Shariket Kahraba Hadjret En Nouss SpA

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In July 2006 the Algerian government awarded a twenty year build own and transfer (BOT) project for a 1277 MW gas-fired thermal power plant in the province of Tipasa to mixed company Shariket Kahraba Hadjret En Nouss S.p.A. (S.K.H. S.p.A.). Three separate contracts were awarded to S.K.H.: • An engineering, procurement and construction (EPC) contract. • An operations and maintenance services (O & M) contract. • A 20 year power purchasing agreement signed between S.K.H. and Sonelgaz, the state owned electricity distributor. S.K.H. S.p.A. was a special purpose company 51% owned by Algerian Utilities International Limited and 49% by three government owned enterprises: Sonatrach, Sonelgaz and Algerian Energy Company. Algerian Utilities International Limited was 51% owned by SNC-Lavalin and 49% by Mubadala Development Company, the investment and development company owned by the Government of Abu Dhabi. The contracts were awarded following a two year competitive tender, in which German company Siemens was the only other bidder. The SNC/Mudabala consortium was judged to have the better technical offer. Financial closure for the $1,150 million (1.3 billion Canadian dollars) plant was reached in November 2006. Some $265 million were provided in equity by the shareholders, with the rest being financed by loans from three Algerian banks: Banque Exterieure d'Algerie, the Banque Nationale d'Algerie, the Caisse Nationale d'Epargne et de Prevoyance and the Credit Populaire d'Algerie. The plant was expected to supply some 20% of Algeria’s energy. Construction was scheduled to begin in the second half of 2007, and the plant was to be operational by 2008. SNC Lavalin was to operate the plant for 20 years following its completion. The plant became operational in July 2009.