Moroccan Power Plant Project
Daewoo Engineering & Construction Company obtained a maximum two trillion won order to build a coal-fired electrical power plant in Morocco.
On August 12, Daewoo E&C announced that on August 9 it signed a 1.971 trillion won (US$1.767 billion) engineering procurement construction (EPC) contract for the construction of a private development project in Safi. This project is by far the largest ever signed overseas by Daewoo E&C.
Daewoo E&C will build a 1,320MW coal-fired electrical power plant and additional facilities on the coast 15km south of Safi, Morocco. Daewoo E&C signed the EPC contract exclusively with Safi Energy Company, which is a private business. The estimated construction period is 46 months.
Daewoo E&C first expanded its business to Morocco when it built the Daewoo Electronics and Automobile factories there in 1998, but withdrew due to the foreign exchange crisis and the impact from the group’s disbandment. However, it re-entered in 2010 after signing a 1.3 trillion won (US$1.16 billion) contract for the Jorf Lasfar coal-fired electrical power plant. Then it signed up to build the 360 billion won (US$322.9 million) Jorf Lasfar ODI fertilizer plant P1&P3, which is still under construction.
The amount of orders Daewoo E&C received in Morocco, including the recent Safi project, totals to 3.856 trillion won (US$3.461 billion), making up 89% of the total sum of all domestic construction companies’ orders from Morocco, which stand at 4.345 trillion won (US$3.9 billion).
Daewoo E&C signed a total of 11 EPC contracts, worth about 7.91 trillion won (US$7.1 billion), in Africa and the Middle East, starting with its 2003 Northern Benghazi Power Plant construction in Libya. Four of these contracts are mega-size power plant constructions worth over US$1 billion.
An official from Daewoo E&C said, “The Company is planning on signing large power plant construction contracts in Africa, the Middle East, and Southeast Asia,” and added, “Some are expected to be signed within this year.”