GCC Power Grid to begin $1.19b tender process

ABU DHABI, 13 Nov, 04 (WAM) - Canada-based SNC Lavalin has been giventhe mandate for preparing the tender documents, tender evaluation andselection of the Phase I of the GCC Power Grid project. According to sourcesthe tendering for parts of the projects is expected to begin early nextmonth.

Meanwhile the new contract to SNC includes the option for supervisionof construction by SNC. The company was involved in the project from theconceptualisation and feasibility study stage, as early as 1990s,according to a report in +Khaleej Times.+ Earlier this year the Damam-based GCC Interconnection Authority (GCCIA)had appointed SNC to provide consultancy services to the project. Thenew mandate involves evaluation and selection of contractors for the $1.19billion Phase I of the project that will link the power networks of Bahrain,Saudi Arabia, Kuwait and Qatar by the first quarter of 2008.

The second phase of the project, which involves the linking of powergrids of UAE and Oman, is already in progress. The third phase involvesthe linking all these power grids is expected bring about huge power savings.

The DCCIA had recently approved a list of contractors who were pre-qualifiedfor the phase I of the project. According to sources, SNC has alreadystarted intimating these firms.

Different modules of the Phase I project due for tender include the constructionof six 400-kv substations, for lots of 400-kv transmission lines, submarinecable network and a control centre.

While the GCCIA sources have confirmed that the tender document preparationsare moving ahead in full swing, the firms which are prequalified willget approximately 10 weeks to prepare present their proposals.

GCCIA will be responsible for the execution of contracts and payments.

The first phase of the project will be financed through 65:35 debt/equitypackage. Under the shareholding agreement Saudi Arabia will own 40 percent, Kuwait 33.8 per cent, Qatar 14.8 per cent and Bahrain 11.4 per cent.

While the tendering is expected to begin early next month, the firstcontracts are expected to be awarded by the end of the first half of 2005with the first phase scheduled to be completed in early 2008.