Phu Quoc has been relying on power from diesel generators, which have a total capacity of around 200MW, said provincial People's Committee vice chairman Pham Vu Hong. This is not enough for local needs and often causes power outages – a major obstacle for the socio-economic development of the island, which became a coastal economic zone under a decision issued by Prime Minister Nguyen Tan Dung in May. 

The tourism and seafood processing industries on Phu Quoc have grown in recent years.

Electricity prices here are three times what they are on the mainland; several hotels and resorts on the island told Dau tu (Vietnam Investment Review) online that electricity costs accounted for over 20 per cent of their room rates.

The VND2.35 trillion (US$111.9 million) project will be funded by the company budget and World Bank finances, said Pham Ngoc Le, the company's deputy general director. When completed next April, it will have a transmission capacity of 131MVA.

Italy's Prysmian Powerlink S.r.l, the major contractor, was currently finishing cable production, while site clearance and infrastructure such as electricity poles and transformers was already prepared on the mainland, Le said.

"We residents hope the underwater line is finished soon so that every household can have cheaper electricity for living and production," said Nguyen Ngoc Lan from Suoi Da village. — VNS