On May 05, 2014, the Prime Minister issued the Decision No. 31/2014/QD-TTg dated May 05, 2014 of the Prime Minister on supporting mechanism for development of power generation projects using solid waste in Vietnam, accordingly, power generation projects using solid waste shall receive many incentives on investment, tax land and so on.
In particular, The power generation projects using solid waste shall be entitled to the incentives of investment credit under current regulations of law on investment credit and export credit of the State or be entitled to the exemption of import tax for imported goods to create fixed assets for the project; imported goods as raw materials, supplies and semi-products that have not been produced in the country shall be imported for production of the project as stipulated by current regulations of law on import and export tax.
The exemption and reduction of corporate income tax for the power generation projects using solid waste shall apply as for projects under the areas of investment incentives as stipulated by current regulations of law on tax.
Besides, the land use fees or land rent for the power generation projects using solid waste and the works of transmission line and substation for connection to the national power grid shall be exempted or reduced under current regulations of law applicable to projects under the areas of investment incentives. Based on the planning approved by the competent authorities, the provincial People’s Committee shall allocate adequate land for investors to implement the power generation projects using solid waste.
The compensation and support of site clearance shall comply with the current regulations of law on land. Additionally, the power generation projects also receives electricity price support.
The electricity Buyer shall buy all power output from power generation projects using solid waste at the buying price at the electricity delivery point (with VAT excluded), for power generation projects by direct burning of solid waste: 2,114 VND / kWh (equivalent to 10.05 UScents / kWh); for power generation projects by combustion gas collected from the solid waste landfill: 1,532 VND / kWh (equivalent to 7.28 UScents / kWh).
And the power generation projects using solid waste applying the electricity selling price under the provisions of Clause 1 of this Article must not apply the supporting mechanism of price for the power output of the project under other current regulations; the electricity buying price is adjusted according to the fluctuation of exchange rate of VND/USD.
This Decision takes effect on June 20, 2014.
