Vietnam’s deputy prime minister Hoang Trung Hai has given the go-ahead for the construction of Trung Son hydro-power plant in the central province of Thanh Hoa.

The project, the first hydro power plant in Viet Nam to be funded by the World Bank, is expected to help prevent flooding and droughts in the region, as well as suppling up to 1 billion kWh annually.

The project benefits from a total investment of US$ 410.7 million, towards which the World Bank has provided a $330 million loan.

Ngo Viet Hai, chairman and director of Trung Son Hydro-Power company, a subsidiary of the State-run power supplier Electricity of Viet Nam (EVN), said the plant’s reservoir was expected to provide flood control benefits through a water storage capacity of 112 million cubic metres. Up to 1500 local households in eight communes will be directly affected by the project. At least one third of them will be provided with financial assistance to relocate before water first reaches the plant’s dam in October 2016.

Sam Sung C&T and State-run Construction Company 47 have been contracted to work on the plant, while AECOM New Zealand and East Asia Investment and Construction Consultant Company (EASIA JSC) are the construction supervisors.

The plant is scheduled for completion during 2017.