SCIC wants to invest in EVN power projects

Hanoi (VNA) - 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 Vietnam (EVN) to
invest in additional electricity supplies deemed vital to the country's
economic development. Cooperation 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 percent 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 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 Vietnam 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.-Enditem