Cavico Corporation announced that it has signed an additional construction contract with Lilama for the Hua Na Hydropower plant. Cavico, a Vietnam-based infrastructure development company, is expected to earn additional revenues of $11.9 million from this contract. The initial contract value signed by the company with Lilama, a state-owned company, was $4.9 million for the construction work.
Cavico Power & Resource, a majority-owned subsidiary of Cavico, will construct the sub headrace tunnel No. 2, a surge sharp tank and a water diversion tunnel under the terms of the new contract. The $250-million Hua Na Hydropower plant, which is located at Nghe An province close to Chu River, is anticipated to produce about 180 MW of power and provide 706 million kWh per year. The plant will help to considerably reduce electricity shortages that are existing in the Central provinces including Ha Tinh, Nghe An and surrounding provinces. The project is expected to be completed in five years by Cavico.
Vice president of Cavico, Hai Thanh Tran, said that vital components in a hydropower plant include the sub headrace tunnel, surge sharp tank, and diversion tunnel. Hai Thanh Tran was happy with the client’s confidence with Cavico by entrusting it with the construction of most vital parts in the project. Tran said the company was looking forward to work closely with other contractors and project owner to complete this hydropower project as per schedule.