HA NOI (VNS)-- The Electricity of Viet Nam (EVN) Group plans to issue bonds as a way to tackle its mounting debts.
Dinh Quang Tri, Deputy General Director of EVN, said at a Ha Noi press conference on Monday: "EVN is considering and working on procedures to issue bonds worth VND9,000 billion [US$435 million] in a period of 2-3 years to repay its debts for electricity purchase" .
According to the Electricity Regulatory Authority of Viet Nam, EVN lost VND56 ($0.0028) per 1kWh of electricity in 2011.
The authority said one of the main reasons for EVN losses was the unfavourable weather conditions which affected the hydroelectric plants' electricity production during the dry season.
Other reasons given included fluctuations in currency exchange and high fuel prices which increased production costs.
The authority's officials added that the Ministry of Industry and Trade is reviewing the electricity supply capacity for next year based on the balance of losses in order to submit to the Prime Minister a price adjustment plan for 2013.
"The price adjustment will try to lesson the effect on local production and customers' psychology," said Dang Huy Cuong, the authority's chief.
According to EVN, electricity production for the first 11 months of 2012 reached over 105 billion kWh, an increase of 13.4 per cent on the same period last year. VNS