South Korean conglomerate LS Industrial Systems (LSIS) has won a large-scale contract as part of the Bismayah New City Project (BNCP) to build electricity infrastructure in Iraq, according to local press reports.
Worth ?161.2 billion (€129.5 million; €147 million), the agreement marks the company’s largest deal so far outside its home country.
LSIS announced on May 10 that it had won the contract to construct Gas Insulated Switchgear (GIS) substations 10 kilometres south east of Baghdad as part of BNCP, a project led by Korean construction firm Hanwha Engineering & Construction (E&C).
BNCP is the biggest new city development project proposed by the National Investment Committee (NIC) of Iraq, which is investing a total of $10 billion in the project.
Under the deal, the company will build the entire GIS substation by 2019, which will charge the supply of electric power in the Bismayah region, including two 132-kilovolt (kV) substations, six 132kV transmission substations, and 24 33kV distributing substations.
Since its first deal in Iraq in 2011, LSIS has seen its business steadily growing thanks to a string of electrical infrastructure orders including substations and smart grids. By the end of last year, the company had won a total of $500 million worth of projects in the country only.
The deal paves the way for other Korean electric components manufacturers to enter the Iraqi market, which has so far mainly been penetrated by global firms such as Siemens and ABB.