In the current global crisis and the difficulties faced by Vietnam, in general and by EVN, in particular, this is a great effort by EVNNPT in capital arrangement and capital mobilization diversify according to the provisions of law in order to meet capital demands for construction investment.
For the past 5 years, EVNNPT has signed loan agreements and credit contracts of almost VND 36,493 billion for its investment. In which, VND 16,720 billions are from the national financial institutions and banks and USD 943 million (equivalent to VND 19,773 billions) from the international organizations such as Nippon Export and Investment Insurance (NEXI), World Bank (WB), Asia Development Bank (ADB), Agence Française de Développement (AFD). Remarkably, the capital arrangement through financial leases has shown initial results.
(Photo by Ngoc Ha/Vietnam Press Agency)
Recently, EVNNPT and Vietinbank Leasing have signed a financial lease contract to buy transformers of Dong Anh Electrical Equipment Manufacturing JSC, with the value of leasing assets worth VND 184 billion. Despite such fund is not big compared with the investment demand, it is useful for EVNNPT to have one more financial arrangement channel for its investments projects and supports the development of domestic engineering industry in accordance with policy by the Government and Party.
With the above-mentioned capital, EVNNPT basically ensures the progress of the key projects such as projects in synchronization with Son La hydropower plant, the Central and Highland hydropower plants and Southern and North Eastern thermal power plants. In particular, the finalization of the construction investment projects has clearly identified specific responsibilities of the collective and individuals, stipulated timeframe and progress to have bases for assessment.
Due to the shortage of fund for construction investment, advance had previously been made by EVNNPT from the sources of funds for overhaul, with delayed allocation and payment for power transmission companies, debts accummulated for many years. This has created many difficulties for the EVNNPT’s management and operation which can not be solved, making construction investment difficult.
At present, EVNNPT has settled the debts on allocation for repair, overhaul costs and VAT for all subsidiaries units, as well as brought the cost management and allocation into order, contributing to increase of management and operation efficiency and investment efficiency, ensuring a secure, continuous and stable transmission.