A consortium of Germany’s Siemens and Saudi Arabia’s Arabian Bemco Contracting is due to start infrastructure work on phase 1 of the Marib power station project,

following the official signing of the $159 million contract on 3 March during German Chancellor Gerhard Schroeder’s visit to the country.

The two companies are also preparing a financing proposal for the project’s second phase. The client is state-owned Public Electricity Corporation (PEC).

The engineering, procurement and construction (EPC) contract covers the construction of a 341.4-MW, single cycle plant at Marib, located about 200 kilometres east of Sanaa.

Under the deal, Siemens will install three SGT5-2000E gas turbines and instrumentation and controls systems and carry out overall project management. Bemco will provide the other mechanical and electrical equipment and undertake civils and installation works. Germany’s Lahmeyer International has the contract to supervise the construction of the power plant.

PEC last year selected Hyundai Engineering & Construction Company of South Korea for the EPC contract to build the project’s 200-kilometre, 400-kV

transmission line. Iran’s Parsian High Voltage Substations Development Company won the EPC package covering the construction of the project’s 400-kV and 132-kV gas-insulated switchgear (GIS) substations.

Marib phase 1 is being financed by the Saudi Fund for Development, Kuwait-based Arab Fund for Economic & Social Development (AFESD) and the government.

The phase 2 expansion was initially planned to be tendered this year as an independent power project (IPP), but PEC decided to approach Siemens/Bemco

directly to build the planned 340-400-MW power station after the team’s selection for phase 1. Sources close to the project say that different financing options are presently being drawn up. No timeframe for the completion of phase 2 has been set.