Doosan Heavy Industries & Construction Co. (034020), a South Korea power equipment maker, said today that it signed a 1.1 trillion won ($1.2 billion) contract to build a power and desalination plant in Saudi Arabia.
The signing with Saline Water Conversion Corp. to build the facility in the Red Sea port of Yanbu confirmed details of a letter of agreement from last month.
The Saline Water Conversion Corp. awarded a $3 billion contract to a group of companies led by Samsung Engineering Co. (028050), Korea’s largest industrial plant builder, to build a power plant in Yanbu, 350 kilometers (220 miles) north of the country’s second-largest city of Jeddah as part of a five-year, $400 billion stimulus package announced in late 2008.
Saudi Arabia, the largest oil producer with the Arab world’s biggest economy, is building power stations to cope with growing demand and desalination plants to supply drinking water to lessen the country’s reliance on oil exports.
State-owned National Water Co. plans to spend $66 billion on plants and upgrades over the next 10 years.
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