Naga Hammadi contracts signed

16 November 2001

Contracts for three of the four packages on the Naga Hammadi barrage project have been signed with Austrian and German companies. An award is also expected within weeks for the remaining package - the largest - for civil works. The project is being financed by Germany's Kreditanstalt fuer Wiederaufbau (KfW) and the European Investment Bank (EIB - MEED 12:10:01; 10:8:01).

On lot 2, for hydromechanical equipment, the winning contractor is DSD Dillinger Stahlbauof Germany, with a total price of Eur 26.7 million ($24.2 million) plus £E 5.6 million ($1.3 million). The client is the grand barrages section of the Irrigation & Water Resources Ministry.

Lots 3 and 4 both relate to the 64-MW hydroelectric plant to be built as part of the barrage, and the client is the Egyptian Electricity Holding Company. Austria's VA Tech Hydro, in joint venture with its German affiliate, VA Tech Escher Wyss, has signed the lot 3 contract for Eur 53.5 million ($48.6 million) plus £E 17.5 million ($4.1 million). It calls for the supply and installation of bulb turbines and generators. VA Tech Hydro has also signed the lot 4 contract, covering the electrical equipment, with a total price of Eur 12.6 million ($11.5 million) plus £E 12.9 million ($3 million).

The total prices for all three contracts are understood to include provisional sums for physical contingencies and price escalation.

For the civil works contract, revised prices were submitted at the end of September. The low bidder, at Eur 189.7 million ($172 million), was Vinciof France, with Germany's Bilfinger & Bergerand the local Orascom Construction Industries. It was closely followed by a group led by Germany's Philipp Holzmann. The final evaluation report on the tender is understood to be close to completion.

KfW has agreed to lend DM 242 million ($110 million) for the project, and a further Eur 75 million ($68 million) has been pledged by EIB.

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