BEIRUT

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South Korean firms suspend work on Libyan power plant

A Hyundai logo is seen on the car maker's booth during the first media day of the Geneva Auto Show at the Palexpo in Geneva.

TRIPOLI: South Korea groups Hyundai and Doosan have suspended construction of a 1,400-megawatt Libyan power plant in the town of Sirte because of security concerns, the plant’s managing director and a town council spokesman said.

“It is only temporary. They had orders from the South Korean government to pull out because of the security situation in Libya,” said Abu Bakr Makhyoune, the plant’s managing director.

“Around 570 foreigners working for Hyundai and 382 others working for Doosan started to leave on Saturday,” he added.

Libya is facing the worst violence since the fall of former ruler Moammar Gadhafi three years ago. Rival militias have been fighting for control of its two biggest cities for more than a month, turning the capital Tripoli and the eastern city of Benghazi into battlegrounds in which more than 200 people have been killed.

The U.N. and most Western countries have pulled out their diplomats stationed in Libya to protect them.

There have been no recent clashes in Sirte, which is 460 km from Tripoli and 570 km from Benghazi. State news agency Lana and local television stations have reported growing insecurity in Sirte, however, because of the lack of central government support.

In 2007, Hyundai Engineering & Construction Co. Ltd. and Doosan Engineering won the 1.8 billion dinar ($1.5 billion) contract to build and operate the power plant, along with U.S.-based Bechtel, France’s Geocean and Turkey’s Gama Enerji.

Makhyoune said Bechtel was still operating in Sirte but without American staff, while 350 workers belonging to Gama Enerji had returned to Sirte after a brief break. Geocean has already left, as its contract has ended.

The gulf power plant was scheduled to start operating in 2014 with four oil-fired units of 350 MW each. But construction has been held up by the war that toppled Gaddafi in 2011 and then by fighting between a number of armed groups in the three years since then.

Only one 175 MW unit has started production so far.

Around 52 Libyan engineers have taken over operation of the plant from the departing South Korean staff, Makhyoune said.

 
A version of this article appeared in the print edition of The Daily Star on August 11, 2014, on page 5.

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Summary

South Korea groups Hyundai and Doosan have suspended construction of a 1,400-megawatt Libyan power plant in the town of Sirte because of security concerns, the plant's managing director and a town council spokesman said.

The gulf power plant was scheduled to start operating in 2014 with four oil-fired units of 350 MW each.

Only one 175 MW unit has started production so far.

Around 52 Libyan engineers have taken over operation of the plant from the departing South Korean staff, Makhyoune said.


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