The revenue for this additional contract is expected to be $11.9m. Cavico signed the initial contract for $4.9m with Lilama for construction work at this project in April 2009.
According to the term of the new agreement, Cavico’s majority-owned subsidiary Cavico Power & Resource will be responsible for the construction of the sub headrace tunnel no 2, a water diversion tunnel and a surge sharp tank. The Hua Na hydro power plant, a twin turbine plant that requires a capital investment of approximately $250m is located on a 20.6sqkm property in the Dong Van village of the Nghe An province near the Chu river.
Once completed, the hydro power plant is expected to generate approximately 180MW of power and will supply 706 million kWh annually. Cavico expects to complete this project in five years.
Hai Tran, vice president of Cavico, said: “The sub headrace tunnel, diversion tunnel and surge sharp tank are all critical components of a hydro power plant. Once again, we are pleased that this client has entrusted us with the most critical parts of the overall project.
“This additional work builds on the successful completion of Cavico’s initial scope of work, the construction a diversion tunnel and coffer dam, which validates Cavico’s strength and capabilities in the field of underground construction. We look forward to continuing our close working relationship with the project owner and other contractors at the plant to complete this project on time and in a quality manner.”
