Babcock & Wilcox of the US has signed a contract for the engineering, procurement and construction of the 125-MW power station to be built by the local Saba Power Company (SPC) near Farouqabad. The formal signing of the contract, worth $90 million, follows the securing of financial close for the project in April this year.
SPC was formed to develop the oil-fired plant by Cogen Technologies Energy Group of the US, Capco Resources of Canada and the local Powerflow International. The US' Export-Import Bank is providing term debt of up to $81 million.
Babcock & Wilcox say that site activities are due to start in early 1997, and that completion of the plant is scheduled for October 1998. Japan's Toshiba Corporation will provide the turbine generator, and Babcock & Wilcox will manufacture the boiler. Construction tenders have not yet been issued, but the company expects local contractors to take the bulk of the work (MEED 10:5:96).
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