Petrovietnam urges EVN to repay debt

The Vietnam National Oil and Gas Group (PetroVietnam) has asked the government to urge the Electricity of Vietnam (EVN) to repay its US $400 million debt to PetroVietnam timely.

In its written request to the government, PetroVietnam said its own foreign lenders are being worried about EVN’s VND8.2 trillion (US $400 million) debt.
They worry that if EVN doesn’t repay its debt to PetroVietnam, PetroVietnam won’t be able to repay its own debts to them, PetroVietnam said.

EVN’s debt to PetroVietnam includes VND7.7 trillion in electricity bills owed to PetroVietnam’s thermal power plants and VND422 billion of interest, said PetroVietnam in its request to the government.

In addition, EVN has yet repaid the VND895 billion it owes for running two thermal power plants of PetroVietnam, Ca Mau 1 and 2, from 2007-2009.

PetroVietnam has also sent a written request directly to EVN, stressing that the longer EVN prolongs its debt, the more difficult it will be for PetroVietnam’s member companies as well as fuel suppliers, maintenance service providers and lenders of PetroVietnam.

PetroVietnam isn’t the first one to send a request to the government about EVN’s debt.

Earlier, other creditors of EVN such as the National Coal and Mineral Industries Group (Vinacomin) and Ho Chi Minh City-based Hiep Phuoc Power Co. which sells electricity to EVN also submitted formal complaints to the government about EVN’s debts.

EVN owes Vinacomin about VND1.6 trillion. Hiep Phuoc Power Co. has also threatened to cut its power supply if EVN doesn’t repay its $36 million debt timely. – Tuoitre

Tags: EVN, PetroVietnam