon works;

b) Foreign goods and services, including: foreign design consultancy, purchase of design copyrights, technology transfer and design support; types of materials, equipment, and components not yet produced domestically that need to be purchased for processing, manufacturing, assembly, and other agreed-upon works.

2. Determination of the Value of Goods and Services and Currency Used

a) Domestic goods and services

- The price of goods and services is determined based on the volume of work for design and manufacturing and the specialized budget estimate norms for thermal power plant equipment design and manufacturing issued in Decision 2572/QĐ-BCT dated April 23, 2013, and the basic data for determining the unit price for the manufacture of auxiliary thermal power plant equipment published in Document No. 4233/BCT-TCNL dated May 15, 2013 by the Ministry of Industry and Trade;

- Transportation costs for equipment to the construction site are calculated based on current relevant regulations.

b) Foreign goods and services

For materials, equipment, and components not yet produced domestically (the consortium imports directly or purchases from the domestic market which has imported):

- The price for calculation in the value of the design and manufacturing contract is temporarily estimated based on the reference prices of similar equipment of the same type already implemented or quoted by material and equipment suppliers at the time of budget preparation;

- The acceptance and payment price is based on the contract signed between the consortium and the foreign material and equipment supplier (selected by the consortium through competitive bidding and approved by the project sponsor).

c) Currency Used

- For domestic goods and services and materials, equipment, and components not yet produced domestically that need to be purchased from domestic importers: Vietnamese Dong (VND);

- For materials, equipment, and components purchased from abroad and foreign design consultancy: US Dollar (converted to VND at the time of signing the contract).

d) A 5% reduction in the contract value shall be applied to tenders implemented through direct award.

3. Form of the Design and Manufacturing Contract

The design and manufacturing contract is a combined form of contract according to the scope of works in the contract, including:

a) For domestic goods and services, it is a contract based on adjusted unit prices. Adjustments to unit prices shall be made when there is a decision to adjust labor and raw material prices by the competent state authority;

b) For foreign design and manufacturing consultancy services, it is a contract based on fixed unit prices and time;

c) For materials, equipment, and components not yet produced domestically that need to be imported directly or purchased from domestic importers, it is a lump-sum contract.

Article 7. Documents for submission to approve the Design and Manufacturing Contract

1. The Project Owner shall submit to the General Department of Energy a set of documents requesting approval of the Contract, including:

a) A proposal requesting approval of the Contract in accordance with the content stipulated in Appendix 2 issued together with this Circular;

b) One (1) draft Contract signed by all parties, accompanied by related documents including: decision approving the investment project, decision approving the bidding plan, assignment of the Consortium to carry out design and manufacturing, minutes of contract negotiation between the Project Owner and the Consortium.

2. Method of submitting documents: Directly or via postal service.

Article 8. Approval of the Design and Manufacturing Contract

1. Within ten (10) working days from the date of receipt of complete and valid documents, the General Department of Energy shall provide comments on the Design and Manufacturing Contract. In case the General Department of Energy does not provide comments within the above period, the Design and Manufacturing Contract shall be deemed approved.

2. In case the General Department of Energy provides comments on the Contract, the Project Owner must provide explanations to the General Department of Energy within five (5) working days from the date of receipt of the comments before officially signing the Contract.

Article 9. Establishment of Domestic Design and Manufacturing Contracts for Auxiliary Equipment of Other Thermal Power Projects Pursuant to the Decision of the Prime Minister

1. Based on the Consortium approved by the Ministry of Industry and Trade, the Project Owners of thermal power projects shall be responsible for signing contracts with the Consortiums to organize the implementation of domestic design and manufacturing work for auxiliary equipment of the projects.

2. The Project Owner requests the Engineering, Procurement, and Construction (EPC) general contractor (hereinafter referred to as the EPC general contractor, in cases where the project is implemented under the EPC model) and the main equipment supplier (in cases where the project is not implemented under the EPC model) to propose technical and technological requirements for auxiliary equipment to be designed and manufactured domestically and manage the interface between main equipment items and auxiliary equipment.

3. The main contents required in the Contract shall be applied as prescribed in Article 6 of this Circular. As for materials, equipment components domestically not yet produced, the acceptance price and payment shall be based on the results of selecting foreign material and equipment suppliers according to current regulations.

4. The documents and procedures for approving the Contract shall be applied as prescribed in Articles 7 and 8 of this Circular.

Article 10. Establishment of Domestic Design and Manufacturing Contracts for Auxiliary Equipment of BOT Thermal Power Projects

1. The Ministry of Industry and Trade shall negotiate with the Project Owner of the BOT thermal power project regarding the list of auxiliary equipment items to be designed and manufactured domestically and approve the Consortium to implement.

2. The Project Owners of BOT thermal power projects shall be responsible for signing contracts with the Consortiums approved by the Ministry of Industry and Trade to organize the implementation of domestic design and manufacturing work for auxiliary equipment of the projects.

3. The Project Owner shall implement the provision of technical and technological requirements for auxiliary equipment and management of the interface between main equipment items and auxiliary equipment as prescribed in Clause 2 of Article 9 of this Circular.

4. The main contents required in the Contract, the acceptance price, and payment for materials, equipment components domestically not yet produced shall be applied as prescribed in Clause 3 of Article 9 of this Circular.

Article 11. Reporting on the Implementation of Contracts

Quarterly, the Joint Venture shall be responsible for reporting to the General Department of Energy - Ministry of Industry and Trade on the implementation of the design and domestic manufacturing of auxiliary equipment for thermal power plants assigned to them. The contents of the report are specified in Appendix 3 attached to this Circular.

Chapter III

IMPLEMENTATION REGULATIONS AND ORGANIZATION OF IMPLEMENTATION

Article 12. Effective Date

This Circular takes effect from September 10, 2014.

Article 13. Implementation Organization

1. The General Department of Energy shall be responsible for monitoring, supervising, and inspecting the implementation of this Circular.

2. Investors of thermal power plant projects, mechanical design and manufacturing enterprises, and related organizations and individuals shall be responsible for implementing this Circular.

3. In the course of implementation, if there are any difficulties, relevant agencies, organizations, and individuals shall reflect these issues in writing to the General Department of Energy for consolidation and proposal to the Ministry of Industry and Trade to consider amending and supplementing this Circular./.