Small hydroelectricity plant investment procedure
  
Thua Thien Hue Management Board of Economic and Industrial Zone

 

Step 1: Build and release the planning

Step 2: Register for investment

Step 3: Conduct general study

Step 4: Select investor

Step 5: Establish the project

Step 6: Assess and approve the investment project

Step 7: Technical design and total cost estimate

Step 8: Commence and deploy the project

Step 9: Activate the project

Report

- After the investment project is approved, the investor sends the completed project dossier including hard copy and soft copy to the Ministry of Industry and Trade, Department of Industry, Department of Planning and Investment for management.

- During construction process, the investor has reports sent to the Ministry of Industry and Trade, Department of Industry, Department of Planning and Investment in the first two weeks of the quarter and the year.

- During operation process, the investor has biannual reports on operation and safety sent to the Ministry of Industry and Trade and Department of Industry before June 20th and December 20th.

(According to the Official paper No. 5775/UBND-CN dated December 28th, 2007 of the People's Committee of Thua Thien Hue province)

PROJECT ACTIVATION

Before putting the project into practice, investor shall apply for electricity operation license as regulated.

TECHNICAL DESIGN AND TOTAL COST ESTIMATE

After the investment project is approved, investor

- Create, evaluate and approve the technical design, construction drawing and total cost estimate.

- Cooperate with Department of Natural Resources and Environment, district-level People's Committee and relevant units to implement procedures related to land allocation, compensation, clearance, demining and resettlement as regulated.

PROJECT APPRAISAL AND APPROVAL

- Investor establishes and submits the project to Department of Industry for appraisal. Within 20 working days since the valid dossier is submitted, Department of Industry shall file document and inform the investor of the appraisal result.

- The basic design will not only comply with current regulations but also be assessed in terms of construction safety, operation, solutions on designing and constructing dam reservoir (if any).

- Based on the basic design, the investor organizes appraisal, approves investment project and decision (no more than 1 month since the basic design's approval is issued).

PROJECT ESTABLISHMENT

After the investment is approved by the PPC, investor apply for investment certificate at Department of Investment and Planning (processing time is 10 days) and establish the investment project as regulated. The maximum time for project establishment is 1 year. The PPC encourages investors to open branches or representative offices in Thua Thien Hue province.

The investment project is deployed in accordance with current law. The national electricity system, measurement and control tools are implemented in accordance with Vietnam Electricity Corporation.

INVESTOR SELECTION

- If the project is not included in current planning, investor provides data for Department of Industry who later consults the PPC on planning modification and submitted to Department of Industry and Trade to adjust and modify the planning.

- If many investors apply for researching 1 project at the same time, the PPC shall organize auction to select investor (consulted by Department of Investment and Planning) The auction procedure is implemented in accordance with law on auction.

- In special circumstances such as small project, project on electricity supply in remote, mountainous or extremely difficult areas, only one investor applies for the project, the PPC shall organize a meeting to consider the investment permission dossier of the investor. On this basis, the PPC shall directly appoint the investor.

- Having got the PPC's undertakings, the investor shall negotiate and add the Electricity Purchase Approval of Vietnamese Electricity Corporation or wholesale and retail units.

GENERAL STUDY

Based on investor's registration and specialized units' suggestions, the PPC shall have a document to allow or not allow investor to research the project. 

The PPC may allow many investors to research one project included in the planning.

Departments, agencies and localities facilitate and provide data for investors.

No more than 3 months later, investors report the PPC and ask for investment permission. The investment permission dossier includes

- Written request of the investor.

- Basic information of the investor i.e. documents on legal status, business registration, structure, key personnel, capacity, experience, financial capacity and technology. The list of projects (including industry and electricity projects) that the investor deployed in the last 5 years, accounting and auditing reports of the enterprise in the last three years are also included in the dossier. Investors are responsible for the accuracy of information stated on the report.

- General information regarding to the registered project: Construction location; project objective; capacity, investment capital, operation time, information related to secteral and local planning, the estimated progress of the project, compensation, relocation, investment management method, operation, business and project transfer (if any).

- Estimated capital mobilized to implement project and loan commitment of credit organization and bank. The capital of investor is at least 30%. Although the PPC may consider in some special circumstances, investor's capital must not be under 20%.

INVESTMENT REGISTRATION

- Investor submits investment research registration form, the report on its capacity, experience and financial potential (investor reports and is responsible for information stated in the report).

- Based on investor's registration, the PPC assigns Department of Industry or Center for Investment Promotion to cooperate with relevant units to research the PPC.

BUILDING AND ANNOUNCING THE PLANNING

- The PPC assigns the Department of Industry to establish small hydroelectricity planning in the province; asks for feedback of relevant agencies, localities and Ministry of Industry and Trade; submits to Department of Planning and Investment for appraisal and the PPC for approval.

- After 15 days since the Decision is valid and approved by the PPC, Department of Industry announces planning as regulated.

 

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