The World Bank on Tuesday provided a US$330-million loan for building the Trung Son Hydropower Plant in the north central province of Thanh Hoa.
The 260 MW hydropower plant aims to meet growing domestic demand for electricity and bring flood control and irrigation benefits to rural communities in Thanh Hoa.
Through the project, the WB will also provide technical support to Vietnam Electricity (EVN) to improve the performance of its hydropower projects, particularly in dam safety, and adopt international standards in social and environmental practices.
"Trung Son will help improve Vietnam's energy mix and energy security as part of the least cost solution in meeting the country's energy needs. Furthermore, it will also contribute to the climate change agenda by generating clean energy and avoiding an estimated 1 million tons of CO2 emissions per year," said Victoria Kwakwa, World Bank Country Director for Vietnam.
As part of the project, roads, power supply stations, water service for households, irrigation system, schools and resettlement houses will be built.
Electricity consumption in Vietnam has been growing at 15 percent annually for the past several years. Trung Son is the first hydropower project in Vietnam funded by the WB.