Decision No. 41/2017/QD-TTg dated September 15, 2017 on procedures for transfer of state-funded electricity works to Vietnam Electricity

DECISION

ON PROCEDURES FOR TRANSFER OF STATE-FUNDED ELECTRICITY WORKS TO VIETNAM ELECTRICITY

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Law on State budget dated June 25, 2015;

Pursuant to the Law on Electricity dated December 03, 2004;

Pursuant to the Law on Promulgation of Legislative Documents dated June 22, 2015;

At the request of the Minister of Finance;

The Prime Minister promulgates a Decision on procedures for transfer of state-funded electricity works to Vietnam Electricity (hereinafter referred to as "EVN").

Chapter I

GENERAL PROVISIONS

Article 1. Scope

1. This Decision deals with procedures for transfer of state-funded electricity works to EVN.

In case the electricity work is financed by loan capital but its owner has not fully repaid the loan, such owner shall continue to manage the electricity work and make repayment; after the loan has been fully repaid, the owner shall submit a report on transfer of the electricity work to EVN as prescribed in this Decree.

2. The transfer of assets that are completed electricity works or electricity work items in the programs for power supply for rural and mountainous areas and islands from 2013 to 2020 shall comply with the Decision No. 2081/QD-TTg dated November 08, 2013 of the Prime Minister and guiding documents.

Article 2. Regulated entities

1. Organizations and units that have electricity works to be transferred (hereinafter referred to as “the transferor”, including:

a) Regulatory authorities;

b) Units affiliated to People's Armed Forces.

c) Public service providers;

d) Political organizations, socio-political organizations;

dd) State-funded project management unit;

e) Enterprises assigned to act as the investor or manage electricity works whose value shall not be included in the state capital invested in enterprises.

2. EVN (the transferee).

3. Other relevant organizations and individuals.

Article 3. Definitions

For the purposes of this Decision, the terms below shall be construed as follows:

1. Electricity works include: 110kV power transmission lines and stations, medium and low voltage transmission lines and electrical substations financed by the state capital, managed and used by organizations and units.

2. State capital includes: state budget; official development assistance; concessional loans granted by foreign sponsors; capital granted by the fund for development of public services; the state-owned investment and development loan; Government-guaranteed loan.

Chapter II

SPECIFIC PROVISIONS

Article 4. Procedures for transfer of electricity works

1. The transferor shall make and submit an application for transfer to its supervisory authority (if any). The receiving authority shall submit the application to the Ministry, ministerial authorities, Governmental authorities and other central government authorities (hereinafter referred to as “Ministry and central government authorities”) if the transferor is under the management of a central authority, to the People's Committee of the province if the owner is under the management of a local authority.

An application for transfer of assets includes:

a) The written request for transfer of assets made by the transferor: 01 original;

b) The written request for transfer of assets made by the supervisory authority (if any): 01 original;

c) List of assets to be transferred made using the Form No. 01a provided in the Appendix enclosed herewith: 01 original;

d) Asset-related documents (if any): 01 copy.

2. Within 30 days from the day on which a valid application is submitted, the Ministry, central government authority or People’s Committee of the province shall submit a written request to EVN for comments on the transfer of asset.

3. Within 30 days from the day on which the request submitted by the Ministry, central government authority or People’s Committee of the province is received, EVN shall submit a written comment to EVN the Ministry, central government authority or People’s Committee of the province having assets to be transferred (02 originals).

4. According to the written comment submitted by EVN, the Ministry, central government authority or People’s Committee of the province shall direct the transferor to cooperate with EVN in conducting stocktaking according to the Form No. 02 provided in the Appendix enclosed herewith and valuing assets as prescribed in Article 8 of this Decree. For the asset that is a damaged and unusable electricity work, the transferor shall handle it as prescribed by law.

5. According to the results of asset stocktaking and valuation, on a quarterly basis (in case of unexpected situation), the Ministry, central government authority or People’s Committee of the province shall make and submit an application for transfer of assets to the Ministry of Finance, which will request the Prime Minister to consider making a decision on transfer of assets.

An application for transfer of assets includes:

a) The written request for transfer of assets made by the Ministry, central government authority or People’s Committee of the province: 01 original;

b) List of assets to be transferred made using the Form No. 01b provided in the Appendix enclosed herewith: 01 original;

c) The written request for receipt of assets made by EVN: 01 original;

d) The documents prescribed in Clause 1 of this Article: 01 copy.

6. Within 30 days from the day on which a valid application is submitted, the Ministry of Finance shall request the Prime Minister to consider making a decision on transfer of assets.

The decision on transfer of electricity works shall be made using the Form No. 03 provided in the Appendix enclosed herewith.

Article 5. Transfer of electricity works

1. Within 30 days from the day on which the decision on transfer issued by the Prime Minister is received, the transferor shall take charge and cooperate with the transferee in transferring electricity works, and prepare the documents prescribed in Article 6 of this Decision.

2. The transfer of assets shall be made into a record. The main contents of the record on transfer of electricity works includes: transferor; transferee; list of transferred assets; value of transferred assets. The record on transfer of assets shall be made using the Form No. 04 provided in the Appendix enclosed herewith.

Article 6. Documents on transfer of electricity works

The documents on transfer of electricity works include original documents and documents compiled at the time of transfer.

1. The original documents include:

a) Investment decision, technical design, construction drawing and approved estimate of electricity works, record on commissioning of works and independent work items related to electricity works: 01 certified true copy;

b) Documents and accounting records related to determination of cost and remaining value of the electrical grid, investment capital structure: 01 copy;

c) The final cost statement approved by a competent authority (if available): 01 copy;

d) As-built documentation, the site plans of electricity transmission lines and electrical substation: 01 copy;

dd) Documents concerning allocation or transfer of land for construction of works and other relevant documents (if any): 01 copy.

The copies specified in this Clause must bear the signature and seal of the transferor.

2. Apart from the documents specified in Clause 1 of this Article, the transferor shall cooperate with the transferee in preparing documents at the time of transfer, including:

a) The site plan of the electricity work (the original) created by the transferor and transferee at the time of transfer as the legal basis for operation and management;

b) The record on transfer of assets (the original).

3. In case the documents specified in Points a, c, d and dd, Clause 1 of this Article are not available or are lost, the head of the transferor shall send a written confirmation to the transferee and take responsibility for such confirmation.

Article 7. Responsibilities of the transferor and transferee

1. The transferor has the following responsibilities:

a) Prepare all documents specified in Clause 1, Article 6 of this Decision, and cooperate with the transferee in conducting stocktaking of and valuing the transferred assets;

b) Transfer assets and relevant documents, and facilitate the receipt, management and operation by the transferee;

c) Record decreases in quantity and value of the transferred assets.

2. The transferee has the following responsibilities:

b) Cooperate with the transferor in asset stocktaking and valuation;

b) Receive assets and relevant documents;

c) Record an increase in state capital invested in EVN;

d) Manage, operate, maintain and repair assets in accordance with regulations of law.

Article 8. Valuation of transferred electricity works

1. In case an electricity work is managed and recorded in accordance with regulations of applicable law, the value of the transferred assets equals the remaining value of the electricity work included in the accounting records at the time of stocktaking and valuation.

2. In case the electricity work is yet to be recorded and depreciated over its useful life but documents about approval for final cost statement of the work and useful life are adequate, the transferred asset shall be valued as follows:

3. In case the electricity work is yet to be recorded and depreciated over its useful life but documents about approval for final cost statement of the work are not available and it is fully depreciated and remains usable, the transferor shall request the supervisory authority to establish an Asset Valuation Council or shall cooperate with the transferee in hiring an organization licensed for asset valuation.  In case of establishment of an Asset Valuation Council, the Council includes: Representative of the transferor, representative of the transferee and other members (if any).

The asset valuation shall be carried out in conformity with market price of the asset of the same type and remaining quality of each asset. To be specific:

4. In case the asset is yet to have its final cost statement approved by a competent authority, the asset value shall be temporarily calculated in the following order of priority:

a) Proposed value;

b) Value determined according to the A-B commissioning record;

c) Approved value.

Within 07 working days from the day on which the competent authority approves the final cost statement, the transferor shall submit a written notice enclosed with 01 copy of the written approval for final cost statement to the transferee, which will revalue the asset according to the approved final value.

Article 9. Settlement of costs incurred during the transfer of assets

1. The costs incurred in connection with transfer of electricity works include:

a) Costs of asset stocktaking and valuation;

b) Other costs incurred in connection with the transfer of assets (if any).

2. The costs prescribed in Clause 1 of this Article shall be covered in accordance with the norms and policies prescribed by the competent authority. In case such norms and policies are not available, the head of the authority charged with paying costs shall decide the amounts in conformity with the State’s policy for financial management and take responsibility for his/her decision.

3. The costs prescribed in Clause 1 of this Article shall be covered as follows:

a) Costs payable to officials responsible for the transfer of assets shall be covered by the party employing such officials as prescribed.

b) Other costs incurred in connection with the transfer of assets shall be covered by the transferee and aggregated with the operating costs of enterprises.

Article 10. Methods of transfer of electricity works

The transfer shall be carried out by recording an increase in state capital invested in EVN according to the value of the transferred electricity works. Capital shall not be returned. The transferor shall record decreases in quantity, historical costs and remaining value of the transferred assets as prescribed by law.

Article 11. Use of land associated with the electricity to be transferred

1. In case an electricity work is located within the premises or facility for public services or within the infrastructure and cannot be separated therefrom, the transferor shall continue to manage and use the land associated with the electricity work to be transferred, sign an agreement with the transferee and enable the transferee to maintain, repair, manage and operate the transferred electricity work.

2. In case an electricity work is located outside the premises or facility for public services or infrastructure or can be separated therefrom, the land associated with the electricity work shall be transferred. The transferee shall cooperate with the transferor in contacting local authorities to follow procedures for leasing the land associated with the electricity to be transferred. Land rent or land levy is not charged on the area of land associated with the electricity work.

Chapter III

IMPLEMENTATION

Article 12. Effect and transitional provisions

1. This Decision comes into force from November 01, 2017.

2. Transitional provisions:

a) Regulations of this Decision shall not apply to the electricity work that is transferred by permission of the Prime Minister and has been completely transferred before the effective date of this Decision.

b) For the electricity work that is transferred to EVN by permission of the Prime Minister before the effective date of this Decision but has not yet been completely transferred, necessary tasks shall be performed to completely transfer the electricity work as prescribed in this Decision.

c) For the electricity work that has not obtained the Prime Minister’s permission for transfer to EVN by but temporarily transferred to EVN by an organization or unit, the responsible organization or unit shall inform a competent authority thereof for completion of procedures for transfer of an electricity work to EVN as prescribed in this Decision.

Article 13. Responsibility for implementation

1. Ministries, ministerial authorities, Governmental authorities, other central government authorities, People’s Committees of provinces and central-affiliated cities shall direct organizations and units under their management to review and compile a list of state-funded electricity works eligible for transfer as prescribed in this Decision, and cooperate with EVN in asset stocktaking and valuation and submit a report thereon to the Ministry of Finance, which will submit it to the Prime Minister.

2. EVN has the following responsibilities:

a) Direct and guide Power Corporations to cooperate with the transferor in receipt, management and operation of electricity works as prescribed.

b) Submit annual reports on transfer of electricity works, increases in capital and capital reimbursement of the previous year (by March 31) to the Ministry of Industry and Trade and Ministry of Finance.