Daewoo bags $1.6 billion deal from Algeria

Algeria has set aside $1.06 billion towards setting up a 1,200 MW combined cycle power plant in the northeastern town of Ain Amat. The contract has been awarded to a South Korean consortium, and the deal is expected to ease the North African country's acute power shortage, according to consortium member Daewoo International.

(A combined cycle power plant)

The turnkey contract calls for Daewoo International, Hyundai Engineering & Construction Co. and Hyundai Engineering Co. to build the 1,200 MW power plant in an area about 230 kilometers southeast of Algiers.

Daewoo International said it will take 39 months to complete the cogeneration power plant but did not specify when ground will be broken for the power plant, according to the Korea Times. Cogeneration refers to the simultaneous production of heat and power.

The trading company said the deal would contribute to laying the groundwork for the country's economic growth.

Daewoo International had also signed a $1.3 billion deal recently with the Kenyan Electricity Generating Company to build a 600-megawatt, coal-fired power plant.