VND20 trillion needed for EVN projects

HA NOI (VNS)– Electricity of Viet Nam (EVN) is short of VND20 trillion (US$960 million) in funds targeted for work on electricity projects during the remainder of the year.

According to EVN's report, the group has mobilised only VND54 trillion ($2.6 billion), which accounts for 73 per cent of its capital needs for 2012.

EVN's 2012 development plan is part of a five-year plan that sets out targets on electricity production. Despite rising demand for power across the country, total productivity this year is 110MW lower than targeted.

According to Prime Ministerial decision 854/Qd-TTg, EVN's productivity should reach an annual average growth of 13 per cent for the 2011-15 period.

For five years, EVN will operate 42 turbines at 20 power plants with total capacity of 11,600MW and improve more than 300 power transmission lines.

Total targeted investment for the five years is more than VND500 trillion ($24 billion). For this 2012, the amount is around VND74 trillion.

The shortfall in funds has led to calls for a delay in scheduled coal price hikes, over concerns that these price increases will lead to skyrocketing production costs for the electricity sector.

At the Ministry of Industry and Trade's monthly review early this week, Dang Huy Cuong, Head of the Electricity Regulation Department, suggested a delay in increasing coal prices for the electricity sector.

Coal prices were scheduled to rise late this year or early next year, in what would be the third power price rise in this year.

According to Cuong, EVN's calculation that electricity production will increase by 13 per cent next year was too high, as estimated GDP had risen at 5.5 per cent, a rate that was lower than expected.

In an interview with Nhan Dan (People) newspaper, a representative of the Finance Ministry said low electricity prices were one of the reasons for the shortfall in capital for power projects.

In addition, local investors do not have enough funds to invest in the projects and it takes time to mobilise capital from foreign sources, said the representative.

This year EVN has put into operation six turbines equivalent to 1,153MW, including turbine 5 and 6 at the Son La, Dong Nai 4 and Kanak hydro power plants. Ban Chat power plant is scheduled to generate electricity from its turbine 1 by the end of this year, with the second turbine set to begin generating power early next year.

In addition, EVN plans to start three projects with total capacity of 1,790MW. They are the Trung Son hydro power plant and O Mon I and Duyen Hai 3 thermal power plants. -- VNS

Source: VNS

Hydropower projects left behind as investors flee

Many investors of small- and medium-sized hydropower projects in the central provinces have unexpectedly vanished, while their facilities remain unfinished, exposing the projects to harsh weather and forcing locals residing in the zoned land plots into a tough spot.

Located in the most remote mountainous area of Quang Nam’s Tay Giang District, the 30MW Tr’Hy hydropower plant was considered a project that would attract hugest investment in the province.

In 2007 the province licensed the Hanoi-based LED Company to begin work on the facility with a combined capital of VND600 billion (US$28.7 million).

The construction work brought a busy and exciting atmosphere to the neighborhood of the Tr’Hy forest, with bulldozers and hundreds of workers coming to clear the site.

It took less than a year for the investor to complete site clearance and compensation tasks, finish a 9km road connecting the plant with the local town, wire 19km of electrical lines, and even set up a new residential area to relocate the locals. All of the construction cost an initial sum of VND100 billion.

But the good news ended there. All work on the project suddenly ceased in December 2010, and the site has since witnessed the silent departure of workers and construction vehicles, while the 9km road is now only a series of concrete blocks severely deteriorated under harsh weather conditions.

“The ten-figure road now has a new duty: providing space for locals to graze their cows,” Clau Blau, a senior citizen, said ironically.

Quang Nam, unfortunately, is currently home to a number of other hydropower projects that had to stop construction since their investors have left. They include the Nuoc Che, Dak Mi 2, and Dak Mi 3 in Phuoc Son District.

Another reason investors have left their unfinished hydropower projects in Quang Tri and Thua Thien – Hue is a shortage of capital, creating headaches for both local residents and authorities.

Life affected

Many local farmers in Tr’Hy Commune, who had to relocate to give their land plots to the plant’s builders, now wish to return to start a new crop on the land currently left unused, said A Lang Hop, chairman of the commune’s People’s Committee.

“But they are hesitant for fear that the investor will suddenly return and revoke the land,” he said.

The new land plots for production in the relocation residence are not as rich as those given to the project, and farmers are experiencing a shortage in land for agricultural production, they said.

“The residents asked me whether the hydropower project will be continued or not, for them to return to their land, but I cannot answer as the investor always refuses to answer my phone calls,” lamented Bling Mia, chairman of Tay Giang’s People’s Committee.

Authorities take action

Many provinces, however, have enacted firm action against the sluggish hydropower plant investors in their localities.

Quang Ngai’s government has recently petitioned to remove six small- and medium-sized hydropower projects from the master plan, while Kon Tum authorities have revoked their policy of investing in eight similar projects.

Meanwhile, Quang Nam authorities released on Wednesday an ultimatum for the investors of the Tr’Hy, Dak Mi 2, and Dak Mi 3 projects, requesting them to file a report on the facilities progress by November 15.

“If they fail to report their future investment plans, we will call on the government to put a halt to the projects,” said Dinh Van Thu, deputy chairman of the province’s people’s committee.

Source: Tuổi Trẻ