It is estimated that more than 10,000 people will have to move to new homes to clear land for the construction of the Lai Chau power plant, which is the last in a series of hydro-electric power plants, namely in Hoa Binh, Son La, Huoi Quang, Ban Chat, Nam Chien and Nam Na, as part of a national plan to generate electricity from the Da River.

“The Lai Chau plant will not only supply a large output of electricity to the national grid but also help promote socio-economic development, effectuate a much needed shift in economic priorities, and restructure population and production in Lai Chau province and throughout the northwest,” said PM Dung during his fact-finding tour of the construction site of the power plant on November 4.

Though the project is waiting for the National Assembly’s approval at its current meeting, a lot of paperwork is being done to ensure construction work will begin in late 2010 as scheduled.
While working with leaders of relevant ministries and sectors, PM Dung agreed to use the team involved in building the Son La hydro-electric power plant in the construction of the Lai Chau plant.

The plant, which is designed to have two turbine groups with a total capacity of 1,200 MW, will be built at Nam Hang commune, Muong Te district, which is one of the country’s poorest areas.
A reservoir capable of storing up to 1.2 billion cu.m of water will be created to serve the plant, which is expected to generate more than 4.7 billion kWh a year. Investment capital for the plant is estimated at VND32 trillion.

Lai Chau province plans to build 34 resettlement sites for local people currently living in the construction area of the plant and is working on a project to plant 10,000 ha of rubber to enable those people to shift to a new production model.