Cavico awarded Vietnam dam construction contract

Cavico Corporation, a leading infrastructure development company in Vietnam, has entered into an agreement to construct dams on the Huong (Perfume) River and create Ta Trach water reservoir for $3.4 million. The reservoir will be located in Duong Hoa village, Huong Thuy district, Thua Thien Hue province. Cavico will begin construction of the 717-square kilometer reservoir in August 2008 and it is expected to be completed by December 2011...

HANOI, Vietnam, July 17, 2008 -- Cavico Corporation, a leading infrastructure development company in Vietnam, has entered into an agreement to construct dams on the Huong (Perfume) River and create Ta Trach water reservoir for $3.4 million. The reservoir will be located in Duong Hoa village, Huong Thuy district, Thua Thien Hue province.

Cavico will begin construction of the 717-square kilometer reservoir in August 2008 and it is expected to be completed by December 2011. The Company will construct the main dam which will be 1,112 meters in length, 56 meters high and 8 meters wide. In addition to the main dam, four sub dams of total 660 meters in length and an overflow dam with six releasing gates will also be constructed.

This is a part of Package #20 of Ta Trach reservoir which is the second largest project in the central region of Vietnam. The project belongs to Hydropower Management No. 5, a part of Ministry of Agriculture and Farming.

The dam will limit damages caused by floods in the Hue city, a site of previously devastating floods. In addition, Ta Trach reservoir will also supply water to 35 hectares of farming land in the Huong (Perfume) river region, help control the water flow, and limit the salt level in the river. The reservoir may become a hydropower plant with a capacity of 18,000 KW that would generate an average of 60 million kwh per year.

"The Vietnamese government continues to invest into important flood control and hydropower dam projects throughout the country, demonstrating a commitment to infrastructure development," commented Mr. Hieu Van Phan, Vice President of Cavico Corp.

Cavico Corp. is focused on large infrastructure projects which include the construction of hydropower facilities, dams, bridges, tunnels, roads, mines and urban buildings.

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