Circular No. 43/2012/TT-BCT on the management of hydropower planning, investment in construction of hydropower projects, and operation and exploitation of hydropower works

CIRCULAR

Regulations on planning management, investment construction of hydropower projects, and operation exploitation of hydropower works.For 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 the Electricity Law No. 28/2004/QH11 dated December 3, 2004;

Pursuant to the Construction Law No. 16/2003/QH11 dated November 26, 2003;

Pursuant to the Investment Law No. 59/2005/QH11 dated November 29, 2005;

Pursuant to the Law amending and supplementing certain articles of laws related to basic construction investment No. 38/2009/QH12 dated June 19, 2009 of the National Assembly;

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;

Implementing the guidance of the Prime Minister in Document No. 888/TTg-KTN dated May 31, 2010 on strengthening the management of hydropower projects;

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

of promulgates this Circular stipulating regulations on planning management, investment construction of hydropower projects, and operation exploitation of hydropower works.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

1. This Circular stipulates certain contents regarding planning management of hydropower, investment construction project management of hydropower projects, and operation exploitation management of hydropower works within the territory of Vietnam.

2. This Circular applies to organizations and individuals participating in activities related to hydropower planning, investment construction of hydropower projects, and operation exploitation of hydropower works within the territory of Vietnam.

Article 2. Interpretation of Terms

1. Cascade hydropower planning: Is the planning determining hydropower projects that can be invested in with installed capacity greater than 30 MW on a river or system of rivers in a watershed.

2. Small hydropower planning: Is the planning determining hydropower projects that can be invested in with installed capacity up to 30 MW on rivers and streams in a watershed.

3. Pumped storage hydropower planning: Is the planning determining locations where pumped storage hydropower plants can be built to provide peak-shaving capacity for the national power system load curve.

4. Multi-purpose hydropower project: Are hydropower projects that, in addition to the main task of power generation, also combine supplementary flow regulation during dry seasons and/or flood control to serve economic and social development in downstream areas.

Chapter II

MANAGEMENT OF HYDROPOWER PLANNING

Article 3. Hydropower Planning

1. Hydropower planning includes cascade hydropower planning, pumped storage hydropower planning, and small hydropower planning.

2. Cascade hydropower planning is established uniformly for each watershed, not divided according to administrative boundaries. For watersheds that have approved cascade hydropower planning on the main river, cascade hydropower planning may be established on tributaries but must ensure consistency with the cascade hydropower planning on the main river.

3. Pumped storage hydropower planning is established nationwide or regionally within the national power system.

4. Small hydropower planning is established by province (hereinafter referred to as province).

Article 4. Principles of Hydropower Planning Establishment

1. Ensuring compliance with current legal provisions on construction, water resources, environmental protection, forest protection and development, and other relevant provisions.

2. Ensuring consistency with socio-economic development planning, water resources planning, irrigation sector planning, power development planning, and other relevant strategies and plans approved by competent authorities.

3. Small hydropower planning must ensure consistency with approved cascade hydropower planning and pumped storage hydropower planning; pumped storage hydropower planning must ensure consistency with approved cascade hydropower planning.

Article 5. Establishment of Hydroelectric Power Planning

1. Hydroelectric power planning shall be established once and may be adjusted or supplemented to ensure its alignment with economic and social development conditions at each period.

2. Hydroelectric power planning must be established by consulting agencies with the appropriate functions and sufficient capacity as stipulated by law.

3. Authority for organizing the establishment of hydroelectric power planning:

a) The General Department of Energy shall organize the establishment of cascade hydroelectric power planning and pumped storage hydroelectric power planning throughout the country.

b) Provincial People's Committees shall organize the establishment of small hydroelectric power planning within their respective administrative areas. For small hydroelectric power projects located across two or more provinces, the Provincial People's Committee where the hydroelectric power plant is planned to be situated shall coordinate with the People's Committees of related provinces to organize the establishment of the planning. In cases where the People's Committees of related provinces cannot reach an agreement, the People's Committee of the province where the hydroelectric power plant is planned to be situated shall submit a report in writing to the Ministry of Industry and Trade for consideration and resolution.

Article 6. Content and Documentation of Hydroelectric Power Planning

1. The content of cascade hydroelectric power planning and small hydroelectric power planning shall be carried out according to Appendix 1 issued together with this Circular and must meet the following requirements:

a) Updating planning, economic and social development orientation of the project area; current status and planning of water resource exploitation and utilization projects relevant to the watershed that have been approved by competent authorities.

b) Investigating, surveying, and comprehensively evaluating natural conditions (topography, geology, meteorology, hydrology, seismicity), socio-economic conditions, transportation, power grid infrastructure... within the study area.

c) Evaluating the compatibility and impact of proposed hydroelectric power projects on other related planning and projects within the watershed.

d) Studying various schemes and scales of exploitation; assessing the economic and energy efficiency of proposed projects to recommend planning schemes.

đ) Conducting strategic environmental assessment in accordance with Decree No. 29/2011/ND-CP dated April 18, 2011 of the Government on Strategic Environmental Assessment, Environmental Impact Assessment, and Environmental Commitment (Decree No. 29/2011/ND-CP).

e) Surveying and preliminarily assessing the impact of proposed projects on residents, land, and downstream water extraction and usage needs. Except for multi-purpose hydroelectric power projects, other proposed projects must ensure not to occupy more than 10 hectares of land or relocate more than one household for every 1 MW of installed capacity.

g) Preliminarily assessing and recommending measures to mitigate negative impacts of the project on the environment and society such as minimum flow release for downstream; compensation, support, relocation, and resettlement; replanting forest areas converted for project purposes.

h) Ranking the priority order for investment construction of recommended projects based on economic and technical indicators and environmental and social impacts of each project.

2. The content of pumped storage hydroelectric power planning includes:

a) The contents specified in Clause 1 of this Article.

b) Updating results of electricity supply-demand forecasts and load curves of the power system in the national power development planning research that has been approved; updating the operational status of power plants and the progress of construction of related power projects in the power system.

c) Analyzing and evaluating the necessity and scale of pumped storage hydroelectric power projects in covering peak load curves of the national power system.

3. Documentation of hydroelectric power planning shall include printed copies on paper stamped by the planning consulting agency in accordance with regulations and a CD containing all the planning contents specified in Clauses 1 and 2 of this Article (hereinafter referred to as the hydroelectric power planning documentation set).

Article 7. Review and Approval of Hydropower Planning

1. The agency organizing hydropower planning in accordance with Clause 3, Article 5 of this Circular shall submit to the Ministry of Industry and Trade for review and approval of the planning, along with one set of hydropower planning dossier.

2. Within five working days from the date of receipt of the submission document and the hydropower planning dossier, the Ministry of Industry and Trade shall organize a review and issue a document together with one copy of the printed planning dossier to relevant agencies and units to seek opinions on the hydropower planning in accordance with regulations.

3. Relevant agencies and units referred to in Clause 2 of this Article include:

a) For cascade hydropower planning and hydropower storage planning: the Ministry of Natural Resources and Environment, the Ministry of Agriculture and Rural Development, the Ministry of Construction, the Ministry of Transport, the Ministry of Defense, the People's Committees of provinces in the project area, and other relevant agencies and units (if necessary).

b) For small hydropower planning: the Ministry of Natural Resources and Environment, the Ministry of Agriculture and Rural Development, and other relevant agencies and units (if necessary).

4. The content of the review and opinion contribution on hydropower planning must include:

a) The suitability of the proposed hydropower planning with existing projects and works and approved related strategies and plans.

b) The reliability and quality requirements of the materials and data used to prepare the planning.

c) The technical suitability and economic efficiency of the cascade system and each proposed project.

d) Evaluation of impacts and measures to mitigate negative impacts on the environment and society of proposed projects.

đ) The compatibility of the investment construction schedule of projects recommended in the planning with the current power grid facilities and power development planning in the region.

5. Relevant agencies and units seeking opinions on hydropower planning are responsible for replying to the Ministry of Industry and Trade within the time limit specified in the opinion solicitation document. If any agency or unit does not provide an opinion beyond the specified period, it will be considered as agreeing with the planning content.

6. After receiving the review results and opinion documents of relevant agencies and units on hydropower planning, within five working days, the Ministry of Industry and Trade shall issue a document summarizing the review opinions, sent to the agency submitting the planning for coordination with the consulting agency to refine the content and dossier of hydropower planning.

7. The agency submitting the planning is responsible for reporting and explaining, adopting the review opinions stipulated in Clause 6 of this Article, submitted to the Ministry of Industry and Trade along with the revised and supplemented planning dossier to consider and approve the hydropower planning.

Article 8. Approval of Hydropower Planning

1. Hydropower planning approved must meet the following conditions:

a) Having complete planning dossier and content as prescribed.

b) Consistent with related strategies, plans, projects, and works.

c) Materials, data, calculation results, and analysis in the planning ensuring quality and accuracy.

d) Rational exploitation of hydropower resources in the study basin, minimizing negative impacts on the environment and society, achieving maximum benefits for society and the state.

2. Within ten working days from the date of receipt of the explanation and adoption of review opinions and planning dossier as stipulated in Clause 7 of Article 7 of this Circular, the Ministry of Industry and Trade shall examine and issue a decision approving the hydropower planning if it meets the conditions stipulated in Clause 8 of this Article, or issue a document responding to the agency submitting the planning regarding reasons why the hydropower planning has not (or has not yet) been approved.

3. The main content of the approval of hydropower planning includes:

a) Information about the planned construction location (geographic coordinates, commune-district-province name, river-stream name), exploitation scheme, tasks, and key technical parameters (watershed area up to dam line F_lv, normal water level N_WL , minimum water level N_{Maximum Downhill Gradient}ML_{, flood control capacity W} FC_°(if applicable), lowest downstream water level N

DL

, installed capacity N

GW

Article 9. Adjustment and Supplement to Hydroelectric Power Planning

1. Hydroelectric power planning shall be adjusted or supplemented in the following cases:

a) Adjusting the contents approved in point a, Clause 3, Article 8 of this Circular for hydroelectric projects already approved under the hydroelectric power planning to enhance economic efficiency, reduce negative impacts on the environment and society, or to align with related planning.

b) Adding new projects to the hydroelectric power planning that has been approved.

2. The adjustment and supplementation of hydroelectric power planning shall be carried out as follows:

a) For projects specified in point a, Clause 1 of this Article: The project investor shall submit to the Ministry of Industry and Trade for examination and approval of the planning adjustment along with a report on the planning adjustment containing the contents stipulated in Article 6 of this Circular or investment project dossier according to regulations. The review and approval of the planning adjustment shall be conducted in accordance with the provisions of Clause 2, Clause 4, Clause 6, Clause 7, Article 7 and Article 8 of this Circular. Soliciting opinions (if necessary) and responding to opinions from relevant agencies, units regarding the content of the project's planning adjustment shall be carried out in accordance with the provisions of Clause 2, Clause 3, and Clause 5, Article 7 of this Circular.

b) For projects specified in point b, Clause 1 of this Article: Implementation shall be in accordance with the provisions of Articles 4, 5, 6, 7, and 8 of this Circular.

Article 10. Announcement of Hydroelectric Power Planning

1. Hydroelectric power planning must be announced within thirty days from the date of approval so that relevant agencies, units, organizations, and individuals can be informed and implement it.

2. The Ministry of Industry and Trade shall announce and guide, monitor, and inspect the implementation of cascade hydroelectric power planning and pumped storage hydroelectric power planning nationwide that have been approved.

3. The People's Committee of the province shall announce and guide, monitor, and inspect the implementation of small hydroelectric power planning in the province that have been approved.

Article 11. Funding for Establishment, Review, Approval, and Announcement of Hydroelectric Power Planning

1. Funding for the establishment, review, approval, and announcement of hydroelectric power planning (including adjustments and supplements to hydroelectric power planning) shall be balanced in the annual state budget plan and other legitimate sources of funding.

2. The Ministry of Industry and Trade shall register the central budget according to the annual plan to serve the establishment, review, approval, and announcement of cascade hydroelectric power planning and pumped storage hydroelectric power planning; the People's Committee of the province shall register the provincial budget according to the annual plan to serve the establishment, review, approval, and announcement of small hydroelectric power planning in the province.

3. Management and use of funds as stipulated in Clause 1 of this Article shall comply with relevant legal regulations.

4. Encouragement is given to enterprises to invest in funding and participate in organizing the establishment of hydroelectric power planning for the development of hydroelectric power resources after being approved by the competent state agency responsible for organizing the planning as stipulated in Clause 3, Article 5 of this Circular. This funding shall be included in the enterprise's production and business costs but must ensure compliance with current regulations on unit prices and cost norms for power development planning work.

Chapter III

MANAGEMENT OF INVESTMENT CONSTRUCTION OF HYDROELECTRIC POWER PROJECTS

Article 12. Principles for Managing Investment in Hydropower Projects

1. Investment in hydropower projects must ensure compliance with laws on investment, construction, water resources, environmental protection, and other relevant regulations; adherence to hydropower planning and consistency with approved power development plans.

2. In cases where a project is included in hydropower planning but not in the power development plan or is inconsistent with it, the competent authority granting permission to invest must seek the opinion of the Ministry of Industry and Trade regarding the project's alignment with the power development plan before considering approval.

3. Any changes to the legal status of the investor, scale, tasks, or progress of hydropower projects during the investment and construction process must be approved in writing by the relevant state authorities before implementation.

Article 13. Requirements for Investors in Hydropower Projects

1. Be a business entity established according to the Law on Enterprises and engaged in the business of investing in hydropower projects.

2. Possess sufficient financial capacity to implement the project: The investor must ensure that the equity capital reaches at least 30% of the total investment amount of the project and obtain written commitments from credit organizations, financial institutions, and banks to lend the remaining portion of the investment capital. The investor must report to the competent authority organizing the selection of investors as stipulated in Clause 2, Article 15 of this Circular about the plan to allocate investment funds for the project, ensuring consistency with the project's progress schedule.

3. The investor must not currently be the investor of another project that is delayed in commencement or progress by more than 12 months compared to the investment certificate, except in cases where the project has been temporarily suspended or its progress extended according to investment laws. The investor must provide copies of related documents concerning the implementation of projects they are the investor for to the competent authority granting investment permission for review and bear responsibility for the accuracy of this information.

Article 14. Implementation Plan for Investment in Hydropower Projects

1. The implementation plan for investment in hydropower projects (including the start date of construction, operation commencement, and completion date) serves as the basis for implementing these projects.

2. The implementation plan for investment in hydropower projects must ensure consistency with:

a) The power development plan approved by the competent authority.

b) The economic and social development situation, load, and related transmission network facilities in the region.

3. Before November 30 each year, the People's Committee of the province submits to the Ministry of Industry and Trade for consideration and approval the investment implementation plan for hydropower projects in the province for the following year. For projects located across two or more provinces, the People's Committee of the province hosting the main hydropower plant coordinates with the People's Committees of the involved provinces to submit to the Ministry of Industry and Trade for approval.

Article 15. Selection of Investors for Hydropower Projects

1. The selection of investors for hydropower projects must ensure:

a) Compliance with current laws on investment, bidding, and other relevant regulations.

b) Choosing the most capable and experienced investor to implement the project on schedule, ensuring quality, and minimizing negative impacts on the environment and society.

2. The selection of investors for hydropower projects is carried out as follows:

a) For projects listed in the national power development plan but without designated investors: Follow the provisions of the law on investment and the Prime Minister's decision approving the national power development plan. Among them, the competent authority selecting the investor must seek opinions from relevant ministries, sectors, and localities before submitting to the competent authority for approval of the project investor.

b) For other projects: The People's Committee of the province with the project organizes the selection of investors; seeks the opinion of the Ministry of Industry and Trade on the project's alignment with the plan and the fulfillment of investor requirements; and seeks opinions from other relevant agencies for approval.

3. For projects spanning multiple provinces, the People's Committee of the province hosting the main hydropower plant leads the process, seeking opinions from the Ministry of Industry and Trade, People's Committees of the involved provinces, and other relevant agencies as required to select the investor.

4. Agencies mentioned in point a and point b, Clause 2 of this Article must respond to the agency seeking their opinion within ten working days from the date of receipt of the request for comments. Beyond this period, if the relevant agencies do not provide comments, it will be considered as agreement with the agency seeking their opinion on the selection of the project investor.

5. Encourage the selection of a single investor to implement a cluster of hydropower projects that have interrelated flow regulation or share transmission network facilities among hydropower plants.

6. Businesses that have invested in costs and participated in the organization of hydropower planning as stipulated in Clause 4, Article 8 of this Circular are given priority consideration to be assigned as investors for some hydropower projects in the research planning if they register for investment and meet the specified requirements.

Article 16. Establishment of Hydroelectric Power Plant Construction Investment Project

1. After being permitted to invest according to current regulations by the competent authority, the investor of the hydroelectric power plant project shall organize the establishment of the hydroelectric power plant construction investment project (hereinafter referred to as the investment project).

2. The contents of the investment project shall be carried out in accordance with the laws on management of investment projects for construction works and must implement the following contents:

a) Investigate, survey, and evaluate thoroughly all natural conditions (topography, geology, meteorology, hydrology, tectonic earthquakes), socio-economic conditions, transportation, power grid facilities... within the area.

b) Update the current status and planning for exploitation and utilization of water resources related to the watershed, serving as the basis for calculating and determining design hydrological characteristics and flow-depth relationships at research routes.

c) Calculate and determine the minimum flow rate in accordance with Decree No. 112/2008/ND-CP dated October 20, 2008 of the Government on management, protection, and comprehensive exploitation of water resources and environment of reservoirs for hydropower and irrigation purposes (Decree No. 112/2008/ND-CP) and guidelines of the Ministry of Natural Resources and Environment; take measures to ensure the discharge of the minimum flow rate downstream.

d) Analyze and compare various options to select the route of the work, normal water level (MNDBT), dead water level (MNC), installed capacity (N), number of units, dam structure, scale and structure of overflow dams, energy dissipation solutions, connection schemes of the hydropower plant with the power system, ensuring enhanced investment efficiency and minimizing negative impacts on the environment - society._{, flood control capacity W}đ) Assess the impact of the project on the safety, electricity quantity, and exploitation capacity of adjacent works and projects in the watershed that have been approved by the competent authority.

e) Calculate the stability, durability, waterproofing, hydraulic regime... of major components such as dams, spillways, water intake gates, tunnels, water conveyance channels, pressure tanks, regulating towers, pressurized pipelines, hydropower plants, discharge channels, slopes of excavation pits under all operating conditions of the works.

g) Equip sufficient monitoring devices for the operation of the works and foundation in accordance with National Technical Regulations QCVN 04-05:2012/BNNPTNT (Hydraulic Works - Main Design Provisions) and National Standard TCVN 8215:2009 (Hydraulic Works - Main Provisions on Design Layout of Monitoring Equipment for Complex Control Works).

h) Develop a scheme for connecting the hydropower plant to the national power system, ensuring compliance with the power development plan and the approved plan for connecting hydropower plants to the national power system; have a written agreement from the Vietnam Electricity Corporation regarding technical connection schemes, measuring, control, and protection equipment of the power connection works.

i) Develop a traffic plan to serve construction and operation of the hydropower plant, ensuring compliance with the regional transportation development plan; develop a construction organization plan and investment construction schedule to ensure safety, effectiveness, and meet the power generation schedule as prescribed.

k) Carefully assess the project's impacts on the environment in the region in accordance with Decree No. 29/2011/ND-CP. Specifically, investigate the area occupied by different types of land (residential land, paddy fields, vegetable plots, protective forests, special-use forests, production forests, rivers and streams...) of the hydropower plant, construction and operation support works, resettlement areas and/or points, areas requiring forest replanting due to land use conversion for the project.

l) Have a unified document from relevant competent authorities regarding the conversion of land use purposes for the project.

m) Solicit opinions from People's Committees of provinces concerned on measures to minimize negative environmental and social impacts such as compensation, support, relocation, resettlement; planting new forests to replace those converted for the project; land restoration after construction of the works.

n) Evaluate other combined benefits of the project such as flood reduction, water supply for downstream areas; tourism, inland water transport, aquaculture; number of jobs created during investment, construction, and operation of the works.

o) Develop a capital investment allocation plan consistent with the construction schedule; analyze and evaluate the economic and financial effectiveness of the project.

o) Have a capital investment plan consistent with the construction project's progress schedule; analyze and evaluate the project's economic and financial effectiveness.

Article 17. Review and Approval of Hydroelectric Investment Projects

1. The review and approval of hydroelectric investment projects shall be carried out in accordance with the provisions of laws on project management for construction investment.

2. The lead unit responsible for reviewing the project must take into account the opinions of sectoral management agencies, state management agencies on construction, and other relevant agencies regarding the investment project and the basic design to review the project in compliance with the regulations.

3. In cases where the research results of the investment project propose contents different from those approved in the planning of the project as stipulated in point a, Clause 10, Article 7 of this Circular, the Investor must submit to the Ministry of Industry and Trade for consideration and approval to adjust the hydroelectric power planning in accordance with point a, Clause 1 and point a, Clause 2, Article 8 of this Circular before approving the investment project.

4. The contents of the review and comments on the investment project or the basic design by relevant agencies mentioned in Clause 2 of this Article must include:

a) The quality and reliability of meteorological, hydrological, topographic, geological data...used in the project design calculations.

b) The appropriateness of the overall layout plan of the works, structure, and main parameters of the reservoir, dam, spillway, energy dissipation works, intake gate, tunnel, canal, pressure pipe, surge tank, regulating tower, discharge channel, excavated slopes, hydraulic machinery equipment, electrical equipment...

c) The appropriateness of the energy parameters (installed capacity N, guaranteed capacity N_{, flood control capacity W}, capacity ensuring N_db, annual average electricity consumption E_°) and the connection plan with the power system of the project.

d) The conformity of the project design with construction standards, environmental standards, fire prevention and firefighting standards...that are permitted to apply.

5. The person deciding to invest in the hydroelectric project may only approve the investment project after receiving the approval or consent of the competent state agency on the following contents:

a) Environmental impact assessment report or Environmental protection commitment in accordance with the regulations.

b) Compensation, support, relocation, resettlement plan in accordance with the regulations.

6. After approving the investment project, the Investor must submit one complete set of files (including one printed copy and one CD containing the file content) along with one original Decision on approval to the Ministry of Industry and Trade, Provincial People's Committee, and Department of Industry and Trade in the project area for monitoring, inspection, and directing the implementation of the project.

Article 18. Establishment, Review, and Approval of Construction Design for Hydroelectric Works

1. The Investor organizes the establishment, review, and approval of technical design (for projects requiring three-stage design) or construction drawing design (for projects requiring two-stage design) in accordance with the laws on project management for construction investment and is responsible for the approved contents.

2. The contents of the technical design (for projects requiring three-stage design) or construction drawing design (for projects requiring two-stage design) must be consistent with the basic design in the approved investment project. In case of changes in content, the Investor must seek the opinions of relevant agencies as stipulated in Clause 2, Article 16 of this Circular on the changed contents to approve the adjustment of the investment project before approving the technical design or construction drawing design.

Article 19. Commencement of Hydroelectric Power Plant Construction Projects

The project investor may only commence construction of the project when all conditions stipulated in Article 72 of the Construction Law and current relevant laws are met.

Article 20. Investment in Connecting and Transmitting Capacity of Hydroelectric Power Plants

Investment in connecting to the power grid and transmitting capacity from hydroelectric power plants shall be carried out in accordance with the Electricity Law and related guiding documents detailing the implementation of the Electricity Law. For hydroelectric projects with installed capacity of 30 MW or less, the investor must invest in constructing the connection lines from the plant to the point of electricity sale as agreed upon with the electricity purchaser. In case of disagreement, the investor shall submit to the Ministry of Industry and Trade for review and approval to proceed. Related investment costs shall be calculated into the electricity selling price as prescribed.

Article 21. Management of Hydroelectric Power Plant Construction Works

1. Quality management of hydroelectric power plant works shall be conducted in accordance with the law on quality management of construction works, with particular attention given to the quality management of dams, spillways, spillway gates, drainage culverts through dam bodies, water intake gates, water conveyance tunnels, pressurized pipelines, bridges over water conveyance canals, and hydroelectric power plants.

2. Other aspects of construction work management for hydroelectric power plants shall be implemented in accordance with current laws governing project investment construction management.

3. Inspection, appraisal, and certification of sufficient load-bearing safety conditions and compliance with construction work quality standards shall be carried out in accordance with current regulations on project investment construction management and construction work quality management. Specifically, mandatory inspection and certification of sufficient load-bearing safety conditions before commissioning shall be required for components where failure due to loss of load-bearing capacity could cause disasters to people, property, and the environment (including dams, spillways, spillway gates, drainage culverts through dam bodies, water intake gates, water conveyance tunnels, pressurized pipelines, bridges over water conveyance canals, hydroelectric power plants, etc.) of hydroelectric power plant works.

Article 22. Supervision and Evaluation of Hydroelectric Power Plant Construction Project Investments

Supervision and evaluation of hydroelectric power plant construction project investments shall be carried out in accordance with Decree No. 113/2009/ND-CP dated December 15, 2009 of the Government on supervision and evaluation of investment; Decision No. 80/2005/QD-TTg dated April 18, 2005 of the Prime Minister on the issuance of the Community Investment Supervision Regulation; Circulars of the Ministry of Planning and Investment: No. 13/2010/TT-BKH dated June 2, 2010 on reporting templates for supervision and evaluation of investments, No. 22/2010/TT-BKH dated December 2, 2010 on cost norms for supervision and evaluation of investments, No. 23/2010/TT-BKH dated December 13, 2010 on the qualifications of organizations and individuals conducting consultancy for investment project evaluations, and other relevant legal provisions.

Article 23. Handling of Hydroelectric Power Plant Projects with Delayed Progress

1. For hydroelectric power plant projects that have been approved for investment or granted an Investment Certificate but within 12 months the investor does not commence operations or lacks the ability to implement according to the specified schedule (excluding projects temporarily suspended or delayed), such projects must be reclaimed and assigned to another investor in accordance with the law on investment.

2. The assignment of another investor for reclaimed projects shall be carried out as follows:

a) For projects included in the national power development plan: the provincial People's Committee with the project shall report to the Ministry of Industry and Trade for submission to the Prime Minister for decision.

b) For other projects: the provincial People's Committee shall decide on reclaiming the project and selecting another investor in accordance with current regulations and relevant provisions in Article 14 of this Circular.

Chapter IV

MANAGEMENT OF HYDROELECTRIC POWER PLANT OPERATION AND EXPLOITATION

Article 24. Operation Procedures for Hydroelectric Reservoirs

1. The operation procedures for hydroelectric reservoirs must be approved by the competent authority before the first water storage in the reservoir, based on the results of investment studies and design of the project, in accordance with the provisions of Decree No. 112/2008/NĐ-CP and Decision No. 285/2006/QĐ-TTg dated December 25, 2006 of the Government on the content of authority to issue and implement operation procedures for hydroelectric reservoirs.

2. The establishment of the operation procedures for hydroelectric reservoirs shall be led by the Project Investor, in coordination with the consulting agency responsible for designing the hydroelectric project.

3. The operation procedures for hydroelectric reservoirs must ensure the following requirements:

a) Safety for the project against all floods smaller than or equal to the design flood as prescribed.

b) Regulation and flood discharge operations ensuring safety downstream.

c) Fulfillment of all tasks of the project.

d) Compliance with inter-reservoir operation procedures approved by the competent authority (if applicable).

đ) Minimizing negative impacts of the project on the environment and society.

e) Enhancing the efficiency of hydropower exploitation of the project.

4. The main contents of the operation procedures for hydroelectric reservoirs are specified in Appendix 2 attached to this Circular.

5. Organizations and individuals related to the project must comply with the operation procedures for hydroelectric reservoirs approved by the competent authority. Special attention must be given to implementing regulations on flood prevention preparation work; flood discharge and power generation operations; minimum flow release downstream; coordination, information, and reporting systems as prescribed.

6. Quarterly during the dry season and monthly during the flood season, the hydroelectric dam operator must submit reports in writing to the Ministry of Industry and Trade, the Ministry of Natural Resources and Environment, the People's Committee of the province, and the Department of Industry and Trade in the project area regarding the operation of the reservoir.

Article 25. Operation of Hydroelectric Power Plants in the National Power System

1. Before commercial operation, the Project Investor must obtain a Power Business License from the competent authorities in accordance with the Electricity Law and confirmation of environmental protection works and measures in compliance with Decree No. 29/2011/NĐ-CP.

2. During the process of generating electricity into the national grid, the management unit of the hydroelectric power plant must comply with the operational methods, command orders, and dispatching instructions of the system dispatching unit; follow technical procedures and standards for power plant and grid operation; and adhere to safety regulations for hydroelectric dams and approved reservoir operation procedures.

Article 26. Maintenance of Hydroelectric Projects

The maintenance of hydroelectric projects shall be carried out in accordance with the provisions of Decree No. 114/2010/NĐ-CP dated December 6, 2010 of the Government on construction project maintenance and other current relevant regulations.

Article 27. Inspection and Supervision During the Operation and Exploitation of Hydroelectric Projects

Annually, the Ministry of Industry and Trade will coordinate with the People's Committee of the province where the project is located and related agencies and units to organize inspections and evaluations of the implementation of reservoir operation procedures and power business licenses of hydroelectric projects that have been put into operation.

Chapter V

IMPLEMENTING PROVISIONS

Article 28. Implementation Organization

1. The General Department of Energy is responsible for organizing, guiding, and coordinating with the Departments of Industry and Trade in provinces with hydroelectric projects to inspect the implementation of this Circular.

2. The People's Committees of provinces with hydroelectric projects shall direct related agencies and units within their jurisdiction to implement this Circular.

3. Every six months, before June 20 and December 20 each year, the People's Committees of provinces with hydroelectric projects shall report to the Ministry of Industry and Trade on the implementation of planning, investment, and construction of hydroelectric projects and the operation and exploitation of hydroelectric facilities in their jurisdictions.

Article 29. Effective Date

1. This Circular takes effect from February 10, 2013. All previous regulations and guidelines issued by the Ministry of Industry and Trade (formerly the Ministry of Industry) concerning the management of planning, investment, and construction of hydroelectric projects and the operation and exploitation of hydroelectric facilities that conflict with the provisions of this Circular are hereby abolished.

2. Hydroelectric plans already approved by the competent authority in accordance with the regulations prior to the effective date of this Circular shall continue to be implemented according to the decisions already issued.

3. Adjustments and supplements to hydroelectric plans already approved by the competent authority shall be carried out in accordance with the provisions of this Circular.

4. During the implementation of this Circular, if there are any difficulties, organizations and individuals are requested to reflect them in writing to the Ministry of Industry and Trade (through the General Department of Energy) for consideration and resolution./.