Bloomberg News

Kepco Wins Order for $800 Million Diesel-Power Plant in Jordan

January 31, 2012

Jan. 31 (Bloomberg) -- Korea Electric Power Corp. and two partners won an $800 million order from Jordan’s National Electric Power Co. to build and operate a diesel-powered plant in the Middle East nation.

The 600-megawatt plant, which will the biggest diesel station in the country, will be located in Almanakher, 30 kilometers (18 miles) east of Amman, Seoul-based Korea Electric said in an e-mailed statement today. Commercial operations are scheduled to begin in March 2014

The utility known as Kepco will own 60 percent of the venture handling the project and Mitsubishi Corp. of Japan and Waertsilae Oyj of Finland will take the remainder.

The station will generate revenue of $10.2 billion during the 25-year period the Jordanian company has committed to buying power from the plant, Kepco said in the statement. Kim Joong Kyum, chief executive officer of Kepco, is focusing on winning more offshore projects this year to improve deteriorating margins from power sales at home.

Kepco, which reported two straight quarters of losses as government rules prevented the utility from passing on higher fuel costs to customers, rose 2 percent to 27,800 won in Seoul at 12:17 p.m., the highest since July last year.

Lotte Engineering and Construction Co. will be contracted to work on the construction of the plant and affiliate Kepco KPS will handle operations and maintenance, Kepco said.

The company plans to fund 75 percent of the station’s cost by obtaining project finance from Export-Import Bank of Korea and other banks, Kepco said. The remainder will be financed by equity, it said.

--Editor: Aaron Sheldrick

To contact the reporter on this story: Sangim Han in Seoul at sihan@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net


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