Energy Construction Joint Stock Company and Cavico Mining & Construction have signed contracts valued at US$3.5M to help build the project, which has a total investment budget of US$20M.

The project is located at Kong Chro village in Gia Lai province, about 80km from Pleiku City. In a statement, parent group Cavico Corp said that the hydro project is scheduled to last 11 months and calls for construction of a dam, spillway, intake gates, water channel and pressure tank.

The investor backing the project is Daksrong Joint Stock Company.

Cavico is working on a number of hydro projects in Vietnam, including Nam Chien 2, Dong Nai 3, Buon Kuop, Ban Ve and Za Hung. It is also taking on a developer role to build a cascade of hydro projects on the Dak My river.