Mar 23 2010
Cavico Corp. (NASDAQ: CAVO), a leading infrastructure development company based in Vietnam, today announced that it has signed an agreement for tunnel construction at a hydropower plant owned by Song Bac Hydropower JSC. The value of the contract for Cavico is expected to be approximately USD$11 million in revenue.
According to the agreement, Cavico will construct a cross tunnel 4,100 meters in length and 3.8 meters in diameter; with an incline tunnel that is 143 meters in length and 3.8 meters in diameter; an adit tunnel that is 315 meters in length, a 73 meter tall surge tank, as well as a water intake gate. Cavico expects to complete the construction within 27 months from the commencement of the project.
The hydropower plant is located in the Tan Trinh village, in the Ha Giang province, approximately 210 kilometers northwest of Vietnam’s capital city of Hanoi. The twin-unit plant will have a capacity of 42 Megawatts upon completion. The overall project requires $57 million of capital investment to complete.
“This contract award validates Cavico’s market-leading position in the field of tunnel construction and hydropower engineering in Vietnam. We are very pleased to have been selected to construct the main portions of this hydropower project,” stated Mr. Hai Thanh Tran, vice president of Cavico. “We plan to tap into our highly skilled labor force and overall hydropower construction experience to complete this project on time, safely and most importantly, ensure that this project is both profitable for Cavico and completed in the highest quality for Song Bac Hydropower JSC. We also expect to sign additional contracts for dam construction for on this project in the near future.”
Source: http://www.cavicocorp.com