Vietnam-based infrastructure development company Cavico has announced that its wholly owned subsidiary, Cavico Hydropower Construction, has secured a $9.8 million construction contract from Song Giang 2 Hydropower.

According to the company, Cavico Hydropower will be responsible for the construction of a 3.9km long headrace tunnel, two sub tunnels of 650m length, and a 42m tall surge tank.

The company expects to complete the construction within a period of 20 months. The first phase of the project, which will involve site preparation, is expected to commence in the first quarter of 2009.

The Song Giang 2 hydropower plant will be built on the Song Giang River. The plant will be located southwest of Khanh Hoa province in Vietnam, which is 30 miles away from Nha Trang. Upon completion, the 37MW hydropower plant is expected to generate 141 million kWh of electricity annually, said the company.

The plant will be connected to the national grid to help ease the shortage of electricity supply in the country. The Song Giang 2 hydropower plant has a total estimated value of approximately $50 million.

Cavico Corporation is focused on infrastructure projects, which include the construction of hydropower facilities, dams, bridges, tunnels, roads, mines and urban buildings. Cavico is also making investments in hydropower facilities, cement production plants and urban developments in Vietnam.