Cavico CRE requires a total investment of $14m. An initial investment of $4.2m will be contributed within 90 days after receiving the investment license. The remaining $10m will be contributed within three years following the initial start-up.
The subsidiary Cavico Vietnam will own 10% and Cavico Transport, a subsidiary of Cavico Vietnam, will own 20% of the renewable energy company. The founding partners plan to offer the remaining stakes to outside investors.
Hai Thanh Tran, vice president of Cavico, said: “Cavico believes that our focus on renewable energy is a strategic move in the right direction for the company. We will continue to build upon our market-leading position with traditional engineering, construction and infrastructure projects, as well as invest in some select real estate projects, we believe that we can leverage our expertise and apply these skills towards building our renewable energy capabilities.
“We believe this will help us to broaden our investment opportunities and improve our future profit margins. Cavico CRE’s first project will be with the Cau Dat wind power plant, located in Lam Dong province.”
Currently, there are about twenty-five investors registered for licenses to build windpower plants, for up to 1000MW, in the highlands of Vietnam, such as Binh Thuan, Ninh Thuan, and Lam Dong provinces.
There is a 15MW plant currently in operation in this highland region and Cavico Transport is the second enterprise that was issued a Windpower Investment License by Lam Dong People’s Committee.
According to studies conducted by World Bank, Vietnam has the potential for 513,360MW of windpower. Furthermore, according to the study, 8.6% of Vietnam’s land is considered ‘good’ or ‘very good’ for windpower, while the land in Thailand, Laos and Cambodia only has a favorable rating of 0.2%, 2.9%, and 0.2% respectively.
