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18 July 2006 - SNC-Lavalin announced Monday that it has signed two contracts with Shariket Kahraba Hadjret En Nouss S.p.A. (S.K.H. S.p.A.) for a total value of CAN$1.3bn ($1.15bn) to provide engineering, procurement and construction (EPC contract), as well as operations and maintenance services (O & M contract), for a 1227 MW gas fired power plant in the province of Tipaza, Algeria.
"We are pleased to have won these contracts following a thorough bidding process," said Sami Bébawi, Executive Vice-President, SNC-Lavalin Group Inc., "so we are particularly pleased with this vote of confidence by the Algerian government in our technical and financial expertise and our experience in building thermal power plants in the region and worldwide."
S.K.H. S.p.A. is a newly established company 51 per cent owned by Algerian Utilities International Limited, and 49 per cent by three subsidiaries of the Government of Algeria: Sonatrach, Sonelgaz and Algerian Energy Company.
S.K.H. S.p.A. will be financed by an equity investment of CAN$300m by the owners, and by a non-recourse debt financing by Algerian banks. Algerian Utilities International Limited is 51 per cent owned by SNC-Lavalin and 49 per cent by Mubadala Development Company, the investment and development company wholly-owned by the Government of Abu Dhabi.
Design work and construction activities for the new power plant, located to the west of Algiers, will begin immediately. Once the EPC work is completed in 2008, the power plant will be operated by SNC-Lavalin and the electricity will be sold to Sonelgaz under a 20-year contract.
"The energy produced by this new power plant will represent about 20 per cent of Algeria's current energy supply, so the project is going to be an important additional driver of country's economy," added Mr. Bébawi.
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