Cavico signs $11.9 million contract for Vietnam hydropower plant

Hanoi, Vietnam, February 10, 2010 — Cavico Corp. signed an additional construction contract at the Hua Na Hydropower plant with Lilama, a state-owned company owned and operated by the Vietnamese Ministry of Construction.

The revenue for this additional contract is expected to be $11.9 million. Cavico signed the initial contract for $4.9 million with Lilama for construction work at this project in April 2009.

According to the terms of this new agreement, Cavico’s majority-owned unit, Cavico Power and Resource, will be responsible for the construction of the sub headrace tunnel No. 2, a water diversion tunnel and a surge sharp tank.

The Hua Na Hydropower plant, a twin turbine plant that requires a capital investment of about $250 million is located on a 20.6 square kilometer property near the Chu River.

Once completed, the hydropower plant is expected to generate about 180 MW of power and will supply 706 million kWh annually.

The plant will help meet a material electricity demand in Vietnam and alleviate shortages currently experienced in the central provinces, which includes the Nghe An, Ha Tinh and surrounding provinces. Cavico expects to complete this project in five years.

“The sub headrace tunnel, diversion tunnel and surge sharp tank are all critical components of a hydropower plant,” said Hai Thanh Tran, vice president of Cavico. “Once again, we are pleased that this client has entrusted us with the most critical parts of the overall project. This additional work builds on the successful completion of Cavico’s initial scope of work, the construction a diversion tunnel and coffer dam, which validates Cavico’s strength and capabilities in the field of underground construction. We look forward to continuing our close working relationship with the project owner and other contractors at the plant to complete this project on time and in a quality manner.”

Cavico Corp. is focused on large infrastructure projects, which include the construction of hydropower facilities, dams, bridges, tunnels, roads, mines and urban buildings. Cavico is also making investments in hydropower facilities, cement production plants and urban developments in Vietnam.

 

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