A joint venture between Vietnam and China will invest 28 million U.S. dollars in constructing a hydroelectric plant in northern Lao Cai province, local newspaper Vietnam News reported Wednesday.

The plant to be built by the joint venture between the Power Company No. 1, affiliated to the state-owed Electricity of Vietnam, and China's Yunnan Power Grid Company is expected to contribute around 98.5 million kWh to the national grid annually when it goes online at the end of next year.

The two companies have recently agreed to extend their two existing contracts on purchasing Chinese electricity via the 110- kV power grid for the next four years, ensuring power supplies for the five Vietnamese provinces of Lao Cai, Lai Chau, Ha Giang, Yen Bai and Tuyen Quang.

Vietnam has purchased 588 million kWh each year under the contracts since they were signed in 2004, said the report.

Source: Xinhua