Summarization of the work in 2020 and implementation of the tasks in 2021 of EVNGENCO 3

On the afternoon of January 21st, 2021, the Power Generation Corporation 3 (EVNGENCO 3) organized a conference to summarize the work in 2020 and implement the tasks in 2021.

Participants at the Conference include Mr. Vo Van Yen - Deputy Secretary of the Commune’s Party Committee of the Ministry of Industry and Trade of Ho Chi Minh City, Mr. Duong Quang Thanh - Secretary of the Party's Committee, Chairman of the Members’ Council of the Vietnam Electricity (EVN), Mr. Tran Dinh Nhan - General Director of EVN and other members of the Members’ Council, Deputy General Directors, President of the EVN’s Trade Union, representative leaders of EVN’s Boards and managers of units and corporations in the Vietnam Electricity.

Regarding to the Power Generation Corporation 3 - EVNGENCO 3, participants are Mr. Dinh Quoc Lam - Secretary of the Party’s Committee, Chairman of the Board of Management, Mr. Le Van Danh - Member of the Board of Management, General Director of the Corporation, Mr. Vu Quang Sang - Chairman of the Trade Union, other Deputy General Directors, Heads of Departments and more than 100 employees and staff of the Corporation, leaders and officers of member units, affiliated companies of EVNGENCO 3.

Mr. Dinh Quoc Lam - Chairman of the Board of Management and Mr. Le Van Danh - General Director of EVNGENCO 3 presided over the Conference

On behalf of EVNGENCO 3's Board of Directors, Ms. Nguyen Thi Thanh Huong - Deputy General Director presented the report on production, business, construction and investment operations in 2020 of the Corporation. In 2020, the EVNGENCO 3's electricity output is 33,254 billion kWh, of which, dependent accounting units are 31,103 billion kWh, reaching 100.1% of the plan. During the year, some units have to reduce the capacity and stop the backup production for a long time due to the insufficient gas supply in the 1st quarter of 2020, impacts of the COVID-19 pandemic and serious storms and floods in October and November 2020, which make the electricity production demand of the entire system lower than the 2020 Plan and the low mobilization of thermal power sources due to strong development of renewable energy sources, especially the solar power. The hydrological situation is favorable in the last months of 2020 (from August onwards), water flows to reservoirs are also higher than the same period in 2019 and the average level of many years; therefore, hydropower plants of the Corporation are highly mobilized and most of them achieved the Plan.

In response to the outbreak of the COVID-19 pandemic, the Corporation has promptly implemented prevention measures such as concentrated camping plan, online meetings and remote working. As a result, there is no case of infection in the Corporation, contributing to the completion of tasks of ensuring national energy security.

Despite facing many disadvantages, power plants of EVNGENCO 3 have achieved important power output milestones. On November 7th, 2020, Vinh Tan Thermal Power Company held a program to celebrate the successful completion of the entire Vinh Tan 2 Thermal Power Plant Project and reached the milestone of 40 billion kWh of electricity output. Previously, on November 2nd, 2020, Phu My Thermal Power Company generated the 300th billion kWh of electricity output to the National Grid and as the first generator in Vietnam to achieve this great milestone.

Power plants of EVNGENCO 3 have carried out 21 major repair projects and the total implementation duration is 306 days, 50 days shortened compared to the Plan. To guarantee that plant units are repaired and maintained according to the Plan with reliable operation and careful preparation for the power generation in 2021, in the situation that technical experts of gas turbine manufacturers cannot come to Vietnam due to impacts of the COVID-19 pandemic, the EPS Company and Phu My Thermal Power Company actively coordinated with each other to perform major repairs without direct supports from experts at the site.

The Corporation continues to promote the performance of the Thuong Kon Tum Hydropower Project to overcome difficulties and reach important progress milestones, currently water is pumped into the tunnel with more than 15km long for testing, and expected to be completed in January 2021, power generator No. 1 and No. 2 are also expected to come into operation in February 2021. The installation and putting into operation of the Rooftop Solar Power System, Phase 1 (total capacity of 2.96 MWp) is expected to be completed at Phu My Thermal Power Company, Vinh Tan Thermal Power Company, EPS Company, and Buon Kuop Hydropower Company.

For Long Son Power Complex Project, Phase 1 (scale of 1,200 - 1,500 MW) as approved by the Prime Minister to add to the adjusted Power Planning VII on April 23rd, 2020, EVNGENCO 3 and other partners in the Joint Venture continue to implement investment preparation works. On November 22nd, 2020, within the framework of the visit to Vietnam to celebrate the 25th anniversary of the establishment of diplomatic relations between the United States and the Socialist Republic of Vietnam, Mr. Robert C. O'Brien, U.S.A National Security Advisor, Ms. Kimberly Reed, Chairman of Export- Import Bank of the United States and Daniel J. Kritenbrink, U.S.A Ambassador to Vietnam witnessed the signing ceremony of a Memorandum of Understanding for the development of LNG Long Son Power Center Project, Phase 1 (1,200 - 1,500 MW) by and between representatives of the Investor Group for the Project Development (including EVNGENCO 3, PECC2, PACIFIC, TTC, General Electric, Mitsubishi Corporation).

The environmental protection at power plants continues to be guaranteed and controlled effectively, and results of periodic observation of exhaust gases, wastewater, cooling water and surrounding environment are within the permissible limits of the current standards. All parameters of online environmental monitoring systems at the Mong Duong 1 Thermal Power Plant, Vinh Tan 2 Thermal Power Plant, and Ninh Binh Thermal Power Joint Stock Company are transmitted directly to the Department of Natural Resources and Environment of the Province and have completed and put into operation electrical information boards which display all observation parameters of the environmental conditions, cooling water etc. in front of the gate of the Company for convenient monitoring.

The ash and slag management continues to be controlled efficiently. Ash and slag of Mong Duong 1 Thermal Power Plant and Ninh Binh Thermal Power Plants are completely consumed. The quantity of ash consumed by the Vinh Tan 2 Thermal Power Plant has been continuously improved, and the accumulated consumption in 2020 reached about 60% of the quantity. In particular, right after the license is issued, since November 12th, 2020, Vinh Tan Thermal Power Company has exported the first ash vessels through oil import ports for consumption.

The year 2020 is also an outstanding milestone of EVNGENCO 3 in terms of social security works. Under impacts of the COVID-19 pandemic, saline intrusion and droughts in the Southwestern Region, storms and floods in the Central Region, and response to the Prime Minister's appeal, the Corporation has carried out many practical and timely activities such as: donating to social and charitable activities, visiting and giving gifts to disadvantaged families, orphans and people with disabilities, constructing houses of love and gratitude, implementing youth works for the community (the COVID-19 pandemic prevention and support program including donating negative pressure rooms, medical protective equipment; giving three water filtration systems and many tanks for drought and saline intrusion areas in the Southwestern Region; the program “Towards the Central region”: supporting and giving gifts, repairing electrical lines, constructing floating houses in Quang Binh Province, donating 80 computers and learning tools to schools in Gia Lai and Kon Tum provinces etc); the “Happy Home” Program: constructing houses for poor families in Ba Ria - Vung Tau, Binh Thuan, and Quang Ninh provinces; installing street lighting systems in Hamlet 7, Vinh Tan Commune, Tuy Phong District, Binh Thuan Province, donating medicine cabinets and repairing power lines for policy beneficiaries, war invalids, sick soldiers, Vietnamese Heroic Mothers; organizing humanitarian blood donation program, the 6th EVN Pink Week of 2020; the Gratitude Month for contribution to study promotion funds, funds for the poor, scholarships and supporting other community activities in the locality. The total cost for social security activities in 2020 of the Corporation is more than 7.65 billion VND.

The Conference also listened to the report on “Safe, reliable and economical operations of gas thermal power plants under the fast development situation of the solar power source" by Phu My Thermal Power Company; “Repair results and implementation of the RCM program in 2020, solutions to ensure repairs and service supply in 2021” by the EPS Company and “Results of digital transformation to the 2020 and the Digital Transformation Plan in the 2021-2022 period with a vision to 2025” of the Department of Electricity Market and Sales.

Thanks to such efforts and achievements, the leaders of Vietnam Electricity awarded an Emulation Flag of the Commission for the Management of State Capital at Enterprises (CMSC), two Emulation Flags and 11 certificates of merit of EVN for units and collectives under EVNGENCO 3 who obtained excellent achievements in 2020, contributing to the development of the Corporation and EVN.

Mr. Duong Quang Thanh - Chairman of EVN's Members’ Council awarded the Emulation Flag of the Commission for the Management of State Capital at Enterprises to the Thac Ba Hydropower Joint Stock Company for excellent achievements under EVNGENCO 3 in 2020.

Mr. Duong Quang Thanh - Chairman of EVN's Members’ Council awarded the Emulation Flag of EVN to the Buon Kuop Hydropower Company, Ba Ria Thermal Power Joint Stock Company for excellent achievements in completing assigned tasks in 2020.

Mr. Tran Dinh Nhan - General Director of EVN awarded the Certificate of Merit of EVN to collectives and units of EVNGENCO 3 for outstanding achievements in completing assigned tasks in 2020.

Speaking at the Conference, Mr. Duong Quang Thanh - Chairman of EVN's Members’ Council praised efforts of the entire employees and workers of EVNGENCO 3. The Group’s leaders highly appreciated the Corporation for the effective implementation of investment and construction works, in which actively researching and putting the Long Son Gas Power Center into the planning (combined cycle gas turbines using imported LNG); the financial strength has made a great growth, implementing effectively the equitization; actively participating in the social security for the community etc.

Mr. Duong Quang Thanh - Chairman of EVN's Member’s Council speaking at the Conference

In 2021, EVN's Chairman of the Members’ Council required the Corporation to set a target to achieve higher profits in 2020. To do so, EVNGENCO 3 must ensure that all its plant units are ready to operate safely, continuously and economically; applying the science and technology to improve the efficiency, minimizing costs and reducing fuel consumption; continuing to successfully implement environmental protection works, coordinating with investors to consume ash and slag. At the same time, EVNGENCO 3 must focus on effectively implementing the construction, investment and completion of the final payment of the Vinh Tan 4 Thermal Power Plant and expanded Vinh Tan 4 Thermal Power Plant; completing the construction of Thuong Kon Tum Hydropower Plant; coordinating with other partners to invest in Long Son Power Center Project - Phase 1 and other new power source projects.

Implementing the theme in 2021 of EVN, the Chairman of EVN's Members’ Council proposed EVNGENCO 3 to develop the digital transformation plan to enhance the application of great achievements of the Industry 4.0. In particular, it is necessary to develop training plans to improve the quality of human resources for the Corporation and its member units, meeting requirements of the digital transformation roadmap. EVN's leaders emphasized that the task of ensuring business efficiency and meeting shareholders’ requirements is a very onerous duty. Therefore, EVNGENCO 3 needs to drastically and effectively implement solutions to fulfill the targets and plans as set by the General Meeting of Shareholders.

Mr. Dinh Quoc Lam - Chairman of the Board of Management of EVNGENCO speaking at the Conference

At the General Conference in 2020, Mr. Dinh Quoc Lam - Chairman of the Board of Management of the Corporation shared that in the past year, the domestic gas fuel supply is decreased, renewable energy sources are blooming, and storms in the end of the year are very complicated, all of them have affected on production and business of the Corporation; however, thanks to the attention of the Party's Committee and close directions of the Group as well as efforts and drastic implementation of many solutions comprehensively of the entire employees, the Corporation has also completed successfully the 2020 Plan, as well as the 5-year plan for the 2016-2020 period.

Mr. Le Van Danh - General Director of EVNGENCO 3 speaking at the Conference

Adopting directions of the leaders of the Corporation, Mr. Le Van Danh - General Director of EVNGENCO 3 required units to thoroughly grasp the spirit of directions of the Group/Corporation and to immediately disseminate the tasks of the 2021 Plan to employees to urgently implement such tasks right from the first days of the year. In 2021, the expected electricity output of EVNGENCO 3 is 32.055 billion kWh and expected to carry out 14 major repair works of plant units and many other auxiliary works with the total cost of major repairs of 804 billion VND. EVNGENCO 3’s policy is to promote self-processing and recovery, replacing genuine technicians to increase the initiative during the major repair process as well as optimizing and reducing costs. The Corporation continues to direct, urge and control strictly the compliance of the law on environmental protection; constantly strengthening green areas in production and working areas with the motto “Where is the plant, there is a green area”; promoting the cooperation with regulators and qualified partners to consume all the ash and slag generated from the operation of the Mong Duong 1 Thermal Power Plant and Vinh Tan 2 Thermal Power Plant to ensure stable and long-term generation.

In terms of construction and investment, EVNGENCO 3 continues to promote the implementation of scheduled items and completes the power generation of the Thuong Kon Tum Hydropower Project; coordinating with partners in the Group to continue to implement the investment in Long Son Power Center Project.

The Corporation will focus on implementing the theme in 2021 “Digital transformation in the Vietnam Electricity” to promote the science and technology application roadmap in the Group's operations; integrating the digital technology and appropriate governance model with the digital technology application process to the Corporation's production and business operations, continuing to carry out social security activities towards local communities.

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