Kuwait has signed a $2.5 billion contract

KUWAIT, Sept 14 Kuwait has signed a $2.5 billion contract with General Electric Co and Hyundai Heavy Industries to build and operate a power plant in the north of the country, state news agency reported.
The Subbiya power plant, which is expected to come on stream in the summer of 2011, will produce 2,000 megawatts, or 20 percent of the country's current power output, KUNA said on Monday, citing Kuwait's Minister of Electricity and Water Badr al-Shuraian.
Article Controls
"The contract includes importing and assembly of six gas turbines that will produce 1,320 megawatts in addition to six steam turbines generating 700 megawatts," al-Shuraian said.
Last month, Kuwait chose General Electric ( GE - news - people ) to build the Subbiya plant after it had the lowest bid for about 760 million dinars ($2.65 billion).
The U.S. giant beat other pre-qualified firms for the projects such as Germany's Siemens ( SI - news - people ), Japan's Mitsui & Co and Marubeni Corporation ( MARUY.PK - news - people ), Spain's Iberdrola ( IBDRF.PK - news - people ) Ingenieria Y Construccion, and Canada's SNC-Lavalin Limited.
In April, Kuwait issued a new tender to build turbines for the plant in the north of the country, saying it expected the cost to be far less than earlier estimates in excess of 700 million dinars.