Criteria for evaluating bidding documents for energy construction project investment in Vietnam from November 21, 2024

Criteria for evaluating bidding documents for energy construction project investment in Vietnam from November 21, 2024​ (Image from the Internet)

On November 21, 2024, the Minister of Industry and Trade of Vietnam issued Circular 27/2024/TT-BCT, stipulating the standards for evaluating tender dossiers and the model for tender dossiers in selecting investors to implement energy construction investment projects.

Criteria for evaluating bidding documents for energy construction project investment in Vietnam from November 21, 2024

(1) Standards for Evaluating the Technical Aspects of Investors' Business Investment Plans

According to Article 5 of Circular 27/2024/TT-BCT, the standards for evaluating technical aspects of the investors' business investment plans are as follows:

- As specified in point a, point b, and point c, clause 1, Article 47 of Decree 115/2024/ND-CP.

Article 47. Standards for Evaluating Investors' Business Investment Plans

1. Technical Evaluation Standards:

a) Requirements for the suitability of the investment plan proposed by the investor (including scope, scale, preliminary total project costs, timeline, progress, phased investment construction, organizational diagram of space and architecture, landscape ensuring synchronization with the overall project) with the planning approved by the competent authority according to legal regulations on planning, construction, industry management, and related laws;

b) Requirements for the feasibility of the technology application solution proposed by the investor (if any); requirements for technology transfer (if any);

c) Requirements for compliance with business investment conditions according to the legal provisions on investment and industry management (if any); requirements for the plan to organize operation and business;

- Other technical evaluation standards:

+ Requirements for the appropriateness of the investment plan proposed by the investor (including project location, scale, progress, organizational space diagram, phased construction investment, and key technical parameters) with the decision approving project investment policies for projects subject to policy approval or the document approving investment projects using land for projects not subject to policy approval.

+ Requirements for compliance with the basic parameters of the power plant according to each type of plant.

(2) Standards for Evaluating the Investment Effectiveness in Power Sector Development.

- The ceiling price for electricity is established based on the bidding documents of the project and below the ceiling (maximum price) of the generation price framework corresponding to the type of power source as issued by the Ministry of Industry and Trade in the bidding year.

- Principles for constructing the ceiling price for electricity are agreed upon with the power purchaser according to the legal provisions on electricity in the bidding documents based on:

+ Reasonable and valid expenses of the investor throughout the project's economic life; the internal rate of return on finance (IRR) not exceeding 12%.

+ The ceiling price for electricity does not include value-added tax, water resource tax, water resource exploitation rights fee, forest environment service fee, environmental protection fee for solid waste, and industrial wastewater (applicable to thermal power plants) and other taxes, fees, and monetary collections as prescribed by competent state management agencies (excluding taxes and fees already calculated in the electricity price plan).

(Article 6 of Circular 27/2024/TT-BCT)

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