[Photo provided by Korea Electric Power Corp.]
South Korea’s state-run utility firm Korea Electric Power Corp. (KEPCO) said it will manage 1,200-megawatt coal-fueled power grids in Vietnam for 25 years once it finishes construction in 2021.
The deal is a follow-up to a $2.3 billion contract it won in 2013 by teaming up with Japanese trading house Marubeni Corp.
The Korean utility company will supervise the construction and operate two supercritical coal power plants with 1,200MW capacity in Nghi Son Economic Zone, about 200 kilometers southeast from the capital Hanoi. Doosan Heavy Industries & Construction has been recruited to design and build the plants.
About 75 percent of the funding would be raised through project financing loans. KEPCO would have a 50 percent stake in the project. It would be running the power station for 25 years and earn revenue by selling the electricity to the Vietnamese state utility firm. The payment is guaranteed by the Hanoi government.
KEPCO has been active in Asia, the Middle East, and Latin America, building or operating power plants with combined generation capacity of 23,000MW in 22 countries.
Shares of KEPCO closed Thursday down 0.65 percent at 38,250 won ($34.29).
By Kang Doo-soon and Kim Hyo-jin
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]