Russian power company RusHydro has agreed to buy a 75% stake in Dakdrinh Hydropower Company from Vietnam Oil and Gas Corporation.

The agreement was signed by Evgeny Dod, Chairman of the Management Board of RusHydro and Phung Dinh Thuk, President and General Director of Vietnam Oil and Gas Corporation. The sale and purchase agreement drafts are expected to be prepared by the end of December.

Dakdrinh Hydropower Company specialises in the development of hydropower projects in Quang Ngai province in Vietnam. The company is currently building a 125MW hydro system on the Dak Drinh River in the province.

In a statement on its website, RusHydro said it had been prompted to purchase the company because, at present, VVietnam is one of the most stable and rapidly growing markets in Asia. There are plans to increase the installed capacity of the country’s power plants from 26,000MW in 2010 to 60,000MW by 2015. At present 31 hydropower plants with a total capacity of 7500MW are under construction in the country.