China's SEPCC Signs $1.5 Billion EPC Contract for Coal-Fired project in India

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Researched by Industrial Info Resources (Sugar Land, Texas)--Shangdong Electric Power Construction Corporation (SEPCC) (Jinan, Shandong), a subsidiary of the State Grid Corporation of China (Beijing), signed a $1.5 billion general contract with Vedanta Resources plc (LSE:VED) (London, England) for the 1,980-megawatt (MW) Jharsuguda coal-fired project in India on March 24, 2010. Lingfang Wang, general manager of SEPCC; M. Siddiqi; and A.K. Samal, vice president of Vedanta Resources, attended the signing ceremony, SEPCC announced on April 1.

Both parties had signed a similar engineering, procurement and construction (EPC) for the project in May 2008. However, because of the impact of the international financial crisis, as well as factors such as an undefined site, construction of the project did not kick off as scheduled. At the end of 2009, Vedanta re-opened the tendering process for the project. Through several rounds of hard negotiation, Vedanta Resources finally re-awarded the project to SEPCC.

"The re-awarding of the contract is based on the consideration of our long-term partnership with SEPCC. The partnership of the parties goes far beyond the contract," said a representative of Vedanta Resources at the signing ceremony. "Vedanta Resources hopes that SEPCC can fully demonstrate its strength through the construction of the project."

"The awarding of the project shows the great trust of Vedanta Resources in SEPCC," said Yongjiang Zhang, general manager of Shandong Electric Power Construction No.2 Company (Jinan), a subsidiary of SEPCC and the main implementing unit of the project. "SEPCC will do its utmost to build the project into a model project through continuous improvement."

As the biggest contractor in China's power sector, SEPCC has won 13 bids with a total contract value of $12.6 billion to date in China.

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