09:00 | 15/10/2018 Energy
(VEN) - The National Power Transmission Corporation (EVNNPT) has raised more than VND95.6 trillion for about 450 high voltage transmission projects. Domestic capital accounts for more than VND45.6 trillion of this sum, while foreign capital makes up the rest.
According to the EVNNPT, which is an affiliate of the EVN, the corporation went through a rough patch during the 2008-2012 period, and was unable to meet the requirements for loans even as the need for transmission grid investment grew.
Facing difficulties, the EVNNPT implemented various measures under the direction of the government and EVN, among them turning to Official Development Assistance (ODA) as a capital source, improving relations with major domestic and foreign banks and credit institutions, and diversifying its capital sources.
A number of large domestic banks, directed by the government, also agreed to provide loans for urgent power transmission projects by the EVNNPT. The corporation also reviewed its list of investment projects and arranged them in order of priority to ensure favorable conditions for capital allocation.
Ensuring capital for transmission projects
These efforts, along with an electricity transmission pricing adjustment from VND59.67 per kWh to VND110.88 per kWh provided the EVNNPT with sufficient capital for about 450 projects valued at more than VND95.6 trillion.
The corporation has made greater efforts to ensure capital for power projects and has not delayed any projects due to capital shortages. The repayment of principal and interest on bank loans is also on schedule, boosting banks’ trust in the EVNNPT. The corporation says it has turned the corner and its financial condition is sound.
However, challenges and difficulties remain. Loans for the EVNNPT by major domestic banks have reached their limit, while the US dollar Libor interest rate is trending upward. In addition, the Vietnamese government is tightening ODA loans. To mobilize sufficient capital for transmission grid development, the corporation will issue bonds at home and abroad.
By July 2018, the EVNNPT was managing and operating a total of 24,423km of transmission lines, including 7,503km of 500kV lines and 16,920km of 220kV lines.
The EVNNPT has selected a number of reputable banks and credit institutions as strategic partners for mutual use of
each other’s services and capital for grid projects. In addition, the corporation will continue to seek preferential loans
in accordance with government guidelines.