Vnre.blogspot.com - Cavico Corp., a leading infrastructure development company based in Vietnam, today announced that its majority owned subsidiary, Cavico Bridge and Tunnel JSC signed a transport tunnel construction agreement with Korea-based Doosan Heavy Industries & Construction Co., Ltd. for the Noi Bai - Lao Cai Highway. The expected revenue value for this new contract is $5.8 million, excluding value added VAT. In March 2010, Cavico announced the contract for a road construction contract related to this project for $2.1 million.
According to the terms of this new agreement, Cavico's scope of work will be to construct a 530 meters long, 26 meters wide, and 8.6 meters high transport tunnel. Cavico expects to complete its portion of the project in 20 months. Doosan will supply the main construction materials such as concrete, steel and anchors, which have been valued of approximately $2 million and not included in the contract value.
Doosan Heavy Industries was awarded Package A6, a 40 kilometer-long highway section which stretches from An Thinh village to Chau Que Thuong village, Van Yen province. The total value of this project is approximately $140 million. This section of the highway will meet the requirements for speeds up to 80 kilometer per hour, with four lanes for regular traffic, two emergency lanes and a middle divider. In addition, the highway section under construction will have 18 bridges with a total length of 1,982 meters that is to be constructed, with one service station and one bus station.
The Noi Bai - Lao Cai Highway project is owned by Vietnam Expressway Corporation, which is part of the Department of Transportation. The highway will be 260 kilometers long with a required capital investment of $1.3 billion, which will be funded by a combination of preferred and normal loans from the Asian Development Bank (ADB), a multilateral finance institution that promotes economic and social progress in the Asia-Pacific region. This project is close to the northern part of country and is considered one of the nationally critical projects that is aimed on strengthening overall Vietnamese-Chinese cooperation, focused on improving the economic conditions and activities in Lao Cai and its neighboring regions.
"We are very pleased to be awarded this additional agreement for construction work on the Noi Bai - Lao Cai Highway project. The bidding process was highly competitive and we are thrilled to have won this contract," commented Mr. Hai Thanh Tran, vice president of Cavico. "As the market leader in the field of tunnel construction in Vietnam, we are confident that our skilled team will complete this project efficiently and hope to secure additional contracts associated with this major highway project."
About Cavico Corp.
Cavico Corp. is focused on large 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. The company employs more than 3,500 employees on projects worldwide, with offices throughout Vietnam and a satellite office in Australia.
Founded in 2000, Cavico is a major infrastructure construction, infrastructure investment and natural resources conglomerate headquartered in Hanoi, Vietnam. Cavico is highly respected for its core competency in the construction of mission-critical infrastructure including hydroelectric plants, highways, bridges, tunnels, ports and urban community developments. One of the Company's primary competitive advantages is its ability to nurture a project "from concept through completion" with a vertical portfolio of interrelated investment, permitting, design, construction management and facility maintenance services. Cavico's project partners include top multi-national corporations and government organizations. The Company employs more than 3,500 full-time, part-time, and seasonal workers. For more information, visit http://www.cavicocorp.com. Information on the Company's Web site or any other Web site does not constitute a portion of this release.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to obtain the necessary financing to continue and expand operations, to market its construction services in new markets and to offer construction services at competitive pricing, the Company's ability to complete projects in the time frame specified; anticipated revenue from the projects to attract and retain management, and to integrate and maintain technical information and management information systems; the effects of currency policies and fluctuations, general economic conditions and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. These statements include, without limitation, statements regarding our ability to prepare the Company for growth; the Company's planned expansions, and predictions and guidance relating to the Company's future financial performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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Source: Market Wire/Cavico Corp