GS E&C clinches huge power plant contract in Saudi Arabia

GS Engineering and Construction has signed a contract with Saudi Arabia’s national electricity corporation to build a combined cycle thermal power plant complex, the Korean firm announced Thursday.

The $1.3 billion deal, which was finalized Wednesday, is for a project in the western area of the capital Riyadh, it said.

GS E&C has formed a 50/50 joint venture with Saudi construction firm Bemco, with GS E&C’s share of the deal worth $727 billion.

Despite the GS-Bemco consortium demanding a higher price for the construction, its leading technology and prowess won it the contract, GS E&C said.

“This contract shows that [our] construction technology and management skills have been recognized in the Middle East after we successfully built a number of power plants there recently,” said Huh Jung-jae, general manager of GS E&C’s power and environment business division.

“We expect to win more construction deals in Saudi Arabia in the near future because it is getting ready to build more power plants to combat its electricity shortage.”

The power plant complex with a capacity of 2,000 megawatts is set to be completed in May to satisfy Riyadh’s energy needs.