Hyundai Construction Consortium Wins 850 Billion KRW Algerian Combined Cycle Power Plant Contract

[Asia Economy Reporter Yuri Kim] The Hyundai Engineering & Construction consortium (Hyundai E&C, Hyundai Engineering, POSCO International) announced on the 15th that it has secured a contract for a combined cycle power plant project worth 850 billion KRW in Algeria, North Africa. Hyundai E&C achieved a total order amount of 1.8 billion USD (approximately 2.1 trillion KRW) this month alone.

The Hyundai E&C consortium announced that on the 14th (local time), it signed a contract for the 'Oumache 3 Combined Cycle Power Plant Project' worth 730 million USD (approximately 850 billion KRW), ordered by HYENCO, a subsidiary under the Algerian state-owned electricity company.

The ordering company HYENCO is a joint venture established in November 2015 by the Hyundai E&C consortium and the Algerian Electricity Company. The Hyundai E&C consortium holds a 49% stake, while the Algerian Electricity Company holds 51%.

Recently, the Algerian government announced plans to add 20,000 MW of power generation capacity over the next 10 years to meet the rapidly increasing electricity demand. In line with this power supply policy, the joint venture HYENCO plans to carry out a total of five similar combined cycle power plant projects, including this project, together with the Hyundai E&C consortium.

HYENCO aims to become a competitive EPC company by acquiring excellent technology and construction capabilities through the Hyundai E&C consortium. The Hyundai E&C consortium stated, "By securing a stable volume of orders, we have pioneered a new order paradigm called 'advanced technology export-type negotiated contracts.'"

This project involves constructing a combined cycle power plant with a capacity of approximately 1,300 MW in the Oumache area of Biskra Province, located 340 km southeast of the capital Algiers. The annual average power generation is about 9.68 million MWh. The construction period is 60 months from the start of construction.

So far, Hyundai E&C, Hyundai Engineering, and POSCO International have carried out various projects in Algeria. They secured projects such as the Ain Arnat combined cycle power plant in 2012 and 1,600 MW-class combined cycle power plants in Biskra and Jijel, respectively.

A Hyundai E&C official said, "We will grow HYENCO into Africa's largest EPC company and pioneer a 'new order paradigm' based on global partnerships."

This content was produced with the assistance of AI translation services.