KEPCO, Korea's biggest power supplier, won the exclusive right to build and operate a fossil fuel power plant in Ulaanbaatar, Mongolia, the company said Friday.
Chief negotiators from KEPCO and the Mongolian Energy Ministry signed a memorandum of understanding in Mongolia, Thursday, three months after the two sides agreed to work together to improve the power supply infrastructure in Mongolia.
"This is a milestone making it possible for us to make inroads into the fast-growing power supply market in Mongolia," KEPCO said in a statement. "This project will make it possible for us to win other projects there."
It is uncertain when the two sides will sign an official contract and when construction will begin.
"We will start a feasibility study soon," said a KEPCO official familiar with the case. "So it's hard to predict when we will sign an official contract."
KEPCO is the world's sixth-largest power plant builder, having built nearly 40 nuclear and fossil fuel power plants in 20 countries.
KEPCO said it was seeking business opportunities in other developing nations in Central Asia.