Cavico Corp received decision to invest and construct Hoa Binh ecological and cultural zone
08-MAY-2008 Intellasia | Business Wire
May 8, 2008 - 7:00:00 AM
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Cavico Corp (Cavico) (OTCBB:CVIC) today announced that Luong Son International Tourism Investment JSC, its wholly own subsidiary, has been authorised by Hoa Binh People's Committee to invest and construct the Hoa Binh ecological and cultural zone known as "Ecozone."
This announcement is made in conjunction with the Vietnamese government's announcement that it has approved a plan to expand the capital city of Hanoi in its effort to create a national centre for politics, culture, economy and science, noted the Vietnam Investment Review.
Cavico's project will be located within the newly announced boundaries of Hanoi. Under the plan, Hanoi will be expanded to the west and will cover all of Ha Tay province, the Me Linh district of Vinh Phuc province, and four communes in Luong Son district of Hoa Binh province. The expansion will triple the geographic size of Hanoi and expand its population to over 6.2 million people.
The plan will be submitted to the National Assembly, the country's top legislature, for final approval at its session to be held this month. "If the plan is approved, the process of merging Hanoi with other areas will start on July 1," said minister of Home Affairs Tran Van Tuan.
In conjunction with this plan Cavico Corp.'s future construction site will be located in Luong Son village, Hoa Binh province. This site is located along Highway Six, which will be the main artery connection from Hanoi to the northwest provinces. The 1.3 square-mile zone will be constructed over a four-year period beginning in 2010, at a total investment cost of US$930 million. Net profits are anticipated to be around US$150 million. The zone, the first of its kind in the nation, will be divided into nine sub-centres including Cavico Centre, a recreational park, entertainment and convention centre, Muong Village, Friendship Village, World Village, high-end homes, a restaurant and hotel.
"We intend to build a world-class international tourism zone to meet both domestic demand and to attract national and international vacationers," stated Hai Thanh Tran, Cavico vice President. "Also within this zone we would like to preserve the unique Muong culture, which represents 1.5% of Vietnam's population. The Cavico Tower, Chieng Ngan Urban, Ngo Sai Urban and the Hoa Binh projects will enable us to significantly expand our real estate holdings in Vietnam and will enlarge our profit potential."
About Cavico Corp (OTCBB: CVIC)
Cavico 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. Headquartered in Hanoi, with 3000 employees at projects worldwide, the company has offices throughout Vietnam and a satellite office in Australia.
Founded in 2000, Cavico is a major infrastructure construction, infrastructure investment and natural resources conglomerate headquartered in Hanoi, Vietnam. Cavico is highly respected for its core competency in the construction of mission-critical infrastructure including hydroelectric plants, highways, bridges, tunnels, ports and urban community developments. One of the company's primary competitive advantages is its ability to nurture a project "from concept through completion" with a vertical portfolio of interrelated investment, permitting, design, construction management and facility maintenance services. Cavico's project partners include top multi-national corporations and government organisations. The company employs more than 3,000 people. For more information, visit http://www.cavicocorp.com.
Contacts
Cavico Corp.
Timothy Pham, vice President and director, 714-843-5456
cavicohq@cavico.us
or
Investor Relations Contact:
CCG Investor Relations
Mark Collinson, Partner, 310-231-8600, ext. 117
mark.collinson@ccgir.com
http://ccgir.com
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