The La Ngau hydropower project in Lam Dong province is facing a significant threat as it is expected to be submerged by 165 meters when the La Nga 3 irrigation project is completed. This alarming situation has been highlighted in a recent inspection report by the Lam Dong provincial inspectorate, which indicates that there is currently no definitive solution to address the issue.

Initially proposed in 2008 with an investment of over 1 trillion VND, the La Ngau hydropower project was intended to generate electricity and support local agriculture. However, a critical planning oversight has emerged, as the entire hydropower facility lies within the reservoir area of the La Nga 3 project, which was approved by the Prime Minister as part of the national irrigation strategy.

The La Nga 3 project, with a capacity of 470 million cubic meters, aims to supply over 1 billion cubic meters of irrigation water for nearly 80,000 hectares of agricultural land in Lam Dong and Dong Nai provinces. It also has the potential to provide 600,000 cubic meters of drinking water daily for local residents and generate 34 MW of electricity.

Despite warnings from the Ministry of Agriculture and Rural Development against the construction of La Ngau, the project continued to progress, leading to a complex situation where both projects are now intertwined. The La Ngau project has been stalled since 2010 due to funding issues stemming from overlapping regulations, and despite receiving land use certificates for the entire area, it has not moved forward.

Local authorities are currently evaluating two potential solutions: one that would allow both projects to coexist and another that would involve relocating the La Ngau hydropower facility downstream of the La Nga 3 dam. If no viable solution is reached, the provincial government may consider halting the La Ngau project altogether to prioritize the La Nga 3 irrigation initiative.

The ongoing deadlock has not only caused significant financial losses for investors but has also hindered local economic development, particularly in the Dong Kho region, where various national programs have been stalled due to the unresolved planning issues. As the situation develops, the Lam Dong Department of Industry and Trade is urging the La Ngau company to propose feasible solutions to move forward.