VIETNAM - SOLAR POWER - Breaking News - PRIME MINISTER's FINAL WORD ON POSSIBLE COD EXTENSION FOR SOLAR POWER PROJECTS IN NINH THUAN PROVINCE - WHAT YOU MUST KNOW!!!
VIETNAM - SOLAR POWER - Breaking News - PRIME MINISTER's FINAL WORD ON POSSIBLE COD EXTENSION FOR SOLAR POWER PROJECTS IN NINH THUAN PROVINCE - WHAT YOU MUST KNOW!!!
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VIETNAM - SOLAR POWER - Breaking News - PRIME MINISTER's FINAL WORD ON POSSIBLE COD EXTENSION FOR SOLAR POWER PROJECTS IN NINH THUAN PROVINCE - WHAT YOU MUST KNOW!!!
1. VIETNAM - SOLAR POWER - Breaking News - PRIME MINISTER's FINAL WORD ON
POSSIBLE COD EXTENSION FOR SOLAR POWER PROJECTS IN NINH THUAN
PROVINCE - WHAT YOU MUST KNOW:
Solar energy industry in Vietnam remains one of the most legally unpredictable areas as the saga
around the possible COD extension appears to re-emerge. On 8 August 2018, the Government
issued a Resolution No. 104/NQ-CP summarizing the decisions that this authority reached in its
regular meeting in July 2018. In this 12-page long document, the Government only briefly
addressed the issue of possible COD extension for PV energy projects in Ninh Thuan (Point 14).
Accordingly, it appears that after many backs-and-forths, the long proposed COD extension for
Ninh Thuan solar power projects will be approved.
This proposal has been through a lot of hectic struggles. The market would recall that rumor for
such extension was first emerged in June 2018, before an official letter from the Prime Minister
Office killed it off in July 2018. Now, it appears that the advocates for COD extension finally
prevail as this is the first ever such COD extension is approved by a legal document issued by the
Government rather than quasi-judicial official letters.
It must be noted that the language under Resolution No. 104 does not provide a certainty as it still
calls for MPI to finalize another legal document to formalize this extension. However, Resolution
No. 104 provides a clear mandate that MPI must finalize such legal document prior to 20 August
2018. As this article is published, such document should be already in place but there is no such
information available on the public domain to confirm it. That means the players in this market
will need to take every movement by the Government with a pinch of salt in light of internal
struggles that we have witnessed.
A very important note is that this COD extension is not for every one. First, it only limits to solar
power projects in Ninh Thuan province, which adds up so far to 2,000 MW. So, a project owner
in Binh Thuan would need to pass this news as reference only even though we learn that many
players and watchdogs are pushing for a nationwide COD extension, expecting to be out end of
this year. Second, only projects which are already in the master plan approved by the MOIT and
the Government will receive this treatment. That means, new and upcoming projects will not
receive this COD extension.
As experience will tell, there will be a lot more to learn from this new area for both sides,
government and the investors. Please stay tuned for more updates!
***
2. If you have any question on the above, please do not hesitate to contact Dr. Oliver Massmann
under omassmann@duanemorris.com . Dr. Oliver Massmann is the General Director of Duane
Morris Vietnam LLC.
Thank you very much!