Chapter VI
ELECTRICITY SUPPLY TO RURAL, MOUNTAINOUS AND ISLAND AREAS
Article 50.- The investment in development and management of rural, mountain and island electricity grids (hereinafter called the rural electricity grids) shall be effected according to the following principles:
1. The rural electricity grids are infrastructure, with investment made according to the principle of "joint efforts of the State, people, the central government and localities", diversification of the mode of investment and management of electricity supply.
2. Investors shall construct electricity grids in localities on lists B and C prescribed in the Government’s Decree No. 51/1991/ND-CP of July 8, 1999 detailing the implementation of the Domestic Investment Promotion Law (amended), may borrow preferential loan capital at interests lower than those on the State’s development investment credit loan capital.
The Finance Ministry shall assume the prime responsibility and coordinate with the Ministry of Industry and the Ministry of Planning and Investment in guiding the implementation of this stipulation.
3. The ceiling sale prices of daily-life electricity to households using rural electricity shall be prescribed by the Prime Minister. The presidents of the People’s Committees of provinces or centrally run cities shall set specific price level for each region.
4. The rural electricity managing organizations which buy electricity from the national electricity system for direct sale to rural households for use in their daily life shall enjoy tax exemption or reduction according to the provisions of law.
Article 51.- The investment in the construction or upgrading of rural electricity grids shall be effected as follows:
1. The medium-voltage transmission lines and low-voltage transformer stations shall be invested and managed by Vietnam Electricity Corporation, except otherwise provided for by the Prime Minister.
2. The low-voltage axial lines shall be invested with localities’ mobilized capital sources.
3. The branch lines from the low-voltage axial lines to electricity users’ locations shall be invested by electricity-using organizations and individuals.
4. The State shall provide funding support for construction of low-voltage axial lines and branch lines to people’s houses in mountainous areas of regions II and III, border communes, families entitled to social policies as provided for by law.
5. For mountainous, island, deep-lying, remote areas and regions facing special difficulties, where the national electricity grids cannot reach or where the introduction of electricity from the national grids is non-beneficial economically, the construction of on-spot power sources such as mini-hydro-electric power stations, diesel power plants, solar power energy and other forms of energy shall receive financial support from the State and be entitled to other preferences according to the provisions of law.