Guidance on Standard Procedures for Hydropower Project Work

Article

Lao People's Democratic Republic
Peace, Independence, Democracy, Unity, Prosperity

Ministry of Energy and Mines

Guideline
On Standard Procedures for Implementation of Hydropower Projects

- Pursuant to the Electricity Law No. 09/NA, dated 9 May 2017;
- Pursuant to the Law on Making Legislation No. 19/NA, dated 12 July 2012;
- Pursuant to the Decree on Organization and Operation of the Ministry of Energy and Mines No. 296/PM, dated 4 September 2017;
- Pursuant to the Proposal Letter of the Department of Legislation No. 509/MOJ.LD, dated 5 October 2020.

The Minister of Energy and Mines issues the following Guideline:

Part I
General Provisions
1. Objective

This guideline defines the steps, main tasks, and timelines, along with working methods and coordination mechanisms for the development of hydropower projects authorized by the central level, as stipulated in the regulations and laws of the relevant sectors, in order to centralize, facilitate implementation, ensure clarity and uniformity among various units within the Ministry of Energy and Mines, sectors, individuals, legal entities, and related organizations, so that the implementation of such project development is efficient, effective, swift, and in compliance with relevant regulations and laws.

2. Scope of Application

This guideline applies specifically to the Ministry of Energy and Mines, sectors, individuals, legal entities
and organizations related to the implementation of steps and tasks in hydropower project development

Central-level hydropower is authorized by the central government.
Chapter II
Standard steps for implementing hydropower project tasks

1. Standard steps
Number of standard steps
Standard steps for implementing hydropower project tasks consist of 26 steps

Step of identifying developers and projects;
Step of negotiation and approval of signing a memorandum of understanding;

Step of approving the pre-feasibility study report;
Step of approving the preliminary social and environmental impact assessment report;

- Step of approving the scoping study report and the scope of work for the assessment
Detailed social and natural environmental impacts;

- Procedure for renewal of Memorandum of Understanding;
- Procedure for cancellation of Memorandum of Understanding;
- Procedure for negotiation and approval of project development contract;
- Procedure for approval of technical and financial feasibility study report;
- Procedure for approval of social and environmental impact assessment report and social and environmental management and monitoring plan;
- Procedure for approval and signing of Memorandum of Understanding on electricity tariff for domestic projects;
- Procedure for approval and signing of Memorandum of Understanding on electricity tariff for export projects;
- Procedure for approval of preliminary design;
- Procedure for approval of annex on social and environmental obligations;
- Procedure for renewal of project development contract;
- Procedure for approval and signing of company establishment contract;
- Procedure for negotiation and approval of concession contract;
- Procedure for approval and signing of power purchase agreement for domestic project;
- Procedure for approval and signing of power purchase agreement for export project;
- Procedure for review of import goods list;
- Procedure for annual foreign labor quota approval;
- Procedure for water impoundment approval;
- Procedure for project construction monitoring;
- Procedure for project operation and maintenance monitoring;
- Procedure for amendment of concession contract;
- Procedure for transfer of project assets to the government.

2. Format of tasks in standard procedures
The standard procedures will include detailed tasks as specified in the table
The standard consists of the following components in descending order:

- Name of the task: refers to the name of the task in the standard procedure to be performed;
- Responsible person: refers to the individual, legal entity, or organization primarily responsible for organizing the implementation of the task;
- Required documents and data: refers to various documents and data that serve as references and are needed for performing the task;
- Person responsible for providing required documents and data: refers to the individual, legal entity, or organization that creates, proposes, or sends the required documents and data;
- Procedure for implementing the task: refers to the instructions for performing the relevant task;
- Output: refers to the various results obtained from implementing the relevant task;
Timeframe refers to the prescribed period for organizing and implementing related tasks, some of which cannot be determined;

Remarks refer to issues, topics, or points that need attention or consideration when organizing and implementing tasks.

Detailed content of each step
1. Steps for seeking developers and projects
1.1. Overview

Meaning of the step
This standard step defines the processes and tasks for seeking developers and hydropower projects that are not subject to bidding and are approved by the central level. Hydropower projects not subject to bidding are those proposed by interested legal entities themselves and then submitted to the government for consideration and approval to develop the project as a specific electricity generation business. As for seeking
Project development through bidding is stipulated in separate regulations, as these projects are part of the National Power Development Plan established by the government, which then opens for solicitation to find project developers.

Development of hydropower projects without bidding begins with research and preliminary analysis by interested legal entities, who then submit an application with supporting documents for project development to the Ministry of Planning and Investment. According to the Electricity Law, such projects shall be granted to legal entities through the non-bidding project process, but must comply with the conditions set forth in the regulations on non-bidding project research.
After completing the initial screening, the Ministry of Planning and Investment sends the application documents
All submitted to the Ministry of Energy and Mines for detailed review. The Ministry of Energy and Mines is the central unit for researching non-tender projects, which goes through three phases as follows:
- Phase 1: Conduct research before signing the Memorandum of Understanding;
- Phase 2: After fulfilling obligations under the Memorandum of Understanding, conduct research before signing the Project Development Agreement;
- Phase 3: After fulfilling obligations under the Project Development Agreement, conduct research before signing the Concession Agreement.
Interested legal entities can obtain the "Application Form for Investment in the Electric Power Sector in the Lao PDR" from the website of the Ministry of Planning and Investment or from the Ministry of Planning and Investment.
Vientiane Capital. After completing the application form, such legal entity must submit the said documents to the Ministry of Planning and Investment. The Department of Investment Promotion or the One-Stop Investment Service Office of the Ministry of Planning and Investment will conduct a preliminary review of the completeness and accuracy of the application documents, then forward them to the Ministry of Energy and Mines. After receiving the application documents from the Ministry of Planning and Investment, the Office of the Ministry of Energy and Mines forwards the said application documents to the Department of Energy Business, which will forward them to relevant departments including the provincial energy and mines departments for technical comments. The Department of Energy Business compiles comments from relevant departments. After completing the consultation meeting with relevant departments, the Department of Energy Business
Submit the application together with comments to the Office of the Ministry of Energy and Mines for consideration and forwarding to the Ministry of Planning and Investment. After the Central Investment Promotion and Management Committee has completed its review, the One-Stop Investment Service Office issues an approval or rejection letter to formally notify the relevant legal entity.
Initiation Phase
The legal entity submits 6 copies of the completed investment application form for the electric power energy sector in the Lao PDR, in Lao or English, to the Ministry of Planning and Investment.
The supporting documents that the legal entity must attach for non-bidding projects are specified in clauses 1.8 to 1.5 of this standard procedure.
Provisions on procedures
Key legislation governing the procedure is as follows:
- Electricity Law;
- Investment Promotion Law;
- Regulation on Non-Tender Project Studies;
- Sustainable Hydropower Development Policy of the Lao PDR;
- Guidelines on Implementation of the Sustainable Hydropower Development Policy of the Lao PDR;
- Assessment Form for Implementation of the Sustainable Hydropower Development Policy of the Lao PDR.

1.2. The five tasks in the procedure
Task 1: Receipt and review of applications and supporting documents

The provisions in this task are compiled by the Ministry of Energy and Mines, based on laws and regulations and consultations with relevant sectors, to summarize into five key tasks in the procedure.
This standard. If actual implementation differs, follow the guidance, regulations of the relevant sector, and the Law on Making Legislation.

Task 1: Receiving and reviewing applications and supporting documents

Responsible unit: One-Stop Investment Service Office.
Documents and application form: Application form for investment in the electric power sector in the Lao PDR, with all required information completed, and supporting documents (6 sets, may be in Lao or English). The application form for investment in the electric power sector in the Lao PDR can be found online on the website of the Ministry of Planning and Investment [website] or can be obtained directly from the One-Stop Investment Service Office of that ministry.

Supporting documents are as follows:
- Background and experience of the legal entity, including at least 20 documents certifying achievements and experience in the region and projects being implemented in the Lao PDR and regional countries;

- Financial statements for the last 5 fiscal years;

- Business registration certificate from the country where the legal entity is established or operating;
- Power of attorney from the person submitting the application if the person submitting is not the highest authority of the legal entity;

- Map showing the location/area of the project;

- Technical information of the project;

- Preliminary field data of the project (if any);

- Supporting documents according to the conditions of the project that are not subject to bidding but depend on the size of the project;

- Other information appropriate for the application.
Responsible for providing documents and information

Legal entity submits application with attachments.

Required to use
Implementation method One-stop investment service office checks documents to ensure completeness
Five tasks According to conditions of projects not passing bidding. In addition to general project information, the following must be supplemented:

Documents to meet conditions of projects not passing evaluation

- Report on project benefits (according to details specified in Clause 1.3 of this standard procedure) showing tangible benefits to be derived from the project. Intangible benefits are not yet required to be specified at this stage of the project;

- Document showing the form or new technology of the project (if
have) as detailed in Clause 1.3 of this standard procedure;
- Documents demonstrating that the project aligns with the government's strategy (if any), as detailed in Clause 13 of this standard procedure;
Technical and financial status certification documents
- Documents guaranteeing that the applying legal entity is not blacklisted by any other government or financial institution;
- Shareholding proportion in the legal entity, certified by an authorized agency in accordance with the law, in case of joint development;
- Experience in implementing similar projects in the last 5 years from the date of submission of the non-bidding project application, as detailed in Clause 15 of this standard procedure;
- Audited financial statements of the enterprise for the last 5 fiscal years, as per
Details specified in Clause 1.4 of this standard procedure;

(b)
- Financial certification documents of the legal entity from the bank;
- Documents certifying that the legal entity is not under the control of creditors.

Sub-task 1.1 | - The One-Stop Investment Service Office checks all documents submitted by the legal entity for the review of the application to ensure completeness of required documents and that the documents constitute an application;
Compose |! - The One-Stop Investment Service Office advises the legal entity if information or documents are insufficient and need to be supplemented;

- The One-Stop Investment Service Office forwards all such documents to the Ministry of Energy and Mines Office.

Output - Notify the legal entity submitting the application in case of non-compliance.
Correct/Incompleteness in the application or supporting documents, or if additional documents are required;

- The One-Stop Investment Service Office shall examine the completeness of the documents received. If it finds that such documents are incomplete in any form, the One-Stop Investment Service Office must notify the legal entity to submit the required documents additionally.

The period for notification is within five (5) working days from the date of receipt of the application from the legal entity submitting the application.

Sub-task 1.2 | - When the One-Stop Investment Service Office considers that the application documents received from the legal entity are complete in accordance with the conditions, along with the documents, the One-Stop Investment Service Office must issue an internal liaison letter to forward such documents to the Project Research Department, Department
Then submit to the Investment Promotion Research Department to further evaluate the said application documents;
Project, Promotion Department / - Copy of application documents together with attachments must be attached to the domestic investment license.

Result, the domestic investment license is sent to the Project Research Department, Investment Promotion Department together with a copy of the application documents and attachments received from the legal entity.

The time limit is three (3) working days from the date of receipt of the application documents from the target legal entity, together with the attachments that the One-Stop Investment Service Office deems complete.

Note: The prescribed documents used in communication for this task are:
- Letter from the One-Stop Investment Service Office to the legal entity to request
Base document directory.

Task 2: Review of application documents and attachments and submission to the Ministry
Ministry of Energy and Mines
The provisions of this task are compiled by the Ministry of Energy and Mines based on laws and regulations
and consultations with relevant sectors, to be integrated as key tasks into the steps of this standard.
If actual implementation differs, follow the guidance, regulations of the relevant sector
and the Law on Making Legislation.

Ministry of Energy and Mines

Task 2: Review of application documents and attachments and submission to the Ministry

Responsible entity
Department of Investment Promotion (Project Research Division).

Required documents and information

The attachments are as follows:
- Background and experience of the legal entity, including at least 20 documents certifying achievements and experience in the region, demonstrating successes or ongoing projects in the Lao PDR and regional countries;

- Financial status documents for the latest 5 fiscal years;

- Enterprise registration certificate from the country where the legal entity was established or is conducting business;

- Power of attorney from the person submitting the application if that person is not the highest position of the legal entity;

- Map showing the location/area of the project;

- Technical information of the project;

- Preliminary field data of the project (if any);

- Supporting documents according to project conditions (non-bidding projects), but depending on the project size;

- Other information appropriate for the application submission;
Internal coordination note from the One-Stop Investment Service Office to the Project Research Department.

Person responsible for providing documents and information

One-Stop Investment Service Office.

The Department of Investment Promotion (Project Research Department) reviews the background of investors, shareholding structure and finance, along with certification documents and experience in hydropower. The main indicators to be reviewed are:

- Project development proposal signed and certified by the Chairman or General Director of the legal entity;
- Background and certification documents of the legal entity's achievements, business registration certificate of the legal entity;
- Joint proposal (in case multiple legal entities jointly propose development);
- Power of attorney (if any);
- Map and location of the project;
- Technical information of the project:

Installed capacity of the project,
Height of waterfall,
Type and nature of project: dam, reservoir, etc.,
Environmental data (historical reports if any);

- Preliminary study data of the project (if any);
- Target market for electricity production (export or domestic supply);
- Review of the legal entity's financial status over the last 3 years;
- Certification documents from financial institutions or banks of the legal entity;
- Other information providing details about the project (if any).

The Project Research Division issues a letter to submit the said application documents to the Ministry of Energy and Mines for detailed evaluation of the application along with comments. Copies of the application documents and attachments must be attached to the said letter.

Result: Letter sent to the Office of the Ministry of Energy and Mines with copies.
Completed application form and supporting documents received from the legal entity.

Office timeline: within two (2) working days from the date of receipt of the application and related documents from the target legal entity, as deemed complete by the One-Stop Investment Service Office.

Note: The documents designated for communication for this task are:
- A letter from the Department of Investment Promotion to the Office of the Ministry of Energy and Mines to forward the application and supporting documents.

Task 3: Sending the application of the legal entity and requesting comments from relevant units

Task 5: Sending the application of the legal entity and requesting comments from relevant units

Responsible persons
- Office of the Ministry of Energy and Mines;
- Department of Energy Business (Contract Division).
Documents and information required
Letter from the Department of Investment Promotion to submit the application and supporting documents to the Office of the Ministry of Energy and Mines.

Responsible for providing documents and information
Department of Investment Promotion, Ministry of Planning and Investment.

Required information
Method of implementation for sub-task 3.1: Send the investment application to relevant units for comments

After the Office of the Ministry of Energy and Mines receives the application and supporting documents, it must send them to the Department of Energy Business (Contract Division) within two (2) working days, with a copy to the One-Stop Service Research and Synthesis Division of the Ministry Office for monitoring. The Department of Energy Business (Contract Division) forwards them to the Department of Energy Policy and Planning.
(Department of Power Generation Planning and Department of Environmental and Social Engineering), Department of Planning and Cooperation (Investment Division), Department of Legislation (Energy Legislation Division) and Provincial Energy and Mines Departments for comments.

Sub-team 3.2: Department of Energy Business (Contract Division) reviews and evaluates applications

The Contract Division reviews the completed investment application documents, then checks compliance with the conditions of the Electricity Law, which stipulates that investment projects not subject to competitive bidding must provide high benefits to the government and must meet the following conditions:

- Must be a project with advanced technology or new technology in the Lao PDR;
- Must be a project of national strategic nature;
The legal entity proposing the project must have technical and financial conditions commensurate with the project.

The government may allow its state enterprises to develop power projects without going through bidding, but must follow the procedures for power project development and regulations.

The Department of Energy Business (Contract Division) analyzes and assesses whether the said application meets the conditions set forth in Article 52 of the Electricity Law. The Contract Division reviews the completeness of the investment application form in the electric power energy sector in the Lao PDR, then examines the following details:

- Project development proposal;
- Experience of the legal entity in the Lao PDR and the region;
- Target market for electricity production (domestic supply or export);
- Background and success certification documents of the legal entity,
Registration of legal entity enterprise;

- Overlap with existing projects or projects proposed by others;
- Potential impacts on upstream and downstream areas of the dam, such as rising water levels, etc.;
- Benefits overlapping with other types of projects in the same area;
- Key benefits to be provided to the government;
- Financial content in compliance with the law and benefits to be provided to the government;
- Joint development agreement and details of the legal entity participating in development (in case multiple legal entities jointly develop);
- Major sources of funding for development (if any);
- Review of the legal entity's financial data for the last 5 years;
- Certification documents from financial institutions or banks of the legal entity;
- Other information about the project (if any).
Timeframe: Five - The Office of the Ministry of Energy and Mines sends the application documents to the Department of Energy Business (Contract Division) within two (2) working days;
- The Department of Energy Business (Contract Division) sends to relevant units within three (3) working days from the date of receipt of the application documents from the Ministry Office.
Note: The documents prescribed for use in communication for this task are:

- A letter from the Department of Energy Business to relevant units requesting comments on the investment application.

Task 4: Providing comments on the investment application of a legal entity

Task 4: Providing comments on the investment application of a legal entity

Responsible unit

- Department of Policy and Energy Planning (Power Generation Planning Division, Environmental and Social Engineering Division);
- Department of Planning and Cooperation (Investment Division);
- Department of Legislation (Energy Legislation Division);
- Provincial Department of Energy and Mines.

Documents and Information Required

Letter from the Department of Energy Business to submit the investment application and accompanying documents to relevant offices.

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Responsible Person for Providing Documents and Information

Department of Energy Business (Contract Division).

Required Use Implementation Method Sub-task 4.1: Review by the Department of Policy and Energy Planning
Task (Power/Resource Planning Division)

The Power Planning Division reviews the technical content of the project, including the project location, and provides comments. The key content to review is the project location - whether it is within or outside the river, and
Possible impacts on existing or proposed projects (if any).

In addition, there are technical indicators that need further review as follows:

- Installed capacity of the project;
- Annual electricity generation;
- Form and type of project (overflow dam, reservoir, etc.);
- Project value;
- Environmental aspects (may have previous reports);
- Consistency with the power development plan and other documents;
- Power transmission system;
- Standards used in the study and design to advance the project.

#Sub-task 4.2: Review by the Provincial Department of Energy and Mines

The Provincial Department of Energy and Mines reviews the investment application and provides comments on the application, particularly regarding:

- Overall social aspects;
- Resettlement and rehabilitation;
- Environmental aspects;
- Outstanding issues arising in the project area;
- Potential overlap with other projects.

Sub-task 4.3: Review by the Department of Planning and Cooperation (Investment Division)

The Investment Division reviews the application and provides comments on the investment, particularly on financial aspects (domestic or foreign), as well as other observations on the application.

Sub-task 4.4: Review by the Department of Policy and Energy Planning (Environmental and Social Engineering Division)

The Environmental and Social Engineering Division examines details regarding the project location, installed capacity, annual electricity generation, to ensure accuracy and to identify other significant issues related to impacts.
Environmental impacts from other projects within a radius of 150 km, whether located downstream or upstream of the dam of this proposed development project.

The Department of Environmental and Social Engineering compiled observations based on data from projects in the vicinity and the impacts that would occur to other projects and surrounding areas if this proposed development project begins generating electricity. The Department of Environmental and Social Engineering reviewed details regarding the location and highlighted the environmental impacts of the project. The preliminary observations and analysis of the Department of Environmental and Social Engineering are based on existing baseline data to highlight whether the new project will overlap with existing projects upstream or downstream of the new project's dam.




Annex 4.5: Review by the Department of Ecology (Department of Ecology and Energy)
The Energy Legal Department provides legal opinions and issues deemed unclear regarding the project.

The results of the opinions must be submitted to the Department of Energy Business (Contract Division) within thirteen (13) working days from the date of receipt of documents from the Department of Energy Business. If the relevant unit does not communicate within that period, it shall be deemed that the unit agrees or has no issues regarding the selection of the developer and the proposed project.

The period for opinions must be submitted to the Department of Energy Business within thirteen (13) working days from the date of receipt of documents from the Department of Energy Business.

No issues.

Task 1: Compilation of opinions from relevant units

Responsible person
Department of Energy Business (Contract Division).

Documents and Information Required

Comments received from relevant units.

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Responsible for providing
Documents and Information Required

Department of Energy Policy and Planning (Power Generation Planning Division
and Environmental and Social Engineering Division);

Provincial Energy and Mines Department;

Department of Legislation (Energy Legislation Division);

Department of Planning and Cooperation (Investment Division).

Implementation Method

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Department of Energy Business (Contract Division) compiles comments received from relevant units and drafts a summary report of comments.

Output: Summary of comments on the investment application, as part of the study process.

Timeframe: Five (5) working days from the date of receiving comments from relevant units.

Remarks: None.
Task 6: Preparation and submission of the developer selection results report to the Ministry Office

Responsible unit: Department of Energy Business (Contract Division).

Documents and information required: Summary of comments from relevant units as specified in Task 5 of this standard procedure.

Implementation method: The Department of Energy Business (Contract Division) drafts the developer selection results report based on its own analysis results and the summary of comments specified in Task 5 of this standard procedure.
The Contract Department implements the regulation on project study without bidding, which is issued for use in selecting individuals to develop hydropower projects, thermal power projects, and transmission concession projects that are independent power generation businesses and transmission concession businesses, which will not follow the bidding project procedures stipulated in the Electricity Law;

- The entire evaluation is organized and implemented by the Ministry of Energy and Mines according to the conditions stipulated for Phase 1 of the regulation on project study without bidding;

- The Contract Department checks whether the legal entity has the following conditions: new or advanced technology
A legal entity proposing the development of a project that is a new model or technology must submit a report with sufficient information about such new model or technology. In order to meet the evaluation objectives, such model or technology considered as unique or new must comply with the provisions of the regulations on project research without bidding; The contract department reviews and evaluates the uniqueness based on the nature of the proposal and the various characteristics proposed. A proposal may not fully meet the conditions of uniqueness but may be assessed as having uniqueness when considered comprehensively. Such matters will be analyzed based on the information provided by the legal entity according to the list of information specified in Clause 1.3 of this guideline;
Having a strategic nature of the government:
The assessment will be based on information provided by the legal entity according to the list of information specified in Clause 1.3 of this guideline. The Contract Department checks the consistency of technical and financial certification with the conditions stipulated in the regulations on project research without going through bidding. The assessment will be based on information provided by the legal entity according to the list of information specified in Clauses 1.3 to 1.5 of this guideline;
- The Contract Department prepares a report on the results of the selection of the developer, which must contain the reasons for approving or rejecting the proposal for the project without bidding as mentioned, based on the assessment conducted thoroughly. The report on the results of the selection of the developer, together with documents
Documents received from legal entities must be sent to the Office of the Ministry of Energy and Mines for further transmission to the Central Committee for Investment Promotion and Management for consideration.

The report on the results of the developer selection shall be sent to the Office of the Ministry of Energy and Mines.

The time limit is five (5) working days from the date of receipt of the documents as specified in Task 5.
Note: None.

Task 7: Submission of the results of the developer selection to the Central Committee for Investment Promotion and Management
Responsible unit: Office of the Ministry of Energy and Mines (One-Stop Service Integrated Research Division).
Documents and information required
Provider | Department of Energy Business (Contract Division).
Documents and information required
Implementation method Office of the Ministry of Energy and Mines (One-Stop Comprehensive Research Division)
Task Report on the results of developer selection to the leadership of the Ministry of Energy and Mines for guidance, then issue a letter to the One-Stop Investment Service Office to submit the following documents:
- Investment application documents from the investor;
- Supporting documents from the investor;
- Report on the results of developer selection.
Output A reply letter to the One-Stop Investment Service Office regarding the results of developer selection, along with the documents specified above.
Timeframe Four (4) working days.
Task
Note: The documents prescribed for communication in this task are:
- A letter to the One-Stop Investment Service Office to notify the result of developer selection and submit the investment application documents, the developer selection report, and supporting documents.

Task 8: Consideration by the Central Investment Promotion and Management Committee regarding the investment application

The provisions in this task are prepared by the Ministry of Energy and Mines, based on laws and regulations and consultations with relevant sectors, to be integrated as key tasks in this standard procedure. If actual implementation differs, follow the guidance, regulations of the relevant sector, and the Law on Making Legislation.
Task 8: Consideration of Investment Applications by the Central Investment Promotion and Management Committee

Responsible entity: Central Investment Promotion and Management Committee.
Documents and information received from the Department of Energy Business include:
- Investment application documents;
- Supporting documents from investors;
- Report on the results of the developer selection study.

Providing entity: Office of the Ministry of Energy and Mines.
Required documents and information

Implementation method: The Central Investment Promotion and Management Committee sets a date for a meeting to discuss the investment application and invites members of the Central Investment Promotion and Management Committee to participate in the discussion.
Approve investment application. The Central Investment Promotion and Management Committee
considers the investment application and approves or rejects
in principle or instructs the legal entity to provide additional information, based on the results of relevant discussions
such as:
- Consent from the Ministry of Energy and Mines;
- Issues arising in the project's vicinity;
- Issues and concerns regarding resettlement and rehabilitation;
- Impact of the project on existing projects upstream or downstream of the project's dam;
- Background and proven track record of the legal entity in the Lao PDR or other countries;
- Discussion on financial capacity;
- Legal disputes of the legal entity that are ongoing or have been resolved in its projects in the Lao PDR or abroad.
The views of each participant in the meeting regarding the approval or rejection of the application shall be considered, and the participants must reach consensus on approval or instructing the legal entity to provide additional information. In case consensus cannot be reached, the Central Investment Promotion and Management Committee must decide whether to approve or reject the investment application based on the majority opinion of the participants.

Outcomes

The consideration of the Central Investment Promotion and Management Committee may result in the following:
- Request for additional information from the legal entity: The One-Stop Investment Service Office notifies the relevant legal entity of the information required to be supplemented, in accordance with the steps specified in Article 9 of this standard procedure;
- Approval of investment application: In this case, the investment application approval letter will be sent to the One-Stop Investment Service Office as specified in Step 10 of this standard procedure;
- Rejection of investment application: The One-Stop Investment Service Office will be notified of the rejection of the investment application along with the relevant reasons. The One-Stop Investment Service Office drafts the rejection letter as specified in Step 10 of this standard procedure.

Documents regarding each result, as well as various communication documents concerning approval, rejection, or requests for additional information, will be distributed to relevant units.

Timeframe
Twenty-two (22) working days from the date of receipt of the research report on the legal entity from the Ministry of Energy and Mines.

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Note: The Chairman of the Central Committee for Investment Promotion and Management is the Deputy Prime Minister, and the Committee consists of representatives from relevant ministries, including: Ministry of Planning and Investment, Ministry of Energy and Mines, Ministry of Industry and Commerce, Ministry of Finance, Ministry of Natural Resources and Environment, Ministry of Agriculture and Forestry, Ministry of Labour and Social Welfare, Ministry of Public Works and Transport, Ministry of Information, Culture and Tourism, and Ministry of Public Security. In case the Central Committee for Investment Promotion and Management requires clarification or additional information, it shall provide guidance within five (5) days from the date of receipt of the report on the results of the developer selection and other documents.
Task 9: Notify legal entities about information required to be supplemented

The provisions in this task are prepared by the Ministry of Energy and Mines, based on research in accordance with laws and regulations, and consultations with relevant sectors, to compile into key tasks in this standard procedure. If actual implementation differs, follow the guidance, regulations of the relevant sector, and the Law on Making Legislation.

Task 9: Notify legal entities about information required to be supplemented

Responsible unit: One-Stop Investment Service Office.

Documents and information from the guidance of the Central Investment Promotion and Management Committee regarding information required to be supplemented from legal entities for use in considering approval of proposed projects.
Responsible provider | Central Investment Promotion and Management Committee.
Documents and information
Required for use
Implementation method of the one-stop investment service office: issue a letter to the investor regarding additional information and documents required.
Result: letter to the legal entity proposing project development.
Timeframe: five (5) working days from the date of receiving guidance from the Central Investment Promotion and Management Committee.
Note: The communication documents used for this task are:
- Letter notifying the legal entity of additional information required.

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Task 70: Issuance of approval or rejection letter for investment application to the legal entity proposing project development
The provisions in this task are compiled by the Ministry of Energy and Mines, based on research of laws and regulations, and consultation with relevant sectors. This standard. If actual implementation differs, follow the guidance and regulations. And to integrate into important work steps, relevant sectors and the Law on Making Legislation. Article 70: Issuance of approval letter or rejection of investment application to the dimension, the project development proposer, responsible unit: One-Stop Investment Service Office. Required documents and information - Minutes of decision of the Central Investment Promotion and Management Committee on approval or rejection of investment application; - Directive letter to the One-Stop Investment Service Office regarding
Such decision.

Responsible for providing | Central Investment Promotion and Management Committee.

Documents and information
required

Implementation method - based on the guidance or decision memorandum of the Committee
Central Investment Promotion and Management Committee regarding approval or
rejection of investment applications, the One-Stop Investment Service Office drafts
a response letter regarding such decision.

- The One-Stop Investment Service Office issues a letter to the legal entity based on
the guidance of the Central Investment Promotion and Management Committee.

Result: Approval or rejection letter for investment application sent to relevant legal entity.

Timeframe: three (8) working days from the date of receiving guidance from the Committee.
Central-level investment promotion and management.

Note: Copy of the investment application approval letter sent to the relevant legal entity.
Documents designated for communication for this task are:
- Letter notifying the legal entity of the approval or rejection of the investment application

Information to be disclosed regardless of approval or rejection: project proposals that are not subject to bidding. The following information can be disclosed to the public through the website of the Ministry of Energy and Mines:
- Name of the legal entity proposing the non-bid project development;
- Project description;
- Project benefit report;
- Summary of new model or technology (if applicable);
- Summary of the government's strategic nature (if applicable).
Information
;

- Results of Phase 1 study and reasons for approval or rejection.

Legal entities must be notified and consulted if information is to be disclosed.

1.8. Documents required from legal entities for use in Phase 1 study of unsolicited hydropower project proposals
Project benefit potential report

The content of the benefit potential report to be submitted for Phase 1 study in accordance with the regulations on unsolicited project studies shall include:
- Description of all financial benefits to be derived from the project and explanation of how such benefits exceed those prescribed by law;
- Description of all benefits of the project to the electricity system.
Report supporting the new model and technology

- The content of the report supporting the new model and technology includes:

- Description of the proposed model or technology;
- Description of how the proposed model or technology is unique compared to other options;
- Description of the legal entity in what capacity regarding ownership or use of assets, contractual rights, technology, intellectual property;
- List of all specific characteristics of the proposed model or technology;
- Description of how those specific characteristics will be implemented to achieve the expected results;
- Whether those specific characteristics provide any other benefits, such as services, non-government risk, or other advantages;
Has the timeframe for achieving the objectives been updated and how;

Can the project proposal achieve the difficult objectives within the standard timeframe applicable to projects through bidding;

Are there any other important factors that demonstrate that specific characteristic;

How will the new model or technology reduce construction costs, accelerate construction, improve project operation, extend service life, reduce operation and maintenance costs, or reduce negative impacts on the environment and/or society;

Does the new model or technology require any guarantee, special policy, counterpart funds, or support from the government;

Describe the events where such new model or technology was used in the past (certificate
Work or use must be submitted strictly.

Report on the strategic nature of the government in the project

The content of the report showing the strategic nature of the government in the project includes:

#4. Technical capability information of the legal entity

How will the project promote socio-economic development in line with existing government policies;

How will the project help protect the environment and society and ensure the sustainability of natural resource management;

How will the project help ensure energy security;

How will the project help ensure national defense;

How will the project help develop international and regional cooperation;

Other strategic importance of the project.
No. | Similar Project Name | Shareholding Ratio (with
past implementation and similar content and shareholding period
summary)

1.

2.

5.

4.

5.
Recommendation:



A legal entity must provide information on similar projects specified in this clause that it has previously implemented. The listed projects must comply with the conditions set forth in the Regulation on Research of Non-Tender Projects;


In the case of submitting a proposal for a non-tender project within three (3) months of the end of the fiscal year


Lastly, comply with the Regulation on Research of Non-Tender Projects;

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- For completed construction projects, the date when the project started generating electricity must be specified. In case the project is still
Construction, must specify the expected date of completion of construction or start of electricity generation, as the case may be;

- If the legal entity is the owner of a similar project, must show the legal entity's shareholding proportion in the project;

- Certificate from the auditor or client of the legal entity, for each project must be submitted according to the format below:

Format of certificate from auditor
List of contents of similar project
Name, nature and installed capacity of the project
Project developer
Project location
Project value

Project completion date
In case the project is under construction, specify the expected date of start of electricity generation

Shareholding proportion
(including the period of shareholding)

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Based on the books of account and other information that have been verified for accuracy, this document is hereby issued
(Name of legal entity company) is/was a shareholder in .................... (project company name) and holds/held ......... million US dollars in shares. (In words: ................................ million US dollars) (representing ........ % of the total share capital of the project company).

From ............... to ................. . The said project has/is expected to start generating electricity on ................ (project commercial operation date).

Submit only the certificate in the prescribed form. Attach an explanation of the certificate if necessary. Auditor means the legal entity that audits and certifies the annual accounts of the applicant legal entity.
Note: If any detail is missing in the above certificate, it will be considered incomplete and may result in the proposal being rejected without evaluation.

75. Financial capacity of the legal entity
Total asset value (million USD)
Year 1 Year 2 Year 3 Year 4 Year 5

Annual revenue (million USD)
Year 1 Year 2 Year 3 Year 4 Year 5

Name and address of the company's bank

2. Procedure for negotiation and approval of signing a memorandum of understanding
2.1. Overview
Meaning of the procedure

This standard procedure defines the processes and tasks related to the negotiation and approval of signing a memorandum of understanding for the development of a hydropower project that has not passed evaluation.
Approved by the central level. The signing of this Memorandum of Understanding is between the Government (represented by the Ministry of Energy and Mines and the Ministry of Planning and Investment) and the developer, which will impose obligations on the developer to carry out project development activities, such as the preliminary feasibility study of the project, with a duration of 24 months (renewable). The developer must establish its representative office in the Lao PDR before commencing any activity specified in the Memorandum of Understanding. During the implementation of obligations under the Memorandum of Understanding, the developer must carry out the following activities:
- Conduct a preliminary feasibility study in accordance with the terms of reference for the preliminary feasibility study
This document is attached as an annex to the Memorandum of Understanding and in accordance with the Electricity Law.
The developer must submit a pre-feasibility study report within the timeframe specified in the Memorandum of Understanding for the Ministry of Energy and Mines to study and approve;
- Along with the pre-feasibility study report, the developer must submit a project benefit report, which describes the indicators specified in the regulations on the study of non-bid projects, to the Ministry of Energy and Mines, demonstrating the financial benefits and benefits to the electricity system that the project will bring. The report must use data obtained from the project's pre-feasibility study and should include qualitative and quantitative content.
of the project benefits.

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Negotiation The Memorandum of Understanding will commence after the approval of the developer selection report, during the developer selection phase and for projects not subject to bidding, the negotiation will specify the project development responsibilities for the legal entity selected as the project developer. The Department of Energy Business is responsible for this task.

Initial Funding Step

This process will begin after the legal entity submits a draft Memorandum of Understanding based on the standard draft Memorandum of Understanding to the Department of Energy Business.

Key Legislation Governing the Procedure

Key legislation governing the procedure is as follows:

- Electricity Law;
- Investment Promotion Law;
Regulations on the study of projects not subject to bidding.

2.2. Tasks in the process
Task 0: Review of the draft memorandum of understanding
Task 1: Review of the draft memorandum of understanding

Responsible entity: Department of Energy Business (Contract Division).
Documents and information: Draft memorandum of understanding prepared by the legal entity based on the standard draft.

Provider: The legal entity proposing the project development.

Required documents and information:
Implementation method:
- The Department of Energy Business (Contract Division) reviews the content of the draft memorandum of understanding submitted by the legal entity and provides comments for improvement before submitting the draft to relevant units;
- The Contract Division examines cases of deviation from the standard draft and then submits them for discussion in the negotiation meeting.
Result: Comments for improving the draft Memorandum of Understanding to be sent to the legal entity.
Timeframe: Within fourteen (14) days from the date of receipt of the draft Memorandum of Understanding.

Work

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Description

The Department of Energy Business (Contract Division) is responsible for providing the latest standard draft of the Memorandum of Understanding upon request from the legal entity. The Department of Energy Business may update such standard draft from time to time and must ensure that the latest standard draft is used in the amendments.

Documents used for communication for this work include:
- Letter proposing amendments to the draft Memorandum of Understanding.

Task B: Requesting comments and inviting to negotiation meeting on the Memorandum of Understanding

Responsible person
Department of Energy Business (Contract Division).

Documents and Information

Draft Memorandum of Understanding with comments from the legal entity, obtained from five
Information needed, Work 1.

Responsible person proposes |, the legal entity proposing the project development.

Documents and Information
Needed for use

Implementation method: The Department of Energy Business (Contract Division) checks whether the legal entity has clarified
regarding the issues raised during the preliminary review, before sending the draft
to relevant units for comments. The Contract Division prepares to organize a meeting
to negotiate the Memorandum of Understanding and issues invitation letters:
- Ministry of Energy and Mines:
0 Department of Policy and Energy Planning (Power Generation Planning Division);
0 Department of Planning and Cooperation (Investment Division);
0 Department of Legislation (Energy Legislation Division);
- Ministry of Natural Resources and Environment:
0 Department of Natural Resources and Environment Policy (Division for Review of Environmental Assessment Reports for Energy and Infrastructure Sectors);
- Ministry of Planning and Investment:
0 Department of Investment Promotion (Project Research Division);
- Provincial Department of Energy and Mines; and
- Other relevant units.

Output: Letter for submission of draft Memorandum of Understanding and invitation to negotiation meeting on the Memorandum of Understanding.

Timeframe: Within seven (7) working days from the date of receipt of the draft Memorandum of Understanding from the project development legal entity.

Note: The documents used for communication for this task are:
- Letter requesting comments on the draft Memorandum of Understanding to relevant units and inviting them to the negotiation meeting.
Task 9: Providing comments on the draft Memorandum of Understanding

Task 3: Providing comments on the draft Memorandum of Understanding

Responsible parties

- Ministry of Energy and Mines:
0 Department of Policy and Energy Planning (Power Generation Planning Division);
0 Department of Planning and Cooperation (Investment Division);
0 Department of Legislation (Energy Legislation Division);
- Ministry of Natural Resources and Environment:
0 Department of Natural Resources and Environment Policy (Division for Review of Environmental Assessment Reports for Energy and Infrastructure Sector);
- Ministry of Planning and Investment:
0 Department of Investment Promotion (Project Research Division);
- Provincial Energy and Mines Departments; and
- Other relevant units.

Documents and information required: Draft Memorandum of Understanding.
Responsible provider: Department of Energy Business (Contract Division).

Documents and Information

Yes

Required for use

Implementation method: Relevant units review the draft Memorandum of Understanding and provide comments
Sub-task 8.7: Comments of the Department of Energy Policy and Planning (Power Source Planning Division)
The Power Source Planning Division provides comments on (if any):

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- Project boundary map and details of project locations;
- Concerns regarding conflict or overlap between the area of this project and other projects or prohibited areas;
- Requirements for the preliminary feasibility study of the project to be conducted during the implementation of obligations.

Sub-task 8.8: Comments of the Department of Natural Resource Policy
and Environment (Department of Review of Environmental Assessment Reports
Department of Energy and Infrastructure)
The Department of Review of Environmental Assessment Reports for the Energy and Infrastructure Sector provides comments on (if any) the terms of reference for the preliminary social and environmental assessment to be conducted during the implementation of obligations.

Sub-task 3.3: Comments of the Department of Investment Promotion (Project Research Division)

The Project Research Division provides comments on (if any):
- Financial provisions and indicates whether there are legal entities and banks that will support the legal entity in the development, implementation and operation of the project;
- Details on the deposit of guarantee funds.

Sub-task 8.4: Comments of the Department of Planning and Cooperation (Investment Division)
The Investment Department provides comments on (if any) the overall approval in the Memorandum of Understanding and participation in negotiation meetings.

Sub-task 8.5: Comments of the Legislation Department (Energy Legislation Division)

The Energy Legislation Division provides comments on (if any) review and legal opinions to ensure that the Memorandum of Understanding is consistent with relevant regulations.

Sub-task 8.6: Comments of the Provincial Energy and Mining Department

The Provincial Energy and Mining Department provides comments on (if any):
- Conditions for field studies during the implementation of obligations;
- Content regarding data collection for resettlement allocation within the project area.

Results of comments on the draft Memorandum of Understanding from relevant offices.
The period of five (390) days from the date of receipt of the draft Memorandum of Understanding.

Work

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Remarks

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0 Task 4: Participation in negotiation meetings for the Memorandum of Understanding

Task 4: Participation in negotiation meetings for the Memorandum of Understanding

Responsible parties

- Ministry of Energy and Mines:

0 Department of Policy and Energy Planning (Power Generation Planning Division);

0 Department of Planning and Cooperation (Investment Division);

0 Department of Legislation (Energy Legislation Division);

- Ministry of Natural Resources and Environment:

0 Department of Natural Resources and Environment Policy (Division for Review of Environmental Assessment Reports for Energy and Infrastructure Sector);

- Ministry of Planning and Investment:

0 Department of Investment Promotion (Project Research Division);
- Provincial Department of Energy and Mines; and
- Other relevant units.

Documents and

Meeting invitation letters, memoranda of understanding.

Required information

Responsible provider: Department of Energy Business (Contract Division).

Documents and information

Required

Implementation method - Department of Energy Business (Contract Division) sends meeting invitation letters and agenda
Negotiation meeting, memorandum of understanding, according to task b;

- All relevant parties discuss obligations, comments received from
various units in the meeting, and reach consensus;

- Contract Division prepares meeting minutes to serve as reference for
revising the draft memorandum of understanding according to the consensus reached by all relevant parties participating in the negotiation meeting
Next tasks.
Result: Minutes of Negotiation Meeting Memorandum of Understanding.
Timeline: Within seven (7) days of the deadline for submitting comments on the draft Memorandum of Understanding.

Provision

Relevant parties may not be able to reach consensus at the negotiation meeting of the Memorandum of Understanding. If such a case occurs, the Department of Energy Business (Contract Division) must organize further negotiation meetings, allowing sufficient time for revision. If after further negotiation meetings consensus still cannot be reached, the Contract Division will report to the Minister of Energy and Mines for consideration to propose to the Central Investment Promotion and Management Committee to reject the project development and to issue an official notification to the legal entity.
Task 1: Revise the draft Memorandum of Understanding after the negotiation meeting and report the results to the Central Committee for Investment Promotion and Management

Responsible unit: Department of Energy Business (Contract Division)

Documents and information required:
- Minutes of the negotiation meeting
- Memorandum of Understanding

Provider: Department of Energy Business (Contract Division)

Documents and information required:
- Minutes of the negotiation meeting
- Memorandum of Understanding

Implementation method:
- Department of Energy Business (Contract Division) revises the draft Memorandum of Understanding based on the minutes of the negotiation meeting and the Memorandum of Understanding
According to the consensus of all relevant parties participating in the meeting;

- The Treaty Department reports the revised draft Memorandum of Understanding following negotiations to the Minister of Energy and Mines for consideration and submission to the Central Committee for Investment Promotion and Management for approval.

Result: The revised draft Memorandum of Understanding for use in the approval process (after revision in accordance with the consensus of relevant parties at the negotiation meeting).

Timeline: Within fourteen (14) days from the date of the negotiation meeting, the Memorandum of Understanding work shall be completed.

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Note: The designated documents for communication for this task are:

- Report on the results of negotiations to the Minister of Energy and Mines, together with the revised draft Memorandum of Understanding according to the results
Negotiation;

- Letter from the Ministry of Energy and Mines to the Central Committee for Investment Promotion and Management for consideration and approval, signature.

Task 6: Consideration by the Central Committee for Investment Promotion and Management
Regarding
Draft Memorandum of Understanding
The provisions in this task are compiled by the Ministry of Energy and Mines based on research of laws and regulations,
and consultations with relevant sectors, to be integrated as key tasks in this standard procedure. If actual implementation differs, follow the guidance, regulations of the relevant sector, and the Law on Making Legislation.

#Task 6: Consideration by the Central Committee for Investment Promotion and Management of the
Draft Memorandum of Understanding
Responsible entity: Central Committee for Investment Promotion and Management.
Documents and information: Revised draft Memorandum of Understanding based on negotiation meetings and documents required by the Ministry of Energy and Mines.

Provider: Ministry of Energy and Mines.
Documents and information

Required for use
Implementation method: The Central Committee for Investment Promotion and Management holds its working meetings twice a month, during which it will consider

the draft Memorandum of Understanding received after the completion of negotiation meetings and will decide whether to approve or reject;

- The Central Committee for Investment Promotion and Management will instruct the Ministry of Energy and Mines to revise and submit the draft Memorandum of Understanding
Understand, reconsider if there are still points that need further work;

- In case of approval, the Central Investment Promotion and Management Committee will send the draft Memorandum of Understanding to the Office of the Prime Minister for final approval;

- In case of rejection, the Central Investment Promotion and Management Committee will instruct the One-Stop Investment Service Office to issue a rejection letter.

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Results

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The consideration of the Central Investment Promotion and Management Committee may have the following possible outcomes:

- Request for additional information from the legal entity: The One-Stop Investment Service Office notifies and explains the information desired from the legal entity, as specified in Task 7 of this standard procedure;
- Approval of Memorandum of Understanding: is the case where the draft Memorandum of Understanding is submitted to the Office of the Prime Minister for final approval as specified in Step 8 of this standard procedure;
- Rejection of Memorandum of Understanding: The One-Stop Investment Service Office will be notified of the rejection of the Memorandum of Understanding along with the relevant reasons. The One-Stop Investment Service Office will issue a rejection letter to the legal entity as specified in Step 9 of this standard procedure.

Timeframe for the steps

Within fourteen (14) working days from the date of receipt of the draft Memorandum of Understanding.

Stipulation

The Chairperson of the Central Investment Promotion and Management Committee is