Vietnam power giant plans to become powerful group
Vietnam Economy, 20/05/2003

Ha Noi, May 7 (VNA) - EVN, the largest national power producer and distributor, is restructuring itself into a consortium for stronger competition against regional and world rivals, said an EVN official.

EVN planned to shift its operation to the model of parent companies and affiliates. The affiliates would be either totally foreign-invested, liability limited or joint-stock companies. They will operate independently in terms of finance and economic ties between them will be based on economic contracts. however, looking towards to an early passage of the Electricity Bill as well as the birth of a power market to make the plan work.

Laws of electricity are necessary to create a legal framework for the development of the industry in general and pave way for the operation of an electricity market, emphasized the senior industrial official (now we have only electricity consumption)

The EVN has been carrying out sales contracts signed by the Vietnamese Government with the sub-Mekong regional governments of Laos , Thailand , Myanmar and China . Separate energy cooperation agreements with Laos and Cambodia have enabled the EVN to sell electricity to the two countries through medium-voltage power transmission grids. The EVN is also installing a 220-kv power grid for, the Cambodian capital, which is expected to be complete by 2005

EVN is now under negotiation with Laos about the purchase of electricity from the latter's Nammo electric power plant. It is to cooperate with a number of domestic companies to build an electric power plant in Laos , with electricity being transmitted to Viet Nam . EVN is also considering buying electricity from China .

The domestic demand for electricity rose 17 percent last year and 16 percent in the first four months of this year. It is estimated at 34.5 billion kWh for the full year of 2003 and is likely to rise further in the future. To meet the demand, EVN plans to build and expand 37 electric power plants with a combined capacity of 134,600 MW between now and 2010.

This year alone, EVN is expected to spend 20,000 billion VND on electricity development. Plants now under construction and planned for commission until 2005 include Phu My 2.2 (720 MW), Phu My 3 (720 MW), Phu My 4 (450 MW), expansion of the Uong Bi power plant (300 MW), Na Duong (100 MW) and Cao Ngan (100 MW).

Towards the year's end, EVN is scheduled to start up hydro-electric power plants such as Dai Ninh, A Vuong 1, Plei Krong and Buon Korp and thermo-electric power plants such as Hai Phong and O Mon. The projects will be carried out with domestic and foreign loans or under the form of joint ventures or partnerships, adding that EVN is working to equitise a number of power plants to mobilize capital for new investments. Other methods to muster funds are to issue bonds and establish electricity banks.

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