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AREVA's T&D division signs turnkey deal

JEDDAH — AREVA's Transmission and Distribution (T&D) division has signed a Euro 67-million turnkey agreement to build a high-voltage substation in Saudi Arabia for an Independent Water and Power Project (IWPP) led by the Shuqaiq Independent Water and Power Project (IWPP).

The contract was awarded by the project Engineering Procurement Contractor, Mitsubishi Heavy Industries, according to a statement issued by AREVA and made available to the Khaleej Times here.

The substation is scheduled for delivery by April 2009. "We were awarded this contract against fierce competition due to our optimal project delivery time, recognised reactivity and longstanding expertise," Michel Augonnet, Executive Vice-President of AREVA T&D's Systems Business Unit said in the statement.

The Jizan region in southern Saudi Arabia is undergoing considerable economic development resulting in an increased demand in electricity. To secure the region's supply, the government is boosting its generation capacity by building a new power plant and water desalination unit in Shuqaiq, near Jizan.

The statement explained that AREVA T&D's 400/132 kV substation will evacuate the plant's 850 megawatts of electricity onto the 400 kV transmission grid ensuring a steady flow of electricity to local industries.

Under the contract, AREVA T&D will also supply associated control and protection systems as well as engineering, erection and commissioning works.