VEA seeks preferential loans for EVN

Vietnam Energy Association (VEA) has recently proposed to the general Secretary, State President, prime minister and Chair of National Assembly on solving the pace of approved energy, power, coal and oil and gas projects, according to the local newswire VnExpress on September 18.
According to VEA, in fact, the pace of most power projects such as Nhon Trach 2, Hai Phong 1, 2, Quang Ninh 1 and Duyen Hai has been delayed because of weak capacity, inexperience and finance issues of contractors.

VEA said that the provisions on allowing maximum lending 15 percent of equity for each enterprise and the short term capital use ratio for long-term loans at maximum 30 percent have impacted the capital mobilisation of commercial banks for energy projects, especially key projects that are scheduled for long-term construction.

Therefore, VEA proposed the government to allow Electricity of Vietnam (EVN) to sign commercial loans and soft loans with suitable lending interest rate to invest in its power without appraisal and collateral, at the same time expand the domestic soft loans for all power projects.

In addition, according to VEA, Chinese contracts will be allowed to join support sections only when they win bidding contracts as prescribed. In tenders, financial capacity and experience should be given priorities rather than auctions as in the past.

VEA stressed that it is necessary to encourage contractors and investors in the group of G7 countries and EU to strongly develop coal-fired thermo power sources. When these foreign investors investing in Vietnam under the form of BOT (build-operatetransfer), BOO (Build-Own-Operate) and IPP, if they have enough capacity, experience, and finance, it will be better to choose investors from developed countries.

Tags: EVN

Posted by VBN on Sep 19 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