A consortium led by POSCO Energy Co., a unit of South Korea‘s leading steelmaker POSCO, has been named as the preferred bidder for a 1.5-trillion-won ($1.34 billion) power plant project in Mongolia, the company said Tuesday.
The consortium will build and operate the 450-megawatt coal-powered power plant for 25 years, and then transfer it to the Mongolian government, according to POSCO Energy.
The Mongolian government will use the electricity output produced from the power plant, it said.
GDF Suez of France, Sojitz of Japan, POSCO Energy and Newcom of Mongolia comprise the consortium.
The plant, located near the Mongolian capital of Ulaanbaatar, will start operations in 2017, POSCO Energy said.
Mongolia currently operates five coal-powered plants, which were mostly built in the 1960s and the 1980s, according to POSCO Energy.
POSCO Energy said it holds a 30 percent stake in the consortium. (Yonhap News)