This paper presents a scheme to design optimal placement of phase-shifting transformers for power system congestion problems. A good design of phase-shifting transformers placement can improve total transfer capability in interconnected systems. In order to find the optimal placement of phase-shifting transformers, the power flows of the interesting transmission lines are evaluated using sequential quadratic programming technique. This algorithm considers power balance equations and security constraints such as voltage magnitudes and transmission line capacities. The proposed scheme is tested in 10 machines 39 buses and IEEE 57 buses systems. Test result shows that the proposed method can find the optimal placement of phase-shifting transformers to solver power system congestion problems.