During the 1960s, power production in Lao PDR was not sufficient to meet national needs. The government of Lao PDR had attempted to meet power requirements through small local developments and power loans from Thailand. A feasibility study presented in December 1962 was the first detailed plan outlining the Nam Ngum 1 project. The study explained how the proposed dam could contribute to hydropower generation, flood control, and irrigation. The project was well received by the Lao PDR government and many international organizations, and the plan for construction was finalized in 1968.Three distinct feasibility studies were conducted to outline each stage of the project, and three distinct funds were established to fund all three stages of the Nam Ngum 1 project. Ten countries gave financial aid to pay for the construction of the project.These funds were collected, overseen, and administered by the United Nations and The World Bank. The total cost of the Nam Ngum Dam was $97 million U.S. dollars.