Cavico Corp (“Cavico” or “the Company”) (OTC BB: CVIC -News), a leading infrastructure development company in Vietnam, today announced that the Company’s wholly owned subsidiary, Cavico Hydropower Construction, was awarded a US$9.8 million construction contract by Song Giang 2 Hydropower Joint Stock Co (“Song Giang”) on January 12, 2009.
Cavico Hydropower will be responsible for the construction of a 3,900 metre long headrace tunnel, two sub tunnels of total 650 metres in length, and a 42 metre tall surge tank. Cavico Hydropower expects to complete the construction within a period of 20 months. The first phase of the project which will involve site preparation is expected to commence in the first quarter of 2009.
Song Giang 2 hydropower plant will be built on the Song Giang River. This plant will be located southwest of Khanh Hoa province, which is 30 miles away from Nha Trang city. Upon completion, the 37 megawatt hydropower plant is expected to generate 141 million kilowatt-hour of electricity annually. The plant will be connected to the national grid to help to ease the shortage of electricity supply in the country. The Song Giang 2 hydropower plant has a total estimated value of approximately US$50 million and is considered to be one of the largest hydropower projects in the Khanh Hoa province.
“We are pleased to announce our first contract of the year 2009. We believe the construction of the hydropower plant is a great start for the year as we have an experienced team of professionals deployed to work on this project,” commented Hai Thanh Tran, vice president of Cavico. “We expect to enter into additional contracts during the year as the Vietnamese government intends to revive the economy by encouraging additional infrastructure projects.”