The government proposed that the central budget allocate more than VND 2,526 billion to EVN from the medium-term public investment plan reserve fund to extend the power grid to Con Dao.
This content is stated in the Government's submission on supplementing the 2021-2025 medium-term public investment plan for central budget capital, at the meeting of the National Assembly Standing Committee on the afternoon of January 8.
In 2022, Con Dao (Ba Ria - Vung Tau province) will be granted over 15 MW of electricity, using diesel. However, this level does not meet the actual needs of this locality and the price is high. The investment policy for the project to bring grid power to Con Dao was approved by Prime Minister Pham Minh Chinh in June 2023. The total investment of this project is about 4,950 billion VND, of which the capital from the central budget is about 2,526 billion VND, the remaining capital is EVN's own capital, nearly 2,424 billion VND.
At today's meeting, Deputy Minister of Planning and Investment Tran Quoc Phuong said that the Government proposed that competent authorities assign a central budget capital plan of more than VND 2,526 billion to EVN to extend the power grid to Con Dao.
According to him, the demand for electricity in Con Dao is increasing day by day, and the local diesel power source is not enough to meet the demand, leading to a shortage of supply for investment projects here.
On the other hand, according to EVN's report, the cost of producing electricity from diesel is high (about 5,000-6,000 VND per kWh), while the highest selling price of household electricity is 3,151 VND per kWh, meaning the more electricity is generated, the more loss is incurred.
Therefore, supplying electricity from the national grid via a 110 kV submarine cable across the sea is the most optimal solution, ensuring the requirements for stable and safe power supply for the island's grid, as well as aiming to reduce carbon emissions to zero by 2040 and protect the environment and ecology of Con Dao National Park, according to Deputy Minister Tran Quoc Phuong.
Deputy Minister of Planning and Investment speaks at the meeting of the National Assembly Standing Committee on the afternoon of January 8. Photo: Hoang Phong
After reviewing this content, the Finance and Budget Committee agreed to allocate more than VND 2,526 billion to EVN to implement the project of supplying grid power to Con Dao. However, the Committee requested the Government to take responsibility and commit to choosing the grid power supply option as the most optimal, ensuring efficiency, saving investment resources and reasonable costs.
The appraisal agency also proposed that the Ministry of Industry and Trade be the sector management agency responsible for appraising the project feasibility study report. This ministry is also responsible for checking, supervising, and inspecting to ensure that there is no policy exploitation, group interests, loss, or waste.
In addition, the Finance and Budget Committee noted that the handover and addition of capital and assets after the completion of this project must comply with regulations on management and use of state capital for investment, production and business at enterprises and management of public assets.
Vice Chairman of the National Assembly Nguyen Duc Hai said that the National Assembly Standing Committee agreed to submit to the National Assembly for consideration and decision on the allocation of this capital to EVN from the medium-term public investment plan. However, the Government needs to review to ensure the accuracy of data and fully assess the impact to ensure strictness when implementing projects using public investment capital.
According to the investment policy for the project to supply electricity to Con Dao approved by the Government, the power transmission line to Con Dao will include 23.1 km of overhead wire; over 73 km of submarine cable and 6.1 km of submarine cable on the island along with other items. The total estimated investment is about 5,000 billion VND.
The electricity demand in this island district by 2025 is more than 24.5 MW and will reach 114.4 MW by 2045.
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