Deputy Prime Minister Hoang Trung Hai has urged the Ministry of Industry and Trade to complete its plan for adjusting power prices and ordered banks to ensure sufficient credit for power projects.

 

The ministry must submit the 2010 plan for electricity prices to the Government for consideration and approval at the earliest, Hai said.

 

The Ministry of Industry and Trade was also tasked with drafting legal documents on setting up a power exchange in the country and to map out solutions for making it develop in sustainable manner.

 

 Meanwhile, relevant ministries and banks must assist power companies in sourcing capital for their development, the deputy PM said.

 

 He ordered the State Bank of Vietnam to support commercial banks in mobilizing capital to help implementation of electricity development plans.

 

 The central bank Governor should allow commercial banks to offer loans to power projects for up to 15 percent higher than their charter capital, he said.

 

At the same time, banks should also be allowed to use more of their short-term lending sources to make more medium and long-term loans to power projects, he said.

 

 The power sector, on the other hand, must ensure progress of projects under the national Electricity Plan VI to meet the country’s socio-economic development needs, he added.

 

It is estimated that the state-owned Electricity of Vietnam (EVN) has mobilized VND40,000 billion (US$2.1 billion) per year over the past few years to invest in power development.

 

 In the 2008-2009 period, EVN increased its generation capacity by 3,000 MW each year, alleviating power shortages nationwide. 

 

 However, the sector says tardy disbursement of capital from banks for many power projects has caused a lot of difficulties for project investors, contractors, and workers.

 

VietNamNet/SGGP