Cavico Corp. (NASDAQ: CAVO),
a leading infrastructure development company based in Vietnam, today announced that its majority-owned subsidiary, Cavico Mining, listed on Hochiminh Stock Exchange (HOSE: MCV), signed a construction contract with Investment & Development Management No.4 to construct a diversion canal for Ban Mong Reservoir. The revenue for this contract is estimated to be $4.3 million. Cavico Mining expects to complete this construction contract within ten months.
The Ban Mong Reservoir, owned by the Investment & Development Management No.4 of the Ministry of Agriculture and Rural Development, is located in the Quy Hop district, in the Nghe An province which is southwest from Hanoi. This project is considered to be the largest water reservoir project in the western region of Nghe An province. According to the reservoir’s architectural design, the Ban Mong Reservoir will be 671 meters long, be built on 2800 square kilometers of land and have 235.5 million cubic meters of capacity. The main construction work associated with this project includes the primary dam that is 340 meters long, 44 meters high and 11 meters wide; and an auxiliary dam that is 164 meters long and 10-meter wide surface; and a 5-gate overflow spillway.
In addition to minimizing damages caused by flooding, the Ban Mong Reservoir will increase water supply during the dry seasons. The project’s owner has plans to build water pump stations on the Dinh and Hieu Rivers to irrigate 30,600 hectares of rice field and fruit trees. A future hydropower plant to be built at the reservoir will have a 42 MW daily capacity to provide an average of 160 million KWH per year.
“There is a tremendous potential and demand for water reservoirs and dams in Vietnam. This sector receives a lot of focus and financial support from the government,” stated Mr. Hai Thanh Tran, vice president of Cavico. “Cavico’s expertise allows us to leverage our overall skills and diversify into this promising sector, while strengthening our traditional hydropower construction, and is in line with our overall long-term growth strategies. We are confident that our success and experience at Cua Dat, Ta Trach, Ngan Truoi, and Ban Mong projects will enable us to win additional contracts for the Ban Mong Hydropower Plant and contracts in the field of dam and reservoir construction.”