Removing obstacles in handing over electrical projects

Việt NamViệt Nam29/10/2024

For many years, in response to the development requirements of localities, the power grid system has been invested with many sources of capital from the state budget to non-state budget. However, in the process of transferring power projects invested with state capital to the management of Vietnam Electricity Group (EVN), many problems have arisen, making the transfer difficult.

Most of the urban areas in Cao Xanh ward (Ha Long city) have not yet had their assets handed over to the Electricity industry.

According to the Department of Industry and Trade's synthesis of data provided by units and localities, the number of power projects within the scope of adjustment that need to transfer assets to EVN in the province up to now is 661 projects. In reality, the delay in handing over and receiving power projects has many causes, including the complicated transfer process in Decision No. 41/2017/QD-TTg, which goes through many intermediate steps, while the scope has not covered all cases arising in practice. Specifically, Decision 41/2017/QD-TTg clearly states: Only transfer is carried out for power projects invested by the State budget, while other capital sources have not yet had a policy of handing over and receiving, so the Electricity sector has no legal basis to carry out the procedures for handover. Meanwhile, many urban areas in the province are implemented in the form of exchanging land for projects. To be handed over, these projects must have their transfer records prepared by the Provincial People's Committee, assets identified and sent to EVN and the Ministry of Finance for reporting to the Prime Minister for consideration.

The delay in handing over assets to the Electricity sector has also led to a series of other problems arising for businesses and people, especially in urban areas that were established many years ago. Many project investors are very upset when spending tens of billions of VND to invest in technical infrastructure, but the paradox is that the monthly electricity consumption amount that people pay to the Electricity sector, but because the assets have not been handed over, every time the power lines, transformer stations, or electrical cabinets are damaged, the Electricity sector requires investors to continue spending money on repairs. For example, according to calculations by Construction Joint Stock Company 507 Quang Ninh Branch, the annual cost of maintaining and repairing the power grid of the projects has now accounted for 30% of the initial investment capital.

Due to limited capital, many businesses cannot upgrade and repair the power grid system to meet development needs in a timely manner, so over the years the power system has deteriorated, the power quality is unstable, causing safety risks, seriously affecting the quality of life of the people. Typically, in the Cao Xanh and Ha Khanh areas (Ha Long City), when people buy land and build houses, they often have to pull electricity from neighboring residential areas. The main reason is that the power grid system at the projects is almost overloaded, not ensuring operation, so at one point, Ha Long City Electricity issued a document to temporarily stop supplying new electricity to urban areas. Ms. Nguyen Thi Hang (Cao Xanh - Ha Khanh B New Urban Area) shared: People having electricity and water for daily life is a legitimate right to enjoy before moving to live in urban areas. However, to pull electricity, the family had to run around everywhere. It was really tiring.

Households in Cao Xanh-Ha Khanh Urban Area (Ha Long City) have to use electricity by pulling it across the street because for many years the handover of assets between the investor and the Electricity industry has been stuck.

In order to remove obstacles in the procedures for transferring power projects that are public assets to EVN, on January 10, 2024, the Government signed and issued Decree No. 02/2024/ND-CP on the transfer of power projects that are public assets to EVN, effective from March 1, 2024. Decree No. 02/2024/ND-CP has a new point of strongly decentralizing to ministries, branches, localities, and units that are directly managing power projects; specifically regulating the determination of the value of transferred power projects in a simple direction, making maximum use of available information to determine the value; specifically regulating the responsibilities of relevant units.

Mr. Tong Viet Hung, Deputy Director of Construction Joint Stock Company 507, said: Power projects are a special type of asset, only the Electricity industry has the expertise to operate. Therefore, we hope that the locality and Quang Ninh Electricity Company will support and guide businesses to ensure correct understanding, consistency, minimize difficulties and obstacles in practical implementation according to the new Decree, and soon hand over assets to the Electricity industry.

Most low-voltage electrical cabinets in urban areas that have not been handed over to the Electricity industry have seriously degraded and pose potential safety risks.

In order for Decree No. 02/2024/ND-CP to be effective, in early October 2024, the Provincial People's Committee issued Plan No. 231/KH-UBND on the implementation of the transfer of power projects with voltage levels up to 110kV, which are public assets in the province, to EVN. According to the Plan, the roadmap for handling power project transfer dossiers is about 40-45 dossiers/month (expected in 2024, there will be 120 dossiers, the remaining number is according to the attached list and the number of dossiers arising will be transferred to 2025 and the following years). At the same time, the responsibilities of related units are specified.

Mr. Dao Duy Linh, Head of Energy Management Department (Department of Industry and Trade) said: Through understanding the actual situation, the transfer of public assets to Vietnam Electricity Group is assessed to have many difficulties and problems, especially the lack or loss of project and construction documents. The transfer process involves many professional and technical issues such as determining asset value, land procedures, etc., requiring support and guidance from departments, branches and localities. In particular, localities need to create conditions and closely coordinate with investors or units assigned to manage and use electricity works in preparing documents and land procedures in accordance with regulations.


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