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THE
PRIME MINISTER OF GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No:
22/1999/QD-TTg
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Hanoi,
February 13, 1999
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DECISION
RATIFYING THE
PROJECT ON RURAL ELECTRICITY
THE PRIME MINISTER
Pursuant to the Law on Organization of the
Government of September 30, 1992;
At the proposals of the Minister of Planning and Investment and the Minister of
Industry,
DECIDES:
Article 1.- To ratify the
project on rural electricity till the year 2000 with the following major
contents:
1. The project’s
objectives
To supply electricity, by the end of 2000, to
all provinces and districts nationwide. To strive for the target that 80% of
communes with 60% of peasants’
households therein will be supplied with electricity for their daily life and
production, in order to raise the material and spiritual life and promote
socio-economic development in the countryside in the cause of national
industrialization and modernization.
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The development of rural electricity networks,
including the building and upgrading of the existing power system, must be in
line with the planning and in association with the rearrangement of population
in each locality; the projects must be arranged according to their importance
and priority, then implemented step by step according to the country’s financial balance. To give
priority to the areas with high possibility of quickly raising the agricultural
productivity and efficiency along the direction of modernization, the areas
with convertible economic structures and the areas important to national
security and defense.
The electrification of rural areas must go hand
in hand with the development of the national power grid and the development of
on-spot electricity generation, such as mini- hydro-electric power stations,
wind power, solar power, biogenetic gas-power ... on the basis of analyzing the
optimum options on expenses and other relevant factors. It is necessary to
thoroughly and rationally realize the principle of joint efforts by the State
and people, the central and local authorities in order to mobilize and
coordinate different capital sources.
3. Implementation measures
To concentrate on considering the power supply
for communes in the former revolutionary bases, communes in deep-lying and
far-flung regions and key security and defense areas; as well as communes with
conditions for re-structuring the economy along the direction of rural and
agricultural modernization.
To concentrate on improving power grids of the
already electrified communes and in places where such grids are seriously
degraded and the electricity is poorly supplied, failing to ensure the
technical and safety requirements of power supply and use. To pay attention to
the improvement of power grids in communes where the planning has been carried
out.
4. Mechanism of capital mobilization and
investment capital sources
a/ Sources of capital for the establishment of
medium-voltage lines, transformer stations and voltage meters:
- The State budget’s
capital;
- The basic depreciation fund;
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- The international aid capital under various
agreements.
b/ For low-voltage power grids, the local budget’s capital shall be used.
c/ For low-voltage lines from the low-voltage
axis to people’s houses,
the expense shall be borne by people themselves.
d/ For provinces in regions II and III, border
and island areas, areas far from the national power grids, and family
households being the social policy beneficiaries and meeting with particular
difficulties, the State shall partly provide fund for the building of the
low-voltage axis as well as the low-voltage lines to people’s houses.
e/ For cities of Ha Noi, Hai Phong and Da Nang
and Ho Chi Minh City as well as for provinces of Dong Nai, Khanh Hoa and Ba
Ria- Vung Tau, the investment capital for construction of power grids,
including the medium- and low-voltage grids, shall be mobilized mainly from
local budgets.
f/ To step up the process of rural electrification,
the provincial/municipal People’s
Committees shall elaborate projects and submit them to the higher-level
authorities for approval according to current regulations. To encourage all
economic sectors to take part in the investment and trading of the low-voltage
grids in rural areas by the mode of investing capital in building low-voltage
grids, buying wholesale electricity from the Vietnam Electricity Corporation at
the price fixed by the State for the retail thereof to family households at the
prices accepted by the Government Pricing Commission.
g/ For a number of mountainous and island
communes, which, from now till the year 2000, are incapable of accessing to the
national power grid, the local authorities shall elaborate projects to
establish the on-spot power generation sources, suited to the conditions of
each locality, such as the diesel power generation, mini- hydroelectric power
stations, solar power... The State encourages different economic sectors inside
and outside the country to take part in the investment and trading of the
on-spot power sources.
5. Mechanism of investment and construction
management
a/ The Ministry of Industry shall study and soon
issue economic and technical norms and standards of the rural power grids for
the unified application in the whole country along the direction of simplifying
the procedures on project elaboration, ratification, designing and
construction. The investment and construction of the rural power grids must
comply with the current regulations on investment and construction management.
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c/ The People’s
Committee of the provinces and centrally-run cities shall exercise the function
of State management over:
- The electrification development planning;
- The supervision of electricity supply and
generation in accordance with the stipulations of the State and the assignment
of responsibilities by the Ministry of Industry.
- The management of development of new types of
energy.
- The inspection of power safety.
d/ The Ministry of Industry is assigned to
assume the prime responsibility and coordinate with the Ministry of Planning
and Investment, the Ministry of Finance, the State Bank of Vietnam and the
People’s Committees of the
provinces and centrally-run cities in studying and proposing options for
capital sources according to the annual plan and submit them to the Prime
Minister for decision.
6. Mechanism of management and trading of rural
electricity supply
a/ The Vietnam Electricity Corporation shall
manage the power supply to grids and transformer stations of 22 KV. The local
administrations shall manage the electricity supply from grids to voltage
meters.
b/ The Ministry of Industry shall have to guide
localities which are fully qualified to take over and manage power grids
according to the above-said assignment of responsibilities; the power grids
must be taken over and managed so as to ensure the safety, quality and
efficiency of power supply and reduce power losses.
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7. Assignment of responsibilities for
organization of implementation
a/ The Ministry of Industry performing State
management function shall have to promulgate a Regulation on the management of
the rural power grids and guide and inspect the implementation thereof.
b/ The Ministry of Planning and Investment shall
assume the prime responsibility and coordinate with the Ministry of Finance in
balancing the State budget-originated investment capital (including ODA capital
and preferential credit capital) for the rural electricity supply projects of
localities to the year 2000 according to the annual plan.
c/ The Ministry of Finance shall:
- Coordinate with the Ministry of Planning and
Investment in determining the annual State budget’s
capital for the rural electricity supply projects to the year 2000; directing
the General Department for Investment and Development to mobilize capital for
the power industry and preferential loans for localities to build their power
grids according to plans.
- Direct and organize the full and timely
capital allocation according to the estimates and objectives of the ratified
investment projects within the contents prescribed herein.
d/ The State Bank of Vietnam shall direct the
commercial banks to apply different forms of preferences so that people’s households being the social
policy beneficiaries and meeting with difficulties can borrow capital for
investment; and direct the mobilization of capital for the power industry and
preferential loans for localities to build power grids according to the
mechanism annually approved by the Government.
e/ The People’s
Committees of the provinces and centrally-run cities shall have to closely
coordinate with the Ministry of Industry and the Vietnam Electricity Corporation
in elaborating the planning, plans and investment projects, managing and
trading in rural power grids, ensuring that the rural electricity projects to
the year 2000 will achieve the set objectives; and exercise the State
management over the electric power-related activities in their respective
localities.
f/ The Government Pricing Commission shall
assume the prime responsibility in setting power prices and guiding the power
selling prices for peasants’
households under the Prime Minister’s
direction on ceiling prices.
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Article 2.- This Decision
takes effect 15 days after its signing. The Minister of Industry, the
ministers, the heads of the ministerial-level agencies, the heads of the
agencies attached to the Government and the presidents of the People’s Committees of the provinces
and centrally-run cities shall have to implement this Decision.
THE PRIME MINISTER OF GOVERNMENT
Ngo Xuan Loc