By Lee Hyo-sik
POSCO Energy, Korea's leading private electricity generator affiliated with steelmaker POSCO, said Monday that it was selected as the preferred bidder to operate an $800 million coal power plant in Botswana.
The company formed a consortium with Marubeni, one of Japan's largest trading firms, and took part in a bid commissioned by the South African nation.
When both entities sign a binding contract with Botswana's Ministry of Minerals, Energy and Water Resources, GS Engineering and Construction will begin the plant construction.
When the plant is completed by May 2020, POSCO and Marubeni will jointly operate and maintain the 300 megawatt plant for 30 years. In Botswana, which holds abundant coal reserves, it will be cheaper for POSCO to generate electricity.
The company will raise about $600 million in project financing from the Export-Import Bank of Korea, Japan Bank for International Cooperation and other financial institutions.
"Given that European and Chinese companies have dominated the power plant construction market in Africa, it is meaningful for us to win the $800 million deal in Botswana," a POSCO Energy spokesman said. "We will do our best to build a strong presence in Africa and use it as a stepping stone to become a global energy company."
POSCO Energy, Korea's leading private electricity generator affiliated with steelmaker POSCO, said Monday that it was selected as the preferred bidder to operate an $800 million coal power plant in Botswana.
The company formed a consortium with Marubeni, one of Japan's largest trading firms, and took part in a bid commissioned by the South African nation.
When both entities sign a binding contract with Botswana's Ministry of Minerals, Energy and Water Resources, GS Engineering and Construction will begin the plant construction.
When the plant is completed by May 2020, POSCO and Marubeni will jointly operate and maintain the 300 megawatt plant for 30 years. In Botswana, which holds abundant coal reserves, it will be cheaper for POSCO to generate electricity.
The company will raise about $600 million in project financing from the Export-Import Bank of Korea, Japan Bank for International Cooperation and other financial institutions.
"Given that European and Chinese companies have dominated the power plant construction market in Africa, it is meaningful for us to win the $800 million deal in Botswana," a POSCO Energy spokesman said. "We will do our best to build a strong presence in Africa and use it as a stepping stone to become a global energy company."
