Dec 30 2010
Cavico, a Vietnam-based infrastructure developing and investing company, declared that its auxiliary, Cavico Bridge and Tunnel, has contracted a deal with Electricity of Vietnam (EVN), a government owned electric utility company, to construct Song Bung 2 Hydropower project.
The cost of the project valued over $6 million also comprises cost appreciation clauses that may affect the revenues linked to the project.
In accordance with the signed terms of the accord, Cavico will construct three tunnels, a power house and a surge tank needed for the hydropower project. The company anticipates completing the construction by the year 2014. The project conceived under the national power development plan of Vietnam and approved by the government will be located over the Vu Gia-Thu Bon River, in Lae village, situated in Quant Nam Province. The project planned with an investment of around $183 million will have the capability to generate around 100 MW and provide over 426 million kWh of power every year on completion.
Hai Thanh Tran, Cavico’s vice president, expressed happiness about the contract and said that his company has kept the required team of people and the equipment required for the project ready for immediate deployment and anticipates to complete the project within the stipulated time period.