Electricity of Viet Nam seeks funding for power transmission projects

Electricity of Viet Nam is seeking loans from international finance organisations and domestic commercial banks to fund power transmission projects.

Under the national power plan, the country will need a maximum of 210 billion kW per hourby 2015 and 362 billion kW per hour by 2020. Loans from finance organisation and banks would be crucial in developing transmission projects, he said.

National Power Transmission Corporation under EVN or EVNNPT said that within five years it must set up 350 transmission projects, with an estimated capital of VND76 trillion or US$3.6 billion. This means the corporation needs about $723 million a year during that period.

Nguyen Manh Hung, general manager of EVNNPT, said capital shortage for power transmission projects could lead to more power outages in the southern key economic zone as well as HCM City in 2013.

Speaking at a forum in HCM City yesterday, Hung said EVN and EVNNPT had a social responsibility to keep power prices unchanged as part of the fight against inflation.

“We highly regard EVNNPT’s reputation in making payments, so we have pledged to loan the corporation the maximum amount permitted by the State Bank,” said Ta Minh Hieu, deputy director of An Binh Bank.

Hieu also said his bank could help other commercial banks with capital to loan EVNNPT.

“Banks are concerned that effectiveness of investment would be low because of the low power tariffs in the country,” said Vu Tran Nguyen, EVNNPT’s deputy general director. “But the corporation has endured a low tariff to benefit society. Thus banks should work with us to share social responsibility.”