Samsung C&T wins $1.4bn Algeria power contract

20 February 2014

South Korean firm will build two new combined-cycle power plants

South Korea’s Samsung C&T has been awarded a $1.37bn contract to build two power plants in Algeria for a subsidiary of state utility and gas company Sonelgaz.

The South Korean firm will provide engineering, procurement and construction (EPC) services for a power plant in Mostaganem and Nama. The Mostaganem plant will have a capacity of 1,450MW and the one in Nama will have a capacity of 1,163MW.

The client is Sonelgaz Electricity Production Company (SPE), a subsidiary of Sonelgaz.

The two plants are part of the Algerian government’s plans to build six new combined-cycle power plants.

Algeria’s Compagnie de l’Engineering de l’Electricite du Gaz (Ceeg) is also pressing ahead with a programme to increase the country’s generation capacity. In June last year, it has awarded seven contracts worth a total of $1.2bn for major power projects.

The biggest contract was awarded to South Korea’s Daewoo E&C. The South Korean firm won a $361.4m deal to build three gas turbine power plants with a capacity of 400MW. The project is expected to take 40 months to complete.

The South Korean consortium of Hyundai E&C, Hyundai Engineering and Daewoo International was also awarded a contract to build three 400MW gas turbine power plants. The contract value is $315m and the work is scheduled to take 39 months to complete.

In the largest single project, Spain’s Ansaldo was awarded a $326.2m contract to build a 500-600MW gas turbine plant.

The US’ General Electric (GE) was successful in three of the seven tenders, winning one project independently and two as part of joint ventures.

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