KOWEPO agrees to participate in Russia’s combined heat & power plant construction project while joining a project to set up a gas based combined cycle power plant in India.

KOWEPO (Korea Western Power) agreed to take part in building a combined heat and power plant in Russia at the 11th Meeting of the Korea-Russia Joint Commission on Economic, Sci-entific and Technological Cooperation.

Korea and Russia signed a memorandum of understanding (MOU) at the 10th Anniversary International Investment Forum Sochi-2011. Under the agreement, a combined heat and power plant will be constructed in the North Caucasus Special Economic Region in Russia, with KOWEPO joining this project. “By participating in two out of the three main projects being carried out between Korea and Russia, we are contributing to strengthening the bond between the two countries in the energy and resources fields. This will also contribute to the successful opening of the 2014 Sochi Winter Olympics and 2018 Pyeongchang Winter Olympics,” said President Kim Mun-duk of KOWEPO.

KOWEPO Concludes MOU with State-owned Russian Company NCRC

Russian Prime Minister Vladimir Putin and the Russian Minister of Economic Development Elvira Nabiullina, among others, attended the 10th Anniversary International Investment Forum Sochi-2011 held on September 16, expressing enormous interest in KOWEPO’s penetration into the Russia market.

According to the MOU, the NCRC (Northern Caucasus Resorts Company) will build a combined heat and power plant with a capacity of 180MW in order to supply heat and electricity to a resort complex being developed in Sochi, with KOWEPO participating in the project. It was also stated that the Government of the Russian Federation will guarantee up to 70% of the total investment of US$ 300 million and that both parties will jointly develop coal mines and harbors in the Russian Far East and Siberia.

The NCRC is a state-run enterprise established by the Russian government in December 2010 in order to achieve the goal of developing the US$15 billion project in Northern Caucasus near Sochi. 98% of NCRC is owned by the Joint-Stock Commercial Savings Bank of the Russian Federation, the State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank), and other banks. According to the NCRC, the Russian and Korean governments will work together on the pipeline natural gas (PNG) construction project which links Russia and South Korea by passing through North Korea, the energy infrastructure construction project for the resort located in Northern Caucasus, and coal and other natural resources development projects.

The combined heat and power plant construction project was initiated at the 11th Meeting of the Korea-Russia Joint Commission on Economic, Scientific and Technological Cooperation held on October 26. The two nations signed an investment cooperation agreement at the meeting. As for Hyundai Heavy Industries and Hyosung Power & Industrial Systems which are participating in Russia’s electric power network modernization project, the two countries agreed to allow the firms to maintain business activities. As a result, a feasibility study for the electric power network connection will be carried out. According to the “Russian PNG Roa-dmap”signed by the Korea Gas Corpor-ation and Russian state-owned natural gas company Gazprom in September, the two nations agreed to carry out the installation of pipelines connecting the two countries.

KOWEPO to Join India’s Integrated Gasification Combined Cycle Project

Meanwhile, KOWEPO is joining a project to set up a gas based combined cycle power plant in India. On October 19, KOWEPO signed an MOU with Indian company Pioneer (business developer) and Pioneer Gas Power (special purpose company) to take part in a 388MW integrated gasification combined cycle project in India.

With the total investment of US$ 274 million, the integrated gasification combined cycle plant will be constructed at the industrial complex of the Maharashtra Industrial Development Corporation (MIDC), 120km south of Mumbai, in Vile Bhagad City, Maharashtra State, India. Through equity participation, KOWEPO will be in charge of operations and maintenance activities at the plant. Tata Projects, a subsidiary of India’s largest industrial conglomerate Tata Group, is responsible for engineering, procurement, and construction work, while India’s state-owned gas company GAIL will supply fuel.

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