Cavico Corp. (CAVO) Announces Subsidiary Cavico Infrastructure’s New Contract Negotiations

By @ibtimes on

Cavico Corp., a provider of construction and engineering services for civil construction infrastructure projects, announced that its subsidiary, Cavico Infrastructure, is in the process of negotiating various new contracts as the Company begins its second quarter for 2011. Cavico has expected the total value of these contracts to be approximately $6 million.

Cavico is in the negotiation process for the supply of 10.6 million cubic feet for various types of construction stones to Vinh Tan Thermopower Plant. This contract is valued at $2.5 million.

Vinh Tan Thermopower Plant is located in the Tuy Phong District, Binh Thuan Province. As planned, Vinh Tan Thermopower Center has a total investment capital valued at about $6.1 billion, which includes three power plants and one seaport with a total designed capacity of 4,400 MW, which produces about 28.6 billion KWh per year.

Cavico is in the midst of negotiating with Tay Nguyen Mineral Exploitation Company, a subsidiary of East North Company of Vietnam’s Ministry of Defense, for Phase II of a contract to excavate and remove dirt and rocks at the Dong Giao Coal Mine. The value of this contract is estimated at $2 million.

In November of 2010, Cavico was presented with the Phase 1 of a construction contract at this mine. Dong Giao Coal Mine is located at Tam Diep Village in Ninh Binh Province in Northern Vietnam. The mine has an estimated 35.3 million cubic feet of coal reserves. A total of 353.1 million cubic feet of dirt and rocks must first be removed in multiple stages.

Cavico has also entered negotiations with Tay Nguyen Mineral Exploitation Company in order to provide construction services for Dak Nong Ecological Dam, which is located in the Dak Nong Province. The value for this contract is estimated at $1.5 million.

“Cavico is a reputable contractor that possesses many years of experience in the construction sector in Vietnam,” commented Mr. Hung Manh Tran, executive vice president of Cavico. “We also employ a highly skilled work force and a fleet of modern machines. Therefore, we are very confident that we will be awarded these contracts. We will continue to regularly update the investment community regarding these and other new contracts.”

The company also recently announced that its subsidiary, Cavico Hydropower, has broken through adit sub-tunnel No. 2 and has completed its construction of a 138-foot high surge shaft at the Song Giang 2 hydro project in Vietnam.

Cavico’s subsidiary, Cavico Bridge, also announced that it has scheduled a third and final tunnel breakthrough at the Luoi Hydropower project. The breakthrough is scheduled to occur in the second week of April 2011.
“We are pleased to prepare for the final breakthrough on the A Luoi Hydropower project,” commented Mr. Hung Manh Tran, executive vice president of Cavico. “Our efficient, highly skilled team is working diligently to excavate the final meters of the tunnel on this complex project.”

Cavico Corp. is a provider of construction and engineering services for civil construction infrastructure projects. The company constructs tunnels, highways, roads, bridges, mines, and dams. Cavico Corp invests in hydropower electric plants, cement production plants, mining operations, and urban developments in Vietnam and Laos. Additionally, it engages in trading machinery, equipment, and materials for civil construction industry; cement factory and tourism zone operation; stone exploitation business; and steel fabrication business, as well as leasing equipment and machinery. The company mainly serves customers in the public sector. The company is headquartered in Huntington Beach, California.

For more information on Cavico Corp. and its products, visit their website: www.cavicocorp.com

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