SEOUL, South Korea, July 18, 2014 /PRNewswire/ — POSCO Engineering & Construction (CEO: Tae-Hyun Hwang) announced on July 9 that it held a groundbreaking ceremony to build a hydroelectric power plant in the Phonhong District, 90 kilometers north of Vientiane, the capital of Laos.
POSCO E&C Begins Construction of Nam Lik1 Hydroelectric Power Plant in Laos
This project is a product of joint investment among Krungthai Bank PCL (KTB), Export-Import Bank of Thailand, and NL1PC. It will be operated in the form of a BOT (build, operate, transfer) project for 30 years. With the capacity of 65MW, the power plant is expected to contribute to the economic development of Laos.
NL1PC is a joint venture established by Thailand’s state-operated investor PTT, hydroelectric power generation company HEC (Hydro Engineering Company), Laos’s state-operated EDL (Electricite du Laos), and the constructor POSCO Engineering & Construction. With a 10% stake in NL1PC, POSCO E&C will act as the prime contractor after commencement for the next 39 months.
Over 170 people attended the event that day, including Laos Vice Minister of Energy and Mines Sinnava Souphanouvong, Vientiane Governor Khammeug Thongthady, central government officials, councilors from the Korean embassy in Laos, NL1PC(Nam Lik1 Power Company) CEO Kowit Chuengsatiansup, HEC CEO Chinda Hongkajorn, and POSCO E&C Southeast Asia Business Unit Director Shi-Sung Park.
This is POSCO E&C’s first instance to participate as both investor and constructor, and the company will be in charge of design, procurement and construction in the form of EPC turnkey. POSCO E&C has received good reputation from the Laotian government, clients and local partners for its transparent operating practices based on outstanding quality and ethical management in South Korea as well as overseas markets, especially Southeast Asia.
Laos is one of the countries with the biggest potential for economic growth in Southeast Asia, with particularly active business in hydroelectric power generation. POSCO E&C will use this project to further develop its technological skills in hydroelectric power in Southeast Asia. It expects that this project will be helpful for the company to win contracts for hydroelectric power generation projects in Myanmar, Thailand, Cambodia and Vietnam as well.
“We’re pleased to be able to participate in the important hydroelectric power plant project of the Laotian government as the constructor,” said POSCO E&C Southeast Asia Business Unit Director Shi-Sung Park. “We expect the Nam Lik1 Hydroelectric Power Plant to contribute greatly to the economic development of Laos.”
Since establishing a local corporation and main office in Vietnam in 1995, POSCO E&C has expanded its scope of business to neighboring Southeast Asian countries such as Myanmar, Laos, Cambodia and Thailand. The company is securing its place as a renowned constructor in Indochina based on its cost competitiveness and excellent quality acquired from many years of experience.