The phase 2 expansion was initially planned to be tendered in the first quarter of 2005 as an independent power project (IPP), but PEC decided to approach Siemens/Bemco directly to build the planned 340-400-MW power station after the team's selection for phase 1. Sources close to the project say the two companies have been asked to prepare a financing proposal for the project, which is presently being drawn up. No timeframe for the completion of the project has been set, but the sources add that Sanaa is eager to complete the expansion as soon as possible.

PEC now expects to sign the phase 1 contract and related substation and transmission line contracts before year-end, pending the final approval of the recommended contractors by the Council of Ministers and the Supreme Tendering Committee.

Siemens and Bemco have offered to build the single-cycle, 341.4-MW Marib phase 1 plant for $159 million. Completion is due within 24 months of the contract signing. Germany's Lahmeyer International has the contract to supervise the construction of the power plant.

PEC has selected Hyundai Engineering & Construction Companyof South Korea for the EPC contract to build the project's 200-kilometre, 400-kV transmission line and Iran's Parsian High Voltage Substations Development Companyfor the EPC package covering the construction of the project's 400-kV and 132-kV gas-insulated switchgear (GIS) substations (MEED 20:8:04).