Middle-east Arab News Opinion | Asharq Al-awsat

Kuwait Signs $2.65 Bln Power Deal with GE, Hyundai - ASHARQ AL-AWSAT English Archive
Select Page

KUWAIT, (Reuters) – Kuwait has signed a $2.65 billion contract with General Electric Co and Hyundai Heavy Industries to build and operate a power plant in the north of the country, General Electric said.

The Subbiya power plant, expected to come on line in the summer of 2011, will have a capacity of 2,000 megawatts, GE said in a statement on Monday.

“It is an important step in our plans to boost power capacity to meet continuing demand, which is projected to grow at about 8 percent a year,” GE quoted Kuwait’s Minister of Electricity and Water Badr al-Shuraian as saying.

General Electric, which will supply equipment and services, has a $1.3 billion share in the contract, the statement said.

GE will supply six gas turbines and three steam turbines.

Hyundai will carry out the engineering, procurement and construction of the plant, it added.

The plant will come on line in two stages, the first in 2011 and generating 1,300 megawatts, and the second in 2012 generating 700 megawatts, it added.

Last month, Kuwait chose General Electric to build the Subbiya plant after it had the lowest bid for about 760 million dinars ($2.65 billion).

The U.S. giant beat other pre-qualified firms for the projects such as Germany’s Siemens, Japan’s Mitsui & Co and Marubeni Corp., Spain’s Iberdrola, and Canada’s SNC-Lavalin Limited.

In April, Kuwait issued a new tender to build turbines for the plant in the north of the country, saying it expected the cost to be far less than earlier estimates in excess of 700 million dinars.

Peak demand strains the capacity of the power grid in the desert state, where air-conditioning is widely used.

Kuwait, with one of the world’s highest per capita power consumption rates, has said it plans to boost power capacity to around 16,000 megawatts from 10,000 MW by 2012.

Asharq Al-Awsat

Asharq Al-Awsat

Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities. Launched in London in 1978, Asharq Al-Awsat has established itself as the decisive publication on pan-Arab and international affairs, offering its readers in-depth analysis and exclusive editorials, as well as the most comprehensive coverage of the entire Arab world.

More Posts

Follow Me:
FacebookGoogle PlusYouTube