Mr. Nguyen Huu Thinh - President & CEO presided the conference
At the conference, reports and guidelines on production, business and construction investment in July 2019 in the following specific contents:
In July 2019, the total electricity generation by EVNGENCO1 reached 3,370 million kWh, equivalent to 109% of assigned plan. In the first 7 months, the Corporation produced 22,959 million kWh, equivalent to 61% of the plan and 130% as compared to the same period in 2018. Although hydrography conditions are not entirely favorable, water level of Tranh River No.2 Hydropower Reservoir was below dead water level but hydroelectric plants were operating stably and offered according to the downstream water supply demand and limited water level announced by the National Load Dispatch Center (A0). Thermal power plants operated stably with high availability factor and capacity.
Ensuring fuel for production is considered as a main mission by EVNGENCO1. In July 2019, domestic coal suppliers (TKV, North Eastern Corporation) basically provided enough committed volumes but did not meet coal demand for reserve inventory. In particular, the supply of coal for Duyen Hai 1 project is very difficult, insufficient for electricity production. Therefore, the Corporation has been syncing solutions such as coordination planning, receiving and improving coal loading and discharging capacity at the port, closely following and urging suppliers to ensure generation as per contract. At the same time, EVNGENCO1 has also implemented bidding procedures to supply Anthracite coal to make up for coal shortage, ensure coal inventory, as well as enter long-term coal supply contracts for long term purpose. For imported coal, the contractors basically ensure coal for both 2 units of Duyen Hai 3 Thermal Power Plant for operation and reserve. The Corporation is also actively implementing solutions to speed up dredging and maintaining seaport of the Duyen Hai power center. This work has been achieving positive results, expected completion of procedures and dredging activities before August 15, 2019.
Regarding investment - construction (IC), for projects invested by EVNGENCO1, in July 2019, IC value reached VND 1,631 billion. In the first 7 months, estimated execution value and disbursement value respectively VND 8,087 billion (reaching 63.11% of the yearly plan) and VND 8,028 billion (equivalent to 63% of the yearly plan. Duyen Hai 3 Thermal Power Plant expansion project (invested by EVN; EVNGENCO1 and its representative is Thermal Power Project Management Board 3 as a project management consultancy), value of construction investment in July is VND 329 billion. In the first 7 months, value of construction investment is VND 1,683 billion (reaching 51.63% of the yearly plan); disbursement value of VND 1,500 billion (reaching 46% of the yearly plan).
The implementation of construction investment projects in July 2019 has not many changes. Specifically, progress on construction site of Duyen Hai 3 Thermal Power Plant Project and Da Nhim Hydropower Plant Expansion Project still faces many difficulties and is slow compared to tentative plan. EVNGENCO1 has been drastically implementing solutions to shorten the progress. The highlight that the solar power project on Da Mi Lake has exceeded its schedule.
Regarding equitization (RE) Parent company - Power Generation Corporation 1, EVNGENCO1 has been actively following localities to achieve an agreement on land use plan (completed in 8/9 locations). In accordance with Decree 126/2017/NĐ-CP, EVNGENCO1 has applied to competent authorities for adjusting time of enterprise valuation in 2020 and hand over Duyen Hai 3 Thermal Power Plant Project from EVN to EVNGENCO1. At the same time, EVNGENCO1 is also divesting at joint stock companies under EVN’s direction to promote finance.
Key tasks in August 2019
In August, key task of EVNGENCO1 will be the effort to achieve electricity generation of 3,164 million kWh; Operating generator units safely and stably, meeting the mobilization requirements of A0, ensuring revenue and profit according to assigned plan; The hydropower plants operate in compliance with the provisions of the inter-lake operation process, limit water level announced by A0 and ensuring the reservoir water to the normal rising water level by the end of 2019; Completing procedures and deploying dredging of Duyen Hai power center before August 15, 2019, for ships of 22,000 tons load can operate normally.
The solution to ensure proposed coal source EVNGENCO1 is to sign a long-term contract with TKV / North Eastern Corporation to stabilize coal sources for domestic coal-using plants. At the same time, deploying Anthracite coal from South Africa to test coal burning mixed with domestic coal. For imported coal, EVNGENCO1 will sign a medium and long-term coal sales contract to ensure continuous supply of coal for Duyen Hai 3 Thermal Power Plant in period of 2019-2020.
Regarding IC, EVNGENCO1 will strictly control the progress and monitor quality of construction works according to the current regulations in projects under construction and require contractors to synchronously implement solutions to speeding. Duyen Hai 3 Thermal Power Plant Expansion Project is expected to handle defects, burning oil again for release in August 2019, ensuring the conditions for first coal burning before September 20, 2019. For Da Nhim Hydropower Plant Expansion Project, the goal is to follow the agreed plan of experts and ensure plan progress. Other projects will also focus on drastically managing and ensuring progress.
In August 2019, EVNGENCO1 will continue to follow up with competent authorities on approving plan of restructuring and handling real estate for equitization; divestment in joint stock companies to promote finance and execute related work as prescribed. At the same time, closely follow capital management committee in enterprise on additional explanations to the Prime Minister on adjusting the time of enterprise valuation in 2020 and the transfer of Duyen Hai 3 Thermal Power Plant project from EVN to EVNGENCO1.