CESI, part of Italy's Enel, beat off competition from Fichtnerof Germany and Hydro Quebecof Canada for the study, scheduled to be completed by next March, which will involve planning of the pipeline as well as the preparation of the technical specifications. The study was called for following discussions between AEC and the five international developers competing for the 2,000-MW private power project tendered by state power company Sonelgaz.

Endesaof Spain, the US' AES Corporation, Electricite de France, Enelpowerof Italy and SNC Lavalinof Canada submitted technical bids for the build-own-operate (BOO) project in January. The submission of commercial bids will take place once the feasibility study has been completed.

The project calls for the construction of two separate plants generating a total of 2,000 MW. A 1,200-MW plant is to be built at Skikda; the power generated there will be exported to Spain through the subsea pipeline that is the subject of CESI's study. A further 800 MW will be generated at a new plant to be built at Arzew. The power from this plant will be sold directly to Sonelgaz for use in the domestic market (MEED 17:8:01).