G1 00126 BUSINESS STRATEGY OF THAC MO HYDRO POWER PLANT NT JOINT STOCK COMPANY STAGE 2010-2020, VISION 2025 CHIẾN LƯỢC KINH DOANH CỦA CÔNG TY CỔ PHẦN NHÀ MÁY THỦY ĐIỆN THÁC MƠ NT GIAI ĐOẠN 2010-2020, TẦM NHÌN 2025

G1 00126 BUSINESS STRATEGY OF THAC MO HYDRO POWER PLANT NT JOINT STOCK COMPANY STAGE 2010-2020, VISION 2025 CHIẾN LƯỢC KINH DOANH CỦA CÔNG TY CỔ PHẦN NHÀ MÁY THỦY ĐIỆN THÁC MƠ NT GIAI ĐOẠN 2010-2020, TẦM NHÌN 2025

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GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM

CAPSTONE PROJECT REPORT

BUSINESS STRATEGY OF THAC MO HYDRO POWER PLANT

JOINT STOCK COMPANY

STAGE 2010 - 2020, VISION 2025

Nguyen Thanh Phu

Nguyen Van Thu

Tran Le Minh Huynh Van Khanh

Class GaMBA01.D0109

HO CHI MINH 2010

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Thac Mo hydro power plant

Without a strategy, an organization is like a ship without a rudder, going around

in circles It’s like a tramp; it has no place to go

JOEL ROSS AND MICHAEL KAMI

Theories and empirical data used in this capstone project report were collected by ourselves and quoted partly from English and Vietnamese references such as textbooks, journal papers, newspapers, internet and other materials Data used for analyses of Thac Mo were collected directly at Thac Mo Hydro power plant Joint- stock Company, data for the other competitive companies such as Can Don, Ham Thuan-Da Mi, Ba Ria were gathered from announcements stored in their websites Basing on these data and the approved research proposal, we have completed this capstone project report All the recommended business strategic solutions to Thac

Mo in this capstone project report are based not only on theories but also on our experiences and intuition Through this research, we have gained some valuable experiences in formulating a real strategy for a company

In addition, we would like to give thanks to our tutors for supporting us

enthusiastically, leaders of Thac Mo for valuable data and information

Finally, we would like to give special thanks to our employer and families for giving us time, financial aids and energy to accomplish the course

Please receive the deepest and the most sincere thanks from us

Authors Group 6 - Class GAMBAOI.D109

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FIGURE INDEX:

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Griccs) Capstone project report GaMBAO1.D109-Group N0.6

Table IV-1§ :Training and budget Schedule in 2010-2015 : + 525222225552 89

Table 0-1: Revenue and cost of Thac Mo JSC 2008-2009 Ặ - QC TS HH sec 98 Table 0-2: Revenue and cost of Thac Mo JSC 2010-2020 Q2 21111121222 se2 99 Table 0-3: DISPOSABLE CASH FLOW 2008-2009 100 Table 0-4: DISPOSABLE CASH FLOW 2010-2020 0.00 occccc cc coccecccccseececeeeeeee 101 Table 0-5: Revenue and cost of services in 2008-2010 Q sSnnS S1 xe 102

Table 0-6: Overhaul cost period 2008-2010 S5 11522251118 2251111152111 1 x2 102

Table 0-7: Revenue and cost-Ba Ria JSC 2008-2009 ccccc co ccccccceececees 103 Table 0-8: Revenue and cost-Can Don JSC 2008-2009: «0.00 00o.occ cc ccceceeccccceeeeeeeeeeees 103 Table 0-9: Revenue and cost-Ham Thuan-DaNhim JSC 2008-2009, plan for 2010-

0800 a" 104 Table 0-10 : Electricity prices for industry in OECD countries - 105 Table 0-11 : Electricity prices for households in OECD countries 106

¬ ( STO} ro ct repon (saAMBAO] [)109-Croup NÖ 6

From the very first days, a huge investment and national energetic security in most countries have made the production and trading of power a natural monopoly Vietnam’s power sector from production, transmission and distribution, with no exception, are within the control of the country for a long time

In the early stages of development, the Electricity Corporation of Vietnam (EVN) has successfully completed its mission as a representative of monopoly in power sector From the small grid and power scattered in different locals, Vietnam power system is connected into the unified national grid through the construction of SOOkV transmission lines, which are associated with the power scales like Tri An, Yaly, Pha Lai, Hoa Binh, Phu My However, with continuously high growth of Vietnam’s economy and the annual electricity demand growth of 15-20% per year,

it is essential to build more large power plant s with total capacity of over 2000MW per year with suitable synchronous transmission systems Despite of the assistance

of national petroleum corporation of Vietnam (EVN) and Securities Group of Vietnam Coal (TKV), EVN could not ensure electricity supply for the economy Vietnam The electricity prices, which are controlled by the Government to keep out

of inflation, have not stimulated investment in electricity generation process Under these circumstances, Vietnam government has decided to restructure the electricity industry and market-oriented electricity sector with the schedule of three levels To sustain and develop in this competitive environment, the power companies need to determine their business strategy in the coming years

G RIGG 33® Capstone project report GaMBAOI!LD109-Group NO.6 |

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FRE ma SWE FSiN eas “company was established on the basis of stocking

Thac Mo Hydro power Company, with a Vietnamese trade name: CONG TY CO

PHAN THUY DIEN THAC MO The company officially works with ancient forms

from 01/01/2008, for stakes of EVN To survive and develop in the present trend,

this joint stock company needs to build appropriate business strategy based on its advantages

From the demands of the allegation, we have chosen "Thac Mo Hydro power Joint- stock Company: Business strategies to 2020" as our topic for graduate assignment

Research objectives are

- Assess Vietnam’s macro-economic development, government policy on electricity generation business as well as power competitive environment

in Vietnam and other competitors to identify opportunities and connections threatening

- Make a general assessment on business activities of Thac Mo Hydropower JS Company and resources from the within to help us identify its strengths and weaknesses

- Propose suitable business strategies for Thac Mo hydropower JS Company based on_ internal strengths/weakness and external opportunities/threats, and also construct different solutions to support the implementation of effective business strategies outlined

The company’s principal lines of business: Produce and trade electricity, invest in building power projects and implement the national grid (vital mission of the Thac

Mo hydro power JSC) However, the subject is limited to the scope of research

on the production and trading of the Company on the basis of comparison with competitors

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Mo hydropower JSC

- Primary information: The construction of matrix strategic choices was made

by expert methods to identify the environmental factors inside and outside, which affected business activities of enterprises, and to determine the importance of these factors

While this method is simple to make, its disadvantage is that stem from the subjective assessment should be limited to the level of precision However, the opinions from leading, practical experience experts that I invited to comment in this capstone project report is more than enough to build a good business strategy

Academic significance:

In market economies, business strategy is crucial to the success or failure of one’s business To survive and sustainably develop, one enterprise needs a good business strategy and performance

There are many approaches to build a business strategy for any business This is a significant academic theory that has been synthesized from various sources to build

a business strategy in a most basic, easy to understand and to use

Practical significance:

Thac Mo Hydro power Joint Stock Company is now operating under JSC model This topic will analyze strengths and weaknesses of this company to identify the core competencies which could create competitive advantage for companies, as well

mca Capstone project report GaMBAOI!.D109-Group NO0.6

Griccs) Capstone project report GaMBAO!.D109-Group NO.6

The concept “strategy” appeared very early from researches on historical wars The earliest definition of strategy was belonging to Greek Historian Xenophon in sixth century BC In this time, Sun Tzu, a Chinese military theorist also wrote “The Art

of War” which analyzed military strategies

Till the middle of twentieth century, researches and development of business strategy did actually start to occur From scholars such as Drucker, Chandler, Ansoff, Andrew studied the successes of American economic corporations before and within World War II, to nowadays managers, economists such as Michael E Porter, Fred R David, Rudolf Grunig, Richard Kuhn there have been many different approaches to business strategy These are some of them:

- “The determination of the basic long-term goals and objectives of an enterprise and the adoption of the course of action and the allocation of

resources necessary for carrying out these goals”.- Chandler (1962)

- Strategy is a mediating force between the orginization and its environment: consistent patterns of streams of organizational decisions to deal with the environment (Mintzberg, 1979)

- Strategy is a framework or plan to integrate main objectives, policies and sequences of actions into a strong and robust combination - Quinn (1980)

- Strategy is about being different It means deliberately choosing a different set of activities to deliver a unique mix of value - Michael E

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BI InBEFSSfVETiefN SB3MPdifferent approaches and definitions, a business

strategy consists of the following contents:

- Identifying basic long-term objectives of company

- Establishing general action programs

- Choosing courses of action, deploying and allocating resources to achieve those objectives

There are many different types of strategies within a company, depends on level, approaches business strategy can be divided by two categories:

According to level, a company has at least three levels of strategy:

- Corporate strategies: Strategies towards general purposes and extent of the organization

- Business level: Relating to sucessful competitive methods on specific markets

- Functional strategies: Strategies which help corporate and business Strategies implemented effectively by components built on resources, human process and necessary skills

In a highly competitive and globalized environment, borders between nations were almost abolished; as a result there was a fourth level of strategy called global

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According to Michael E Porter, there are three general competitive strategies at

business level:

Cost leadership strategies (the best and lowest price)

Differentiation strategies

Focus strategies

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Functional strategies are strategies of functional units such as marketing, finance,

human resource, etc These strategies help to enhance operational efficiency of company and support to business and corporate strategies implemented effectively

Strategic management process consists of three stages:

- Strategy formulation stage

- Strategy implementation stage

- Strategy evaluation stage

Figure I-1: Comprehensive strategic management model

Strategy formulation process

According to Fred R David, strategy formulation process consists of three stages:

Figure I-2: Strategy formulation process

_ External factor Competitive profile matrix Internal factor

(FE)

Phase 2: Combination

opportunities and = action evaluation group matrix | matrix(IE) matrix

threats matrix matrix (SPACE) (BCG)

Phase 3: Decision

Quantitative Strategic planning matrix (QSPM)

Source: Strategic management concept-Edition 12, Fred E David 3.1.1 VISION AND BASIC OBJECTIVES

This is the first stage of strategic management process, mission and basic objectives

of company provide a cirumstance to build up strategies A mission presents reasons for the existence of company and points out what will company do Each company has a specific mission

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FQE COMBEGSS UF ETE AT SHR tity what company expect to meet in medium and long term; target which company will develop to They are the first and the most important foundation to formulate business strategy Mission of company is a general concept, objectives break it down into details

Objectives are built on the foundation of mission: external and internal factors of company Objectives must be appropriate to objective and subjective conditions

Purposes of external environment evaluation are to develop a limited list of opportunities that will benefit to company and threats that company should avoid to mitigate negative impacts from external environment There are many different

external evironmental factors (macro and micro), external environment evaluation

just covers factors that have impacts on company

Macro environment include:

- Economic environment,

- Political and legal environment,

- Social and cultural environment,

- Demographic and geographical environment,

- Technological environment,

- Global environment

Micro environment is competitive environment or the so-called industrial environment, is the environment affect directly to company, most of operational and competitive activities of company take place in this exvironment

Michael E Porter, Professor of business strategy, Harvard University created Five-

forces model illustrated in figure I-3:

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Rivalry someones Bargaining Among Bargaining Power of Existing Power of

+

Threat of Substitute Products or Services

Source: Five Competitive Forces That Shape Strategy- Michael E Porter

In each company, there are always different strongs and weaknesses at business units Internal strongs and weaknesses in associate with external opportunities and threats, and companion with mission statement are foundations to formulate objectives and strategies of company

Internal environmental factors:

Griccs) 3 Capstone project report GaMBAOI.D109-Group N0.6

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Marketing is described as a process of identification, forecast, establish and satisfy consumer’s demand to goods and services Marketing management include: Market development research; target market selection; distributional channels system; after-

sale services

Personnel:

Human resources play a critical role to corporate performance Despite a right strategy, it can’t bring anything to company without effective workers Human resources include: human resoureces organizational structure, human resoureces quality, maintain and development policies

Operations management:

Include all the activities in order to bring inputs to goods and services of company Operations management process consists of: Production procedure design, technological production line selection, production scale, production position, area; product quality, services, manufactured price

Basing on corporate objectives; external environmental factors and _ internal circumstance, to formulate business strategy with the following components:

- Identifying and selecting opportunities which could help company obtain business objectives

- Selecting target markets

- Selecting goods and services for target markets

- Building and analyzing strategy matrix to choose appropriate strategies

- Building up marketing-mix strategy for selected goods and services market: Product strategy, price strategy, distribution _ strategy, advertisement strategy

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In order to implement effectively formulated business strategies, company must have solutions to operations management, business management; human resources, finance to carry out these strategies That is, organizing and allocating corporate resources to implement sucessfully selected business strategies, 1.e.:

- Organizing an appropriate organizational structure

- Allocating properly, maintaining and develop human resources

- Allocating financial resources

- Building up operations management model scientifically and effectively

- Bulding corporate culture matching with selected strategies

- Building strategic communication system, PR etc

Evaluating whether a business strategy effective or not is very important A business strategy is effective when that strategy fits to real circumstances of company and socio-economic status around it; and utilize as much as possible Opportunities to obtain proposed objectives Business strategy evaluation include the following steps:

- Examining and testing effecitiveness and fitness of business strategies before put in operation

- Evaluating operational and business performance of company period by period

of strategy inplementation process in order to detect mistakes, disadvantages

of strategy and creating timely regulations, repairments and supplements

STRATEGY

Estabishing a Matrix assesing External factors will help us to summarise and quantify influences of external environment factors on businesses, it affects

¬ Capstone project report GaMBAOl.D109-Group NO.6

Assesing the importance level of each factor by classifying factors from | to 4; namely: level 4 means the company has the best reaction; level 3 is above average;

2 is average and | is the least Those levels depend on the effects of business Strategy

The next step is determining weighted score of each factor by multiplying the the weight of factor with the corresponding rating Then, add sum of weighted scores with each variable to determine the total weighted score for a business; the highest

is 4 and the least is | and average is 2,5 point

The total weighted score is 4 revealling that the company is taking advantage of external opportunities and controlling very well or minimizing external threats to the company

The total weighted score is | revealling that the company doesn’t seize the opportunities and minimize external threats

Table I-1: External factor evaluation matrix

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PDF Compressor.Free Versio Bi management concept-Edition 12, Fred E David

Building internal factor Matrix will help us to summarize and asses the important strengths and weaknesses of function business department, it affects manufacturing and business operation of businesses

To build a Matrix we manage to set a list including all of the external factors affecting operation of a business as mentioned in internal business assesment part Assesing the importance level of each factor by scoring weights; sum of scoring weights of all factors equals 1 Classification reveals the corresponding importance

of those factors in business success

Assesing the importance level of each factor by classifying factors from 1 to 4; namely: level 4 means the company has the best reaction; level 3 is above average;

2 is average and | is the least Those levels depend on the effects of business Strategy

The next step is determining weighted score for each factor by multiplying the weight of factor with the corresponding rating Then, add sum of weighted scores with each variable to determine the total weighted score for a business; the highest

is 4 and the least is 1 and average is 2,5 point

The total weighted score is 4 revealling that the company is having strengths; and can overcome weaknesses On the contrary, the total weighted score is | revealling that the company doesn’t have strengths and has too many weakness to overcome

Table I-2: Internal factor evaluation matrix

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Source: Strategic management concept-Edition 12, Fred E David

Building competitive matrix help companies to identify rivals, pros and cons which help companies to have appropriate business strategy

This matrix including all of the internal and external factors of businesses plays an important role in the business success In the competitive image matrix, the competitors are also considered and calculate the weighted scores After that, we compare the total weighted scores of those companies with the prototype competitors Thereby, we will have a lot of information to build business strategy

Table I-3: Competitive Profile matrix

Weight Sample company Competitor 1 Competitor

Rating Weighted Rating Weighted Rating Weighted

Source: Strategic management concept-Edition 12, Fred E David

SWOT Matrix allows us to asses strengths and weaknesses of businesses and estimate opportunities and threaths of external business environment from which we combine the environment situation factors and the company capabilities to business strategies We have the following SWOT Matrix:

Sn S&c, ( an ’ Ø1 i renort {;raMBRA0I I)IO9-(roup NÙ 6

STRONG (S) Promote internal strengths to Promote internal strengths

| take advantage of to avoid external Threats Opportunities

| StraegyW-O + ‘'|StrategyW-T - |

WEAK (W) Overcome internal Weaknesses Overcome internal |

Source: Strategic management concept-Edition 12, Fred E David SWOT matrix will help to establish 4 kinds of strategies

- Strength Opportunity Strategies (S_O) : Promote internal Strengths to take advantage of Opportunities

- Weakness Opportunity Strategies (W_O): Overcome internal Weaknesses to take advantage of Opportunities

- Strength Threat Strategies (S_T): Promote internal Strengths to avoid external Threats

- Weakness Threat strategies (W_T): Overcome internal Weaknesses to avoid

UNIVERSITY

PRE APRS SATS Hee NASP matrix shall be considered in developing Matrix SPACE Steps to develop a SPACE matrix:

Step 1: Choosing a group of variables represent for FS, CA, IS and ES

Step 2: Assessing from +1 to +6 for variables of FS IS and from -l to -6 for variables of ES CA, which are worst and best respectively Basing on FS and CA to make comparision with competitors, ES and IS to make comparision with other industries

Step 3: Take average score for FS,CA, IS and ES

Step 4: Plot these score into SPACE matrix

Step 5: Plus two average value on horizontal and plot this number on horizontal axis Similarly for vertical axis With these two number, we have a new point on the matrix

Step 6: Connect original point to this new point we will have a vector, this vector present the strategy of the evaluated company

Figure I-4: Matrix SPACE

Product development +3 Market development

Related diversification +2 Product development

+1 Diversification (related or unrelated )

Conservative -6 Market development

Liquidation ES Product development

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Where: FS (financial strength), CA (competitive advantage), IS (industrial strengths) and ES (environmental stableness)

IE matrix analysis is to put every parts of company in the below figure:

IE xay matrix is built upon two main factors:

- Total weighted score of IFE

- Total weighted score of EFE

The value of the matrix:

FRE CBP S8 ei9EBÍfHhtrix (IE)

'————-

Medium (2,00-2,99)

Low (1,00-1,99)

Total weighted score IFE

Source: Strategic management concept-Edition 12, Fred E David

IE matrix includes:

- Grown and Build (area |, Il, 1V): Appropriate strategies are concentrated growth (access, develop new market, develop new product); integrated strategies (forward, backward and horizontal integration)

- Hold and maintain (area Ill, V, Vil): Appropriate strategies are access new market and develop new product

- Harvest or devest (area VI, VIII, IX): cut, liquidate and abolish ineffective units

aS.E

theirs units can lie in four parts of the matrix This matrix bases on two assessment criteria: Competitive position and market growth rate Appropriate strategies for

GRAND STRATEGY MATRIX

Grand strategy matrix is used to set up feasible strategies All organizations and

company are listed according to their attractiveness

ỷ—-— ( apstone project report GaMBAOI!.D109-Group NO

Griccs)

UNIVERSITY

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Figure I-7: Grand strategy matrix

Rapid market growth

Quadrant I] Quadrant |

Market development Market development

Market penetration Market penetration

Product development Product development

Horizontal integration Forward Integration

Weak Devestiture Backward Integration

competi Related Diversification competive

position

Related Diversification Unrelated Diversification

Unrelated Diversification Joint venture Horizontal Diversification

Devestiture Liquidation

Weak market growth

Source: Strategic management concept-Edition 12, Fred E David

QSPM is used to rank strategies to find the best strategies for company This matrix

use all the information from: IFE, EFE, SWOT

To develop a QSPM, there are 6 steps:

Step 1: List strengths and weaknesses (at least 10 factors) and opportunities and threats (at least 10 factors), these factors should be taken from IFE and EFE

Step 2: Assign Weight for these factor, as did in EFE and IFE matrix

Step 3: Identify a set of alternative strategies, organize them into specific groups Step 4: Set attractive score (AS), quantify attractiveness of each alternative strategy This score depends on the impacts that strategy have on the above internal and

BRE GP RRB ESSA RSE METSI9R n-attractive, 2 —low-attractive, 3 — fair-attractive,

4 — very-attractive

Step 5: Count total attractive score (TAS) Plus weighted scores with equivalent

AS High TAS, high attractiveness of the strategy

Step 6: Summarize total attractive score for each strategy This score show the

attractiveness of each strategy

lable 1-5: QSPM matrix

| Weight Strategy | Strategy 2 Strategy 3

Source: Strategic management concept-Edition 12, Fred E David

QSPM has many advantages such as integrate internal and external factors into

decision making process, strategies can be studied continously or simultaneously with no limitation on the number of strategy But it has also disadvantages: It requires intuition and experiences

Capstone project report GaMBAO!.D109-Group NO.¢

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It is not simple to build up a strategy for a company because it depends on many

factors in past, present and future; furthermore, it also depends on sector, business fields There are some experiences in formulating a business strategy:

Firstly, we need to have an appropriate process

Business objectives must be suitable with company’s circumstance and external environment

Collecting and analyzing information to find out strengths to enhance and weaknesses to improve

Evaluating opportunites and threats on the market

Focus on the most effective strategies of company and ensure the unity between implementing activities

Figure I-8 : Inside of powerhouse of Thac Mo hydro power plant

(5 RIGG 7 Capstone project report | GaMBAOI!.D109-Group NO.6

The SOOKV ultra-high-voltage transmission lines, which was operated in 1994, has linked a power system in North, Central and Southern of Vietnam to form a electrical system Since 1996, the renewal economics reform of Vietnam Government has led the continuously growing of the economy over many years Along with its growth, electricity demand is also developed at high speed

Table I-1: Electricity consumption 1990-2009

Inks Wwlt Agt WSgt ắ Weght Services Wet el perpeson Loss

Capstone project report GaMBAOI!.D109-Group NO0.6

in 2009 was 12 times higher than in 1990, with an anually average growth rate of

14 The 2000 — 2009 growth rate of average load demand was about 12.8%

Figure II-1: Electricity production 2000-2009

Until July 2010, total available power of the plant s in Viet Nam was just 18.400MW, largely lower than master diagram VI which has been approved was 21.062MW Because of the late in process of the important electricity sources such

JHMaE9I0NM tfRi®nidIr@cVSERPuang Ninh, Mao Khe, Dong Nai 3 hydro power plant

Figure lH-2: Viet Nam power generating structure by owners

1.3 ELECTRICITY PRICE

13.1 ELECTRICITY PRICE IN VIET NAM

Current retail price of electricity sold to consumers remains the Government's price controls, this make negative affects in the negotiation of electricity sale price between electrictity producer and EVN

According to EVN report, average electricity price saling to consumers in 2007-

The following are some electricity price that EVN buy from power plants:

Average price |

NO Name of Power plant Price unit (VND/Kwh;

ee USD/Kwh) |

2 TBK Phu my 3 BOT © USD 0.048 |

ae TEER TUNER Ny U50) 0:050°

L 7 THERMAL POWER Nhon trach 1 USD 0.039

i 8 TQ 220 Kv- Lao cai USD 0.051

L 10 Na Duong Thermal Power VND 620

12 Hydropower Ngoi San VND 614

| 13 Hydropower Se San 3A VND 496 oa

17 Hydropower Song Con VND 561

18 Hydropower Nam Chien 2 VND 588

20 Hydropower A Vuong VND 784

21 Hydropower Que Phong VND 610

22 O Mon 1 Thermal Power VND 3.687

24 Ninh Binh Thermal Power VND 929

26 Thac Mo Hydropower VND 452

28 Ham Thuan- Dami Hydropower VND 251

30 Uong Bi Thermal Power VND 754,6

31 Can Tho Thermal Power VND 5.328

32 Thu Duc Thermal Power VND 4.177

34 Hai Phong Thermal Power VND 385

37 Serepok 4 VND 582

OECD:

({ apstone | yect report C;aAMBAOI!L.D109-Group NO.6

Average electricity price for industry: 0,133 USD/kwh

Average electricity price for household: 0,199 USD/kwh

Metropolitan Bectricity Authority -MEA) 2.503 2.478 1.01

Provincial Electricity Authority (PEA) 2.510 2.522 (0.48)

standby power supply 4.745 2.498 69.53

Other minor customers 1.587 1.721 (7.79)

Ivetall Average Sales Price 2.508 2.508

Source: EGAT REPORT-2009

In comparison of Viet nam electric sales price of 0,0485 USD with sales price of ).084SUSD in Thailand and OECD, we realized that electricity sales price in Viet Nam is still so low and not exactly reflect production cost According to recent Feasibility study for import coal fired thermal power plants such as Long Phu 1, Song Hau, electricity sales prices have to be over 0,07 USD/kwh

Thus, once reaching competive electricity market in Viet Nam, it is necessary to put

dower plants having high production cost suc as coal fired , electricity sale price will at least approach to Thailand level

= ( anstone prolect report (saAMBAOQ!.D109-Groun NO.6

Ratification of national planning for electricity power development period

2006 -2015 with due consideration till 2025 — Decision No 110/2007/QD -

TTg

Announcement No 106/TB-VPCP on 04/28/2010 about Conclusions of Deputy Prime Minister Hoang Trung Hai at the State Steering Committee meeting for the Electricity Planning VI

The across country electricity system connection planning for thermal power centers version 04/2009 by the Energy Institute

Statement to Prime Minister No 4011/BCT-NL of the Ministry of Industry and Trade on 05/5/2009 on electricity centers connection planning to the national electricity system

ELECTRICITY DEMAND FORECAST IN 2008-2025

Based on a legal basis has been presented, the load demand plan during the period

2010 - 2015 annual average growth of 17% per year (basic case)