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27 October 2004 - Work on Bahrain's first ever private power generation plant is to start by the end of the year, a ministry official has confirmed.
The BD190m ($504m) plant, being constructed in the industrial area of Hidd, will produce more than 950 MW of power per day, which will be made available to the Ministry of Electricity and Water.
The plant is being designed by the Beligian-Gulf consortium Tractebel EGI and Gulf Investment Corporation and will be operated by Bahrani company Al Ezzel Independent Power Producer (IPP).
The 470 MW first phase of the gas turbine plant is expected to be ready in April 2006, with full capacity to be reached by the middle of 2007.
The ministry official said the eventual 500 jobs created would not be at the expense of ministry staff jobs and that prices of electricity would be reasonable for consumers.
The current total production of electricity in Bahrain is 1800 MW while peak demand last summer reached 1535 MW.
The ministry official commented on future demand, "The production capacity will be enough to meet demand for two years though Bahrain may experience a power shortage by 2006. However, the situation will be eased when IPP comes on stream as part of the government's privatisation programme."
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