INVESTMENT PROCESS

Development of HCMC electricity is classified into four phases as follows:

Phase 1: Before 1975

Previously, southern grid was mainly developed in urban areas, many factories, power lines were built completely, especially in Saigon and some other major cities. The largest power center was Cho Quan power plant built by the French in 1923, run by coal then by oil in 1972.

In 1960, South electricity production reached 286.7 million kWh. Only Saigon - Cho Lon, Bien Hoa consumed 220 million kWh. Da Nhim Hydroelectric plant provided 160 MW supplying for Saigon, which was overloaded or interrupted during transmission. To ensure safety of Saigon grid and its suburbs, the diesel generators were invested more in old power plants, military bases and the neighboring provinces, especially Thu Duc power plant was installed a diesel generator capacity of 18MW

In ten years, from 1964 to 1974, although the total installed capacity of hydroelectricity , thermal power diesel, gas turbines in the south was 801.3 MW unevenly distributed across the South, a lot of equipment in power plants after a long period of exploitation must be overhauled, repaired or damaged (such as Da Nhim hydroelectric plant having rusted pumps), so the actual capacity when takeover of the south in 1975 was only 481 MW.

Phase 2 (from 1976 -1987): maintaining power grid, demand for business and light activities of the city.

On August 7, 1976, Ho Chi Minh City Service of Management and distribution was established, with 4 distribution divisions with a quite heavy task that was distributing and trading electricity in inassociated and degraded including 632 km of medium voltage 15 KV transmission line; 415 km of 15 KV and 6.6 KV underground cable; 950 km of low voltage, 1824 distribution transformer stations with a total capacity of 639 MVA. Especially electricity loss rate wasover 21% and most suburban area of the city did not have the electricity grid.

The early years after liberation was extremely difficult period of our country, futher source was was not built, grid was developed on the maintaining old, the new patchwork, and the grid was extended to suburbs in order to develop rural economy. During this period, electricity consumption increased only 3% average per year, even in 1979, 1986 a production was lower than the previous year. Due to lack of resources, the rotating power cuts become popular over years and the voltage up to 20-30%, not ensureing the quality of electricity and without safety conditions required for power users

In this difficulty time, HCMC Power Service launched multiple emulation movements, encouraging staffs to overcome all difficulties and ensuring the management and operation of power to supply in the best conditions. Thousands of technical initiatives have been applied in grid maintenance, rehabilitation for hundreds of transformers to be active again. Through emulation movements, many positive factors, typical advances appear, forming in staffs - future electrical workers of the city, a new style of work, as premise for the step on construction and development road of our company later.

Also in 1978, the development of national grid to suburban areas have been deployed to serve the irrigation pump station for suburban districts and partly for lighting service activities contributing to rural social economic development.

Phase 3 (from 1988 -1995): Upgrading and developing the grid for social and economic renewal of the city.

In 1987, power grids was in the risk of unable to receive Tri An hydroelectric plant, city leaders and power industry leaders agreed with emergency policies to deploy the power grid renovation of Ho Chi Minh City, though without materials and equipment supported from abroad. With many source of being mobilized, all personnel of HCMC Power Service tried to carry out grid renovation programs with the theme "Rehabilitation in the shortest time and developing the grid to receive power from Tri An.

In three years, from 1988 to 1990, HCM Power Service renovated and built 338 km of medium-voltage lines, 381 km of low voltage lines, 1663 transformer stations with total capacity of transformers increasing 238 MVA... especially connecting the national grid to Can Gio district, electrification pilot in Trung Lap Thuong commune, Cu Chi district, creating prerequisites for rural electrification program in the next stage.

However, due to the rapid development of city economiy, Tri An power plant only reduced pressure of lack of electricity in 1989, 1990, 1991, being high tension in the six months dry season and recurring status of 3-4 days cut off per week. To overcome this situation, Electricity sector had developed mixed gas turbine plant in Ba Ria, Thac Mo Hydroelectric Plant, Vinh Son Plant with a total capacity of the south increasing up to 316 MW. Also Bac Nam 500kV, super-high-voltage transmission line was also built in a short time, to bring extra power from North to South.

With above efforts, the results are:

- Improving grid ability to receive power from 500 KV transmission line to meet load increase of 20-22% per year.

- No rotating power cut by local overload. Problems in following year are less than those of previous year.

- Reducing Power loss, increasing output power.

- Implementing the rural electrification program of 18 communes, creating a premise for the electrification program of all suburban communes before 2000.

- Increasing the volume of the grid, managing 144 line with a total length of 2250 km, more than 2100 km low voltage lines, 7,600 transformer stations with total capacity of over 1650 MVA, providing power to more than 500,000 customers.

Phase 4 (from 1996 to present): Intensive investment Period, improving technology and management to meet enough power for needs of socio-economic development of the city.

Power was defined as a key economic sector having an important role in the industrialization and modernization of our country. To perform this important task, through many generations HCMCPC’s employees always unite and always strive to complete assigned tasks, to meet increasing electricity needs of the city fully and timely. In 1998, average of commercial electricity production per capita reached 800 kWh / year, in 2000 over 1000 kWh / year, 2003 nearly 1350 kWh / year (7 times higher than in 1976). If in 1995, commercial electricity only reached 2815 million kWh, in 2004 9 billion kWh. Maximum power output was 31.54 million KWh, corresponding to the maximum system capacity of 1655.7 MW. Averagely per year, the number of customers increase approximately 10%, and commercial electricity by 14%. The reduction of power losses was a throughout front, over the periods, continuously effort of each employee from technology to business management so power loss reduction from over 20% in 1986 continuously , reduced down and now less than 9%. Distribution ability of grid in 1976 increased from 250 MW to 650 MW in 1995 and now 1700 MW. The Company has completed the electrification program in 1998, and was the first company in our country to fulfill this important task. Since 1996, the company also take over to manage 110 KV power grid, the city grid has been improved gradually , according to advanced technical standards, to keep pace with region. Due to good management power, an average price has exceeded 300 VND / kWh compared to the plan, brings benefits to electricity industry several trillion per year