Striving to reach new heights

(Baonghean) - Nghe An Energy Development Corporation, formerly Ban Ve Hydropower Joint Stock Company, was established with the goal of researching and investing in hydropower and renewable energy projects in the North Central region. Over the years, the company has contributed to the economic development of the province and integrated into the overall development of the country.

With its main business being investment and power generation, Nghe An Energy Development Corporation is currently the investor of two hydropower projects in the province: the Nam Mo hydropower project with a capacity of 16MW in Ta Ca commune, Ky Son district, completed and generating electricity from the end of 2012; and the Nam Non hydropower project with a capacity of 20MW in Xa Luong commune, Tuong Duong district, completed and generating electricity from August 2014.

Mr. Dao Duy Tan, General Director of Nghe An Energy Development Corporation, stated: After more than three years of operation, the Nam Mo Hydropower Project has achieved annual revenue of over 50 billion VND, and the Nam Non Hydropower Project nearly 60 billion VND; the total revenue of both plants is over 110 billion VND. Annually, in addition to the VAT tax payable as per regulations, the company also pays over 10 billion VND in water resource tax and forest environmental service fees. Since the company's hydropower plants began operation, it has received annual commendations from the Nghe An Provincial People's Committee for its tax payment achievements; it is a leading unit in social welfare work and actively participates in local community activities.

Installing turbines at the Ban Ve Hydropower Plant. (Photo courtesy)

The hydropower plants invested in by the company all utilize low-head, bulb-type turbine technology. Low-head hydropower is considered green hydropower. The advantage of this technology is that it maximizes the utilization of hydropower resources on large rivers for electricity generation, as the generating towers are very low, only 2.5m. The structures are simple, flooding is minimal, and there is virtually no need for displacement of people, only compensation for agricultural land along rivers and streams. Low-head hydropower plants regulate water levels daily, thus not significantly affecting the natural flow regime of the river. The reservoir water level changes only slightly during the day (0.5m), creating a beautiful landscape and suitable areas for aquaculture. The reservoirs have small capacities, and the water inflow is regulated daily, so it does not affect downstream water supply during the dry season.

Low-head hydropower projects have a relatively small reservoir surface area, minimizing displacement of people and land acquisition. A characteristic of low-head technology is that the water flow remains almost unchanged from its natural state, thus having minimal impact on the environment.

Through the operational process, it has been observed that the regulation and operation of the Nam Mo hydroelectric reservoir are primarily based on the actual water inflow; whatever amount of water flows into the reservoir must be released downstream, treating the water passing through the structure as a natural flow. Therefore, some reports that the Nam Mo hydroelectric plant's water release caused boats to be washed away and roads to erode are inaccurate; the information that the investor had to settle and pay the contractor an additional amount of over 50 billion VND is also unfounded.

Nam Mo - Ky Son Hydroelectric Power Plant.

To construct the Nam Mo Hydropower Project and the Nam Non Hydropower Project, the company selected two construction partners. For the Nam Non Hydropower Project, the main contractor was Song Da 5 Joint Stock Company, a subsidiary of Song Da Corporation. The project basically met the set schedule and the quality of construction was good. For the Nam Mo Hydropower Project, in 2010 and 2011, Corporation 36 and Nghe An Energy Development Corporation Joint Stock Company signed two construction contracts: Construction Contract No. 17/HĐXD-BVC-P2 dated December 22, 2010 and Construction Contract No. 01/2011/HĐXD-BVC-P2 dated February 24, 2011; the total value of the two contracts was VND 187.59 billion.

During the construction process, due to some work not being performed by the contractor, the contractor's value of work based on the contract unit price was nearly 160 billion VND, of which the investor paid 159.3 billion VND. Thus, according to the contract unit price, the investor has fully paid the contractor; the remaining unpaid amount is the amount arising from price increases in labor and materials during construction.

On November 16, 2015, Corporation 36 filed a lawsuit against the investor in the Vinh City People's Court, demanding that the investor finalize the settlement and pay the contractor an additional amount exceeding 50 billion VND. The case was accepted and tried by the Vinh City People's Court on April 20 and 25, 2016, resulting in Judgment No. 04/2016/KDTM-ST on April 20 and 25, 2016. The Nghe An Provincial People's Court heard the appeal on September 9 and 12, 2016, resulting in Judgment No. 12/2016/KDTM-PT on September 12, 2016. Accordingly, the Court accepted all the figures unilaterally presented by the contractor without consulting any specialized agencies. The Court's acceptance of the contractor's self-provided figures resulted in a loss of nearly 30 billion VND for the company.

Regarding this matter, Mr. Dao Duy Tan, General Director of Nghe An Energy Development Corporation, stated: “Disagreeing with the conclusions of both the first-instance and appellate judgments, our company filed a complaint with the Supreme People's Court. After carefully reviewing the case file, the Supreme People's Court issued Decision No. 34/2016/KN-KDTM dated November 15, 2016, appealing both the first-instance and appellate judgments, with the following content: 1) Appealing the business and commercial appellate judgment No. 14/2016/KDTM-PT dated December 24, 2016, of the Nghe An Provincial People's Court between the plaintiff, General Corporation 36, and the defendant, Nghe An Energy Development Corporation. Requesting the Hanoi High People's Court to review the case in a supervisory manner, aiming to annul business and commercial appellate judgment No. 14/2016/KDTM-PT dated December 24, 2016. 1) The judgment of the Nghe An Provincial People's Court dated December 24, 2016, and the first-instance commercial judgment No. 04/KDTM-ST dated April 20 and 25, 2016, of the Vinh City People's Court, Nghe An Province, are hereby remanded to the Vinh City People's Court, Nghe An Province, for retrial in accordance with the law. 2) The enforcement of the appellate commercial judgment No. 14/2016/KDTM-PT dated December 24, 2016, of the Nghe An Provincial People's Court is temporarily suspended until a cassation decision is made by the High People's Court in Hanoi. This is an accurate and objective decision ensuring fairness and legality by the Supreme People's Court.”

Thanks to the continuous efforts of its leaders and employees, Nghe An Energy Development Corporation has been building a solid position for itself and reaching new heights.

Van Truong