THANH HOA (VNS)— Deputy Prime Minister Hoang Trung Hai gave the go-ahead for the construction of Trung Son hydro-power plant in the central province of Thanh Hoa on Saturday.

The project, the first hydro power plant in Viet Nam to be funded by the World Bank, would not only supply power, but was also expected to prevent flooding and droughts, Deputy PM Hai said.

The power plant would benefit the environment and create better living conditions for local people, he said, expressing his hope that the project, with the assistance of WB experts, would meet the strictest environmental and safety standards and ensure social security.

The project has a total investment of US$410.7 million, of which the WB has provided a $330 million loan.

According to WB Viet Nam Director Victoria Kwakwa, the project was expected to meet environmental and social requirements and bring practical benefits to the Vietnamese people.

The plant will supply low-cost, clean and sustainable electricity, with an annual output of over 1 billion kWh.

Ngo Viet Hai, chairman and director of Trung Son Hydro-Power company, a subsidiary of the State-run power supplier Electricity of Viet Nam (EVN), said the project would contribute to the climate change agenda in Viet Nam by lowering carbon dioxide emissions by about 1 million tonnes per year.

He said the plant's reservoir was also expected to lower emissions and provide flood control benefits through a water storage capacity of 112 million cubic metres.

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 communities. 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 be completed.

Sam Sung C&T and State-run Construction Company 47 have been contracted to work on the plant, while AECOM New Zealand and East Asia Investment and Construction Consultant Company (EASIA JSC) are the construction supervisors.

The plant should be completed in 2017. — VNS