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The mechanism to handle power plant projects behind the schedule

The mechanism to handle power plant projects behind the schedule - 

Ministry of Industry and Trade (MOIT) has recently issued a Regulation on commitment to develop power plant projects and mechanism to handle the projects behind the committed schedule.

The Regulation stipulates commitment of the domestic and international investors to develop in time the power plant projects, capacity from 30 MW up invested by or not by the form of public-private partnership (PPP) and mechanism to handle the projects behind committed schedule.

In case, that the project has a rick behind committed in MOU schedule, the project investor must take measures to solve difficulties to complete it in time.

The MOIT and project investor may adjust the schedules of the project development in cases of force majeure as: within 15 working days from the date of falling to situation of force majeure, the investor has to inform by document to MOIT and propose adjusted schedules of the project development.

Within 5 days from the date of receiving the information, MOIT to have assessment on situation of force majeure for investor and MOIT to implement adjustment of the project schedules in MOU

Regarding the project not to reach committed schedule due to the behaviors of the competence state management agency relating the working item in this schedule, at the latest after 15 working days from the date of committed schedule, project investor must report MOIT by document with proposing adjustment of the project schedules and explain the reasons behind schedule due to behaviors of the competence state management agency relating working item in this schedule.

Within 10 working days from the date of receiving the report, MOIT to assess the reasons behind schedule. In case, if the reasons are not mistakes of project investor MOIT and investor should sign adjustment of schedules for project development in MOU.

Within 10 working days from the date of sending document to project investor, if specifying the competence state management agency relating the working item in this schedule to cause the reasons behind the schedule, MOIT should supervise and speed up agencies and units under it’s management or send documents to relevant ministries in charge or report Prime Minister to influence the agencies and units not under management of MOIT.

For the cases behind the schedule by the third side directly relevant to working items in the schedule of project development, at the latest after 15 working days from the date of committed schedule, project investor must report MOIT by document to propose adjustment of project development schedules and explain the reasons behind the schedules due to the behaviors of the third side directly relevant to working items in the schedule of project development.

Within 10 working days from the date of receiving document of investor, MOIT should propose the third side in a term of 15 working days to inform by document about the reasons behind the schedule.

Within 10 working days from the date of receiving document from the third side, MOIT to send document to project investor to confirm the third side cause of situation behind schedule, MOIT should supervise and speed up agencies and units under it’s management or send documents to relevant ministries in charge or report Prime Minister to influence the agencies and units not under management of MOIT.

Regarding the schedules “Financial contribution progress” and “Construction starting progress”, the adjustment would be based on project documentation or PPP signed contract.

The document of MOIT about the reasons behind the schedule of project development not due to the mistakes of project investor is only used as a basis for adjusting schedules of project development but any other purpose.

In case that adjustment of the schedules of project development changes the official schedule in documentation and PPP contract of project from 12 months up, MOIT should have document to propose the Prime Minister to adopt adjusted schedule to put the project into operation before signing adjustment of schedules of project development in MOU.

The mechanism for handling PPP power plant projects which are not carried out committed schedules is applied from the date when the competence agency assigns the right for project development to the date of official signing documentation and PPP contract of the project.

The mechanism for handling PPP power plant projects which are not carried out committed schedules is deployed under following forms:

Firstly, for each time behind the schedule by 30 working days vs. committed schedule in MOU, MOIT should call to attention and require investor to prompt completing the slow works and ensure the following schedules not to be influenced.

After 30 working days from the date of the first remembering document, investor still has not fulfilled the previous slow works, MOIT should have remembering document in second time. As maximally, it is two remembering times for each schedule.

Secondly, in term of one year from the date of MOIT’s first announcement about the schedule delay, if the project investor has not yet completed delayed works and the overall schedule of the project has been delayed for 12 months vs. committed schedule in MOU, MOIT should propose competence agency to consider terminating the right of project development for the investor and assigning it to another one.

Thirdly, in case that the right of project development and investment certificate have been terminated and revoked, all the expenses spent or raised before the date of project termination, should be incurred by investor and not compensated.

Fourthly, for the schedules accounted after the date of signing documentations and PPP contract, the mechanism for handling schedule delay should be applied in accordance with the regulations in PPP Contract.

VietnamEnergy.vn

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