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Politburo encourages private investment in energy sector
By Pham Nhat
Wednesday,  Feb 19, 2020,16:52 (GMT+7)

Politburo encourages private investment in energy sector

By Pham Nhat

A 40-megawatt wind energy plant in the south-central coastal province of Ninh Thuan. The Politburo has urged private investors to get involved in renewable energy projects – PHOTO: VNA

HCMC – The Politburo has called for the restructuring of State-owned enterprises (SOEs) in the energy industry and has encouraged the private sector to get involved in energy development, according to a new resolution.

General Party Secretary and State President Nguyen Phu Trong, working on behalf of the Politburo, the most important decision-making committee of the Party, signed a resolution guiding a strategy for Vietnam’s energy development until 2030 with a vision toward 2045.

The resolution stated that ensuring national energy security serves as a catalyst for socioeconomic development. The Politburo encourages the development of sustainable and environmentally friendly energy.

SOEs in the energy industry should be comprehensively restructured to focus on key sectors, separate business from the State management functions, adopt advanced management models and practices, and improve their international credit ratings.

Also, they should be transparent in their operations and enhance the efficiency of the exploitation and use of the national energy infrastructure, according to the resolution.

The Politburo stressed the need to fine-tune regulations on the assessment of resources and assets based on circumstances and international practices and to restructure ineffective State-owned energy enterprises and their loss-making projects.

The committee also urged the sale or long-term lease of SOEs’ power plants, fuel depots and oil refineries on a trial basis.

Systems and policies applicable to a number of important energy projects, especially those involving power supplies, should be amended.

In addition, capital should be sufficiently allocated to State-owned energy enterprises so that they can fulfill strategies and tasks aligned with the country’s defense and security.

The Politburo has ordered authorities to create a favorable and transparent environment, publish master plans and lists of investment projects and call on the private sector to develop energy projects at home and abroad.

“Attention should be given to power generation projects and wholesale and retail energy sales in line with market systems,” according to the resolution.

The Politburo also called for further encouragement and attraction of foreign investment in the energy industry. The equitization of State-owned energy enterprises should be fast-tracked.

Also, investment systems should be effective, while administrative procedures should be further reformed to ensure the progress of electricity projects.

The Politburo ordered a review of policies on land, site clearance and compensation and measures against speculation, profiteering and vested interests in the energy sector.

Financial policies should be adjusted in a way that promotes private investment, especially through public-private partnerships.

Credit policies should be adopted in a flexible and efficient manner so that energy producers, especially those involved in green energy, can have easy access to funding sources.

Further, tax policies should be streamlined to encourage the production and use of clean and renewable energy, including wind and solar energy.

The Politburo stated that energy should satisfy domestic needs to realize the targets set in a strategy for socioeconomic development from 2021 to 2030.

Primary energy should be equivalent to some 175-195 million tons of oil by 2030 and 320-350 million tons of oil by 2045.

The total capacity of power sources should amount to 125-130 gigawatts, while power output should turn out some 550-600 billion kilowatts per hour.

The proportion of renewable energy sources in the total primary energy supply should reach 15%-20% by 2030 and 25%-30% by 2045.

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