21, March 2002 – The Shaw Group Inc. announced Wednesday that its subsidiary, Stone & Webster, Inc., has signed a contract for the engineering and design for the Konaktepe Dam and Hydroelectric Power Plant in Turkey.
The engineering and design phase of the contract, valued at approximately $10m, represents the first of two phases of the project. Upon completion of the first phase, the Stone & Webster led consortium will negotiate the construction phase of the project which is estimated at between $300m and $400m.
The Konaktepe facility will generate 180 MW of electricity using a single dam (approximately 100m high), a power tunnel (approximately 15 km long), and a powerhouse with two Francis turbines.
The Konaktepe project is located on the Munzur River, a tributary of the Euphrates, near Ovacik in the Tunceli Province, in east central Turkey, and is considered by The Ministry to be strategically important to the region. The Ministry hopes that the project will promote area development while at the same time providing a more reliable, environmentally friendly source of electricity to the Province and the surrounding region.
Stone & Webster worked on the first hydroelectric power projects in the United States over 100 years ago. These projects, in many cases, involved the development of innovative technologies and construction techniques and represented the first major hydroelectric developments on many of the nation’s major rivers. Since then, Stone & Webster has engineered and constructed over 70 hydroelectric facilities worldwide.
Turkey’s Ministry of Energy and Natural Resources (“The Ministry”) awarded this contract under the umbrella of a Turkish-American bilateral agreement (“Joint Statement”) signed on February 26, 1998. The Konaktepe project is the second engineering, design, and construction project awarded under the bilateral agreement.
Stone & Webster was involved in more than 30 projects in Turkey over the past 30 years. “Our involvement in the region’s power development started in 1965, with the engineering for a transmission system that included the first transmission line crossing of the Bosphorus Straits,” said J. M. Bernhard Jr., Shaw’s Chairman, President and Chief Executive Officer. “We are hopeful that the completion of the Konaktepe project will create an opportunity for social and economic development of Tunceli Province and Stone & Webster will work closely with our consortium members and The Ministry to make sure that the maximum benefits are achieved for the people of Turkey.”
In addition to Stone & Webster as the consortium leader for the Konaktepe project, four other companies comprise the consortium:
* ATA Insaat Sanayi ve Ticaret A.S., a Turkish construction firm will be responsible for the dam and civil construction.
* Strabag AG, an Austrian construction firm will be responsible for the tunnel and surge chamber.
* Soyak Uluslarasi Insaat ve Yatrim A.S., a Turkish construction firm will assist Strabag AG with the tunnel and surge chamber.
* VA Tech Hydro GmbH & Co., an Austrian electrical and mechanical equipment supplier, through its US subsidiaries, VA Tech Voest MCE Corp. and VA Tech Elin USA Corp., will supply the hydro-mechanical and electrical equipment.
The Shaw Group Inc. is the world’s only vertically-integrated provider of complete piping systems and comprehensive engineering, procurement and construction services to the power generation industry. Shaw is the largest supplier of fabricated piping systems in the United States and a leading supplier worldwide, having installed piping systems in power plants with an aggregate generation capacity in excess of 200,000 megawatts.
The Company currently has offices and operations in North America, South America, Europe, the Middle East and Asia-Pacific; and has more than 13 000 employees. For additional information on The Shaw Group, please visit the Company’s web site at www.shawgrp.com.