Works started on a Luoi hydro power plant, a major project in Vietnam's central province of Thua Thien Hue, on June 30. The 170MW power plant with two turbine groups is built on Sap river at an estimated cost of 3.23 trillion VND (202 million US Dollars), Vietnam News Agency (VNA) reported. When completed in 2010, the plant is expected to generate about 686.5 million kWh each year for the national electricity grid. The project is also expected to effectively contribute to improving economic infrastructure and living conditions for local people.