Thông tư 43/2012/TT-BCT

CIRCULAR

REGULATION ON MANAGEMENT OF PLANNING, INVESTMENT AND CONSTRUCTION OF HYDROPOWER PROJECT AND OPERATION OF HYDROPOWER WORKS

Pursuant to the Electricity Law No. 28/2004/QH11 dated December 3, 2004;

Pursuant to the Construction Law No. 16/2003/QH11 dated November 26, 2003;

Pursuant to Law on Investment No. 59/2005/QH11 dated November 29, 2005;

Pursuant to the Law on amending and supplementing a number of articles of the Laws relating to investment in capital construction No.38/2009/QH12 dated June 19, 2009 of the National Assembly;

Pursuant to Decree No. 95/2012/ND-CP dated November 12, 2012 of the Government defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Under the leadership of Prime Minister in document No. 888/TTg-KTN dated May 31, 2010 on the strengthening of the management of hydropower projects;

At the proposal of the General Director of the Department of Energy;

The Minister of Industry and Trade issues Circular regulating the management of planning, investment and construction of hydropower project and operation of hydropower works

Chapter I

GENERAL PROVISION

Article 1. Scope of adjustment and subject of application

1. This Circular provides for a number of contents on management of hydropower planning and investment in hydropower project construction and operation of hydropower works on the territory of Vietnam.

2. This Circular applies to organizations and individuals involved in activities related to hydropower planning, investment in hydropower project construction and operation of hydropower works on the territory of Vietnam.

Article 2. Explanation of terms

1. Cascade hydropower planning: is the planning to determine the hydropower projects which can be invested in construction with the installed capacity greater than 30 MW on a river or system of rivers of a river basin.

2. Small hydropower planning: is the planning to determine the hydropower projects which can be invested in construction with the installed capacity up to 30 MW on the rivers and streams of the river basin.

3. Pumped-storage hydropower planning: is the planning to determine locations to build Pumped-storage hydropower plant to supply peak power output of sub-loading diagram of the national power system

4. Multi-purpose hydropower project is the hydropower projects which, in addition to the main task of power generation, also regulates and adds flow on the dry season and / or reduces flood in service of socio-economic development of the lowlands.

Chapter II

MANAGEMENT OF HYDROPOWER PLANNING

Article 3. Hydropower planning

1. Hydropower planning includes cascade hydropower planning, pumped-storage hydropower planning and small hydropower planning.

2. Cascade hydropower planning is formulated uniformly for each river basin not divided by administrative boundaries. For river basins with the cascade hydropower planning approved on the main river stream, the cascade hydropower planning is permitted but must be consistent with the cascade hydropower planning on the main river stream

3. Pumped-storage hydropower planning is formulated nationwide or in each area and region of the national power system.

4. Small hydropower planning is formulated in the areas of centrally-affiliated provinces and cities (hereafter referred to as province).

Article 4. Principle of hydropower planning

1. Ensuring the compliance with current regulations of law on construction, water resources, environmental protection, forestry protection and development and relevant regulations.

2. Ensuring the compliance with the planning of socio-economic development, water resource planning, irrigation sector planning, electricity development and other relevant strategies and planning approved by the competent authorities.

3. Small hydropower planning must ensure the consistency with the cascade hydropower planning and the pumped-storage hydropower planning approved; the pumped-storage hydropower planning must be consistent with the cascade hydropower planning approved.

Article 5. Formulation of hydropower planning

1. Hydropower planning is formulated once and can be adjusted and added to be consistent with the situation of social –economic development of each period.

2. Hydropower planning must be formulated by the functional and qualified consultation agency in accordance with regulations of law.

3. Authority of organization of formulation of hydropower planning:

a) General Department of Energy shall organize the formulation of the cascade hydropower planning and and the pumped-storage hydropower planning in the country.

b) Provincial People's Committee shall organize the formulation of small hydropower planning in the area. For small hydropower project located in two or more provinces, the Provincial People's Committee where the power plant is expectedly located shall agree with the Provincial People's Committees of the relevant provinces for organization of planning. In case the Provincial People's Committees do not agree with one another, the Provincial People's Committee where the power plant is expectedly located shall send written report to the Ministry of Industry and Trade for consideration and settlement.

Article 6. Content and dossier of hydropower planning.

1. The content of the cascade hydropower planning and small hydropower planning shall comply with Annex 1 issued together with this Circular and must ensure the following requirements:

a) Updating the planning, direction of socio-economic development of project area; present condition and planning of relevant projects of extraction and use of water resources in the basin approved by the competent authority.

b) Fully investigating, surveying and assessing the natural conditions (topography, geology, meteorology, hydrology, tectonic earthquake), people’s livelihood, economy and society, transport, power grid works ... in the planning study area.

c) Assessing the conformity and impact of the hydropower projects proposed planning and other related projects in the basin.

d) Studying the plans, schemes and scale of extraction; evaluating the economic and energy efficiency of the proposed projects to recommend the planning scheme.

e) Assessing the strategic environment under the provisions of Decree No. 29/2011/ND-CP of April 18, 2011 of the Government on assessment of strategic environment and environmental impact and environmental protection commitment (Decree No. 29/2011/ND-CP).

g) Surveying and preliminarily assessing the impact of the projects with proposed planning for population, land, extraction and use of water needs in the lowlands. Except for multi-purpose hydropower projects, other projects with proposed planning must not occupy more than 10 hectares of land of various types or relocate more than 01 households with 01 MW installed capacity.

h) Preliminary assessing and proposing solutions to minimize the negative impact of the project on the environment – society such as minimally discharging of flow to lowlands; compensation, support, relocation and resettlement; plantation to recover forest area for converted purpose use of the projects.

i) Priority is given to construction projects proposed on the basis of technical and economic indicators and the socio-environmental impact of each project.

2. Content of the pumped-storage hydropower planning includes:

a) Contents specified in clause 1 of this Article.

b) Updating results of forecasting electricity demand and supply and the load diagrams of the electrical system in the study of national electricity development plan which has been approved; updating the operating status of the power plants and the progress of construction investment of related power projects of the power system.

c) Analyzing and assessing the need and scale of the pumped-storage hydropower projects and function in the peak power generation of sub-loading diagram of the national power system.

3. Hydropower planning dossier including the printing copy stamped by the planning advisory agency as prescribed and the CD with full contents of the planning content specified in Clause 1 and 2 of this Article (hereinafter referred to as the hydropower planning dossier).

Article 7. Appraisal and approval of hydropower planning

1. The agency organizing the formulation of planning as prescribed in Clause 3, Article 5 of this Circular shall submit it to the Ministry of Industry and Trade for consideration and approval attached to a dossier of hydropower planning.

2. Within 05 working days after receiving document for approval and a dossier of hydropower planning, the Ministry of Industry and Trade shall appraise and issue document attached to 01 copy of the printing copy of the dossier of planning for submission to agencies and units concerned to gather opinions about hydropower planning as prescribed.

3. The agencies and units concerned are gathered opinions about hydropower planning specified in Clause 2 of this Article including:

a) For the cascade hydropower planning and Pumped-storage hydropower planning: the Ministry of Natural Resources and Environment, Ministry of Agriculture and Rural Development, Ministry of Construction, Ministry of Transport, Ministry of Defense, People's Committees of provinces of project area and other related agencies and units (if necessary).

b) For small hydropower planning: the Ministry of Natural Resources and Environment, Ministry of Agriculture and Rural Development and other related units (if necessary).

4. The content of appraisal and opinion contribution about hydropower planning must include:

a) The compatibility of the proposal of hydropower planning with the existing projects and works and other related strategy and planning which have been approved by the competent authority.

b) The reliability and satisfaction of the quality requirements of the documents, data used for planning.

c) The technical compatibility and economic efficiency of the ladder system and planning of each project with proposed planning.

d) Assessment of impacts and measures to minimize negative impacts to the society and environment of the projects with proposed planning.

e) The compatibility of the construction investment progress of projects proposed in the plan with the present condition of power grid and electricity development planning in the area.

5. The agencies and units concerned consulted on hydropower planning shall respond to the Ministry of Industry and Trade within the time limit specified in the written consultation. Beyond this time limit, if the agencies and units not having opinions shall be deemed to have agreed with the planning content.

6. After having the assessment results and the written consultation of the relevant agencies and units of hydropower planning, within 05 working days, the Ministry of Industry and Trade shall have document to summarize the appraisal opinions, for submission to the submitting agency for the planning approval to coordinate with the advisory agency to formulate complete study planning of the content and dossier of hydropower planning

7. The submitting agency is responsible for making report and explanation and receiving of appraisal opinions specified in Clause 6 of this Article, sending it to the Ministry of Industry and Trade together documents with the revised and supplemented contents for consideration of hydropower planning approval.

Article 8. Approval of hydropower planning

1. The hydropower planning to be approved must satisfy the following conditions:

a) Having adequate dossier and content of planning as prescribed.

b) Being consistent with the relevant strategies, planning, projects and works.

c) The materials, data, result of calculation and analysis in the planning must ensure the quality and accuracy.

d) Rationally exploiting the hydro power resources of the basin under study, minimizing the negative impact on the society and environment to achieve the highest benefit to society and the State.

2. Within 10 working days after receiving a written explanation and appraisal opinion receiving and planning dossier specified in Clause 7, Article 7 of this Circular, the Ministry of Industry and Trade shall consider and make a decision on approval for hydropower planning if meeting the conditions specified in Clause 8 of this Article or has a written reply to the submitting agency on the reason why the hydropower planning was not (or has not yet been) approved.

3. Main contents of hydropower planning approval includes

a) Information about the expected site for works construction (geographic coordinates, name of commune, district, province, river and spring), extraction scheme, tasks and main technical parameters (basin area to Flv dam line, the normal rising water level MNDBT and dead water level MNC, flood prevention capacity W_pl (if any), the downstream water level of smallest plant MNHLmin, installed capacity N_lm and average output power E_o) of projects.

b) Technical and economic social and environmental issues of the projects should be taken into account and implemented during the process of construction research.

c) Expected progress or priority over the construction of projects.

4. Within 03 working days after the approval of hydropower planning, the Ministry of Industry and Trade shall send 01 original of approval decision together with 01 copy of the dossier of complete planning to the provincial People's Committee and the Service of Trade and Industry in the area where located the hydropower project; send 01 original of the approval decision to the Vietnam Electricity Group, the ministries, sectors, agencies and units concerned.

Article 9. Adjustment and addition to hydropower planning

1. The hydropower planning is adjusted and added in the following cases:

a) Adjusting the content of planning approval is specified at Point a, Clause 3, Article 8 of this Circular for projects of hydropower planning approved to enhance economic efficiency and minimize negative impacts on society and environment or comply with other relevant plans.

b) Adding projects to the approved hydropower planning.

2. The adjustment and addition to hydropower planning are implemented as follows::

a) For projects specified at Point a, Clause 1 of this Article: Investors of projects shall submit the planning to the Ministry of Industry and Trade for consideration and approval together with a report on the planning adjustment with the content specified in Article 6 of Circular or dossier of works construction investment project as prescribed. The appraisal and approval of the planning adjustment shall comply with the provisions of Clauses 2, 4, 6, 7, Article 7 and Article 8 of this Circular. The consultation (if necessary) and feedback of the agencies and units concerned about the contents of the planning adjustment of the project shall comply with the provisions of Clause 2, Clause 3 and Clause 5, Article 7 of this Circular.

b) For projects specified at Point b, Clause 1 of this Article: Complying with the provisions of Article 4, Article 5, Article 6, Article 7 and Article 8 of this Circular.

Article 10. Publication of hydropower planning

1. The hydropower planning must be published within 30 days from the approval day to the agencies, units, organizations and individuals for implementation.

2. The Ministry of Industry and Trade shall publish, guide, monitor and inspect the implementation of the cascade hydropower planning and the pumped-storage hydropower planning approved nationwide.

3. Provincial People’s Committee shall publish, guide, monitor and inspect the implementation of small hydropower planning approved in provincial area.

Article 11. Funds for formulation, appraisal, approval and publication of hydropower planning

1. Funds for formulation, appraisal, approval and publication of hydropower planning (including adjustment and addition to hydropower planning) are balanced in annual budget plan and other legal mobilized capital resources.

2. The Ministry of Industry and Trade shall register central budget under yearly plan for the formulation, appraisal and approval, publish the cascade hydropower planning and pumped-storage hydropower planning. The provincial People’s Committee shall register the provincial budget under yearly plan for the formulation, appraisal, approval and publication of small hydropower planning in provincial area.

3. The management and use of funds in Clause 1 of this Article shall comply with the relevant provisions of law.

4. Encouraging business to invest in funds and participate in formulation of hydropower planning to develop hydroelectric power after being approved by the state agencies responsible for formulation under the provisions of Clause 3 of Article 5 of this Circular. This funding is included in the cost of production of the enterprise but must be in accordance with current regulations on price, cost norm for electricity development planning.

Chapter III

MANAGEMENT OF HYDROPOWER PROJECT CONSTRUCTION INVESTMENT

Article 12. Principle of management of hydropower project construction investment

1. The investment in construction of hydropower projects must ensure: compliance with the regulations of the law on investment, construction, water resources, environmental protection and other relevant regulations; compliance with the hydropower planning and in accordance with the electricity development plan approved by the competent authority.

2. In case the projects are under the hydropower planning but not yet included in the electricity development plan or not in accordance with the electricity power development plan, the competent authorities permitting investment must consult the Ministry of Industry and Trade of the compatibility of the project with electricity development planning before considering permission for investment.

3. Any change in the legal status of the investor, scope, tasks, schedule of hydropower projects in the construction process must be competent state agencies related to written permissionbefore implementation.

Article 13. Requirements for investor of hydropower projects.

1. As enterprises of economic sectors established under the provisions of the Law on Enterprises and having business line of construction investment of hydropower projects.

2. Having sufficient financial capacity to implement the project: Investors must ensure their equity of at least 30% of the total investment of the project and being committed in writing by the credit institutions, financial institutions, banks for the rest of the investment loan. Investors must report to the competent authorities on the selection of the investors specified in Clause 2, Article 15 of this Circular and on the plan to allocate investment capital for the projects and ensure the compliance with progress of the project implementation.

3. Investor is not the investor of another project which is being slowly deployed or delayed later than 12 months compared with regulation in the investment certificate, unless it is suspended or extended for the implementation of the project by provisions of the law on investment. Investors have to provide copies of dossiers relating to the implementation of the projects in which they are investors to the investment authority for consideration and shall be responsible for the accuracy of this information.

Article 14. Plan for implementation of construction investment of hydropower projects

1. The plan for implementation of construction investment of hydropower projects (including construction starting schedule, operation of generator and completion of the works) is the foundation that allows the implementation of the project.

2. The plan for implementation of construction investment of hydropower projects must be consistent with:

a) Electricity development plan approved by the competent authority.

b) Situation of economic and social development, sub-loading and the relevant power grid works in the area.

3. Prior to November 30 annually, the provincial People’s Committee shall submit the plan for implementation of construction investment of hydropower projects to the Ministry of Industry and Trade for considerationand approval in the following year. In case the project is located in two or more provinces, those provincial People’s Committees shall assume the prime responsibility and agree with the related provincial People’s Committes for submission to the Ministry of Industry and Trade for approval.

Article 15. Selection of investor of hydropower project

1. The selection of investor of hydropower project must ensure:

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

b) 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.

2. The selection of investor of hydropower project is implemented as follows:

a) 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.

b) 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.

3. 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.

4. The consulted agencies specified at Points a and b, Clause 2 of this Article 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.

5. 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.

6. Enterprises that have invested funds and participated in hydropower planning in accordance with Clause 4, Article 8 of this Circular are prioritized to become the investor of a number of hydropower projects in that planning study if registering investment and meeting the prescribed requirements.

Article 16. Formulation of investment project in hydropower works construction

1. After having been permitted by the competent authority for investment under the current regulations, the investor of hydropower projects shall formulate investment project in hydropower works construction (hereinafter referred to as the investment project).

2. Contents of investment projects shall comply with the provisions of the law on the management of works construction investment project and perform the following contents:

a) Investigating, surveying and carefully assessing natural conditions (topography, geology, meteorology, hydrology, tectonic earthquake), people’s livelihood, the economy and society, transportation, power grid works ... in the area.

b) Updating the present condition and planning the extraction and use of related water resources in the basin, as a basis for calculation for determining the design hydrological characteristics and the relationship between flow and water levels in study lines.

c) Calculating and determining the minimum flow specified in Decree No. 112/2008/ND-CP of October 20, 2008 of the Government on management, protection and general extraction of resources and environment of hydropower and irrigation reservoir (Decree No. 112/2008/ND-CP) and the guidance of the Ministry of Natural Resources and Environment; having measures to ensure minimum discharge of flow to the lowlands.

d) Analyzing and comparing alternatives to choose works line, the normal rising water level, dead water level, installed capacity N_lm, number of plant units, structure of rolling weir, size and structure of spillway, subsidiary solution, plan for connection of hydropower plant to the power system to raise investment efficiency and minimize negative effect for environment and society.

e) Assessing the project's impact on safety, output power, extraction capacity of the adjacent works and projects in the basin that have been approved by the competent authority.

g) Computing the safety, stability, durability, waterproof, hydraulic regime… of the main items of works such as rolling weir, spillway, intake, tunnel, diversion channel, pressure vessel, pressure tower, penstock, hydropower plant, discharge canal, foundation pit dug roof in all working conditions of the works.

h) Arranging adequate devices monitoring activities of the works and foundation  in accordance with national technical regulation QCVN 04-05:2012 / BNNPTNT (Irrigation works - The main provisions on the design) and national Standard TCVN 8215:2009 (Irrigation works - The main provisions of the design and layout of device monitoring headworks cluster).

i) Planning the connection of  hydropower plant to the national power system, ensuring the compliance with the electricity development planning, connection planning of hydroelectric power to the national power system which has been approved; having written agreement of the Vietnam Electricity Group on technical plans for connection, measurement, control and protection devices, of the electrical connection works.

k) Planning the transportation for the construction and operation of hydropower  works to ensure compliance with transportation development planning in the region; planning the organization of construction and the works construction investment  schedule to ensure the safety, effectiveness and response to the electricity generation as prescribed.

l) Carefully assessing the impact of the project on the environment in the area in accordance with Decree No. 29/2011/ND-CP In particular investigating the specific land occupation area of all types (residential land, rice land, crop land, protection forest land, specialized land, production forest land, river and spring lan, etc.) of hydropower works, and works in service of construction performance and operation, the area and / or resettlement place, plantation area to recover forest for converted purpose use of the projects.

m) Having written agreement of the policy of the relevant competent authorities on the conversion of land use purpose for the project.

n) Consulting the related provincial People's Committees on the measures to minimize negative impacts on the environment and society: the compensation, support, relocation and resettlement; afforestation to replace the forest area to be converted the purpose of use for the project; restoring the ground after construction of works.

o) Assessing other combining effects of projects such as: flood reduction, water supply for lowlands; development of tourism, water transportation, aquaculture; labor force employed in the process of investment, construction and operation of the project.

p) Having plans for allocation of investment capital in accordance with the progress of the works construction investment; analyzing and assessing the financial and economic efficiency of the project.

Article 17. Assessment and approval of hydropower investment Project

1. The assessment and approval of hydropower investment Project shall comply with regulations of law on management of works construction investment Project

2. The focal units in project appraisal shall consult the sector management agencies, state management agencies on construction and other relevant agencies about the investment project and basic design for appraisal of project in accordance with regulations.

3. In case the study results of investment project are different from the contents of the planning approval of the project specified at Point a, Clause 10, Article 7 of this Circular, the investor must submit the study result to the Ministry of Industry and Trade for consideration, approval and adjustment of hydropower planning as provided for at Point a, Clause 1 and Point a, Clause 2, Article 8 of this Circular prior to approval of project investment.

4. The content of assessment and consultation about investment project or basic design of related agencies and units specified in Clause 2 of this Article must include:

a) Quality, reliability of the materials and data on meteorology, hydrology, topography, geology, etc. used in the calculation of project design.

b) The compatibility of the overall layout plan of the works, the structure and main parameters of reservoirs, rolling weir, spillways, subsidiary works, intake, tunnel, diversion channel, penstock, pressure vessel, pressure tower, discharge canal, pit dug roof, hydro mechanical equipment, electrical equipment ...

c) The compatibility of the energy parameters (installed capacity N_lm, guaranteed output N_đb, output power E_o) and connection plan to the power system of the project.

d) The compatibility of the project design with the construction standards and regulation, environment, fire prevention and fighting, etc. allowed to apply.

5. The person making a decision on investment in hydropower project only approves the investment project after being approved or agreed by the competent state agencies with the following contents:

a) Report on assessment of environmental impact or written commitment to environmental protection as prescribed.

b) Plan or project of compensation, support, relocation, resettlement as prescribed.

6. After approval of the investment project, the investor shall submit 01 complete set of dossier (including 01 copy and 01 CD recording the dossier content) with 01 original approval decision to the Ministry of Industry and Trade, provincial People’s Committee and Service of Trade and Industry of the project area to monitor, inspect and direct the implementation of the project.

Article 18. Formulation, appraisal and approval of design of hydropower works construction.

1. The investors shall organize the formulation, appraisal and approval of the technical design (for project requiring 3 step design) or design of performance drawing (for project requiring 3 step design) of the project as prescribed by law on the management of works construction investment projects and are responsible for the approval content.

2. The technical design content (for project requiring 3 step design) or design of performance drawing (for project requiring 3 step design) of the project must ensure compliance with the basic design in the investment project approved. In case of change of content, the investors should consult the relevant authorities in accordance with the provisions of Clause 2, Article 16 of this Circular about the change of content in order to approve the adjustment of the investment project before approval of technical design or design of performance drawing.

Article 19. Starting construction of hydropower works

Investors only start the construction when meeting all the conditions stipulated in Article 72 of the Construction Law and the current provisions of the relevant law.

Article 20. Investment in construction of power connection and capacity transmission works of hydropower plant.

The investment in construction of power connection and capacity transmission works of hydropower plant shall comply with provisions in the Electricity Law and guiding documents and detailed provisions on implementation of the Electricity Law. For hydropower projects with installed capacity of less than 30MW, the investor must build the connection line from the plant to power sale location as agreed with the buyer. In case of failure of agreement, the investor shall request the Ministry of Industry and Trade for consideration and approval for implementation. The relevant investment expenses shall be included in the power sale price as prescribed.

Article 21. Management of construction of hydropower works

1. The management of hydropower works quality shall comply with regulation of law on management of construction works quality particularly pay special attention to the management of quality of rolling weir, spillway, valve gate of spillway, outlet through dam body, intake, diversion tunnel, penstock, aqueduct bridge on water channel and hydropower plant.

2. Other management contents on construction of hydropower works shall comply with current regulations of the law on the management of works construction investment projects.

3. The testing, survey and certification of eligibility for load-bearing safety, certification of conformity of quality of construction works shall comply with current regulations on management of works construction investment projects and quality of construction works particularly requiring the performance of the test and certification of eligibility for load-bearing safety before putting into use for items that when incidents occur due to loss of bearing capacity can cause catastrophe for people, property and the environment (including rolling weir, spillway, valve gate of spillway, outlet through dam body, intake, diversion tunnel, penstock, aqueduct bridge on water channel and hydropower plant, etc.) of hydropower works.

Article 22. Monitoring and assessment of construction investment of hydropower project

The monitoring and assessment of investment in hydropower projects shall comply with the provisions of Decree No. 113/2009/ND-CP of December 15, 2009 of the Government on monitoring and assessment of investment; Decision No. 80/ 2005/QD-TTg of April 18, 2005 of the Prime Minister on promulgation of the Regulation on monitoring of investment of community; Circulars of the Ministry of Planning and Investment No.13/2010/TT-BKH of June 2, 2010 stipulating the form of report on monitoring and assessment of investment No. 22/2010/TT-BKH of December 02, 2010 stipulating the norm of expense of monitoring and assessment of investment, No.23/2010/TT-BKH of December 13, 2010 stipulating the condition and capability of the organization and individual performing consultation and assessment of investment projects and the relevant provisions of law.

Article 23. Dealing with the hydroelectric projects with ​​slow progress

1. For hydropower projects permitted for investment or granted with investment certificate but after 12 months the investors do not deploy or unable to comply with the prescribed schedule (except the projects permitted for suspension or extension for performance), these projects shall be recovered and transferred to the other investors in accordance with the provisions of the law on investment.

2. The transfer of project to be recovered to other investors shall be done as follows

a) For projects under the national power development plan: Provincial People’s Committee where the project is located shall make a report to the Ministry of Industry and Trade for submission to the Prime Minister for consideration and decision.

b) For other projects: Provincial People’s Committee shall make a decision on recovery and select another investor in accordance with current regulations and the contents of the relevant provisions of Article 14 of this Circular.

Chapter IV

MANAGEMENT OF OPERATION OF HYDROPOWER WORKS

Article 24. Process of operation of hydropower reservoir.

1. The process of operation of hydropower reservoir must be approved by the competent authority before the reservoir retain water for the first time, on the basis of the results of investment study and works construction design, in accordance with the provisions of Decree No. 112/2008/ND-CP and Decision No.285/2006/QD-TTg of December 25, 2006 of the Prime Minister on the content of promulgation authority and implementation of the process of hydropower reservoir operation.

2. The formulation of process of reservoir operation shall be done by the project investor in coordination with the consultation agencies that have function of appropriate hydropower project design.

3. The process of reservoir operation must ensure the following requirements:

a) Safety for the works with all floods with scale smaller or equal to check flood of the works as prescribed.

b) Operation, regulation and discharge of flood to ensure the safety for the lowlands

c) Complete performance of tasks of the project.

d) Compliance with the process of inter-reservoir operation approved by competent authority (if any).

e) Minimization of the negative impacts of the project on the environment - society

g) Improvement of efficiency of hydro power exploitation of the works.

4. The main contents of the process of hydropower reservoir operation specified in Annex 2 issued together with this Circular.

5. Organizations and individuals concerned must comply with the process of reservoir approved by the competent authority particularly paying special attention to the implementation of regulations on the preparation of flood prevention and fighting; flood discharge operation, power generation; minimum flow discharge to lowlands;coordination mode, information and reports as prescribed.

6. Quarterly in the dry season and monthly during the flood season, the hydropower dam owner must be a written report to the Ministry of Industry and Trade, the Ministry of Natural Resources and Environment, the provincial People's Committees and the Service of Trade of the project area on the reservoir operation.

Article 25. Operation of hydropowe plant in the national power system.

1. Prior to commercial operation, the project investor must be granted the power operation Permit by the competent authority under the provisions of the Electricity Law and confirm the implementation of works, environmental protection measures under the provisions of Decree No. 29/2011/ND-CP.

2. In the course of operation and generation to the national power grid, the unit managing and operating power plant must comply with the operational mode, command and regulation order of the regulating unit of the power system; comply with the process, technical regulations on power plant operation and power grid; comply with regulations on hydropower dam safety and the process of reservoir operation approved by the competent authority.

Article 26. Maintenance of hydropower works

The maintenance of hydropower projects shall comply with the provisions of Decree No. 114/2010/ND-CP of December 6, 2010 of the Government on maintenance of construction works and other relevant regulations.

Article 27. Inspection and monitoring in the course of operation of hydropower works.

Annually, the Ministry of Industry and Trade in collaboration with provincial People’s Committee of the project area and the agencies and units concerned shall inspect and assess the implementation of the process of reservoir operation and the power operation Permit of the hydropower works having been put into operation.

Chapter V

IMPLEMENTATION PROVISION

Article 28. Implementation organization

1. General Department of Energy is responsible for organizing, guiding and coordinating with the Service of Industry and Trade of provinces where hydropower project is located for inspecting the implementation of this Circular.

2. People’s Committee of the provinces where hydropower project is located shall direct the related agencies and units in the area to implement this Circular

3. Every six months, before June 20 and December 20 annually, the People’s Committee of the provinces where hydropower project is located shall make a report to the Ministry of Industry and Trade on the implementation of the planning, investment in construction of hydroelectric projects and operation of the hydropower projects in the area.

Article 29. Effect

1. This Circular takes effect on February 10, 2013. The regulations and guidelines of the Ministry of Trade and Industry (formerly the Ministry of Industry) issued related to the management of the planning, investment in hydroelectric project construction and operation of hydroelectric works contrary to the provisions of this Circular are annulled.

2. The hydropower planning already approved by competent authorities as prescribed before this Circular takes effect shall continue complying with decisions issued.

3. The adjustment, addition of hydropower planning already approved by competent authorities shall comply with the provisions of this Circular.

4. Any problem arising in the implementation of this Circular, the organizations and individuals should reflect in writing to the Ministry of Trade and Industry (through the General Department of Energy) for consideration and settlement. /.