Hitachi picked for Cairo North turbine

19 April 2002

Japan's Hitachiis understood to have been selected for the contract to supply the 250-MW steam turbine for the 750-MW Cairo North combined cycle power station project. The package was the second to be issued for tender in the project, which is being financed by regional and European development agencies. The $102 million contract for the two gas turbines was signed in March with a Japanese team of Mitsubishi Heavy Industriesand Tomen Corporation. Bids are also under evaluation for the heat recovery steam generator (HRSG) package, and contractors are preparing to quote for the civil works, transformers, switchyard and water/wastewater treatment packages (see Tenders; MEED 23:3:02).

Hitachi was one of six companies to bid for the steam turbine. Its price was fourth lowest, after quotes from Russian and Czech firms, but it gained points in the evaluation because of its relatively high capacity rating. In the final adjudication, Hitachi's main competitor was Alstom of France. The price agreed for the contract is understood to be $27 million-28 million.

Project sources say the HRSG package is expected to go to the low bidder, NEMof the Netherlands, which quoted prices of $23 million and $24 million respectively for the two options specified.

Six groups of international and local contractors are scheduled to submit bids by 30 April for the civil works package. Revised deadlines of 13 May and 15 May respectively have been set for the transformers and switchyard packages. The closing date for the water and wastewater treatment package is 10 June.

The project is being carried out by the Egyptian Electricity Holding Company and affiliates Cairo Electricity Production Companyand Cairo Electricity Transmission Company. The project consultant is the US/local Power Generation Engineering & Services Company (PGESCo).

The European Investment Bank has provided a Eur 150 million ($135 million) loan for the scheme. The Kuwait-based Arab Fund for Economic & Social Development is lending KD 27 million ($88 million), and the Jeddah-based Islamic Development Bank has agreed to lend $41 million.

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