Lai Chau Hydropower Plant is a national key energy project located in Nam Nhun District, Lai Chau Province, Vietnam. As the upstream-most hydropower project in the Da River cascade, the plant was developed to supply electricity to the national grid, contribute to water management, and support socio-economic development in the Northwest region. With an installed capacity of 1,200 MW from three 400 MW generating units, the project has become one of Vietnam’s major hydropower facilities.
The project had a total investment of approximately VND 35.7 trillion. The investment covered the construction of the hydropower facility and associated infrastructure, including transmission systems and resettlement-related components.
The project financing was structured through a combination of equity and borrowed capital. Approximately 20% of the investment was funded by Vietnam Electricity (EVN) through its own capital, while the remaining 80% was financed through domestic and foreign commercial loans as well as preferential investment credit.
The borrowed portion was supported by a range of domestic and international financing sources. In particular, Vietnam Development Bank (VDB) provided preferential investment credit of VND 4.6 trillion to support components including resettlement and the domestic manufacture of hydraulic machinery. The overall financing structure therefore combined EVN’s equity contribution with commercial lending and preferential investment credit.
The remaining 20% of the project financing was provided from EVN’s own capital, demonstrating the project owner’s direct financial participation in the development of this major national infrastructure project.
The project was implemented under a contractor-based construction model, with the construction component carried out by a consortium of major Vietnamese contractors. The main contractor group was led by Song Da Corporation and included Vietnam Machinery Erection Corporation (LILAMA), Infrastructure Construction and Development Corporation, and Truong Son Construction Corporation.
Led by Song Da Corporation and supported by experienced engineering, construction and machinery-installation companies, the contractor group brought together substantial expertise in large-scale hydropower construction and infrastructure development. This combination of construction capacity and specialized technical expertise contributed to the successful completion of Lai Chau Hydropower Plant, which was inaugurated in December 2016, one year ahead of the originally approved schedule.