The extension allows PEEGT to place the tender in the Official Journal of the EU and follows an application to the European Investment Bank (EIB) for up to 50 per cent of the funding for the project. The EIB is considering the proposal but in order to be eligible the contract has to be advertised in the journal.

The 26-month contract involves the design, construction and commissioning of a new power plant, which will comprise two 250-MW gas turbines and a 250-MW steam turbine (MEED 3:10:03).

Sources at PEEGT say it expects to appoint by the end of the year an international consultant to carry out tender evaluations on the project. PEEGT is holding talks with five international consultants. They are Sweden's SwedPower, Germany's Fichtner, the UK's PB Power, Switzerland's Colenco and ESB International of Ireland.

PEEGT also hopes to sign by the end of 2003 the contract to expand and convert two 300-MW gas-fired power stations at Nasiriyeh and Zeizoun. A German joint venture of Siemens and Koch was named in mid-November as preferred bidder for the contract. The contract includes the addition of three heat recovery steam generators and a 150-MW steam turbine unit at each plant. The power stations have three 125-MW gas turbines. The Kuwait Fund for Arab Economic Development will provide finance (MEED 14:11:03).