VietNamNet Bridge - Deputy Minister of Industry and Trade Do Thang Hai has confirmed that the ministry will pay compensation for farmers whose crops were damaged when the dam of the Krel 2 hydro-power plant released water last Friday.

The dam at Ia Krel 2 hydropower plant on Po Co River in the Central Highlands province of Gia Lai broke again on August 1, causing a flash flood that devastated crops and infrastructure. About 60 hectares of crops were flooded and 30 hectares of rubber trees were damaged.

Nguyen Ngoc An, deputy director of the Bao Long Gia Lai Industries and Hydropower Company, the investor of the plant, said that cracks were found across the surface of the dam at 8:00 am. Thirty minutes later, a 100-metre section of the dam broke, causing water to flow out and submerge the surrounding area.

Last year, when 30 metres of the dam broke, local authorities spent nearly VND3 billion (US$141.4 million) to compensate those living nearby for property damages. Damages from the latest incident have not yet been calculated.

"We sent an urgent report regarding the incident to Prime Minister Nguyen Tan Dung for instructions and assistance," said Hoang Cong Lu, deputy chairman of the provincial People's Committee.

The Ministry of Construction requested on Saturday that Gia Lai province authorities coordinate with the ministries of industry and trade and agriculture and rural development to determine what caused the incident.

Relevant agencies were also asked to send reports to the Ministry of Construction about the safety of other lakes and dams in the province by the end of the month.

At a press conference on August 4, Deputy Minister of Industry and Trade Do Thang Hai stressed that this time the small dike around the dam was broken, not the dam.

He said that Minister Vu Huy Hoang and Deputy Minister Le Duong Quang went to Gia Lai to identify the cause and determine the consequences.

He said that the Ministry was willing to be responsible for all matters related to hydropower. He said the losses would be calculated and the ministry would pay compensation to local people.

This hydropower project has a capacity of 5,5MW. It was built in Duc Co district, Gia Lai province by Bao Long Gia Lai JSC. The project started in late 2009, licenced by the People's Committee of Gia Lai province.

The dam began to stock water from early 2013. The dam broke for the first time on June 12, 2013.

S. Tung