Tapping into Iranian Market Daewoo E&C Signs US$11.5 Billion Worth of MOUs Investment
Daewoo Engineering & Construction Co. ., a major South Korean builder, announced on May 4 that it had meetings with officials at major Iranian contractors and won two tentative deals worth US$11.5 billion (13.29 trillion won) in Tehran on the 3rd to construct a petrochemical plant and road infrastructure.
The company signed a memorandum of understanding (MOU) with Bahman Geno Co., a local energy company, to build a large refinery plant for about US$10 billion (11.56 trillion won) along with Hyundai Engineering & Construction.
To be located in Bandar Jask on the Gulf of Oman coast of Iran about 1,600 kilometers southeast of Tehran and 860 kilometers east of the South Pars refinery plant, the plant, once completed, will have a daily refinery capacity of about 300,000 barrels of oil.
Bahman Geno issued a letter of intent to Hyundai E&C and Daewoo E&C in April for the engineering, procurement and construction (EPC) and financing deal and it will add local companies to carry forward the project according to the Iranian government regulations.
Daewoo E&C also signed a MOU for Tehran Shomal Freeway Lot 3 construction. Under the agreement, the company will be in charge of engineering, procurement and construction for the project to build the lot 3 of the 121-kilometer freeway to connect Tehran and the Caspian Sea, including 47-kilometer tunnel and bridge ranging from Hezardram to Mazzan Abad. The deal has an estimated value of around US$1.5 billion (1.73 trillion won).