Lebanon Businessnews News

Power barge tender
to be re-launched
Ellieh: If the tender is rejected,

we will initiate a mutual agreement

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The Cabinet has referred the terms of reference for two additional power barges to the Department of Tenders, for the second time. Both barges are required to have the capacity to produce 425 megawatts.

The Department of Tenders will re-launch the tender once it receives instructions from the Cabinet. The tender will call for power plants that have the ability to produce 400 megawatts within three months, and an additional 400 megawatts over six months.

Jean Ellieh, Director General at the Department of Tenders, said: “We expect that the Ministry of Energy and Power has not fixed the gaps we have previously highlighted in the terms of reference.” The terms of reference are expected to be amended to allow more competitors to participate. “It is impossible to establish a power production plant in three months, unless the company already has an equipped plant or barge,” he said.

Ellieh said that if the tender is rejected again, the cabinet will have to initiate a mutual agreement with the only participating company.

Karadeniz is the only company to apply for the tender. By law, there should be at least two competing companies.

Karadeniz, a Turkish firm, is currently providing electricity through two power ships, Fatmagul and Orhan Bey.

The first tender launched saw approximately 50 companies purchase the terms of reference, and eight bidders participated in the tender. Only one was prequalified.
Reported by Rania Ghanem
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Date Posted: Sep 15, 2017