>> EVN asks for immediate power price hike due to huge losses
>> EVN must turn to private banks to settle debts
The state-owned Electricity of Vietnam Group (EVN)\'s debts to PetroVietnam that have now surpassed VND10 trillion (USD479.75 million).
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| EVN’s debts are not a new problem |
Le Duong Quang, Deputy Minister of Industry and Trade, attributed EVN’s mounting losses to their low power selling prices.
Tran Quoc Viet, Head of PetroVietnam’s Planning Department, said, “To date, EVN’s debt to PetroVietnam has increased by VND2 trillion (USD95.9 million) since last month to a combined VND10.1 trillion (USD484.55 million).”
Quang noted that EVN’s debts are not a new problem. The Ministry of Industry and Trade (MoIT) has held many meetings on the issue since April. While creditors have been urging EVN to settle their debts, EVN is still proposing a delay repayment due to their losses.
Meanwhile, Viet worried that if EVN does not pay off their debts to PetroVietnam, it would hinder the creditor\'s privatisation plans as well as those of its subsidiaries.
PetroVietnam would find it difficult to mobilise capital for their power projects if this situation continues.
Quang has requested that the two sides sit down to figure out the best solution, for the sake of the national economy.
In addition to its debts to PetroVietnam, EVN still owes over VND2 trillion (USD95.9 million) to the state-owned company Vietnam National Coal-Mineral Industries Group (Vinacomin). This means that EVN’s total debts amount to over VND12 trillion (USD575.7 million).
In early September, EVN sought approval from the MoIT to increase power prices. But several leading economists said the proposal was inappropriate amid the country\'s rising inflation.
Apart from its debt problem, EVN is struggling to find capital for power projects. The group is in need of an estimated VND832 trillion (USD39.9 billion) for the implementation of the national power development plan, running through 2015, or Plan VI. There is a shortfall of about VND599 trillion (USD28.7 billion).