South Korean construction firm SK Engineering & Construction Co. announced on June 17 that it has signed a letter of intent (LOI) with the Philippine government to build environmentally friendly coal-fired power plants worth about 2.2 trillion won (US$2 billion).
SK E&C proposed an independent power project (IPP) plan to the Philippine government during a business forum in Seoul on June 5 that was attended by Philippine President Rodrigo Duterte. According to the plan, a consortium led by SK E&C will build and operate two 600-megawatt power plants on the Luzon Island in Quezon province of the Philippines.
The power plants will use ultra-supercritical technology, the latest coal technology that can enhance generation efficiency by 15 percent and dramatically reduce the use of coal.
If SK E&C becomes the first business operator using the ultra-supercritical technology in the Philippines, its project will be recognized as a separate business by the Philippine Board of Investments and be exempted from corporation income tax for up to six years.
SK E&C said the latest project is meaningful in that it is a large IPP that can be directly invested by Korean institutions such as the Korea Development Bank and KDB Infra Fund.