Cavico Corp. announced that its subsidiary, Cavico Bridge and Tunnel, has signed a construction contract with Electricity of Vietnam, a state-owned electricity company, for the Song Bung 2 hydropower project.
The contract is valued at $6 million and includes cost escalation clauses that may increase the revenues associated with the project. Under the terms of the contract, Cavico will be responsible for the construction of three tunnels, a surge tank and a powerhouse. Cavico expects to complete construction by 2014.
The Song Bung 2 hydro project, which is included in Vietnam’s national power development plan approved by the prime minister’s office, is located on the Vu Gia-Thu Bon River in Lae village, Quang Nam province. With a total planned capital investment of $183 million, the Song Bung 2 hydropower plant will have a 100-MW capacity, providing 426 million kilowatt-hours of energy annually upon completion.
Recently, Cavico Corp. announced that its wholly owned subsidiary, Cavico Hydropower, has successfully completed all construction activities at the Dong Nai 3 hydropower plant.
The Dong Nai 3 hydropower plant is located on the Dong Nai River, in the Quang Khe village located in Dac Nong province. Dong Nai 3 has a twin unit with a capacity of 180 MW, reports indicate.
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