KEPCO wins $60 mil. power grid deal in Dominican Republic

An employee of the Korea Electric Power Corp. (KEPCO) works on a high-voltage line in the Dominican Republic. The state-run utility company won a $60 million contract to construct an electric distribution network spanning 870 kilometers in the Caribbean nation. / Courtesy of KEPCO

By Lee Hyo-sik

The state-run Korea Electric Power Corp. (KEPCO) has won a $60 million contract to build a nationwide power grid in the Dominican Republic, the largest power line construction project the company has ever secured abroad.

KEPCO said Thursday that it signed a preliminary contract with Dominican state power company, CDEEE, to complete the construction of an electric distribution network by 2017, which will extend 870 kilometers throughout the Caribbean nation. The company plans to erect more than 1,400 utility poles to connect the grid.

“We secured the deal in fierce competition with 13 global power companies,” KEPCO CEO Cho Hwan-eik said. “We believe that our successful track record here helped us win the latest contract. As soon as we sign a formal contract with CDEEE, we will start the project.”

In 2011, KEPCO won a $51 million power grid construction scheme and completed it earlier this year.

Cho said the company’s consecutive deals with the Dominican Republic show its world-class knowhow and expertise in the area of power grid construction.

“Following the smart grid contracts with Canada and the United Arab Emirates (UAE) in recent months, the $60 million Dominican deal will provide a boost to our ongoing efforts to expand our presence across the globe,” the CEO said.

KEPCO completed a number of power grid construction projects in 23 countries, valued at $170 million. It is currently undertaking plans worth $40 million in Nigeria and 12 other countries.

The utility firm plans to include its small business partners in the Dominican project, enabling them to expand their reach to Central America.

Since 2001, a total of 57 small enterprises here have taken part in KEPCO’s power grid projects, earning a combined 208 billion won in revenue, according to the company.

On Oct. 29, KEPCO secured a $3 million contract to build a smart grid system in the UAE. In July, the company exported its smart grid knowhow to Canada and signed a cooperation agreement with the U.S. state of Maryland.