JEDDAH, 9 February 2005 — GCC countries have made remarkable headway in their plan to link them with a power grid as tenders will be invited next week to implement the $1.25 billion first phase of the project.
Dr. Saleh Al-Awaji, deputy minister for electricity affairs and chairman of the Gulf Cooperation Council Interconnection Authority (GCCIA), estimated the total cost of the project at over $3 billion. The authority will float 13 contracts worth $1.25 billion to link Saudi Arabia with Kuwait, Bahrain and Qatar in the first phase. Awaji said some 40 companies have been invited to present their offers to carry out the project.
Under the first phase, an 800-km 400KV overhead line will link Kuwait’s Al-Zour station with Doha and a 400KV submarine line will link Saudi Arabia with Bahrain. The 13 contracts include establishment of six transformer stations and a control center and setting up of a converter on the Saudi network.
Saudi Arabia will meet 40 percent of the first phase cost while Kuwait will provide 36.5 percent, Qatar 13.5 percent and Bahrain 10 percent. The second phase will link the United Arab Emirates with Oman. The resulting two mega grids will be joined in the final phase. The authority’s board of directors met last Saturday and approved the tenders for the first phase.
According to a report carried by Al-Eqtisadiah business daily, the authority will award the contracts for the first phase in the third quarter of this year.
GCCIA’s board has already awarded a contract to survey the submarine line between the Kingdom and Bahrain to a specialized company, the paper said.
The power grid is expected to boost electricity network in GCC member states. It will help them exchange electricity to meet growing needs, utilize their surplus output, save money spend on new power projects and ensure uninterrupted electricity supply.
The GCCIA has appointed Canada-based SNC Lavalin to prepare tender documents and tender evaluation and selection of contractors for the first phase.
The GCCIA has recently approved a list of contractors who pre-qualified for Phase I of the project. SNC has already started intimating these firms.
The GCC states began discussing the project some 20 years ago to integrate their transmission systems and make better use of their power-generating capacity.
