ABB awarded $220 million

ABB has been awarded $220 million by the Gulf Cooperation Council Interconnection Authority for phase one of the Gulf Grid project, linking the electricity networks of six Gulf states.


ABB announced has won a contract worth $220 million from the Gulf Cooperation Council Interconnection Authority (GCCIA) for phase one of the Gulf Grid project, linking the electricity networks of six Gulf states.



The Gulf Grid is the biggest power transmission project to be announced anywhere in the world in 2005. It is ABB’s largest single order so far in 2005, and one of the largest substation orders ever won by the company.



The Gulf Grid project will be carried out in three phases. Phase one will link Saudi Arabia, Bahrain, Qatar and Kuwait. For this, ABB will deliver six turnkey 400-kilovolt (kV) gas-insulated substations, including gas-insulated switchgear, circuit breakers, transformers and shunt reactors as the main components.



ABB will be responsible for design and manufacturing of the equipment, system engineering, installation, commissioning and civil works. Work will start immediately, to be completed by January 2009. Phase two will link United Arab Emirates with Oman, and all states will be linked up in the final phase.



The power grid is expected to help GCC member states to exchange electricity to meet growing needs, utilise surplus output and ensure uninterrupted electricity supply. According to GCCIA the payback period for the investment of about $1 billion is less than four years.