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GE Power Systems wins 23-year service contract for Umm Al Nar Power and Water plant in Abu Dhabi

Posted: 4 November 2003

Agreement worth more than US$200 million

GE Power Systems has signed a Contractual Service Agreement (CSA) with ITM Operation and Maintenance Company Limited (ITM O&M Co. Ltd.) for the Umm Al Nar Power and Water Plant in Abu Dhabi.

Valued at more than US$200 million, the agreement calls for GE to provide planned maintenance services for a period of up to 23 years for the five GE Frame 9FA gas turbines at the Umm Al Nar site.

Jointly owned by International Power PLC and Tokyo Electric Power Company (TEPCO), ITM O&M Co. Ltd. has been commissioned to operate and maintain the Umm Al Nar power plant which will begin commercial operations in 2005. The new plant is the first facility in the Gulf region to use GE’s Frame F turbine technology.

GE will provide performance guarantees regarding output, heat rate and planned outage duration for the Frame 9FA gas turbines throughout the term of the contract.

Jean-Claude Nasr, Region Leader for Contractual Services Sales, Africa, India and Middle East, said, “Under our CSA program, we identify and share common goals with our customers to optimise plant availability and overall plant performance and output, and promote maximum efficiency of the machines. We invest in technology to not only meet but to surpass expected maintenance levels, giving our customers higher availability, output and efficiency.

"Because we routinely maintain hundreds of turbines, our service teams can adopt procedures that have been successful elsewhere while our advanced monitoring and diagnostics tools identify trends and help reduce the risk of unplanned maintenance,” he added.

The service agreement will enable ITM O&M Co. Ltd. to take advantage of GE's innovative technology and broad experience in turbine technology, sophisticated maintenance procedures, and worldwide service network. The agreement provides a maintenance program customised to suit individual needs. In addition, the program includes all service, labour, parts, and repairs for planned and unplanned maintenance, along with performance guarantees tailored to the plant.

Jim Blair, Plant General Manager for ITM O&M Co. Ltd., said, ”For us, the benefits of this long-term maintenance agreement are two-fold: we can project our maintenance costs with a high degree of accuracy, and we can minimise the risk associated with the availability and parts life of the equipment installed.”

The Umm Al Nar power and water project, the largest of its kind in the Middle East with a total project cost of approximately US$2.1 billion, was recently acquired from Abu Dhabi Electricity and Water Authority (ADWEA). The existing plant will be expanded, increasing its power generation capacity from 850MW to 1,550MW, in addition to its desalination capacity.

About GE
GE has been active in the Gulf since 1933. Its activities in the region are conducted through direct presence, joint ventures, strategic alliances, and a wide network of distributors. GE has completed strategic projects in various hi-tech industrial sectors, defence-related contracts and major infrastructure developments.

GE (http://www.ge.com) is a diversified technology, manufacturing and services company based on more than a century of achievement and innovation. Today, it is the only company listed in the Dow Jones Industrial Index that was also included in the original listing of 1896. GE operates in more than 100 countries and employs more than 315,000 people worldwide.

GE Power Systems (www.gepower.com) is one of the world’s leading suppliers of power generation technology, energy services and management systems with 2002 revenues of nearly $23 billion. The business has the largest installed base of power generation equipment in the global energy industry. GE Power Systems provides equipment, service and management solutions across the power generation, oil and gas, distributed power and energy rental industries.

Posted by Richard Price, Editor Pipeline Magazine

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