Algeria Awards Cegelec Contract for First Wind Farm

December 14, 2010

By Salah Slimani

Dec. 14 (Bloomberg) -- Algeria awarded a contract to build its first wind farm to the local unit of Cegelec SA, a French electrical engineering company.

Cegelec offered to invest 23 million euros ($31 million) in the project in 20 to 25 months, state utility Sonelgaz said in a statement distributed to reporters yesterday after the tender results.

Cegelec agreed to manufacture equipment locally and operate the farm, while Algerian companies will handle engineering work, equipment fitting and transportation, the Algiers-based company said. The wind farm will cover 30 hectares (74.1 acres) in Kabertene near the southwestern city of Adrar, according to Sonelgaz.

Algeria, a member of the Organization of Petroleum Exporting Countries, is seeking to diversify into renewable energy and decrease reliance on fossil fuel. The North African country plans to produce 5 percent of its electricity needs from solar energy by 2017, then-Oil Minister Chakib Khelil said in May. Algeria pumped 1.25 million barrels of crude per day in November, according to Bloomberg data.

French wind turbine manufacturer Vergnet SA said in February that it won the contract, worth 24 million euros, for a 10-megawatt wind park. Sonelgaz canceled the contract, seeking a cheaper bid, the Ennahar newspaper said today, citing Mohamed Arkab, the head of Sonelgaz’s engineering, electricity and gas unit.

--With assistance from Ola Galal in Cairo. Editors: Torrey Clark, Alex Devine

Source: Bloomberg Business Week.
Link: http://www.businessweek.com/news/2010-12-14/algeria-awards-cegelec-contract-for-first-wind-farm.html.