Cavico Corp. (NASDAQ: CAVO), a leading Vietnamese infrastructure engineering & construction, infrastructure investment and natural resources company, today announced that its majority owned subsidiary, Cavico Transportation JSC, signed a carbon emissions reduction (CER) sales agreement related to the operations of the Company’s Cau Dat wind power plant being built in Lam Dong province. The agreement, known as a Clean Development Mechanism (CDM) Emissions Reductions Purchase Agreement, was made with Swiss-based Carbon Resource Management S.A. (CRM). Once the Cau Dat wind power plant is operational, Cavico Transportation and CRM will finalize the financial terms for Cavico’s CERs. According to the terms of the agreement, CRM agrees to purchase all the CERs generated by Cavico from the Cau Dat project for 7 years after the startup of the plant, which Cavico expects to begin operations in 2014. After the expiration of this contract, Cavico has the option to continue the agreement with CRM or to select another purchaser that may give it more favorable financial terms for its CERs. The selection of the CDM partner was made under a Kyoto Protocol mechanism to assist industrialized countries in reducing their greenhouse gas emissions. It allows Cavico to negotiate the price of electricity with the Vietnamese government and profit from the reduction in carbon emissions. According to the initial studies, Cau Dat plant will reduce on average 37,000 tons of CO2e per year (1 CER is equivalent to 1 ton of CO2e). Currently, the market price of one CER unit is approximately $15. As previously announced, Cavico received approval from the Lam Dong province to develop the Cau Dat Wind Power project. Upon completion, the 30-Megawatt wind power plant will be connected to the national grid. The wind power plant may eventually be expanded to 100-300 Megawatts. In September 2009, Cavico hired Altus AG of Germany, an international renewable energy project development company based in Karlsruhe, to consult on a technical feasibility study and wind measurements.
“We are pleased to share our progress relating to the Cau Dat wind power project,” commented Mr. Hai Thanh Tran, vice president of Cavico. “With the continued support and encouragement from the Lam Dong’s People Committee, the local government and the Vietnamese government’s increased focus on clean energy projects, we believe this will be a win-win for all parties involved. Cavico strongly believes that wind power will significantly contribute to alleviating the current electricity shortage problems in Vietnam.”Vietnam Business News (VBN) reported encouraging developments at an international conference on renewable energy held in Hanoi on March 9th. The conference focused on key issues for renewable energy development including establishing a legal framework, opportunities and challenges and technology and research. Vietnam aims to generate about 5% of its electric power from renewable energy sources by 2025. Vietnam’s Deputy Minister of Industry and Trade, Nguyen Thanh Bien stated that renewable energy is, “an important part of Vietnam’s sustainable development plan, because it is a safe energy and will help generate jobs and develop rural areas.” 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.