Turkmenistan’s state concern Turkmenhimiya and South Korea’s Daewoo Engineering & Construction have signed a framework agreement for the construction of a mineral fertilizer plant in Turkmenabat, with a total project value of $700 million, the Transport and Communications Agency under the Cabinet of Ministers of Turkmenistan reported on Saturday.

The agreement was signed during negotiations between Baymyrat Annamammedov, Deputy Chairman of the Cabinet of Ministers of Turkmenistan for construction and the industrial sector, and Ahn Duk-geun, Minister of Trade, Industry and Energy of the Republic of Korea.

According to the agreement, the new facility will be built at the request of Turkmenhimiya, with Daewoo E&C serving as the main contractor. The plant will focus on processing phosphorus into mineral fertilizers.

Construction is expected to be completed by 2029. The project aims to strengthen Turkmenistan’s industrial and agricultural potential and expand its export capabilities.

Daewoo E&C was granted preferred contractor status in October 2024. Both parties intend to sign the final contract by the end of this year.