S. Korea's Hyundai Heavy wins $1.4 bn Kuwait deal
South Korea's Hyundai Heavy Industries said Sunday that its consortium with French firm Sidem has won a $1.4 billion deal to build a power plant and a desalination facility in Kuwait.
Under the deal with Kuwait's energy authorities, Hyundai would build a gas-fired power plant worth $970 million, while Sidem would construct a water desalination plant in a combined complex about 100 kilometres (62 miles) south of Kuwait City.
Construction would start this month and be completed towards the end of 2016, Hyundai said in a statement.
The power plant would have a production capacity of 1,500 megawatts while the desalination plant would produce up to 486,000 cubic metres of water a day.
In Kuwait, meanwhile, the National Bank of Kuwait said that it heads a consortium that includes Japanese lenders which will arrange a $1.43 billion loan to build the Al-Zour North Power project.
That venture has been awarded to Japan's Sumitomo Corporation, France's GDF SUEZ Energy International and Kuwait's Abdullah Hamad Al-Sagar and Brothers for $2.5 billion.
Besides NBK, the other lenders include Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI), Bank of Tokyo-Mitsubishi UFJ Ltd., Sumitomo Mitsui Banking Corporation and Standard Chartered Bank.
A special company was established for the project in which the winning consortium has a stake of 40 percent and the government holds 10 percent, while 50 percent is to be distributed to citizens as free shares.
Production of power and freshwater will be sold to the ministry of electricity and water for 40 years.
Kuwait's parliament in February formed a special panel to probe allegations of irregularities in awarding the contract and another project to build a causeway.
© 2013 AFP