Société tunisienne de l’éléctricité et de gaz (STEG) has awarded a €240 million contract for the construction of a new gas fired combined cycle power plant to a consortium consisting of Ansaldo Energia and SNC-Lavalin.

Under the engineering, procurement and construction (EPC) contract, the two companies will design and build the 420 MW Greenfield power plant in Sousse on the Bay of Hammamet. The deal also includes a 12-year long-term service agreement (LTSA).

Canada-based SNC-Lavalin will be responsible for the engineering and the balance of plant work, which includes construction of the power block, gas and water treatment facilities, compressed air works and installation of the power equipment. Italian firm Ansaldo Engeria will supply the equipment for the power block, and will be responsible for its maintenance for a period of 12 years.

Work on the new thermal power plant will begin before the end of the year, with completion expected 30 months later.