Cavico Corp. (NASDAQ: CAVO),
a leading infrastructure development company based in Vietnam, today announced that its majority owned subsidiary, Cavico Construction and Infrastructure Investment JSC has signed a road construction agreement with Korea-based Doosan Heavy Industries & Construction Co., Ltd. for the Noi Bai – Lao Cai Highway. The revenue for the contract for Cavico is $2.1 million.
According to the terms of the agreement, Cavico will construct a 3 kilometer long road base and drainage for the Noi Bai – Lao Cai Highway Project Package A6. Cavico’s scope of work will be to excavate 700,000 cubic meters and refill 550,000 cubic meters of earth needed for the road base and drainage for the highway. Cavico expects to complete its portion of the project in 20 months.
Doosan Heavy Industries was awarded Package A6, a 40 kilometer-long section which stretches from An Thinh village to Chau Que Thuong village, Van Yen province. The total value of this project is approximately USD$140 million. This section of the highway will meet the requirements for speeds up to 80 kilometer per hour, with 4 lanes for regular traffic and 2 emergency lanes and a middle divider. In addition, the section 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 USD$1.3 billion. This project is close to the northern part of country and is one of the nationally critical projects that is aimed on strengthening overall Vietnamese-Chinese cooperation, focused on improving the economic conditions in this region.
“We are very happy to be associated with a project that is critical to the economic development of this region,” commented Mr. Hai Thanh Tran, vice president of Cavico. “We are confident that we will complete this project in a timely manner and hope to win more contracts associated with the Noi Bai – Lao Cai Highway project.”