Cavico Corp. (NASDAQ: CAVO), a leading infrastructure development company based in Vietnam, today announced that its subsidiary, Cavico Vietnam, on March 31, 2010, received an investment license for the formation of Cavico Renewable Energy Joint Stock Company, or Cavico CRE. Cavico CRE’s main business will focus on developing renewable energy-related projects such as hydroelectric, wind power, solar energy, and biofuels. Cavico CRE requires a total investment of $14 million. An initial investment of $4.2 million will be contributed within 90 days after receiving the investment license. The remaining $10 million will be contributed within three years following the initial start-up. According the share structure, Cavico Vietnam will own 10%, or 2,400,000 shares and Cavico Transport, a subsidiary of Cavico Vietnam, will own 20%, or 4,800,000 shares of Cavico CRE. The founding partners plan to offer the remaining shares of Cavico CRE to outside investors. “Cavico believes that our focus on renewable energy is a strategic move in the right direction for the Company,” comments Mr. Hai Thanh Tran, Cavico’s vice president. “We will continue to build upon our market-leading position with traditional engineering, construction and infrastructure projects, as well as invest in some select real estate projects, we believe that we can leverage our expertise and apply these skills towards building our renewable energy capabilities. We believe this will help us to broaden our investment opportunities and improve our future profit margins. Cavico CRE’s first project will be with the Cau Dat wind power plant, located in Lam Dong province.” Currently, there are about twenty-five investors registered for licenses to build windpower plants, for up to 1000 MW, in the highlands of Vietnam, such as Binh Thuan, Ninh Thuan, and Lam Dong provinces. There is a 15 MW plant currently in operation in this highland region and Cavico Transport is the second enterprise that was issued a Windpower Investment License by Lam Dong People’s Committee.
According to studies conducted by World Bank, Vietnam has the potential for 513,360 MW of windpower. Furthermore, according to the study, 8.6% of Vietnam’s land is considered “good” or “very good’ for windpower, while the land in Thailand, Laos and Cambodia only has a favorable rating of 0.2%, 2.9%, and 0.2% respectively.In 2009, Vietnam’s power supply grew at an average rate of 13% per year, while the country’s GDP grew at about 6.5%. In August 2009, the Office of the Prime Minister issued a government decree requesting governmental offices on all levels to provide incentives and support in the development of renewable energy projects. According to another government decree, domestic as well as foreign renewable energy investors will be given incentives such as reduced taxes, licenses for land usage, and credit lines to develop renewable energy. Vietnam’s Deputy Minister of Industry and Trade, Nguyen Thanh Bien has publicly stated that renewable energy is an important part of Vietnam’s sustainable development plan and Vietnam aims to generate 3% in 2010, 5% in 2020, and 11% in 2050, of its electric power from renewable energy sources. 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 3,000 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 3,000 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.