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A joint venture between Vietnam and China will invest US$28 million in constructing a hydroelectric plant in northern Vietnam's Lao Cai Province, local newspaper Vietnam News reported today.  

 

The plant to be built by the joint venture between the Power Company No.1, affiliated to the state-owed Electricity of Vietnam, and China's Yunnan Power Grid Company is expected to contribute around 98.5 million kWh to Vietnam's national grid annually when it goes online at the end of next year.

 

The two companies have recently agreed to extend their two existing contracts on purchasing Chinese electricity via the 110-kV power grid for the next four years, ensuring electricity supplies for the five Vietnamese provinces of Lao Cai, Lai Chau, Ha Giang, Yen Bai and Tuyen Quang.

 

Vietnam has purchased 588 million kWh each year under the contracts since they were signed in 2004, said the newspaper.

 

(Xinhua News Agency November 15, 2006)