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EVN must turn to private banks to settle debts
  • | Tuoi tre, VietNamNet, dtinews.vn | September 07, 2011 07:55 AM

>> EVN’s huge debts may drive up electricity prices

Creditors are putting pressure on state-owned Electricity of Vietnam Group (EVN) to repay debts, amounting to nearly VND10 trillion (USD480 million).

EVN urged to settle debts

At the Ministry of Industry and Trade’s regular meeting on September 5, officials from the state-owned Vietnam National Oil and Gas Group (PetroVietnam) and the state-owned Vietnam National Coal-Mineral Industries Group (Vinacomin) urged EVN to settle its debts.

PetroVietnam Deputy General Director Vu Quang Nam said the group’s subsidiaries are in desperate need of capital while EVN has yet to make plans to pay its debts.

According to Nam, PV Oil and PV Gas, subsidiaries of PetroVietnam, are struggling to pay for the purchases needed to feed their gas-fueled power plants.

The Deputy Prime Minister requested that Vinacomin mantain coal prices at current levels in order to help EVN settle their debts, said Nguyen Van Bien, Deputy General Director of Vinacomin.

But Vinacomin are finding it difficult to comply witht the request, he said, adding that EVN\'s problems could be shifted to Vinacomin in the form of losses.

"EVN owes VND1 trillion (USD48 million) to Vinacomin’s Cam Pha coal-fired power plant. If the debt is not settled, the plant may have to suspend operations,” he warned.

Hoang Quoc Vuong, Deputy Minister of Industry and Trade, called for creditors to be more sympathetic to EVN, because they are facing financial difficulties.

Vuong noted that even though the Prime Minister has requested commercial banks to lend EVN a combined VND10 trillion (USD480 million) for oil purchases in order to ensure power supply during this dry season, the group has yet find adequate funds.

“The ministry has asked EVN to speed up their negotiations with commercial banks to get the funding as soon as possible in order to ensure power supply while the Nam Con Son gas pipeline will be out of operation, due to maintenance, during the first half of this month," he said.

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