EVN’s real debts estimated at over 9tr dong

Electricity of Vietnam (EVN) has recently admitted its total debts at 6.6 trillion dong at Vietnam National Oil and Gas Group (PetroVietnam-PVN) and Vietnam National Coal and Minerals Industry Group (Vinacomin) and it may be unable to repay these debts.

However, according to the information from Saigon Tiep Thi newspaper, EVN’s real debts at these groups till the end of April 2011 were estimated at above nine trillion dong.

In particularly, EVN’s debt at PetroVietnam Power Corp (under PetroVietnam-PVN) is estimated at nearly 5.16 trillion dong, its debt at offshoots of Vinacomin at over 552 billion dong and its debt at other electricity firms at nearly 3.36 trillion dong.

These debts exclude the debt for coal purchase at Vinacomin, and actually, EVN’s owe at Vinacomin is much higher than the reported figure. Saigon Tiep Thi newspaper cited information from Vinacomin showed EVN’s total debts at Vinacomin’s subsidiaries are over 1.5 trillion dong.

According to Dinh Quang Tri, EVN’s deputy general director, in 2010 EVN posted a loss of over eight trillion dong.

Most recently, EVN has proposed to borrow capital from the state budget for its debt repayment purpose to creditors and will use its revenue from electricity price rise to pay for this loan.

EVN also proposed the prime minister to direct PVN and Vinacomin to continuously supply coal, oil and gas to serve the electricity production and share financial difficulties with EVN by giving an extension for its debt repayment. – Vietbiz24

Posted by VBN on May 5 2011. Filed under Energy. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry