HA NOI — The World Bank and the State Bank of Viet Nam signed financial agreements for the Trung Son Hydroelectric Project yesterday in Ha Noi.
The World Bank will provide financial assistance worth US$330 million, 80 per cent of the project’s total cost of $400 million.
It will be the first hydroelectric project in the country to be financed by the WB’s International Bank for Reconstruction and Development, and marks its return to funding energy generation in Viet Nam.
Victoria Kwakwa, the World Bank’s country director, said the project was the most cost-effective way for Viet Nam to meet its power needs.
In addition, the plant will minimise flooding in lowland areas and help to irrigate crops in the northern central province of Thanh Hoa.
“The hydropower project will also help the country meet its climate change agenda by generating clean energy and avoiding the production of an estimated 1 million tonnes of carbon dioxide per year,” Kwakwa said.
The World Bank will provide technical support to Electricity of Viet Nam on dam safety and the plant’s operation, in line with international standards, she added.
Trung Son Hydroelectric Plant will be built on Ma River in Trung Son Commune, in Thanh Hoa Province’s Quan Hoa District, about 9km from the Laos border.
The plant will have a capacity of 260 megawatts and be able to generate about 1.55 gigawatt hours of electricity per year.
The project is due to be completed in 2017. — VNS
Vietnam Environment 