The US$4.9M contract involves construction of diversion tunnels and a cofferdam for the 180MW plant.

The development budget is approximately VND4,255B (US$248M) and the client is Hua Na Hydropower Joint Stock Co, which is a joint venture led by Viet Nam Machinery Installation Corp (Lilama) and PetroVietnam, both of which are state-owned. The client was established in mid-2007.

The development company awarded an engineering, procurement and construction (EPC) contract worth VND2,600B (US$152M) early last year to Lilama.

Hua Na is located in Que Phong district, Nghe An province. The plant will have two generating units (vertical Francis), and has been scheduled for completion in 2011.

Major elements of the project include a 3826m long, 7.3m wide headrace, and RCC dam. The developer will also work in co-operation with Cua Dat Water Reservoir on flood management regulation of the Chu river.

Cavico said in a statement that it expected the construction period to be five years but it was not clear the commencement date to which it was referring. The Government did, however, give clearance for the project in its plans of January 2006.

Other members of the development company include the Military Bank, Sai Gon Joint Stock Commercial Bank and Saigon Securities Co.