La La Hydropower Plant

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Mai Linh Energy JSC was planning the development of the 3 MW La La hydropower plant, in the Tan Lap, near Tan Long Commune, Huong Hoa district, Quang Tri province. The project was expected to produce 12.1 million kWh annually. The reservoir for the plant was expected to be 0.031 km2 at maximum water level. The plant was to consist of three Francis turbines. Output was expected to be supplied to the national grid via a 22kV single circuit transmission line to the Khe Sanh station. Construction started in February 2008, and commissioning was expected for mid-2011. The turbines were to be supplied by Ganfa China, as well as the generators and transformers, through a contract signed 10 June 2008. Expected life for the project was 30 yeras. Expected investment costs were VND 53,503 million ($2.5 million). The project was expected to be financed through the State Bank of Vietnam. The project also applied for UNFCCC/CDM financing through Ecotawa AG. The insurance costs for the rpoject were VND 200 million ($9,500). The project received a tax incentive based on geographic location and was expected to be subject to 0% income tax in the first 4 years, followed by 5% in the next 9 years and 10% thereafter. Total loan amount for the project was VND 37,451 million ($1.8 million), or 70%, at 12.6%. The project was expected to generate 6,905 tons of CERs per year