IPP back on track

19 July 2002

Negotiations about the Kherbet al-Samra independent power project (IPP) have gained a new lease of life after a series of delays. The project has been spurred on by progress on the Jordanian section of the Egypt-Jordan gas pipeline, which will deliver feedstock to the combined cycle plant. A preferred bidder for the 370-kilometre gas line is expected to be announced by early August (MEED 5:7:02, Oil & Gas).

Belgium's Tractebelhas until 22 September to submit updated proposals for the IPP, sources say. The company has been the preferred bidder for the project since November 1999 when it submitted the lowest tariff proposal for the estimated $300 million project. Bids for the engineering, procurement and construction (EPC) package will be submitted to Tractebel on 6 August (MEED 14:12:01).

The exact capacity of the power plant is yet to be finalised but it is expected to be close to the 450 MW quoted in the original tender documents. The plant will provide for up to 30 per cent of Jordan's energy needs when it comes on line in 2005. Earlier deliveries of gas through the Egypt-Jordan transmission system will be used to fuel the power station in Aqaba, which is being converted to gas-fired production by Paris-based Alstom.

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