Transfer of electricity works as public property to Vietnam Electricity Group as of March 1, 2024

Transfer of electricity works as public property to Vietnam Electricity Group as of March 1, 2024 (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

On March 1, 2024, the Government issued Decree 02/2024/ND-CP on transferring electricity works as public property to Vietnam Electricity Group.

1. Transfer of electricity works as public property to Vietnam Electricity Group as of March 1, 2024

06 electricity works are public properties transferred according to the provisions of Decree 02/2024/ND-CP, including:

(1) Electricity works are public property at state agencies, public service units, people's armed forces units, Communist Party of Vietnam agencies, Vietnam Fatherland Front, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, and other organizations established in accordance with the law on associations (hereinafter referred to as public property in agencies, organizations, and units);

(2) Electricity works that are public properties assigned to enterprises to manage, excluding the state capital component of the enterprise (hereinafter referred to as public property at the enterprise);

(3) Electricity works belonging to technical infrastructure projects invested with state capital and invested by the Project Management Board, agency, organization, or unit (hereinafter referred to as electricity works under technical infrastructure projects invested with state capital);

(4) Electricity works belonging to technical infrastructure commonly used in urban area projects, residential areas, and other projects that the investor must hand over to the State according to the provisions of the law;

(5) Electricity works have established ownership by the entire people originating from outside the state budget (including the increased value of electricity works invested by organizations and individuals, renovating and upgrading existing electricity works of the electricity unit) by organizations and individuals voluntarily transferring ownership rights to the State of Vietnam through the Vietnam Electricity Group in the form of non-refundable capital and the electricity unit agrees to receive (hereinafter referred to as electricity works originating outside the state budget);

(6) Electricity works have established ownership by the entire people, originated from investment projects under the public-private partnership method, and are agreed upon by the parties to be transferred to the electricity unit according to the project contract according to the provisions of law or a competent authority decides to assign the electricity unit to perform the receiving task (hereinafter referred to as electricity works invested in the public-private partnership method).

2. Conditions for electricity works to be transferred to Vietnam Electricity Group

According to Article 4 of Decree 02/2024/ND-CP, the conditions for electricity works to be transferred to Vietnam Electricity Group are as follows:

Electricity works specified in points (1), (2), (3), and (4) of Section 1 are transferred to Vietnam Electricity Group according to the provisions of Chapter II Decree 02/2024/ND-CP and must fully meet the following conditions:

(i) In accordance with the electricity development planning and the electricity supply network development plan in the provincial planning at the time of construction or at the time of checking the status of electricity works for transfer (for electricity works specified in points a and d, clause 1, Article 3 of Decree 02/2024/ND-CP);

(ii) Meet relevant regulations and standards at the time of checking the status of electricity works for transfer;

(iii) Electricity works are operating (being used to generate electricity, transmit electricity, and distribute electricity) normally at the time of checking the status of electricity works for transfer;

(iv) Electricity works that are not in a position of pledging, mortgaging, guaranteeing, or securing any other debt obligations.

For electricity works specified in points (1) and (2) of Section 1, if they meet the requirements stated in points (i) and (iv) but do not meet the conditions specified in points (ii) and (iii), the power company may determine that they are eligible for transfer after carrying out renovation and repairs to ensure continued operation.

Note: Electricity works specified in point (5) section 1, that are transferred to Vietnam Electricity Group according to the provisions of Chapter III of this Decree must fully meet the conditions prescribed above and be able to supply electricity or develop electricity supply for local organizations and households.

The electricity works specified in point (6) section 1, must meet the transfer conditions as prescribed in Decree 35/2021/ND-CP.

Nguyen Ngoc Que Anh

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