VIETNAM’S LEGAL AND POLICY FRAMEWORK ON ENERGY: CURRENT AND MOVING FORWARD Presentation by Oliver Massmann, Duane Morris V...
AGENDA <ul><li>MESSAGE: LIFE IN A BALANCED ENERGY MIX </li></ul><ul><li>CURRENT LEGAL FRAMEWORK AND RECOMMENDATIONS </li><...
AGENDA (cont.) <ul><ul><ul><li>Strict requirements for independent power projects (“IPP”) prevent foreign investors from i...
AGENDA (cont.) <ul><ul><ul><ul><li>Fixed electricity tariff creates difficulties for investors in negotiating prices with ...
MESSAGE: LIFE IN BALANCED ENERGY MIX
MESSAGE: LIFE IN A BALANCED ENERGY MIX <ul><li>Reflected in Vietnamese policy : </li></ul><ul><li>“ Develop a comprehensiv...
CURRENT LEGAL FRAMEWORK: OVERVIEW <ul><li>Investment Law </li></ul><ul><li>Enterprise Law </li></ul><ul><li>Electricity La...
CURRENT LEGAL FRAMEWORK: OVERVIEW (Cont.) <ul><li>Decree 78/2007/ND-CP on BOT, BTO, BO </li></ul><ul><li>Technology Transf...
LEGAL SHORTCOMINGS: UNCLEAR FORMS OF FOREIGN INVESTMENT IN ENERGY SECTOR <ul><li>In practice, 100% foreign invested compan...
LEGAL SHORTCOMINGS: UNCLEAR FORMS OF FOREIGN INVESTMENT IN ENERGY SECTOR <ul><li>Solutions: </li></ul><ul><ul><li>Expressl...
LEGAL SHORTCOMINGS: STRICT REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><li>The dominance of EVN as t...
LEGAL SHORTCOMINGS: STRICT REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><li>Solution : </li></ul><ul...
LEGAL SHORTCOMINGS: STRICT REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><li>Unreasonable requirements...
LEGAL SHORTCOMINGS: STRICT REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><ul><li>Obtain commitment of ...
LEGAL SHORTCOMINGS: STRICT REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><li>Unfair right of electrici...
LEGAL SHORTCOMINGS: STRICT REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><li>Solution: </li></ul><ul><...
LEGAL SHORTCOMINGS: STRICT LEGAL REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><li>Fixed electricity t...
LEGAL SHORTCOMINGS: STRICT REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><li>Solutions: </li></ul><ul>...
LEGAL SHORTCOMINGS: STRICT REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><li>Wide scope of IPPs subjec...
LEGAL SHORTCOMINGS: STRICT REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><li>Solutions : </li></ul><u...
LEGAL SHORTCOMINGS: LEGAL REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><li>Broad and obscure phrase “...
LEGAL SHORTCOMINGS: UNCERTAINTIES REGARDING REGULATIONS ON BOT <ul><li>There are uncertainties on exact state authority to...
CONT: HOW CAN VIETNAM FINANCE ALL BOT PROJECTS ON ENERGY? <ul><li>Problem: Limit on government guarantee: </li></ul><ul><...
LEGAL SHORTCOMINGS: UNCERTAINTIES REGARDING REGULATIONS ON BOT <ul><li>Investors are not granted the right to the use of d...
LEGAL SHORTCOMINGS: UNCERTAINTIES REGARDING REGULATIONS ON BOT <ul><li>This is a limit of investors right granted under A...
CONCLUSION <ul><li>QUESTION 1: What are your recommendations to form a sustainable energy policy that will benefit Vietna...
CONCLUSION (cont.) <ul><ul><li>Balance supply/demand with realistic growth targets, allowing for adequate planning </li></...
CONCLUSION (Cont.) <ul><ul><li>Develop a long-term plan for energy supply that includes a diversity of resources in the mi...
CONCLUSION <ul><li>QUESTION 2: What are 3 things that Vietnamese government can do in the short term to facilitate investm...
DUANE MORRIS VIETNAM LLC <ul><li>Thank you! </li></ul><ul><li>HO CHI MINH CITY OFFICE HANOI OFFICE </li></ul><ul><li>Me Li...
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Na Presentation Legal And Policy Framework Energy En

Presentation to the National Asssembly of Vietnam by Oliver Massmann on recommendations for Vietnam\\\'s future energy policy
Published on: Mar 3, 2016
Source: www.slideshare.net


Transcripts - Na Presentation Legal And Policy Framework Energy En

  • 1. VIETNAM’S LEGAL AND POLICY FRAMEWORK ON ENERGY: CURRENT AND MOVING FORWARD Presentation by Oliver Massmann, Duane Morris Vietnam LLC – Hanoi, 27 April 2009
  • 2. AGENDA <ul><li>MESSAGE: LIFE IN A BALANCED ENERGY MIX </li></ul><ul><li>CURRENT LEGAL FRAMEWORK AND RECOMMENDATIONS </li></ul><ul><ul><li>Overview </li></ul></ul><ul><ul><li>Legal shortcomings and recommendations : </li></ul></ul><ul><ul><ul><li>Unclear forms of foreign investment in energy sector under the law </li></ul></ul></ul><ul><ul><ul><ul><li>Solution </li></ul></ul></ul></ul>
  • 3. AGENDA (cont.) <ul><ul><ul><li>Strict requirements for independent power projects (“IPP”) prevent foreign investors from investment </li></ul></ul></ul><ul><ul><ul><ul><li>Unreasonable and obscure requirements for investors on agreement in advance with EVN, bank commitment for lending, equity/debt ratio in the pre-licensing procedure. </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Solution </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Unfair right of electricity purchaser to re-negotiate the electricity price in the power purchase agreements (PPA) even after the PPA has been signed. </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Solution </li></ul></ul></ul></ul></ul>
  • 4. AGENDA (cont.) <ul><ul><ul><ul><li>Fixed electricity tariff creates difficulties for investors in negotiating prices with EVN. </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Solution </li></ul></ul></ul></ul></ul><ul><ul><ul><li>Uncertainties regarding regulations on BOT : </li></ul></ul></ul><ul><ul><ul><ul><li>The dominance of EVN as the single electricity buyer discourages investors and adversely affects the development of Vietnam. </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Solution </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Unclear authority of government’s branch regarding government guarantee. </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Solution </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>How can Vietnam finance all BOT projects? </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Solution </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Limit on investor’s right to dispute settlement mechanism. </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Solution </li></ul></ul></ul></ul></ul><ul><li>CONCLUSION </li></ul>
  • 5. MESSAGE: LIFE IN BALANCED ENERGY MIX
  • 6. MESSAGE: LIFE IN A BALANCED ENERGY MIX <ul><li>Reflected in Vietnamese policy : </li></ul><ul><li>“ Develop a comprehensive and reasonable energy system [including] electricity, oil, coal, renewable and new energy with the interest in developing clean energy and priority in developing new and renewable energy…” </li></ul><ul><li>“ Gradually form the energy market, diversify the forms of ownership and forms of business with the aim to satisfy the customers’ interests to the greatest extent…” </li></ul><ul><li>[ Article 1, Vietnam’s national energy development strategy up to 2020, with 2050 vision, as approved by Decision 1855/QD-TTg dated 27 December 2007 based on Resolution 18-NQ/TW dated 25 October 2007 of Politburo of Vietnamese Communist Party’s Central Committee] </li></ul><ul><li>The legal framework should implement such a policy . However, the legal framework does not always do that! Examples are presented in the following slides. </li></ul>
  • 7. CURRENT LEGAL FRAMEWORK: OVERVIEW <ul><li>Investment Law </li></ul><ul><li>Enterprise Law </li></ul><ul><li>Electricity Law </li></ul><ul><ul><li>Electricity Law 2004 </li></ul></ul><ul><ul><li>Decision 105/2005/ND-CP implementing Electricity Law </li></ul></ul><ul><ul><li>Decision 26/2006/QD-TTg </li></ul></ul><ul><ul><li>Sixth Power Development Master Plan (approved by Decree 110/2007/QD-TTg) </li></ul></ul><ul><ul><li>Decision 30/2006/QD-BCN </li></ul></ul>
  • 8. CURRENT LEGAL FRAMEWORK: OVERVIEW (Cont.) <ul><li>Decree 78/2007/ND-CP on BOT, BTO, BO </li></ul><ul><li>Technology Transfer Law </li></ul><ul><li>Tender Law </li></ul><ul><li>Tax Laws </li></ul><ul><li>Oil Law </li></ul>
  • 9. LEGAL SHORTCOMINGS: UNCLEAR FORMS OF FOREIGN INVESTMENT IN ENERGY SECTOR <ul><li>In practice, 100% foreign invested company in energy sector is possible, but where is the clarity in the law? </li></ul><ul><ul><li>Article 23.2 of the Investment Law: Investors shall be permitted to sign a BOT contract, BTO contract and BT contract with the competent state body in order to implement projects for new construction, expansion, modernization and operation of infrastructure projects in electricity production and business . </li></ul></ul><ul><ul><li>Article 2 of Decision 30/2006/QD-BCN: “IPP shall be invested in the form of BOT, BOO or other forms in accordance with the law ” </li></ul></ul>
  • 10. LEGAL SHORTCOMINGS: UNCLEAR FORMS OF FOREIGN INVESTMENT IN ENERGY SECTOR <ul><li>Solutions: </li></ul><ul><ul><li>Expressly stipulate under the law the investment forms foreign investors are allowed to do </li></ul></ul><ul><ul><li>No restriction on the investment form should be set out to attract investors, especially for renewable energy projects </li></ul></ul>
  • 11. LEGAL SHORTCOMINGS: STRICT REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><li>The dominance of EVN as the single electricity buyer discourages investors and adversely affects the development of Vietnam: </li></ul><ul><ul><li>Under Decision 26/2006/QD-TTg on detailed roadmap for the competitive power market, EVN shall be the single buyer for the phase of electricity generation competitive market from 2005 to 2014. </li></ul></ul><ul><li>Reasons : </li></ul><ul><ul><li>For IPP: IPP cannot sell their electricity at a fair price which affects their ability to cover expenses and gain profits. </li></ul></ul><ul><ul><li>For Vietnam: Dominance of EVN would lead to lack of private investment in energy sector which may result in energy deficiency, unimproved infrastructure, and absence of projects on renewable energy, affecting energy efficiency etc. </li></ul></ul>
  • 12. LEGAL SHORTCOMINGS: STRICT REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><li>Solution : </li></ul><ul><ul><li>Build up a fully competitive market in terms of electricity generation, wholesale and retail markets as soon as possible (not until 2024 as currently provided under Decision 26/2006/QD-TTg) </li></ul></ul>
  • 13. LEGAL SHORTCOMINGS: STRICT REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><li>Unreasonable requirements on pre-licensing procedure : </li></ul><ul><ul><li>Under Article 5.2.b, Decision 30/2006/QD-BCN, in order to obtain the approval of the authority for the project, the investor shall: </li></ul></ul><ul><ul><ul><li>Obtain an agreement of EVN on electricity purchasing </li></ul></ul></ul><ul><ul><ul><ul><li>Problem: Time consuming for enterprise, especially when the project has not been approved. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Solution: Agreement should be reached after the principle approval of project (within a certain period) </li></ul></ul></ul></ul>
  • 14. LEGAL SHORTCOMINGS: STRICT REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><ul><li>Obtain commitment of banks or credit institutions on lending </li></ul></ul><ul><ul><ul><li>Problems: Few banks would have enough bravery to guarantee </li></ul></ul></ul><ul><ul><ul><li>Solution: commitment of investor on its financial capability is sufficient </li></ul></ul></ul><ul><ul><li>Equity/Debt ratio shall be 30/70 or less in special circumstance but not under 20/80 </li></ul></ul><ul><ul><ul><li>Problem: No criteria for “special circumstance”; Equity policy expectations are too high for such major projects which can threaten the investors </li></ul></ul></ul><ul><ul><ul><li>Solution: Specifically identify “special circumstance” and lower the equity/debt ratio </li></ul></ul></ul>
  • 15. LEGAL SHORTCOMINGS: STRICT REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><li>Unfair right of electricity purchaser to re-negotiate the electricity price in PPA even after PPA has been signed under Article 23.5 of Electricity Law scares the investors: </li></ul><ul><li>“ An electricity purchaser shall have the right to require the electricity seller to reconsider the amount of electricity price payable and, upon the receipt of such request, the electricity seller must resolve it within 15 days. If the electricity purchasers disagrees with the resolution of this electricity seller, the electricity purchaser may request the competent body or organization to conduct conciliation and if the electricity purchaser does not resolve the issue, the electricity purchaser shall have the right to institute legal proceedings in accordance with the law on civil proceedings. Pending resolution, the electricity purchaser must make payment and the electricity seller must not cut off the electricity supply ” </li></ul>
  • 16. LEGAL SHORTCOMINGS: STRICT REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><li>Solution: </li></ul><ul><ul><li>Option 1: Omit the provision </li></ul></ul><ul><ul><li>Option 2: Determine limited circumstances where the electricity purchaser can apply this right, e.g., only where the electricity purchaser is the household/individuals. Its scope should be non-applicable where IPP is the electricity seller. </li></ul></ul>
  • 17. LEGAL SHORTCOMINGS: STRICT LEGAL REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><li>Fixed electricity tariff under Article 31 of the Law on Electricity creates difficulties for investors in negotiating prices with EVN: </li></ul><ul><ul><li>Article 31 of Law on Electricity: </li></ul></ul><ul><ul><li>The price brackets for electricity generation and electricity wholesale and all types of fees for electricity transmission, for electricity distribution, for managing the electricity system, for managing trading on the electricity market and support service fees shall be prepared by the relevant electricity enterprise, evaluated by the Electricity Regulator and submitted to the Minister of Industry for approval </li></ul></ul><ul><ul><li>Electricity generation prices may be in accordance with a fixed term contract decided by electricity entities, but may not exceed the price brackets and price list approved by competent State body </li></ul></ul>
  • 18. LEGAL SHORTCOMINGS: STRICT REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><li>Solutions: </li></ul><ul><ul><li>No fixed tariff should be applied to electricity selling between IPPs and EVN </li></ul></ul><ul><ul><li>There should only be the framework for negotiations on electricity price between those parties </li></ul></ul><ul><ul><li>Above that, parties should be free to negotiate the electricity price </li></ul></ul>
  • 19. LEGAL SHORTCOMINGS: STRICT REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><li>Wide scope of IPPs subject to tender discourages the investors due to complicated bidding procedure </li></ul><ul><ul><ul><li>Article 4, Chapter 2, Regulations on management of investment and construction of independent power project attached to Decision 30/2006/QD-BCN: </li></ul></ul></ul><ul><ul><ul><li>“ In order to secure the effectiveness and sustainability of the project, the choice of investor shall be made through tender” </li></ul></ul></ul><ul><li>No clear definition on “special circumstances” where relevant authority can choose the investor in the form of bidding appointment creates gap for corruption: </li></ul><ul><li>“ For special circumstances such as the project with small scale, project aiming at electricity supply for remote areas, areas with difficult situation; project with only one investor registering or other rational reasons, the relevant authority has the right to choose the investor in the form of bidding appointment” </li></ul>
  • 20. LEGAL SHORTCOMINGS: STRICT REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><li>Solutions : </li></ul><ul><ul><li>Narrow the scope of projects subject to tender; </li></ul></ul><ul><ul><li>Explicitly provide the definitions for “special circumstances”, “project with small scale”, “project aiming at electricity supply for remote areas”; “project in areas with difficult situation”, “rational reasons” regarding projects under the form of bidding nomination. </li></ul></ul>
  • 21. LEGAL SHORTCOMINGS: LEGAL REQUIREMENTS FOR IPP PREVENT FOREIGN INVESTOR FROM INVESTMENT <ul><li>Broad and obscure phrase “financed by the state capital” under the tender law result in a wide range of projects subject to obligatory bidding to choose the contractors: </li></ul><ul><ul><li>Under the Tender Law, where 30% or more of a project is financed by State capital then contractors will have to be appointed via tendering procedures </li></ul></ul><ul><ul><li>Article 4 of the Tender Law: “Financed by the state capital means the use of State Budget funds, credit facilities guaranteed by the State, credit facilities for investment and development of the State, investment and development funds of the State owned enterprises and other capital funds managed by the State” </li></ul></ul><ul><li>Unclear whether JV project with the participation of one State-owned enterprise or projects having the loan capital guaranteed by the state would be subject to tender regulations? </li></ul><ul><li>Solutions : In order to attract investors by giving them the right to directly appoint contractors, scope of the phrase “financed by the state” should be narrowed down to projects financed by State Budget funds only. </li></ul>
  • 22. LEGAL SHORTCOMINGS: UNCERTAINTIES REGARDING REGULATIONS ON BOT <ul><li>There are uncertainties on exact state authority to be in charge of each kind of government guarantee to investor: </li></ul><ul><ul><li>Article 38, Decree 78/2007/ND-CP: </li></ul></ul><ul><ul><li>“ Where necessary, subject to nature of a project, the Government shall appoint an authorized body to provide on behalf of the Government a guarantee for loans, provision of raw materials, sale of products in the implementation of the project as defined in the project contract and a guarantee for the obligations of State enterprises which have a monopoly over sale of raw materials or purchase of products and services of the project enterprise” </li></ul></ul><ul><li>Solution : Clearly state what authority is to be liable for what kind of guarantee </li></ul>
  • 23. CONT: HOW CAN VIETNAM FINANCE ALL BOT PROJECTS ON ENERGY? <ul><li>Problem: Limit on government guarantee: </li></ul><ul><ul><li>A pure foreign exchange government guarantee might not be enough for investors/lender of big projects </li></ul></ul><ul><ul><ul><li>Govt. guarantees limited by the IMF under the Enhanced Structural Adjustment Program (ESAP). </li></ul></ul></ul><ul><ul><ul><li>Though restrictions expired end of 1998, the Vietnamese are continuing to follow them.  </li></ul></ul></ul><ul><ul><ul><li>Loans with a maturity of 1 to 12 years, the Ministry of Finance can only provide guarantees up to US$400 million per year. </li></ul></ul></ul><ul><li>Solutio n: Create legal framework for sub-national debt financing system, e.g., municipal bond market </li></ul>
  • 24. LEGAL SHORTCOMINGS: UNCERTAINTIES REGARDING REGULATIONS ON BOT <ul><li>Investors are not granted the right to the use of dispute settlement mechanism on state-investor disputes under international treaties to which Vietnam is a member under Article 42.1, Decree 78/2007/ND-CP on BOT : </li></ul><ul><li>“ With respect to projects with foreign invested capital, all disputes shall be first resolved through negotiation and conciliation. In the case of failure to resolve such dispute through negotiation and conciliation, the parties may resolve the dispute in accordance with the following provisions: </li></ul><ul><li>(a) Disputes between the authorized State body and foreign investor (s) or a project enterprise shall be resolved at an arbitration or a court of Vietnam, unless otherwise agree in the project contract …” </li></ul>
  • 25. LEGAL SHORTCOMINGS: UNCERTAINTIES REGARDING REGULATIONS ON BOT <ul><li>This is a limit of investors right granted under Article 12.4 of the Law on Investment, which grants investors the right to use dispute settlement mechanism, e.g., international arbitration, under international treaties to which Vietnam is a member: </li></ul><ul><li>“ Any dispute between a foreign investor and a State administrative body of Vietnam relating to investment activities in the territory of Vietnam shall be resolved by a Vietnamese court or arbitration body, unless otherwise provided in a contract signed between a representative of the competent State body of Vietnam and the foreign investor or in an international treaty of which the Socialist Republic of Vietnam is a member .” </li></ul><ul><li>(Article 12.4 of the Investment Law) </li></ul><ul><li>Solution : </li></ul><ul><ul><ul><li>Amend provision 42.1, Decree 78/2007/ND-CP to give the investors right to use international dispute settlement under international treaties to which Vietnam is a member; </li></ul></ul></ul>
  • 26. CONCLUSION <ul><li>QUESTION 1: What are your recommendations to form a sustainable energy policy that will benefit Vietnam in the long term: </li></ul><ul><li>ANSWER: </li></ul><ul><ul><li>Defining “sustainable energy” as the provision of energy such that it meets the needs of the present without compromising the ability of future generations to meet their needs. It usually refers to renewable sources as well as to energy efficiency </li></ul></ul>
  • 27. CONCLUSION (cont.) <ul><ul><li>Balance supply/demand with realistic growth targets, allowing for adequate planning </li></ul></ul><ul><ul><li>Evaluate commercial alternatives to meet strategic objectives. Strike a balance between meeting supply needs, long-term energy security, cost-benefit, etc. </li></ul></ul><ul><ul><li>Focus on energy efficiency. Create programs that reward and create incentives for efficient energy use. Maximize efficiency through COMPETITION in the gas and power sectors. </li></ul></ul><ul><ul><li>Encourage the development and use of cogeneration technologies which greatly improves the efficiency of energy use by the coproduction of power and steam. Opportunity in refineries, petrochemical plants, basically any place requiring steam/heat can become the thermal host for cogeneration; </li></ul></ul><ul><ul><ul><li>Cogeneration: is the use of a heat engine or a power station to simultaneously generate both electricity and useful heat </li></ul></ul></ul>
  • 28. CONCLUSION (Cont.) <ul><ul><li>Develop a long-term plan for energy supply that includes a diversity of resources in the mix. Do not rush to meet all near-term supply needs with coal, when there might be better alternatives available. Balance the cost-benefit of each resource in the fuel mix debate. Hydrocarbons will continue to play a huge role in Vietnam’s energy future, so develop policies which most efficiently utilize those resources </li></ul></ul><ul><ul><li>Apply the right technology at the right time. Do not rush to apply technology too early before it is ready. Do not lose sight of entire cost to incorporate renewable resources (e.g., interconnection cost of wind and need to bank with thermal or hydro resources in order to have a stable sources of supply) </li></ul></ul>
  • 29. CONCLUSION <ul><li>QUESTION 2: What are 3 things that Vietnamese government can do in the short term to facilitate investment in the energy sector? </li></ul><ul><li>ANSWER: </li></ul><ul><ul><li>Increase retail electricity price. This is mandatory to fund the expansion that EVN must undergo to meet rising demand but also to allow EVN the ability to pay more in PPA’s, which will allow more investments to be made in the energy value chain. </li></ul></ul><ul><ul><li>Debottleneck the process of negotiating PPAs and Gas Supply Agreements (GSAs). Accelerate development of the energy markets to move beyond PV as the single buyer of natural gas and EVN as the single buyer of power. Accelerate the timetable allowing for direct sales of gas and power to the industrial sector. </li></ul></ul><ul><ul><li>Develop a regulatory framework in gas and power that ensures transparency and predictability for investors. </li></ul></ul>
  • 30. DUANE MORRIS VIETNAM LLC <ul><li>Thank you! </li></ul><ul><li>HO CHI MINH CITY OFFICE HANOI OFFICE </li></ul><ul><li>Me Linh Point Tower Pacific Place </li></ul><ul><li>2 Ngo Duc Ke 83B Ly Thuong Kiet </li></ul><ul><li>Ho Chi Minh City Hanoi </li></ul><ul><li>VIETNAM VIETNAM </li></ul>

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