3:26:18 PM | 7/8/2005
Despite the difficulties presented by changes in the economy and local weather conditions, the poor electrical infrastructure in some localities, and capital shortages for development, Electricity Company No.1 under Electricity of Vietnam (EVN) has identified solutions and taken appropriate measures in production, business, and capital use to strengthen the effectiveness of its capital management and fulfil its assigned tasks.
The company targets to sell 10.36 billion kWh this year at an average price of VND653 per kWh, a 16 per cent increase over 2003, reduce the rate of electricity wastage by 0.2-0.3 per cent from last year’s 7.86 per cent, and discontinue charging electricity through general meters in all urban areas, towns and townships before June this year.
To realise its targets, the company is endeavouring to carry out investment projects on schedule and put the projects to effective use immediately after they become operational. With total estimated capital of more than VND1,721 billion (US$110.32 million) in 2004, including VND475.6 billion (US$30.48 million) in foreign loans, the company has invested in 20 works now under construction, 12 works are to kick off in the second quarter of this year, and 17 works will start within the next few months. Twenty-three works on 110-kV electricity networks, overload prevention for 35-kV intermediary transformer stations, electricity provision to industrial parks, and overload preventing for medium-voltage grids in rural areas will also begin shortly. Its involvement will also continue in the on-going World Bank-funded Rural Energy Project II (RE II), and another project using loans from the Japanese Bank for International Cooperation (JBIC).
The company successfully reached its target of selling 9.052 billion kWh at an average price of VND650.02 per kWh in 2003, and reaped revenues of nearly VND5,884 billion (US$377.17 million) (VAT excluded), equal to 104.93 per cent of the yearly plan and up 29.91 per cent over 2002. The results were made possible by works to prevent overload in 110 35-kV transmission grids, the upgrade or building of distribution grids, and the installation of advanced management devices for measuring, testing and adjusting electricity meters. The company provided electricity to 263,332 new customers last year.
EVN assigned the company to build 2,066 works in 2003 with total investment of more than VND1,458 billion (US$93.46 million) including VND102.57 billion (US$6.57 million) from foreign loans, 95 per cent of which has been disbursed. It put 14 110-kV works into operation, and 13 transformer stations with a total capacity of 497 MVA, 70 km of 110-kV lines, 3,816 km of 35-22-10-6 kV lines, 32 35-kV of intermediary transformer stations, 1,560 distribution transformer stations, and 4,492 km of low-voltage lines, in order to prevent overload in cities, towns and rural areas. Total asset value was estimated to have increased by VND2,000 billion (US$128.20 million).
The company also repaired and upgraded 1,978 works last year at a total cost of VND167.127 billion (US$10.71 million), a 19.9 per cent increase over 2002. It upgraded 100 km of 110-kV lines, and revamped or replaced equipment at the 110-kV stations at Bac Kan, Quy Hop, and Viet Tri, and at 35-kV intermediary stations.
As at the middle of April, 4,560 communes with 5,343,142 households out of the 5,147 in 239 districts in the 25 provinces under the management of the company had access to the national power grid. It contributed more than VND424.35 billion (US$27.2 million) to the State budget, up 24.8 per cent over 2002, and pays an average income of VND2.228 million (US$142), a rise of 15.2 per cent against 2002 and 25.18 per cent on the yearly plan.
Because company’s capital sources are limited and capital demand for its projects is high, it has actively expanded foreign economic relations to raise loans from international financial institutions and foreign donors for newly-established projects. This year it is determined to complete projects using foreign loans, such as Vinh-Ha Long, Thanh Hoa, the RE I and II projects, the JBIC project, and others. Construction of small-scale hydroelectricity plants such as Seo Chong Ho in Sa Pa, invested by the company, and Ho Ho and Nam Dong 3 & 4, a cooperative arrangement with the Northern Electricity Investment and Development Companies No.1 and No.3, will also get underway this year.
To be active in acquiring equipment and materials of high quality at competitive prices, the company needs to complete all procedures for investment and the calling of capital to undertake projects producing medium and low-voltage electricity boards and boxes, in cooperation with Henan Electricity Company in China; expanding and upgrading the Cau Danh Transformer Station in northern Nam Dinh province; investing in a public telecommunications network in 18 provinces; building an electrical cable plant at the Haiphong Insulator Enterprise (VICADI); an electricity-insulated porcelain and silicon plant at the Que Vo Electricity-insulated Porcelain and Glass Enterprise; and a plant to assemble and produce electricity meters under a business cooperation contract with the OMNI Group from South Korea. Electricity Company No. 1 will also invest in building the Bai Chay Hotel in Quang Ninh province, the Nhat Tan Hotel in Hanoi, and tourism resorts and medical facilities in Cua Lo, Sam Son and Thien Cam Beach in the central region.
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