Sumitomo signs Turkmenistan EPC contract

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Sumitomo signs Turkmenistan EPC contract

Sumitomo Corporation has signed an EPC contract, including civil and installation works for construction of Zerger (Lebap) Gas-Fired Power Plant with Turkmen State Power Corporation “Turkmenenergo”.

The Power Plant is a new simple cycle gas-fired power plant to be located approximately 600 kilometers northeast of Ashgabat, the capital of Turkmenistan, a rapidly developing country in Central Asia.

Sumitomo Corporation takes a role of a prime contractor, being responsible for all aspects, including procurement of the main equipment—the gas turbine and power generator—from Mitsubishi Hitachi Power Systems, Ltd. This will be the first contract for construction of a large-scale power plant for which Japanese company receives an order in Turkmenistan. The EPC contract amount is approximately US$300 million. The construction is scheduled to commence by the end of fiscal 2015(ending March 31st, 2016) and is planned to complete in 2018. Funds for this project are to be raised from a syndicate of Japanese banks and insurance is to be provided by Nippon Export and Investment Insurance (NEXI).

With the fourth largest natural gas reserves in the world, Turkmenistan in recent years has been promoting downstream energy projects to facilitate the diverse use of its abundant gas resources as well as aggressively building relationships with neighboring countries through the development of infrastructures, including railways, pipelines and electricity. In September 2015, the Turkmen government concluded a power purchase agreement (PPA) with the Afghan government to export low-cost gas-powered electricity to the country for 10 years from 2018. The Power Plant will be the main source of the electric power to be exported to Afghanistan under the PPA with the aim of supporting the reconstruction of Afghanistan. Moreover, this construction project will, as a symbol of the “Partnership for Quality Infrastructure” promoted by the Japanese government, play a role in basic infrastructure development in the two countries using funds, insurance and technology of Japan.

As part of its initiatives in the electricity markets in emerging countries, Sumitomo Corporation is focusing on Central Asia and will take advantage of this project to further develop the region’s electricity market. The total capacity of power plants built in overseas projects where Sumitomo Corporation has been involved has already exceeded 50 GW. Based on the long track record and a great deal of experience, Sumitomo Corporation will further expand its power infrastructure businesses on a global scale and contribute to economic development around the world through infrastructure improvement.

Sours: www.sumitocorp.jp

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.