Prime Minister Nguyen Tan Dung has asked the state-owned Electricity of Vietnam Group (EVN) to not invest in non-core businesses and should join hands with the Ministry of Industry and Trade (MoIT) to address difficulties and challenges to ensure sufficient power supply for the country’s socio-economic development, local media reported.
The cabinet leader made the request at a working session between the government and relevant agencies’ officials and EVN’s leaders Feb 24 to discuss the electricity sector’s investment, business and production plans in 2009 and 2010.
EVN and MoIT were asked to review the national electricity development plan VI and prepares for the national electricity development plan VII from 2011-2020 to meet the country’s annual average GDP growth rate of 8 per cent.
The PM also requested EVN to quickly transfer stagnant power projects to other groups like PetroVietnam, Vinacomin and Song Da Construction Corporation to continue the works, and gradually apply a market-based price mechanism.
He pledged that the government will work with relevant ministries and agencies to solve issues relating to capital investment and site clearance for power projects.
Speaking at the meeting, the PM Dung praised the group’s efforts to supply electricity for production and daily use, boost investment, reduce power losses and create steady jobs for over 80,000 local residents.
In 2008, EVN reported a total commercial power output 65.93 billion kWh, up 2.92 folds against 2000, and a total revenue of VND66.37 trillion (US$3.92 billion), raised its owner equity to VND74 trillion (US$4.37 billion), and reduced the power loss rate to 9.35 per cent, said EVN Chairman Dao Van Hung at the meeting.
By late 2008, 97.26 per cent of communes and 94.03 per cent of rural households in all districts nationwide got access to electricity, noted the chairman
He added that the group invested VND1,182 billion (US$69.94 million) in non-core businesses by late last year, accounting for 2.38 per cent of its total registered capital, but it had canceled most of non-core business investments in line with the PM’s instruction.
This year, the group targets to produce 74.68 billion kWh and lower the power loss rate to under 8.85 per cent, he added. (Local sources)
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