THE MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT ------No.

12/2010/TT-BTNMT

SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom Happiness --------Hanoi, July 26, 2010 CIRCULAR

PRESCRIBING THE FORMULATION AND GRANT OF LETTER OF ENDORSEMENT AND LETTER OF APPROVAL FOR PROJECTS UNDER THE CLEAN DEVELOPMENT MECHANISM WITHIN THE FRAMEWORK OF KYOTO PROTOCOL

THE MINISTER OF NATURAL RESOURCES AND ENVIRONMENT

Pursuant to the Government's Decree No. 25/ 2008/ND-CP of March 4, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Natural Resources and Environment; Pursuant to the Prime Minister's Decision No. 130/2007/QD-TTg of August 2, 2007, on a number &f financial mechanisms and policies applicable to investment projects under clean the development mechanism; At the proposals of the director of the Hydrometeorology and Climate Change Department and the director of the Legal Department, STIPULATES: Article 1. General provisions 1. This Circular provides for preparation, order and procedures to consider, certify and approve investment project documents under clean development mechanism within the framework of Kyoto Protocol in Vietnam. 2. This Circular applies to domestic or foreign organizations and individuals investing in formulation and implementation of investment projects under the clean development mechanism in Vietnam (below referred to as clean development mechanism project developers). 3. Upon formulating and implementing investment projects under the clean development mechanism, apart from complying with this Circular, stakeholders shall observe provisions on construction domain, construction forms and conditions on investment projects under the clean development mechanism specified in the Prime Minister's Decision No. 130/2007/QD-TTg of August 2, 2007, on a number of financial mechanisms and policies applicable to investment projects under the clean development mechanism; regulations on investment, environmental protection, and other relevant laws. Article 2. Acronyms 1. Clean development mechanism (CDM); 2. Investment project under CDM (CDM project); 3. CDM project idea note (PIN); 4. Design document (DD); 5. CDM project design document (PDD); 6. CDM program of activities (PoA); 7. CDM program activity (CPA); 8. CDM program of activities design document (PoA-DD); 9. CDM program activity design document (CPA-DD); 10. The Steering Board for implementation of the United Nations Framework Convention on Climate Change and Kyoto Protocol (the Steering Board); 11. The Hydrometeorology and Climate Change Department under the Ministry of Natural Resources and Environment (the Hydrometeorology and Climate Change Department). Article 3. Construction and investment domains of CDM projects A CDM project may be constructed and invested in following domains: 1. Energy production; 2. Energy transmission; 3. Energy consumption; 4. Agriculture;

5. Waste treatment; 6. Forestation and reforestation; 7. Chemical industry; 8. Manufacturing industry; 9. Construction; 10. Transport; 11. Mining; 12. Metal production; 13. Emissions from fuels (solid fuel, oil and gas); 14. Emissions from production and consumption of Halocarbons and Sulphur hexafluoride; 15. Use of solvents; 16. Other domains under international regulations and Vietnam's law. Article 4. Preparation for CDM projects 1. CDM project developers shall formulate CDM project documents on the basis of investor's requirements by either of the following methods: a) Formulate PIN, submit it to a competent authority for grant of letter of endorsement, and then continue to formulate PDD or PoA-DD together with general CPA-DD and practical CPA-DD; b) Formulate PDD or PoA-DD together with general CPA-DD and practical CPA-DD, then submit them to a competent authority for grant of letter of approval. 2. CDM project developers may choose by themselves or through counselor staff suitable investment forms, technology and mode of sharing benefits from CDM projects. 3. Upon formulating PDD of PoA-DD together with general CPA-DD and practical CPA-DD, CDM project developers shall, in coordination with foreign investors and designated professional organizations, assess projects before submitting them to the International Executive Board on CDM for registration under regulations. 4. Within 6 months after commencing the project, CDM project developers shall send a written report on the starting date or development plan of the CDM project to the Hydrometeorology and Climate* Change Department (made according to a set-form, not printed herein). 5. At least 6 months before submitting the CDM project document, CDM project developers shall send a written notice of CDM project implementation plan in Vietnam to the Hydrometeorology and Climate Change Department. Article 5. Dossiers of application for PIN letter of endorsement 1. 18 (eighteen) Vietnamese PIN and 3 (three) English PIN (made according to a set form, not printed herein). 2. Documents of CDM project developers submitted to be considered for grant of PIN letter of endorsement (made according to a set form, not printed herein). Article 6. Order, procedures, time limit for grant and validity of PIN letter of endorsement 1. Within 3 working days after receiving a valid PIN, the Hydrometeorology and Climate Change Department shall collect comments and assessments of the Steering Board's members before submitting them to the Minister of Natural Resources and Environment for consideration and decision on grant of PIN letter of endorsement. 2. Within 6 working days, the Steering Board's members shall give their comments and assessments in writing. 3. Time limit for notification of comments and assessments of the Steering Board on grant of PIN letter of endorsement: a/ In case two-thirds of the Steering Board's members reach agreement, within 3 working days, the Hydrometeorology and Climate Change Department shall summarize comments and assessments, then submit them to the Minister of Natural Resources and Environment for grant of PIN letter of endorsement for project developers. b/ When necessary to modify PIN or two-thirds of the Steering Board's members cannot reach an agreement, during 2 working days, the Hydrometeorology and Climate Change Department shall inform project developers of PIN's state (time for project developers' to modify PIN is not counted in the total time for considering and granting PIN letter of endorsement). 4. Within 3 working days, the Minister of Natural Resources and Environment shall consider and decide to grant PIN letter of endorsement. 5. The total time for considering and granting PIN letter of endorsement specified in this Article is 15 working days. 6. PIN letter of endorsement is valid for 18 months from the date of grant.

Article 7. Dossiers of application for PDD or PoA-DD letter of approval 1. 18 (eighteen) Vietnamese PDD or PoA-DD and 18 (eighteen) English PDD or PoA-DD (made according to a set form, not printed herein). 2. Documents of CDM project developers submitted for consideration and grant of PDD or PoA-DD letter of approval (made according to a set form, not printed herein). 3. Written request for consideration and approval of CDM project document of the People's Committee of the province or centrally-run city where the project is invested (made according to a set form, not printed herein). 4. Written consents of ministries and ministerial-level agencies with the function of state management of fields of CDM project operations in case CDM projects establish state coordination bodies. Certified copies of appraisal documents of stakeholders who are directly affected by project activities (made according to a set form, not printed herein). 5. Certified copies or certification of competent authorities deciding to approve environmental impact assessment reports or written certification of the environmental protection commitment, depending on the size and type of project under current relevant regulations. 6. Certified copies or certification of competent authorities of pre-feasibility study reports of largesized CDM projects. 7. Written on-principle consent of the Electricity of Vietnam (EVN) on connection to the national power grid, for electricity generation projects hooked up to the national power grid. 8. Related licenses (if any) granted by competent state authorities for projects in specific fields under current regulations. 9. Technical report or draft report on PDD or PoA-DD appraisal of a professional organization designated by the International Executive Board on CDM (if any). Article 8. Order, procedures and time limit for consideration and grant, and validity of PDD or PoADD letter of approval 1. Within 5 working days after receiving a valid PDD or PoA-DD dossier, the Hydrometeorology and Climate Change Department shall collect comments and assessments of the Steering Board's members. 2. Within 16 working days, the Steering Board's members shall give written comments and assessments (made according to a set form, not printed herein). 3. Within 3 working days, the Hydrometeorology and Climate Change Department shall summarize comments and assessments of the Steering Board's members and send them to CDM project developers, explaining in detail relevant contents (the time for CDM project developers to make written detailed explanations is not counted in the total time for considering PDD or PoA-DD letter of approval). 4. Within 9 working days after receiving detailed explanations of project developers, the Steering Board shall organize a meeting with the participation of CDM project developers to explain relevant contents and a polling of PDD or PoA-DD. 5. Time limit for notification of comments and assessments of the Steering Board on grant of PDD or PoA-DD letter of approval: a/ In case two-thirds or more of the Steering Board's members reach agreement, within 6 working days, the Hydrometeorology and Climate Change Department shall propose the Minister of Natural Resources and Environment to consider and decide to grant PDD or PoA-DD letter of approval. b/ In case modification is required, within 2 working days, the Hydrometeorology and Climate Change Department shall request project developers to modify relevant contents (the time limit for modification is not counted in the total time limit for consideration and grant of PDD or PoA-DD letter of approval). 6. Within 6 working days, the Minister of Natural Resources and Environment shall consider and decide to grant PDD or PoA-DD letter of approval. 7. The total time limit for considering and granting PDD or PoA-DD letter of approval specified in this Article is 45 working days. 8. PDD or PoA-DD letter of approval shall be sent to CDM project developers and designated international professional agency and notified to Vietnam's concerned agencies. 9. PDD or PoA-DD letter of approval is valid for 24 months from the date of grant, Article 9. Effect This Circular takes effect on September 10, 2010, and supersedes the Minister of Natural Resources and Environment's Circular No. 10/ 2006/TT-BTNMT of December 12, 2006, guiding the formulation of projects under the clean development mechanism within the framework of Kyoto Protocol. Article 10. Organization of implementation 1. The Hydrometeorology and Climate Change Department shall receive dossiers, and monitor, guide and inspect concerned organizations and individuals in the course of considering, registering,

certifying and approving CDM project documents under this Circular. 2. Provincial-level Natural Resources and Environment Departments shall assist People's Committees at all levels and concerned organizations and individuals in the course of formulating and implementing CDM projects under this Circular and relevant regulations. 3. Ministers, heads of ministerial-level agencies, chairpersons of provincial-level People's Committees and concerned organizations and individuals shall implement this Circular. Any problems arising in the course of implementation should be reported to the Ministry of Natural Resources and Environment for settlement.FOR THE MINISTER OF NATURAL RESOURCES AND ENVIRONMENT DEPUTY MINISTER

NGUYEN VAN DUC