Nam Mu hydropower plant, located in Nam Xe commune, Van Ban district, Lao Cai province, owned by Hong Ha investment and energy development JSC, has capacity of 10MW with total investment of VND 207 billion, of which VND 41 billion is from state investment credit, VDN 100 billion from European Investment Bank (EIB) and investor’s own equity is VND 66 billion.

The project is in a remote commune, belonging to a difficulty area, nearly 100km far from Lao Cai city. The region infrastructure condition is poor and intellectual level of local people is low. The project’s owner faces many challenges, especially with site clearance work for 12 ha.

However, with their effort and determination, as well as with effective coordination of  the Vietnam Development Bank’s branch of Lao Cai, the project disbursement timely met  with the project implementation schedule. After four and a half year of construction, the plant has officially been into operation since  December 2012.

Having made a very careful study on characteristics and hydrological and topographical conditions  of the area and good management, the plant is taking the best profit of the region’s water sources, exploit the full capacity of the plant and generating a stable power output of about 4 million kilowatts per month and making a revenue of  VND 5 billion per month.

In operation, Nam Mu hydropower plant helps to clean water, increase power production to serve national demand and create jobs for more than 20 employees in the region.

Since its operation, the company has made payment for principal and interest on time. It is considered as good customers for Lao Cai Branch . For this client, for conclusion, it can be said that, investment credit capital and ODA were used really effectively in terms of social and economic purpose for local region and for the company itself./.

VDB's branch of Lao Cai