Electricity Vietnam to increase generation by 16pct

Electricity of Vietnam said it plans to generate 112.6 billion kilowatt-hours of power in 2011, up 16 percent from a year earlier, and will buy more electricity from China in a bid to ease a shortage.

The power shortage was estimated at 6 billion kilowatt- hours in 2010, partly caused by dry weather during the year that resulted in low water levels at rivers and reduced hydropower output, according to a end of the year report from the company. The utility forecasts a shortfall of at least 3 billion kilowatt- hours during the dry season this year, it said.

“We will negotiate with China to increase our purchase of power as much as possible for the year,” Duong Quang Thanh, the deputy chief executive officer, said by phone today. The company last year bought about 5.6 billion kilowatt-hours from China, he said. The utility generated 97.3 billion kilowatt-hours in 2010, a 15 percent increase from 2009, according to the company’s report.

Electricity demand may rise about 15 percent as the economy expands, according to Thanh. Vietnam’s gross domestic product grew 6.8 percent last year, up from 5.3 percent in 2009. The government is aiming for increase of about 7 percent for 2011 GDP growth.

The utility is asking the government to provide guarantee to help it obtain loans from foreign banks as it will need at least 13 trillion dong ($667 million) to develop its power projects this year, according to the statement.

Electricity Vietnam has also asked the government to provide “assistance” as it plans to sell $1 billion of bonds abroad, according to the statement, without having a timeframe for the sale.

The company was in talks with some international banks to seek an adviser to help it sell up to $1 billion in overseas bonds in 2011, Mai Quoc Hoi, head of finance and accounting at the state-owned utility, said by phone in September. – Bloomberg

Tags: Vietnam electricity industry