Siemens wins Berroughia EPC; Hadjret Ennous nears completion

01 October 2004
A consortium of Germany's Siemensand the French office of Italy's Saipem, along with local subsidiaries Siemens Algiers and Sofresid, was awarded on 27 September the Eur 234 million ($288 million) contract to build a 489-MW gas-fired power plant at Berroughia, 75 kilometres south of Algiers. The client is state power company Sonelgaz.

The 21-month contract comprises an engineering, procurement and construction (EPC) element, worth Eur 147 million ($181 million), and an operation and maintenance (O&M) component, valued at Eur 87 million ($107 million). Saipem will be responsible for civil works and the erection of the plant. The other bidders for the contract were Canada's SNC Lavalinand Alstom of France (MEED 19:12:03).

Siemens and SNC Lavalin are the two remaining bidders for the contract to develop a 1,200-MW combined cycle power plant at Hadjret Ennous in the coastal region of Tipasa. Negotiations on the award of the contract, estimated to be worth Eur 700 million-800 million ($862 million-985 million), are due to begin in Algiers in early October. The client is the state-owned Algerian Energy Company (AEC).

The contract comprises an EPC element, involving the installation of three 400-MW turbines, and a 12-year O&M agreement. The successful bidder will also be expected to provide 25 per cent of the project company's equity. Siemens is in negotiations with German export credit agency Hermes to cover 85 per cent of the debt element.

Technical bids were opened on 19 July, and commercial offers are expected to be submitted at the turn of the year, at which point a contract award will be made. Work is due to begin in early 2005 (MEED 23:7:04).

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