3:21:33 PM | 22/7/2008
Slow disbursement in recent months for power projects invested by joint stock companies under state-owned Electricity of Vietnam Group (EVN) is attributed to low trusts from banks, an official of the State Bank of Vietnam told the Investment newspaper.
&ldquoBanks do not lack money for power projects, the problem is the confidence of borrowers,&rdquo he attributed.
Banks said that if EVN were still investors of these urgent power projects, loan borrowing will be easy as EVN, a special state-owned company, is appraised and guaranteed by the Ministry of Finance and big banks.
However, when EVN sets up joint stock companies to undertake these projects, EVN will no longer be responsible for loans prioritized by the government but the newly-established firms that have modest confidence to commercial banks, hindering capital disbursement, banks elaborated.
Banks&rsquo desire to hold more negotiation with investors about early signed loans for power projects due to recent soar in credit interest rate is also blamed for slow disbursement and capital shortfall by the power sector.
To deal with the situation, Deputy Prime Minister Hoang Trung Hai has recently demanded EVN to continue acting as investor of hyower projects under the national electricity development plan by 2015 and span to 2025, or Plan VI, approved by the government. Hai rejected commissioning investor responsibility over the projects from EVN to joint stock companies.
EVN has also negotiated with commercial banks, and the two sides have agreed to double interest rates for power projects.
In the first half of this year, EVN carried out power projects worth VND16,298 billion (US$987.75 million), accounting for only 73.2 per cent of the planned target due to capital lack, said EVN general director Pham Le Thanh.
EVN needs around VND11.86 trillion (US$178.78 million) from now to this year&rsquos to develop power generating and transmission line projects. (Investment)
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