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GE Energy Receives €635 Million (Nearly US$1B) Contract For Power Project To Help Meet Algeria’s Electricity Needs


New Plant to Boost Country’s Installed Capacity by 18 Percent

SCHENECTADY, N.Y. - June 2008 : – A new planned power plant featuring GE Energy’s F-class gas turbine technology will help meet the rapidly growing energy needs of eastern Algeria when it enters service at the end of 2011.

Algerian electric company Shariket Karhaba Koudiet Eddraouch Spa, owned by Sonelgaz and Sonatrach, has awarded a contract to GE and its consortium partner, the Spanish engineering firm Iberdrola Ingenieria y Construccion, for the construction of the Koudiet Eddraouch power plant in El-Tarf province, 700 kilometers east of Algiers.

GE’s contract is valued at approximately €635 million (nearly US$1B). Additionally, GE also is in the process of signing a contractual services agreement to provide maintenance and parts over 20 years.

The new facility is expected to produce 1,200 megawatts of power, which would increase Algeria’s current installed generation capacity by approximately 18 percent. As one of the largest combined-cycle power plants in the region, the project would help to meet Algeria’s electricity demand, which is growing at the rate of more than seven percent per year, according to the Commission of Electrical Regulation for Gas. Overall, GE has supplied approximately 70 percent of the gas turbines operating in Algeria.

“We’re very pleased that our technology has been selected for this project, which will play a significant role in meeting the future energy needs of Algeria,” said Ricardo Cordoba, president of GE Energy Western Europe and Northern Africa.

Sonelgaz Production de Electricite, Kahrama SpA and Shariket Kahraba Skikda are generating more than 7,900 megawatts of power. According to the Ministry of Energy and Mining, Algeria’s power requirements will reach 14,000 megawatts by 2010, as the country’s economy continues to grow.

“Today, Sonelgaz is pleased to announce the purchase of additional gas turbines and an agreement for a long term maintenance contract for its overall installed gas turbine fleet in Algeria. The benefits of this long term agreement include plants with better efficiency and reliability, controlled costs spending for the maintenance and is made possible due to the trust we have in our business relationship and in the latest technologies developed by GE,” said Mr. Douadji Kinane, CEO, Sonelgaz Manufacturing.

GE plans to manufacture the F-class gas turbines for the Koudiet Eddraouch at GE Energy’s facilities in Belfort, France. Previously, GE provided its F-class technology for the 1,227-megawatt Hadjret En-Nouss plant and the 800-megawatt Skikda project located in Algéria.

“This latest contract in Algeria illustrates our continued focus on meeting the global energy demand with leading technology solutions,” said Steve Bolze, president and CEO of GE Energy’s power generation business, based in Schenectady, N.Y. “Our highly efficient, F-Class gas turbines provide our customers a proven, highly reliable power generation platform.”

GE’s installed fleet of F-class gas turbines has surpassed 23 million hours of commercial operation worldwide, making GE the leader in advanced technology F-Class field experience.


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