Vietnam power monopoly to split into three HANOI, Vietnam: Vietnam's state-owned power monopoly is developing plans to divide into three independent divisions that will be responsible for power generation, transmission and distribution respectively, an official said Monday. The change, still in the planning phase, will take place over a 10-year timeframe, the Electricity Corp. of Vietnam official said. EVN is currently responsible for both production and distribution of electricity throughout the country. But the government-run Vietnam News over the weekend quoted Deputy Industry Ministry Hoang Trung Hai as saying "an open market will be established ... to end the EVN monopoly and raise competitiveness and service standards in the power industry." That would mean that EVN would need to prepare for more market competition. The corporation, which is now limited in the amount it can charge customers for power, rarely has money to upgrade or expand its services and must seek investor help to do so. Last week it signed an agreement with British energy giant BP PLC to buy power from a 720-megawatt power plant BP is building in Ba Ria-Vung Tao province, and may in the future sign similar deals with other producers. According to the Vietnam News report, "to ensure its ...development" EVN will need "about $1.47 billion investment capital every year from now until 2005." "That target cannot be met without input from the private sector," it said. It quoted Hai as saying that responsibility for power production "will be diffused among different producers." EVN's plan to divide its operations into three distinct areas is expected to help the corporation cope with market liberalisation. Separately, the newspaper said Vietnam is drawing up an Electricity Law that will be submitted to the National Assembly once completed. No timetable was given for the new law's preparation, and Ministry of Industry officials were not able to comment on the report Monday. (AP)
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