Daelim and Abeinsa sign water & power MOU

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Daelim and Abeinsa sign water & power MOU

Daelim signed an MOU for cooperation with Spain's Abeinsa (Abengoa Group) in the hydroelectric power generation, dam and water supply, and sewage fields on December 3, 2014.

The Abeinsa CEO, Daelim President Kim Dong-su, and Daelim Energy CEO Kim Sang-woo participated in the MOU signing ceremony held at Daelim's head office in Susong-dong, Seoul.

As a subsidiary of Spain's Abengoa Group, Abeinsa is an engineering, procurement, construction (EPC) company and a developer covering even operation and maintenance (O&M). Abeinsa concentrates on power and desalination industries and ranks no. 1 in solar power generation and power transmission. At least 57% of Abeinsa's total sales come from North America and South & Central America.

Based on the MOU, both companies are implementing a water supply project in Lima, Peru as their first project. The project is a public-private partnership (PPP) project involving supplying water sources (dam and watercourse tunnel) and water supply facilities (treating facilities and pipeline) to Peru's capital, Lima.

The investment amount is US$400 million, and the construction cost is US$300 million.

They plan to take part in the bid in the first half of next year by preparing a proposal based on Daelim's dam and watercourse tunnel construction experience and Abeinsa's experience and know-how in water supply facilities.

This month we have reported that Abengoa closed a long term non-recourse finance deal with the Infrastructure National Fund, Fonadin, and National Works and Public Services Bank, Banobras, for the construction, operation and maintenance of the El Zapotillo Aqueduct in Mexico.

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