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Cavico Corp. (CAVO) Announces Tunnel Construction Contract

Cavico Corp. has a proven track record of large-scale infrastructural development and natural resource exploitation in Vietnam. They announced yesterday the award of a contract from Vinh Son – Song Hinh Hydropower Joint Stock Company to construct an access tunnel and road servicing the Thuong Kon Tum hydro-electric plant. The contract is broken into two phases, with estimated revenue for the first phase of $7 million and $5 million for the second.

Phase one of the project entails the excavation of an access tunnel 1.8 kilometers in length which will be large enough to accommodate the vehicles servicing the plant, as well as the refurbishment of the plant’s existing roadways. Phase two responsibilities for Cavico will consist of pouring the concrete for the service access tunnel.

Located on the DakNghe River in Kon Tum province, the Thuong Kon Tum hydropower plant is centrally located in Vietnam. After anticipated completion in 5 years, this 240 megawatt installation is expected to generate some 1070 million kilowatt-hours per year. With a capital investment of $300 million and an experienced underground construction contractor like Cavico onboard, the multiple, complex construction packages will include such record-setting achievements as Vietnam’s longest tunnel (16 kilometers).

Mr. Hai Thanh Tran expressed his confidence in the ability of his 3,000 employee strong company to tackle the many advanced engineering challenges the project will involve. Founded in 2000 with offices throughout Vietnam, Cavico Corp. is based in Hanoi and has an established reputation for taking vital infrastructural projects, such as this hydropower plant, from concept to completion.

A strong portfolio covering all aspects of construction, from design and permitting to facility maintenance servicing, allows Cavico Corp. to leverage the power of its project partners which include leading multi-nationals and government organizations.

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