The builder signed agreement to build coal-fired power plant on Luzon Island to help solve power shortages and create jobs in the S.E. Asian country when Pres. Duterte visited Seoul
Dignitaries led by President Rodrigo Duterte of the Philippines, 2nd R, energy Secretary Alfonso Cusi, R, Vice President Joo Yang-kyu of SK Engineering and Construction Co., 2nd L, and Vice President Yoo Byung-son of Seohi Construction, 1st L, pose for a photo session after SK Construction Vice President Joo and Seohi 'Construction Vice President Yoo signing the letter of intent to invest 2.2 trillion won and build the coal-fired thermal power plants on Luzon Island in Quezon State in the Philippines on June 15 during the Philippine President Duterte's visit in Seoul. (Photo: SK E&C)
SK Engineering and Construction Co. signed a letter of intent on the construction of a 2.2 trillion won environmentally-friendly coal power plant in the Philippines with the Philippine government, the company said on June 15.
The construction company said it proposed the 600 mw-class coal-fired thermal power plant with two power generators to be built in Quezon State on Luzon Island and operate them, an IPP project, at the Business Forum held in Seoul where Philippine President Rodrigo Duterte was invited to attend.
An official of the construction company said they will build the thermal power plants on land owned by a local company and operate them after construction is complete.
President Ahn Jae-hyun said Korea will build and operate the environmentally-friendly coal-fired thermal power plants to help solve the power shortages in the Philippines and create jobs.
The final contract is expected to be signed following a due diligence process and a survey on the power plant’s environmental effect is conducted and evaluated, they said.
The thermal plant will have its corporate tax exempted for six years after it goes o- stream, being recognized as a leading project by the Philippine Investment Authority.
Power prices in the Philippines are the second-highest in Asia, after only Japan, undermining the country’s industrialization plans. SK Construction plans to set up a joint-venture firm with Seohee Construction to build and run the thermal power plant in the southeast Asian country. A number of financial institutions have already showed the interest in the power plant project to provide project financing. SK Engineering & Construction has expressed plans to partake in the construction of one of Turkey's biggest projects, Kanal Istanbul.
Lee Seung-soo, vice chairman of South Korea-based construction company SK Engineering & Construction (E&C), said in a statement to Anadolu Agency (AA) that the project was brought up during President Recep Tayyip Erdoğan's visit to South Korea. He recalled that South Korean President Moon Jae-in said they would be happy to support the project during the visit.
The Vice Chairman said they have taken part in Turkey's largest projects such as Eurasia Tunnel and the Çanakkale 1915 Bridge and have plenty of experience in Turkey. "This (Kanal Istanbul) is a major project both in terms of value and importance. We participate in large projects with our partners in Turkey. President Erdoğan invited us with regard to the said project and our leader accepted it. It means that it is up to us now," Seung said.
"We have our experience in Turkey. We only expect details of the project to be announced. After the details are clear, we want to lead the project."
Within the scope of Kanal Istanbul Project announced by President Erdoğan during his term as prime minister in 2011, the channel will be opened with the methods and techniques to be determined after the geological and geotechnical studies carried out in the 45-kilometer-long area following the south of Küçükçekmece Lake - Sazlıdere Dam – Terkos region. Thus, a safe alternative waterway linking the Black Sea to the Marmara Sea and the Mediterranean Sea will be established. The project is estimated to cost TL 65 billion ($15 billion).
During his trip to South Korea, President Erdoğan met the top executives of SK E&C and invited the Korean investors to bid for Turkey's largest infrastructure project.
South Korean contractor SK E&C was one of the contractors in the consortium that built the Eurasia Tunnel, Turkey's first undersea tunnel that connects the European and Asian sides in Istanbul; the Yavuz Sultan Selim Bridge, the third bridge on the Bosporus; Tufanbeyli Thermal Power Plant, a coal plant located in the southern province of Adana and operational since 2016; and the Çanakkale 1915 Bridge, currently being constructed and set to be the longest suspension bridge in the world.