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Following three years of divestment, EVN has earned VND981 billion (US$43.6 million). — VNA/VNS Photo Ngoc Ha
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HA NOI (Biz Hub) — Electricity of Viet Nam (EVN) has completed divestment from three real estate companies, while reducing its capital at EVN Finance Company to 16.5 per cent of its original charter capital.
Following three years of divestment, EVN has earned VND981 billion (US$43.6 million).
In the group's report to the Government on its implementation of its restructuring plan, EVN said it had faced difficulties when withdrawing capital from some of its larger corporations.
EVN's biggest challenge was divesting from businesses in finance, banking, securities, insurance and property, due to the requirements of ensuring capital in the midst of a bleak securities market. In addition, regulations on divestment have resulted in shortcomings.
EVN, however, has been active in developing divestment plans, organising public auctions, as well as seeking partners to transfer their capital into enterprises that are to be divested.
Further, the group has carried out equitisation of Power Generation Corporation 3 (GENCO 3) and is preparing for equitisation at GENCO 1 and 2.
The equitisation of GENCO 3 has seen difficulties, as the company was established to follow a road map of the competitive electricity market, as it seeks to manage, operate and produce power. The equitisation would be implemented after the company's financial situation was considered healthy. However, the company has found it difficult to arrange capital for its projects, making it less attractive to investors.
Further, EVN said it had proposed to the Government and other agencies that they issue Decrees and Circulars to provide guidelines on implementation of the Enterprise Law, which took effect on July 1st.
It has also carried out power tariff adjustments using the existing market mechanisms.
On November 23, 2012, Prime Minister Nguyen Tan Dung enacted Decision No 1782/QD-TTg, approving EVN's restructuring plan.
The plan sought to ensure EVN's suitable structure and focus on power production and trading.
EVN has been allowed to access export credits from Russia and preferential loans from the Japanese government for construction of the Ninh Thuan Nuclear Power Plant.
Accordingly, Russia agreed to lend EVN $10.5 billion, while Japan is to provide capital from ODA for the plant.
The National Assembly, in 2009, passed a resolution on the construction of a 4,000MW nuclear power plant in the province's Thuan Nam and Ninh Hai districts, with investment of VND200 trillion ($8.9 billion) from EVN, the main investor in the two plants.
The plant was begun in 2015 and has its maiden trial scheduled for 2020. — VNS