Decision No. 41/2017/QD-TTg on the procedures and formalities for transferring state-funded power projects to the Vietnam Electricity Corporation for management

PRIME MINISTER -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
Number: 41/2017/QĐ-TTg	Hanoi, September 15, 2017

 

Pursuant to …;

REGULATIONS ON PROCEDURES AND FORMALITIES FOR TRANSFERRING ELECTRICITY PROJECTS FUNDED BY STATE CAPITAL TO THE MANAGEMENT OF VIETNAM ELECTRICITY CORPORATION

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to the Electricity Law dated December 3, 2004;

Pursuant to the Law on Legislative Regulatory Documents dated June 22, 2015;

At the proposal of the Minister of Finance;

The Prime Minister issues this Decision to regulate procedures and formalities for transferring electricity projects funded by state capital to the management of Vietnam Electricity Corporation.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

Article 1. This Decision regulates procedures and formalities for transferring electricity projects funded by state capital to the management of Vietnam Electricity Corporation.

In cases where electricity projects are funded by loans and the agencies, organizations, or units owning the assets have not yet completed loan repayment, such agencies, organizations, or units shall continue managing the electricity projects and bear the responsibility for completing loan repayment; after completing loan repayment, the agencies, organizations, or units owning the assets shall report to the competent authority to decide on transferring the assets to the management of Vietnam Electricity Corporation according to the provisions of this Decision.

Article 2. The handover of assets, which are power facilities or components of power facilities that have been completed under the Rural, Mountainous, and Island Power Supply Program from 2013 to 2020, shall be carried out in accordance with Decision No. 2081/QĐ-TTg dated November 8, 2013 of the Prime Minister and related guiding documents.

Article 2. Applicability

1. Agencies, organizations, or units handing over electricity projects (referred to collectively as the Handing-over Party) include:

c) Land users as prescribed by the Land Law.

b) Military forces;

c) Public service organizations;

d) Political organizations and political-social organizations;

đ) Project Management Units using state capital;

e) Enterprises entrusted with the role of project owner or manager of electricity projects where the value of the project is not included as part of the state capital at the enterprise.

2. Vietnam Electricity Corporation (the Receiving Party).

3. Other organizations and individuals related thereto.

Article 3. Explanation of Terms

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

Article 3. Electricity projects include: 110kV transmission lines and substations, medium and low voltage power lines, and distribution substations funded by state capital currently managed and used by agencies, organizations, or units.

Article 4. State capital includes: state budget capital; official development assistance capital; preferential loans from foreign donors; capital from the fund for developing public services; state investment credit capital; credit guaranteed by the Government.

Chapter II

SPECIFIC PROVISIONS

Article 4. Procedures and formalities for transferring electricity projects

Clause 1. Agencies, organizations, or units with electricity projects funded by state capital shall prepare a proposal for transfer and submit it to their superior management agency (if applicable) to report to ministries, ministerial-level agencies, government agencies, or central-level agencies (hereinafter referred to as ministries or central-level agencies) for agencies, organizations, or units under central management, and provincial People's Committees for those under local management.

The proposal for asset transfer includes:

a) A letter proposing asset transfer from the agency, organization, or unit owning the asset: one original copy;

b) A letter proposing asset transfer from the superior management agency (if applicable): one original copy;

c) An asset transfer list according to Model 01a attached to this Decision: one original copy;

d) Related documents concerning the asset (if any): one copy.

Clause 2. Within thirty days from the date of receiving complete and valid files, ministries, central-level agencies, or provincial People's Committees shall be responsible for compiling and sending Vietnam Electricity Corporation for comments on accepting the assets.

Clause 3. Within thirty days from the date of receiving the request from ministries, central-level agencies, or provincial People's Committees, Vietnam Electricity Corporation shall provide comments on accepting the assets and send them to the ministries, central-level agencies, or provincial People's Committees requesting the transfer (two original copies).

Clause 4. Based on Vietnam Electricity Corporation's comments, ministries, central-level agencies, or provincial People's Committees shall instruct the agencies, organizations, or units with electricity projects to cooperate with Vietnam Electricity Corporation to conduct an inventory according to Model 02 attached to this Decision and determine the asset value according to Article 8 of this Decision. For damaged assets within the electricity projects that cannot be used, the agencies, organizations, or units with electricity projects shall handle them in accordance with the law.

Clause 5. Based on the results of the inventory and determination of asset value, ministries, central-level agencies, or provincial People's Committees shall periodically (when there are changes) prepare a proposal for asset transfer and send it to the Ministry of Finance for consolidation and reporting to the Prime Minister for consideration and decision on asset transfer.

The proposal for asset transfer includes:

a) A letter proposing asset transfer from ministries, central-level agencies, or provincial People's Committees: one original copy;

b) An asset transfer list according to Model 01b attached to this Decision: one original copy;

c) A letter proposing acceptance of assets from Vietnam Electricity Corporation: one original copy;

d) Copies of the documents specified in Clause 1 of this Article: one copy.

Clause 6. Within thirty days from the date of receiving complete and valid files, the Ministry of Finance shall be responsible for consolidating and reporting to the Prime Minister for consideration and decision on asset transfer within its jurisdiction.

The content of the Decision on transferring electricity projects shall be implemented according to Model 03 attached to this Decision.

Article 5. Implementation of handover and acceptance of electrical works

1. Within thirty days from the date of the Prime Minister's Decision on reassignment, the transferring party shall take the lead and coordinate with the receiving party to organize the handover and acceptance of the electrical works along with the files as stipulated in Article 6 of this Decision.

2. The handover and acceptance of assets must be recorded in a protocol. The main contents of the handover and acceptance protocol for electrical works include: the transferring party; the receiving party; the list of assets being handed over; the value of the assets being handed over. The handover and acceptance protocol for assets shall be carried out according to Model No. 04 attached to this Decision.

Article 6. Handover and acceptance files for electrical works

Handover and acceptance files for electrical works consist of original files and files established at the time of handover and acceptance.

1. Original files include:

a) Investment decision, technical design, construction drawings, and approved budget estimates related to the electrical works, completion acceptance report for the completed works and independent components related to the electrical works: one certified copy;

b) Accounting records and certificates related to the determination of the original cost and remaining value of the power grid assets, capital structure of investment: one copy;

c) Approved final settlement report by the competent authority (if there is an approved final settlement report): one copy;

d) Completion files, layout diagrams of the right-of-way and substation floor plans: one copy;

e) Land-related files concerning land allocation or transfer for investment in the works and other relevant documents (if any): one copy.

The copies provided under this clause must bear the signature and stamp of confirmation of the transferring party.

2. In addition to the files specified in Clause 1 of this Article, the transferring party shall cooperate with the receiving party to establish files at the time of handover and acceptance including:

a) As-built layout diagram of the current status of the electrical works prepared jointly by the transferring and receiving parties at the time of handover to serve as a legal basis for future operation and management (original);

b) Protocol of handover and acceptance of assets (original).

3. In cases where the files specified in points a, c, d, and e of Clause 1 of this Article are not available or have been lost, the head of the transferring party shall issue a confirmation letter to the receiving party and shall be responsible for confirming the loss of the files or the absence of original files.

Article 7. Responsibilities of the transferring party and the receiving party

1. The transferring party is responsible for:

a) Preparing complete files as stipulated in Clause 1 of Article 6 of this Decision, taking the lead in conducting inventory and determining the value of the assets to be handed over together with the receiving party;

b) Carrying out the handover of assets and related files, creating favorable conditions for the receiving party to manage and operate;

c) Recording the reduction of assets and the value of assets handed over.

2. The receiving party is responsible for:

a) Cooperating with the transferring party to conduct inventory and determine the value of the assets to be handed over;

b) Carrying out the acceptance of assets and related files;

c) Recording the increase in state investment capital at the Group;

d) Organizing the management, operation, maintenance, and repair of assets in accordance with the provisions of the law.

Article 8. Determination of the Value of Electrical Works Being Transferred

1. In cases where the electrical works are managed and recorded in accordance with the current legal regulations, the value of the assets being transferred is determined by the remaining value of the electrical works being monitored in the accounting books at the time of inventory and valuation.

2. In cases where the electrical works have not been recorded, depreciation has not been calculated for the period of use but all necessary files and certificates regarding the approval of the final settlement of the works, usage period, and asset value are still available, the asset value is determined as follows:

Value of Assets Being Transferred

=

Final Settlement Value of the Electrical Works

-

Accumulated Depreciation According to Legal Provisions Up to the Time of Inventory and Valuation of Assets

3. In cases where the electrical works have not been recorded, depreciation has not been calculated for the period of use, and there are no files and certificates regarding the approval of the final settlement of the works, but the works have been fully depreciated and are still usable, the transferring party shall report to the competent management agency to establish a Committee to Determine Asset Value or cooperate with the receiving party to hire an organization with appraisal functions to determine the asset value. If a Committee to Determine Asset Value is established, its members shall include representatives of the transferring party, the receiving party, and other members (if necessary).

The determination of the asset value must ensure consistency with the market value of similar assets and the remaining quality of each asset, specifically:

Value of Assets Being Transferred

=

Market Value of Similar Assets

-

Remaining quality percentage of the asset

4. In cases where the assets have not been approved by the competent state authority for final settlement, the value of the assets to be handed over shall be temporarily calculated in the following order of priority:

a) Proposed final settlement value;

b) Value determined by the A-B Acceptance Report;

c) Approved budget estimate of the electrical works.

Within seven working days from the date of approval of the final settlement by the competent state authority, the transferring party shall notify the receiving party in writing along with one copy of the approval document to adjust the asset value according to the approved final settlement value.

Article 9. Handling of expenses arising during the transfer and acceptance of assets

1. Expenses related to the transfer of power facilities include:

a) Costs for inventory and valuation of assets;

b) Other costs directly related to the transfer and acceptance of assets (if any).

2. The level of expenditure for the expenses specified in Clause 1 of this Article shall be implemented according to standards, norms, and regulations set by competent state agencies; in cases where such standards, norms, and regulations have not been established by competent state agencies, the head of the unit shall decide on the level of expenditure to ensure compliance with current financial management regulations of the State and bear responsibility for their decision.

3. The sources for paying the expenses under Clause 1 of this Article shall be carried out as follows:

a) Direct costs for staff involved in the transfer and acceptance shall be paid by the party having staff involved in the transfer and acceptance in accordance with regulations;

b) Other costs directly related to the transfer and acceptance of assets shall be paid by the receiving party and recorded as part of the operating expenses of the enterprise.

Article 10. Method of transferring power facilities

The transfer of power facilities shall be carried out by increasing the state investment capital at Vietnam Electricity Corporation according to the value of the transferred power facilities and without repayment of capital. The agency, organization, or unit transferring the power facility shall record the reduction of assets, original cost, and remaining value of the asset at the agency, organization, or unit in accordance with the provisions of the law.

Article 11. Handling of land attached to transferred power facilities

1. In cases where the power facility is located within the premises of the workplace, the operational base, or within the scope of infrastructure assets that cannot be separated from the premises of the workplace, the operational base, or the scope of infrastructure assets, the transferring party continues to manage and use the area of land attached to the transferred power facility; implement signing agreements with the receiving party and assume responsibility for ensuring favorable conditions for the receiving party to carry out maintenance, repair, and operation management of the received power facility.

2. In cases where the power facility is located outside the premises of the workplace, the operational base, or the scope of infrastructure assets or can be separated from the premises of the workplace, the operational base, or the scope of infrastructure assets, both the area of land attached to the power facility shall be transferred and accepted. The receiving party has the responsibility to coordinate with the transferring party to contact relevant local authorities to complete procedures for leasing the land attached to the received power facility. The area of land attached to the power facility falls within the category of land not subject to land lease fees or land use fees.

Chapter III

IMPLEMENTATION

Article 12. Effective date and transitional provisions

1. This Decision takes effect from November 1, 2017.

2. Transitional Provisions:

a) For power facilities that have been approved for transfer by the Prime Minister and completed the transfer and acceptance of assets before the effective date of this Decision, the provisions of this Decision shall not apply.

b) For power facilities that have been approved for transfer to Vietnam Electricity Corporation for management by the Prime Minister before the effective date of this Decision but have not yet completed the transfer and acceptance, subsequent actions shall be carried out in accordance with the provisions of this Decision.

c) For power facilities that have not been approved for transfer to Vietnam Electricity Corporation for management by the Prime Minister, but the agency, organization, or unit has temporarily transferred management and operation to Vietnam Electricity Corporation, the agency, organization, or unit shall report to the competent authority to complete the procedures for transferring the power facility to Vietnam Electricity Corporation for management in accordance with this Decision.

Article 13. Responsibility for Implementation

1. Ministries, ministerial-level agencies, government agencies, central-level agencies, provincial People's Committees, and municipal People's Committees directly under the Central Government shall be responsible for directing subordinate agencies, organizations, and units to review and compile a list of power facilities invested with state capital that meet the conditions for transfer as stipulated in this Decision, cooperate with Vietnam Electricity Corporation to conduct inventory and valuation of assets, consolidate, and submit to the Ministry of Finance for consolidation and submission to the Prime Minister for consideration and decision.

a) Compiling the list of power plants providing ancillary services according to the transmission system regulations and the national black start and system recovery regulations issued by the Ministry of Industry and Trade;

a) Direct and guide the Power Corporations to cooperate with the transferring party to accept and manage the operation of power facilities in accordance with regulations.

b) Annually (no later than March 31), consolidate and report to the Ministry of Industry and Trade and the Ministry of Finance on the results of the transfer and acceptance of power facilities, increase in capital, and repayment of capital of the previous year.

 

Place of Receipt: - Central Party Committee Secretariat; - Prime Minister, Deputy Prime Ministers; - Ministries, agencies equivalent to ministries, government agencies; - Provincial People's Councils, Provincial People's Committees; - Central Party Office and Party Committees; - General Secretary's Office; - President's Office; - National Assembly's Ethnic Council and its Committees; - National Assembly's Office; - Supreme People's Court; - Supreme People's Procuracy; - State Audit Office; - National Financial Supervisory Commission; - Social Policy Bank; - Vietnam Development Bank; - Central Committee of the Vietnam Fatherland Front; - Central agencies of mass organizations; - Vietnam Electricity Corporation; - VPCP; BTCN, all PCN, Assistant PM, CEO of the Official Website Portal, all Departments, Bureaus, subordinate units, Official Gazette; - File: VT, KTTH (2b). PC

PRIME MINISTER Nguyen Xuan Phuc

 

ANNEX

(Attached to Decision No. 41/2017/QĐ-TTg dated 2017 of the Prime Minister)

Form No. 01a	List of power facilities invested with state capital
Form No. 01b	List of power facilities invested with state capital
Form No. 02	Inventory and valuation record of power facilities
Implementation Report of Production Projects of Supporting Industry Products Confirmed with Incentives	Prime Minister's Decision on the transfer of power facilities invested with state capital to Vietnam Electricity Corporation for management
Form number 04	Transfer and acceptance record of power facilities

 

Form No. 01a

……………….
……………….
       --------

LIST OF POWER FACILITIES INVESTED WITH STATE CAPITAL

No.	Name of power facility/project	Scale				Year put into operation	Original cost according to accounting records (VND)						Remaining value (VND)	Approval decision for budget estimate/settlement(*)		Remarks
		110kV transmission line length (m)	Medium voltage (m)	Low voltage (m)	Transformer capacity (kVA)		Total	Of which						Date, month, year	Value (VND)
								State Budget	Official Development Assistance funds	Preferential loans	Fund for development activities	Credit funds
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)	(12)	(13)	(14)	(15)	(16)	(17)
	Total:

(*) In cases where the project has been settled, it should be recorded according to the approval decision for settlement; in cases where the project has not been settled, it should be recorded according to the approval decision for budget estimate.

(**) In cases where there is no tracking on accounting books, the columns for original cost and remaining value should be omitted, and "Assets not recorded on accounting books" should be noted in the "Remarks" column.

 

Form No. 01b

……………….
……………….
       --------

LIST OF POWER FACILITIES INVESTED WITH STATE CAPITAL

No.

Name of power facility/project

Scale

Year put into operation

Original cost according to accounting records (VND)

Remaining value (VND)

Approval decision for budget estimate/settlement()

Remarks

110kV transmission line length (m)

Medium voltage (m)

Low voltage (m)

Transformer capacity (kVA)

Total

Of which

Date, month, year

Value (VND)

State Budget

Official Development Assistance funds

Preferential loans

Fund for development activities

Credit funds

A

Name of agency, organization, or unit managing the power facility

1

…..

2

…..

B

Name of agency, organization, or unit managing the power facility

1

….

2

….

Total:

(*) In cases where the project has been settled, it should be recorded according to the approval decision for settlement; in cases where the project has not been settled, it should be recorded according to the approval decision for budget estimate.

(**) In cases where there is no tracking on accounting books, the columns for original cost and remaining value should be omitted, and "Assets not recorded on accounting books" should be noted in the "Remarks" column.

 

Form No. 02

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
---------------

RECORD OF INVENTORY AND VALUATION OF ELECTRICITY PROJECTS

Pursuant to Decision No. ……/2017/QD-TTg dated      /    /2017 of the Prime Minister stipulating the procedures and formalities for transferring state-funded electricity projects to the Vietnam Electricity Corporation for management;

Today, on …../……/……, we include:

A- Representatives of the agency, organization, or unit transferring the electricity project: ……………………

1- Mr./Ms. …, position …

2- Mr./Ms. …, position …

3-…….

B- Representatives of the Vietnam Electricity Corporation (or the Electricity Corporation authorized by the Vietnam Electricity Corporation):

1- Mr./Ms. …, position …

2- Mr./Ms. …, position …

3- ......

Based on the opinions of …⁽¹⁾ and the agreement to accept from the Vietnam Electricity Corporation, both parties conduct the inventory and valuation of the electricity project as the basis for reporting to the competent authority to decide on the transfer according to the attached Appendix.

Opinions of the parties involved in the inventory and valuation of assets:

.....................................................................................................................................

.....................................................................................................................................

.....................................................................................................................................

.....................................................................................................................................

The record is made in four copies: one copy sent to the ministry/central agency/provincial People's Committee, one copy sent to the Vietnam Electricity Corporation, one copy sent to the Transferor, and one copy sent to the Transferee./.

 

REPRESENTATIVE OF PARTY A (Signature and stamp)

REPRESENTATIVE OF PARTY B (Signature and stamp)

_______________

(1) Name of the ministry, central agency, or provincial People's Committee managing the agency, organization, or unit with the transferred electricity project

 

Appendix

LIST OF POWER FACILITIES INVESTED WITH STATE CAPITAL

(Attached to the Record of Inventory and Valuation of Assets dated ... month ... year)

No.	Name of power facility/project	Scale			Year put into operation	Approval decision for budget estimate/settlement(*)		Value of the transferred electricity project		Remarks
		Medium voltage (m)	Low voltage (m)	Transformer capacity (KVA)		Date, month, year	Value (VND)	Original cost (VND)	Remaining value (VND)
	…
	…
	....
	Total:

 

HEAD OF THE TRANSFEROR (Signature, full name, stamp)

HEAD OF THE TRANSFeree (Signature, full name, stamp)

(*) In cases where the component of the electricity project has been approved for settlement, it shall be recorded according to the Approval Decision for Settlement; in cases where the component of the electricity project has not yet been approved for settlement, it shall be recorded according to the Approval Decision for Budget Estimate.

 

Implementation Report of Production Projects of Supporting Industry Products Confirmed with Incentives

PRIME MINISTER -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
No.:       /QĐ-TTg	Hanoi, on    month    year

 

Pursuant to …;

On the transfer of state-funded electricity projects to the Vietnam Electricity Corporation for management

PRIME MINISTER

||| Pursuant to the Law on Organization of the Government dated June 19, 2015;

Based on ... ⁽¹⁾;

Considering the proposal of the Minister of Finance,... ⁽²⁾, ............................. ⁽³⁾,.

DECISION:

Article 1. Transfer state-funded electricity projects to the Vietnam Electricity Corporation for management according to the attached List. The transfer will be carried out through the method of increasing state investment capital at the Vietnam Electricity Corporation.

Article 2. The handover and acceptance of assets as stipulated in Article 1 of this Decision shall be implemented in accordance with Decision No.      /2017/QĐ-TTg dated     /     /2017 of the Prime Minister stipulating the procedures and formalities for transferring state-funded electricity projects to the Vietnam Electricity Corporation for management.

Article 3. This Decision takes effect from the date of signature … ⁽⁴⁾./.

 

Place of Receipt: - ………….; - To be filed: VT, (5) (6).

PRIME MINISTER (7) (Signature, stamp) Full Name

______________

(1) Name of the document stipulating the authority to decide on asset transfers by the Prime Minister.

(2) Clearly state the Minister, Head of Central Agency, or Chairman of Provincial People's Committee.

(3) Clearly state the Vietnam Electricity Corporation.

(4) Responsibilities of the implementing agency, guidance, monitoring, and inspection.

(5) Abbreviation of the drafting unit and number of copies retained (if necessary).

(6) Abbreviation of the typist's name and number of copies issued.

(7) If signed by Deputy Prime Minister, then specify:

DEPUTY PRIME MINISTER

DEPUTY PRIME MINISTER

 

Form number 04

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
---------------

RECORD OF HANDOVER AND ACCEPTANCE OF ELECTRICITY PROJECTS

Pursuant to Decision No.……/2017/QD-TTg dated      /    /2017 of the Prime Minister stipulating the procedures and formalities for transferring state-funded electricity projects to the Vietnam Electricity Corporation for management;

Pursuant to Decision No. …/QĐ-TTg dated ……/….. /…… of the Prime Minister on the transfer of electricity projects;

Today, on ………/……./………, we include:

A- Transferor: .................................................................................................................

Representatives of the Transferor include:

1- Mr./Ms. …, position …

2- Mr./Ms. …, position …

3- ...

B- Transferee: .................................................................................................................

Representatives of the Transferee include:

1- Mr./Ms. …, position …

2- Mr./Ms. …, position …

3- ...

C- Representatives of witnessing agencies:

1- Mr./Ms. …, position …, unit …

2- Mr./Ms. …, position …, unit …

3- ...

After checking the files and the current status of the existing electricity project of …, the Transferor agrees to hand over and the Transferee agrees to accept the electricity project at …, specifically as follows:

I. FILES FOR HANDOVER AND ACCEPTANCE:

1. Original files:

- ...................................................................................................................................

- ...................................................................................................................................

- ...................................................................................................................................

- ...................................................................................................................................

2. Files prepared at the time of handover and acceptance:

- ...................................................................................................................................

- ...................................................................................................................................

- ...................................................................................................................................

- ...................................................................................................................................

3. Quantity and value of the transferred and accepted electricity project:

Total value of the transferred and accepted electricity project: … million VND.

II. OPINIONS OF THE TRANSFEROR AND TRANSFEEe

.....................................................................................................................................

.....................................................................................................................................

.....................................................................................................................................

.....................................................................................................................................

The record is made in four copies: one copy sent to the ministry/central agency/provincial People's Committee, one copy sent to the Vietnam Electricity Corporation, one copy sent to the Transferor, and one copy sent to the Transferee./.

 

REPRESENTATIVE OF THE TRANSFERRING PARTY Owner of the asset (Signature and stamp)	REPRESENTATIVE OF THE RECEIVING PARTY Director of Electricity (Signature and stamp)
REPRESENTATIVE OF WITNESSING AGENCY (Signature and stamp)