Dec 29 2010
Cavico Corp. (Nasdaq:CAVO) ("Cavico" or the "Company"), a major infrastructure construction, infrastructure investment, and natural resources conglomerate based in Vietnam, today announced that its subsidiary, Cavico Bridge and Tunnel, has signed a construction contract with Electricity of Vietnam ("EVN"), a state-owned electricity company, for the Song Bung 2 Hydropower project.
The contract is valued at $6 million and includes cost escalation clauses that may increase the revenues associated with the project. Under the terms of the contract, Cavico will be responsible for the construction of three tunnels, a surge tank, and a power house. Cavico expects to complete construction by 2014.
The Song Bung 2 Hydropower project, which is included in Vietnam's national power development plan approved by the prime minister's office, is located on the Vu Gia-Thu Bon River in Lae village, Quang Nam Province. With a total planned capital investment of $183 million, the Song Bung 2 hydropower plant will have a 100-megawatt capacity, providing 426 million kilowatt-hours of energy annually upon completion.
"Cavico is delighted to be awarded this construction contract for the Song Bung 2 Hydropower project," commented Mr. Hai Thanh Tran, vice president of Cavico. "Our team and equipment are ready to be deployed to the site, and we anticipate a smooth transition into the construction process, which we expect to complete within the agreed time frame."
The Company also wishes to correct a statement made in its press release issued Monday, December 27, 2010. The corrected statement should read as follows: "The headrace tunnel is 7 miles long and 16 feet wide and is considered the longest and most sophisticated tunnel to be constructed in Vietnam."
Source: http://www.cavicocorp.com/