Samsung C&T Corp and Samsung Engineering Co Ltd have decided to terminate a coal-fired power plant project in Kazakhstan worth $2.5bn due to a loss of ‘economic rationale.’
Reuters reports that the companies signed up for construction of the 1320 MW Balkhash Thermal Power Plant, in Ulken, Kazakhstan in December 2014.
However in the regulatory filings, Samsung C&T and Samsung Engineering said in they have terminated the contract as of Wednesday.
A Samsung C&T spokeswoman told Reuters the company decided to drop the contract as factors such as low oil prices and a delay in regulatory approval undermined the business rationale.
Samsung C&T said in another filing that it exercised a put option for its stake in the power plant’s joint stock company, that placed the construction order to the Samsung companies, to state-owned Samruk Energy for $192.5m.
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