JOINT CIRCULAR

GUIDING THE COMPENSATIONS AND SUPPORTS FOR THE CONSTRUCTION OF HIGH-TENSION POWER GRID PROJECTS

Pursuant to the current land legislation;
Pursuant to the October 28, 1995 Civil Code;
Pursuant to the Government’s Decree No. 22/1998/ND-CP of April 24, 1998 on damage compensations upon the land recovery by the State for use for the purposes of national defense, security, national interest or public interest;
Pursuant to the Government’s Decree No. 54/1999/ND-CP of July 8, 1999 on the protection of safety of high-tension power grids;
The Ministry of Finance and the Ministry of Industry hereby jointly guide the compensations and supports for the construction of high-tension power grid projects, as follows:

I. GENERAL PROVISIONS

1. The compensations and supports for the construction of high-tension power grid projects shall be made as follows:

- Where the State recovers land, including land lying within the corridor for protection of safety of high-tension power transmission lines, the compensations and supports shall be made according to the Government’s Decree No. 22/1998/ND-CP of April 24, 1998, the Finance Ministry’s Circular No. 145/1998/TT-BTC of November 4, 1998 and Official Dispatch No. 4448/TC-QLCS of September 4, 1999 guiding the solution of some problems in the work of compensation and ground clearance.

- For land not recovered by the State and lying within the corridor for protection of safety of high-tension power transmission lines, if the land utility is limited or property damage is caused by the construction of projects, the compensations or supports to organizations, households or individuals that use such land shall be made according to the guidance in Section II of this Circular.

2. Investors (or representatives of investors) of high-tension power grid projects shall have to make compensations and/or supports according to the provisions of the Government’s Decree No. 22/1998/ND-CP of April 24, 1998, the Finance Ministry’s Circular No. 145/1998/TT-BTC of November 4, 1998 and Official Dispatch No. 4448/TC-QLCS of September 4, 1999 and the guidance in this Circular.

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1. For land:

For land eligible for compensations as defined in Article 6 of the Government’s Decree No. 22/1998/ND-CP, which shall not be recovered by the State but lies within the corridor for protection of safety of high-tension power transmission lines, and therefore has its utility limited, compensations for actual damage shall be made as follows:

a/ In cases where such land has its use purpose converted from residential land (population quarter land) or project construction land (special-use land) into agricultural land or forestry land, compensations shall be made in cash according to the difference between the price of residential land (population quarter land) and that of land for new use purposes.

b/ In cases where land use purposes are unchanged (residential houses and civil works satisfy conditions to exist within the corridor for protection of safety of power lines), but its utility is therefore limited, compensations shall be made in cash according to the actual damage extents. The compensation level shall be equal to the difference between the land price before and that after the issuance of decisions on land recovery for project construction by provincial-level People’s Committees according to the practical conditions of their localities, but the maximum compensation level must not exceed 50% of the land price before the issuance of decisions on land recovery for project construction.

c/ When the corridor for protection of safety of high-tension power transmission lines occupies a space larger than 70% of the used land area with residential houses and/or works of an owner, the unoccupied land area shall also be entitled to compensation according to the provisions at Points a and b, Clause 1, Section II of this Circular.

d/ The following land categories shall not be entitled to compensation or support:

- Land leased by the State, agricultural land, forestry land, salt-making land, land with water surface for aquaculture, unused land, special-use land assigned without payment of land use levy or payment of land use levy with the State budget money.

- Land ineligible for compensations defined in Article 6 of the Government’s Decree No. 22/1998/ND-CP of April 24, 1998.

2. For property:

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b/ Damage to crops shall be compensated according to the provisions in Articles 23 and 24 of the Government’s Decree No. 22/1998/ND-CP of April 24, 1998.

c/ Residential houses and works, which exist before the construction of high-tension power transmission lines, and other properties, which meet the conditions prescribed in Clause 1, Article 8 of Decree No. 54/1999/ND-CP and are therefore allowed to exist within the corridor, suffer no damage but have their utility limited, shall be entitled to supports. Support levels for grade-1 and grade-2 houses shall be 10%; for grade-3 and grade-4 houses and independent auxiliary works shall be 30% of the value of residential houses and works on the area lying within the corridor for protection of safety of power lines, calculated at prices of newly constructed houses and works with equivalent technical standards promulgated by the provincial-level People’s Committees according to the Government’s regulations.

d/ In cases where residential houses and works, which fail to satisfy the safety conditions and must be partially dismantled or undergo repair or renovation to ensure the safety conditions prescribed Clause 1, Article 8 of Decree No. 54/1999/ND-CP, in order to be allowed to exist within the protection corridor, they shall be entitled to compensations for their dismantled parts or expenses for their repair or renovation. Besides, if houses, works and other properties have their utility limited, they shall be entitled to supports provided for at Point c, Clause 2, Section II of this Circular.

e/ In cases where more than 70% of the total ground area of houses, works or other properties, which are eligible for supports according to the provisions at Point c, Clause 2, Section II of this Circular, is occupied by the corridor for protection of safety of high-tension power lines, thus limiting their utility, the supports shall be calculated for the whole area of such houses or works.

3. If residential houses and works built or plants cultivated after the competent authorities’ decisions approving projects on construction of power transmission lines are notified to all organizations, households and individuals having their houses and land lying within such project areas fail to meet the safety conditions prescribed in Decree No. 54/1999/ND-CP, they must be dismantled without compensations or supports.

4. For residential houses and works, which, after the investors effect the compensation and support policies, meet the conditions to exist (remain) within the corridor for protection of safety of high-tension power transmission lines according to provisions in Clause 1, Article 8 of Decree No. 54/1999/ND-CP, if their owners wish to move out of the safety corridor, they shall carry out the relocation by themselves without any compensations or supports.

III. ORGANIZATION OF IMPLEMENTATION

1. The provincial-level People’s Committees shall direct the provincial/municipal Finance-Pricing Services to assume the prime responsibility and coordinate with provincial/municipal Land Administration Departments, Construction Services, Industry Services and relevant branches in guiding the compensation and support upon the construction of high-tension grids strictly according to the Government’s Decree No. 22/1998/ND-CP and Decree No. 54/1999/ND-CP, the Finance Ministry’s Circular No. 145/1998/TT-BTC of November 4, 1998 and Official Dispatch No. 4448/TC-QLCS of September 4, 1999 and the guidance in this Circular.

2. Investors of high-tension power grid construction projects shall have to coordinate with the Councils for ground clearance compensation in working out plans on compensations and/or supports, then submitting them to the provincial-level People’s Committees for approval. The Councils for ground clearance compensation shall have to organize the work of making compensations or supports to eligible organizations, households and individuals when high-tension power grid projects are constructed in both cases of land recovery and non-recovery according to the provisions of the Government’s Decree No. 22/1998/ND-CP, the Finance Ministry’s Circular No. 145/1998/TT-BTC of November 4, 1998 and Official Dispatch No. 4448/TC-QLCS of September 4, 1999 and this Circular.

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For high-tension power grid projects, which have already been completed and are commissioned to transmit power before the effective date of this Circular, compensations and supports under this Circular’s guidance shall not be applied.

Any problems, which arise in the course of implementation and need to be solved, should be reported by the concerned agencies, units and People’s Committees of all levels to the Ministry of Finance and the Ministry of Industry for coordinated solution.

FOR THE MINISTER OF FINANCE
VICE MINISTER




Tran Van Ta

FOR THE MINISTER OF INDUSTRY
VICE MINISTER




Bui Xuan Khu