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18 July 2003 - Canada's SNC-Lavalin Constructors International Inc. has been awarded two contracts by Shariket Kahraba Skikda S.p.a.; one, for nearly $600m, to design and build a 723 MW combined cycle thermal power plant in the Skikda region of Algeria, and the other to operate and maintain the plant, once it is built.
Three companies belonging to the Algerian Government own Shariket Kahraba Skikda: Sonatrach, Sonelgaz and the Algerian Energy Company.
"There is a demand for additional power generation in Algeria at the moment," said Sami Bébawi, Executive Vice-President, SNC-Lavalin Group Inc. "This plant will increase the country's current production capacity by over 10 per cent, while emitting less per unit greenhouse gases than existing facilities."
SNC-Lavalin will execute all engineering, procurement and construction (EPC) for the plant, which is expected to start immediately and be completed in approximately 32 months. SNC-Lavalin Capital Inc. has been mandated by SNC-Lavalin to structure financing for the EPC contract. Once construction is
finished, SNC-Lavalin will operate and maintain the plant for twelve years,
with the possibility of a further twelve year contract extension.
"We will be using advanced combined cycle technology in the plant's design and construction," said Tim O'Meara, Senior Vice-President and Project Executive. "Environmental concerns are also a top priority on projects of this kind, and we will ensure strict compliance with the environmental standards set by both the World Bank and the European Union."
The plant is the first to be built under new regulations designed to foster private investment in the power sector in Algeria. During the construction phase of the project, the share capital of Shariket Kahraba Skikda will be opened up for private investors, and SNC-Lavalin intends to subscribe to the project capital.
"We are pleased to participate in the emerging private power market in
Algeria" said Klaus Triendl, Executive Vice-President SNC-Lavalin Group Inc.
"We have been working in the country for 30 years, most recently on urgent
water projects, and we look forward to expanding our services to include the
power sector. Our local experience combined with our Thermal Power Group's
world-renowned expertise are a winning combination."
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