The Government has planned to spend around 300 billion VND (14.4 million USD) to connect over 20,000 residents of central Quang Ngai province's Ly Son island to electricity.

Under the initial schedule, a 26-km underground cable will start from the province's Sa Ky port to Ly Son island with a capacity of 10MW. The project is scheduled to finish after 27 months and provide 24 hours of daily electricity, around the clock for local islanders.

The move came after a range of projects aimed to provide electricity to the island failed to realise for many years due to the low selling price of electricity not covering the big investment capital.

The Power Engineering Consulting Joint Stock Company 2 has finished surveying activities on the island and is ready to start construction.

Quang Ngai Power Company has provided electricity only six hours a day after 5pm for the past ten years in the two communes of An Hai and An Vinh, said Tran But, chairman of the An Vinh commune.

Agricultural and fishing activities in the commune have met with difficulties due to lack of electricity, But said.

The islanders have to use oil or charcoal to replace electricity for both daily life and production activities. Some use an electric generator to pump water for crops, he said.

The islanders always hope to be provided with electricity 24 hours per day, But said.

If the electricity is provided all day, it not only helps boost sectors of agriculture and fishery development but also facilitates tourism development on the island, he said.

The company suffers an average loss of 10 billion VND (480,700 USD) each year, said Le Thanh Tung, director of Ly Son Power Division.

The company pays about 8,400 VND to produce 1 kWh of electricity, while the average selling price of electricity costs 746 VND per kWh.

The average selling price of electricity now is 1,034 VND per kWh.

The company still makes efforts to provide electricity for local islanders and ensure national security and defence in territorial waters of the country, he said.

Ly Son district, covering 14sq. km, is about 24 km far from the mainland and has a population of over 20,000.-VNA