Representatives of Vietcombank and the Nam Mo & Nam Non hydropower company signed a credit contract on March 23. — Photo vietcombank.com.vn

NGHE AN (Biz Hub) — Vietcombank will lend the Nam Mo & Nam Non Hydropower Joint Stock Company VND360 billion (US$17.14 million) to build a hydroelectric plant in the central province.

Vietcombank's Vinh branch and the company signed a credit contract for the same in Vinh City on March 23.

The factory will be named Ban Ang and will be located on the Nam Mo River in the Tuong Duong District. It has a total investment capital of VND514 billion ($24.48 million), and the investor will use its own budget to meet the remaining costs.

Construction is expected to begin during the first quarter of this year and the facility is projected to generate 68.51 million kilowatt-hour of electricity per year when it becomes operational during the third quarter of 2017.

According to Vietcombank, Ban Ang is the first project in Nghe An and the north-central region of Viet Nam to be adopted to take part in the World Bank-funded Renewable Energy Development Programme, under the United Nations' Clean Development Mechanism.

As a result, the Ministry of Industry and Trade's General Department of Energy and the World Bank have agreed to refinance Vietcombank's VND360 billion. — VNS