The delegation of the CMSC worked at EVNGENCO1 on the afternoon of April 21, 2023, in Hanoi
Participating in the delegation of the CMSC were Mr. Ha Van Thang - Deputy Director in charge of the Energy Department, Standing Committee of the Equitization Steering Committee at EVNGENCO1 and representatives of the Departments of General Affairs, Department of Legal and Control, Department of Energy, State Controller at EVN. On the side of Electricity of Vietnam (EVN), there were Mr. Nguyen Xuan Nam – Vice President and representatives of the Capital Management, Planning, Finance, Accounting and General Departments. On the side of EVNGENCO1, working with the delegation were Mr. Nguyen Tien Khoa - Chairman of the BOD, Mr. Nguyen Huu Thinh – the President & CEO, members of the BOD, other members of the BOD and representatives of functional departments and the Office of EVNGENCO1.
In 2022, EVNGENCO1's activities were carried out in accordance with the Government's new view on COVID-19 disease prevention and the EVN’s annual theme "Safe, flexible and effective adaptation". The total electricity output of EVNGENCO1was 30.42 billion kWh, exceeding the power output plan assigned by the Ministry of Industry and Trade and EVN. In digital transformation, EVNGENCO1 was highly appreciated by EVN with the 7th ranking out of 27 units in the EVN and the first ranking out of power generation sector. Other aspects such as occupational safety and health - environment, restructuring, training and human resource development, etc. were well completed by EVNGENCO1 and fulfilled the assigned plan targets.
Entering 2023, EVNGENCO1’s overall goal is to ensure the safe, stable and reliable operation of the generating sets to fulfill the assigned targets, especially the electricity output of 31,963 million kWh, an increase of 5.07% compared to 2022. In the first 3 months of 2023, EVNGENCO1 achieved 4,940.5 million kWh, equaling 24.1% of the year plan. However, EVNGENCO1's production and business activities might have faced some difficulties in the last months of 2023. The operating situation of the power system may be volatile and difficult to predict. Besides, according to the National Center for Hydro-meteorological, the water flow to the EVNGENCO1's hydroelectric reservoirs in 2023 is forecasted to be approximate and lower than the average of many years within 25% - 60%. Therefore, hydropower reservoirs are at risk of not guaranteeing water supply downstream according to the Inter-reservoir Operation Procedure until the end of the dry season and not being able to accumulate to the normal water level rise at the end of the year.
For the equitization tasks, in November 2021, the CMSC has sent a written report and proposed to the Prime Minister to allow the continuation of the equitization of EVNGENCO1 and the transition of EVNGENCO1 from the list of enterprises to be equitized until the end of 2020 to the Master Plan on reorganizing and renovating EVN's enterprises for the period of 2021-2025.
Regarding the adjustment of the time of enterprise valuation for equitization of the parent company - EVNGENCO1, on the basis of the approved scheme of EVN’s restructuring for the period 2022-2025, after completing the finalization of the Duyen Hai 3 Thermal Power Plant Extension Project and transfering the investor of Duyen Hai 3 Thermal Power Plant Project from EVN to EVNGENCO1, EVN will review and report to the CMSC for consideration to issue the decision on the equitization of the Parent Company - EVNGENCO1, which will show proposal of the appropriate time to determine the enterprise to equitize the Parent Company - EVNGENCO1. Based on such the time of determining the enterprise value for equitization of the parent company - EVNGENCO1 approved by the CMSC, EVN will direct EVNGENCO1 to develop the Plan and progress of equitization and submit it to the competent authorities for approval in accordance with current regulations.
As of December 31, 2019, the Corporation had completed the entire plan for arrangement of housing and land facilities and the plan for using land after equitization of the Parent company - EVNGENCO1 according to the Decree No. 126/2017/ND- CP dated November 16, 2017, then the land use plan had been approved by the localities (10/10 provinces/cities). In the process of managing and using land from December 31, 2019 up to now, the plan for arrangement of housing and land facilities and the plan for using land of EVNGENCO1 at some units have been adjusted and supplemented compared to the previous approved plan. Therefore, it is necessary to completely adjust and supplement the land lease procedures and submit the adjustment and supplement of the plan for housing arrangement according to the Government's regulations. This adjustment takes a long time due to going through many levels from the local to the central, so it needs the support and help of the locality to be able to complete the adjustment in 2023.
Mr. Ho Si Hung - Vice Chairman of the CMSC Head of the Equitization Steering Committee at EVNGENCO1 gave a directing speech
Speaking at the meeting, Mr. Ho Si Hung - Vice Chairman of the CMSC, Head of the Equitization Steering Committee at EVNGENCO1 acknowledged the efforts and results that EVNGENCO1 has achieved in production, business as well as the equitization preparation. He emphasized that the equitization of enterprises must aim at creating a better and more favorable environment for enterprises to develop. Therefore, he requested EVNGENCO1 to prepare carefully, have a clear orientation to be able to well solve problems arising in the implementation process, especially learn and draw experience from the equitization process of other units in EVN.
Mr. Nguyen Tien Khoa - Chairman of the EVNGENCO1’s BOD spoke at the meeting
Speaking in response, Mr. Nguyen Tien Khoa - Chairman of the EVNGENCO1’s BOD showed the sincere gratitude for the support of the CMSC in the process of preparing for the equitization of EVNGENCO1 as well as the caring in the development steps of EVNGENCO1. The Chairman of EVNGENCO1’s BOD has demonstrated recitivity for the instructions and orientations of the Vice Chairman of the CMSC and determined with the Board of Directors, leaders and employees of EVNGENCO1 to strive to fulfill the tasks of production and business, continue to innovate and improve more effective management to build EVNGENCO1 to develop strongly.