Construction on Song Bac River hydro plant starts

The construction of a dam across the Song Bac River for a hydropower plant in northern Ha Giang province is now underway.

Financed by the Song Bac Hydroelectric Co, the plantl consists of two turbines with a combined capacity of 42MW that will be able to generate more than 166 million kWh a year. It is expected to become operational in two years’ time, a year ahead of schedule.

The Japanese Sumitomo Mitsui Bank provided a loan of $50 million for the project, about 80 per cent of the total investment needed.

Speaking at the launching ceremony, general director of the company, Do Van Binh, said the loan had been provided at low interest rates. “Several hydroelectric projects have had difficulties getting loans due to the world economic downturn,” Binh said.

The first turbine is expected to be in operation by next October and the second by the end of 2012. r.