EVN owes 10.1tr dong to PetroVietnam: Official

Till date, Electricity of Vietnam Group (EVN)’s debts to Vietnam Oil and Gas Group (PetroVietnam – PVN) have amounted to 10.1 trillion dong compared with the last month’s figure (8 trillion dong), Tran Quoc Viet reported at a 9-month conference briefing s of the Vietnamese Ministry of Trade and Industry on Oct. 3.
Viet expressed his concern that if EVN’s debts payments are not definitely finished, this will impact negatively on the equitization of subsidiaries of PetroVietnam. Meanwhile, as for each coal-fired thermal power project, PVN has to spend a significant amount of capital.

“If this situation lasts long, it will surely cause difficulties for the calling of our capital,” Viet complained.

Deputy Minister of Industry and Trade, Le Duong Quang said that because of too young competitive electricity market of Vietnam, EVN could not avoid challenges. Quang suggested the parties should closely discuss together and cooperate with the Government as well as ministries to solve problems for EVN for sake’s common development.

Quang said that EVN’s debts are no longer a new issue because the Government has also directed to deal with this. The nature of electricity prices is not appropriate, leading to the above difficulties.

To date, the EVN has still owed PVN and Vietnam National Coal and Minerals Industries Group (Vinacomin) about 11.1 trillion dong and is always reporting big losses.

In the next plan, Deputy General Director of EVN Nguyen Tan Loc, said in the fourth quarter of this year, EVN is determined to ensure enough electricity for socio-economic development. It is expected that EVN will produce and buy a total of 107 billion kWh this year, of which commercial electricity reaches 24 billion kWh in the fourth quarter and 94.2 billion kWh in the whole year. – Vietbiz24

Tags: EVN debts

Posted by VBN on Oct 5 2011. Filed under Energy, Oil-Gas & Petroleum. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry