SK E&C clinches 4.1 trillion won project in Iran

SK Engineering & Construction President Ahn Jae-hyun, second from left, poses with Land, Infrastructure and Transport Minister Kang Ho-in, center, and Iranian counterparts in Istanbul, Turkey, Friday, during a signing ceremony of a share purchase agreement for five power plants in Iran. / Courtesy of SK Engineering & Construction

By Jhoo Dong-chan

SK Engineering & Construction (E&C) has bagged a 4.1 trillion won ($3.6 billion) contract to build and operate new power plants in Iran.

According to an SK E&C official, Sunday, the construction firm purchased a 30 percent stake in UNIT International, Turkey's energy giant. Under the deal, SK E&C is expected to participate in the Turkish firm's ongoing project to build and operate five new gas-fired power plants in Iran.

SK E&C will build and operate five new power plants in five locations throughout the country, Iran’s largest private energy project ever to produce a combined generation capacity of 5,000 megawatts.

“The project is monumental,” Land, Infrastructure and Transport Minister Kang Ho-in said.

“SK E&C’s participation in the project will pave the way for other Korean firms to contribute to Iran’s other infrastructure projects in the future.”

Next January, SK E&C will build 1,200- and 800-megawatt power plants in Saveh and Zahedan, respectively. The remaining three plants are expected to be built depending on the construction progress of the Saveh and Zahedan sites.

The construction period is 30 months, and SK E&C aims to test run them by the end of 2020.

“This is the largest private power project ever in Iran,” SK E&C President Ahn Jae-hyun said.

“With its expertise in large-scale infrastructure projects, SK E&C will do its best to delivery high-quality gas-powered plants in Iran.”

After the completion, the Korean builder is also expected to participate in the plants’ operation jointly with UNIT International.

Last month, SK E&C clinched a 3.7 trillion won deal to build a power plant for Goseong Green Power in Goseong, South Gyeongsang Province. Under the deal, SK E&C will jointly build two 1.040-megawatt power generators with Seohee Construction. SK E&C has 90 percent of the project while Seohee Construction has the rest.