EVN losses affecting PVN projects

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SaigonTimes English - 38 month(s) ago 63 readings

HCMC – Struggling Vietnam Electricity Group (EVN) has continuously been asked to pay for power purchases from Vietnam Oil and Gas Group (PVN) as EVN’s debts have discouraged investment in PVN’s power projects.

EVN losses affecting PVN projects

By Van Nam - The Saigon Times Daily

HCMC – Struggling Vietnam Electricity Group (EVN) has continuously been asked to pay for power purchases from Vietnam Oil and Gas Group (PVN) as EVN’s debts have discouraged investment in PVN’s power projects.

Tran Quoc Viet, head of planning at PVN, said in a meeting with the Ministry of Industry and Trade on Monday that the amount of money EVN owes PVN has amounted to over VND10 trillion, up VND2 trillion from August. EVN’s late payments have hindered the equitization process of PVN’s subsidiaries, Viet said.

PVN also has difficulty calling for foreign investment in its power projects due to a lack of reciprocal capital and long paybacks, and thus has asked for the intervention of the ministry and the Government.

EVN also owes Vietnam Coal and Mineral Industries Group (TKV) VND1.8 trillion, in which overdue debts amount to VND1.2 trillion, said Nguyen Van Bien, head of planning at TKV.

However, deputy general director of EVN Nguyen Tan Loc in the meeting did not mention the debts but instead focused on the group’s power production results in the January-September period and power generation plans in the next three months.

EVN’s debts are partly caused by the low power price and the nascent competitive power market, according to Deputy Minister of Industry and Trade Le Duong Quang.

The Prime Minister has told commercial banks to lend EVN VND10 trillion to pay debts but the amount has yet to be mobilized.

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