The bidders for the Hussain upgrade were Italy’s Ansaldo Energia, Hyundai Engineering & Construction Company of South Korea, Paris-based Alstom Power and Doosan Engineering & Construction Company, also of South Korea.
There has been no official reason for the tender’s cancellation, although it is understood that bid prices came in above budget. Project sources say that the ministry may now look at incorporating the Hussain work into the $180 million EPC contract for the nearby Kherbet al-Samra combined cycle power plant, which is currently out to bid. The Hussain scope called for the supply and installation of a steam turbine, a gas turbine and two waste heat recovery boilers.
The technical specifications for the Al-Samra tender had to be rewritten in mid-September after the client, the Central Electricity Generating Company (Cegco), failed to reach agreement with the local water authority over the supply of cooling water. The new specifications, calling for air cooling to be employed, were sent out to bidders in the same week the Hussain contract was cancelled. Bids for Al-Samra are now due to be returned on 20 November.
The consultant on the two projects is the US’ Kuljian Engineering Corporation (MEED 22:8:03).