Headlines 14/12/2024 15:57 CH

Assessment standards of bids in selection of investors for investment projects on energy works in Vietnam

Hồng Thía

On November 21, 2024, the Minister of Industry and Trade of Vietnam promulgated Circular No. 27/2024/TT-BCT on standards of the assessment of bids and forms of bidding documents for the selection of investors executing investment projects on energy works.

According to the Circular, the assessment standards of bids assessed under technical evaluation criteria for investment schemes and criteria for evaluation of investment efficiency in energy works are as follows:

(i) Technical evaluation criteria for investment and business schemes of investors in bids shall

- Comply with Points a, b, and c Clause 1 Article 47 of Decree No. 115/2024/ND-CP .

-  Other technical evaluation criteria include:

+ Conformity of investment schemes proposed by investors (including locations of works, scales, progress, space diagrams, execution schedule, investment phasing, and key technical parameters) with decisions on approval for investment guidelines of projects whose investment guidelines require approval or documents approving investment guidelines of investment projects involving land use whose investment guidelines do not require approval.

+ Conformity with basic parameters of power plants according to each power plant type.

(ii) Criteria for evaluation of investment efficiency in electricity

- The ceiling price of electricity shall be formulated based on bidding documents of projects and the maximum price of the electricity generation bracket with respect to electricity source types promulgated by the Ministry of Industry and Trade of Vietnam in the bidding year.

- The principle of formulating the ceiling price of electricity shall be agreed on with electricity buyers according to the law on electricity in bidding documents based on the following:

+ Reasonable and valid expenditures made by investors during the economic life of projects; internal rate of return (IRR) shall not exceed 12%.

+ The ceiling price of electricity without VAT, severance tax, fees for rights to utilize water resources, fees for forest environment services, environmental protection fees regarding solid waste and industrial wastewater (applicable to thermal power plants), and other taxes, fees, and revenues in cash according to regulations of competent state authorities (excluding taxes and fees included in electricity price schemes).

See more details in Circular No. 27/2024/TT-BCT , effective as of its promulgation date.

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