The 51 MW wind power plant in Jordan being built by Korea Southern Power Co. (KOSPO) is unlikely to be completed as scheduled, and as a result, the Korean power company may have to pay compensation for the delay.
KOSPO has suffered a delay in launching the project. It had difficulty securing a plant site because of conflicts with landowners. It also experienced a delay in recruiting workers and selecting a local partner.
KOSPO is reluctant to make public how much work it has finished. However, it is believed to be way behind schedule and unable to complete the project by March this year.
What is at stake is whether the Korean company is liable for the damage caused by the construction delay. Under the engineering, procurement, and construction (EPC) contract signed with the Jordanian government, KOSPO must complete the wind farms within 18 months from the date the construction began. The power plants are supposed to be completed in March 2020. If the Korean company fails to meet the deadline, it should pay tens of thousands of dollars in compensation.
However, the company has taken no measures to cope with the delay in construction. The company’s audit team has recently identified the problem and called for an active response.
The project was launched in 2011 at the request of the Jordanian government. It aims to build and operate 51 MW wind power generators at Talfilah, located 140 km south of Amman, the capital of Jordan. KOSPO obtained the Jordanian government’s approval on its proposal in 2015 and initiated the project in October 2018.