Turkish power plant deals struck

Several US and European companies have signed contracts with Turkey for the supply of power plant equipment and services in deals totalling more than $800m. GE Power Systems, Black and Veatch and VA Tech Elin are among companies that will partner Turkish firms to construct natural gas-fired and hydropower plants on a build-operate-transfer basis.

GE Power Systems and Turkey’s Atam Elektrik Sanayi ve Ticaret are to develop a $194m, 206 MW natural gas fired plant in Zonguldak province. GE will share the main engineering, procurement and construction contract for the project with Technip of Italy, and will also be the long term services provider.

A 200 MW gas fired power station will be constructed by Turkey’s Nokta Dis Ticaret and Yilsan Haddecilik, and US firm Generation Ventures Associates. The plant, near the western town of Eskisehir, will be completed in 2002.

Two hydropower plants will also be constructed. Black and Veatch, together with Bayindir-Limak of Turkey, will build a 194 MW plant near Polatli. A 380 MW hydropower plant will be built by a consortium of companies, including Lemna, HDR Engineering, VA Tech Elin, AGE and Ceylan.

Polish bourse to start operating in July 2000

Poland has formally founded its first electricity power exchange, and expects the first deal to take place on July 1, 2000. The bourse has been modelled on Scandinavia’s NordPool and will start dealing in spot contracts, later developing futures and options contracts.

The power exchange has been set up as part of the Polish government’s plans to liberalize the country’s electricity market. Deals will be done on a screen-based system, and the basic unit of trade will be 100 kWh. Trade will be open to brokers, distributors and other exchange members.

The liberalization plans also include the privatization of several power plants. The treasury recently announced bids for a ten per cent stake in the Bialystok power plant, and has also selected Vattenfall to take over a 55 per cent stake in Elektrocieplownie Warszawskie. National Power, EnBW and a Japanese consortium are reported to be bidding for a stake in the Rybnik power plant.

Owners of the bourse include the state treasury, the Warsaw Stock Exchange, Endesa, Elektrim and several generators and distributors.

Moldova privatization

Spanish electricity group Union Fenosa Acex is to invest up to $95m in the next five years after winning the international tender to privatize Moldova’s five electricity distributors. Union Fenosa will be responsible for privatizing Red Sud as well as two of the other distribution companies.

Union Fenosa must now select one of two distributor ‘packages’ to complete the transaction; the first comprises Red Chisinau and Red Centru, and the second Red Nord and Red Nord-Vest. Whichever package it does not choose will be declared void and put to a fresh international tender.

The deal is Union Fenosa’s first venture into Eastern Europe and the company says that it is seeking to secure the involvement of the World Bank and the EBRD.

It will initially invest $5.1m followed by a further $13m over five years in Red Sud, which serves around 162 000 customers in Moldova.

Jebel Ali contract

The Dubai Electricity and Water Authority has signed a $253.4m deal with South Korea’s Hyundai Engineering and Construction to increase the capacity of the Jebel Ali power and desalination plant. A Hyundai-led consortium will construct and commission the project, known as ‘D phase II’, in several phases.

Hyundai and its project partners will supply three gas turbines with a total output of 360 MW.

Turow 4, 5, 6 to be refurbished

An international consortium led by ABB Alstom Power has won the $667m contract to rehabilitate units 4, 5 and 6 of Poland’s Turow power plant. The contract is the third phase in the rehabilitation of the plant’s six units.

The three units at Turow will be replaced with three CFB boiler islands supplied by Foster Wheeler. Each boiler will have a capacity of 260 MWe. The turbine island, electrical and control systems and other auxiliary equipment will be supplied by ABB Alstom.

The project will be commissioned in 2005. The first phase rehabilitation of units 1 and 2 was commissioned in 1998. The second phase unit 3 rehabilitation is underway and due for completion in July 2000.

  • ABB Alstom Power is to construct a 50 MWe cogeneration plant at a chemical complex in Kazincbarcika, northeast Hungary. The order was placed by Borsod Chem, MOL and Emasz, and also includes a 15-year service contract. ABB Alstom Power will supply two GT10 gas turbines, two waste heat boilers as well as back-up auxiliary boilers.

    News digest

    International:

    Romania and Yugoslavia have agreed to refurbish a 30 year old jointly operated hydropower plant on the Danube. The project will increase the output of the 2100 MW Portile de Fier I plant by ten per cent.

    Egypt:

    The Egyptian Electricity Authority and the New and Renewable Energy Authority have invited bids for an integrated solar combined cycle power plant. The project would incorporate 30 MW of solar thermal generation and a 120 MW natural gas fired unit.

    Ghana:

    Union Fenosa has signed an agreement with the Electricity Company of Ghana for jointly implementing an electricity supply improvement project in the industrial region of Tema. The $100m project will involve an 80 MW CHP facility, the upgrade of the area’s distribution grid and the installation of management systems.

    Lithuania:

    Data Systems and Solutions is to install a plant process computer system at the Ignalina Unit 2 nuclear power plant. The system will replace the existing Titan process computer, and will be the largest installation of its kind in the world.

    Nigeria:

    The government is planning to carry out in-depth regulatory reform studies for the electric power sector. The government has applied for a credit from the International Development Association for the work, which will include a review of existing legal and regulatory frameworks, design of new frameworks and third party access issues.

    Russia:

    US energy secretary Bill Richardson has unveiled a telecommunications link that will enable the US to monitor Russia’s nuclear power plants for Y2K problems. Russian and US nuclear experts at ‘crisis centres’ in Washington DC and Moscow on New Year’s Eve will communicate via a video and telecoms link.

    Turkey:

    Wärtsilä NSD has been awarded a contract to construct a 54.3 MW diesel power plant in Manisa. the plant will be the country’s largest diesel plant. W

    Ukraine:

    Unit 3 of the Chernobyl nuclear power plant has been restarted just five weeks before it was due to be shut down under a 1995 agreement between the G7 nations and Ukraine. The Ukraine government says it will not close the plant until it receives funding it was promised under the agreement for alternative power projects including K2R4 – two nuclear reactors. Funding for these projects remains uncertain.