GE closes in on Cairo North contract

04 July 2003
GE Power Systemsof the US has entered into negotiations with the Cairo Electricity Production Companyfor the estimated $100 million contract to supply two 250-MW gas turbines for the second phase of the Cairo North combined cycle project. GE's bid has been underwritten by a loan guarantee from the Export-Import Bank of the US (MEED 6:6:03; 15:11:02).

The other bidders for the gas turbines package are Germany's Siemensand a Japanese team of Mitsubishi Heavy Industries (MHI)with Tomen Corporation, which was awarded the $102 million gas turbines contract on the first phase of Cairo North. Following the award of the gas turbine contract on phase 2, tenders are expected to be issued by the end of August for the supply and installation of heat recovery steam generators and 250-MW steam turbines for each of the two phases of the project.

Tendering is more advanced on the 1,500-MW Nuberiya combined cycle project, for which Siemens was awarded the Eur 150 million ($175 million) contract in early June to supply all four gas turbines. Five groups of local and international contractors submitted bids on 18 June for the mechanical works package, and an invitation to bid for the civil works package is expected to be issued on 9 July. Bids are due on 20 July for the contract to install water and wastewater treatment networks at the plant (MEED 30:5:03; 25:4:03).

The two combined cycle plants at Nuberiya and Cairo North comprise the first phase of a 10-year emergency power station construction programme. The next two projects to be tendered are 750-MW combined cycle plants to be located at Talkha and Kureimat. The consultant is the local/US Power Generation Engineering & Services Company (PGESCo).

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