Doosan Heavy Industries & Construction has signed a memorandum of understanding with Korea Western Power to cooperate on developing the 728-MW Phou Ngoy hydropower plant Laos.
The Thailand-based developer Charoen Energy and Water Asia (CEWA) initially signed the deal with the Laos government to develop Phou Ngoy project and has been jointly executing the project with Korea Western Power. A tri-party investment agreement was entered into with Korea Overseas Infrastructure & Urban Development Corporation (KIND) in August 2020.
Under the MoU, Korea Western Power and Doosan will jointly pursue development of the hydropower plant, as well as cooperate on the local manufacturing of key equipment for hydropower plants and the development of sales routes to promote exporting of the products.
Phou Ngoy will be built in Pakse, in the Southern Laos province of Champasak. The project is valued to be about $2.4 billion and will be executed using the BOT (build-operate-transfer) approach. This is to be an EPC project, with Doosan handling the supply of main equipment and the construction work. Starting in January 2021, Korea Western Power and Doosan will jointly conduct a site survey, after which basic engineering will be carried out for the project. Plant construction will start in 2022 and be completed by 2029.
“With our recent hydropower, wind power and hydrogen projects, Doosan Heavy’s drive to expand our green energy business is producing visible results,” said Inwon Park, chief executive officer of Doosan Heavy’s Plant EPC Business Group. “To capitalize on the hydropower plant business, which is seen as a high potential market both in Korea and overseas, we plan to boost our efforts to promote the local manufacturing and engineering of key equipment and will lead the efforts to promote the green energy industry in Korea.”
Doosan is actively expanding its hydropower business, with the drive to accelerate the energy transition process in the Korean and overseas markets. In October 2020, Doosan signed a deal with Korea Southeast Power to build the 216-MW Upper Trishuli-1 hydropower plant in Nepal and agreed to also participate in the development of a hydropower plant in Pakistan. The company signed an MoU earlier this month with Korea Midland Power to jointly develop overseas hydropower markets.
This article first appeared on our sister portal HYDRO REVIEW.