Daewoo Engineering & Construction has secured a contract worth N828bn ($733m) to construct a coal-fired power plant in Nigeria.

The plant will be situated in the south-east where coal is available in abundant quantity, according to Nigerian Compass.

A formal contract will be signed with Total E&C Nigeria in the first half of this year.

Daewoo Engineering & Construction president Jitender Sachdeva said that the firm considered investing in the nation’s power sector due to the eagerness of the government to decrease the monopoly of the Power Holding Company of Nigeria.

Each power plant will have a capacity for 500MW and cost between $750m and $800m, according to Sachdeva.

The firm will construct the plants in Odu and Abocho in the state of Kogi, and will use coal from the nearby Okaba and Ogbogbo coal mines where the firm has concessions.