CVIC | Cavico Corp Announces No Delay In Funds For Hydropower Projects

Penny Stock News

Jul 29, 2008 10:00:00 AM
Copyright Business Wire 2008

Cavico Corporation (OTC BB: CVIC) ("Cavico" or "the Company"), a leading infrastructure development company in Vietnam, today announced that the Vice Prime Minister of Vietnam, Hai Trung Hoang, has instructed state-owned banks and entities to prioritize and restructure funds to avoid any delay or cancellation of electricity-supply construction projects.

Following Announcement No 161/TB-VPCP, Vietnam Government Office called for an urgent meeting with Vietnam Central State Bank, Ministry of Planning and Investment, Department of Finance, Electricity of Vietnam and many other state-owned banks and entities to discuss the inflation concerns and interest rates that affected the funding of electricity supply projects including hydropower projects. As a result of the meeting, Vietnam Vice Prime Minister Hai Trung Hoang instructed state-owned banks and all related parties to not delay funds for hydropower projects.

Mr. Hoang also requested both state-owned and private banks to execute their signed credit lines and issue cash on loans with negotiated interest rates. The Central State Bank will intervene and make a decision in cases where the banks and project owners cannot come to a conclusion on their own. According to Mr. Hoang, banks and project owners should focus on making payments to contractors for construction work certified as completed as of July 1, 2008.

"We are very pleased about the decision and support extended by the Vietnamese government. We have received an announcement from the Deputy Prime Minister's office encouraging us to proceed negotiations with commercial banks to sign credit agreements on the Son La and Huoi Quang projects," commented Mr. Hai Thanh Tran, Vice President of Cavico. "We believe the issues related to funding will soon be resolved and will not cause delay in our process as Cavico is currently constructing critical government hydropower projects," added Mr. Tran.