Iraq’s semi-autonomous Kurdistan regional government has signed contracts with South Korea’s Posco Engineering & Construction Company Limited (POSCO) and Korea National Oil Corporation (KNOC) totalling $700m.
The projects include the construction of a 300 MW power plant in the Erbil region, scheduled to be built within three years, and a 400 kV substation in Sulaimaniya province.
POSCO will be responsible for construction, while KNOC will finance the projects in accordance with the terms of its 2008 oil exploration agreement with Kurdistan – it must allocate some of its profits from oil finds for infrastructure projects.
The South Korean deal is the latest in a line in Kurdistan’s power sector.
Over the last month alone:
- ABB (NYSE:ABB) was awarded a $120m contract to design and build a 640 MW combined-cycle power plant at the Khormala oil field;
- GE (NYSE:GE) agreed a deal with Mass Global to provide two GE C-7 steam turbines for the conversion of the Erbil power station from simple to combined-cycle operation, boosting output by 500 MW; and
- Alstom Grid (ALO.PA) won a $42m contract to engineer and supply four 132/33/11 kV air-insulated switchgear substations and one 132/33/11 kV gas-insulated switchgear substation to boost the reliability of the Kurdish grid.