Greek power firm wins Deir Ammar tender

Contract signature needs more time

Greek energy company J&P Avax has won a tender for building a gas-operated power plant in the Deir Ammar facility. The company was announced as the temporary winner of the tender, according to a source from the Ministry of Energy and Water (MoEW). The bid results were announced on Thursday (February 21). Chinese company Sepco III came in second. The tender results are not yet final, according to the MoEW source: “It still has a long way to go and it could be two months before the contract is signed.”

The budget allocated for the project was around $500 million for a plant with an output of 450 MW. The winning bidder’s offer price was $472 million.

A previous tender for the same project was won by a consortium between Lebanese company Butec and Spanish firm Abener. The tender results were cancelled due to “insufficient funds” as per the MoEW. Abener-Butec had offered to build a 535 MW plant for $662 million. According to the Terms of Reference, the MoEW had the right to reduce the quantity of work by up to ten percent in order to reduce the price. Negotiation held between the MoEW and Abener to cut down the cost were futile.