Contracts signed for Ras Laffan B

A power and water purchase agreement (PWPA) was recently signed for the Ras Laffan B independent power and water plant (IWPP) in Qatar. This follows the contracts awarded for the civil contract and high voltage switchgear bays which were signed in January.

International Power (IP), Qatar Electricity and Water Corp. (QEWC) and Chubu Electric of Japan, signed the 25-year PWPA with Qatar General Electricity and Water Corp. (Kahramaa) for the entire water and power output from the station.

Ras Laffan B is Qatar’s second IWPP. When fully operational in 2008, the project will have a power output of 1025 MW and produce 60 MIGD of water. Power will be produced by three gas turbines and two steam turbine power units supplied by Siemens. The first phase of the project is scheduled to begin operation in 2006. The 25-year take or pay agreement will cover both an interim operating period beginning in 2006, and the full operating period from 2008. The total cost of the project is estimated to be $900m. All financial matters are expected to be resolved by 31 March 2005.

The contract for the PWPA follows two contracts announced in January. Areva’s transmission & distribution was awarded a g10.3 m ($13.2m) contract by Siemens Power to supply five high-voltage gas insulated switchgear bays. The first three bays will be operational in 13 months and the remaining two within 16 months.

In a separate contract worth $14.1 m, Indian company Larsen & Toubro secured an order for the construction of civil works at the plant. The contract was awarded by Siemens Power Generation which is the EPC contractor for the project.

Sohar IWPP financing agreed

A syndicate of international and local banks has reached financial closure on the Sohar independent water and power project (IWPP).

Sohar Power Company (SPC), owners of the country’s largest IWPP, had earlier signed a $620m financing agreement with the lending institutions.

The financing package consists of a $549.89m facility and RO27m ($70m) performance bond facility from a local bank. The combined cycle plant will have a power output of 585 MW and produce 33 MIGD of water which will be sold to the Oman Power and Water Procurement Company under a 15-year power and water purchase agreement beginning in April 2007.

The first phase with an output of 360 MW will begin operation in April 2006.

Plans for second Fujairah plant

Abu Dhabi’s Union of Water and Electricity Company (UWEC) is planning to set up another power and water desalination project in Qidfah District in Fujairah. The plant would cost about Dh3.5bn ($953m).

UWEC has conducted a feasibility study and expects that the station will produce between 800 and 100 MW of electricity and around 380 million litres/day of water. The company is considering the inclusion of a strategic partner from the private sector in the development of the project. The international company would own a 49 per cent share.

Work on the project would begin in 2006 if the project is approved. The new station should raise UWEC’s generating capacity to about 1656 MW.

After the project is completed the company’s total production of desalinated water will rise to 756 million litres per day. If the project is realized, the total amount it has invested in Fujairah alone will break through the Dh8.5bn mark.

Meanwhile, the Dubai Electricity and Water Authority (Dewa) will sign contracts worth Dh7bn this year in an effort to meet its 2010 target for installed capacity. Dewa recently signed three contracts for expansion projects with a combined value of Dh1.29bn.

The first contract valued at Dh801m, is for the construction and commissioning of Phase 2 of the Aweer power station (H station) to produce an additional 400 MW, raising the capacity of the station to 1000 MW. The second contract is for the construction of six substations for new localities in Dubai. The third contract is for the laying of cables and the construction of three substations.

According to Dewa, power consumption grew by 14 per cent in 2004 and is expected to grow by 15-18 per cent annually until 2012.

Siemens wins Marib contract

The contract for a new gas turbine power plant to be built in Marib, Yemen has been awarded to Siemens Power Generation. The contract was awarded by the state-owned Public Electricity Corporation.

The new gas turbine plant, to be built in Marib 200 km east of the capital Sanaa, will have a capacity of 340 MW. Marib Unit 1 includes three SGT5-2000E (previously gas turbines called V94.2). Saudi company Bemco will be responsible for civil structures as well as electrical and mechanical equipment. Project financing will be secured through the Arab Fund for Economic & Social Development, the Saudi Fund for Development and the Yemeni state. Commercial operation will begin in 2007.

Marib will make a significant contribution to the country. Yemen has an installed capacity of 900 MW but suffers from regular power shortages. The Yemeni government plans to install a total of 1000 MW at the Marib site over three phases.

Egyptian wind farm funding

The German Reconstruction Bank has agreed to jointly finance a wind energy power station in Egypt and signed an agreement that will see it provide up to g75m ($99m).

The wind farm is to be built in the Zaafarana area of the Red Sea and is part of Egypt’s national policy to make better use of its natural wind resources. The wind farm will be connected to the national grid by 2007.

The Egyptian Minister of Electricity, Dr Hassan Younis, indicated the possibility of further wind farm development in the country by stating that a g700 000 EU grant was currently funding a wind farm feasibility study in Gabal El-Zeit.

Az Zour opens final phase

The second and final phase of the 1000 MW Az Zour plant was officially inaugurated by German Chancellor Gerhard Schroeder during a state visit on 28 February 2005.

The plant, located 80 km south of Kuwait City was built under a g390m ($523m) contract awarded by the Kuwaiti Ministry of Energy to Siemens Power Generation.

The contract was awarded in April 2003 and the first phase of the project – four gas turbines with an output of more than 500 MW – began operation in the summer of 2004.

The completion of phase 2 brought the total output of the facility to 1000 MW.

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