Hyundai Engineering & Construction Wins 158.2 Billion KRW Contract for 'Peru Chinchero New Airport Site Grading Works'

First Order Secured After Opening Local Branch in Peru Last Year
Construction of New Gateway Airport to World-Famous Tourist Site Machu Picchu
Secured 81.8 Billion KRW Contract for 'Rafa Area Substation Project' in Saudi Arabia

Aerial view of Chinchero Airport, Peru.

[Asia Economy Reporter Jo Gang-wook] Hyundai Engineering & Construction announced on the 14th that it has won the contract for the ‘Chinchero New Airport Site Earthwork Construction’ in Peru for the first time since its establishment.

The Chinchero New Airport site earthwork project in Peru is a contract issued by the Peruvian Ministry of Transport and Communications worth approximately 158.2 billion KRW (143.8 million USD). Hyundai E&C formed a joint venture (J/V) with the local construction company HV Constratista and succeeded in winning the first contract after establishing a local branch. Hyundai E&C holds a 55% stake (about 87.5 billion KRW) in the project.

This project is a site earthwork and soft ground improvement package for the construction of a new international airport in Chinchero city, about 15 km northwest of Cusco, to replace the existing international airport in downtown Cusco, which is the gateway used to travel to Machu Picchu, a UNESCO World Heritage site and Inca ruins, addressing aviation safety issues and noise problems for residents.

The total project cost is about 500 million USD (approximately 600 billion KRW), and it involves building a new international airport with a 4 km long runway and one terminal with 13 boarding gates, capable of accommodating 6 million passengers annually. By winning this site earthwork contract, Hyundai E&C is expected to gain momentum in securing the passenger terminal/runway construction package (400 million USD) currently being prepared for linked bidding.

Hyundai E&C ranked first in the comprehensive evaluation covering technical and commercial aspects after the bid closed on October 30 last year, surpassing five prominent global competitors from Spain, China, Portugal, and others.

Aerial view of a Saudi substation.

In addition, Hyundai E&C recently won a contract worth 81.8 billion KRW for the ‘Rafa Area 380kV Substation Construction’ in Saudi Arabia. This is an additional contract following the ‘Hail Substation ~ Al Jouf Substation Section 380kV Transmission Line Construction’ project, the first overseas order of the year in January. With this, Hyundai E&C has signed two contracts worth a total of 208.2 billion KRW with the Saudi Electricity Company this year.

In particular, Hyundai E&C evaluated that winning the Rafa 380kV substation contract overcame the recent trend of low-price bidding by local and Indian companies in the Saudi transmission and distribution sector and aligns with the Saudi government’s emphasis on localization policies, securing a favorable position for future new contract wins.

A Hyundai E&C official said, “These two contracts, the first since establishing the Peru branch and an additional order in Saudi Arabia, a traditional stronghold, reaffirm the excellence of Hyundai E&C’s construction execution know-how, technology, and network. We will further strengthen trust with clients and continue to secure orders to lead the global construction market.”