April 20, 2024

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[THE INVESTOR] Posco Engineering & Construction signed a contract worth 950 billion won ($834 million) to construct coal-fired power plants in Bangladesh, the company said on Aug. 21.
 
The deal is a part of a consortium led by Japanese trading company Sumitomo which won a 5 trillion won order to build two coal-fired power plants on Matarbari Island in Bangladesh, capable of producing 600 megawatts of electricity, and a port construction nearby. During the project, which is set to take around seven years, Posco E&C, the construction arm of steel giant Posco, will deliver civil engineering works and build coal processing facilities, the company said. 

An artist‘s drawing of coal-fired power plants planned on Matarbari Island, Bangladesh. Posco E&C.

The state-owned Coal Power Generation Company Bangladesh has pushed the project to improve the low electricity supply in the region, and is the single-biggest coal-fired power plant project in the southwestern Asian region.

Posco E&C also recently secured a 60 billion won deal to perform improvement works on water facilities in Yangon, the former capital of Myanmar, the company added. 

The funding for the two projects will be delivered by Japan International Cooperation Agency, providing Posco with a stable financial supply, it added.

By Shim Woo-hyun/The Korea Herald (ws@heraldcorp.com)