Preparations under way to retender Tishreen, Nasiriyeh

31 January 2003
The Public Establishment for Electricity Generation & Transmission (PEEGT) is gearing up to retender two power plant upgrade and conversion projects during the first quarter of this year. PEEGT decided to reinvite bidders following lack of interest in one project and prices exceeding the planned budget on another (MEED 19:7:02; 11:5:02).

Seven international contractors submitted bids in 2002 for the contract to upgrade and convert the 200-MW Tishreen power plant, covering the installation of a new 100-MW steam turbine and two heat recovery steam generators.

However, PEEGT decided to cancel the tender after two preferred bidders overshot the budget target of $70 million. Despite negotiations, PEEGT says the offers were 'far higher' than budgeted for. A technically revised tender is now planned to be issued in March. The bulk of finance for the project is to come from the Abu Dhabi Development Fund, with additional finance to be provided by Jeddah-based Islamic Development Bank.

A new tender is also being prepared at PEEGT on another project, the upgrade and conversion of the Nasiriyeh power station, which has three 125-MW gas turbines. The project was initially planned to be awarded in 2002, but the tender was aborted after only one company submitted a proposal. PEEGT says the scope of the project has now been reduced to exclude the installation of an additional gas turbine, but it will cover two heat exchanger/steam turbine units.

Tender documents will be released in late February. The Kuwait Fund for Arab Economic Development will finance most of the Nasiriyeh scheme.

Ireland's ESB International (ESBI)in 2001 was awarded the contracts to provide consultancy services for the conversion of the two plants (MEED 11:5:01).

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