Investment in Hungary rises with new projects

Investment in Hungary rises with new projects

AES Corporation and PowerGen have awarded contracts for the construction of power generating capacity in Hungary. The contracts are worth $305.8m and represent 540 MWe of new capacity.

Foster Wheeler and TBV will supply a 150 MWe plant in Borsod, while an Austrian consortium will build the 390 MWe Csepel II plant near Budapest.

Foster Wheeler and TBV will construct the coal fired Borsod plant for AES Borsodi Aramtermelo, an AES subsidiary. Construction at the site, 150 km north of Budapest, will begin in October and will be complete in 2001.

The contract is part of AES` strategy to increase its investment in Hungary.

A consortium of VA-Tech, Elin Energieversorgung and Austrian Energy signed the contract for the Csepel II plant with Csepeli Aramtermeloe RT, a subsidiary of PowerGen. This gas fired combined cycle cogeneration plant will come on line in 2000.

Borsod will be situated next to, and will eventually replace, an existing coal plant owned by AES. Foster Wheeler will supply a circulating fluidized bed boiler and automation for the whole plant. Power will be exported to the Hungarian grid. TBV is a joint venture between Black & Veatch and British Tarmac Construction International.

AES acquired controlling stakes in three power plants and a coal mine in 1996. It has since invested $150m in Hungary, and is looking to invest up to a further $800m upgrading its Tisza II plant and building new capacity. The Hungarian national grid operator MVM will issue tenders next year for new projects.

Csepel II will supply Budapest with 390 MW of electricity and 125 MW of heat. Of the $140m contract, $112m will go to the Austrian consortium and the rest to General Electric.

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