Bottlenecks in investing in power transmission projects

Việt NamViệt Nam06/11/2024


Many power transmission projects of Vietnam Electricity Group (EVN) have not been able to accelerate investment, even though they are in the list of key projects in the energy sector.

The implementation of the power transmission project encountered many difficulties, mainly related to investment approval procedures. Photo : D.T.

Three major bottlenecks

EVN said that in order to increase the ability to supply electricity to the North, the Group has proposed a series of important power transmission grid projects to the List of important national programs, works and projects, key energy sector under the direction of the State Steering Committee for important national programs, works and projects, key energy sector and approved in Decision 270/QD-TTg.

However, the implementation of these projects encountered many difficulties.

There are three main problems listed by EVN, including procedures for approving investment policies, approving conversion of forest use purposes, and compensation and site clearance.

These difficulties can cause many projects to take 2-4 years longer to complete, leading to failure to meet the power connection schedule of the projects.

Specifically, a number of transmission projects to relieve the capacity of hydropower sources in the Northwest region have been approved and have started construction, but when implementing the next steps, the locality requested additional procedures for approving investment policies to carry out land allocation and land lease. This has prolonged the implementation time compared to the original plan.

Examples given by EVN are projects that have completed the approval procedures for the Feasibility Report/Technical Design, such as the Phong Tho – Than Uyen 220 kV Line, or are under construction such as the Dien Bien 220 kV Transformer Station, Pac Ma 220 kV Transformer Station, Phong Tho 220 kV Transformer Station, Dien Bien – Son La 220 kV Line, but the locality still requires additional procedures for approving the investment policy, so the next steps cannot be carried out.

There are also projects that are facing problems with having to supplement land use planning for the project, such as the 500 kV Quynh Luu Transformer Station.

Challenges also come to the projects of 220 kV Than Uyen Transmission Line - 500 kV Lao Cai Transformer Station, 220 kV Phong Tho - Than Uyen Transmission Line, 220 kV Pac Ma - Muong Te Transmission Line when having to complete the dossier to change the purpose of forest use according to Decree 91/ND-CP dated July 18, 2024 because it had not been completed before according to the old regulations.

Also due to the lack of guidance on Article 248 of the 2024 Land Law, some departments of agriculture and rural development are temporarily suspending the processing of dossiers on forest use conversion, leading to some projects not having their forest use conversion plans approved, such as the Pac Ma - Muong Te 220 kV Line, Phong Tho 220 kV Transformer Station, and Phong Tho - Than Uyen 220 kV Line.

There are also situations where contractors are facing financial difficulties, so they cannot focus on construction and ensure progress. This happens in the projects of the 220 kV Huoi Quang – Nghia Lo Transmission Line, the 220 kV Nghia Lo Transformer Station and the 220 kV Transmission Line connecting Nghia Lo – 500 kV Viet Tri Transformer Station.

Some contractors even had their packages terminated due to prolonged contract implementation time, difficulties in site clearance and route adjustment, such as the 500 kV Nho Quan - Phu Ly - Thuong Tin line.

EVN also listed many projects facing difficulties in site clearance compensation because the units with power lines passing through them did not agree with the compensation plan, including the 220 kV Huoi Quang - Nghia Lo Line, the 220 kV Nghia Lo Transformer Station and the 220 kV Nghia Lo - Viet Tri Line; the 220 kV Dien Bien Transformer Station...

Fundamental solutions require a lot of effort

According to EVN, in recent times, a number of localities have approved investment policies for power grid projects according to the Investment Law. However, many localities have not yet agreed to apply legal regulations to approve investment policies for power grid projects proposed by EVN and other units.

In order to continue promoting the spirit and combined strength of the entire political system as in the recent construction of the 500 kV line 3, EVN requests the Government, the Prime Minister and ministries, branches and localities to continue directing and supporting EVN in implementing urgent projects to shorten the time for project preparation and construction, promptly increasing the supply for the Northern power system.

On July 23, 2024, the Ministry of Planning and Investment issued Document No. 5808/BKHĐT-KTCNDV guiding the procedures for approving investment policies for EVN's power grid projects. However, to fundamentally resolve and unify this issue, it is necessary to include in legal documents (Electricity Law, or Government Decree) the content regulating projects approved by competent authorities in the list of 5-year production, business and investment development plans of enterprises established by the Prime Minister).

In particular, EVN's power projects are the type of projects that are "approved in principle for investment, and at the same time approved for investors without auctioning land use rights, without bidding to select investors".

Site clearance for power grid projects has not been a new story for the past decade, but there is still no fundamental solution, continuing to cause major obstacles, affecting the progress of projects.

This challenge requires efforts not only from investors, but also depends largely on the direction and management of local authorities and the support of affected people. Therefore, EVN recommends that competent authorities in the process of developing policy mechanisms need to supplement regulations on the content of coordinating procedures on site compensation and construction implementation.

Another challenge mentioned by EVN is the obligation to deposit funds to ensure the implementation of investment projects for which the State allocates land, leases land, and allows the change of land use purpose (according to Articles 25 and 26, Decree 31/2021/ND-CP).

In fact, the projects invested and constructed by EVN are all included in the list of 5-year production, business and development investment plans approved by the Prime Minister. The task of constructing the projects is to ensure electricity supply for localities, serving the economy and national energy security; even for many projects, competent agencies under the Government must support EVN in negotiating loans from domestic and foreign credit institutions, so the deposit requirement is a big difficulty for EVN, as well as the units.

Regarding this issue, EVN proposes to have specific guidance from competent authorities to reduce financial difficulties and avoid consequences in investing in State energy infrastructure projects.

Source: https://baodautu.vn/diem-nghen-khi-dau-tu-du-an-truyen-tai-dien-d229026.html


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