A consortium headed by Korea Electric Power Corporation (Kepco) has signed a $1.43bn deal to build a combined-cycle gas turbine power plant in the United Arab Emirates and sell its electricity for 25 years.
Under the deal with the Abu Dhabi Water & Electricity Authority (Adwea), the power station will be built in Shuweihat, a city 260km west of Abu Dhabi, Kepco said in a statement.
Work on the plant, which will have an annual production capacity of 1,600 megawatts, is scheduled to begin next month for completion in March 2014, Kepco, South Korea's state power company, said. The construction of the power plant will be farmed out to South Korea's Daewoo Engineering & Construction and Germany's Siemens.
The consortium, which includes Japanese trading company Sumitomo, has also signed a deal to sell electricity to be produced at the plant to Abu Dhabi Water and Electricity Co., a wholly owned unit of Adwea, for 25 years, the South Korea power firm said. The consortium was picked as the preferred bidder for the plant in October 2010.
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