Cavico and Bao Loc Plant's Investor agreed to US$2.8m adjustment for Bao Loc hydropower project
28-AUG-2008 Intellasia | Business Wire
Aug 28, 2008 - 7:00:00 AM
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Cavico Corp ("Cavico" or "the Company"), a leading infrastructure development company in Vietnam, today announced that Cavico Tunnel, the Company's wholly owned subsidiary, has signed an amendment with Bao Loc Hydropower Co to receive an additional amount of US$2.8 million towards cost adjustment due to high inflation and for the additional construction work at the Bao Loc hydropower project.
In 2005 Cavico entered into a US$2.1 million contract with VGR Bao Loc to construct headrace tunnel, inclined penstock tunnel, vertical shaft surge tank, and addit tunnel at the Bao Loc, 48 MW project. During the course of the construction, the investor of Bao Loc plant contracted Cavico to manage the concrete work and other additional construction work. The US$2.8 million reimbursement includes US$0.6 million cost adjustment towards increased fuel cost and construction materials due to the high inflation and US$2.2 million for the additional concrete and other work. Cavico expects to receive an initial payment of approximately US$0.7 million and the remaining amount will be paid upon handing over the project to Bao Loc Co at the end of 2008. The cost adjustment and the additional work have boosted the total value of the Bao Loc Hydropower project to US$4.9 million, an increase of 130%.
At present, Cavico is in advanced stage of negotiation and discussion with investors and owners of other projects for receiving adjustments towards increased fuel cost and construction materials due to inflation.
"We are very pleased with the cooperation from the investor of Bao Loc hydropower plant. They made necessary adjustments which enable us to complete the project as per the planned schedule," commented Phuc Minh Pham, president of Cavico Tunnel. "Our goal is to complete the tunnel concrete work ahead of its schedule. We believe in exceeding the expectations of our customers. We expect the reimbursement will both improve our revenue and profitability from this project," added Pham.
About Cavico Corp (OTCBB: CVIC -News)
Cavico Corp 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. The company employs more than 3000 employees on projects worldwide, with 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 Co employs more than 3,000 people. For more information, visit http://www.cavicocorp.com. Information on the Company's Web site or any other Web site does not constitute a portion of this release.
Contact:
Cavico, Corp.
Timothy Pham, 714-843-5456
Vice President and director
cavicohq@cavico.us
or
CCG Investor Relations Inc.
Roger Ellis, 310-477-9800
Senior vice President
Roger.ellis@ccgir.com
http://www.ccgir.com
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