SNC-Lavalin to build 1227-MW plant in Algeria

SNC-Lavalin has signed contracts with an Algerian company to provide engineering, procurement and construction for a 1227-MW gas-fired thermal power plant in the province of Tipaza, Algeria. The Montreal-based engineering company is also to provide operation and maintenance services. The total value of the contracts is $1.3 billion.

Design work and construction on the new plant, which is west of Algiers, will begin immediately. Once completed in 2008, the plant will be operated by SNC-Lavalin and the electricity sold to Algerian energy company Sonelgaz. It will provide approximately 20% of the country’s energy supply.

SNC-Lavalin’s contracts are with Shariket Kahraba Hadjret En Nouss S.p.A. (S.K.H.), a newly established company that is owned 51% by Algerian Utilities International Limited. The latter is itself 51% owned by SNC-Lavalin and 49% by an arm of the government of Abu Dhabi.