SCIC wants to invest in EVN power projects

November 11, 2008 in Uncategorized
Tags: Add new tag, EVN, power, projects, SCIC, wantsvest

HA NOI — The State Capital Investment Corporation (SCIC) says it is seeking approval from the Government for it to invest in power projects.

SCIC is proposing to work closely with Electricity of Viet Nam (EVN) to invest in additional electricity supplies deemed vital to the country’s economic development. Co-operation between the sovereign wealth fund and the national electric utility would be undertaken on the principle that the two public corporations would hold at least 51 per cent of the capital in any electricity projects developed with SCIC funding, ensuring State control of key projects.

SCIC general director Tran Van Ta said that, upon approval of the proposal by the Prime Minister, SCIC would invest immediately in some EVN projects which are short of capital or behind schedule due to slow capital disbursement.

“We will join these projects in the role of financial investor,” Ta said.

SCIC also stated that it was still in talks with the leaders of EVN and of the Ministry of Industry and Trade to discuss details for carrying out the proposal.

As the State’s strategic investor, SCIC represents State interests in various former State-owned companies following their equitisation. But SCIC is also considering pouring some of its massive store of capital into key industries deemed essential to the nation’s sustainable economic development, making power projects a leading candidate for investment from the sovereign fund – particularly following EVN’s announcement in August that it lacked the capital to continue 13 planned projects.

Following the EVN announcement, a number of foreign and domestic investors – including Viet Nam Oil and Gas Group (PetroVietnam) , have expressed interest in fronting financing for the projects. Deputy Prime Minister Hoang Trung Hai has also issued a decision approving some foreign partners to work with these domestic giants in reviving these 13 projects. —