Cavico Won the Bidding for a Portion of Ngan Truoi Reservoir Contract Valued at $8.5 million
LOS ANGELES & HANOI, Vietnam--(BUSINESS WIRE)-- Cavico Corp. (“Cavico” or “the Company”) (OTC BB: CVIC), a leading infrastructure development company in Vietnam, today announced that on May 11, 2009 it was awarded a contract for $8.5 million from the Vietnam Ministry of Agriculture and Rural Development for construction at Ngan Truoi reservoir of Ngan Truoi Irrigation Dam. Cavico won the bidding for a portion of the reservoir project located at Vu Quang village, Ha Tinh province.
Cavico will be responsible for the construction of a diversion dam and a flood spillway with a diameter of seven meters and a length of 287 meters. Cavico expects to start the construction toward the end of May 2009 and complete the project within 20 months.
The Ngan Truoi irrigation dam project is being developed by the Ministry of Agriculture and Rural Development with a capital investment of approximately $167 million. The Ngan Truoi project was initially approved by the Vietnam Government Office in 2006 and is considered the most critical project of this province and the Ministry. This large project is divided into many portions and contracts which are being awarded at different stages of the project. Upon completion, the dam will provide water to 35,000 hectares of farming land in the six provinces north of Ha Tinh. It also will reduce the damages from the Song La River during flooding season and provide a 20MW power plant.
“We are delighted that the Ministry of Agriculture and Rural Development continues to trust and select Cavico as the main contractor for projects of which they act as the main investor,” commented Mr. Phuc Minh Pham, President of Cavico Vietnam. “After Ta Trach irrigation dam in Hue, this is the second project that the Ministry has awarded to Cavico. We are confident that with our capability and reputation, we will successfully complete the project as planned. We also hope to be awarded other larger construction packages at the Ngan Truoi irrigation dam.”
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