In 2008, the provincial People’s Committee granted an investment license for plant investor Bao Long Gia Lai Industries and Hydropower Joint Stock Company to implement the project, with total investment of about VND120 billion (more than US$5.1 million).
The 5.5MW hydropower plant was built in Duc Co District in late 2009 and began storing water in early 2013.
However, during the process of construction, the investor was not fully qualified to implement the project in accordance with their commitments. It did not follow regulations on design and construction for the dam.
Even in 2013 and 2014, the two dam breakages occurred in the construction site, causing serious impact on the lives of locals.
The company was advised to build the dam during dry months between April and June, but it ignored this advice.
Local agencies were required to find out who was responsible for the breakages, in addition to estimating damage so locals could be compensated.
Based on the opinions of relevant authorities, the provincial Department of Planning and Investment informed that it will revoke the investment license for the project, and asked the investor to end all activities related to the project and carry out asset liquidation.