Kuwait to re-tender Subbiya power plant, costs reevaluated

Kuwait plans to issue a new tender to build a power plant in April, which it expects will now cost far less than earlier estimates, in excess of 700m dinars ($2.4bn), a government official said.

The six firms previously pre-qualified to bid to build the 2000 MW Subbiya plant will be invited to reapply, said a Ministry of Electricity and Water spokesman.

Bidders and the government have so far failed to reach a deal over shouldering the hedging risks for the plant, as banks showed little appetite for the transaction, which was offered in Kuwaiti dinars, sources familiar with the deal said. Wasmi said the quotation for the tender will be valued now as sixty per cent in international currencies such as the euro, yen or US dollar, with the remainder in dinars.

Initial bids for the plant, which is due to come on stream in 2011, ranged from 760.69m to 930.47m dinars, the ministry said in November. The six pre-qualifiers included Germany’s Siemens, US’s GE Energy, Japan’s Mitsui & Co and Marubeni Corporation, Spain’s Iberdrola Ingenieria Y Construccion, and Canada’s SNC-Lavalin Limited.

African Development Bank supports Egyptian supercritical coal plant

The African Development Bank has affirmed its support for the construction of a 1300 MW steam plant in Egypt by signing a $450m loan agreement, representing 22 per cent of the total project costs.

The other project investors are the Egyptian Electricity Holding Company (EEHC), the World Bank, the Arab Fund for Social and Economic Development and the Kuwait Fund for Arab Development.

The plant will be built near Ain Sokhna on the Gulf of Suez and will be the first Egyptian plant to use supercritical steam technology. EEHC has issued tenders for two 650 MW turbines and boilers for the project.

EnBW and Borusan plan Turkish power plant developments

German power and gas utility Energie Baden-Wàƒ¼rttemberg (EnBW) and Borusan Holdings have announced plans to collaborate in the development and construction of power plants in Turkey.

The companies signed a memorandum of understanding with a view to establishing a joint-venture company by the end of April 2009.The firms plan to cooperate in the addition of around 2000 MW of new electricity capacity over the next 12 years, mainly in the area of renewable energy. Borusan Energy already owns a project portfolio in the area of renewable energies which is to be incorporated into the partnership.

With 6m customers, EnBW is Germany’s third-largest energy supplier.

Abengoa team preferred for Masdar solar plant

A consortium of Spain’s Abengoa Solar and France’s Total have been named as preferred bidder for the Abu Dhabi Future Energy Company’s (Masdar) Shams 1 solar power plant.

Bids were requested for the construction of a 100 MW concentrating solar power plant under a 25-year, build-own-operate arrangement, in which the developer would erect at Madinat Zayed in the western part of Abu Dhabi.

The Abengoa JV submitted the lowest bid ahead of bids by Saudi Arabia’s Acwa Power Projects with Iberdrola of Spain; Man Ferrostaal with Solar Millennium and a Spanish consortium of Senor and Grupo Cobra.

Abengoa, which has businesses ranging from engineering to environmental services, is already present in the UAE through its IT solutions provider Telvent. Abengoa’s solar unit has projects in other areas of the Arab world including Algeria and Morocco, where it participates in two combined solar and gas power stations.

RAK emirate to build coal fired power plant

The UAE emirate of Ras al Khaimah plans to build a coal fired power station in the next two years.

The plant will be built in stages, starting with a 400-500 MW unit and expanded to 1000 MW over a five year period. It is the second coal fired plant to be proposed for the emirates, following DEWA’s decision to tender for a coal plant for Dubai.

The project is being planned by the government-owned RAK Minerals and Metals Investment Authority (RAKIA). The plant will need more than 7m tonnes of coal a year and between 35 to 50 per cent of the coal will be imported from an Indonesian coal mine venture owned by RAK Mineral and Investments.

Alstom to modernize African hydro plants

Alstom Hydro has signed two contracts valued at over €50m ($66.6) to rehabilitate hydroelectric power plants in the Congo and in Angola.

Alstom Hydro’s Grenoble (France) unit will complete an overhaul of the 260 MW N’SEKE plant for the public utility Société Nationale d’Electricité (SNEL).

Its Brazilian unit will handle the rehabilitation of main equipment for the 260 MW Cambambe hydropower plant for the Angolan public utility Empresa Nacional de Electricidade (ENE).


Kuwait: ABB has won a $400m order from the Electricity and Water Ministry for three new substations, including gas insulated switchgear, to boost grid voltage from 300 kV to 400 kV and help strengthen stability and reliability.

Russia: Sweden’s Alfa Lavel has won a further order for heat exchangers from a Russian power company, which brings total orders during 2008 up to SEK700m ($85.6m), mostly from the power industry.

Russia: Lower demand for electricity across Russia may mean that equipment for new planned nuclear power plants will be needed later than originally planned, according to Sergei Kiriyenko, head of state nuclear power firm, Rosatom.

Saudi Arabia: ABB has been awarded an order worth $18m to supply 380 kV gas insulated switchgear equipment for a new substation in the city of Mecca.

Saudi Arabia: GE Energy has signed a contract for around $1m to supply Saudi Electricity Company with more than 30 gas turbines for its planned 2000 MW PP10 power plant in Riyadh.

Saudi Arabia: The Saudi Arabian Mining Company (Maaden) has announced plans to re-tender for the construction of a reduced sized captive power plant at its planned integrated aluminium complex at Ras al-Zour, according to MEED.

South Africa: Alstom has signed a €125m ($162m) contract with state-owned utility Eskom, to retrofit the low-pressure turbines of two 970 MW units at Koeberg, South Africa’s sole nuclear power plant à‚— increasing the output by 65 MW and extending plant lifetime.

UAE: DEWA, the utility responsible for power and water in the emirate of Dubai, has commissioned two key 400 kV transmission substations. DEWA invested Dh1060m ($289m) in the two stations, which will provide a more stable power supply.

UAE: DEWA CEO Saeed Al Tayer says that the utility is currently working on projects worth Dh57m ($15.5m) and expects to increase installed capacity up to 7287 MW by the year end. The utility has however delayed its plan to build its P power and water plant by six months as demand has slowed due to economic conditions.

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