At the meeting which had been managed by the President & CEO Nguyen Huu Thinh, there were some reports as follows:
Situation of production & business and construction & investment in May, 2019
In May 2019, total electricity output of EVNGENCO1 reached 3.830 triệu kWh, accouting for 110% of the planned output and 118% in the same period of 2018.
In the first 5 months of the year, total electricity output reached 16,270 million kWh, equivalent to 43.7% of the year plan. During the month, the units of EVNGENCO1 have high availability of nearly 100%. Hydropower plants operate safely and stably, meeting the mobilization requirements of the National Electric System Dispatch Center (A0) and the demand for downstream water supply. Thermal power plants operate stably and are mobilized with high capacity.
The key task in May 2019 of EVNGENCO1 is to ensure fuel (domestic and imported coal) for the production of thermal power plants, meeting the high demand of the system in the dry season 2019. At the moment, domestic coal output as supplied has still ensured the production demand but not met the demand for reserve. Therefore, in order to diversify the supply for production demand in peak periods, the Corporation is synchronously implementing solutions such as coordinating with Vietnam Coal Mineral Group (Vinacomin) and the Dongbac Corporation - Ministry of Defense to ensure coal supply under signed contracts; at the same time, implementing bidding procedures to select a short list of anthracite coal suppliers to offer prices purchasing the shortage of coal for electricity production and increase inventory by the end of 2019. For imported coal, coal supply of contractors must ensure sufficient coal for both units of Duyen Hai 3 thermal power plants operating and for backup storage. EVNGENCO1 is in progress of signing the medium and long-term contracts to ensure sufficient coal supply for operation in 2019 and the next period. The Corporation is also actively implementing solutions to speed up the dredging of Duyen Hai seaport port. In May 2019, coal handling capacity at Duyen Hai port was significantly improved.
Regarding construction and investment, for projects invested by EVNGENCO1, the value of implemented volume in May 2019 was VND 1,965 billion. In the first 5 months, the value of implemented volume value was VND 5,931 billion (accounting for 46.29% of the year plan); the disbursment value was VND 5,871 billion (accounting for 46% of the year plan). For Duyen Hai 3 Thermal Power Extention Plant Project – DH3Ext (owned by EVN, represented by EVNGENCO1, and managed as consulting by Thermal Power Project Management Board No.3), the value of implemented volume in May 2019 reached VND 260 million; the total value of such value and total disbursement value in the first 5 months was VND 948.6 million (accounting for 29.1% of the year plan) and VND 1,105 billion (accounting for 33.9% of the year plan), respectively.
The progress on the worksite of the DH3Ext. project has got many difficulties and has not reached the plan. It is striving to complete the PAC progress milestone no later than November 30, 2019. For the Da Nhim Hydropower Extention Plant Project, the Corporation is urgently submitting to the Electricity Regulatory Authority of Vietnam (ERAV) for approval of the adjusted electricity tarrif plan to complete commercial power generation procedures for 45MW units. On May 30, 2019, the floating solar power plant project on Da Mi Reservoir has completed acceptance and energizing to operate accordingly, exceeding the project schedule by 01 month. Other projects are in progress and urgently implemented by EVNGENCO1.
For equitization of the parent company - Power Generation Corporation 1, EVNGENCO1 has been actively following the localities to complete the land use plan agreement, which has been now accepted by 7 of 8 localities. In order to comply with the provisions of the Decree 126/2017/ND-CP, EVNGENCO1 has submitted to competent authorities to apply for adjustment of enterprise valuation time to 0h on January 1st, 2020 and handover of Duyen Hai 3 thermal power plant project from EVN to EVNGENCO1. At the same time, EVNGENCO1 is also executing divestment from joint stock companies to financialize under the direction of EVN.
Key tasks in June 2019
In June 2018, EVNGENCO1 is assigned with the planned output of 3412 million kWh, including hydroelectricity of 694 million kWh and thermal power of 2,718 million kWh.EVNGENCO1 shall strive to fullfil the key tasks in June 2019, i.e ensuring the stable operation of the units, meeting the mobilization requirements of the National Load Dispatch Centre; Ensuring supply of adequate coal for electricity production as required by the system, gradually increasing inventory; Improving coal handling capacity at Duyen Hai Electricity Center; dredging of Duyen Hai port in June 2019.
In the peak months of the dry season 2019, when the demand of the system increases, EVNGENCO1 pays special attention to solutions to ensure supply of adequate coal for the production of thermal power plants. For domestic coal resources, the Corporation will plan to coordinate, receive and improve handling capacity; Keep closely with suppliers to ensure fuel supply. The goal in June 2019 was to complete the signing of long-term coal trading contracts with Vinacomin and Dongbac Corporation under EVN’s instruction. For imported coal, EVNGENCO1 will implement bidding procedures to select a short list of Anthracite coal suppliers and sign coal trading contracts for the period of 2019-2020 to ensure coal sources for Duyen Hai 3 thermal power plant continuously operating with high capacity in 2019-2020.
For the construction and investment, EVNGENCO 1 shall strictly inspect the progress and the quality of the construction works according to current regulations and the Contractor is requested to synchronously implement the solutions to ensure the target schedules. The target for DH3Ext plant will be in the first firing of no later than July 17th, 2019 and expectedly completed in the Quarter 4, 2019. For the Da Nhim Hydropower Extension project, the Corporation has directed the Da Nhim - Ham Thuan - Da Mi Hydropower JSC to urge the contractor to accelerate the process of the geological survey drilling, tunneling and submit the final solutions for constructing the tunnel in June, in addition signing the appendix of the Electricity trading Contract.
For equitization, EVNGENCO1 will closely follow the competent authorities on approving the real estate arranging and handling plan for equitization and divestment in joint stock companies to financialize and implement related works as prescribed. In particular, it is closely followed by the State Management Board at the Enterprise so that it can soon provide additional explanations to the Prime Minister on the adjustment of the enterprise valuation time from 0h on January 1st, 2020 and transfer of the DH3Ext project from EVN to EVNGENCO1.