Azarab Energy signs up for Al-Mahdi phase 1

16 December 2005
The local Azarab Energyhas signed an engineering, procurement and construction (EPC) contract to build a 475-MW captive power plant for the Al-Mahdi aluminium smelter at Bandar Abbas. The Eur 158 million ($189 million) contract will take 22 months once it comes into effect on financial close (MEED 11:2:05).

The client is Iran Mines & Mineral Industries Development & Renovation Organisation (Imidro), a subsidiary of the Mines & Industry Ministry, which will supply the power to Al-Mahdi's aluminium offtaker on a buyback basis. Azarab Energy will use turbines supplied by Italy's Ansaldo Energiafor the single-cycle plant.

The finance is to be arranged within six months by Mediocredito Centrale, with 70 per cent coming from the Italian export credit agency SACE and the remainder as a commercial loan.

Azarab Energy was also the lowest bidder, with the highest technical rating, for phase 2 of the Al-Mahdi power project, a 1,000-MW plant to be carried out on a build-operate-transfer (BOT) basis. Bids were opened six months ago, but an official award has still to be made.

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