Cavico wins tunnel contract for Song Giang 1 Hydropower plant

Source: Cavico Corp.

Cavico Corp. (Nasdaq:CAVO), a major infrastructure construction, infrastructure investment, and natural resources conglomerate based in Vietnam, announced that its subsidiary, Cavico Hydropower Construction, has signed a tunnel construction contract with Song Giang Hydropower Joint Stock Company for the Song Giang 1 hydropower plant in Khanh Vinh District, in central Vietnam's Khanh Hoa Province. The cost-adjustable contract is valued at approximately $7.75 million. 

The twin-unit plant, which is located 31 miles from Nha Trang city, will have a 24-MW annual capacity once it becomes operational. Song Giang Hydropower Joint Stock Company expects to invest a total of $23.2 million in the plant. 

Under the terms of the contract, Cavico will excavate and construct a total of 11,500 feet of 10.5-foot-wide tunnels and a 131-foot-high surge tank that will measure 30.2 feet in diameter. Revenue will be recognized in stages as Cavico completes each phase of the project. 

"We are very pleased to announce our second contract of 2011," commented Mr. Hai Thanh Tran, vice president of Cavico. "This is the largest hydropower project in Khanh Hoa Province. In 2011 Cavico expects to be awarded many more tunnel construction projects as well as other civil and infrastructure construction projects throughout Vietnam. We are very confident that we will maintain our strong position in this sector due to our modern fleet of equipment and our skilled, experienced labor force."



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