ASSESSMENT OF THE VALUE OF ELECTRICITY WORKS

Over the past half century, the development of hydroelectricity in our country has gone through a long and arduous journey, but it has brought enormous benefits to the national economy. Hydropower plants play a very important role in the national power system, in addition to producing electricity, they also participate in flood control, water supply for downstream areas, and socio-economic development.

Hydropower plants are a large investment area, businesses often depend on loans from banks. Therefore, the appraisal of the value of the Hydropower Plant before taking a bank loan is extremely important and necessary as one of the deciding factors for the loan of the business.

Purpose of appraisal of hydropower plants:

• Purchase, sale, merger (M&A), transfer, investment valuation, investment capital contribution
• Mortgage for a bank loan
• Tax reporting, financial statements, bookkeeping
• Provide information for business management
• Other purposes recognized by law

Dossier of request for price appraisal of Hydropower Plant:

In order to appraise the price of a hydropower project most accurately, the price appraisal supply dossier must be detailed and complete. The valuation company, the appraiser has the right to refuse the request for valuation if the enterprise does not provide all necessary documents. Dossier of request for appraisal of hydropower plant prices include the following:

• Information about the owner of the Hydropower Plant project
• Investment certificate issued by a competent state agency
• A document from a competent state agency approving the enterprise as the investor of the hydropower project
• Decision approving the enterprises hydropower investment project
• Investment certificate issued by a competent State agency
• Electricity operation license issued by a competent State agency
• License for exploitation and use of water surface issued by competent State agencies
• Certificate of land use rights, ownership of houses and properties attached to land, issued by a competent State agency
• Land lease agreement
• Economic contracts, construction contracts, invoices and documents, import declarations, compensation records and other relevant documents.
• Details of the total cost estimate of Hydropower projects - construction, project management, construction investment consulting and other costs
• Details of total cost estimate of Hydroelectric projects – Equipment part
• Decision approving technical design - total cost estimate of investment project for construction of Hydroelectricity Power Plant issued by a competent State agency
• Decision approving the adjustment of installation capacity of the hydroelectric power plant investment project issued by a competent state agency
• Minutes of acceptance of meters of Hydropower Plant
• Certificate of registration of commitment to environmental protection of hydropower projects
• Dispatch of the Fire Prevention and Fighting Police Department on the appraisal and approval of fire prevention and fighting for the basic design of the Hydropower Project
• Dispatch for comments on appraisal of basic designs of hydropower projects​
• Dispatch for comments on appraisal of basic designs of projects
• Decision on promulgating the process of operating hydroelectric reservoirs issued by competent state agencies
• Construction permits issued by competent state agencies
• Power purchase and sale agreement Hydropower plant

The valuation of Hydropower Plant is relatively complicated in terms of technology and equipment. Therefore, in order to accurately appraise the value of hydroelectric projects, appraisers must have extensive experience and expertise to fully meet the most stringent requirements in the field of property valuation.

Hoang Quan Appraisal with nearly 20 years of experience in the field of appraisal, along with a team of experienced appraisers and real estate appraisers are: PhD, Master of Economics, Construction Engineer , Mechanical Engineers, Lawyers, etc. have high professional qualifications to meet the requirements and appraisal standards of the Vietnam Valuation Association (VVA), the Asian Valuation Association (AIA), International Valuation Council (IVSC), we are committed to providing our customers with dedicated and effective advice, the best work productivity.