The group’s wholly-owned subsidiary Cavico Power is to execute the contract, which call for construction of a 3.85km long headrace tunnel of approximately 6.45m-7.7m. A 90m high surge tank will also be build with a diameter of 5m-8.6m.

Cavico Power is to have the work completed by September 2010.

The 210MW plant is being developed by Industrial and Urban Development Corp and will be built near Phuoc Son village, Quang Nam province, almost 180km west of the city of Da Nang. The budget for the project is US$252M.

Almost a year ago Cavico applied to build the Dak My I scheme on the same river for a budget of US$265M.It was the first instance that the firm had moved to try for developer and operator roles in hydropower. The plan has been for work to start this year and the plant to come online in 2011.