Cavico Corporation
(OTC: CVCP)
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Cavico Corporation
Cavico Corporation (OTC: CVCP) is a Vietnamese engineering and construction company working in the fields of infrastructure development within Vietnam and throughout Asia and the Pacific Rim. The company’s projects include hydropower facilities, dams, bridges, roads, mining and urban buildings. The company is headquartered in Hanoi, Vietnam, with offices throughout Vietnam and a satellite office in Australia.
Cavico Corporation Vietnam currently employs over 3,000 people working in the fields of infrastructure construction and engineering. This includes construction of roads, bridges and underground works. Currently the company is investing into hydropower and cement production plants in Vietnam.
Founded in 2000 with an initial capital investment of VND 60 billion (equivalent to USD $4 million) Cavico has been growing very fast, ranking among the leading companies specializing in infrastructure projects in Vietnam. Revenues have grown from USD $2.8 million in 2000 to revenues last year of USD $45 million. Also, the company is investing in sectors with potential for high growth and stability in Vietnam, such as: Hydropower, Mining, Road Construction, etc. The company currently employs approximately 3000 people with an average age of 30, among them, there are more than 700 engineers.
Together with other state-owned corporations Cavico has been awarded construction contracts for many critical hydropower projects in Vietnam. Currently the company has total assets that have grown to over $64 million USD equivalent, consisting mainly of construction equipment from leading firms such as Caterpillar (America) and Atlas Copco (Sweden).
Vietnam
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.
First US Traded Vietnamese Public Company
Cavico is the first Vietnamese company to trade on a US exchange. The company completed a reverse merger in May of 2006, and began trading soon thereafter. At the time of this release, Cavico is the only Vietnamese company to be trading on a US exchange (and one of the only companies trading outside of Vietnam, period). Investors wishing to participate in the growth of Vietnam’s economy and infrastructure have only a few options, most of which are out of the reach of the average investor or are simply unavailable as publicly traded investments at this time.
Cavico is not limiting itself to Vietnam. The company has setup offices in Australia and is intending to bid projects throughout Asia and the Pacific Rim. The company is a full-service construction and engineering firm, capable of taking a project from inception through construction to completion within a relatively short time frame.
2005 Global Technique Awards Association’s Highest Honor
Vietnam’s Hai Van Pass Tunnel, opened in June 2005, has received the United States’ Global Technique Awards Association’s highest honor. The Global Technique Awards Association deemed the project one of the 24 most outstanding structural accomplishments existing in the world today. The Hai Van tunnel was the sole foreign project honored at the annual US awards. As a Subcontractor for the Joint Operation of CIENCO 1 – LUNGLO – VINAWACO, Cavico Corporation was responsible for the construction of the road and bridges leading from the south of the tunnel to the main road in Da Nang province.
Operating Companies
Cavico Vietnam, as a parent organization, provides valuable services to each of its operating companies. This gives them access to cutting edge technology, management expertise and support services necessary to meet the needs of the customer in today’s construction environment.
Cavico Vietnam’s corporate resources provide support to the operating companies in four important areas:
* Estimating & Project Management
* Financial Investment
* Education & Training
* Safety
The goal of this broad corporate support is to bring added value to the construction process and achieve superior results with efficient, cost effective quality procedures performed in a safe working environment.
Operating Cavico Companies
* Cavico Infrastructure
* Cavico Transportation
* Cavico Power Installation
* Cavico Bridge & Tunnel
* Cavico Mining
* Cavico Energy Investment
* Cavico Energy Contruction
* Cavico Power Plant Contruction
* Cavico Trade
* Cavico Hitech
* Cavico Tour Zone
* Cavico Tower Building
* Cavico Australia
* Vinavico
Projects
Cavico has the engineering and construction expertise to undertake a diverse mix of infrastructure development projects.
Current Project
The Prime Minister of Vietnam has appointed Cavico Corporation to be the lead contractor for tunnel works construction on the Dong Nai 4 Hydropower Project. The project is located in Lam Dong province, 150 kilometers (93 miles) from Dalat City and 240 kilometers (149 miles) north of Ho Chi Minh City.
The project is projected to generate 270 Mega Watts of power with a total investment by EVN (Electricity of Viet Nam) estimated at 5,000 billion VND ($333.33 million USD equivalent). The value of the project to Cavico is approximately 400 billion VND ($26.6 million USD equivalent).
Cavico’s projects include, but are not limited to:
Tunnels
* Dai Ninh
* Buon Kuop
* Ban Ve
* Bac Binh
* Dong Nai 3 and Dong Nai 4
* Nam Chien
* Bao Loc
Hydropower
* Buon TuaSrah
* Ba Ha
* Tuyen quang
* Van Chan
Bridges
* Dong Hai (Haiphong city)
* 2B Hai Van (Danang city)
* Sesan 3, Sesan 3A (Gialai)
* Buon Tua Srah (Daclac)
* Da Vi (Tuyenquang)
* Song Tranh 2
Mining
Nui Beo Coal Mine
Cavico’s role in the project is to load earth & stones supporting coal mining operations. Nui Beo is an open coal mine with a capacity of 1,200,000 tones per year.
Highways
* Enhancement for National route 1A by ADB & WB’s capital
* Ho Chi Minh route, contract D13 for Tan ky (Nghe an)
* Khe co (Ha tinh)
* A Luoi (Hue)
* Phuoc son (Quang nam)
* Dac zon – Dacpoko (Kontum)
Urban Construction (Buildings)
Chieng Ngan Urban
Cavico Vietnam was selected as the main contractor for the Chieng Ngan (Son la) urban investment and development project in December of 2003. A credit contract of 280 billion VND was signed between Sonla budget for development support and Cavico Vietnam in April 2004.
Cavico Tower Building
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