Hyundai Engineering’s $1.9 billion solar power project in Serbia has hit a roadblock after the cancellation of a key supervision and consulting contract, making construction delays unavoidable.
Hyundai Engineering, a South Korea–based construction and engineering firm known for its global infrastructure and energy projects, is leading the initiative in partnership with U.S. solar company UGT Renewables.
On July 1, Serbia’s state-run power utility EPS announced that it had canceled the $6.6 million bid to select a project supervisor and consultant for the solar plant construction. EPS stated that the two bidding consortia failed to meet qualification requirements. Specifically, the New Energy Solution consortium did not satisfy technical and professional standards, while the Energoprojekt Entel consortium was disqualified due to outstanding debt issues.
As a result, the Hyundai Engineering–UGT Renewables consortium, which had planned to break ground later this year, now faces delays.
The setback is expected to affect not only this project but also other planned solar installations across Serbia, including those in Negotin, Zaječar, Lebane, Leskovac, Bujanovac, and Orašac.
The project, awarded in October last year, involves building a total of 1.2 GW of solar generation capacity along with energy storage systems.
Once completed, the facilities will be handed over to EPS. The $1.9 billion contract represents the largest overseas solar power deal ever secured by a South Korean construction company.
