DONALD MCKENZIE

MONTREAL (CBC News) - Engineering and construction giant SNC-Lavalin Inc. (TSX:SNC) has won two contracts worth $1.3 billion to build and operate a gas-fired thermal power plant in Tipaza, Algeria.

Design work and construction for the new 1,227-megawatt plant, west of Algiers, will begin immediately and is intended to be completed in 2008. Once the work is done for the Canadian company's Algerian venture Shariket Kahraba Hadjret En Nouss SPA, the power plant will be operated by SNC-Lavalin and the electricity will be sold to government-owned Sonelgaz under a 20-year contract.

"The energy produced by this new power plant will represent about 20 per cent of Algeria's current energy supply, so the project is going to be an important additional driver of the country's economy," said Sami Bebawi, executive vice-president of Montreal-based SNC-Lavalin Group.

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Posted by rjorr at July 17, 2006 9:50 AM