Cavico Corp, through its subsidiary Cavico Hydropower Construction, has signed a $7.75m tunnel construction contract with Song Giang Hydropower Joint Stock Company for the Song Giang 1 hydropower plant in the Khanh Hoa province of central Vietnam.

The twin-unit plant, which is located 31 miles from Nha Trang city, will have a 24MW annual capacity once it becomes operational.

As per the terms of the contract, Cavico will excavate and construct a total of 11,500ft of 10.5ft wide tunnels and a 131ft high surge tank that will measure 30.2ft in diameter.

Song Giang Hydropower Joint Stock Company anticipates to invest a total of $23.2m in the plant.

Cavico president Hai Thanh Tran said that this is the largest hydropower project in Khanh Hoa province.