🔍 Part 6: Land and Real Property Issues in Renewable Energy Projects – Series: Legal Due Diligence (LDD) for Renewable Energy (RE) Projects in Vietnam

1️⃣ Shared Infrastructure with Other Projects

Renewable energy projects often share land, staff housing, operation buildings, access roads, equipment, and transmission lines with other projects (as a developer often developed different projects in one area). Proper agreements and land-use rights must be verified (or to be agreed) to avoid disputes over access and operational dependencies.

2️⃣ Project Land Exceeding Land Limits & Documentation Inconsistencies

A recurring issue is when the actual land area used exceeds statutory land limits or discrepancies arise across project documents. These inconsistencies can lead to regulatory scrutiny and potential delay in paying electricity invoices, making document alignment critical.

3️⃣ Land Title, Clearance, Compensation, Land Acquisition & Bribery Risks

The land title is very important for the projects, in certain cases, only LURCs cannot secure for the firm legal title over the land. Does the title over the land remained after the acquisiton? (as the project company will become the foreign invested company). Land acquisition and compensation involve complex documentation and legal compliance. Given the high volume of records, it is crucial to engage legal advisors early to verify agreements, which should also be clearly agreed. Additionally, bribery risks in land acquisition procedures require a careful review and evaluation.

4️⃣ Assets Located Outside Approved Land Boundaries

If project assets are built outside the approved land or LURC boundaries, corrective actions may be required, but the feasibility and estimated timeline should be carefully evaluated. Engaging a land measurement agency is a must for the RE projects.

5️⃣ Collateral & Land Incentives

Lenders often require collateral over project land and assets. Developers should review land-use incentives and ensure that the project structure aligns with eligibility requirements. Refer to my previous posts for more details on collateral and incentives: https://lnkd.in/g-ZFxF_q
and https://lnkd.in/g4bug9Qc

📌 Conclusion:
Land-related issues can derail a renewable energy project if not addressed properly during LDD. Engaging experienced legal counsel and technical experts is key to mitigating risks. Lawyer should read (must read) and work very closely with technical advisor and FDD (for thenland conpensation) to ensure that lawyers don't miss something inportant. Please let me know if I forgot to list out any fundamental issues for this part.

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