New tender for Deir Amar

Talks between Energy Ministry and Abener futile

Negotiations between Abener-Butec and the Ministry of Energy and Water (MoEW) over the Deir Amar power plant tender have hit a dead end. Talks were being led by the Spanish firm Abener. The MoEW is now seeking to rerun a tender for building a new generator at the Deir Amar power plant.

“The tender was awarded to Abener-Butec through a provisional attribution, a temporary commitment until the contract is signed,” said Nizar Younes, chairman of Butec.

According to the book of conditions, the MoEW had the right to reduce the quantity of work by up to ten percent in order to reduce the price. Talks had been focused on reducing the price below the original ceiling.

Younes said the problem was not about the funding, as the MoEW had earlier explained. “The offer Abener-Butec had made gave a really good price, even lower than what the ministry had expected,” said Younes. The consortium’s offer set the cost of producing one Kilowatt at $1,262 when using heavy fuel and $1,170 when using gas. Younes said the consortium’s offer also maintained high-quality implementation: “Our competitors were Indian, Turkish, and Chinese companies, our offer was the best, in terms of value and quality.”
The consortium plans to file for compensation from the government.