New regulations on investment of BOT thermal power projects

New regulations on investment of BOT thermal power projects - 

Ministry of Industry and Trade (MOIT) has issued Circular No. 23/2015 / TT-BCT dated on 07/13/2015, stipulating the order, procedures for investing Thermal Power Plant (TPP) projects by the build-operate-transfer (BOT) contract.

The Circular stipulates the order and procedure applied to organizations and individuals to participate in activities relating investment in TPP projects by BOT contract on Vietnam territory.

BOT contract is the one signed between the MoIT and BOT investors to build TPP on the Vietnam territory; when finishing construction of the plant, it’s investors will have the right to trade electricity within a given term, and when this term being out, transfer the plant to MoIT.

The General Department of Energy (GDE, MoIT) in collaboration with BOT Investors to solve problems arising in the process of the financial arrangement. In case beyond the competence, GDE has to report to the Minister of MoIT for submitting the Prime Minister to consider and decide.

The Circular also clearly stipulates, within thirty (30) days from receiving the Investment Certificate of the Ministry of Planning and Investment (MPI), the BOT Investors must establish BOT Company and be responsible to fully make all the additional essential contents stated in the Investment Registration Certificate for official signing the project documents.

GDE will hold an official signing ceremony of the project documents between the BOT investors, BOT Company and related sides including: BOT contract and GGU with MoIT, PPA with EVN, CSA with Vinacomin (for projects using domestic coal), GSA with PVN (for projects using domestic gas), LLA with the administration of locality where the project is.

BOT enterprise is responsible to apply the document for the Legal Opinion of Ministry of Justice as stipulated in the Decree No. 51/2015 / ND-CP, dated on 26/05 2015 of the Government on giving legal opinion.

The selection of the BOT investor will comply with the provisions of the Law on Bidding. Within thirty (30) days from the Investment Agreement signing date, BOT investor must submit to MPI the document to ask for Investment Registration Certificate.

The projects developed and developing before 01/9/2015 have been complied with the Article 72 of Government Decree No. 15/2015 / ND-CP on investment by the form of public-private partnerships.

All the MOUs on development of BOT thermal power projects between the investors and the MoIT and PAs (principle agreements) between General Department of Energy and BOT Investors signed before 01 / 9/2015 have not been signed again as the regulations of this Circular.

The Circular takes effect from 01/9/2015.

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