On 03 January 2017, ENKA entered into a consortium agreement with GE with a view to undertaking the works awarded by the Ministry of Electricity of Iraq under Contract No.1 dated 5 February 2017 – i.e., the Dhiqar 1×4 9E Combined Cycle Add-On Project.
The works, to be undertaken on an EPC basis, included the design, manufacture, delivery to site, erection, setting to work, commissioning, start up and testing of the Dhiqar Combined Cycle Power Plant. The gas turbines and generators and their off-base auxiliaries supplied by employer were to be installed and commissioned by the contractor (the GE-ENKA consortium) in simple-cycle mode and then converted to combined-cycle through the addition of a steam tail (the “Add-On”) and associated equipment. The power plant configuration was to be 4x4x1 and the plant was to be capable of operating on 3 different fuels, where natural gas (NG) is primary fuel; light distilled oil (LDO) and crude oil (CO) are back-up fuels. Fuel storage and treatment facilities for the liquid fuels were also included in the scope of the work. The gross output at ISO standard operating conditions was to be 750MW for NG and 730MW for CO and LDO.
Four frame-9E gas turbine generator sets (4X125MW) complete with auxiliaries purchased by the employer from the General Electric Company under the so-called Mega Deal Project in December 2008 were to be installed by the contractor as freely-issued equipment.
In summer 2018, in order to overcome financing and budget challenges, the employer requested that the project be implemented in 2 phases. Accordingly, a contract amendment was signed on 28 November 2018.
The first phase of the work broadly corresponds to the completion of the simple-cycle plant, including the 132kV AIS and 400kV GIS substations and common balance-of-plant of a size and capacity to accommodate the combined cycle operation. Phase 2 broadly corresponds to the completion of the combined cycle plant by adding on the necessary equipment.
Phase 1 is to have a duration of 647 days from the starting date achieved in March 2019, while Phase 2 is to take 1,020 days from the estimated starting date in the second quarter of 2019.
Phase 1 is financed by UK Export Finance (UKEF) and Phase 2 is to be financed by the Government of Iraq through a Trade Bank of Iraq (TBI) loan.
The Contractor supported the Employer with a view to achieving financial closure by the first quarter of 2019. In this context, an Environmental and Social Impact Assessment (ESIA) has been carried out by an international consultant engaged by the Contractor on behalf of the Employer to support the arrangement of export credit agency (ECA) financing for the project. The ESIA report was published on the UKEF website in October 2018 for public disclosure.
In early 2018, meanwhile, the parties reached agreement on the scope of the piling works. Accordingly, the starting date for these works was set at 20 January 2018. With the inclusion of the piling works among the works to be performed by ENKA, ENKA’s share in the consortium increased to 66% from the original 63%.
ENKA is to be responsible for the conceptual design and detailed design of the overall civil works, piling works and mechanical and electrical works for the balance-of-plant (BoP), the procurement, manufacture and delivery of the BoP equipment and the overall construction services, including overall civil works and piling works, the erection and installation of BoP and power block equipment, as well as the testing and commissioning activities required to achieve successful operation on a turn-key basis.
The power block equipment and main machinery sets such as HRSGs, diverter dampers, the STG, ACC, DCS and 132kV AIS and 400kV GIS substations, step-up transformers and auto-transformers, excluding the free issue equipment, are to be designed, procured, manufactured and transported to Iraq by GE. GE is also responsible for the testing and commissioning of equipment supplied by GE.
Phase 1 is forecast to be completed in December 2020. The forecast Phase 2 completion date is March 2022, assuming that Phase 2 financial closure is achieved by June 2019.
Dhi Qar 750 MW Combined Cycle Power Plant
Scope of Work