On the evening of February 10, the National Assembly Standing Committee reviewed policies and special mechanisms for the construction of nuclear power plants in Ninh Thuan, preparing to present the proposal for approval at the extraordinary session opening on February 12.

Selecting contractors under the bidding law may cause delays

Presenting the proposal, Minister of Industry and Trade Nguyen Anh Dung stated that the government is suggesting several special mechanisms to ensure the project is operational within the next five years.

One of these policies involves contractor selection. The government proposes allowing the prime minister to assign the project investor, applying a turnkey contract model and initiating contractor selection immediately after the National Assembly approves adjustments to the project’s investment policy.

Notably, the government seeks approval to apply direct contractor appointment for the turnkey construction package of the main plant with the contractor named in the intergovernmental agreement.

This would follow a streamlined direct appointment process, allowing for direct negotiations based on a draft contract sent to the contractor.

The government explains that a turnkey contract is necessary to accelerate the project, as nuclear power plants require initial nuclear fuel and expert operation and maintenance support in their early stages.

Currently, the bidding law does not include provisions for selecting contractors for packages that combine construction investment costs with operational costs, such as purchasing nuclear fuel and hiring operational experts.

As a result, following the conventional bidding process would extend the timeline, making it difficult to meet the project’s schedule.

The government also proposes using direct appointment or special contractor selection procedures for technology assessment, environmental and safety reporting, and nuclear regulatory inspections during the initial stages of the Ninh Thuan nuclear power plant project.

The Ministry of Science and Technology lacks the resources to conduct safety assessments, nuclear security checks, and regulatory inspections for this project.

Other Vietnamese agencies also lack experience in handling the country’s first nuclear power project, making it necessary to hire international consultants.

Direct contractor appointment for the turnkey package is reasonable

Le Quang Huy, chairman of the Committee on Science, Technology, and Environment, expressed agreement that direct contractor appointment for the turnkey package is a reasonable approach to accelerating the implementation of the Ninh Thuan nuclear power project.

However, the reviewing body cautioned that this method might limit competition, raise concerns about conflicts of interest, and reduce transparency in the implementation process.

To mitigate these risks, the standing committee suggests adding strict oversight measures, such as publicly disclosing the contractor list and selection criteria to enhance transparency, establishing an independent supervisory board to oversee the direct appointment process, setting up periodic reporting mechanisms on contract progress, and enforcing strict penalties for any irregularities in contractor selection and execution.

Additionally, the government should establish clear regulations on the conditions for direct appointment, contractor selection criteria, and stringent oversight mechanisms in contract terms, particularly regarding technology commitments, maintenance, and technology transfer after project completion.

Project investor may use loans and bonds for counterpart funding

Regarding financial planning and capital arrangements, the government proposes allowing the project investor to borrow or re-borrow under preferential conditions. In case of unsuccessful loan negotiations or limited funding from international agreements, the government may utilize increased revenues, central budget savings, and other lawful funding sources for the project.

Given the substantial counterpart funding required, the government recommends allowing the project investor to use loans and bonds as counterpart funding.

Under the proposed financial mechanism, the Ninh Thuan nuclear power project investor would retain all post-tax profits to supplement counterpart funds during the project’s implementation.

Additionally, they would be exempt from approval procedures for land-use conversion involving forest areas required for project-related components.

Thu Hang