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EVN in the reign of President Dao Van Hung   2012-02-13 - VietNamNet

The major task assigned to the Electricity of Vietnam (EVN) is that it must ensure the power generation sources for the country. However, the task has never been fulfilled.


The overall plan to develop national power in 2006-2015 (plan 6), which was approved by the Prime Minister in 2007, says that in order to satisfy the demand for the socio-economic development with the GDP growth rate of 8.5-9 percent, the power demand would increase by 17 percent per annum.

It is expected that in 2006-2015, 98 power generation projects with the total capacity of 58,000 MW will be implemented. Of these, EVN undertakes 48 projects with the capacity of 33,000 MW.

In order to implement the task, EVN planned to build 25 power plants with the capacity of 7200MW in 2006-2010.

However, EVN failed to fulfill the plan. 28 out of the 42 projects became operational 1-2 years later than scheduled. This resulted in the serious electricity shortage, especially in the dry season in 2007 and 2008.

Power projects go slowly

According to the State Audit, the actual investment capital on power plants is always higher than the initial estimates. However, most of the projects go more slowly than expected.

In 2005-2010, EVN ran 42 power projects with the total initial investment capital of 370,230 billion dong. After five years, EVN spent 114,440 billion dong, but it fulfilled 13 projects only, and the other 19 projects were left half done.

In the period before the plan 6 came out, EVN also made investment in a series of power generation projects which were planned to become operational in 2007-2009. However, most of the projects went more slowly than expected.

In early 2003, EVN stated that the Tuyen Quang hydropower plant (342MW), the Hai Phong 1 (600MW) would be put into operation in 2006, and that A Vuong 1 hydropower plant (170MW), Quang Tri (70 MW), Dakring (100 MW) and Ninh Binh thermopower plant (300MW) in 2007.

However, by 2007, only the power generation units N0 1 and 2 of Quang Tri power plant, the unit No 1 of Tuyen Quang plant had been operational, while others had not been completed.

In 2006-2010, the Quang Ninh 1 and Hai Phong 1 thermopower projects became “famous” for their delay. Both of the plants became operational late by 27 months than planned. Meanwhile, the Uong Bi expanded project was famous not only because of the delay, but also because of the regular troubles during the operation.

SeSan 4a, Thac Mo MR, Dong Nai 4 were planned to generate power in 2010. However, EVN has said that they would not become operational until 2012 and 2013.

It is clear that the delay has caused big loss. When a 300MW plant is late by one year, the national grid loses the chance of getting the supply of 1.8 billion KWh. Meanwhile, the delay has also lead to the investment costs increases, because of the higher loan interest rates, project management costs, consultancy costs and other expenses.

“Slow” means “normal”

EVN always blames the delays of the projects on the objective factors, including the site clearance problems and the lack of capital. However, reports have pointed out that this is because of the mismanagement.

It takes China 18 months to fulfill a coal run thermopower plant, while EVN needs five years to do the same work.

Since 2003, the government allowed EVN to apply a special mechanism in order to help shorten the construction time. However, projects still have been going slowly.

The report by the State Audit has pointed out that contractors did not lack capital for the Dong Nai 3 and Dong Nai 4. However, some construction items still went more slowly. The Quang Ninh 1 and 2, the Hai Phong 1 and 2 projects all went slowly and suffered troubles during the operation.

Experts said that the blunder in choosing partners and the loosened management over contractors were also the big reasons behind the delay in the project implementation. Most of the coal run thermopower plants undertaken by Chinese contractors went slowly and got troubles. However, EVN could not learn the lessons from the projects, and the same problems were repeated in other projects.

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