THE PRIME MINISTER OF GOVERNMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No.110/2007/QD-TTg
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Hanoi, July 18, 2007
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DECISION
APPROVING THE PLANNING ON NATIONAL
ELECTRICITY DEVELOPMENT IN THE 2006-2015 PERIOD, WITH A VISION TO 2025 TAKEN
INTO CONSIDERATION
THE PRIME MINISTER
Pursuant
to the Law on Organization of the Government dated December 25, 2001;
Pursuant to the Electricity Law dated December 14, 2004;
Considering the Industry Ministry's Report No. 5523/TTr-BCN dated October 3,
2006, Official Letters No. 2080/BCN-NLDK dated May 11, 2007, and No.
2944/BCN-NLDK dated June 27, 2007, and opinions of ministries and branches on
the planning on national electricity development in the 2006-2015 period, with
a vision to 2025 taken into consideration,
DECIDES:
Article 1.
To approve the Planning on national electricity
development in the 2006-2015 period, with a vision to 2025 taken into
consideration (referred to as the Electricity Planning VI), with the following
principal contents:
1. Objectives:
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To satisfy the requirements of national
socio-economic development with an annual GDP growth rate of around 8.5%-9% or
higher in the 2006-2010 period, Vietnam's electricity demands are forecasted to
increase at an annual rate of 17% (basic plan) or 20% (high-level plan) in the
2006-2015 period, of which the high-level plan is the to-be-executed plan and a
plan for an annual increase of 22% shall be prepared for cases of extraordinary
increase.
- Development of electricity sources
+ To develop electricity sources to satisfy the
above-said load demands. To keep to the schedule of construction of
hydroelectric power plants for multiple purposes of flood control, water supply
and electricity production; to rationally and effectively develop gaseous and
thermal electricity sources; to boost the construction of coal-fired
thermoelectric plants; to develop small hydropower plants, new and renewable
energy sources for deep-lying, remote, mountainous and border areas and
islands; to take the initiative in effectively exchanging electricity with
regional countries; to ensure national energy security and sustainable
development. To complete investment preparations for a project on a nuclear
power plant before submission to the Prime Minister for approval.
+ To develop electricity centers in all regions
across the country in order to ensure local electricity supply, reduce loss on
the national electricity system, ensure economic efficiency of projects and
contribute to regional and national socio-economic development.
+ To develop new electricity sources in parallel
with formulating plans on intensive investment in, and technology renewal of,
existing power plants; to satisfy environmental standards; and to use modern
technologies in new electric power plants.
+ To develop electricity sources under the forms
prescribed by the State, with a proper proportion of projects to be implemented
in the BOT or BOO form as determined by the Ministry of Industry.
+ Electricity source projects under the basic
plan are listed in Appendix IA while those under the high-level plan are listed
in Appendix IB to this Decision (not printed herein).
- Development of electricity grids:
+ To develop electricity transmission and
distribution grids in synchrony with programs on development of electricity
sources. To modernize and gradually place underground electricity grids in
cities and towns so as to improve the landscape and environment to apply
measures to reduce electricity loss according to regulations.
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2. Electricity in rural and mountainous areas
and islands:
a) To continue implementing investment programs
for rural electricity development already approved by the Prime Minister,
striving for the target that 95% and 100% of communes will have electricity by
2010 and 2015, respectively.
b) The Ministry of Industry shall assume the
prime responsibility for, and coordinate with concerned branches and localities
in, formulating relevant mechanisms and policies and promulgating documents
guiding their implementation.
3. Investment capital sources:
To encourage domestic economic sectors and
foreign investors to participate in projects on development of electricity
sources and projects on electricity distribution grids in investment forms
specified by law.
4. Financial mechanisms:
a) Capable domestic investors may raise capital
for investment in electricity source and grid projects under the mechanism of
se/f-borrowing and self-payment.
b) To continue implementing the Prime Minister's
Decision No. 276/2006/QD-TTg dated December 4, 2006, on electricity selling
prices.
c) To set market-driven electricity selling and
buying prices and encourage domestic and foreign investors to invest in
electricity source projects.
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a) The State owns 100% of charter capital in
enterprises operating in the national electricity-transmission system or
engaged in large-scale electricity generation of special socio-economic,
defense and security significance.
b) The State holds over 50% of total shares in
electricity-producing enterprises having the function of ensuring great balances
of the economy and stabilizing the market.
c) The equitization of units within the Vietnam
Electricity Group shall be carried out carefully in appropriate steps.
Article 2.
Responsibilities of concerned ministries,
branches, localities and units
1. The Ministry of Industry:
a) To direct, inspect and urge investors and
concerned units to effectively implement this Planning according to schedule.
b) To regularly monitor and evaluate electricity
demand and supply and the implementation of electricity source and grid
projects in order to adjust or supplement the list of projects, project
investors and implementation schedules in line with the practical development
of the electricity industry.
c) To approve a location planning and a detailed
planning on coal-fired electricity centers and a planning on hydroelectric
power plants for calling for investment from domestic and foreign investors. To
direct the development of natural gas sources for electricity generation for
both industrial and civil use.
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e) To assume the prime responsibility for and
coordinate with concerned ministries and branches in negotiating and signing
documents on cooperation and electricity exchange with neighboring countries as
well as those on Vietnam's participation in the electricity system of the
Mekong river delta sub-region countries.
f) To direct and urge localities and investors
to well implement rural energy projects according to plan and schedule.
g) To direct the study and manufacture of
synchronous equipment for projects on building coal-fired thermoelectric power
plants and hydroelectric power plants.
2. The Ministry of Planning and Investment: To
formulate mechanisms and policies to attract investment and rationally use ODA
capital for the electricity industry to develop in a synchronous, balanced,
rational and sustainable manner.
3. The Ministry of Finance: To assume the prime
responsibility for, and coordinate with concerned ministries and branches in
formulating mechanisms for raising capital for the development of the
electricity industry in order to promptly and fully meet electricity demands of
the whole society under the Electricity Planning VI.
4. The State Bank of Vietnam: To assume the
prime responsibility for, and coordinate with concerned ministries and branches
in, formulating proper mechanisms and policies to accelerate investment in
electricity works and ensure sustainable development of the electricity
industry.
5. The Vietnam Electricity Group:
a) To play the key role in ensuring stable and
safe supply of electricity for socio-economic development. To invest in the
development of synchronous electricity grids in order to improve investment
efficiency; to invest in electricity source projects according to its assigned
duties.
b) To concentrate efforts on studying a location
planning and a detailed planning on coal-fired electricity centers before
submitting them to the Ministry of Industry for consideration and approval.
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d) To coordinate with consultancy units of the
Ministry of Transport in:
- Making an investment report on the renovation
of Quan Chanh Bo canal to ensure timely coal transport for coal-fired
electricity plants in the region.
- Studying and making an investment report on
the selection of locations of depots of imported coal and reporting it to the
Prime Minister for decision.
e) To apply solutions to further reducing
electricity loss and implement programs on thrifty use of electricity in
production and life for sustainable development.
6. Other localities, organizations and
individuals:
a) Localities shall assume the prime
responsibility for, and coordinate with investors in, implementing the work of
ground clearance, compensation, relocation and resettlement for electricity
source and grid projects.
b) Units, organizations and individuals engaged
in electricity-related activities shall implement the Prime Minister’s Decision
No. 79/2006/QD-TTg dated April 14, 2006, approving the national target program
on economical and efficient use of energy, and Directive No. 19/2005/CT-TTg
dated June 2, 2005, on thrift practice in electricity use.
Article 3.
Projects on electricity sources and transmission
lines connected to the national electricity system in the 2006-2015 period
invested by domestic enterprises shall be executed in accordance with the Prime
Minister’s Decision No.1195/QD-TTg dated November 9, 2005.
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Article 4.
The Ministry of Industry shall base itself on
the Prime Minister's directing opinions to draft a decision on the
establishment of the State Steering Board for the Electricity Planning VI and
submit it to the Prime Minister for approval.
Article 5.
This Decision takes effect 15days after its
publication in CONG BAO.
Article 6.
The Minister of Industry, heads of concerned
ministries and branches, presidents of provincial/municipal People's
Committees, the Board of Directors, the president of the Board of Directors and
the general director of the Vietnam Electricity Group, and concerned units and
individuals shall implement this Decision.
PRIME
MINISTER
Nguyen Tan Dung
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