Efforts in the first 6 months of 2020
The production and business activities of EVNGENCO1 in the first 6 months of 2020 took place in the context of lower average demand growth than planned due to the impact of the Covid-19 pandemic and lower water flow to hydropower reservoirs. However, thanks to stable operation of thermal power units with high availability factor and maintenance and repair of hydropower units to meet requirements of progress and quality, the total electricity output produced by EVNGENCO1 in the first 6 months of 2020 was 20.494 million kWh, reaching 100.4% of the plan assigned by Vietnam Electricity (EVN) Group, equivalent to 53.4% of the yearly plan and equal to 105% compared to the same period in 2019, completing the 6-month dry season output assigned by EVN ahead of schedule.
Duyen Hai Power Center
Supply of domestic and imported coal meets the demand, ensuring sufficient coal for operation and increasing inventory to serve the operation in the third quarter of 2020. As of June 30, 2020, the coal inventory of the power plants ranged from 10 to 18 days.
The implementation of investment projects in the first 6 months of 2020 was carried out on schedule. The Duyen Hai 3 Thermal Power Plant Expansion project was successfully tested and handed over for operation on April 29, 2020. Other projects are being urgently implemented by EVNGENCO1 in the proper order of procedures.
Regarding the equitization of the parent company - EVNGENCO1, the company is making efforts to implement the plan. The bid for consulting services to determine the enterprise value is currently being submitted to the State Capital Management Committee for contractor selection. The work of determining land prices for equitization and handing over assets on land to local authorities is being discussed and agreed upon by the relevant parties.
Strive to complete the timeline for the equitization process
In the remaining months of 2020, EVNGENCO1 will focus on resolutely directing the equitization process, ensuring the completion of the announcement of enterprise value in 2020 with the following milestones: Completing the procedures for signing the contract for valuation advisory services in July 2020, proactively working with advisors to determine the enterprise value from early July 2020; contracting for the development of the equitization plan and auction in September 2020; completing the collection of opinions from the People's Committees of provinces/cities on land prices to serve the determination of enterprise value; as well as proposing to suspend the transfer of investment capital of EVNGENCO1 in joint stock companies until the successful equitization and organization of the first shareholder meeting.
EVNGENCO1 is also focusing on boosting its production and business activities as a premise for the privatization process. Specifically, the company will concentrate on synchronizing solution groups to comprehensively accomplish the 5-year plan targets of 2016-2020, with the top priority of completing the assigned electricity output of 18,487 million kWh and moving towards surpassing the 2020 plan. It will operate its generating units safely and stably, satisfying the system mobilization requirements. The thermal power plants will continue to maintain high availability factors, while the hydroelectric plants will adhere to the inter-lake operating process to ensure safety during the flood season and fill the reservoirs to normal water levels by the end of 2020.
Regarding solutions to ensure the coal supply, EVNGENCO1 continues to implement the signing of contracts for domestic and imported coal supply to ensure sufficient supply for the operation of thermal power plants, including Duyen Hai 3 Thermal Power Plant Expansion. The company also aims to increase the productivity of coal unloading at the Duyen Hai Power Center Port to 37,000 tons/day, and to maximize coal inventory levels at power plants to ensure safe operation during the dry season of 2021.
Regarding investment and construction, EVNGENCO1 will tightly control the progress and monitor the quality of construction works according to current regulations at the ongoing construction project and require contractors to implement synchronized solutions to accelerate the progress. The Duyen Hai 3 Thermal Power Plant expansion project has completed the process of receiving the Power Purchase Agreement (PPA). The Da Nhim Hydropower Plant expansion project will continue to accelerate the construction work to ensure completion of over 90% of the remaining excavation and tunnel reinforcement work using drilling and blasting. Other projects will continue to complete investment procedures to implement project components.