EVN licensed to operate in its non-core sectors

The Vietnamese Prime Minister has approved the organization and operation rules of the Electricity of Vietnam (EVN), accordingly the power group is allowed to operate under form of the state-owned one member limited company with a charter capital of more than 76.7 trillion dong.
EVN can operate in four major industries: producing, transmitting, distributing and trading electricity; monitoring the system of power production, transmission, distribution and allocation in national system; exporting and importing power; investing and managing investment capital of power projects; managing, repairing, maintaining, improving, and upgrading electrical equipments, power works.

Especially, EVN is allowed to invest in hotel, tourism, real estate business, office leasing, investment and infrastructure, industrial zone.

According to the approved rules, EVN has to ensure profitable business, develop state equity in itself and other enterprises.

Earlier, Dinh Quang Tri—Deputy General Director of EVN admitted that the group is burdening huge debts of up to 8 trillion dong coming from costs of petroleum, coal and high-cost power purchase contracts.

In addition, the group is suffering the loss of 17 trillion dong because of forex rate difference by December 31, 2010. Total capital EVN has invested in non-core fields is below 3% on its total capital, equaling to around 3 trillion dong.

On June 6, EVN re-asked another electricity price increase because of capital shortage for projects which are lagging. – Vietbiz24

Tags: EVN