13 November 2004

DUBAI - Canada-based SNC Lavalin has been given the mandate for preparing the tender documents, tender evaluation and selection of the Phase I of the GCC Power Grid project. According to sources the tendering for parts of the projects is expected to begin early next month.

Meanwhile the new contract to SNC includes the option for supervision of construction by SNC. The company was involved in the project from the conceptualisation and feasibility study stage, as early as 1990s.

Earlier this year the Damam-based GCC Interconnection Authority (GCCIA) had appointed SNC to provide consultancy services to the project. The new mandate involves evaluation and selection of contractors for the $1.19 billion 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 power grids of UAE and Oman, is already in progress. The third phase involves the linking all these power grids is expected bring about huge power savings.

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

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

While the GCCIA sources have confirmed that the tender document preparations are moving ahead in full swing, the firms which are prequalified will get 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/equity package. Under the shareholding agreement Saudi Arabia will own 40 per cent, 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 first contracts are expected to be awarded by the end of the first half of 2005 with the first phase scheduled to be completed in early 2008.

BY A STAFF REPORTER

© Khaleej Times 2004