Jordanians ink northern IPP

16 January 2006
Baghdad is pressing ahead with plans to increase its generating capacity after selecting Mass Jordan Trading Company to develop an independent power project (IPP) in the north. The selection came almost a year after the Electricity Ministry awarded an unidentified company a 10-year concession to develop a 200-MW single cycle power plant at Chamchamal.

The estimated $250 million build-own-operate (BOO) contract will take about 18 months. The greenfield plant will initially have capacity of 200 MW, with a further 250 MW added six months after first production begins. The Kurdistan Regional Government (KRG) is also understood to be an investor in the project. Negotiations are ongoing to finalise the offtake tariff.

Mass Jordan will have both the feedstock and power purchase agreements guaranteed by the ministry. Located in Khurmala village, about 35 kilometres west of Irbil, gas will be provided from the nearby Khurmala oil fields, which will have production of about 100,000 barrels a day (b/d). Around 250 MW of output will serve Irbil, with the remainder to be connected to the national electricity grid.

Mass Jordan is preparing tender documents for the main civil works contract, while it is also in negotiations with international firms for the main consultancy contract.

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