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19 September 2003 - Aker Kvaerner's North American Union Construction division, Kvaerner Songer, Inc., has signed a memorandum of understanding with Hitachi America, Ltd. to construct MidAmerican Energies 790 MW Council Bluffs Power Generations Unit located in Council Bluffs, Iowa.
Under this agreement, Kvaerner Songer and Hitachi America, Ltd. will work exclusively together to reach a final contract for site construction services valued at approximately $300m.
The project will be released to Kvaerner Songer in three phases: Civil, Turbine and Boiler. Kvaerner Songer will begin mobilizing onsite immediately to commence civil work under a full notice to proceed for the civil phase. The release of the Turbine and Boiler phases will occur sometime in the fourth quarter of 2003.
The overall construction programme is expected to be completed in early 2007. During the construction period, Kvaerner Songer will employ approximately eight hundred construction workers from the various Building Trade Unions to construct the Council Bluffs Power Generation Unit (CBEC 4).
Aker Kvaerner's President & CEO, Helge Lund, emphasized the importance of this major win for the Group which reflects the confidence the market has in Kvaerner Songer's ability to execute large and complex construction programs such as CBEC 4.
James H Miller, President of Kvaerner Songer, said "This is one of the largest coal fired generating power plants to be constructed in recent times in the North American Power Industry, and we are proud to be chosen as a key member of the CBEC 4 Team."
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