Decision No. 42/2005/QĐ-BCN on the issuance of regulations on the content, procedures, and processes for drafting and reviewing power development plans

Pursuant to …;

Regarding the issuance of regulations on the content, procedures, and processes for drafting and reviewing power development plans

__________________________

 

THE MINISTER OF INDUSTRY

Pursuant to Decree No. 55/2003/NĐ-CP dated May 28, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry;

Pursuant to the Electricity Law dated December 3, 2004;

Pursuant to Decree No. 105/2005/NĐ-CP dated August 17, 2005 of the Government detailing and guiding the implementation of certain provisions of the Electricity Law;

At the proposal of the Director of the Energy and Oil Department,

DECISION:

Article 1. Issued together with this Decision are the "Regulations on the Content, Procedures, and Processes for Drafting and Reviewing Power Development Plans."

Article 2. This Decision shall take effect fifteen days from the date of publication in the Official Gazette and shall replace Decision No. 21/2002/QĐ-BCN dated June 4, 2002 of the Minister of Industry regarding the issuance of regulations on the content, procedures, and processes for drafting power development plans.

Article 3. The Heads of the Ministry's Office, the Inspectorate, Departments, Bureaus under the Ministry, Directors of Provincial Industrial Departments under centrally governed cities, Heads of agencies and units related to the matter, and organizations and individuals participating in electricity activities shall be responsible for implementing this Decision.

 

REGULATIONS

Content, procedures, and processes for drafting and reviewing power development plans

(Issued together with Decision No. 42/2005/QĐ-BCN dated December 30, 2005 of the Minister of Industry)

PART I

GENERAL PROVISIONS

Article 1. Scope and Applicability

1. These regulations stipulate the content, procedures, and processes for drafting and reviewing power development plans.

2. These regulations apply to organizations and individuals participating in electricity activities.

3. Hydroelectric cascade planning for rivers, small and medium hydroelectric planning, new energy, and renewable energy planning are not within the scope of these regulations.

Article 2. Definitions of power development planning

1. Power development planning is the goal, direction, solution, and policy mechanism for developing the electricity industry, developing and upgrading sources and grids, ensuring safe and continuous power supply for economic sectors, public services, people's livelihoods, and national defense and security, based on the efficient and effective use of the country's energy resources.

2. Only consulting units with permits to operate in the field of power development planning may participate in drafting power development plans.

3. Project sponsors are not permitted to implement power projects that are not included in approved power development plans.

Article 3. Types of power development planning

1. Power development planning includes National Power Development Planning and Local Power Development Planning.

Local power development planning includes:

a) Provincial Power Development Planning (hereinafter referred to collectively as provincial planning);

b) District and County Power Development Planning (hereinafter referred to collectively as district planning).

2. Planning periods:

a) National Power Development Planning is drafted for each ten-year period, taking into account prospects for the next ten years.

b) Local Power Development Planning is drafted for each five-year period, taking into account prospects for the next five years.

Chapter II

CONTENT, PROCEDURES, AND PROCESSES FOR DRAFTING, REVIEWING, AND APPROVING POWER DEVELOPMENT PLANS

Article 4. Content of power development planning

1. National Power Development Planning includes the following main contents:

a) Current state of the national power sector and evaluation of the implementation of previous power development planning periods;

b) Overview of the socio-economic situation and the energy system in Vietnam;

c) Forecast of electricity demand;

d) Economic and technical indicators for power source and grid projects;

đ) Evaluation of primary energy sources, exploitation capacity, import-export capacity, and fuel price forecasts for power production;

e) Program for developing power sources;

g) Program for developing the power grid;

h) Regional grid interconnection;

i) Program for rural power development, new energy, and renewable energy development;

k) Article on the operation and information of the Vietnamese power system;

l) Environment and environmental protection in the development of the power sector;

m) Summary of construction volume and investment capital for the national power development program;

n) Economic and financial analysis of the national power development plan options;

o) Organizational structure management of the power industry;

p) Conclusions and recommendations regarding mechanisms and policies to ensure implementation of the national power development program during the planning period.

(Details in Appendix 1 attached).

2. The provincial power development planning includes the following main contents:

a) Assessment of the current status of the local power sector and the implementation of the previous planning period;

b) Current status and socio-economic development goals of the locality during the planning period;

c) Forecast of electricity demand;

d) Assessment of potential for developing various power sources at the local level;

đ) Assessment of the ability to exchange electricity with adjacent areas;

e) Assessment of electricity supply conditions in remote, mountainous, and particularly difficult economic regions (if applicable);

g) Balancing capacity and energy for important time periods during the planning period;

h) Selection of some reasonable power source and grid development options;

i) Calculation and comparison of economic and technical indicators for selected options;

k) Selection of the optimal provincial power development option;

l) Summary of construction volume and investment capital for the planning period;

m) Economic and financial analysis of the selected option;

n) Conclusions and recommendations regarding mechanisms and policies to ensure implementation of the provincial power development program during the planning period.

(Details in Appendix 2 attached).

3. The county power grid development planning includes the following main contents:

a) Assessment of the current status of the local power sector and the implementation of the previous planning period;

b) Current status and socio-economic development goals of the locality during the planning period;

c) Forecast of load demand;

d) Assessment of the ability to exchange electricity with adjacent areas;

đ) Assessment of electricity supply conditions in remote, mountainous, and particularly difficult economic regions (if applicable);

e) Balancing capacity and energy for important time periods during the planning period;

g) Selection of some reasonable power grid development options;

h) Calculation and comparison of economic and technical indicators for selected options;

i) Selection of the optimal county power development option;

k) Summary of construction volume and investment capital for the planning period;

l) Financial analysis of the selected option;

m) Conclusions and recommendations regarding mechanisms and policies to ensure implementation of the county power development program during the planning period.

(Details in Appendix 3 attached).

Article 5. Procedures and formalities for preparing outlines and registering capital for power development planning

1. For the National Power Development Planning:

Every five years, the Ministry of Industry approves the outline and budget adjustment for the planning and registers the state budget plan according to current regulations.

2. For the Provincial Power Development Planning:

Every five years, the Department of Industry prepares the outline and planning budget, submits it for approval by the Provincial People's Committee and registers the state budget plan for provincial power planning according to current regulations.

3. For the County Power Development Planning:

Every five years, depending on the need for power development in each county, the Department of Industry prepares the outline and planning budget, submits it for approval by the Provincial People's Committee and balances local government funds for this work according to current regulations.

4. In cases where it is necessary to adjust the planning ahead of schedule to meet socio-economic development requirements, the planning agency prepares an adjustment budget and submits it for approval by the competent authority.

5. Unit prices for planning, review costs, publication, and adjustment of power development planning shall be carried out according to current regulations.

Article 6. Procedures for developing power development planning

1. For the National Power Development Planning:

a) Based on the state budget capital plan allocated for the National Power Development Plan, the Ministry of Industry selects consulting organizations with sufficient capacity to develop the plan.

b) The selected consulting organization conducts the development of the National Power Development Plan according to the approved outline and assigned timeframe.

c) During the planning process, the consulting organization must implement intermediate reporting steps as prescribed to gather opinions from relevant agencies and complete the plan.

d) After completing the plan, the consulting organization submits it to the Ministry of Industry for review and reports to the Prime Minister for approval.

Documents submitted to the Prime Minister for approval include:

- The Ministry of Industry's proposal to approve the plan;

- Draft Decision approving the plan;

- Five sets of draft planning projects;

- Fifteen copies of the summary report of the planning project;

- Written comments from related ministries and sectors.

2. For the Provincial Power Development Planning:

a) Based on the state budget capital plan allocated for planning work, the Department of Industry selects consulting organizations with sufficient capacity to develop the plan;

b) The selected consulting organization conducts the development of the provincial power development plan according to the approved outline and assigned timeframe;

c) During the planning process, the following intermediate steps must be implemented:

- Organizing to collect opinions from relevant departments to perfect the project and report to the Provincial People's Committee;

- Collecting written comments from Vietnam Electricity Corporation on the planning project that has been approved by the Provincial People's Committee.

Within fifteen working days from receiving the planning project dossier, Vietnam Electricity Corporation is responsible for studying and providing written comments sent to the Provincial People's Committee, the Ministry of Industry, and the planning consulting organization.

The main content of the written comments includes the following:

- Evaluation of the current status of power development in the locality and the results of implementing the previous power development plan;

- Evaluation of the results of load forecasting during the planning period and proposals;

- Evaluation of the results of selecting power development options for the planning period and proposals;

- Feasibility of the planning project;

- Recommendations regarding the list of power projects, investment schedules, and policies to implement the plan.

After receiving the written comments from Vietnam Electricity Corporation, the Provincial People's Committee submits to the Provincial People's Assembly or its Standing Committee for approval and prepares the dossier to submit to the Ministry of Industry for approval. The dossier for approval includes:

- The Provincial People's Committee's proposal to approve the plan;

- Draft Decision approving the plan;

- Five sets of completed planning projects;

- Ten sets of summary reports of the planning projects;

- Document of the Provincial People's Assembly (or its Standing Committee);

- Written comments and recommendations from Vietnam Electricity Corporation.

3. For the County Power Development Planning:

a) Based on the local state budget capital plan allocated for planning work, the Provincial People's Committee assigns the Department of Industry to select consulting organizations with sufficient capacity to develop the plan;

b) The selected consulting organization conducts the development of the district power development plan according to the approved outline and assigned timeframe by the Provincial People's Committee;

c) During the planning process, the consultant must implement intermediate reporting steps, collect opinions from relevant departments and the provincial electricity company to perfect the project;

d) After completion, the plan is submitted to the Department of Industry for review.

The dossier for approval includes:

- Draft Decision approving the plan;

- Five sets of completed planning projects;

- Ten copies of the summary report of the planning project;

- Written comments from relevant departments.

e) Based on the review results of the Department of Industry, with the participation of relevant departments and sectors, the Provincial People's Committee issues a decision to approve the plan, assigns the Department of Industry to direct implementation, and simultaneously submits a report to the Ministry of Industry for monitoring and management.

Article 7. Procedures and formalities for reviewing and approving power development plans

1. For the National Power Development Planning:

a) Within forty-five days from the date of receiving complete valid files, the Ministry of Industry shall take the lead and coordinate with relevant agencies to review the draft plan. In necessary cases, the Ministry of Industry may hire consultants to conduct reviews and provide counterarguments to support the review work;

b) After receiving formal written opinions from relevant ministries, sectors, and localities on the draft plan, the Ministry of Industry shall complete the review report and submit it to the Prime Minister for consideration and approval;

c) In case the draft plan requires supplementation or modification, the Ministry of Industry shall request consultants to make amendments and supplements. Within fifteen days from the completion of the draft plan, the Ministry of Industry shall finalize the review report and submit it to the Prime Minister for consideration and approval.

2. For provincial power development plans:

a) Within forty-five days from the date of receiving complete valid files, the Ministry of Industry shall assign a leading unit to coordinate with relevant agencies and units to review the plan. In necessary cases, consultants may be hired to conduct reviews and provide counterarguments to implement the review work;

b) After receiving formal written opinions from relevant agencies and units, the leading review unit shall complete the review report and submit it to the Minister of Industry for consideration and approval;

c) In case the plan requires modification, the Ministry of Industry shall request consultants to make amendments and supplements. Within fifteen days from the completion of the draft plan, the leading review unit shall finalize the review report and submit it to the Minister of Industry for consideration and approval.

3. For county power development plans:

a) Within thirty days from the date of receiving the proposal for approval of the plan from the County People's Committee and having complete valid files, the Department of Industry shall take the lead and coordinate with relevant agencies and the Provincial Electricity Company to review and prepare the review report, which shall be submitted to the Chairman of the Provincial People's Committee for consideration and approval;

b) In case the plan requires modification, the Department of Industry shall request consultants to make amendments and supplements. Within fifteen days from the completion of the draft plan, the Department of Industry shall finalize the review report and submit it to the Chairman of the Provincial People's Committee for consideration and approval.

Chapter III

MANAGEMENT OF IMPLEMENTATION OF POWER DEVELOPMENT PLANS

Article 8. Hierarchical management of implementation of power development plans

1. The Ministry of Industry is responsible for managing the implementation of the National Power Development Plan and the Provincial Power Development Plans; directing the implementation of independent power projects according to approved plans;

2. The Provincial People's Committee is responsible for guiding and urging the implementation of power development plans within its jurisdiction;

3. Vietnam Electricity Corporation, organizations, and individuals involved in the electricity sector have the responsibility to implement the National Power Development Plan and the Local Power Development Plan in accordance with the approved plans.

Article 9. Amending and supplementing power development plans

1. The Minister of Industry shall propose to the Prime Minister to decide on amending and supplementing the National Power Development Plan.

2. The Minister of Industry shall decide on amending and supplementing the Provincial Power Development Plan based on the proposal of the Provincial People's Committee in accordance with the National Power Development Plan already approved by the Prime Minister.

3. The Chairman of the Provincial People's Committee shall decide on amending and supplementing the County Power Development Plan based on the proposal of the Provincial Department of Industry in accordance with the Provincial Power Development Plan already approved by the Minister of Industry;

4. Investment projects classified as Group A (according to the classification of projects stipulated in the current investment and construction management regulations) not included in the approved plan can only proceed with investment preparation steps (preparing the investment project) upon permission from the Prime Minister based on the proposal of the Ministry of Industry.

Within thirty days from the date of receiving a request to include a project in the plan, the Ministry of Industry shall examine and report to the Prime Minister, while simultaneously informing the requesting agency of the decision.

Article 10. Publication of Power Development Planning

1. The power development planning approved by the competent state agency shall be publicly announced.

2. The Ministry of Industry shall be responsible for announcing the National Power Development Planning.

3. The People's Committee of provinces and centrally governed cities shall be responsible for announcing the local power development planning.

Article 11. Reporting System

1. The Department of Industry of the province and Vietnam Electricity Corporation shall be responsible for compiling and reporting to the Ministry of Industry on the implementation status of approved power development plans before December 20 each year.

2. The Department of Industry and provincial electricity companies shall be responsible for reporting to the People's Committee of the province on the implementation status of the provincial power development plan before December 10 each year./.