South Korea’s SK Engineering & Construction Co. (SK E&C) joined hands with Belgium-based energy company UNIT International S.A. to lead Iran’s largest-ever private power development project worth 3.4 billion euros ($3.6 billion), lighting up business prospects in the Middle Eastern country where international sanctions were lifted.


[SK E&C President Ahn Jae-hyun (second from the left), South Korean Minister of Land, Infrastructure, Transport Kang Ho-in (in the center) and Unit International Founder and Chairman Unal Aysal (second from the right) are posing for a photo after the signing ceremony of share purchase agreement for Iran power plants development project (Photo provided by SK E&C)]

The company said Sunday it inked an agreement with UNIT International to join the Belgian energy developer’s ongoing project to construct and operate five new gas-fired power plants in Iran. Marking it as the Iran’s largest-ever private power plant development project, the power plants will have a combined power generation capacity of 5,000 megawatts.

Under the agreement, the Korean construction company will not only take part in building the power plants but also raising funds and operating the power facilities by acquiring 30 percent stake in UNIT International Energy, a special purpose company set up by UNIT group.

SK E&C will pay about 200 billion won ($177 million) for the 30 percent stake in installments and secure earnings through dividends and construction fees.

The Iranian power project is worth 3.4 billion euros in total including power plants building cost of 2.5 billion euros. The construction is scheduled to last about 30 months with an aim to start commercial operation in the second half of 2020.

By Chung Soon-woo

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Source: Pulse by Maeil Business News Korea (Mar. 19, 2017)