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THE
PRIME MINISTER
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SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No.:
31/2014/QD-TTg
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Hanoi,
May 05, 2014
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DECISION
ON SUPPORTING MECHANISM FOR DEVELOPMENT OF
POWER GENERATION PROJECTS USING SOLID WASTE IN VIETNAM
Pursuant to the
Law on organization of Government dated December 25, 2001;
Pursuant to the
Electricity Law dated December 3, 2004; the Law amending and supplementing a number
of articles of the Electricity Law dated November 20, 2012;
Pursuant to the
Law on Environmental Protection dated November 29, 2005;
Pursuant to the
Law on Investment dated November 29, 2005;
Pursuant to the
Law on Construction dated November 26, 2003; the Law amending and supplementing
a number of articles of the laws relating to capital construction investment
No.38/2009/QH12 dated June 19, 2009;
At the request
of the Minister of Industry and Trade,
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Chapter 1.
GENERAL
PROVISIONS
Article 1. Scope of regulation and subjects of application
1. This Decision
stipulates the supporting mechanism for development of power generation
projects using solid waste in Vietnam;
2. Subject to the
application of this Decision are organizations and individuals involved in
power activities related to the power generation projects using solid waste in
Vietnam;
Article 2. Explantion of term
In this Decision,
the terms below are construed as follows:
1. Electricity
Buyer is the Vietnam Electricity or its authorized member unit;
2. Electricity
Seller is organizations and individuals having the power operation permit in
the field of power generation from power plants using solid waste;
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4. Solid waste
used to generate electricity is the waste in solid state discharged from the
process of production, business, services, activities, or other activities
without containing hazardous waste.
5. Power
generation project using solid waste is the project in which the power plant
uses main energy from solid waste directly burnt or combustion gas collected
from the solid waste landfill to produce power or supply part or the whole of
power generated to the national grid.
6. Connection
point is the place where the line of electricity seller's is connected to
electricity system of the electricity buyer;
7. Electricity
delivery point is the place where the metering equipment is installed as agreed
in the electricity sale contract to determine the power output of electricity
seller;
8. Electricity
sale contract sample for power generation projects using solid waste is the
electricity sale contract issued by the Ministry of Industry and Trade as a
basis for application in transaction and sale of electricity produced from the
power generation projects using solid waste between the electricity seller and
electricity buyer;
Chapter 2.
PLANNING AND
DEVELOPMENT OF POWER SOURCE USING SOLID WASTE
Article 3. Planning and development of power source using solid waste
1. Planning and
development of power source using solid waste is the specialized electricity
planning which made for the whole country as a basis for activities of
investment and development of power source using solid waste and adjusted in
accordance with research and assessment of potential solid waste in each
period.
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3. Planning and
development of power source using solid waste is made once for the period till
2020, with a vision to 2030 and shall be adjusted and added when necessary.
From the subsequent planning stages, the planning and development of power
source using solid waste shall be integrated into the provincial power
development planning and the national power development planning and shall be
adjusted and added in accordance with the reality of research and evaluation of
potential solid waste for power production;
Article 4. Formulating, appraising, approving, publishing and adjusting
the Planning and development of power source using solid waste
1. The Ministry of
Industry and Trade shall formulate and appraise the Planning and development of
power source using solid waste and submit it to the Prime Minister for
approval; announcing, guiding, monitoring and inspecting the implementation of
approved Planning and development of power source using solid waste;
2. The
announcement and adjustment of planning shall comply with current regulations;
Article 5. Funding for the formulation, appraisal, approval and
announcement of Planning and development of power source using solid waste
1. The State
budget shall allocate fund for formulation, appraisal, announcement and
adjustment of Planning and development of power source using solid waste;
2. Other legal
funds are encouraged to mobilize for the formulation of Planning and
development of power source using solid waste;
Article 6. Investment in building power generation projects using solid
waste
1. The investment
in building power generation projects using solid waste must be consistent with
the power development planning using solid waste approved by the competent
authority;
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3. When the Planning
and development of power source using solid waste has not been approved, the
investment in power generation projects using solid waste must be approved by
the Prime Minister;
4. The investment
in power generation projects using solid waste is carried out under regulations
of law on construction, fire prevention and fighting, environmental protection
and other relevant regulations;
Article 7. Connecting the power generation projects using solid waste
to the electricity system
1. The connection
of the power generation projects using solid waste to the national power grid
must be consistent with the power development planning approved. The connection
point shall be agreed by the electricity Buyer and the electricity Seller on
the condition that the electricity Seller provided that the electricity Seller
is responsible for investment of power transmission line to the existing
nearest connection point of national power grid under the provincial power
development planning. If the connection point to the national power grid has
not been included in the power development planning, the investor needs to make
an agreement upon the connection point with the distributing unit or power
transmitting unit as a basis for additional provincial power development
planning under current regulations of law. In case of failure of agreement on
connection point, the electricity Seller shall request the Ministry of Industry
and Trade for consideration and decision;
2. The investor of
power project using solid waste is responsible for investment, operation and
maintenance of line and step-up substation (if any) from the power plant of the
electricity Seller to the connection point under the connection agreement with
the electricity Buyer;
3. Depending on
the connection voltage level, the distributing unit or power transmitting unit
shall be responsible for investment in transmission line from the connection
point to the national power grid under the power development planning approved
and siging of connection agreement with investor of power generation project
using solid waste;
4. After
completing the investment, accepting and put it into commercial operation, the
dispatching and operating unit of power system and market shall mobilize the
power plant using solid waste in the principle of priority use the capacity and
generated power in accordance with the ability to provide solid waste fuel in
the area of power plant;
Article 8. Conditions for starting the construction of power generation
project using solid waste
The investors are only
allowed to start the construction of power generation project using
solid waste, in addition to the conditions specified in Article 72 of the Law
on Construction and the relevant legal normative documents, they must have:
Investment Certificate, written approval for electricity buying of the Buyer,
connection agreement with the distributing unit or power transmitting unit;
opinions on dsign from the competent state agencies under regulations of law on
management of construction investment.
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Within 12 months
from the date of being issued with investment Certificate, the investor does
not start the construction of main items of works or a maximum of 24 months
from the date of commitment of operation in the investment Certificate, but the
power generation works using solid waste has not put into operation, the
provincial People’s Committee shall consider the revocation of investment
Certificate as prescribed, report to the competent agency in order to assign
the project to another investor for implementation unless there is plausible
reasons and approved by the competent authority for the suspension or extension
of project implementation.
Article 10. Reporting regulation on project implementation
1. Within 05
working days from the date of issue of investment Certificate, the investor
shall send a certified copy of investment Certificate to the Ministry of
Industry and Trade for monitoring and management;
2. Within the time
of construction of power generation project using the solid waste, before the
15th date of the first month of quarter, the investor shall make
report on the implementation of project of previous quarter and the plan for
implementation of the following quarter. Before January 15 annually, the
investor shall make a report on the implementation of project in the previous
year and the plan for implementation of the following year to be sent to the
provincial People’s Committee and the Ministry of Industry and Trade for
management, summary and monitoring of implementation and the electricity Buyer
to coordinate the implementation;
Chapter 3.
SUPPORTING
MECHANISM FOR DEVELOPMENT OF POWER GENERATION PROJECTS USING SOLID WASTE
Article 11. Responsibility for electricity buying from power generation
projects using solid waste
1. The electricity
buyer shall buy all power produced from power plants using solid waste under
its management area;
2. The buying and
selling of electricity are carried out through the electricity sale contract
made under the electricity sale contract sample applicable for power generation
projects using solid waste issued by the Ministry of Industry and Trade;
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4. The term of
electricity sale contract for power generation projects using solid waste is 20
years from the date of commercial operation. After 20 years, both Parties may
extend the term of contract or sign a new contract as provided for by current
law;
Article 12. Incentives for investment, tax
1. Mobilization of
invested capital
a) Investor may
mobilize capital from foreign and domestic organizations and individuals for
investing in power generation projects using solid waste as provided for by
current law;
b) The power
generation projects using solid waste shall be entitled to the incentives of
investment credit under current regulations of law on investment credit and
export credit of the State;
2. Import tax: The
power generation projects using solid waste shall be entitled to the exemption
of import tax for imported goods to create fixed assets for the project; imported
goods as raw materials, supplies and semi-products that have not been produced
in the country shall be imported for production of the project as stipulated by
current regulations of law on import and export tax;
3. Corporate
income tax: The exemption and reduction of corporate income tax for the power
generation projects using solid waste shall apply as for projects under the
areas of investment incentives as stipulated by current regulations of law on
tax.
Article 13. Incentives for land
1. The land use
fees or land rent for the power generation projects using solid waste and
the works of transmission line and substation for connection to the national
power grid shall be exempted or reduced under current regulations of law
applicable to projects under the areas of investment incentives.
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Article 14. Electricity price support for power generation projects
using solid waste
1. The electricity
Buyer shall buy all power output from power generation projects using solid
waste at the buying price at the electricity delivery point (with VAT excluded)
as follows:
- For power
generation projects by direct burning of solid waste: 2,114 VND / kWh
(equivalent to 10.05 UScents / kWh).
- For power
generation projects by combustion gas collected from the solid waste landfill:
1,532 VND / kWh (equivalent to 7.28 UScents / kWh).
2. The power
generation projects using solid waste applying the electricity selling price under
the provisions of Clause 1 of this Article must not apply the supporting
mechanism of price for the power output of the project under other current
regulations; the electricity buying price is adjusted according to the
fluctuation of exchange rate of VND/USD
3. The cost of
electricity buying of power generation projects using solid waste shall be
calculated and included in the input parameter in the annual electricity
selling plan of Vietnam Electricity and be approved by the competent authority;
4. The Ministry of
Industry and Trade shall monitor and propose the adjustment of electricity
buying price specified in Clause 1 of this Article and report it to the Prime
Minister for consideration and decision;
Chapter4.
IMPLEMENTATION
ORGANIZATION
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1. The Ministry of
Industry and Trade shall
a) Guide the
contents, order and procedures for formulation, appraisal, approval, adjustment
and announcement of Planning and development of power source using solid waste;
b) Organize, guide
and coordinate with the provincial People’s Committees to inspect and supervise
the implementation of this Decision;
c) Issue the
electricity sale contract sample to the power generation projects using solid
waste;
d) Formulate and
issue or request the competent authorities to issue the national technical
regulations on power generation technology using solid waste;
2. Provincial
People's Committees shall:
a) Coordinate and
support the investors on compensation, site clearance, infrastructure, human
resources for investment, implementation and development of power generation
projects using solid waste in the area.
b) Assume the prime
responsibility for and coordinate with the agencies concerned to issue the unit
price of services of collection, transportation and disposal of solid waste
generated in the provincial area for payment to the investors of power
generation projects using solid waste;
c) Performing the
functions of state management at localities for power generation projects using
solid waste under the current regulations of law;
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1. This Decision
takes effect on June 20, 2014;
2. Ministers,
heads of ministerial-level agencies, heads of government-attached agencies,
Chairman of People's Committees of provinces and centrally-affiliated cities;
Heads of agencies, organizations and units related to the development of power
generation projects using solid waste in Vietnam are liable to execute this
Decision. /.
PRIME
MINISTER
Nguyen Tan Dung
