EVN falls short of VND180 trillion electricity investments

Electricity of Vietnam still falls short of VND180 trillion to invest in electricity projects in 2011-2015,

said Duong Quang Thanh, deputy CEO of EVN at the online meeting on electricity plan WII deployment held today

June 28.

The capital needed to arrange is for key projects providing electricity for the south such as My Tan 4, Duyen

Hai 3, O Mon 3,4 and EVN has been negotiating to borrow from ADB, JICA and also asks the government to access

to local funds.

Thanh said EVN needs a total capital of over VND500 trillion and has just arranged VND315 trillion.

The shortage of funds will impact the process of electricity plans however, for projects which have already

arranged funds or will be able to access funds, EVN will ensure the timeline, Thanh said.

Phan Ngoc Quang, deputy director of Investment department of the Ministry of Finance said investors’ capital

could only meet 20-30% capital needed for electricity projects and the rest will be raised from outside

sources, and Vietnam side can arrange a maximum of 70-80%.

The MOF’s representative said in the short term, the steering committee of electricity plan WII is likely to

propose Government to warrantee bank loans or have mechanism for investors to get soft loans.

For the long term, Vietnam will proceed restructuring of electricity industry, continue to raise electricity

price as planned to attract investors and implement competitive electricity market.

Deputy Minister of Industry and Trade, Hoang Quoc Vuong, said to deal with capital problems, the key solution

is pricing policy, when electricity prices is reasonable and profitable to attract investors both local and

overseas.

Vuong also highlighted that EVN, TKV and PVN should take special note that they must pick up competent

contractors to avoid project delay as it happened recently.

EVN’s representative said the group has cooperated with the Ministry of Industry and Trade to complete

preparation for electricity competitive market to start from July 1, 2012 and 29 power plants are qualified to

take part in this market, adding that electricity price bought from independent power plant will be 5% higher

on average.s

https://businesstimes.com.vn/evn-falls-short-of-vnd180-trillion-electricity-investments/