Award imminent on 3,100-MW power project

06 June 2003
A $750 million contract is to be finalised by the end of June for the installation of 3,100 MW of new power capacity at four different plants across the country. Two consortia bid for the project late last year and one is now understood to be in advanced negotiations with the client, Iran Power Development Company (IPDC - MEED 7:2:03).

Both groups are led by local companies and contain international turbine suppliers. The first is Iran Power Plant Projects Management Company (Mapna)in consortium with Italy's Ansaldo Energiaand Germany's Siemens. The other is led by Kaysonin partnership with Namvaran Industry Network Developers, both local, France's AlstomPower and Mitsubishi Heavy Industriesand Marubeni Corporation, both of Japan. A third group, comprising GE Franceand the local Naspazarab, declined to bid. The consultant is the state-owned Ghods Niroo.

The contract will call for the installation of 1,000 MW at Rey power plant, south of Tehran, 700 MW in the south of Fars Province, 700 MW at Qain in southern Khorassan Province and 700 MW at Urumiya in West Azerbaijan province. The Rey upgrade will comprise four 250-MW gas turbines, which have not been used in Iran before. The other plants will employ 160-MW gas turbines. The first units are scheduled for commissioning 18 months after the contract is signed.

Bids were submitted for the project late last year, but the contract award has been delayed to allow IPDC extra testing of the new 250-MW turbines to ensure their compatibility with the existing plant. A contract is now expected to be finalised by the end of June, but will not be signed for another two-three months pending government authorisation. Implementation is expected to start by the end of this Iranian year in March 2004.

Another 3,000 MW is expected to be tendered in the fourth quarter, although state power generation and transmission company, Tavanir, an Energy Ministry subsidiary, has not yet specified the location of the new capacity.

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