Siemens signed €700 million worth of contracts to build power stations in Libya, which will boost the war-torn country's power generation capacity by approximately 1.3 gigawatts.
“Libya needs a reliable and affordable power supply to set the stage for a prosperous and promising future for the Libyan people,” said Joe Kaeser, president and chief executive of Siemens. “As a trusted partner, Siemens will provide Libya with innovative and sustainable infrastructure solutions that are essential for the economic development of the country and its people.”
The Munich-based firm signed the contract with the state-owned utility General Electricity Company of Libya and will build a 650 megawatts (MW) open cycle power plant in Misrata, equipped with two F-class gas turbines, and a 690MW open cycle power plant in Tripoli West, which will be powered with four E‑class gas turbines. Misrata is the third largest city in the North African country and was a frontline during the 2011 Libyan civil war that led to the fall of Muammar Qaddafi.
The total volume of engineering procurement and construction contracts, including long-term service agreements, is in the range of €700 million (Dh3.03 billion), the company said in a statement. Fayez Al Sarraj, chairman of the presidential council and prime minister of National Accord of Libya; Mohamed Siala, the Libyan foreign affairs minister; and Sigmar Gabriel, Germany's vice chancellor and federal minister of foreign affairs attended the signing ceremony in Berlin.
Siemens has been present in the Libya since 1950s. Around 30 per cent of Libya’s installed power generation capacity is based on Siemens technology that delivers electricity for two million people, according to Siemens’ power and gas division chief executive Willi Meixner.
“After completion, the power plants in Misrata and Tripoli West will help the country to solve the ongoing challenges caused by frequent and unpredictable power cuts,” he added.
The Libyan contracts come in the wake of a slowdown in German industrial giant’s power and gas business as the demand for larger electricity generation gas turbines has slumped globally. The company, which is reorganizing the power business last month announced plans to eliminate about 6,900 positions across the globe and close factories.