SK Engineering & Construction has acquired a stake in a $1.44 billion project to build a 545-megawatt hydropower plant in Pakistan, the company said Monday.

On Friday, SK E&C signed a contract with Associated Technologies Private Limited to gain an 89 percent stake in the Kaigah Hydropower Project. SK E&C will construct a 545-megawatt hydropower plant on Kandiah River in the Kohistan district of Khyber Pakhtunkhw in Pakistan. 

Construction of the hydropower plant is estimated to cost $1.12 billion and will take about 60 months to complete. It is expected to begin commercial operation in 2025.

Under the contract, the Korean construction firm will be responsible for 30 years of operation before the Pakistani government takes over.

The equity amount that SK E&C will invest, as well as the earnings expected through the 30 years of plant operation, were undisclosed by the company.

It is the first time for a Korean construction company to join a 500-megawatt hydropower plant project in Pakistan, according to the company.

SK E&C added that the company is considering joining other hydropower plant projects in Pakistan. 

By Shim Woo-hyun (ws@heraldcorp.com)