Shuweihat EPC contracts signed

16 November 2001

Germany's Siemensconfirmed on 3 December the award of the turnkey contract to build the 1,500-MW power plant on the first phase of the Shuweihat independent water and power project (IWPP). Valued at Eur 1,000 million ($895 million), the order was placed by the recently formed Shuweihat CMS International Power Company (SCIPC)and is the largest contract ever won by Siemens in the Gulf (MEED 24:8:01).

Under the terms of the power plant contract, Siemens will supply and install five gas turbines, two steam turbines, seven generators and all the ancillary equipment. The contract also covers the installation of high voltage switchgear for the plant and includes a long-term maintenance agreement.

Italy's Fisia Italimpiantiwill build the associated desalination plant under a $508 million contract. It will supply and install six multi-stage flash distillation units with a total capacity of 100 million gallons a day.

Both Siemens and Italimpianti were the nominated engineering, procurement and construction (EPC) contractors to the successful bidding consortium, made up of the US' CMS Energyand the UK's International Power. Now that the EPC contracts have been placed, both Siemens and Italimpianti will start confirming the major subcontract awards. The co-generation plant is due to be fully operational in 2004.

The signing of the EPC contracts came after SCIPC signed the financing agreement for the $1,600 million project with a group of banks on 1 December (see Banking & Finance).

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