Cavico to extend Vietnamese hydropower

4 January 2011

Vietnam based Cavico announced on 28 December that it has entered into a USD 6M contract with the state owned Electricity of Vietnam (EVT) for construction work on the Song Bung 2 hydropower project.

Under the agreement Cavico will build three tunnels, a surge tank and a power house on the site which is on the Vu Gia-Thu Bon River, near Lae village, Vietnam. A completion date has been set for 2014.

The total USD 183M plant proposal is one part of Vietnam’s National Development Plan. The plant will have a capacity of 100 megawatts, producing 426Mkwh annually.

The contract includes contingency clauses for cost escalation as a result of unforeseen difficulties.

"Cavico is delighted to be awarded this construction contract for the Song Bung 2 Hydropower project," commented Mr. Hai Thanh Tran, vice president of Cavico. "Our team and equipment are ready to be deployed to the site, and we anticipate a smooth transition into the construction process, which we expect to complete within the agreed time frame."