1. 1 REGULATORY ISSUES AND POWER SECTOR RESTRUCTURING 1. EVN in brief 2. Organizational structure 3. Key performance indicators 4. Regulatory body 5. Restructuring power sector

2. 2 EVN in brief  Vietnam Electricity (EVN) is a state economic group founded in 2006, engaged in generation, transmission and distribution of electricity in the whole Vietnamese territory.  EVN is responsible for electricity supply to meet the demand for development of economy and consumption needs of the people with the power tariffs approved by the Prime Minister.  EVN takes the responsibility for investment of power generation and network expansion to meet the power demand of the country

3. Current Organization Structure EVN Headquarter 28 Power plants National Dispatching Center 11 Distribution Companies National Power Transmission Co. 4 PECCs Institute of Energy EVN Telecom IT Center Single Buyer Company 4 Thermal PMU 3 Hydro PMU 3 Mechanical Companies PMU of Nuclear Power & Renewable Energy Information Center PMU of Civil Construction 4 Schools

4. 4 18 JSC in power generation, Banking, finance, real estate, Security and others Vietnam Electricity Institute of Energy 4 Schools 6 Power plants NLDCSB 4 Thermal PMU 3 hydro PMU Nuclear & Renewable En PMU Civil Construction Information Center IT Center 8 indepen- dent co.: 1. PC1 2.PC2 3.PC3 4.PC HaNoi 5.PC Ho Chi Minh 6.TPP Uong Bi 7.HPP Đ-H-Đ 8.EVNTelecom 25 joint-stock companies: - 12 HPP JSC - 5 TPP JSC - 4 PECC JSC - 3 EMC JSC - PC JSC Khanh Hoa 9 one- member ltd. companies: 1.NPT 2.PC Đong Nai 3.PC Hai Phong 4.PC Hai Duong 5.PC Ninh Binh 6.PC Đa Nang 7.TPP Can Tho 8.TPP Phu My 9.TPP Thu Đuc

5. 5 Key peformance indicators 2008 1. Chartered capital: 3 UDS bils 2. Total staff 2008: 85.000 (including joint- stock companies) 3. Installed capacity: 10.128 MW (account for 64,52% of total national capacity) 4. Sales:65.93 billion kWh (sales growth rate 12,8%/GDP 6,23%) 5. Retail contracts:10.553.390 contracts to end-users 6. Average retail tariff: 5.12 cent/kWh 7. Total asset 2008: 10 USD bils USD

6. 6 Installed capacity 1996-2008 Installed Capacity Capacity Consumption

7. 7 Sub Total 10.1285.5693.078 Hydro 5.13578976 TechnologyEVN# EVNIPP/BOT Coal 1.514445 Oil + Gas 3.4481.9682.102 %64,5215.8719,61 TOTAL18.775

8. 8 HANOI 9.07% PC1 22.19% PC3 7.17% HAIPHONG 3.49% DONGNAI 7.33% PCHCM 18.75% PC2 25.75% NINHBINH 1.02% HAIDUONG 2.3% DANANG 1.5% KHANHHOA 1.3%

9. 9 Consumption structure 2008 Residential Others Agriculture, Forestry & Fishery Industry & Construction Commercial & Hotel

10. 10 6KV 10KV 15KV 22KV 35KV ELECTRIFICATION 220V 7,493 km7,622 MVA50,564 km10,395 MVA City100% Province100%Commune97,26%Household94,03%

11. 11 Power sector structure PVNTKV IPPs # BOTs EVN GENCOs Power plant PMUs Nation al Dispat ching Center Nation al Trans missio n Cor. DISTRIBUTION (BULK & RETAIL) SERVICEGENERATION PCs SB Government MOIT ERAV

12. 12 Electricity Regulatory Authority of Vietnam Main functions and responsibilities To submit the national power master plan and the power sector reform program in line with the roadmap for establishment and development of the power market in Viet Nam for the Prime Minister's approval. Review and monitor the power development plan at central city/province level; To appraise new issuance, amendment, and withdrawal of electricity activity license granted to organizations and individuals participating in electricity activities; To promulgate fees and surcharges related to the activity of the power market; fees for transmission and distribution; fees for participation and transactions in the power market; fees for regulation; surcharges for using ancillary services and other types of fees To appraise tariffs framework for power generation, bulk power supply;

13. 13 Electricity Regulatory Authority of Vietnam Main functions and responsibilities (con.) To approve bilateral Power Purchase Agreement (PPA); To monitor the power supply and power system operation to assure suppy-demand balance To appraise financial assistance given to Demand - side management (DSM) and Energy efficiency (EE) projects To regulate competitive activities amongst and between participants in the power market in accordance with competition regulations; settle claims and disputes arisen from these activities in the market; put forward the authorized level options for merger or unbundling electricity entities in order to ensure the transparent competitive activities in the market. To design a plan for construction and development of different phases for the power market; participate in development of the market and power trading with outsiders. To superintend and inspect the implementation of Electricity law Others

14. 14 1. Installed capacity of each GENCO will not exceed 25% total installed capacity of the whole system; 2. Financial viability for investment to new power plants; 3. New GENCOs will have equivalent capacity; 4. New GENCOs will have equivalent total asset; 5. New GENCOs will have equivalent average costs per kWh; 6. Mixed technologies (hydro and thermal power); 7. Obtaining the economy of scale on one river run-off; 8. Regardless the geographical difference; 9. Including existing power plants and on-going construction power plants. GENCOs options Grouping principles

15. 15 a) GENCO: a group of power plants under the form of parent - child company. Child companies will be: independent accounting companies, one-member ltd companies, joint-stock companies. b) GENCO has consistent business strategy through out all its members basing on each independent member benefits. GENCO will offer one price for all electricity generated by its members to the generation competitive market; or parent company reviews and agrees with child companies the bid price prior to offering to the market. c) GENCO uses its owned capital and mobilizes capital from other economic entities for new power plant projects. GENCOs options Organization and activities

16. 16 a) Stage 1: Establish 100%-state-owned GENCOs for stable organization and operation in transition period; including one strategic GENCO (consists of large multi-purpose hydro power plants and strategic power plans) and 3 other GENCOs (by grouping the other existing plants and on-going construction plants) b) Stage 2: Following their own strategy, GENCO will be equitized. GENCOs options Establishment process

17. 17 Electrification

18. Investment (Billion USD) 2008200920102008-2015 REQUIRED CAPITAL 2.34.46.343.9 Generation 1.22.13.822.5 Transmission 0.31.01.17.7 Distribution 0.40.6 4.8 Debt clearance 0.40.60.89.0

19. 19 THANK YOU FOR YOUR ATTENTION!