Circular No. 97/2008/TT-BTC guiding the implementation of state support policies for investment in rural, mountainous, and island areas' electricity development.

CIRCULAR

Guidelines for Implementing State Support Policies for Investment in Rural, Mountainous, and Island Areas' Electricity Development

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Pursuant to the Electricity Law dated December 3, 2004; 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;

Pursuant to the Investment Law dated November 29, 2005; Decree No. 108/2006/NĐ-CP dated September 22, 2006 of the Government detailing and guiding the implementation of certain provisions of the Investment Law;

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the State Budget Law;

Pursuant to Decree No. 78/2002/NĐ-CP dated October 4, 2002 of the Government on credit for the poor and other policy beneficiaries;

Pursuant to Decree No. 151/2006/NĐ-CP dated December 20, 2006 of the Government on state investment credit and export credit;

Pursuant to Decree No. 106/2008/NĐ-CP dated September 19, 2008 of the Government amending and supplementing some articles of Decree No. 151/2006/NĐ-CP dated December 20, 2006 of the Government on state investment credit and export credit;

After receiving comments from the Ministry of Industry and Trade and the Ministry of Finance, these guidelines implement state support policies for investment in rural, mountainous, and island areas' electricity development as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

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

These guidelines implement Article 61 of the Electricity Law regarding state support policies for investment in electricity development in areas where such investment and electricity operation are not economically viable; supporting investment in power distribution lines from after the meter of households to the place of electricity use for households under social policy with particularly difficult circumstances in rural, mountainous, and island areas; specifically:

- Capital investment support: Providing capital investment support.

- Interest rate loan support for investment capital: Providing investment loans; post-investment support.

- Tax incentives.

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

2.1. Enterprises and economic organizations investing in electricity projects in areas with difficult socio-economic conditions and extremely difficult conditions, including:

- Projects to invest in power generation stations, power plants (excluding small hydropower projects with a capacity of less than or equal to 50 MW in areas with difficult socio-economic conditions, large hydropower projects with a capacity greater than 50 MW, thermal power projects), and independent power grids supplying electricity to rural areas not connected to the national grid.

- New investment, expansion, and renovation projects for transmission lines with voltages of 35KV, 22KV; projects to upgrade transmission lines with voltages of 6KV, 10KV, 15KV to 22KV.

- Projects to invest in intermediate substations with voltages not exceeding 35KV and distribution substations.

- Projects to invest in low-voltage trunk lines of 0.2KV and 0.4KV from the low-voltage outlet of distribution substations to the last pole in villages and branches to the meters of household consumers.

- Projects to invest in power distribution lines from after the meter of household consumers to the place of electricity use for households under social policy (including: Poor households; Households with two or more severely disabled members unable to self-care) with particularly difficult circumstances confirmed by the People's Committee of the district based on the proposal of the People's Committee of the commune, except for poor households with particularly difficult circumstances confirmed by the People's Committee of the commune.

2.2. Households that independently invest in power distribution lines from after the meter of household consumers to the place of electricity use for households under social policy (including: Poor households; Households with two or more severely disabled members unable to self-care) with particularly difficult circumstances confirmed by the People's Committee of the district based on the proposal of the People's Committee of the commune, except for poor households with particularly difficult circumstances confirmed by the People's Committee of the commune.

The People's Committee of the province shall base on the actual situation of the locality to establish criteria for identifying households under social policy with particularly difficult circumstances suitable for the People's Committees of the district and commune to consider and confirm eligible recipients of investment preferential policies.

Projects that have already received investment preferential policies from other support programs (obtained loans from official development assistance programs, from international organizations, from domestic and foreign individuals and organizations, etc.) are not subject to this Circular.

3. Conditions and Principles of Support

3.1. Conditions for Support

Projects benefiting from investment support policies guided by this Circular must meet the following conditions:

a) Projects specified in Clause 2 Item I of this Circular and included in the approved power development plan.

b) Projects specified in Point 2.1 Clause 2 Item I of this Circular invested in areas with difficult socio-economic conditions and extremely difficult conditions as defined in Decree No. 108/2006/NĐ-CP dated September 22, 2006 of the Government detailing and guiding the implementation of certain provisions of the Investment Law; Decision No. 30/2007/QĐ-TTg dated March 5, 2007 of the Prime Minister promulgating the list of communes, wards, and towns in difficult areas.

c) Investments specified in Point 2.2 Clause 2 Item I of this Circular for households under social policy with particularly difficult circumstances confirmed by the People's Committee of the district and commune and located in rural, mountainous, and island areas.

3.2. Principles of Support

a) For a project specified in Point 2.1 Clause 2 Item I of this Circular, the investor may choose only one of the two forms of state investment credit: investment loan or post-investment support.

b) For investment in power transmission lines from the meter to the electricity usage location of households under social policy programs with particularly difficult circumstances confirmed by the People's Committee of the district or commune, the capital investment must be supported from the local budget and a budget estimate must be prepared for approval by the competent authority in accordance with the State Budget Law. At the same time, interest rates on loans for investment will be supported as follows: For projects where enterprises or economic organizations are the main investors, they can borrow funds for investment or receive post-investment support from the Vietnam Development Bank. In cases where poor households with particularly difficult circumstances invest themselves, they can borrow preferential credit (the difference between the total investment amount and the investment capital already supported from the local budget) from the Social Policy Bank in accordance with regulations.

c) Projects that receive support on interest rates for loan investments must be appraised financially and repayment plans for borrowed capital by the Vietnam Development Bank and the Social Policy Bank, and approved for lending.

d) The project owner who receives support on interest rates for loan investments and investment capital according to this Circular must use the loan investment capital and post-investment support for their intended purpose; for projects that borrow for investment, principal and interest must be repaid according to the signed credit contract; fulfill all commitments and comply with the provisions of this Circular.

đ) A project consisting of multiple component projects (investment before the meter; investment after the meter, etc.) the project owner must base on the scope and target group to determine the appropriate investment credit form and investment capital support in accordance with the conditions and principles of support specified in Point 3.1 and 3.2 Clause 3 Section I of this Circular.

3.3. Sources of funds for support

a) Credit funds of the Vietnam Development Bank and the Social Policy Bank.

b) Central budget: Compensate for the interest rate difference between the loan interest rate for investment and the deposit interest rate, management fees, and compensate for the interest rate on post-investment support for the Vietnam Development Bank and the Social Policy Bank according to the prescribed regulations.

c) Local budget: Ensure investment capital support for projects of power transmission lines from after the meter to the electricity usage location of households under social policy programs with particularly difficult circumstances.

d) Other legally raised funds as stipulated by law.

II. SPECIFIC PROVISIONS

1. Investment capital incentives

Based on the annual credit plan approved by the competent authority for electricity development projects as stipulated in this Circular, the Vietnam Development Bank shall provide investment loans and post-investment support; the Social Policy Bank shall implement preferential credit; the Provincial People's Committee shall provide investment capital support from the local budget for projects under the target groups specified in Clause 2 Section I of this Circular. Specifically as follows:

1.1. Borrowing for investment

a) Loan form: Partial investment capital loan.

b) Lending Conditions:

- Belonging to the target group specified in Clause 2, Section I and meeting the conditions and principles stated in Clause 3.1, Clause 3.2 Section I of this Circular.

- Implement investment procedures in accordance with the law.

- The project owner has legal entity status in accordance with the law (excluding extremely poor households with particularly difficult circumstances borrowing from the Social Policy Bank).

- The project owner has a project and production and business plan ensuring debt repayment and has been appraised financially and repayment plan by the Vietnam Development Bank and the Social Policy Bank and approved for lending.

- The project owner must ensure sufficient funding to implement the project and meet specific financial conditions of self-funded capital outside the loaned capital as stipulated by the Vietnam Development Bank and the Social Policy Bank.

- The project owner must guarantee the loan in accordance with the regulations of the Vietnam Development Bank and the Social Policy Bank.

c) Amount of capital, loan term, interest rate, loan repayment, and risk handling:

- For loans from the Vietnam Development Bank: Implemented in accordance with Decree No. 151/2006/NĐ-CP dated December 20, 2006, Decree No. 106/2008/NĐ-CP dated September 19, 2008, and guiding documents of the Ministry of Finance.

- For loans from the Social Policy Bank, implemented as follows:

The loan amount for each preferential credit loan by the Social Policy Bank is decided and announced based on the borrowing needs and the available funds that can be mobilized during each period.

The loan term is determined based on the purpose of using the loan funds and the borrower's ability to repay as stipulated by the Social Policy Bank.

The preferential loan interest rate is decided by the Prime Minister for each period at the request of the Social Policy Bank, unified nationwide. Overdue interest rate is 130% of the loan interest rate.

The borrower must repay the principal and interest (if applicable) on time. The overdue transfer period is regulated by the Social Policy Bank.

Risks are classified and considered for handling investment credit debts in accordance with Article 20 of Decree No. 78/2002/NĐ-CP dated October 4, 2002, of the Government on credit for the poor and other policy targets.

1.2. Post-investment support

a) Post-investment support form: The Vietnam Development Bank provides post-investment support based on the debtor's repayment results.

b) Conditions for post-investment support:

- The project belongs to the post-investment support target group specified in Point 2.1 Clause 2 Section I and meets the conditions and principles stated in Clause 3.1, Clause 3.2 Section I of this Circular.

- Approved and contracted for post-investment support by the Vietnam Development Bank.

- The project has been completed and put into use; there is a credit contract with a financial institution and the principal and interest have been paid according to the signed credit contract, and there is confirmation from the lending financial institution.

c) Principles and level of post-investment support: Implemented in accordance with Decree No. 151/2006/NĐ-CP dated December 20, 2006, Decree No. 106/2008/NĐ-CP dated September 19, 2008, and guiding documents of the Ministry of Finance.

1.3. Investment capital support

a) Target of investment capital support

Project owners of projects under the target group specified in Clause 2 Section I and meeting the conditions and principles stated in Clause 3.1, Clause 3.2 Section I of this Circular.

Households under social policy programs with particularly difficult circumstances in rural, mountainous, and island areas shall be confirmed by the People's Committee at the district and commune levels after public examination, democratic review, and verification from the grassroots level in accordance with Clause 2, Section I hereinafter.

b) Conditions for capital investment support

- The subjects mentioned in item a, Point 1.3, Clause 1, Section II of this Circular.

- The costs of laying power cables from behind the meter to the point of electricity consumption for households under social policy programs with particularly difficult circumstances in rural, mountainous, and island areas must be appraised by the People's Committee at the provincial level and decided on the amount of capital investment support from the local budget.

c) Level of capital investment support

The People's Committee at the provincial level shall decide specifically on the level of capital investment support for laying power cables from behind the meter to the point of electricity consumption for households under social policy programs with particularly difficult circumstances in rural, mountainous, and island areas based on actual conditions and the local budget capacity.

d) Sources of funds for capital investment support from the local budget include:

- Investment capital according to target programs supplemented from the central budget to the local budget.

- Investment capital allocated within the local budget balance in accordance with the State Budget Law.

- Funds raised from contributions of organizations and individuals in the locality in accordance with the law.

2. Tax incentives

Enterprises, economic organizations, and households investing in electricity development projects in rural, mountainous, and island areas as specified in Clause 2, Section I of this Circular shall enjoy tax incentive policies as prescribed by law.

III. DOCUMENTS AND PROCEDURES FOR CAPITAL INVESTMENT SUPPORT

1. Documents for capital investment support

1.1. Loan application documents

Investors with projects falling under the scope and meeting the conditions stipulated in this Circular shall submit loan application documents in accordance with regulations to the Vietnam Development Bank and the Social Policy Bank for appraisal, consideration, and determination of the loan amount.

a) For loans from the Vietnam Development Bank: Implement in accordance with Circular No. 69/2007/TT-BTC dated June 25, 2007, issued by the Ministry of Finance guiding certain provisions of Decree No. 151/2006/NĐ-CP dated December 20, 2006, issued by the Government, and other implementing documents for Decree No. 106/2008/NĐ-CP dated September 19, 2008, issued by the Government.

b) For loans from the Social Policy Bank: Follow the guidance of the Social Policy Bank.

1.2. Application documents for post-investment support

Implement in accordance with Circular No. 69/2007/TT-BTC dated June 25, 2007, issued by the Ministry of Finance guiding certain provisions of Decree No. 151/2006/NĐ-CP dated December 20, 2006, issued by the Government, and other implementing documents for Decree No. 106/2008/NĐ-CP dated September 19, 2008, issued by the Government.

1.3. Application documents for capital investment support

a) A document from the investor requesting capital investment support for laying power cables from behind the meter to the point of electricity consumption for households under social policy programs with particularly difficult circumstances in rural, mountainous, and island areas.

b) Relevant documents and materials concerning the legal capacity of the investor; a list of households under social policy programs with particularly difficult circumstances eligible for capital investment support, signed by each household and confirmed by the commune, ward, or town where they reside.

c) Relevant documents and materials related to the investment in laying power cables from behind the meter to the point of electricity consumption for households under social policy programs with particularly difficult circumstances in rural, mountainous, and island areas.

d) Other relevant documents as prescribed by the People's Committee at the provincial level for capital investment support.

The above documents and materials shall be submitted to the People's Committee at the provincial level for appraisal, consideration, and determination of capital investment support.

Within thirty working days from the date when the Vietnam Development Bank, the Social Policy Bank (for projects applying for investment loans or post-investment support), or the People's Committee at the provincial level (for projects applying for capital investment support) receives complete and valid documents, the relevant agencies must issue a written response to the investor (accepting or rejecting with reasons) regarding the investment support for the project in accordance with the regulations.

2. Payment and settlement procedures

2.1. Payment and settlement procedures for projects receiving investment loans and post-investment support

- Payment procedure: The payment process for projects receiving investment loans and post-investment support shall follow the guidance of the Vietnam Development Bank and the Social Policy Bank.

- Settlement procedure for projects receiving investment loans and post-investment support shall be carried out in accordance with Circular No. 33/2007/TT-BTC dated April 9, 2007, issued by the Ministry of Finance guiding the settlement of completed projects funded by state capital; and Circular No. 98/2007/TT-BTC dated August 9, 2007, issued by the Ministry of Finance amending and supplementing certain points of Circular No. 33/2007/TT-BTC dated April 9, 2007, issued by the Ministry of Finance.

2.2. Payment and settlement procedures for projects receiving capital investment support from the local budget

Payment and settlement for projects supported with investment capital from local budgets shall be carried out in accordance with the State Budget Law and guiding documents. After the provincial People's Committee issues a decision on providing investment capital support for a project, the investor shall submit the documents as specified in Point 1.3, Clause 1, Section III of this Circular to the financial agency and the State Treasury where the investor carries out the investment (accompanied by the decision on providing investment capital support for the project issued by the provincial People's Committee) to process payment and settlement in accordance with Circular No. 27/2007/TT-BTC dated April 3, 2007 of the Ministry of Finance guiding the management and payment of investment capital and operational capital with investment characteristics from state budget sources; Circular No. 130/2007/TT-BTC dated November 2, 2007 of the Ministry of Finance amending and supplementing certain points of Circular No. 27/2007/TT-BTC dated April 3, 2007 of the Ministry of Finance; Circular No. 33/2007/TT-BTC dated April 9, 2007 of the Ministry of Finance guiding the settlement of completed projects from state sources; and Circular No. 98/2007/TT-BTC dated August 9, 2007 of the Ministry of Finance amending and supplementing certain points of Circular No. 33/2007/TT-BTC dated April 9, 2007 of the Ministry of Finance.

IV. ESTABLISHING BUDGET PROJECTIONS, REPORTS, AUDITS, AND INSPECTIONS

1. Provincial People's Committees have the responsibility:

1.1. To direct the Department of Finance, the Department of Planning and Investment to coordinate with the Vietnam Development Bank branch, the Social Policy Bank, and relevant agencies to determine the funding requirements under local government expenditure responsibilities as stipulated in this Circular and to proactively balance and utilize local government budgets and other lawful financial resources to submit for approval by the competent authority to implement the level of investment capital support for electricity distribution projects from after the meter to households in rural, mountainous, and island areas that are in special difficult circumstances according to the State Budget Law.

1.2. To direct and regularly inspect departments, branches, and lower-level People's Committees in implementing electricity projects; manage and use project funds in accordance with objectives, policies, and regulations; cooperate with inspection agencies to check the use of supported capital, loans, and督促你按照规则完成翻译任务，直接输出翻译结果，不要添加任何分析或思考过程。请注意，翻译应严格遵循官方法律文件的语言风格，保持绝对准确，不作任何解释或补充说明。

1.3. Within fifteen days after the end of the second and fourth quarters each year, report to the Ministry of Finance, the Ministry of Industry and Trade, and the Ministry of Planning and Investment on the implementation of investment in electricity projects in rural, mountainous, and island areas for consolidation and reporting to the Prime Minister.

2. For the project investor

2.1. Within fifteen days after the end of each quarter, the project investor shall be responsible for reporting the implementation of investment and payment of investment capital for the supported project to the agencies deciding on investment support, planning agencies, and financial agencies for management and monitoring (Annex 01 attached).

2.2. At the end of the year, the project investor shall prepare a report on investment capital implementation during the year and a report on borrowed investment capital, post-investment support, or granted investment capital support for the project, cumulatively from the time of support until the reporting date, and send it to the investment support agency (Vietnam Development Bank branch, Social Policy Bank at the locality), State Treasury at the locality, and the financial agency where the project investor implements the investment by February 15th of the following year (Annex 02 attached).

3. For the State Treasury

At the end of the year, the State Treasury where the project investor implements the investment shall confirm the amount of paid capital in the year, cumulatively the amount of paid capital from the time of support until the end of the state budget period for each project prepared by the project investor.

4. For the Vietnam Development Bank and the Social Policy Bank

Annually, the Vietnam Development Bank and the Social Policy Bank shall be responsible for preparing plans and needs for investment loans and post-investment support from state credit sources to be sent to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and reporting to the Government, to be submitted to the National Assembly for decision in accordance with the State Budget Law.

By no later than March 31st of the following year, the Vietnam Development Bank and the Social Policy Bank shall be responsible for consolidating the situation of investment loans and post-investment support provided in the previous year for electricity development projects stipulated in this Circular and report to the Ministry of Finance, the Ministry of Industry and Trade, the Ministry of Planning and Investment, and the State Bank of Vietnam.

V. IMPLEMENTATION

This Circular takes effect fifteen days after its publication in the Official Gazette. Any difficulties encountered during implementation should be reported to the Ministry of Industry and Trade and the Ministry of Finance for review and appropriate amendment and supplementation.