PEEGT cancels Tishreen; Deir Ali award expected

13 August 2004
The Public Establishment of Electricity for Generation & Transmission (PEEGT) has cancelled plans to convert and expand the Tishreen power plant to combined cycle. PEEGT officials had been reviewing bids submitted in May for the contract to carry out the work, but sources say the project has been dropped because it is no longer economically viable.

The project was thrown into doubt after the award in February to the German joint venture of Siemensand Kochof the contract to expand and convert two 300-MW gas-fired power stations at Nasiriyeh and Zeizoun. The planned construction of two new 750-MW combined cycle power stations at Deir Ali, 36 kilometres south of Damascus, and at Deir Ezor, in the northeast, also make the project unattractive.

PEEGT expects to select by the end of August an engineering, procurement and construction (EPC) contractor for the Deir Ali contract, which calls for the supply and installation of two 250-MW gas turbines and a 250-MW steam turbine. Bids are being evaluated from the Siemens/Koch joint venture and an unidentified Russian consortium for the estimated $350 million contract. The project is being funded by the European Investment Bank (EIB), Kuwait-based Arab Fund for Economic & Social Development (AFESD) and the Kuwait Fund for Arab Economic Development.

Ireland's ESB International (ESBI)has the contract to evaluate bids (MEED 7:5:04).

International companies have until 15 September to submit bids for the estimated $350 million EPC contract to build the Deir Ezor plant. PEEGT is in talks with AFESD and EIB over funding for the project. PEEGT is evaluating bids from international consultants for the contract to carry out tender evaluation (MEED 30:7:04).

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