DECISION

APPROVING THE PLANNING ON DEVELOPMENT AND RENOVATION OF HO CHI MINH CITY'S POWER NETWORK IN THE 2002-2010 PERIOD, WITH THE PROSPECT TILL 2020 TAKEN INTO ACCOUNT

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;
At the proposal of the Ministry of Industry (Official Dispatch No. 2733/CV-KHDT dated July 22, 2002); and proceeding from the opinions of the concerned ministries and branches regarding the approval of the planning on renovation and development of Ho Chi Minh City's power network in the 2001-2010 period, with the prospect till 2020 taken into account,

DECIDES:

Article 1. To approve the planning on development and renovation of Ho Chi Minh City's power network in the 2002-2010 period, with the prospect till 2020 taken into account (hereinafter referred to as Ho Chi Minh City's Electricity Planning for short) with the following principal contents:

1. On the load demand:

To steadily develop, raise the quality of, and fully satisfy the demand for load in service of people's daily life as well as socio-economic development, security and defense; to meet the requirements of the national industrialization and modernization, and ensure the achievement of the socio-economic development objectives till 2010 and the realization of the development orientation till 2020. The load demand is forecasts as follows:

- By 2005: The commercial electricity output shall reach 11.2 to 11.9 billion kWh with the maximum capacity of 2,180 to 2,310 MW. The average electricity growth rate in the 2002-2005 period shall be 14.1 to 15.4%/year. The per-capita electricity output shall reach 1,970 kWh/person/year.

- By 2010: The commercial electricity output is expected to reach 21.3 to 22.9 billion kWh with the maximum capacity of 3,900 to 4,270 MW. The average electricity growth rate in the 2006-2010 period shall be 13.6 to 14.1%/year. The per-capita electricity output shall reach 3,225 kWh/person/year.

- By 2020: According to the orientation, the commercial electricity output shall reach 48.4 to 57.3 billion kWh with the maximum capacity of 8,678 to 10,200 MW. The average electricity growth rate in the 2011-2020 period shall be 8.6 to 9.6 %/year. The per-capita electricity output shall reach 5,730 kWh/person/year.

2. On the renovation and development of the electric power network :

a) The renovation and development of Ho Chi Minh City's electric power network must satisfy the above-said load demand, with a back-up, and be made synchronously from high tension to low tension networks, thus overcoming the current state of unsafe, patchy and high-loss power grid.

b) Viewpoint and standards for designing the diagram of the city's power transmission and distribution networks shall be as follows:

- 220 and 110 kV networks: Shall be designed in loop circuits with every transformer station energized by two sources. The wire cross-section for aerial 220 or 110 kV power lines shall be ≥ 400 mm2, or ≥ 240 mm2 for phase-wire . In the inner city, 220 or 110 kV power lines shall be designed with two or more circuits, while at places with urban aesthetic requirements, underground copper-core cable with appropriate cross-sections and transformer stations furnished with modern technologies (GIS, compact) shall be installed.

- Medium-tension distribution network: Shall, according to the orientation, be converted into lines with the standard voltage of 22 kV. The network structure and its reliability shall be designed according to the following principle: Medium-tension lines shall be designed in loop circuits and energized from two 110kV transformer stations or two sectionalizing busbars of a 110 kV station; power lines in the city center and new urban quarters shall be laid underground. The outgoing feeders shall be protected by line-end breakers and load breakers on the axis at appropriate positions for sectionalizing purpose. The ramifications shall be protected by FCO or LBFCO at ramification ends.

- Low-tension networks: Shall use the low-voltage (220/380V) three-phase four-conductor system with one neutral earthing, or one-phase two-conductor system. Underground low-tension cable shall use XLPE conductor with a cross-section of 4 x 120 mm2 or 4 x 95 mm2 in main quarters and new urban areas with high urban aesthetic requirements. In other areas, aerial bundled cable (ABC) with a cross-section of 4 x 70 mm2, 4 x 95 mm2 or 4 x 120 mm2 shall be used.

c) Volumes of new construction and renovation of Ho Chi Minh City's electric power network by the planning phases shall be as follows:

- The 2002-2010 period:

+ 220 kV power line: 102 km shall be newly built.

+ 110 kV power line: about 284.7 km shall be newly built and 81 km shall be renovated.

+ 220 kV transformer stations: Five new transformer stations with a total output of 2,250 MVA shall be built, while six existing stations shall be renovated with the total additional output of 1,432 MVA.

+ 110 kV transformer stations: 32 new transformer stations with a total output of 2,492.6 MVA shall be built, while 36 existing stations shall be renovated with the total output of 2,403.6 MVA

+ Medium-tension distribution network: A new 22 - 15 kV line shall be built, including aerial line and underground cable with a total length of 1,940 km, while other 297 km, including 104 km of underground cable, shall be upgraded to 22 kV. To accelerate the underground installation of the medium-tension network, thus ensuring that by 2010 the underground rate reach 50%.

+ New consumption transformer stations shall be built with a total output of 2,984,717 kVA and existing ones shall be renovated with the total output of 1,097,854 kVA.

+4,873 km of low-tension lines shall be built.

Projects and works for renovating and developing the power transmission network in Ho Chi Minh City in the 2002-2010 period are on the list enclosed with the Appendix to this Decision. Particularly, the 220 kV network shall be in line with Vietnam's Electricity Development Planning (phase V of the electricity planning).

- Power network development works after 2010 shall be specifically identified when implementing Ho Chi Minh City's Electricity Planning for the subsequent period.

3. On the investment capital demand:

The total investment capital demanded for the renovation and development of Ho Chi Minh City's power network in the 2002-2010 period shall be VND 9,993.2 billion, of which VND 5,443.2 billion is demanded for the 2002-2005 period and VND 4,550 billion is demanded for the 2006-2010 period. Investment capital for the 2002-2010 period shall be distributed to networks of various power tensions as follows:

+ 220 kV network : VND 1,606.6 billion

+ 110 kV network : VND 3,292.6 billion

+ Medium-tension network : VND 3,862.7 billion

+ Low-tension network: VND 1,11 billion

+ Reactive power compensation for medium- and low- tension lines, equipment on networks and breakers: VND 120.3 billion.

The investment capital demand of the 220kV network or higher-tension networks shall be balanced within Vietnam's Electricity Development Planning, phase V; while in Ho Chi Minh City's Electricity Planning, the investment capital demand shall be considered for the 110kV network or lower-tension networks. The total investment capital demand for the 110 kV network and the medium- and low- tension distribution networks of the whole city in the 2002-2010 period shall be VND 8,386.6 billion, of which the capital already incorporated in plans shall be VND 1,601.4 billion.

4. On mechanisms:

Specific support mechanisms and policies shall be studied and promulgated on the basis of nature and demands of projects.

It is permitted to make feasibility study reports, skipping the stage of elaborating pre-feasibility study reports, for projects on the list of projects on� development and renovation of the power transmission network in Ho Chi Minh City in the 2002-2010 period.

Article 2.- Organization of implementation

1. The Ministry of Industry:

a) To direct Vietnam Electricity Corporation and Ho Chi Minh City Electricity Company in implementing Ho Chi Minh City's Electricity Planning strictly according to the set plans and schedules. Cases beyond its competence shall be reported to the Prime Minister for consideration and decision.

b) To study and propose mechanisms and policies for implementation of Ho Chi Minh City's Electricity Planning according to its competence.

c) To regularly evaluate and update the electricity load demand, in order to adopt a rational electricity network development program which can satisfy the city's load demand after 2005. In case of great changes in the load demand, it shall have to take initiative in calculating and promptly readjusting and supplementing Ho Chi Minh City's Electricity Planning, then submit it to the Prime Minister for approval.

2. The People's Committee of Ho Chi Minh City:

a) To plan the allocation of land to projects on electricity transmission lines and transformer stations in line with the approved electricity planning.

b) To balance capital to investment projects on rural electrification or underground installation of electricity distribution networks of the inner city and new urban quarters according to the investment decentralization.

c) To coordinate with the concerned ministries and branches in synchronously planning the common technical infrastructure, particularly the city's underground works.

d) To direct the functional bodies in examining and handling acts of encroaching upon the power grid safety corridor, with a view to ensuring safety for people and minimizing incidents to the city's power grid.

3. Vietnam Electricity Corporation:

a) To be responsible for ensuring the stable and safe power supply, with higher and higher quality and better services, thus meeting socio-economic development demand and the people's daily life.

b) To mobilize and efficiently use all capital sources for investment in the renovation and development of the power grid according to mechanism of self-borrowing and self-repaying, and the realization of the mechanism whereby the central government, localities, the State and people jointly develop rural power networks in suburban districts; and modernize the power distribution network in the inner city and new urban quarters. To execute projects on the approved list for achievement of the objectives set forth in the planning according to the set schedule.

c) To base itself on the list of projects specified in the Appendix enclosed herewith to formulate and submit projects to competent authorities for approval according to the current regulations.

Article 3.- This Decision takes effect after its signing.

Article 4.- The Minister of Industry , the heads of the concerned ministries and branches, the president of the People's Committee of Ho Chi Minh City, the Managing Board and the general director of Vietnam Electricity Corporation shall have to implement this Decision.

APPENDIX

LIST OF POWER LINE AND TRANSFORMER STATION PROJECTS IN THE 2002-2010 PERIOD IN HO CHI MINH CITY
(Issued together with the Prime Minister's Decision No. 699/QD-TTg dated August 23, 2002)

1. List of transformer stations:

2. List of transmission lines: