Vietnam: It is mandatory to select investor with the highest capacity and experience to carry out investment projects

Vietnam: It is mandatory to select investor with the highest capacity and experience to carry out investment projects (Internet image)

Article 15 of Circular 43/2012/TT-BCT stipulates the selection of investor of hydropower project in Vietnam must ensure:

- Compliance with current regulations of the law on investment, procurement and other relevant regulations.

- Proper selection of the investor with the highest capacity and experience to carry out investment projects on schedule, quality assurance and minimization the negative impacts of the project on the environment and society.

The selection of investor of hydropower project in Vietnam is implemented as follows:

- For projects in the list of power in the national electricity development plan but the investors are not identified: Complying with the regulation of the law on investment and decision on approval of national electricity development plan of the Prime Minister. In particular, the competent authorities selecting the investors must consult the ministries and sectors and localities concerned for review before submission to the competent authorities for the approval of the project investor.

- For other projects: the provincial People’s Committee having projects shall organize the selection of the investor; consult the Ministry of Industry and Trade about the compatibility of the project with planning and the meeting the requirements of the investor; consult the relevant agencies for consideration and approval.

In case the project is located in many provinces, the provincial People’s Committee shall assume the prime responsibility and consult the Ministry of Industry and Trade and the People’s Committees of provinces concerned and other agencies as prescribed to select the investor. The consulted agencies specified at Points a and b, Clause 2 of Article 15 of Circular 43/2012/TT-BCT shall reply consulting agency within 10 working days from the date of receipt of a written request for consultation. Beyond this time limit, if the relevant authorities have no opinion, they shall be deemed to agree with the consulting agencies on the selection of project investors.

Encouraging the selection of an investor to carry out cluster of hydropower projects related to the regulation of the flow or use power grid works of capacity transmission in common of the hydropower plants. Enterprises that have invested funds and participated in hydropower planning in accordance with Clause 4, Article 8 of Circular 43/2012/TT-BCT are prioritized to become the investor of a number of hydropower projects in that planning study if registering investment and meeting the prescribed requirements.

More details can be found in Circular 43/2012/TT-BCT, which comes into force from February 10, 2013.

Le Vy

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