The loan comes from the Vietnam Social Security Agency under an agreement signed on October 7 between the agency and the Electricity of Vietnam (EVN) Group in Hanoi.

The funds are being channeled through the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank).

The Lai Chau hydro-electric power plant, which began construction in January 2011, is one of Vietnam's largest national projects with a total investment of VND35,700 billion. It is being built in Nam Hang commune, Muong Te district, Lai Chau province, and is expected to be completed by 2017.

The plant will have three turbine groups with a total capacity of 1,200MW to produce 4.67 billion kWh per year.

In addition to generating electricity for Lai Chau and other localities, the plant will also contribute to preventing floods, providing water for the Red River delta region, ensuring national security, and improving people’s living conditions in the northwest.