Vietnam: PM asks EVN to clarify issues

Vietnam: PM asks EVN to clarify issues

Prime Minister Nguyen Xuan Phuc has asked Electricity of Viet Nam (EVN) to
clarify some issues, especially the results of its restructure. The message
was conveyed on Wednesday by a working group led by the Government Office
Vice Chairman Nguyen Cao Luc.

EVN was required to come up with solutions to accelerate progress of the
projects to ensure power supply for the economy.

Luc said in the National Assembly meeting in May, the PM asked the working
group to implement check-ups on some State-owned groups
including EVN on implementing their assigned tasks. In addition, the group
would review the implementation of the PM's Directive No 24 on key solutions
to achieve the growth rate target of 6.7 per cent this year.

He said EVN was asked to clarify its electricity production and distribution
while ensuring its growth rate of 11.5 per cent a year. It was also urged to
ensure electricity supply for the economy in general and the southern region
in particular to avoid power shortages. EVN needed to report measures
undertaken to achieve the set targets.

"Ensuring power supply has been one of solutions put forward to meet the
economy's growth rate target. However, there has been some overloading of
the power supply in 2017, causing instability for the system's operation. In
the four days of extremely hot weather at the beginning of last month, there
were up to 12,632 calls to EVN's call centre relating to power outages. EVN
should have solutions to prevent such a situation," he added.

The PM's message also noted that the group should review its operations at
hydropower plants and flood spillways to avoid adverse effects on people
downstream.

In addition, the group's investment in some projects that are part of the
Viet Nam Power Development Master Plan VII have been delayed due to
difficulties in arranging capital and construction administration.

EVN was required to come up with solutions to accelerate progress of the
projects to ensure power supply for the economy.

Figures from EVN's integrated financial report in 2015 showed that the group
held the leading position in term of debts in comparison with other
State-owned groups and corporations. Its loans have been mostly guaranteed
by the Government. A report from the Ministry of Finance revealed that EVN
in 2015 borrowed an additional US$2 billion, increasing the Government
guarantee level for the group to $49.7 billion so far.

"EVN should enhance capital utilisation effectiveness while diversifying
loans in foreign currencies to reduce exchange rate risks. The group should
report on solutions to reduce direct and indirect spending," the vice
chairman said.

EVN was assigned 153 tasks from the Government and the PM from October 1,
2016 to June 10, 2017. Of which, 129 tasks were completed while 24 are still
to be implemented.

The group therefore should put forward measures to ensure the progress of
the assigned tasks.

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Link to Original Article:
http://english.vietnamnet.vn/fms/business/180726/pm-asks-evn-to-clarify-issu
es.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com