Cavico Submits Request for Permission to Build the US $265 Million Dak My 1 Hydropower Project
Project Will Be 45 Percent Owned by Cavico and Its Subsidiaries
Mar. 5, 2007 04:00 PM
LOS ANGELES CA and HANOI, VIETNAM -- (MARKET WIRE) -- 03/05/07 -- 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, today announced that it has submitted a
request for permission to the Vietnamese government to begin initial
planning and technical work on the Dak My 1 Hydropower Project.
Mr. Ha Quang Bui, CEO of Cavico, commented, "We have invested in other
projects, however, Dak My 1 will be the first project where Cavico is
operating in the capacity of a majority investor, contractor and
owner/operator. This is in direct alignment with our stated goals of
moving into the operation and ownership of large infrastructure projects."
He added, "As an owner of this project Cavico will create a recurring
revenue stream that will grow as Vietnam grows and prospers. We hope to
gain approval quickly and begin planning and construction by early 2008."
Cavico and its partners have officially submitted documentation to the
Ministry of Industry for permission to build Dak My 1. Cavico owns a 40%
interest in the project, which will be its first owner/operator hydropower
project. Other partners include: Petro Vietnam, which holds 10%; Vietnam
Coal Mining and Mineral Corporation 10%; Providential Holdings Inc (OTCBB: PRVH) 15%; Vietnam Agricultural and Rural Development Bank 10%; Military
Commercial Joint Stock Bank 5%; Hanoi Housing Commercial Bank (Habubank)
5%; and Cavico Mining 5%.
Dak My 1 will require a total investment of US $265.6 million. Dak My 1
has been submitted for approval to the Vietnamese Government under "Power
Plan 5 (2005-2010)." The overall power plan calls for Dak My 1 to be the
first "ladder" belonging to the power system of the Dak My river, located
in Quang Nam province, approximately 80 km from Danang city, in central
Vietnam.
Following the Dak My 1 project will be Dak My 2 and Dak My 3, located below
the Dak My 1 plant. If approved by the Government, the timeline for the
project, including documents, procedures, technical design and other
auxiliary works, will be one year. Work would then be anticipated to
commence at the beginning of 2008, with the plant providing power to the
grid by 2011.
Cavico has received indications of interest from US financial institutions
and investors for the Dak My 1 project. Further details on the project,
approvals and funding will be released as they become available.
For more information about Cavico, please refer to the company's website
at: http://www.cavicocorp.com.
About Cavico Corporation
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 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 people. For more information, visit
http://www.cavicocorp.com.
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.
Contacts:
Cavico Corporation Investor Relations
Hawk Associates, Inc.
Frank N. Hawkins, Jr.
(305) 451-1888 Email Contact
Media and Communications
Cinapsys, Inc.
Mark Moline
(760) 458-4899 Email Contact
For Cavico Corporation
Timothy Pham
(714) 843-5456 Email Contact
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