Cavico, through its subsidiary Cavico Mining, has received an investment license for the Tan My hydropower plant in Vietnam.

The license was issued to Cavico Tan My Trang An Hydropower Company, a majority-owned subsidiary of Cavico Mining, by the People’s Committee of Ninh Thuan Province.

The license grants Cavico Tan My the right to build, own and operate a hydropower plant downstream from the Tan My Irrigation Reservoir.

The plant will be built on an area of approximately 280,000sq ft in Phuoc Tan Village, Ninh Thuan Province.

The plant has a designed capacity of 6MW and is expected to produce approximately 25 million kilowatt-hours (kWh) of power annually.

At the expected rate of $0.05 per kWh, the plant will generate $1.25 million per year in total revenue.

The total estimated investment cost of the project is $6.7m, or approximately $1.1 million per megawatt.

Cavico Mining has engaged the Institute of Hydro and Renewable Energy (IHR) as a consultant to carry out a feasibility study and create a design for the project.