National Assembly approves special mechanisms for first nuclear power project

Under the resolution, the Prime Minister is empowered to decide the investor of the project.

A direct contracting method under a streamlined process will be applied to the turnkey package for the construction of the main power plant, with contractors designated in international agreements.

This contract will encompass all legally required construction activities, as well as responsibilities such as preparing site approval documentation, ensuring the entire contract scope, supplying nuclear fuel and operating and maintaining the plant for five years following its acceptance and commissioning.

This streamlined direct contracting process will also apply to key consulting services during both the investment preparation and project implementation phases. These include preparing and reviewing the pre-feasibility study reports, assisting the project owner with negotiations, contract signing and turnkey contract management, verifying site approval documentation, feasibility study reports, technical designs, construction drawings and other required specialized reports, along with overseeing project management and construction supervision.

Additionally, the same streamlined direct contracting process will be used for evaluating technology, safety, security and nuclear regulatory compliance throughout the investment and construction phases of the Ninh Thuan nuclear power projects.

This approach aims to leverage the expertise of both domestic and international specialists and organizations effectively.

The National Assembly has authorized negotiations with partner governments to secure funding for the project based on its capital requirements and the commitments of foreign sponsors. If Vietnamese law does not provide specific regulations yet, or if existing regulations differ from those of foreign sponsors, the project may follow the sponsor's regulations.

The project owner is permitted to take out loans and qualify for lending under a structure in which the on-lending agency assumes no credit risk. Additionally, the project owner is not required to submit proposals for programs or projects using Official Development Assistance (ODA) or concessional foreign loans.

During project implementation, if loan agreement negotiations fail or the loan amount falls short, the Prime Minister is authorized to allocate funds from increased State revenues, central budget savings and other lawful funding sources.

The project owner may arrange corresponding funding from various sources, including commercial loans, corporate bonds, on-lending of government bonds, infrastructure bonds issued by the Government and Government-guaranteed bonds. The terms of on-lending will align with the conditions of the respective bond issuance, the project's debt repayment capacity and the Law on Public Debt Management.

The nuclear power project involves construction of two nuclear power plants in the south-central coastal province of Ninh Thuan, with a combined capacity of 4,000MW.

Viet Nam's total power source capacity is projected to increase to around 150,000 MW in 2030, and around 400,000-500,000 MW in 2050 from about 85,000 MW in 2024. The project is expected to help the country diversify power source, ensure energy security, and achieve the goal of net-zero emissions by 2050.

The Government expects that the project would be completed in 2030 when Viet Nam marks the 100^th anniversary of the Communist Party of Viet Nam (1930-2030)./.