Power Company No. 1 and Ha Thanh Securities signed a comprehensive strategic cooperation agreement on Aug. 30.
Under the agreement, the power company will contribute capital to Ha Thanh Securities, while Ha Thanh is expected to pour capital in power transmission, real estate and finance services projects invested by Power company No. 1.
Ha Thanh will become a partner in providing outline consultation for equitisation, share issuance, shareholder management and other services as the power company carries out its equitisation.
The power company will work with Ha Thanh to open transaction units and stock order agents at the power company’s several locations.
The General Director of Electricity of Viet Nam (EVN), Pham Le Thanh, said that the agreement aimed to fully utilise the two companies’ potential.
Cooperation enhancement between Ha Thanh Securities and Power Company No. 1 is regarded as the first step in the development of EVN’s multi-sectoral economic growth.
Source: VNA
Showing posts with label Energy. Show all posts
Showing posts with label Energy. Show all posts
Friday, August 31, 2007
Tuesday, July 31, 2007
Vinh Son - Song Hinh power firm to sell 12.5 mln new shares
Vinh Son-Song Hinh Hydro Power Plant Company (VSH), one of Vietnam's top 10 largest listed firms, said on Tuesday it has won permission to issue 12.5 million new shares to existing shareholders to boost capital.
The firm would issue the shares in a 10-for-1 scheme within 90 days from Monday, when it received the licence from the State Securities Commission, the stock market watchdog said in a statement.
"We are working to finalise the list of shareholders and the issue this time would be for them," a company spokesman said from the central province of Binh Dinh where the firm is located.
Shareholders agreed in May that the firm would issue 25 million new shares in two tranches this year to boost its registered capital and raise funds for new projects, a company report said without giving details of the projects.
The first issue envisaged the company selling 12.5 million shares to existing shareholders at 70 percent of the average share price during the 20 trading days prior to making the shareholder list.
In the second issue, not yet licensed by the State Securities Commission, Vinh Son-Song Hinh would sell 12.5 million shares to strategic investors or, failing that, it could sell the shares to existing shareholders, the report said.
Shares in Vinh Son-Song Hinh were down 4.63 percent at 51,500 dong ($3.2) at 0249 GMT on Tuesday. The firm was valued at $400 million.
Vinh Son-Song Hinh runs two hydro power plants, the 66-megawatt Vinh Son plant and the 70-megawatt Song Hinh plant, in Binh Dinh province, 645 km (400 miles) north of Ho Chi Minh City.
Last month, the government gave it approval to build a 90-megawatt hydro power plant in the area between Binh Dinh province and the central highland province of Gia Lai.
An increase in the number of private businesses and a rise in disposable incomes have spurred growth in electricity demand to around 15 percent annually in recent years, driving the communist government to plan 60 additional power plants by 2020.
Dominant utility Vietnam Electricity group, which owns 60 percent of the firm, is building 20 plants.
Vinh Son-Song Hinh's net profit in the first six months of this year nearly halved from 200 billion dong in the same period last year to 104.6 billion dong ($6.5 million) after dry weather early this year disrupted hydro-power generation.
Source: Reuters
The firm would issue the shares in a 10-for-1 scheme within 90 days from Monday, when it received the licence from the State Securities Commission, the stock market watchdog said in a statement.
"We are working to finalise the list of shareholders and the issue this time would be for them," a company spokesman said from the central province of Binh Dinh where the firm is located.
Shareholders agreed in May that the firm would issue 25 million new shares in two tranches this year to boost its registered capital and raise funds for new projects, a company report said without giving details of the projects.
The first issue envisaged the company selling 12.5 million shares to existing shareholders at 70 percent of the average share price during the 20 trading days prior to making the shareholder list.
In the second issue, not yet licensed by the State Securities Commission, Vinh Son-Song Hinh would sell 12.5 million shares to strategic investors or, failing that, it could sell the shares to existing shareholders, the report said.
Shares in Vinh Son-Song Hinh were down 4.63 percent at 51,500 dong ($3.2) at 0249 GMT on Tuesday. The firm was valued at $400 million.
Vinh Son-Song Hinh runs two hydro power plants, the 66-megawatt Vinh Son plant and the 70-megawatt Song Hinh plant, in Binh Dinh province, 645 km (400 miles) north of Ho Chi Minh City.
Last month, the government gave it approval to build a 90-megawatt hydro power plant in the area between Binh Dinh province and the central highland province of Gia Lai.
An increase in the number of private businesses and a rise in disposable incomes have spurred growth in electricity demand to around 15 percent annually in recent years, driving the communist government to plan 60 additional power plants by 2020.
Dominant utility Vietnam Electricity group, which owns 60 percent of the firm, is building 20 plants.
Vinh Son-Song Hinh's net profit in the first six months of this year nearly halved from 200 billion dong in the same period last year to 104.6 billion dong ($6.5 million) after dry weather early this year disrupted hydro-power generation.
Source: Reuters
Friday, July 27, 2007
Blackouts expected as electrical capacity fizzles
Intermittent blackouts are likely to hit the country from now to mid-September because of the nation’s lower-than-usual electricity capacity, according to the National Electricity Dispatch Centre.
Allowing for maintenance work and anti-flooding measures affecting the country’s largest hydroelectric plant, Hoa Binh, Viet Nam’s electricity capacity will remain between 10,200 – 10,500MW, the centre said.
In another development, Ha Noi’s People’s Committee on Monday asked local agencies, offices and city lighting operators to make concerted efforts to save energy.
Suggestions include setting air conditioners in offices at not less than 25 degrees Celsius and turning them off 30 minutes before working hours are up or if there’s nobody in the office.
Also, when replacing lights or installing new ones, businesses and streetlight maintainers must use saving-energy light bulds.
Streetlights can only be turned on according to existing regulations.
The electricity sector will meet national demand by 2009 if all its projects run according to schedule, Deputy Minister of Industry Bui Xuan Khu has said.
Hundreds of electricity power plants are currently operating in Viet Nam, including 34 with capacity of more than 100 MW, but to achieve the 20 per cent growth rate approved by the Prime Minister the sector must pump out an additional 3,800 MW to the tune of US$4 billion in investment, Khu said.
To this end, the sector should equitise its plants and use the capital to invest in the sector, the deputy added.
"The price of electricity needs to be hiked so money can be channelled back into the plants," Khu said.
A plan to establish a public electricity fund to support poor households was also underway, the deputy said, adding the ministry would submit funds to the Government at the year end.
About 6 per cent of households in Viet Nam today live without electricity, mostly in remote and mountainous areas.
The Government plan to make electricity accessible nationwide by 2010.
Source: VNS
Allowing for maintenance work and anti-flooding measures affecting the country’s largest hydroelectric plant, Hoa Binh, Viet Nam’s electricity capacity will remain between 10,200 – 10,500MW, the centre said.
In another development, Ha Noi’s People’s Committee on Monday asked local agencies, offices and city lighting operators to make concerted efforts to save energy.
Suggestions include setting air conditioners in offices at not less than 25 degrees Celsius and turning them off 30 minutes before working hours are up or if there’s nobody in the office.
Also, when replacing lights or installing new ones, businesses and streetlight maintainers must use saving-energy light bulds.
Streetlights can only be turned on according to existing regulations.
The electricity sector will meet national demand by 2009 if all its projects run according to schedule, Deputy Minister of Industry Bui Xuan Khu has said.
Hundreds of electricity power plants are currently operating in Viet Nam, including 34 with capacity of more than 100 MW, but to achieve the 20 per cent growth rate approved by the Prime Minister the sector must pump out an additional 3,800 MW to the tune of US$4 billion in investment, Khu said.
To this end, the sector should equitise its plants and use the capital to invest in the sector, the deputy added.
"The price of electricity needs to be hiked so money can be channelled back into the plants," Khu said.
A plan to establish a public electricity fund to support poor households was also underway, the deputy said, adding the ministry would submit funds to the Government at the year end.
About 6 per cent of households in Viet Nam today live without electricity, mostly in remote and mountainous areas.
The Government plan to make electricity accessible nationwide by 2010.
Source: VNS
AB Bank to be PC1's one and only
An Binh Joint Stock Commercial Bank (AB Bank) will act as the primary provider of financial services for Power Company No1 (PC1) under an agreement signed yesterday in the capital.
"I do believe that this co-operation will bring more opportunities for both of us in terms of supporting investment capital, expanding operational networks, diversifying business sectors and exploiting each other’s advantages," said AB Bank general director Luu Duc Khanh.
The bank will provide PC1 a credit limit of VND300 billion (US$18.75 million). AB Bank will lend staff of PC1 money to buy shares in the power company and its subsidiaries. The bank will also provide home and car loans to workers.
In return, PC1 could open letter credit at AB Bank with an underwriting investment limit of $17 million.
The power company will help AB Bank to set up an operational network in all the provinces the firm covers. The bank expects to open more 12 offices nation-wide by the end this year.
"The economic alliance is in line with the new development trend of economic integration. I hope with this co-operation, we will together enhance our positions in the local market," said director of PC1 Nguyen Phuc Vinh.
Source: VNS
"I do believe that this co-operation will bring more opportunities for both of us in terms of supporting investment capital, expanding operational networks, diversifying business sectors and exploiting each other’s advantages," said AB Bank general director Luu Duc Khanh.
The bank will provide PC1 a credit limit of VND300 billion (US$18.75 million). AB Bank will lend staff of PC1 money to buy shares in the power company and its subsidiaries. The bank will also provide home and car loans to workers.
In return, PC1 could open letter credit at AB Bank with an underwriting investment limit of $17 million.
The power company will help AB Bank to set up an operational network in all the provinces the firm covers. The bank expects to open more 12 offices nation-wide by the end this year.
"The economic alliance is in line with the new development trend of economic integration. I hope with this co-operation, we will together enhance our positions in the local market," said director of PC1 Nguyen Phuc Vinh.
Source: VNS
Wednesday, July 18, 2007
Pha Lai power plant H1 profit up 11%
Pha Lai Thermal Power Co. (PPC), Vietnam's third-largest listed firm, said on Wednesday its first-half net profit rose nearly 11 percent from a year earlier to 562.8 billion dong ($34 million).
The power plant operator said in a statement released through the Ho Chi Minh Stock Exchange its revenues jumped nearly 18 percent from the first half of last year to 2.05 trillion dong ($127 million).
Officials of dominant utility Vietnam Electricity, the largest share holder in Pha Lai, have forecast power consumption would rise up to 20 percent this year with the domestic economy expected to grow 8.5 percent.
Pha Lai operates two plants in the northern province of Hai Duong, 65 km (40 miles) east of Hanoi, with a combined capacity of 1,040 megawatts. They produce nearly 6 billion kilowatt hours of electricity per year, 10 percent of Vietnam's total.
Shares in Pha Lai fell 0.83 percent to 59,500 dong ($3.7) on Wednesday, valuing the firm at $1.15 billion, the third largest on the Ho Chi Minh exchange after top dairy product maker Vinamilk (VNM) and IT firm FPT.
Source: Reuters
The power plant operator said in a statement released through the Ho Chi Minh Stock Exchange its revenues jumped nearly 18 percent from the first half of last year to 2.05 trillion dong ($127 million).
Officials of dominant utility Vietnam Electricity, the largest share holder in Pha Lai, have forecast power consumption would rise up to 20 percent this year with the domestic economy expected to grow 8.5 percent.
Pha Lai operates two plants in the northern province of Hai Duong, 65 km (40 miles) east of Hanoi, with a combined capacity of 1,040 megawatts. They produce nearly 6 billion kilowatt hours of electricity per year, 10 percent of Vietnam's total.
Shares in Pha Lai fell 0.83 percent to 59,500 dong ($3.7) on Wednesday, valuing the firm at $1.15 billion, the third largest on the Ho Chi Minh exchange after top dairy product maker Vinamilk (VNM) and IT firm FPT.
Source: Reuters
Tuesday, July 17, 2007
Power capacity rose by 8,000 MW only in the last 10 years
Not attaining the goals set before in the General Map on Electricity Development, the power capacity rose by 8,000 MW only in the last 10 years, causing the prolonged electricity shortage.
From 1996 to now, Vietnam has had two general maps on electricity development, the map for 1996-2000 with the vision to 2010, and the map for 2001-2010 with the vision to 2020, called General Map IV and V
The General Map IV approved by the Prime Minister in 1997 stated that the electricity supply was very tight, and that any delay in power plant construction would certainly lead to power cuts and shortages. Therefore, in the 1996-2010 period, Vietnam planned to have 15,261 more MW of electricity, which would help raise the total capacity of power plants in Vietnam to 19,000 MW, including 9,000 MW of hydropower plants, or 47%, while thermopower and gas turbine-run plants would account for 53% of total capacity.
However, in fact, the total electricity capacity has reached 12,200 MW only, while the usable capacity is 10,200 MW. The electricity capacity was 4,435 MW in 1996, which spells that only 8,000 MW of electricity capacity has been added in the last 10 years.
The problem was in the delay in the implementation of power plant projects
Under the General Map IV, the 300 MW Electricity Generating Unit No 1 of Quang Ninh Thermopower Plant should have been put into operation in 1999-2000, however, the project has not been completed up to now.
The project on 300 MW Dai Ninh Hydropower Plant was initially scheduled to become operational in 2000 or 2002, but the construction of the plant was only started in 2003, and will only become operational in 2008.
The General Map V stated that during 2001-2010, Vietnam needs to upgrade and build 37 power plants with the total capacity of 12,400 MW, including 22 hydropower plants with the capacity of 4,000 MW, eight gas-run thermopower plants (5,200 MW) and seven coal-run thermopower plants (3,200 MW).
With such a development programme, by 2010, the total capacity of power plants in Vietnam is expected to reach 20,500 MW, ensuring the demand for additional power at 16,033 MW. However, as said before, the total capacity is now just at 12,200 MW with no provided capacity.
The expanded Uong Bi thermopower plant, was initially planned to begin operating in 2005, but it is now still in the experimental period. Officials still argue about the location for setting up the 300 MW Ninh Binh thermopower plant, while it was planned to become operational in 2007. The project on the 600 MW Hai Phong thermopower plant, which was previously planned to operate in 2006-2007, remains on paper.
As a lot of power plants have not been built as planned, the only measure to deal with the electricity shortage now is cutting power.
Source: VNE
From 1996 to now, Vietnam has had two general maps on electricity development, the map for 1996-2000 with the vision to 2010, and the map for 2001-2010 with the vision to 2020, called General Map IV and V
The General Map IV approved by the Prime Minister in 1997 stated that the electricity supply was very tight, and that any delay in power plant construction would certainly lead to power cuts and shortages. Therefore, in the 1996-2010 period, Vietnam planned to have 15,261 more MW of electricity, which would help raise the total capacity of power plants in Vietnam to 19,000 MW, including 9,000 MW of hydropower plants, or 47%, while thermopower and gas turbine-run plants would account for 53% of total capacity.
However, in fact, the total electricity capacity has reached 12,200 MW only, while the usable capacity is 10,200 MW. The electricity capacity was 4,435 MW in 1996, which spells that only 8,000 MW of electricity capacity has been added in the last 10 years.
The problem was in the delay in the implementation of power plant projects
Under the General Map IV, the 300 MW Electricity Generating Unit No 1 of Quang Ninh Thermopower Plant should have been put into operation in 1999-2000, however, the project has not been completed up to now.
The project on 300 MW Dai Ninh Hydropower Plant was initially scheduled to become operational in 2000 or 2002, but the construction of the plant was only started in 2003, and will only become operational in 2008.
The General Map V stated that during 2001-2010, Vietnam needs to upgrade and build 37 power plants with the total capacity of 12,400 MW, including 22 hydropower plants with the capacity of 4,000 MW, eight gas-run thermopower plants (5,200 MW) and seven coal-run thermopower plants (3,200 MW).
With such a development programme, by 2010, the total capacity of power plants in Vietnam is expected to reach 20,500 MW, ensuring the demand for additional power at 16,033 MW. However, as said before, the total capacity is now just at 12,200 MW with no provided capacity.
The expanded Uong Bi thermopower plant, was initially planned to begin operating in 2005, but it is now still in the experimental period. Officials still argue about the location for setting up the 300 MW Ninh Binh thermopower plant, while it was planned to become operational in 2007. The project on the 600 MW Hai Phong thermopower plant, which was previously planned to operate in 2006-2007, remains on paper.
As a lot of power plants have not been built as planned, the only measure to deal with the electricity shortage now is cutting power.
Source: VNE
Friday, July 13, 2007
Power shortage seen less severe than expected
State utility Electricity of Vietnam (EVN) has said a shortage of electricity would not be as severe as earlier forecast for it has found solutions to deal with a reduction in gas supply for a major southern power complex.
The Nam Con Son Pipeline was suspended from Monday as scheduled and the down-time lasts eight days under a plan to install a new air compressor for the platform in offshore Block 06.1 off the coast of Vung Tau City.
The suspension of gas supply was earlier believed to cause a serious power shortage as Phu My 1, Phu My 3 and Phu My 2.2 power stations with a combined output capacity of 4,000MW in the Phu My power complex in Ba Ria-Vung Tau Province run on gas supplied by the Nam Con Son project.
In a report, the electricity supply regulator AO of EVN forecast the power shortage in the daytime would reach 1,000MW a day.
However, Ngo Son Hai, deputy director of AO, said the office had asked local electricity companies to practice thrift. EVN will make the most of power stations that will switch from running on gas to diesel oil.
AO experts have forecast a power shortage of around 400MW in peak hours.
During the downtime of Block 06.1, Dinh Co gas terminal will not be shut down but the gas flow will be reduced. Therefore, some small-scale power plants with a total generation capacity of 1,000MW are continuing running on gas and other power plants with a total capacity of 3,000MW in cities and provinces will be fueled by diesel oil, Hai explained.
Hai stressed that if EVN effectively practiced electricity savings, it could ensure sufficient power supply.
EVN also plans standby solutions to deal with all possible contingencies to limit electricity cuts. In case of a huge power shortage, EVN will cut electricity supply for household users to ensure sufficient power for the manufacturing sector.
Block 06.1 is scheduled to close three times - July 9-14, August 29-September 6, and September 29-30.
According to BP, the operator of the Nam Con Son Pipeline project, Block 06.1 will be suspended for 14 days in September but the Nam Con Son Pipeline would be down for only eight days, and after eight days, the pipeline would potentially continue transportation of a maximum of 2.7mil cubic meters of gas a day from KNOC's Block 11.2.
Lan Tay and Lan Do gas fields in Block 06.1 that are being tapped by India's ONGC with a 45% stake, BP Vietnam (35%) and PetroViemam (20%) can supply an average three billion cubic meters of gas a year for the Phu My power complex over 20 years to produce 12bil kWh a year, 40% of the current national demand.
Source: VNE
The Nam Con Son Pipeline was suspended from Monday as scheduled and the down-time lasts eight days under a plan to install a new air compressor for the platform in offshore Block 06.1 off the coast of Vung Tau City.
The suspension of gas supply was earlier believed to cause a serious power shortage as Phu My 1, Phu My 3 and Phu My 2.2 power stations with a combined output capacity of 4,000MW in the Phu My power complex in Ba Ria-Vung Tau Province run on gas supplied by the Nam Con Son project.
In a report, the electricity supply regulator AO of EVN forecast the power shortage in the daytime would reach 1,000MW a day.
However, Ngo Son Hai, deputy director of AO, said the office had asked local electricity companies to practice thrift. EVN will make the most of power stations that will switch from running on gas to diesel oil.
AO experts have forecast a power shortage of around 400MW in peak hours.
During the downtime of Block 06.1, Dinh Co gas terminal will not be shut down but the gas flow will be reduced. Therefore, some small-scale power plants with a total generation capacity of 1,000MW are continuing running on gas and other power plants with a total capacity of 3,000MW in cities and provinces will be fueled by diesel oil, Hai explained.
Hai stressed that if EVN effectively practiced electricity savings, it could ensure sufficient power supply.
EVN also plans standby solutions to deal with all possible contingencies to limit electricity cuts. In case of a huge power shortage, EVN will cut electricity supply for household users to ensure sufficient power for the manufacturing sector.
Block 06.1 is scheduled to close three times - July 9-14, August 29-September 6, and September 29-30.
According to BP, the operator of the Nam Con Son Pipeline project, Block 06.1 will be suspended for 14 days in September but the Nam Con Son Pipeline would be down for only eight days, and after eight days, the pipeline would potentially continue transportation of a maximum of 2.7mil cubic meters of gas a day from KNOC's Block 11.2.
Lan Tay and Lan Do gas fields in Block 06.1 that are being tapped by India's ONGC with a 45% stake, BP Vietnam (35%) and PetroViemam (20%) can supply an average three billion cubic meters of gas a year for the Phu My power complex over 20 years to produce 12bil kWh a year, 40% of the current national demand.
Source: VNE
Thursday, July 12, 2007
Opinions differ on power trading company project
The Department of Electricity Regulation under the Industry Ministry on July 10 convened relevant ministries and agencies to discuss the project to establish a power trading company (PTC) initiated by the Electricity of Vietnam (EVN) group.
The group has submitted to the Government its project to set up a PTC under the mode of a joint-stock company, which, it stressed, will be independent from EVN.
According to the Department of Electricity Regulation’s viewpoint, the establishment of a PTC is necessary for forming a competitive power market by 2009. However, it said the PTC must ensure the power supply at rational prices, while also attracting investment.
Both the Finance Ministry and the Energy Department of the Industry Ministry are concerned of the establishment of the suggested PTC model in the context that there is still the pressure on power prices and legal documents have not been uniform.
Representatives from the Government Office stressed the Government could not subsidise the PTC in any forms, particularly after Vietnam’s joining the World Trade Organisation.
All the viewpoints from relevant ministries and agencies will be collected to be submitted to the Industry Minister and the Prime Minister within July.
Source: VNE
The group has submitted to the Government its project to set up a PTC under the mode of a joint-stock company, which, it stressed, will be independent from EVN.
According to the Department of Electricity Regulation’s viewpoint, the establishment of a PTC is necessary for forming a competitive power market by 2009. However, it said the PTC must ensure the power supply at rational prices, while also attracting investment.
Both the Finance Ministry and the Energy Department of the Industry Ministry are concerned of the establishment of the suggested PTC model in the context that there is still the pressure on power prices and legal documents have not been uniform.
Representatives from the Government Office stressed the Government could not subsidise the PTC in any forms, particularly after Vietnam’s joining the World Trade Organisation.
All the viewpoints from relevant ministries and agencies will be collected to be submitted to the Industry Minister and the Prime Minister within July.
Source: VNE
Wednesday, July 11, 2007
Banks and a finance group lend $156 mln for hydroelectricity plant
All four state-owned banking giants in Vietnam and a financial institution have joined hands to provide VND2.5 trillion (US$156 million) for building a hydropower plant in the northern Son La province.
Following credit deals signed Tuesday, the Industrial and Commercial Bank of Vietnam, the Bank for Investment and Development of Vietnam, Asia Commercial Bank, Military Bank and PetroVietnam Finance Co will provide VND1.92 trillion in long-term loans.
The rest will be provided as working capital by the Bank for Foreign Trade of Vietnam.
The Nam Chien Hydroelectricity Plant will be built at a cost of VND4.17 trillion Nam Chien company in Muong La district.
The 200MW plant will be ready by 2009 or 2010 at the latest.
Power demand is increasing by 20 percent a year while the state-run Electricity of Vietnam has said generation will grow by less than 15 percent.
In recent years the government has adopted priority policies to attract investors in the power sector.
The Ministry of Planning and Investment said several mammoth electricity projects involving investments of billions of dollars by foreign companies were awaiting approval.
In the north, the US’s AES and Vietnam Coal and Mineral Industries Group plan to build the 1,200 MW Mong Duong 2 thermal power plant at a cost of $1.4 billion in Quang Ninh province.
While Japan’s Sumitomo Corp., which has more than 25 projects in Vietnam, is planning to build a 2,640 MW, $4 billion power plant in Khanh Hoa province, in central Vietnam.
In the south, the US’s Cannon Group is seeking to build a 1,000 MW power plant in Dong Nai province, while Singapore’s leading power and integrated utilities firm, SembCorp Utilities Pte. Ltd., looks set to invest $500 million to build a 700 MW plant in Ho Chi Minh City.
Power demand in Vietnam's economy, the world's fastest growing after China, is forecast to grow up to 17 percent per year, driving the government to plan the construction of 60 additional plants by 2020.
Source: Thanh Nien
Following credit deals signed Tuesday, the Industrial and Commercial Bank of Vietnam, the Bank for Investment and Development of Vietnam, Asia Commercial Bank, Military Bank and PetroVietnam Finance Co will provide VND1.92 trillion in long-term loans.
The rest will be provided as working capital by the Bank for Foreign Trade of Vietnam.
The Nam Chien Hydroelectricity Plant will be built at a cost of VND4.17 trillion Nam Chien company in Muong La district.
The 200MW plant will be ready by 2009 or 2010 at the latest.
Power demand is increasing by 20 percent a year while the state-run Electricity of Vietnam has said generation will grow by less than 15 percent.
In recent years the government has adopted priority policies to attract investors in the power sector.
The Ministry of Planning and Investment said several mammoth electricity projects involving investments of billions of dollars by foreign companies were awaiting approval.
In the north, the US’s AES and Vietnam Coal and Mineral Industries Group plan to build the 1,200 MW Mong Duong 2 thermal power plant at a cost of $1.4 billion in Quang Ninh province.
While Japan’s Sumitomo Corp., which has more than 25 projects in Vietnam, is planning to build a 2,640 MW, $4 billion power plant in Khanh Hoa province, in central Vietnam.
In the south, the US’s Cannon Group is seeking to build a 1,000 MW power plant in Dong Nai province, while Singapore’s leading power and integrated utilities firm, SembCorp Utilities Pte. Ltd., looks set to invest $500 million to build a 700 MW plant in Ho Chi Minh City.
Power demand in Vietnam's economy, the world's fastest growing after China, is forecast to grow up to 17 percent per year, driving the government to plan the construction of 60 additional plants by 2020.
Source: Thanh Nien
Friday, June 29, 2007
EVN mulls blackouts for July
Vietnam’s State-run electricity provider is considering rolling blackouts next month when it is scheduled to shut down a major oil field for maintenance, company officials announced this week.
Electricity of Vietnam could cut off power to homes for one to two hours a day during periods of high demand, said Ngo Son Hai, deputy director of the company’s National Electricity Dispatching Centre.
The company used rolling blackouts in May to contend with another shortage. The latest conservation efforts could stretch into September, Hai said.
The power company is scheduled to close down the Nam Con Son oil field in three stages; from July 1 to 6, August 29 to September 16 and finally September 20 to 30. The maintenance was planned one year ago.
The field provides fuel for generators at the Phu My power complex, which produces 4,000 MW, one-third of the country’s total production. Electricity of Vietnam is expecting a shortfall of almost 1,000MW.
Thermo-electric plants in the north, including those in Pha Lai and Uong Bi, would also be closed for maintenance, adding to the shortage, Hai said. The hot July temperatures also cause hydro-electric reservoirs to evaporate.
Electricity of Vietnam planned to increase the amount of power it buys from China, adjust its maintenance schedule and maximising output at other plants, Hai said.
The company was guarding against shortages at hospitals, schools, military bases and other public security institutions, he said.
The announcement of blackouts was met with disapproval by-homeowners and agencies like the Vietnam Electrical Industry Association, which criticised the timing of the maintenance at Nam Con Son.
The work comes as water levels are as their lowest and as thousands of students take university entrance exams.
Source: VNE
Electricity of Vietnam could cut off power to homes for one to two hours a day during periods of high demand, said Ngo Son Hai, deputy director of the company’s National Electricity Dispatching Centre.
The company used rolling blackouts in May to contend with another shortage. The latest conservation efforts could stretch into September, Hai said.
The power company is scheduled to close down the Nam Con Son oil field in three stages; from July 1 to 6, August 29 to September 16 and finally September 20 to 30. The maintenance was planned one year ago.
The field provides fuel for generators at the Phu My power complex, which produces 4,000 MW, one-third of the country’s total production. Electricity of Vietnam is expecting a shortfall of almost 1,000MW.
Thermo-electric plants in the north, including those in Pha Lai and Uong Bi, would also be closed for maintenance, adding to the shortage, Hai said. The hot July temperatures also cause hydro-electric reservoirs to evaporate.
Electricity of Vietnam planned to increase the amount of power it buys from China, adjust its maintenance schedule and maximising output at other plants, Hai said.
The company was guarding against shortages at hospitals, schools, military bases and other public security institutions, he said.
The announcement of blackouts was met with disapproval by-homeowners and agencies like the Vietnam Electrical Industry Association, which criticised the timing of the maintenance at Nam Con Son.
The work comes as water levels are as their lowest and as thousands of students take university entrance exams.
Source: VNE
Wednesday, June 20, 2007
Itaco to invest $47 mln in engineering firms
Vietnam's Tan Tao Industrial Park Corp (Itaco) said on Wednesday it will invest $47 million for majority stakes in two engineering firms that focus on power plant construction and irrigation projects.
The group said in a statement published by the Ho Chi Minh Stock Exchange it would pay $32 million for a 51-percent stake in the Long An province-based ITA-Power and $15 million for a 50-percent stake in North-West Power JSC in Lai Chau province.
North-West Power JSC has already won a contract to build a 70-megawatt hydro power plant in Lai Chau, the group said.
Itaco, which is the first industrial park developer listed in Vietnam, has been operating the Tan Tao industrial park in Ho Chi Minh City, Vietnam's business centre, since 1997.
In addition to expansion into the energy sector, Itaco is also branching out into highway and residential property development and has two projects in the pipeline in the southern province of Long An worth a total $59 million.
Shares in Itaco closed unchanged on Wednesday at 141,000 dong ($8.75), valuing the company at $525 million.
Source: Thanh Nien
The group said in a statement published by the Ho Chi Minh Stock Exchange it would pay $32 million for a 51-percent stake in the Long An province-based ITA-Power and $15 million for a 50-percent stake in North-West Power JSC in Lai Chau province.
North-West Power JSC has already won a contract to build a 70-megawatt hydro power plant in Lai Chau, the group said.
Itaco, which is the first industrial park developer listed in Vietnam, has been operating the Tan Tao industrial park in Ho Chi Minh City, Vietnam's business centre, since 1997.
In addition to expansion into the energy sector, Itaco is also branching out into highway and residential property development and has two projects in the pipeline in the southern province of Long An worth a total $59 million.
Shares in Itaco closed unchanged on Wednesday at 141,000 dong ($8.75), valuing the company at $525 million.
Source: Thanh Nien
Monday, June 18, 2007
EVN and PetroVietnam join forces
PetroVietnam and fellow State-owned conglomerate Electricity of Viet Nam signed an agreement on investment in electricity projects.
Under the contract, PetroVietnam and EVN will invest in power plants in the province of Dong Nai, Vinh Tan, and in Laos and Cambodia.
The corporations will also invest in a five-star restaurant, commercial centre and 80-storey tower in My Dinh along with a host of other domestic projects.
They also plan to work together on power and oil projects in Venezuela and Cuba, said deputy general director of EVN Vu Quang Nam.
Source: VNS
Under the contract, PetroVietnam and EVN will invest in power plants in the province of Dong Nai, Vinh Tan, and in Laos and Cambodia.
The corporations will also invest in a five-star restaurant, commercial centre and 80-storey tower in My Dinh along with a host of other domestic projects.
They also plan to work together on power and oil projects in Venezuela and Cuba, said deputy general director of EVN Vu Quang Nam.
Source: VNS
Saturday, June 16, 2007
Electricity, Oil and Gas Corporation make debut
The Viet Nam National Oil and Gas Group (PetroVietnam) rolled out a new subsidiary energy services company in Ha Noi, on June 15.
The Electricity, Oil and Gas Corporation has registered capital of 7.6 trillion VND and will be active in electricity production and services, investment in electricity projects, imports and exports of energy and materials.
Le Hong Tinh, General Director of the Electricity, Oil and Gas Corporation, said that the corporation is aiming to eventually churn out about 30-40% of the country’s total electrical output.
Source: VNA
The Electricity, Oil and Gas Corporation has registered capital of 7.6 trillion VND and will be active in electricity production and services, investment in electricity projects, imports and exports of energy and materials.
Le Hong Tinh, General Director of the Electricity, Oil and Gas Corporation, said that the corporation is aiming to eventually churn out about 30-40% of the country’s total electrical output.
Source: VNA
Friday, June 15, 2007
EVN to form finance arm for debt issues
Vietnam Electricity, the country's dominant power utility, plans to establish a financial company to raise funds for energy investments by issuing bonds and other securities.
The new unlisted group, to be named Electricity Finance Joint Stock Company, will be established this month provided it wins approval from the central bank, Vietnam Electricity said in a statement.
"The company will issue corporate bonds to serve investment needs of the power sector. It will also issue bonds, certificates of deposit and other papers to raise funds from domestic and foreign sources," the statement said.
Vietnam Electricity executives have said the Hanoi-based group needed $3 billion to $4 billion per year in the next three years to build power plants and a grid network to meet soaring demand fuelled by Vietnam's rapid economic growth.
The group plans to issue VND8 trillion of bonds this year, up from last year's VND6 trillion.
The new firm will have an initial capital of VND3 trillion ($186 million), Vietnam Electricity said.
The group will own 90 percent of its financial arm while the remaining 10% will be split between partly private An Binh Bank and Toan Cau Insurance Co.
Other economic conglomerates such as state oil and gas group Petrovietnam and the Vietnam Textiles and Garments group have established their own finance arms.
Source: Thanh Nien
The new unlisted group, to be named Electricity Finance Joint Stock Company, will be established this month provided it wins approval from the central bank, Vietnam Electricity said in a statement.
"The company will issue corporate bonds to serve investment needs of the power sector. It will also issue bonds, certificates of deposit and other papers to raise funds from domestic and foreign sources," the statement said.
Vietnam Electricity executives have said the Hanoi-based group needed $3 billion to $4 billion per year in the next three years to build power plants and a grid network to meet soaring demand fuelled by Vietnam's rapid economic growth.
The group plans to issue VND8 trillion of bonds this year, up from last year's VND6 trillion.
The new firm will have an initial capital of VND3 trillion ($186 million), Vietnam Electricity said.
The group will own 90 percent of its financial arm while the remaining 10% will be split between partly private An Binh Bank and Toan Cau Insurance Co.
Other economic conglomerates such as state oil and gas group Petrovietnam and the Vietnam Textiles and Garments group have established their own finance arms.
Source: Thanh Nien
Friday, June 01, 2007
Tariff on import petrol announced
The Ministry of Finance (MoF) has announced the tariff on petrol imports, which consists of five tax rates, from 0% to 20%, to be applied at different times, depending on the world’s prices.
The tax rate of 0% will be applied if the world’s A92 petrol average import price is over $89/barrel. The rate of 5% will be imposed if the world’s price hovers between $83 and $89 per barrel. The rates of 10%, 15% and 20% will be imposed when the world’s prices are low, at $78-83, $72-78, and below $72 per barrel, respectively.
According to Deputy Minister of Finance Truong Chi Trung, petrol importers can refer to the tariff to make their business plans. Meanwhile, customers also can use the tariff to find out if petrol distributors are selling petrol dear.
With the tariff, petrol importers can easily calculate the import tax they have to pay for imports. This will also help management authorities to be more flexible with their management policies.
In addition to the tariff, MoF will also announce the formula to calculate the petrol price. Customers can apply the calculation method to know if the selling prices are reasonable. The main factors to calculate the retail price include import price, plus taxes (import tax, luxury tax, VAT, VND/US$ exchange rate, traffic toll at VND500/litre), management and distribution expenses, and some other kinds of fees.
In the latest news, MoF has decided to lower the import tax on petrol from 5% to 0%, applied to customs declarations as of May 30. The move aims to help ease the burden on petrol importers caused by the world’s petrol price increase, and to prevent importers from raising retail prices.
Key petrol importers said that before the decision was made to lower tax, they suffered the loss of VND500-800/litre.
Analysts say that the pressure to raise the retail price has been not been as hard as some days ago, when petrol importers sought to raise the selling price. On May 31 in the morning, the light sweet oil price in New York (delivery in July) was $63.30/barrel, a slight increase of UScent15.
In Singapore, A92 is being offered at $87.38/barrel, just $3/barrel higher than that seen on May 8, when the price was raised from VND11,000 to VND11,800/litre.
Source: VNE
The tax rate of 0% will be applied if the world’s A92 petrol average import price is over $89/barrel. The rate of 5% will be imposed if the world’s price hovers between $83 and $89 per barrel. The rates of 10%, 15% and 20% will be imposed when the world’s prices are low, at $78-83, $72-78, and below $72 per barrel, respectively.
According to Deputy Minister of Finance Truong Chi Trung, petrol importers can refer to the tariff to make their business plans. Meanwhile, customers also can use the tariff to find out if petrol distributors are selling petrol dear.
With the tariff, petrol importers can easily calculate the import tax they have to pay for imports. This will also help management authorities to be more flexible with their management policies.
In addition to the tariff, MoF will also announce the formula to calculate the petrol price. Customers can apply the calculation method to know if the selling prices are reasonable. The main factors to calculate the retail price include import price, plus taxes (import tax, luxury tax, VAT, VND/US$ exchange rate, traffic toll at VND500/litre), management and distribution expenses, and some other kinds of fees.
In the latest news, MoF has decided to lower the import tax on petrol from 5% to 0%, applied to customs declarations as of May 30. The move aims to help ease the burden on petrol importers caused by the world’s petrol price increase, and to prevent importers from raising retail prices.
Key petrol importers said that before the decision was made to lower tax, they suffered the loss of VND500-800/litre.
Analysts say that the pressure to raise the retail price has been not been as hard as some days ago, when petrol importers sought to raise the selling price. On May 31 in the morning, the light sweet oil price in New York (delivery in July) was $63.30/barrel, a slight increase of UScent15.
In Singapore, A92 is being offered at $87.38/barrel, just $3/barrel higher than that seen on May 8, when the price was raised from VND11,000 to VND11,800/litre.
Source: VNE
Wednesday, May 30, 2007
EVN to raise capital via new subsidiaries
State-utility Electricity of Viet Nam Group (EVN) will create 10 joint stock companies this year in a move to raise capital for the construction of Government-approved energy projects.
The Director of EVN’s Equitisation and Securities Division, Dang Phan Tuong, said with an investment of over 30 trillion VND (1.8 billion USD), EVN will be the dominant shareholder in the 10 companies.
Eight of the companies will be responsible for building and operating eight hydro and thermo-electric power plants, namely: the Song Tranh, Song Bung 2, Song Ba Ha, Huoi Quang, Ban Chat, Ban Ve, Se San 4 and Lai Chau.
The two remaining subsidiaries will be dedicated to the Lao and Cambodian markets.
Tuong said in the first phase of the plan, EVN will seek strategic investors among the other State-owned enterprises and foreign companies to take major stakes in the 10 companies.
In the second phase, the 10 subsidiaries will hold initial public offerings to mobilise additional capital.
The companies will also be allowed to conduct business outside the energy industry, Tuong said.
EVN is currently the majority shareholder of five other joint stock companies specialising in the construction of electricity works.
Analysts have voiced support of EVN’s decision to set up new companies and equitise in order to mobilise capital, instead of relying simply on loans. It also gives investors an opportunity to partake in the country’s lucrative energy industry, said analysts
Source: VNA
The Director of EVN’s Equitisation and Securities Division, Dang Phan Tuong, said with an investment of over 30 trillion VND (1.8 billion USD), EVN will be the dominant shareholder in the 10 companies.
Eight of the companies will be responsible for building and operating eight hydro and thermo-electric power plants, namely: the Song Tranh, Song Bung 2, Song Ba Ha, Huoi Quang, Ban Chat, Ban Ve, Se San 4 and Lai Chau.
The two remaining subsidiaries will be dedicated to the Lao and Cambodian markets.
Tuong said in the first phase of the plan, EVN will seek strategic investors among the other State-owned enterprises and foreign companies to take major stakes in the 10 companies.
In the second phase, the 10 subsidiaries will hold initial public offerings to mobilise additional capital.
The companies will also be allowed to conduct business outside the energy industry, Tuong said.
EVN is currently the majority shareholder of five other joint stock companies specialising in the construction of electricity works.
Analysts have voiced support of EVN’s decision to set up new companies and equitise in order to mobilise capital, instead of relying simply on loans. It also gives investors an opportunity to partake in the country’s lucrative energy industry, said analysts
Source: VNA
Monday, May 28, 2007
Power investors wait for approval of strategy
Foreign power investors need to wait until the prime minister approves Vietnam’s new power development strategy towards 2015 for information about future investment opportunities.
A senior official from the Ministry of Industry (MoI) said a project wish list would be issued when the strategy is published. MoI submitted the strategy proposal to the government for final approval in April this year. “In a bid to satisfy the nation’s rising power demand, the MoI has planned to open power projects with combined 10,000 MW of generation capacity, mainly located in the central and southern parts of Vietnam. Huge investment potential and advanced technology will be two requirements deciding eligible investors,” said an MoI source.
MoI also suggested that in cases where more than one foreign investor takes an interest in the same power plant, an open bidding competition should be undertaken. Bid winners should be firms which offer the best price to the nation’s current wholesale buyer, Electricity of Vietnam.
Under the government’s current pricing regulations, EVN’s reselling electricity price is set at an average of VND842 (5.26 cent) per kWh.
The investment wish list of projects in Vietnam’s power sector is said to be greatly anticipated by foreign firms who are studying cases to build thermal power plants across the nation. Interested organisations include Japan’s Sumitomo, J-Power and Sojitz, the UK’s BP, Taiwan’s Tae Kwang Vina Industrial, Singapore’s Boustead and China’s Southern Grid Corporation. More recently, France’s leading power firm EDF told Deputy Minister of Planning and Investment Cao Viet Sinh about its desire to build a large-scale thermal power plant in the south of Vietnam.
Luc Jacquet, vice president of EDF Southeast Asia Division, unveiled that EDF would soon select the final location of the proposed plant, which the company wanted to start in 2012. The location should be close to a deep seaport to facilitate the import of coal to fuel the new power plant.
“EDF has an ambitious plans to develop power plants of combined 10,000 megawatts within the next 10 years,” Jacquet said.
EDF is a co-investor alongside Japan’s Sumitomo and Vietnam’s Tepco in the $480 million gas-fuelled Phu My 2.2 power plant in the southern Ba Ria-Vung Tau province. The 720 megawatt plant, which is one of two foreign investment power projects in Vietnam, began operating two years ago. MPI deputy minister Cao Viet Sinh admitted that rapid development of power plants in Vietnam was vital because of a sharp increase in electricity demand.
There is a potentially serious power shortage during the country’s dry reason which is caused by the current generation mix where electricity production is highly dependent on hydropower generation.
Sinh said that Vietnam’s current power generation capacity is rated at 11,200 megawatt and the supply is set to double by 2010.
Source: VIR
A senior official from the Ministry of Industry (MoI) said a project wish list would be issued when the strategy is published. MoI submitted the strategy proposal to the government for final approval in April this year. “In a bid to satisfy the nation’s rising power demand, the MoI has planned to open power projects with combined 10,000 MW of generation capacity, mainly located in the central and southern parts of Vietnam. Huge investment potential and advanced technology will be two requirements deciding eligible investors,” said an MoI source.
MoI also suggested that in cases where more than one foreign investor takes an interest in the same power plant, an open bidding competition should be undertaken. Bid winners should be firms which offer the best price to the nation’s current wholesale buyer, Electricity of Vietnam.
Under the government’s current pricing regulations, EVN’s reselling electricity price is set at an average of VND842 (5.26 cent) per kWh.
The investment wish list of projects in Vietnam’s power sector is said to be greatly anticipated by foreign firms who are studying cases to build thermal power plants across the nation. Interested organisations include Japan’s Sumitomo, J-Power and Sojitz, the UK’s BP, Taiwan’s Tae Kwang Vina Industrial, Singapore’s Boustead and China’s Southern Grid Corporation. More recently, France’s leading power firm EDF told Deputy Minister of Planning and Investment Cao Viet Sinh about its desire to build a large-scale thermal power plant in the south of Vietnam.
Luc Jacquet, vice president of EDF Southeast Asia Division, unveiled that EDF would soon select the final location of the proposed plant, which the company wanted to start in 2012. The location should be close to a deep seaport to facilitate the import of coal to fuel the new power plant.
“EDF has an ambitious plans to develop power plants of combined 10,000 megawatts within the next 10 years,” Jacquet said.
EDF is a co-investor alongside Japan’s Sumitomo and Vietnam’s Tepco in the $480 million gas-fuelled Phu My 2.2 power plant in the southern Ba Ria-Vung Tau province. The 720 megawatt plant, which is one of two foreign investment power projects in Vietnam, began operating two years ago. MPI deputy minister Cao Viet Sinh admitted that rapid development of power plants in Vietnam was vital because of a sharp increase in electricity demand.
There is a potentially serious power shortage during the country’s dry reason which is caused by the current generation mix where electricity production is highly dependent on hydropower generation.
Sinh said that Vietnam’s current power generation capacity is rated at 11,200 megawatt and the supply is set to double by 2010.
Source: VIR
Saturday, May 26, 2007
ABBank to finance power plant
An Binh Bank (ABBank) will finance construction of Power Co No 2's Central Hydroelectric Project to the tune of 150 billion VND (9.37 million USD), under an agreement signed on May 24.
ABBank will also provide financial services for Power Co No 2 (PC2) and its employees. In return, PC2 would assist the bank in its marketing services to the PC2 customer base of 3 million households as well as commit to create favourable conditions for further expanding the bank's network nationwide.
In the later part of this year, the bank plans to open 15 transaction offices in southern provinces served by PC2's network.
"I think that the agreement is an initial step toward further cooperation," said ABBank general director Luu Duc Khanh. "The agreement not only opens more investment opportunities for us but also improves and confirms our competitive position in the market."
Source: VNA
ABBank will also provide financial services for Power Co No 2 (PC2) and its employees. In return, PC2 would assist the bank in its marketing services to the PC2 customer base of 3 million households as well as commit to create favourable conditions for further expanding the bank's network nationwide.
In the later part of this year, the bank plans to open 15 transaction offices in southern provinces served by PC2's network.
"I think that the agreement is an initial step toward further cooperation," said ABBank general director Luu Duc Khanh. "The agreement not only opens more investment opportunities for us but also improves and confirms our competitive position in the market."
Source: VNA
Friday, May 25, 2007
Petrovietnam and Lilama to build hydroelectric power plant
Two State-owned giants, PetroVietnam and Lilama, will join forces to build the Hua Na hydroelectric facility in the central province of Nghe An, under an agreement signed on May 24.
Hua Na Hydropower Co Ltd will complete the joint venture, which will be formed with total capital of 1.2 trillion VND (75 million USD). PetroViet nam and Lilama shall each hold 14%, with addition stakes held by Military Bank, Sai Gon Securities Incorporation, Sai Gon Commercial Bank, Lilama 10 and Financial Investment and Consulting Co.
The combined facility and reservoir, covering a total area of 20.6sq.km, will be built at a cost of 4.3 trillion VND (270.8 million USD). Construction of the 180MW plant is expected to start in the first quarter of next year, with the plant to go on line in the first quarter of 2011.
Apart from the power project, the new joint venture will outfit other power plant and mining facilities and expand into real estate development.
The Do Luong Cement Plant is one project on the drawing board.
PetroVietnam and Lilama have also agreed to form a stronger strategic partnership. Lilama will become a supplier to Petro Vietnam construction projects, while PetroVietnam will provide financing and insurance services for the projects in which Lilama is a primary investor.
Source: VNA
Hua Na Hydropower Co Ltd will complete the joint venture, which will be formed with total capital of 1.2 trillion VND (75 million USD). PetroViet nam and Lilama shall each hold 14%, with addition stakes held by Military Bank, Sai Gon Securities Incorporation, Sai Gon Commercial Bank, Lilama 10 and Financial Investment and Consulting Co.
The combined facility and reservoir, covering a total area of 20.6sq.km, will be built at a cost of 4.3 trillion VND (270.8 million USD). Construction of the 180MW plant is expected to start in the first quarter of next year, with the plant to go on line in the first quarter of 2011.
Apart from the power project, the new joint venture will outfit other power plant and mining facilities and expand into real estate development.
The Do Luong Cement Plant is one project on the drawing board.
PetroVietnam and Lilama have also agreed to form a stronger strategic partnership. Lilama will become a supplier to Petro Vietnam construction projects, while PetroVietnam will provide financing and insurance services for the projects in which Lilama is a primary investor.
Source: VNA
Thursday, May 24, 2007
EVN to establish electricity trading arm
State monopoly Electricity of Vietnam is set to launch an electricity trading company that will buy from various producers to sell to power distributors, all of them belonging to EVN.
EVN hosted a meeting Tuesday in Hanoi to announce the plan which envisages setting up the company with a registered capital of VND1 trillion (US$62 million) later this year.
It would be joint venture between seven giant state corporations – PetroVietnam, Vietnam Coal and Minerals Group, Song Da Construction Corp., Vietnam Post and Telecommunication Group; Vietnam Cement Corp., Vietnam Steel Corp., and Vietnam Machinery Installation Corp.
They will jointly contribute 49% of the capital with EVN holding the rest.
The company will buy from 34 power plants around the country – both EVN’s and others’ – and sell to 11 distribution companies.
The unlisted EVN is expected to go public by the end of 2008, two years earlier than scheduled under a plan approved by the government.
Its 24 subsidiaries are set to equitize this year, including major players like the Ba Ria and Uong Bi thermal plants, and the Da Nhim – Ham Thuan – Da My Hydropower Plant.
The remaining six subsidiaries, namely the Nghi Son and Mong Duong thermal plants, Telecom Co, Hanoi and Ho Chi Minh Electric companies, and Electric Finance Co, are scheduled to go public by the end of 2008.
It has obtained the nod from the government to sell corporate bonds overseas next year, expecting to raise US$300 million to $500 million off the first phase.
Along with preparation for the forthcoming issue of overseas corporate bonds, the group planned to issue VND8 trillion ($502 million) in bonds for Q2 this year for infrastructure development.
The Hanoi-based utility said it needed VND250 trillion ($15.6 billion) in 2006-2010 to complete all its planned power projects.
Power demand in booming Vietnam is forecast to grow by 17% per year, prompting the government to plan 60 additional plants by 2020.
Source: Thanh Nien
EVN hosted a meeting Tuesday in Hanoi to announce the plan which envisages setting up the company with a registered capital of VND1 trillion (US$62 million) later this year.
It would be joint venture between seven giant state corporations – PetroVietnam, Vietnam Coal and Minerals Group, Song Da Construction Corp., Vietnam Post and Telecommunication Group; Vietnam Cement Corp., Vietnam Steel Corp., and Vietnam Machinery Installation Corp.
They will jointly contribute 49% of the capital with EVN holding the rest.
The company will buy from 34 power plants around the country – both EVN’s and others’ – and sell to 11 distribution companies.
The unlisted EVN is expected to go public by the end of 2008, two years earlier than scheduled under a plan approved by the government.
Its 24 subsidiaries are set to equitize this year, including major players like the Ba Ria and Uong Bi thermal plants, and the Da Nhim – Ham Thuan – Da My Hydropower Plant.
The remaining six subsidiaries, namely the Nghi Son and Mong Duong thermal plants, Telecom Co, Hanoi and Ho Chi Minh Electric companies, and Electric Finance Co, are scheduled to go public by the end of 2008.
It has obtained the nod from the government to sell corporate bonds overseas next year, expecting to raise US$300 million to $500 million off the first phase.
Along with preparation for the forthcoming issue of overseas corporate bonds, the group planned to issue VND8 trillion ($502 million) in bonds for Q2 this year for infrastructure development.
The Hanoi-based utility said it needed VND250 trillion ($15.6 billion) in 2006-2010 to complete all its planned power projects.
Power demand in booming Vietnam is forecast to grow by 17% per year, prompting the government to plan 60 additional plants by 2020.
Source: Thanh Nien
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