The state-owned utility will use the money to fund around 30 percent of the 360-MW Ialy Hydropower Plant, according to the loan agreement it signed Tuesday.

The plant to be built in the provinces of Kon Tum and Gia Lai and estimated to cost VND6.4 trillion ($278 million) will supply power to the southern region.

Construction is set to begin in the second quarter this year and finish in December 2024.

Hydropower accounted for 23 percent of power generation in Vietnam in the first quarter, second behind coal-fired power, which made up nearly half.