|
Group must mobilise cash, fuel to get power projects on track
The Viet Nam Oil and Gas Group (PVN)’s deputy director Nguyen Tien Dung spoke with the Vietnam News Agency about the feasibility of thermo-electricity projects.
Many electricity projects are behind schedule due to a shortage of investment capital. As an investor in five 6,000 MW thermo-electricity projects, can you tell us how PVN plans to mobilise the US$6 billion needed for the projects’ implementation?
The Government has allotted PVN five thermo-electricity projects: Thai Binh 2 in Thai Binh province, Song Hau 1 in Hau Giang province, Vung Ang 1 in Ha Tinh province, Long Phu 1 in Soc Trang province and Quang Trach 1 in Thai Binh province.
We have a plan to collect enough investment capital. As one of the country’s leading economic groups, we can handle one-third of the total needed and mobilise the rest from foreign enterprises.
Currently, five foreign groups are co-operating with PVN. South Korea’s Electric Power Corporation (KEPCO) and Financial Corporation (AMCO) have signed a joint agreement on investment co-operation at Thai Binh 2 and will probably hold 49 per cent of the project’s shares. Japan’s Itochu Corporation and Germany’s GP Power Corporation have offered to invest in the Thai Binh 2 plant and South Korea’s IGC Corporation offered to invest in the Long Phu plant.
According to our plan, we will probably obtain direct investment capital and take out loans for export activities to purchase machinery and equipment at favourable interest rates as South Korea and Japan have supportive financial policies for their enterprises investing overseas.
To assure these projects run on schedule, we may issue international bonds to get the money quickly. I believe that PVN has an advantage both domestically and internationally.
The Viet Nam National Coal-Mineral Industries Group refused to purchase imported coal for the BOT thermo-electricity plant due to high prices and the Electricity of Viet Nam (EVN) failed to procure enough fuel for the plants. As a petrol group, what will PVN do to handle the 18 million tonnes of coal needed for these projects?
I must admit that how to get enough fuel is a really thorny issue, but we have to try.
Currently, PVN has established a coal import and export company, which is responsible for purchasing imported coal and negotiating long-term coal use contracts from mines to fuel the thermo-electricity plants.
We are also chalking out a plan to buy shares or co-operate with foreign partners to exploit coal mines in Indonesia and Australia.
In my opinion, co-operation between PVN and other foreign groups will solve the shortage of fuel as these groups have experience, financial stability and strong business relationships. Thus, they can share the burden of the coal shortage with us.
Moreover, we have won ten fuel exploration contracts with foreign partners on five continents, so we can find long-term coal supply sources there, especially in Russia. Coal purchasing in Russia has shown good signals.
In your opinion, what steps should be taken to help investors overcome current difficulties and attract more foreign investment to the electricity industry?
I think investment capital and fuel supplies are two big problems faced by investors, but the biggest problem is how to sign a contract to sell electricity to EVN.
Obviously, EVN must consider the purchase price as the retail price for households remains inadequate. As you know, the price of imported coal depends on the market, so electricity prices at thermo-electricity plants will increase accordingly. We just hope the Government and the Ministry of Industry and Trade soon establish a ceiling price, so enterprises will find it easier to negotiate and co-operate with each other and attract more investment to this industry.
Currently, the PetroVietnam Power Corporation (PVPower) is in charge of selling electricity to EVN. We hope that we can negotiate with EVN and make a final decision on one price, which will be applied to all PVN’s plants and benefit both sides.
VietNamNet, VietNamNews
|
