KEPCO Keeps Winning Projects

Power company broadens its bases in China, Azerbaijan to build power plants

Korea Electric Power Corp. won the order to repair boilers and normalize the operation of Egbin power plant in Nigeria, one of the largest power plants in West Africa for $27 million on May 1.
The Egbin power plant is located some 60 km from Lagos, capable of generating 1,320 Mw (220Mwx6), the largest in the region, but lately has become inoperable due to damage to its boilers from explosion and its 2 generators have been suspended. The incident has caused a severe power shortage in Nigeria and it has been a critical issue during the presidential election on April 21 and needs to be restored immediately, KEPCO said.
KEPCO won the project in a hard competition with its rivals including Marubeni of Japan and NTPC of India thanks to the Nigerian government's recognition of its technical capability. The power company will share the project with ERLE. a local company in undertaking the repair work on the damaged boilers and restoring the power plant's operation in full, KEPCO officials said.
The power company plans to work jointly with related companies in the country to maximize its ability to win projects abroad, the officials said.
KEPCO is considered to have put Korean companies in a good position to participate in various SOC projects in Nigeria by winning the project with the African country in the middle of expanding its power and power distribution projects under its privatization plan.
KEPCO has been striving to win additional orders in the area of power plants and natural resources related projects in the natural resources rich Nigeria. The company is in talks with the Nigerian government to win repair and operation orders for three other power plants in Nigeria including Ota power plant.
The power company is also engaged in winning orders for building a power plant in Abuja and Kaduna regions capable of producing 2,260 Mw of power and laying 1,200 km long gas pipeline to supply fuel to the power plant.
In the meantime, KEPCO signed an MOU with China Tatang Corp. April 27 to build two coal power plants capable of producing 100Mw of power each and operate them with Gov. Lee Chongwi of Henan Province, attending the event. KEPCO has already signed the agreement to undertake the first stage project in 2004 to build two 600,000 kw power generators with the Henan Province. The project is estimated to cost $620 million for the first stage and $1.3 billion for the second stage, totaling $1.650 billion. KEPCO formed a consortium for the first stage project and it will invest $210 million. KEPCO will also undertake the second stage project when the first stage project is completed in 2010 also as a major partner in a consortium.
The project has a number of advantages from the view points of the site for the power plants, technology, and economic value and further it has a big support from the central government. KEPCO's high technology for building such power plants would make the project highly competitive so much so that it will withstand the competition in the power market when China opens its power plant construction market to foreign participation.
The project's competitive edge is to be further escalated due to the support from the Henan Province and the participation of the China Tatang Corp. as a major partner in the project, ensuring the soundness of the undertaking. Furthermore, it will allow the participation of Korean power plant parts makers such as boilers, control equipment, and turbines.
KEPCO is already operates a wind power plant capable of generating 190 Mw of power in Inner Mongolia and Gangsu Province and the power company is in a good position to win more similar orders to build and operate coal-fired power plants in China by signing the MOU this time, KEPCO officials said.
KEPCO has signed an MOU with Azerbaijan on cooperation in the construction of power plants in the central Asian country April 24 in Seoul during the Korea-Azerbaijan Business Forum held at Shilla Hotel in Seoul. Chang Myung-cheol, manager of the Headquarters of Overseas Business signed the instrument for KEPCO while Heydar Babayev, minister of Economic Development signed for the central Asian country, which is in the middle of building power plants with private investment under its independence power producer program. Azerbaijan plans to build a gas combined cycle power plant capable of generating from 700,000 to 1,000 Mw of electricity near Baku in the center of the country's oil-rich region.
KEPCO has been trying to advance into Azerbaijan to undertake the projects and in March, the Azerbaijan government invited KEPCO to submit its business plan, which was followed by signing of the MOU. KEPCO hopes the MOU will lead to other projects to advance into the power markets of the resources rich region. nw

Chairman & CEO Lee Won-gul of Korea Electric Power Corp.