MHI set for Cairo North turbines contract

21 December 2001

Japan's Mitsubishi Heavy Industries (MHI)is understood to have been selected for negotiations for the contract to supply the two 250-MW gas turbines for the 750-MW Cairo North combined cycle power station project (MEED 21:12:01).

MHI quoted a price equivalent to $109 million at the 31 October bid opening. This was higher than the $100 million price submitted by GE Power Systems of the US - the only other bidder - but project sources say MHI had the edge over its rival because of the larger size and higher capacity ratings of its equipment.

The client is the Egyptian Electricity Holding Company. The US/local Power Generation Engineering & Services Company (PGESCo)is acting as project consultant.

Assuming that contract negotiations are successfully concluded, the deal will mark MHI's first major turbine order in Egypt for many years. The company competed hard for the turbine package on the build-own-operate-transfer (BOOT) power station projects being carried out by Electricite de Francein Suez and East Port Said, but the contract eventually went to another Japanese firm, Toshiba Corporation(MEED 20:8:99). MHI built a series of power stations in Syria in the 1990s, and was awarded the main contract on the 2,400-MW Ghazlan power station project in Saudi Arabia in 1996.

On the Cairo North project, bids are due on 7 January for the 250-MW steam turbine package, and on 13 February for the heat recovery steam generators. Prequalified companies are also scheduled to receive invitations in the next few weeks to bid for the civil works package.

The project is being financed by the European Investment Bank, the Kuwait-based Arab Fund for Economic & Social Development and the Jeddah-based Islamic Development Bank.

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