Decision No. 40/2003/QD-TTg On amending certain contents of the Power Development Plan for Vietnam for the period 2001-2010 with consideration of prospects up to 2020

DECISION

Regarding the adjustment of certain contents within the power development planning for Vietnam's period 2001-2010 with consideration of prospects up to 2020

PRIME MINISTER

Pursuant to the Law on Government Organization dated 25/12/2001;

Considering the proposal of the Ministry of Industry (document No. 4505/CV-KHĐT dated November 13, 2002), the appraisal opinions of the State Appraisal Council on Investment Projects (document No. 19/TĐNN dated January 29, 2003); the opinions of relevant Ministries and sectors regarding the adjustment of the Power Development Planning for Vietnam's period 2001-2010 with consideration of prospects up to 2020.

Pursuant to …;:

Article 1. Adjusting certain contents within the Power Development Planning for Vietnam's period 2001-2010 with consideration of prospects up to 2020 (referred to as the adjusted Power Plan V hereinafter):

1. On electricity demand: 2005: 48.5-53.0 billion kWh; 2010: 88.5-93 billion kWh.

2. On power source development:

The Ministry of Industry directs the Vietnam Electricity Corporation and other related investors to accelerate the construction progress of power source and grid projects; upgrade existing power sources; improve operational and management methods to meet increasing electricity demand, ensuring quality, efficiency, and conservation.

- List of power source projects where the Vietnam Electricity Corporation is the investor as stated in Appendix 1 (attached).

- List of power source projects where investors not belonging to the Vietnam Electricity Corporation are the investors as stated in Appendix 2 (attached).

Encourage enterprises from all economic sectors to participate in investment under the form of Joint Stock Companies, in which state-owned companies hold controlling shares for coal-fired power projects in the Quang Ninh area and hydropower projects with capacity around 100 MW.

- The Ministry of Industry shall promptly issue electricity purchase prices and announce specific project lists for enterprises not belonging to the Vietnam Electricity Corporation to participate in.

The capacity, location, and construction time of power source projects will be decided by competent authorities before the investor approves the feasibility study report of each specific project.

3. On grid development:

a) Accelerate the construction progress of high-voltage grid projects, specifically the 500 kV transmission lines from Phu My to Nha Be - Phu Lam; Playcu to Phu Lam; Playcu to Doc Soi - Da Nang - Ha Tinh - Thuong Tin according to the planned schedule.

b) Adjusted grid projects (see list in Appendix 3).

4. On Investment Capital:

a) The Vietnam Electricity Corporation is authorized to mobilize all available capital to invest in power sources and grids under self-financing mechanisms (ODA loans, domestic and foreign bank loans, export credit from equipment suppliers, equipment payment through goods, bond issuance, equity contributions); continue implementing the central-local-state-people joint mechanism for rural grid development.

b) Encourage domestic and foreign investors to participate in building power sources and distribution grids under various investment forms: Independent Power Producers (IPPs), Build-Transfer (BT) contracts, Build-Operate-Transfer (BOT) contracts, joint ventures, Joint Stock Companies.

5. On certain mechanisms and policies:

a) To expedite the implementation of projects, allow the Vietnam Electricity Corporation to bypass the preparation of Preliminary Feasibility Study Reports for power source and grid projects already listed in the appendices of this Decision.

b) Allow the Vietnam Electricity Corporation to designate domestic consulting agencies as main consultants for power source and grid projects. Complex issues will be contracted out to foreign consulting agencies for assistance.

c) The Ministry of Industry shall coordinate with the Ministry of Finance to study and submit to the Prime Minister a mechanism to support budget funding for power source and grid investments serving economic and social development in remote areas; provide funding for local energy sources without national grid connections; separate public service activities from the business operations of the Vietnam Electricity Corporation.

d) Commercial banks are permitted to lend the Vietnam Electricity Corporation an amount exceeding 15% of their own capital for power projects if deemed effective and after the feasibility study report of the project has been approved by competent authorities.

đ) Provincial People's Committees have the responsibility to closely cooperate with the Ministry of Industry, the Vietnam Electricity Corporation, and other investors to resolve compensation and resettlement issues related to power source and grid projects according to the approved schedules.

Article 2. This Decision takes effect 15 days after its signing date. Other contents shall be implemented in accordance with Decision No. 95/2001/QĐ-TTg dated June 22, 2001 of the Government.

Article 3. The Minister of Industry, Heads of relevant Ministries and sectors, Chairmen of Provincial People's Committees, Board of Directors and Management Board of the Vietnam Electricity Corporation are responsible for enforcing this Decision.