Illustrative photo (Source: VNA)

Hanoi (VNA) – The Electricity of Vietnam (EVN) group will focus on the equitisation of three power generating corporations in its restructuring plan for 2016-2020 period, according to the group’s Chairman Duong Quang Thanh.

Talking to Vietnam News Agency on the group’s restructuring, Thanh noted that the rearrangement of EVN’s affiliations will be done in the direction of improving business efficiency, increasing productivity and meeting the requirements of a competitive power wholesale market, towards the goal of being in the top four countries in ASEAN in terms of power supply.

According to Thanh, restructuring the organisation and ownership of firms will be the breakthroughs in order to achieve the goal.

EVN is undertaking procedures to equitise Power Generation Corporation No3 (GENCO3) within this year, while the value of GENCO 1 and 2 will be assessed in 2017 and 2018 as part of the restructuring process.

The group will maintain its stake in affiliated companies in renewable energy to assist with the development of green energy.

In the field of power transmission, EVN will continue to hold 100 percent of charter capital in EVN NPT while seeking solutions to improve the corporation’s finance with a view to ensuring its capacity to develop the transmission grid.

EVN has been instructing the restructuring process of EVN NPT in the direction of separating the management of the grid and repairing services.

The EVN Chairman also said the group will separate the distribution and retail costs among its member power corporations as from 2016, and transfer the existing Power Purchase Agreements (PPA) to those corporations as from the time the competitive power wholesale market begins operation. In the future, the retail section will be separated from power corporations and equitised to compete with other power businesses in the power retail market.

At the same time, EVN will push forward with the restructuring of corporate governance, with focus on completing rules and regulations, labour and business efficiency. The salary mechanism will be reformed based on the business outcomes of companies.

According to the Chairman, EVN completed all contents in the group’s restructuring plan for 2012-2015 approved under the Prime Minister’s Decision 1782 as of the end of 2015. The group divested all its capital from non-core business fields and reduced stakes in all seven joint stock companies.

In addition, the group approved restructuring and development plans of five of its member power corporations and the National Power Transmission (EVN NPT). The Government has issued EVN’s Statutes and a decree on financial management of the group.-VNA