Algeria awards $1.2bn-worth of power deals

26 June 2013

Work will involve building gas turbine plants ranging in size from 17-600MW

Algeria’s Compagnie de l’Engineering de l’Electricite du Gaz (Ceeg) has awarded seven contracts worth a total of $1.2bn for major power projects.

The biggest contract was awarded to South Korea’s Daewoo E&C. The South Korean firm won a $361.4m deal to build three gas turbine power plants with a capacity of 400MW. The project is expected to take 40 months to complete.

The South Korean consortium of Hyundai E&C, Hyundai Engineering and Daewoo International was also awarded a contract to build three 400MW gas turbine power plants. The contract value is $315m and the work is scheduled to take 39 months to complete.

In the largest single project, Spain’s Ansaldo was awarded a $326.2m contract to build a 500-600MW gas turbine plant.    

The US’ General Electric (GE) was successful in three of the seven tenders, winning one project independently and two as part of joint ventures.

For the first contract, GE was awarded a $45m contract to supply a variety of equipment for a gas turbine power plant. For the second contract, GE, in joint venture with Greece’s Metka, was awarded a $144m deal to build a 300MW gas turbine power plant. The project will take an estimated 30 months to complete.

GE, in partnership with France’s Cegelec, was also awarded a $125m contract to build a power plant utilising two 200MW gas turbines. The contract duration is 29 months.

The US’ Pratt & Whitney was awarded a $104.3m contract to build four gas turbine power plants, each with a capacity of 17MW. The project is expected to take 13 months to complete.

Ceeg is a subsidiary of local energy firm Algeria’s Engineering Company of Electricity and Gas (Sonelgaz).

The projects are part of Algeria’s planned generation programme to meet rapidly rising local power consumption. The country suffered widespread blackouts in July 2012, when demand reached a record 9,463MW. Peak demand is expected to reach up to 15,000MW by 2017

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