According to the concept of development of countries in Southeast Asia region of the Economic and Social Commission for Asia and the Pacific or ESCAP, the Coordinating Committee for Lower Mekong Survey was established. The Thai government at that time was advised to build Ubol Ratana Dam for electricity generation, irrigation, consumption, industry, flood prevention, fishery and tourism.

Ubol Ratana Dam formerly known as “Phong Neeb” is the second multipurpose dam of the country and the first and large hydro power plant in the Northeast under the leadership of Prof. Dr. Boonrod Bintson, the first Governor of the Northeast Electricity Authority. The construction of Ubol Ratana Dam started in 1964 and was completed in 1966. The reservoir area of the dam is 12,000 km² having the 3 main rivers for discharging water to store in the dam’s reservoir consisting of Phong river, Chern river which has its water source from Phetchabun mountain range and Pha Niang river of which its water source is from Phu Phan mountain range in Nong Bua Lamphu Province.

Ubol Ratana Dam provides great benefits to the people in many aspects such as

Electricity generation : The power plant is installed with 3 generators each of 8.4 MW having the annual generated electricity averagely of 26 million kWh which can replace the use of diesel oil in the thermal power plant approximately 15.42 million liters per year.

Agriculture : Ubol Ratana Dam can supply water to the irrigation areas in Muang, Nam Phong , Kra Nuan Districts in Khon Kaen Province, and in Chiang Yuen, Kosum Phisai Districts in Maha Sarakham Province. Farmers can do farming and growing crops in the rainy season in the areas of 264,000 rai and in the dry season of 170,000 rai.

Environmental protection : The water quality of downstream of Ubol Ratana dam is maintained to be in an acceptable criteria for use and consumption.

Cultivation and water use in the surrounding reservoir: At the areas above the reservoir, there are 53 water pumping stations for supplying water to the irrigation areas of 124,000 rai. The dam helps to alleviate the flood problem in the rainy season.

Fishery : Ubol Ratana Dam serves as the place for fish breeding and fishery in the reservoir. The amount of fishes catch per year is about 1 million kilograms. Villagers living around the reservoir and nearby areas have more income from processed fish product, a well- known local product of Ubol Ratana Dam. Moreover, the dam is one of the tourist attractions of Khon Kaen Province.  

In order to increase safety to the dam and efficiency of alleviating flood problem, EGAT has reinforced the dam crest to be at the level of 188.10 meters and extended the rear dam to 125 meters. The improvement work started at the end of 1984 and was completed in 1987. On 14 March 1966, Their Majesties King Bhumibol and Queen Sirikit accompanied by Princess Ubol Ratana, performed the opening ceremony of the dam.