Vietnam’s Ministry of Public Security has concluded an investigation into a case involving the Vietnam Electricity Group (EVN), the Ministry of Industry and Trade, and several provinces and cities. The Ministry of Public Security has proposed prosecuting Mr. Hoang Quoc Vuong, former Chairman of EVN and former Deputy Minister of Industry and Trade, along with 11 other accomplices, on two charges: “Abuse of position and power while performing official duties” and “Negligence causing serious consequences.”
The conclusion by the Ministry of Public Security states that Mr. Hoang Quoc Vuong abused his position and power to propose the approval of a project’s supplementary planning and intentionally requested a price mechanism of 9.35 US cents/kWh for the project, exceeding the scope permitted by the Prime Minister. Mr. Vuong’s intentional actions resulted in favorable conditions for the Trung Nam – Thuan Nam Solar Power Plant to receive preferential electricity prices.
Despite subsequent directives from the Prime Minister instructing the Ministry of Industry and Trade to strictly adhere to the resolution, Mr. Vuong ignored the directives, resulting in losses of over 900 billion VND.
According to sources, the Trung Nam – Thuan Nam Solar Power Plant is part of a project that includes a 500 kV substation and a 220/500 kV transmission line combined with a solar power plant. The project was developed by Trungnam Group with a total investment of 12,000 billion VND. It comprises a 450 MW solar power plant, a substation, and over 17 km of 500 kV double-circuit transmission lines and four 220 kV lines.
This is also the largest renewable energy project of Trung Nam Group and the second-largest solar power project in Vietnam after EA Sup 1-5.
The project investor is Trung Nam Thuan Nam Solar Power Joint Stock Company, a member of Trung Nam Group. Mr. Nguyen Tam Thinh, Chairman of Trung Nam Group, is currently the Chairman and legal representative of this enterprise. The registered capital is over 2,411 billion VND.
According to HNX, the company last disclosed its business results for 2022. In that year, Trung Nam Thuan Nam recorded a profit after tax of 81 billion VND, a decrease of nearly 80% compared to the previous year.
As of December 31, 2022, owner’s equity reached 2,423 billion VND. The debt-to-equity ratio was 3.68 times, corresponding to liabilities of over 8,900 billion VND. Of this, bond debt amounted to nearly 5,000 billion VND. Thus, Trung Nam Thuan Nam’s total assets reached over 11,300 billion VND.
In April 2024, Trung Nam sent a petition to the Government seeking assistance for the Trung Nam Thuan Nam project. Specifically, a portion of the project’s 172 MW capacity was halted by EVN in September 2022 due to non-compliance with regulations for enjoying the FIT (fixed electricity selling price).
Of the 172 MW, 86 MW on an area of about 108 hectares was implemented by the investor without complying with legal regulations, meaning the land had not been approved, and environmental impact assessments and fire protection inspections had not been carried out. In October 2023, the Ministry of Industry and Trade inspected the portion of the power plant on the 108-hectare area based on confirmations of fire protection conditions, environmental impact assessments, and land lease contracts… to put it into operation.
In a recent petition to the Prime Minister, Trung Nam stated that the electricity output from October 2020 to August 2022, approximately 687 million kWh, corresponding to the 172 MW capacity, had not been paid by EVN. This output is equivalent to 813.6 billion VND. According to the investor, they have repeatedly proposed interim payments at a rate of 40% of the frame price for transitional solar power plants, but the issue remains unresolved.
Additionally, from October 2023 to the present, EVN has only partially paid for the electricity output corresponding to the plant’s capacity in Phuoc Minh commune. The total unpaid amount corresponding to the remaining area is approximately 274.2 billion VND.
In response, EVN representatives stated that they had been dispatching the solar power plant’s capacity to the grid and making payments for the output and capacity according to Trung Nam’s license. They also acknowledged the output from the excess capacity pending specific regulations. At that time, EVN also stated that they were “actively coordinating with relevant agencies to address Trung Nam’s difficulties.”
“The Art of Energy Pricing: Unraveling the Devastating Impact of a Misguided Discount”
The Ministry of Public Security’s Investigation Security Agency has revealed that the Trung Nam-Thuáºn Nam Solar Power Plant project was incorrectly granted a preferential electricity rate of 9.35 US cents/kWh, instead of the correct rate of 7.09 US cents/kWh. This error has resulted in significant financial losses for the state-owned corporation EVN, totaling over 900 billion VND.
Unlocking Solar Power: The $1.5 Million Incentive Behind the Trung Nam – Thuan Nam Solar Project
Former official Hoang Quoc Vuong has been found to have acted out of self-interest by creating a mechanism that allowed the Trung Nam – Thuan Nam solar power plant project to benefit from preferential electricity prices. In exchange for this favor, the enterprise ‘gifted’ him VND 1.5 billion.
Indictment Sought for Former Deputy Minister of Industry and Trade Hoang Quoc Vuong
The Investigative Security Agency (Ministry of Public Security) has completed an additional investigation into a case of “Abuse of Power and Negligence with Serious Consequences” involving the Ministry of Industry and Trade and several provinces and cities.
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