A leading engineering, procurement and construction (EPC) group based in Greece says it has signed a US$380 million contract with the interim Libyan authorities to construct a power plant in Tobruk.

But Athens-based METKA group says it will not go ahead with the work until it has all the formal approvals and a letter of credit (L/C) to guarantee it is paid for the work.

L/C requirement

The Greek EPC group has signed the contract with the east Libya-based General Authority for Electricity and Renewable Energy to construct the power plant in Tobruk according to a METKA statement.

It added that the contract is subject to final approval from the interim government, and will only become effective upon opening of an irrevocable L/C confirmed by a first class international bank.

Project details

The project, with total output of more than 500 megawatts, includes the supply and installation of three gas turbines along with associated plant and equipment, including a new substation.

Unrest in Libya over several years has left the country with a chronic power shortage and most of the country's cities and towns experience blackouts lasting for several hours on a daily basis.

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