The Saigon Invest Group of Vietnam (SGI) has engaged in a contract with Laos to develop the Nam Sum hydroelectric project in the Lao province of Huaphane .

The contract was signed in Vientiane on Sept. 19 by Lao Deputy Minister of Planning and Investment Thongmy Phomvixay and Ngo Tuan Dung, General Director of SGI Lao Hydroelectric JSC, which was set up by the group to collect the best resources for the implementation of the project.

With a designed capacity of 288 MW, the project will be built with an estimated capital of nearly 450 million USD.

Once operational, scheduled for 2016, the plant will generate 1,000 GWh each year, of which 85 percent will be transmitted to Vietnam and the remainder is for local power demand in Laos.

As part of the national electric development plan of Vietnam during the 2011-2012 period and into the future, this major project will significantly contribute to meeting power demand for development in the two countries./.