SOURCE: Cavico Corporation

August 04, 2006 06:30 ET

US $375 Million in Funding for Dong Nai 3 and Dong Nai 4 Hydropower Complex Completed

Vietcombank, Techcombank, BIDV and Agribank Sign Agreement With Electricity of Vietnam (EVN) to Provide Construction Financing

LOS ANGELES, CA and HANOI, VIETNAM -- (MARKET WIRE) -- August 4, 2006 -- Cavico Corporation (PINKSHEETS: CVCP), a Vietnamese company working in the fields of infrastructure development, including the construction of hydropower facilities, dams, bridges, roads, mines and urban buildings throughout Vietnam and the Pacific Rim, announced today that four state owned commercial banks will provide approximately VND 6 trillion (US $375 million) to fund the Dong Nai 3 and 4 hydropower complex. Cavico was appointed by the Prime Minister (Vietnam) under regulation 797, 400, to be the contractor for tunnel works construction on both of these Hydropower Projects. Cavico estimates the value of the contract for Dong Nai 3 to be approximately US $12 million and Dong Nai 4 approximately US $26 million.

The complex (Dong Nai 3 and 4), currently under construction, is located on the river bank-borderline between the provinces of Dak Nong and Lam Dong. The Dong Nai 3 and Dong Nai 4 hydropower plants are expected to come on line with the national grid in 2009 and 2010 respectively.

The complex, with a designed capacity of 520MW, is being built by EVN and its sub-contractors at an estimated cost of $572 million.

According to Dao Van Hung, General Director of EVN, "The Dong Nai 3 and Dong Nai 4 hydroelectricity plant is designed to generate 1.7 billion KWh of electricity per year."

Hung further stated that, "Besides supplying power to the central highlands region, construction of the complex would help to improve road traffic, water way transport and boost tourism activities."

The project would also improve the living standards of ethnic minorities in the area by contributing to socio-economic development.

Inlet excavation for the tunnel works on the Dong Nai 4 project was announced by Cavico in early July.

For more information about Cavico, please refer to the company's website at: http://www.cavicovn.com.

About Cavico Corporation

Cavico (www.cavicovn.com), founded in 2000, is a major infrastructure construction, infrastructure investment, and natural resources conglomerate headquartered in Hanoi, Vietnam. The company is highly respected for its core competency in the construction of mission-critical infrastructure including hydroelectric plants, highways, bridges, tunnels, 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 often include top multi-national corporations as well as government organizations. The company currently employs more than 3,000 people.

Vietnam's transition to a market economy has generated rapid economic growth. The country's impending ascension to the World Trade Organization is likely to provide an additional boost to economic growth and a further acceleration in the country's current infrastructure construction boom. The aggressive development of Vietnam's energy, transportation, and urban infrastructure is absolutely essential to the country's ability to compete internationally, and this aggressive build-out is creating huge growth opportunities for infrastructure construction companies such as Cavico.

"Safe-Harbor" Statement

This press release contains forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements regarding potential sales, the success of the company's business, as well as statements that include the word "believe" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Cavico Corporation to differ materially from those implied or expressed by such forward-looking statements. Such factors include, among others, the risk factors included in reports filed with the SEC under the Exchange Act. This press release speaks as of the date first set forth above and Cavico Corporation assumes no responsibility to update the information included herein for events occurring after the date hereof. Actual results could differ materially from those anticipated due to factors such as the lack of capital, timely development of products and services, inability to deliver products and services when promised, inability of potential customers to pay for ordered products and services, and political and economic risks inherent in international trade.

Contact Information

  • Contacts:

    For Cavico Corporation:

    Timothy Pham
    Phone: 714-843-5456
    Email: Email Contact

    Cavico Corporation Investor Relations:

    Cinapsys, Inc.
    Mark Moline
    Phone: 760-458-4899
    Email: Email Contact