Participation in the meeting
includes Mr. Vu Tran Nguyen – EVNNPT’s Vice President and Directors of
different Departments: International Relations, Planning, Investment, Finance
and Accounting, Construction Management.
On behalf of EVNNPT, Mr. Vu Ngoc Minh congratulated Mr. Andrew Jeffries in the new
position and expected that he would have continued cooperation and support
extended to EVNNPT in coming time. He
highly appreciated the ADB support extended to EVNNPT in capacity building for human resources and development of
transmission grid. The ADB’s Multitranche Financing Facility (MFF) includes of
4 tranches, in which Tranche 1 and 2 have been implemented, Tranche 3 is in the
process of completing the sign of Loan Agreement, Tranche 4 is under
arrangement, which make rather great contribution to ensure the reliable, safe
operation of power transmission grid. The 220 kV Phu My 2 and 500 kV Pho Noi
substations project under Tranche 1 play a significant role in ensuring power
supply to Ho Chi Minh and Hanoi cities. Especially, the 500 kV Pleiku – My Phuoc
– Cau Bong transmission line project funded by ADB and co-funded by French
Development Agency (AFD) under Tranche 2 has been completed and energized in
May 2014. This is a 500 kV transmission line, circuit 3, one of the backbone
transmission lines transferring power from the North to the South and Central
areas, ensuring the power supply to the growing load demand in Southern area in
2014 – 2015 period and interconnect power grid of Vietnam, Laos and Cambodia,
as well as strengthen security for national power system.
Besides, Mr. Vu Ngoc Minh express
his concerns about Ministry of Finance (MoF) proposal in applying the credit
risks covered by commercial banks for Tranche 3 and 4 and future EVNNPT’s projects. Accordingly, each loan
will be added a credit risk fee of 0.5 -1%. Such application of credit risk
will make EVNNPT to have more
financing burden as well as project progress stress in the appraisal by
commercial banks and relevant agencies.
Mr. Vu Ngoc Minh proposed ADB to
reconsider and review: (i) the separation of packages for ensuring the
market-based actual competiveness; (ii) the eligibility by 2 contractors of
Power Construction Joint Stock Company No. 2 and 4 (PCC2 and 4), because they
are capable and experienced.
Mr. Andrew Jeffries expressed his
thanks for the hospitality by EVNNPT
leaders and committed to have further support extended to EVNNPT in its investment, development of
power transmission grid of Vietnam. He revealed that he himself and ADB
sympathize and share EVNNPT’s
concerns on credit risks by commercial banks as proposed by MoF.
Regarding the separation of
packages, Mr. Jeffries informed that he is willing to meet with Ministry of
Industry and Trade (MoIT), Vietnam Electricity (EVN) and EVNNPT to find out the suitable solutions.
Besides, he revealed that ADB is in the process of reviewing the eligibility of
2 contractors of PCC2, PCC4, and willing to support if the 2 contractor would
participate in bidding in EVNNPT’s
projects funded by ADB.
Closing at the meeting, President
and CEO Vu Ngoc Minh and Mr. Andrew Jeffries confirmed the expectation and
determination in pushing up the 2 side cooperation in coming time./.