Daewoo E&C signs MOU with Turkmenistan to modernize Karakum Canal

Daewoo Engineering & Construction signed a memorandum of understanding with Turkmenistan's Water Resources Committee on Tuesday at the Korea-Turkmenistan Business Forum, held at Lotte Hotel in Sogong-dong, the company announced Wednesday.

The MOU was signed on the sidelines of the first Korea-Central Asia Summit to strengthen bilateral cooperation and lay the groundwork for a modernization project covering approximately 250 kilometers of the lower Karakum Canal, in which Daewoo E&C is considering participation. The two sides also plan to explore cooperation opportunities on promising water resources and environmental projects within Turkmenistan.

The Karakum Canal is the world's largest irrigation and water supply canal, stretching roughly 1,100 kilometers across Turkmenistan from east to west, originating at the Amu Darya River in the north, with a width of 25 to 30 meters. Completed in the 1960s, it has long played a vital role in supplying agricultural, residential and industrial water across the country. The need to modernize the canal for more efficient water management and stable supply has grown increasingly urgent in recent years.

Daewoo E&C entered the Turkmenistan market for the first time in May last year when it won a contract for a mineral fertilizer plant in the country. The facility is designed to produce 350,000 tons of phosphate and 100,000 tons of ammonium sulfate annually, with completion scheduled for 2028. Building on that foothold, the company is actively exploring additional contracts in industrial infrastructure and construction in Turkmenistan.

At the Korea-Turkmenistan Business Forum held during the Korea-Central Asia Summit, Daewoo E&C Chairman Jeong Won-ju met with President Serdar Berdimuhamedov to outline further project plans and seek the Turkmenistan government's cooperation. Jeong also attended a state dinner at Cheong Wa Dae and the Korea-Uzbekistan Business Forum during the summit, as part of broader efforts to build cooperative ties with multiple Central Asian nations.

"This MOU is significant in that it lays the foundation for our entry into Turkmenistan's water resources and environmental infrastructure construction market," a Daewoo E&C official said. "We will draw on our civil engineering expertise and experience to support the successful execution of this project and continue expanding cooperation across a range of sectors."

According to disclosures filed with the Financial Supervisory Service, Daewoo E&C posted consolidated sales of 3.99 trillion won ($2.97 billion) in the first half of this year, with operating profit of 487.9 billion won and net profit for the period of 363 billion won.