The plant, which will comprise four 156-MW gas turbines, will be situated 250 kilometres southwest of Tripoli near the planned export pipeline transporting gas from the Western Desert to Sicily.

BHEL was one of five companies to bid for the contract when the tender was first launched in 1998. Initially, Italy's Enelpowerwas selected to build the gas-fired plant. However, the signing of the contract was repeatedly postponed and eventually the Italian company and Gecol reached agreement to cancel the order (Power, MEED Special Report, 17:1:03).

BHEL, which is understood to have been second in the original bidding process, has priced the contract in three portions - a local currency component and dollar and euro-denominated tranches.

BHEL's previous work in Libya includes the construction 10 years ago of the 240-MW Tripoli West plant, which Russia's Technopromexportis scheduled to expand (MEED 18:7:03; India, MEED Special Report, 15:1:99).