Libya industry: Doosan wins boiler contracts for for two power stations
01/16/2008 04:09:15 PM EST
EIU ViewsWire Libya
COUNTRY BRIEFING
FROM THE ECONOMIST INTELLIGENCE UNIT
Doosan Heavy Industries announced in late December that it had won two contracts from the state-owned General Electricity Company of Libya (Gecol). The contracts are for the engineering, production, installation and testing of boilers for two power stations, each comprising four 350-mw oil-fired units. The first award was for the Al Khalij plant, near Sirte, (sometimes referred to as Gulf Steam), and was valued at US$270m. The second contract involves the Tripoli West Power Plant; the order was worth US$260m. Both projects are scheduled for completion by the end of 2011. They have been under negotiation for several years, but have made rpaid progress in recent months following the allocation of US$2bn in power sector financing to Gecol by the central government (BME Aug 1st-31st, 2007).
In addition to the Doosan deals, Areva Transmission and Distribution of France said in mid-December that it had won three contracts for upgrading the power network in Libya. Under one deal, Areva is to build ten substations in Tripoli, Misurata and Benghazi. A second agreement calls for two substations in the Sebha and Tobruk areas. Finally, Areva is to supply 69 transformers to Gecol under the third contract. The total value of the deals is put at US$300m.
These projects are part of a wider programme to increase capacity and upgrade systems within the Libyan electricity sector. Omran Abu Kraa, the minister of electricity (and former head of Gecol), has said that the government aims to increase capacity by 7,000 mw to reach some 12,000 mw over the next five years, and the two Doosan projects alone will add some 2,800 mw. Plans also call for the expansion of existing power plants, and, more controversially, the creation of a civil nuclear programme aimed at electricity production.
SOURCE: Business Middle East
Copyright © 2008 Economist Intelligence Unit
Source:
Economist intelligence Unit
