EVN, PVN forced to cut investment

The Electricity of Vietnam (EVN) and PetroVietnam now account for a half of total investment capital of state groups and corporations under the latest inspection. And two giants will have to cut investment capital within this year according to the government’s Resolution No 11.
The statement was made in the Ministry of Planning and Investment’s report to National Assembly.

Citing the report, total investment and development capital for 2011 at 23 groups and corporations is 350 trillion dong. However, in order to comply Resolution 11, these firms have inspected, suspended and extended 907 projects capitalized at total nearly 40 trillion dong (equaling to a cut of 10.7%).

Majority of the cut capital was planned for building headquarters, offices, purchasing costly equipments which are not directly served for main business productions sectors, the ministry explained.

Among these groups, EVN is the unit forced to cut 12.160 trillion dong, the highest investment capital reduction compared with the previous plan, followed by PetroVietnam (more than 7.250 trillion dong), Vinacomin (4.787 trillion dong), and VNPT (3 trillion dong)…

Also, local governances have reduced and transferred 5.550 trillion dong in the budget spending for 2,048 projects. In which, 2.8 trillion dong is set from G-bond capital.

Minister Vo Hong Phuc told VnExpress that the reduction would bring total social investment from 40% of GDP to 38% of GDP in 2011. – Vietbiz24

Tags: EVN, PVN

Posted by VBN on Jun 27 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