THE PRIME MINISTER OF GOVERNMENT
 -------
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
----------
No.110/2007/QD-TTg
Hanoi, July 18, 2007
 
DECISION
APPROVING THE PLANNING ON NATIONAL ELECTRICITY DEVELOPMENT IN THE 2006-2015 PERIOD, WITH A VISION TO 2025 TAKEN INTO CONSIDERATION
THE PRIME MINISTER
Pursuant to the Law on Organization of the Government dated December 25, 2001;
Pursuant to the Electricity Law dated December 14, 2004;
Considering the Industry Ministry's Report No. 5523/TTr-BCN dated October 3, 2006, Official Letters No. 2080/BCN-NLDK dated May 11, 2007, and No. 2944/BCN-NLDK dated June 27, 2007, and opinions of ministries and branches on the planning on national electricity development in the 2006-2015 period, with a vision to 2025 taken into consideration,
DECIDES:
Article 1.
To approve the Planning on national electricity development in the 2006-2015 period, with a vision to 2025 taken into consideration (referred to as the Electricity Planning VI), with the following principal contents:
1. Objectives:
- Forecasts about load demands:
To satisfy the requirements of national socio-economic development with an annual GDP growth rate of around 8.5%-9% or higher in the 2006-2010 period, Vietnam's electricity demands are forecasted to increase at an annual rate of 17% (basic plan) or 20% (high-level plan) in the 2006-2015 period, of which the high-level plan is the to-be-executed plan and a plan for an annual increase of 22% shall be prepared for cases of extraordinary increase.
- Development of electricity sources
+ To develop electricity sources to satisfy the above-said load demands. To keep to the schedule of construction of hydroelectric power plants for multiple purposes of flood control, water supply and electricity production; to rationally and effectively develop gaseous and thermal electricity sources; to boost the construction of coal-fired thermoelectric plants; to develop small hydropower plants, new and renewable energy sources for deep-lying, remote, mountainous and border areas and islands; to take the initiative in effectively exchanging electricity with regional countries; to ensure national energy security and sustainable development. To complete investment preparations for a project on a nuclear power plant before submission to the Prime Minister for approval.
+ To develop electricity centers in all regions across the country in order to ensure local electricity supply, reduce loss on the national electricity system, ensure economic efficiency of projects and contribute to regional and national socio-economic development.
+ To develop new electricity sources in parallel with formulating plans on intensive investment in, and technology renewal of, existing power plants; to satisfy environmental standards; and to use modern technologies in new electric power plants.
+ To develop electricity sources under the forms prescribed by the State, with a proper proportion of projects to be implemented in the BOT or BOO form as determined by the Ministry of Industry.
+ Electricity source projects under the basic plan are listed in Appendix IA while those under the high-level plan are listed in Appendix IB to this Decision (not printed herein).
- Development of electricity grids:
+ To develop electricity transmission and distribution grids in synchrony with programs on development of electricity sources. To modernize and gradually place underground electricity grids in cities and towns so as to improve the landscape and environment to apply measures to reduce electricity loss according to regulations.
+ Electricity grid projects are listed in Appendix II to this Decision (not printed herein).
2. Electricity in rural and mountainous areas and islands:
a) To continue implementing investment programs for rural electricity development already approved by the Prime Minister, striving for the target that 95% and 100% of communes will have electricity by 2010 and 2015, respectively.
b) The Ministry of Industry shall assume the prime responsibility for, and coordinate with concerned branches and localities in, formulating relevant mechanisms and policies and promulgating documents guiding their implementation.
3. Investment capital sources:
To encourage domestic economic sectors and foreign investors to participate in projects on development of electricity sources and projects on electricity distribution grids in investment forms specified by law.
4. Financial mechanisms:
a) Capable domestic investors may raise capital for investment in electricity source and grid projects under the mechanism of se/f-borrowing and self-payment.
Click Download to see full text