The Chairman of the Board of Directors Duong Quang Thanh at the Conference. Photo: Thanh Trung.
According to the Chairman Duong Quang Thanh, during 2016, EVN had comprehensively accomplished its planned objectives and assignments. However, in addition to the significant achievements already gained, there existed a few unresolved issues in operation of the power system and management of capital investments. In 2017, EVN will have to tackle three big challenges in power supply, funding arrangements and financial difficulties. Therefore, in order to address these unresolved issues and fulfill the assignments given by the Prime Minister, the Chairman pointed out eight vital issues that EVN should concentrated its resources to deal with, as follows:
Firstly, assurance of sufficient power supply to the socio-economic development. In order to secure sufficient power supply to the country at the request of the Prime Minister, EVN shall focus on performing key and urgent projects on schedule; researching and investing in solar power; operating reliably and stably large-scale coal fired power plants in the South; quickly developing new energy and renewable energy projects, in line with the renewable energy development strategy and the revised Power Development Plan No. 7; considering introduction of LNG fired power to replace nuclear power; planning and developing solutions to secure fuel sources for long term and competitive generations.
Secondly, application of science and technology in improving work productivity. EVN should enhance its application of advanced science and technology in order to minimize its manual labour.
The science and technology application shall improve the work productivity, and at the same time make manual labour redundant. Therefore, EVN and its subsidiaries shall establish retraining plans, rational arrangements and appropriate policies to encourage employees to terminate their employment according to the current regulations.
EVN shall secure safe operation of the power system, sufficient power supply to the socio-economic development of the country in 2017 – Photo: Thanh Trung.
Thirdly, regarding the national competiveness capability, upgrading the electricity access ratio from the sixth position to the forth position among ASEAN countries will be a remarkable challenge. Ministry of Trade and Industry has issued Circular No. 24 to amend Circular No. 33 on electricity access time. Therefore EVN shall reconsider its business processes to comply with the new regulations. Together with the efforts to reduce the access time, both SAIDI and costs for electricity access included in the evaluation criteria should be trimmed down.
Fourthly, enhancement of administration, refinement of management organization, sound operation to improve productivity, expense saving, saving and waste combating. In 2016, EVN set forth its directions and solutions to enhance the corporate administration capabilities. This task shall continue to be pursued in 2017, in particular the whole codes and regulations shall be drafted and promulgated within the first quarter for being applicable in EVN.
Saving in capital investments play a meaningful role in the cost saving and should be paid attention in all stages. When making plans, EVN should set the maximum investment increase rate at 80% of the power sale growth rate and cutback 10% of the planned investment costs. Division of tender packages will be done to increase the competiveness, EVN will revise its tender regulations towards more competiveness, considering tender cancellation in case of only one bidder participation or only one technically responding bidder. Strong determination in corruption combating, waste prevention, especially in capital investments, etc will be made.
Fifthly, administrative reform, establishment of electronic office at the forth level. EVN and its subsidiaries are urgently establishing their electronic offices at the forth level, to ensure that most of the services of EVN and its subsidiaries can be provided via internet; to facilitate quick processing of documents and works assigned within EVN and its subsidiaries. Within the first quarter of 2017, EVN shall finalize its electronic office project for being applicable to all the subsidiaries.
Sixthly, corporate restructure, to execute the Government’s instructions and in line with the market economy oriented direction, EVN shall finalize its equitization of EVNGENCO 3 in 2017 and the remaining GENCOs within 2018; reform and restructure transmission and distribution sector according to the wholesale and retail power markets. EVN shall own only six multi-purpose hydro power plants and plants related to these multi-purpose plants, transmission and distribution networks; the retail business and services will be equitized. The ongoing and planned power plants shall be managed by subsidiaries to be established financially dependent and after completion these plants will be equitized.
Seventhly, “Promotion of science and technology” theme will be carried out. This is the focal theme of the year, marking a new progress in the perception in order to gradually keep pace with the world science and technology development, being a premise for improving the efficiency in management and administration of all facets of the entire EVN during 2017 – 2020 with vision to 2030. The Board of Directors issued a Resolution on the year’s theme, in which all the objectives and specific contents as well as the solutions for realization were instructed.
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Collectives and individuals being awarded Emulation Flags at the Conference – Photo: Xuan Tien.
Eighthly, continuing development of EVN culture. EVN culture should be deployed synchronously from the top to the bottom, intensively and extensively. Each employee of EVN must be an ambassador to disseminate EVN culture to the community.
Facing the upcoming difficulties and challenges, the Chairman Duong Quang Thanh expressed his trust in the employees of EVN in overcoming all the difficulties and challenges to excellently accomplish all the tasks and duties.