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May 10, 2011

Source: Mitsui & Co., Ltd.

Mitsui & Co., Ltd. announced that a consortium consisting of Mitsui and Daewoo E&C have entered into an engineering, procurement and construction (EPC) contract with Jorf Lasfar Energy Company 5&6 (JLEC 5&6) for the development of a 700-megawatt (MW) coal-fired power plant in Morocco.

Mitsui and Daewoo will construct two new units, each with a gross capacity of 350MW, at the existing Jorf Lasfar power plant site (currently four units each generating 350MW) near El Jadida, as well as installing the first flue-gas desulfurization (*1) system in a Moroccan power plant. The site office was completed in April 2011 and accordingly the site works has been started. Commercial operation of Unit 5 is expected to commence in December 2013 and that of Unit 6 is expected to commence in April 2014. The contract is valued at approximately US$1.1 billion , making it one of the largest power plant EPC projects ever awarded to a Japanese company in North Africa. 

Mitsui and Daewoo were able to successfully leverage the competitive advantages of a Japanese-Korean consortium in order to secure the award of the EPC contract, combining the supply of reliable, high quality core equipment from Japan, including steam turbines from Mitsubishi Heavy Industries Ltd. and boilers from IHI Corporation, with the efficiency of Korean engineering and construction works.

The award to Mitsui and Daewoo of the EPC contract to expand the Jorf Lasfar Power Plant 5&6 is the first important step in Mitsui’s broader strategy to proactively develop power and other infrastructure projects in the economically-emergent countries of North Africa.

(*1) flue-gas desulfurization is a process for removing sulfur dioxide (SO2) from the exhaust flue gases of fossil fuel power plants.