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Cavico announces tunnel breakthrough at Dong Nai 4 hydropower project

Vietnam-based Cavico Corp. announced that its subsidiary, Cavico Hydropower, has broken through the main tunnel at the Dong Nai 4 hydropower project.

The tunnel, which Cavico excavated and constructed, is 2.9 miles long and 30.2 feet in diameter, reports indicate.

In 2007, Cavico was appointed by the Vietnamese prime minister to be the lead contractor for tunnel works construction on the Dong Nai 4 hydropower project. The plant, Cavico Hydropower's first awarded tunnel project, contains the widest tunnel in Vietnam and is located in the Bao Lam district of Lam Dong Province. The twin-unit plant will have a 340 MW annual capacity once it becomes operational.

Electricity of Vietnam (EVN), a state-owned electricity company, has invested approximately $301 million in the plant. Cavico's contract was valued at $26.6 million at the time of signing.

Recently, Cavico Corp. announced that its subsidiary, Cavico Bridge and Tunnel, has signed a construction contract with Electricity of Vietnam for the Song Bung 2 hydropower project.

The contract is valued at $6 million and includes cost escalation clauses that may increase the revenues associated with the project. Under the terms of the contract, Cavico will be responsible for the construction of three tunnels, a surge tank and a powerhouse. Cavico expects to complete construction by 2014.

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