EVN equities GENCO 1, 2, 3 in 2016-2020

The Electricity of Vietnam (EVN) group will focus on the equitization of three power generating corporations in its restructuring plan for 2016-2020 period.

This information was revealed by the EVN Group’s Chairman Duong Quang Thanh. He also noted that the rearrangement of EVN’s affiliations will be done in the direction of improving the group’s business efficiency and productivity as well as meeting the requirements of a competitive power wholesale market, towards the goal of being in the top four countries in ASEAN in terms of power supply.

The restructuring of the organisation and ownership of firms under the group will be the breakthroughs in order to achieve the goal, he added. The Power Generation Corporation No3 (GENCO3) of the EVN group is under equitization process which is expected to finish in this year. The value of GENCO 1 and 2 will assessed in 2017 and 2018 as part of the restructuring process.

Mr. Duong Quang Thanh said the EVN group will maintain its stake in affiliated companies in renewable energy to assist with the development of green energy. The group approved restructuring and development plans of five of its member power corporations and the National Power Transmission Corporation (EVN NPT).

For EVN NPT,the group will continue to hold 100 percent of charter capital in this corporationwhile seeking solutions to improve the corporation’s finance in order to ensuring its capacity to develop the transmission grid. The restructuring process of EVN NPT has been started by separating the management of the grid and repairing services.

The EVN Chairman also inform that the group will separate the distribution and retail costs among its member power corporations as from 2016, and transfer the existing Power Purchase Agreements (PPA) to those corporations as from the time the competitive power wholesale market begins operation. In the future, the retail section will be separated from power corporations and equitised to compete with other power businesses in the power retail market.

According to the Mr. Duong Quang Thanh, EVN completed all contents in the group’s restructuring plan for 2012-2015 approved under the Prime Minister’s Decision 1782 as of the end of 2015. The group divested all its capital from non-core business fields and reduced stakes in all seven joint stock companies.