The Vietnam Development Bank (VDB) signed a credit contract worth VND4.6trillion (US$230 million) with the Electricity Board of Vietnam (EVN) in Hanoi on May 19, for the construction of the Lai Chau Hydropower project.
EVN as the project investor will invest a total capital investment of VND37.5trillion ($1.8 billion) in the project.
Credit capital worth $230 million will be used for ground clearance.
EVN is also responsible for construction of the plant, resettlement of local inhabitants and the development of infrastructure for the project.
Located in Nam Hang Commune of Muong Te District, the Lai Chau Hydropower Plant will have three turbine engines with a total capacity 1,200MW. It is the third largest Hydropower Plant of its kind in the country, after Hoa Binh and Son La. All three plants are located on the Da River.
Construction on the project began in January 2010. The first turbine engine is supposed to be operational in March 2016. The completed plant will be operational in 2017.
