Doosan Enerbility lands 1.6-trillion-won deal from KHNP for nuclear power project in Egypt

Doosan Enerbility landed a 1.6-trillion-won ($1.2-billion) construction deal from the Korea Hydro & Nuclear Power (KHNP) for the Russian-backed El-Dabaa nuclear power project in Egypt, the engineering company said Thursday.

Lim Jung-mook, left, Korea Hydro & Nuclear Power's country director in Egypt, and Yu Dae-yong, Doosan Enerbility's country director, pose for a photo during a signing ceremony held in Cairo, Egypt, Wednesday. [DOOSAN ENERBILITY]

Doosan Enerbility landed a 1.6-trillion-won ($1.2-billion) construction deal from the Korea Hydro & Nuclear Power (KHNP) for the Russian-backed El-Dabaa nuclear power project in Egypt, the engineering company said Thursday.

With the signing of the deal with the state-run KHNP, Doosan Enerbility will build a total of 82 buildings and facilities for the nuclear “turbine islands” — which houses a turbine and electricity generator — in the El-Dabaa nuclear power plant by 2029. The construction of the first turbine building will begin in August 2023.

This is the first time for Doosan Enerbility to win a construction deal for an overseas nuclear plant project, as the company has mainly been an equipment supplier. Doosan Enerbility supplied the main components for the Barakah nuclear power plant project in the United Arab Emirates.

In August, KHNP was selected by Atomstroyexport (ASE), a subsidiary of Moscow's state-owned Rosatom, as the subcontractor and supplier for the turbine islands in the nuclear reactor plant.

ASE won the order from the Egyptian Nuclear Power Plants Authority to construct the country's first nuclear power plant in El-Dabaa, 300 kilometers (186 miles) northwest of Cairo, in 2017. As part of the $30-billion nuclear power plant project, ASE will build four reactors rated at 1.2 gigawatts, while KHNP will oversee the construction of the main and auxiliary buildings of turbine islands.

Completion of the first unit is set for 2028.

“This contract, which marks Doosan Enerbility’s first overseas nuclear power plant construction deal, holds significance as we will now have a track record in not only domestic but also overseas construction projects,” said Park In-won, head of Doosan Enerbility’s plant engineering, procurement and construction business.

“We will do our best for the project’s success, to help the government and KHNP in winning more overseas nuclear power plant projects in the future.”

The signing ceremony between KHNP and Doosan Enerbility was held in Cairo, Egypt, on Wednesday.

The Yoon Suk-yeol government hopes to win 10 overseas nuclear energy projects by 2030.

On Oct. 31, KHNP signed a letter of intent with Poland’s Zespol Elektrowni Patnow-Adamov-Konin and state-owned Polska Grupa Energetyczna for the 1.4-gigawatt Patnow project, which is estimated to be worth over 15 trillion won.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]