Work begins at Hadjret Ennous

28 July 2006
Canada's SNC Lavalin has signed two contracts worth a total of $1,139 million to build and operate the 1,227-MW Hadjret Ennous power plant in Tipaza, almost seven months after the original awards were made (MEED 23:12:05). The contracts were signed with a newly-created project company, Shariket Kahraba Hadjret Ennous (SKH). SKH is 51 per cent owned by Algerian Utilities International, a 51:49 joint venture of SNC and Abu Dhabi government-owned Mubadala Development Company. The remaining 49 per cent is shared between the three major state energy companies: Sonatrach, Sonelgaz and the client, Algerian Energy Company.

Work on the gas-fired thermal plant involves an engineering, procurement and construction (EPC) phase and a 12-year operation and maintenance phase. Design and construction work is already under way, with the EPC phase expected to be completed in 2008. SNC will operate the plant and the electricity will be sold to Sonelgaz under a 20-year contract. The plant will increase the country's installed capacity by an estimated 20 per cent.

The project will be financed on a 70:30 debt/equity basis, with the project company responsible for $248 million in equity and local banks providing a non-recourse debt package.

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