Reporter: Duyen Hai 3 Thermal Power Plant is the first power plant under EVNGENCO 1 which is entitled to take the initiative in importing coal. Can you tell me more about the reasons behind this decision?
Mr. Nguyen Khac Son: Given an urgent requirement for securing adequate fuels for Duyen Hai 3 Thermal Power Plant in order to promptly add a generation source for power supply to Southern provinces and cities, the Prime Minister has permitted EVN to take the initiative in importing coal.
The technology and equipment of Duyen Hai 3 Thermal Power Plant suit coals of Indonesia and Australia. However, Indonesia gains an advantage over Australia because it is closer to Vietnam, transportation expenses thus will be lower and it is capable of supplying coals in big quantities. So far EVNGENCO 1 has imported approximately 2.350 million tons of coals and in the coming time about one million tons of coals will be imported.
Reporter: During negotiation with Indonesia, have you met any difficulties?
Mr. Nguyen Khac Son:
EVNGENCO 1 has not had any experiences and profound knowledge of the world coal market as well as the best international practices in trading coals. When proceeding negotiation to procure coals from Indonesia, there are a lot of discrepancies in regulations of Indonesia and Vietnam, therefore EVNGENCO 1 has met a lot of difficulties. The procurement and negotiation process has been performed in many stages and all the working results have been reported to the Prime Minister.
In addition, Duyen Hai coal seaport has been under dredging. Consequently the use of big or small vessels is subject to the dredging progress. This is also another difficulty faced by the bid inviter and bidders.
Securing sufficient coals for power plants is an urgent issue
Reporter: How has EVNGENCO 1 resolved these difficulties?
Mr. Nguyen Khac Son:
Coal importing process of Duyen Hai 3 Thermal Power Plant has been conducted via international competitive bidding. During the procurement process and negotiation sessions, EVNGENCO regularly reported to EVN for obtaining instructions by the Prime Minister in order to promptly address difficulties and obstacles with a view to import of sufficient coal for commissioning and commercial operation of the plant.
It is crucial that a suitable coal supplier should be selected with stable prices as well as security issues and other issues that may happen in the coal importing process should be handled properly. In short, we have to select a bidder who is adequately capable of exporting coal.
PV: If in the future EVN will completely take the initiative in importing coal, in your opinion, what legal regulations should be supplemented?
Mr.Nguyen Khac Son: Giving EVN the initiative in importing coal is necessary, but the matter is how it should be done. If all organizations, plants, corporations under EVN can directly import coals, there may be a waste of human resources and a market disturbance. Therefore, with the aim that the coal import of EVN becomes more simple and proactive, a professional organization should be established to take charge of importing coal and supplying to EVN’s power plants.
However, as per current regulations, coal import rests with responsibilities of the coal authorities. As a result, if EVN is allowed to directly import coal by themselves, legal regulations of the State should be modified and revised in a timely manner to be in line with international practices.
Reporter: Thank you!