EVN seeks special mechanism for privatised Gencos

Sep 24th at 15:16
24-09-2015 15:16:00+07:00

EVN seeks special mechanism for privatised Gencos

Electricity of Viet Nam (EVN) has asked the Prime Minister to issue a special operation mechanism for three Power Generation Corporations (Gencos) before they are privatised, local media reported yesterday.

However, details in the proposal and the mechanism have not yet been clarified.

The Gencos were founded to comply with the national plan, which took effect in 2012 and aims to develop a competitive power generation market in the country.

The companies have to produce electrical power, manage the production line and develop new power projects in order to have a strong financial condition before the privatisation.

However, EVN reported that the privatisation of the three Gencos could be hard because they seemed unattractive to investors due to the inability to call for investments in their projects.

The Genco headquarters were located in areas that are far from the country's central cities such as Ha Noi and HCM City, and they also had difficulties running and managing their sub-units located in various areas in the country, EVN added.

In addition, the Gencos had difficulties in communicating with their agencies, as well as domestic and foreign financial institutions, and in recruiting high-quality human resources.

EVN recently sold its entire stakes in the Central Area Electrical Mechanical Company (CEMC) – more than one million shares – and collected VND37.9 billion (US$1.68 million) earlier this month.

According to the restructuring plan for EVN in 2012-2015, EVN has to reduce its stakes in seven companies that operate in other sectors.

EVN divested from three of the companies – also real estate firms - by the end of last year, including Viet Nam Power Construction Investment JSC, Saigon Vina Real Estate JSC and Central Area Power Real Estate JSC.

In four other companies, EVN reduced its stakes in four subsidiaries including the Global Insurance JSC (GIC) and EVN Finance JSC (EVNFinance).

By the end of last month, EVN had sold one million shares in GIC to the insurance ERGO International, a sub-unit of Germany-based insurance ERGO Group, reducing its ownership in GIC from 22.5 per cent to 20 per cent. EVN will sell its remaining stakes in GIC at an auction once the State Securities Commission and the Ministry of Industry and Trade approve the plan.

In EVNFinance, EVN has sold 58.75 million shares in EVNFinance to cut its ownership from 40 per cent to 16.5 per cent. At the moment, EVN plans to sell investors 3.75 million shares in EVNFinance to cut the stake to 15 per cent.

By the end of August, EVN has earned VND958.3 billion ($42.6 million) by divesting from its sub-units that operate in non-power sector.

bizhub



NEWS SAME CATEGORY

Drink industry told to lift distribution to stay trading

Domestic beverage companies were urged to improve their distribution system to protect their domestic market shares amid anticipated rising competition pressure...

Experts discuss two-way investing

Domestic and foreign experts gathered at a workshop in Ha Noi on Tuesday to discuss establishing venture investment funds by the private sector in co-ordination...

Chinese traders hunt for decades-old sugar palm trees in southern Vietnam

You will never be able to guess what Chinese traders will add to the list of bizarre products in their highly dubious buying sprees in Vietnam in recent years.

Low-income earners burdened by high fees

Vietnamese now have to spend 21.4 percent of their total monthly living expenses, according to Numbeo, the database on living costs.

Experts identify challenges by 2035

Local and foreign experts have projected Vietnam could face high socio-economic risks by 2035 while other countries in Eastern Asia may have made breakthroughs.

Work starts on new industrial zone in Binh Phuoc

The Hai Vuong-Sikico Group started construction on the Minh Hung Sikico Industrial Zone (Anzone Industrial Zone for short) in Hon Quan district, the southern...

Enterprises urged to get creative

Besides the important role of the government in creating a favorable, transparent business environment, local enterprises should become more active and creative in...

HCM City to boost investment

According to the HCM City People's Committee, the investment budget for road traffic projects in the next five years will be VND124 trillion (US$5.5 billion)...

ADB raises VN GDP forecast to 6.5%

Viet Nam's gross domestic product (GDP) will likely to grow 6.5 per cent in 2015 and 6.6 per cent in 2016, the Asian Development Bank (ADB) said yesterday in Ha Noi.

Public debt well within Government's target

The nation's public debt was estimated at 62.3 per cent of the GDP by the year end, well within the Government's limit of 65 per cent.


MOST READ


Back To Top