As the largest stockholder, KEPCO expects to gain about $1.6 billion in profits during 25 years.
Korea Electric Power Corporation (KEPCO, CEO: Cho Hwan-eik) started construction of 573MW diesel internal combustion power plant in Jordan, the world’s largest independent power plant (IPP). KEPCO held on April 22 (local time) the ground breaking ceremony of the power plant in Al Manakher, Jordan. The ceremony was attended by Jordanian Prime Minister Abdullah Ensour, the Minister of Energy and Mineral Resources and president of NEPCO, the state electric power company of Jordan.
This is the third IPP of the Jordanian government with project cost of about $800 million. Holding stakes of 60%, 35% and 5% by KEPCO, Mitsubishi and WDFS, respectively, these companies will construct the power plant on the build-own-operate (BOO) basis, and they will operate the plant for 25 years after construction.
KEPCO expects to gain approximately $1.6 billion in profits during 25 years from the plant. Ahead of this project, KEPCO completed in February 2012 construction of a 373MW power plant in Al Qatrana, Jordan.
The consortium led by KEPCO successfully won this third IPP project in a bidding in January 2012, beating competitors, such as ACWA, thus enhancing its status as one of major IPP companies in the Middle East.
In this project, Lotte Engineering & Construction will be responsible for constructing the plant, and a large number of small and mid-sized companies in Korea are expected to supply equipments and materials, gaining about $150 million in export revenue. And KEPCO KPS will operate and maintain the plant while Korea Exim Bank will take part in financing, creating an example of collaboration among Korea’s companies in overseas market.
Despite adverse economic situation of Jordan as difficult as to apply for bailouts to the International Monetary Fund (IMF) after it won the third IPP project, KEPCO succeeded in January this year in concluding loan contracts with Korea Exim Bank, NEXI in Japan and leading commercial banks in other countries.
The third independent diesel internal combustion power plant, IPP3, will be constructed in Al Manakher at a distance of 30 kilometers from Amman eastward. The plant is set to start commercial operation in February 2014 and complete entire construction on September 19, 2014.