The Ministry of Planning and Investment has proposed the Prime Minister to approve a mega traffic combined with hydropower project in the Red River under BOO (Build-Own-Operate) form.
The project is expected to have a total fund of VND24.51 trillion (US$1.1 billion). Of these, 30 percent will come from investors and the rest from commercial loans. It has been put forward by Xuan Thien Company Ltd under Xuan Thanh Economic Group.
The project aims to upgrade waterway transport along the Red River by connecting two large routes Hai Phong-Viet Tri and Hanoi-Lach Giang, and supply electricity of 0.91 billion kWh a year.
To obtain the two targets, the investor plans to build six dams and docks, dredge 288 kilometers of the Red River from Viet Tri to Lao Cai, and construct six small hydropower plants with the total design capacity of 228MW and seven ports from Hanoi to Lao Cai.
The company will collect fees and expect to claim its investment capital within 25 years.