HA NOI (VNS) - Construction of a US$411 million hydropower plant in the north-central province of Thanh Hoa will begin in earnest on Saturday, according to the company behind the project.
Ngo Viet Hai, Chairman and Director of Trung Son Hydro-Power company, a subsidiary of state-run power supplier Electricity of Viet Nam (EVN), revealed that work will be underway by the weekend on what is expected to be a major boost for Viet Nam's energy industry.
This is the first hydropower plant to be funded in Viet Nam by a loan from the World Bank and it is expected to provide an additional 1019GW of electricity annually to help match the nation's rising energy demands.
Hai said the project will also contribute to the climate change agenda in Viet Nam by lowering carbon dioxide emissions by about one million tons per year. The plant's reservoir is expected to provide flood control benefits through a water storage capacity of 112 million cubic metres.
The World Bank is providing a loan of $330 million, accounting for 80 per cent of the project's total cost, with a 22 year maturity and a grace period of six years. A non-refundable aid package of $3 million will also be invested towards environmental causes and community livelihood development in the area.
Hai added that the Trung Son Hydropower project is a typical example of a well-designed, medium-scale hydropower project that meets international good practices in technical design, analysis of alternatives and particularly environmental, social and dam safety elements.
Up to 1,516 local households in eight communes will be directly affected by the project.
Around 98 per cent of them are ethnic people from the Thai, H'Mong, Muong and Kho Mu communitiesù. One third of the households will be provided with financial assistance to relocate before water first reaches the plant's dam in October 2016.
By the end of December, a 20 km road to the plant will have been finished.
According to the schedule, the first turbine of Trung Son Hydro Power Plant will be running by the fourth quarter of 2016 and the whole construction will be complete by 2017.- VNS