Cavico Corporation subsidiary, Cavico Bridge and Tunnel, has signed a $6M construction contract with Electricity of Vietnam (EVN) for work on the Song Bung 2 hydropower project in Vietnam’s Quang Nam Province, and has also announced the breakthrough of a second sub-tunnel at the A Luoi Hydropower project in Thua Thien Hue Province.

Under the terms of the contract for Song Bung 2, Cavico will be responsible for the construction of three tunnels, a surge tank, and powerhouse. Work is expected to be complete by 2014.

The project, which is included in Vietnam’s national power development plan approved by the prime minister’s office, is located on the Vu Gia-Thu Bon River in Lae village. With a total planned capital investment of $183M, the plant will have a 100MW capacity, providing 426MkWh of energy annually upon completion.

“Cavico is delighted to be awarded this construction contract for the Song Bung 2 Hydropower project,” commented Mr. Hai Thanh Tran, vice president of Cavico. “Our team and equipment are ready to be deployed to the site, and we anticipate a smooth transition into the construction process, which we expect to complete within the agreed time frame.”

At the A Luoi project, Cavico excavated approximately 1.8 miles underground between two sub-tunnels.

The 170MW plant is built on the A Sap River and is owned by the Central Hydropower Joint Stock Co.

In July 2007, Cavico was awarded a contract to excavate the tunnel as well as four sub-tunnels, a surge tank, a vertical shaft, and a service access road. The company broke through the first sub-tunnel in August. Cavico expects the A Luoi project to generate $53M in total revenues for the company. The headrace tunnel is 7 miles long and 16 feet wide and is considered the longest and most sophisticated tunnel to be constructed in Vietnam.