EVN estimates 832tr dong for power investment projects till 2015

Ministry of Industry and Trade (MoIT) on September 8 organized a conference to review the implementation of Electricity Planning VI and discuss solutions for the Electricity Planning VII.
Electricity of Vietnam (EVN) said that in its investment plan for 98 power projects with a total capacity of 58,000 MW in 2006-2015 period, the group has conducted 50 projects with a total capacity of 33,200 MW, accounting for 57% of the total.

EVN also estimates the total demand of capital for power investment projects till 2015 would be about 832 trillion dong. However, the group has raised only 283.7 trillion dong and needs to raise additional 599 trillion dong. Facing the difficulties, EVN was forced to return 13 power projects to the government.

Currently, the group’s capital need in 2011-15 period is estimated at 525.168 trillion dong. So far, the group has arranged 247.978 trillion dong and is in need of 277.19 trillion dong.

In 2011 alone, EVN’s capital demand was estimated at 69.9 trillion dong. But, it mobilized only 51.58 trillion dong and is in need of 18.32 trillion dong. EVN has worked with banks to extend its debt worth four trillion dong and still needs to raise 14.32 trillion dong.

EVN said that the capital shortage will be the big challenge for the group while it is facing constant losses from business activities.

Therefore, EVN proposed MoIT to soon build capital mobilization scheme for power development under the direction of the prime minister in accordance with the Decision No 1208 on Electricity Planning VII. At the same time, EVN also petitioned the Ministry of Finance to soon build financial mechanism and investment capital mechanism for power development.

The group also recommended getting priorities in using ODA (official development assistance) capital, bilateral capital sources of foreign partners and guarantees for foreign capital borrowing contracts of the group and its subsidiaries.

The group also asked MoIT to adjust the electricity price in September according to the Decision No 24 as well as to be able to hike its chartered capital to ensure the yearly depreciation capital ratio for debt repayment.

Not only EVN, Song Da Group also said that Vietnam Development Bank (VDB) recently reported there will be no funding plan in 2011 for Xekaman hydroelectric projects. The project has total investment of 7.3 trillion dong to be built in Sekong province, Laos.

Song Da Group is also proposing MoIT to allow Vietnam-Lao Power Joint Stock Co to sign credit contract under state development investment method and get capital planning in 2011 for Xekaman 1 hydropower plant with amount of 500 billion dong that is expected to be disbursed in Q3 2011. – Vietbiz24

Tags: EVN, Vietnam energy, Vietnam energy industry, Vietnam Energy sector