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THE
MINISTRY OF PLANNING AND INVESTMENT
THE MINISTRY OF INDUSTRY
THE MINISTRY OF FINANCE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
02/2002/TTLT-BKH-BCN-BTC
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Hanoi,
August 06, 2002
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JOINT
CIRCULAR
GUIDING
THE TRANSFER AND RECEIPT OF OUTSIDE-THE FENCE ELECTRICITY WORKS AND THE
REFUNDING OF CAPITAL TO FOREIGN-INVESTED ENTERPRISES WHICH HAVE INVESTED IN THE
BUILDING THEREOF
In furtherance of the Prime
Minister’s instruction in Document No. 477/CP-KTTH of May 8, 2002 of the
Government Office on reimbursing capital invested by foreign-invested
enterprises in outside-the fence electricity works, the Ministry of Planning
and Investment, the Ministry of Industry and the Ministry of Finance hereby
jointly guide the transfer and receipt of outside-the fence electricity works
and the refunding of capital to foreign-invested enterprises which have
invested in the construction thereof as follows:
Chapter I
SCOPE
OF AND RESPONSIBILITY IN THE TRANSFER AND RECEIPT OF OUTSIDE-THE FENCE
ELECTRICITY WORKS.
1. Scope of transfer and receipt
of works:
1.1. Interpretation of terms:
- "Transferor" means
foreign-invested enterprises operating under the Law on Foreign Investment in
Vietnam, which can be enterprises with 100% foreign-invested capital,
joint-venture enterprises or parties to business cooperation contracts.
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- "Fence base" means
the point delimiting the land area used by the transferor under the land
allocation decision of a competent agency.
- "Electricity supply
point" means the position of the electric switch box, where the
electricity meter is installed to measure the electrical energy traded between
the electricity seller and buyer.
- "Electricity connection
point" means the point where the transferor’s electricity supply work is
connected to the national power grid.
- "Outside-the fence
electricity works" are construction items determined as being situated
between the fence base and the electricity connection point.
1.2. The scope of transfer and
receipt of assets serving as basis for capital refunding:
1.2.1. The scope of transfer and
receipt of assets serving as basis for capital refunding is the outside-the
fence electricity works already invested by the transferor.
1.2.2. Where the electricity
supply point is situated inside the fence, the assets situated from the fence
base to the electricity supply point shall be transferred if the two parties so
agree and clearly inscribe such in the transfer and receipt dossiers. The scope
of transfer and receipt is determined as follows:
a/ Where the electricity work
has a voltage of 0.4 kV or lower, the scope of transfer and receipt shall be
calculated to the position where the electricity meter is installed.
b/ Where the electricity work
has a voltage between over 0.4 kV and 35 kV, the scope of transfer and receipt
shall be calculated to the point of connection of the electricity supply line
with the breaking device or the high-voltage bar of the distribution
transformer station.
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1.3. The following cases shall
not fall into the scope of transfer and receipt:
- Works which have been
constructed with the original purpose of supplying electricity for the
enterprise’s operation but, at the time of transfer, they are used by the
transferor for the purpose of selling electricity.
- Works which have been received
and refunded by Vietnam Electricity Corporation.
- Electricity works built in the
ground-clearance areas and subject to relocation.
2. Responsibilities of the
transferor and transferee:
2.1. The transferor:
- To prepare all dossiers and
vouchers as prescribed in Chapter II of this Joint Circular, to participate in
the Council for valuation of to be-transferred assets; to transfer assets and
create favorable conditions for the receipt thereof by the transferee.
- To create every favorable
condition for the transferee in the operation, maintenance as well as repair of
the electricity works situated inside the fence, the transfer of which has been
agreed upon by the two parties as prescribed in Section 1, Chapter I of this
Circular.
- To create favorable conditions
for the transferee to have a corridor for investment in outward lines from the
110 kV-voltage transformer station to supply electricity for neighborly areas.
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- To receive all dossiers and
vouchers as prescribed in Chapter II of this Circular, to participate in the
valuation council, receive assets and refund capital to the transferor.
- To remove the electricity meters
to positions suitable to the scope of transfer and receipt.
Chapter II
TRANSFER
AND RECEIPT DOSSIERS
A transfer and receipt dossier
may be the original dossier as prescribed or a dossier in substitution of the
original dossier or a dossier compiled in the transfer and receipt process,
specifically as follows:
1. The prescribed original
dossier consists of:
- A copy of the investment
license.
- The electricity supply plan
already approved by competent functional agency.
- The written agreement on the line.
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- The approved technical design.
- The drawing on the completed
work.
- The work sections already
transferred, settled, and audited by an independent audit company operating
lawfully in Vietnam.
- The written registration of
the depreciation rate or the depreciation duration of fixed assets already
accepted by the finance agency.
2. For cases where dossiers as
prescribed in Section 1 above are incomplete: the transferor shall coordinate
with the transferee in fulfilling the following tasks:
- To supply dossiers (in Section
1 above) which the transferor possesses to the transferee.
- To make a report evaluating
the actual quality conditions and determining the value of the transferred
assets according to the provisions in Chapter III of this Circular.
- In cases where land allocation
documents and written agreement on lines are not yet available, the dossier on
the power line and station corridor outside the fence shall be compiled and
certified by the provincial-level People’s Committee.
3. Dossiers to be compiled in
the transfer and receipt process:
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- The plan of the connection
point (single line) of the works to be received.
- The list of the quantities and
categories of equipment and line supplies, and their quality description.
- The transfer and receipt
report, made according to a set form.
- The report determining the
residual value of the transferred assets, which has been evaluated by the
valuation council, made according to a set form.
4. Quantity of dossiers: The
transferor shall hand over to the transferee two sets of dossier; any copies
must be notarized. Regarding the written agreement on the line, the land
allocation document and the land-lease contract, they must be originals.
Chapter III
DETERMINATION
OF THE VALUE OF TRANSFERRED ASSETS, TO BE-REFUNDED CAPITAL
1. Cases of complete dossiers:
The value of to be-returned assets is determined as follows:
The value The original price The
accumulated to be = of fixed assets on the - wear-and- tear value of fixed
assets refunded accounting book on the accounting book
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The value The actual The unit
The accumulated to be = quantity x price of - wear-and- tear value refunded of
assets each asset of fixed assets
in which:
a/ The actual quantity of assets
shall be determined on the basis of the actual inventory figures of the work
sections to be transferred and received.
b/ The unit price of each fixed
asset shall be determined on the basis of:
- The ceiling unit price set by
the locality at the time of investing in building the work. Where the ceiling
price is not set by the locality, the ceiling price at the time of investing in
building the works shall be the unit price prescribed by Hanoi, Da Nang or Ho
Chi Minh City, depending on whether the works are located in the northern,
central or southern region of the country.
- For the value compensated for
ground clearance, valid invoices and vouchers of the transferor shall be
accepted.
c/ The duration during which the
fixed assets have been used shall be calculated in month and from the time the
fixed assets are put to use to the month when the report determining the
residual value of the assets is signed.
d/ The accumulated wear-and-tear
value is determined as follows:
- Where the transferor has
registered a depreciation percentage, the accumulated wear-and-tear value shall
be determined by multiplying the original price of the fixed asset by the
registered depreciation percentage and with the fixed asset-using duration. The
original price of a fixed asset means the original price of such fixed asset on
the accounting book, for cases of complete dossiers, or the re-evaluated
original price, for cases of incomplete original dossiers as prescribed.
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3. Cases where assets have been
fully depreciated but still in use: the transferor and transferee shall
determine the quantity and quality of each construction item in order to
identify the actual residual value of the entire work, then report it to the
valuation council. The actual residual value of the entire work must not exceed
10% of the original value of the asset.
4. The valuation councils:
4.1. The valuation councils
shall be set up by decisions of the provincial-level People’s Committees of the
localities where exist the outside-the fence electricity works. A valuation
council shall be composed of a leading official of the provincial/municipal
Finance and Pricing Service as its chairman, a leading official of the unit who
is authorized by Vietnam Electricity Corporation as its standing member, and
representatives of the provincial/municipal Industry and Planning and
Investment Services and the provincial-level Industrial Parks Management Board
(for works situated within the industrial parks), and the transferor. Apart
from the above-said members, in case of necessity, the council chairman may
invite other technical, economic and financial organizations and experts to
participate in the council.
4.2. The valuation councils
shall have the following tasks:
- To organize the evaluation or
hire auditors to determine the value of assets to be transferred and received.
The evaluation or auditing result must be inscribed in a report signed by all
members. The valuation councils shall be accountable for the legality of the
asset transfer and receipt dossiers submitted to the provincial-level People’s
Committees for approval for use as capital-refunding basis.
The auditing expenses shall be
incorporated in the value of assets to be transferred.
- To sum up and report on a
monthly basis the situation of transfer and receipt and capital refunded to the
provincial-level People’s Committees.
Chapter IV
ORGANIZATION
OF RECEIPT AND CAPITAL REFUNDING
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1.1. Planning the receipt and
the capital refunding:
a/ Within 30 days after this
Circular comes into force, the provincial/municipal Planning and Investment
Services or the provincial/level Industrial Parks Management Boards shall send
the duplicates of this Circular to foreign-invested enterprises and request the
enterprises eligible for refunding of capital already invested in outside-the
fence electricity works to officially notify the local electricity authorities
of their transfer and receipt and capital refunding requirements.
b/ Within 30 days after
receiving the notices of the provincial/municipal Planning and Investment
Services or the provincial-level Industrial Parks Management Boards,
foreign-invested enterprises wishing to transfer their works and have their
capital refunded shall send written requests to the local electricity
authorities. After this time limit, if the enterprises fail to send written
requests to local electricity authorities, they shall be regarded as having no
need to transfer electricity works and have their capital refunded.
c/ Past 15 days but no more than
30 days after receiving the written requests of the enterprises, the local
electricity authorities must notify in writing the time, venue and working
contents to the enterprises related to the asset transfer and valuation.
1.2. The transferor shall
prepare dossiers according to Chapter II of this Circular.
1.3. The transferor and
transferee shall jointly inventory the quantity, assess the residual value of
each asset, examine the original dossiers, make a report on the asset transfer,
then submit it to the valuation council for consideration.
1.4. Within 15 days after
receiving the asset transfer report submitted by the transferor and transferee,
the valuation council shall evaluate the value of the transferred assets for
submission to the provincial-level People’s Committee for approval.
1.5. Based on the approval
decision of the provincial-level People’s Committee, the transferor and
transferee shall proceed with the transfer and receipt of assets and with the
capital refunding.
2. The transferee shall
receive assets and complete the refunding of capital to the transferor within
30 days after the date the approval decision of the People’s Committee is
issued.
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Chapter V
ORGANIZATION
OF IMPLEMENTATION
1. The provincial-level People’s
Committees shall direct the setting up of valuation councils, approve the to
be-refunded values, inspect and monitor the refunding of capital of outside-the
fence electricity works to foreign-invested enterprises.
2. Vietnam Electricity
Corporation shall direct the electricity companies and provincial/municipal
electricity authorities to organize the receipt of works, capital refunding and
management of received assets according to the provisions of this Circular.
3. Should any problems arise in
the transfer and receipt process, the valuation councils should promptly report
them to the Ministry of Planning and Investment, the Ministry of Industry and
the Ministry of Finance as well as the provincial-level People’s Committees for
consideration and settlement.
4. This Circular takes effect 15
days after its signing.
FOR THE MINISTER OF PLANNING AND
INVESTMENT
VICE MINISTER
Vu Huy Hoang
FOR THE MINISTER OF INDUSTRY
VICE MINISTER
Hoang Trung Hai
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