IBERDROLA Ingeniería has won a contract worth about €330 million to build a combined cycle power plant (CCPP) with installed capacity of 440 megawatts in Lithuania. The plant will be located in the city of Elektrenai, 40 kilometres from the capital Vilnius, and is due to come on stream in the second half of 2012.
Now one of the world’s leading energy engineering companies, the IBERDROLA Group subsidiary beat out competition from Germany’s Siemens, Alstom of France and Canada’s SNC Lavalin in an international tender held by the state-owned company AB Lietuvos Elecktrine last September.
The construction of the Elektranai CCPP is strategic for Lithuania, as it guarantees the security of supply. The country is currently in the midst of upgrading its generation facilities following the closure at the end of last year of the Ignalina nuclear plant, which had installed capacity of 3,000 MW.
The contract won by IBERDROLA Ingeniería is the largest ever obtained by a Spanish company using funding from the European Bank for Reconstruction and Development (EBRD).
The deal bolsters IBERDROLA Ingeniería’s position in the Baltic energy market, where it commissioned another CCPP with installed capacity of 420 MW in January in the Latvian capital Riga. The plant, which boasts a state-of-the art design and cutting edge features, is equipped with a district heating system, enabling it to provide heating and hot water to the southern part of the city of Riga, with a population of over 700,000.
The Riga facility was the first turnkey combined-cycle plant put into service by IBERDROLA Ingeniería abroad and marks a major milestone in the company’s international expansion strategy. In addition, the IOMSA generation subsidiary will be in charge of the supervision and maintenance of the plant for 12 years.
Combined cycle powers plants across the globe
The new plant to be built by IBERDROLA Ingeniería in Lithuania comes in addition to other power plants being developed in varies countries around the world, such as in Ekaterinburg in Russia, Mesaieed in Qatar, Fujairah in the United Arab Emirates, Koudiet in Algeria and Kuraymat in Egypt.
Winning this contract is further proof of the company’s technological and logistical excellence. This IBERDROLA subsidiary has become the group’s technology cornerstone, a differentiating factor that has put the company at the forefront of innovation in the international energy sector.
Created in 1995 to group together and strengthen IBERDROLA's engineering and construction activities, the subsidiary has seen enormous changes: its workforce has grown twelve-fold to 2,400 (of whom 83% hold five- or three-year degrees and 30% are women); output has increased 4.5 times over the last five years; the company's project pipeline has quadrupled and today its EBITDA is 3.2 times greater than when it was set up.
The company currently has projects in 25 countries, driving development as it opens new markets while clearly demonstrating the key role of international expansion in IBERDROLA's strategy. In fact, contracts outside Spain accounted for 90% of its €2.3 billion project pipeline at the close of 2008.
Furthermore, the company no longer provides services only to IBERDROLA and its subsidiaries; today around 80% of sales are to non-group companies.
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