EVN gets sharp reminder to pay debts

Electricity of Vietnam is being pushed to repay debts to key industry players.

In a recent monthly review meeting hosted by the Ministry of Industry and Trade, Vinacomin and PetroVietnam proposed the power sector chief (EVN) seriously think about repaying its debts.

“EVN should pay us VND1 trillion ($48.3 million) it owed to our Cam Pha thermo-power plant,” said Vinacomin’s deputy general director Nguyen Van Bien.

“If the EVN does not pay us, our top players PV Oil and PV Gas will neither buy in gas nor have money to pay contractors,” said PetroVietnam deputy general director Vu Quang Nam.

According to Vinacomin and PetroVietnam, EVN owes them VND10 trillion ($483 million). EVN, however, has not aired its debt repayment scheme.

MoIT deputy minister Hoang Quoc Vuong urged the power sector to think seriously of repaying debts to Vinacomin and PetroVietnam ‘to prevent these groups continually asking for EVN’s debt repayment.’

The power sector debt issue has been on MoIT’s review meeting agenda since April 2011.

According to EVN deputy general director Duong Quang Thanh, EVN bought 9.57 billion kWh from outside sources in August, up 10.26 per cent on-year.

The sector’s September power production would reach 314 million kWh per day. Also in September the South Con Son gas piping system will be off line for 15 days from September 15 for periodical maintenance. However, EVN still failed to source VND10 trillion to buy oil for power generation as guided by the government during that period, according to MoIT executives.

Power plants in the Ba Ria-Vung Tau, Phu My and Nhon Trach complexes mainly source gas from the South Con Son piping system for power generation which accounts for around 20 per cent of the power system’s total capacity, around 3,800 megawatts.

Tags: EVN