Initial work on Búdarháls Power Plant put out to tender
This week, Landsvirkjun will be advertising for bids for the initial construction project phase of Búdarháls Power Plant. This work is expected to be completed by 1 December 2010.
If negotiations for power sales and for financing the power plant are successful, its principal phases will be put out to tender later this year.
Hördur Arnarson, Landsvirkjun's Managing Director, presented the invitation to tender at a well-attended press conferece in Landsvirkjun's head office today. Also present was Minister of Industry Katrín Júlíusdóttir.
Hördur said that Landsvirkjun would be financing this summer's tendered work and that overseas loans would subsequently be needed for the actual power plant construction. He said he was highly optimistic that Landsvirkjun would be able to secure loans for the Búdarháls Power Plant as there is great interest in participating in investments with Landvirkjun as well as in lending the company funds for construction work.
A prerequisite for further invitations to tender, therefore, is the successful outcome of negotiations for energy sales and financing. Landsvirkjun is currently in negotiations with Alcan for energy sales from Búdarháls Power Plant and will not be holding talks with others for the time being. Various other organisations have shown an interest in the energy, including companies from sectors other than the aluminium industry.
Hördur declined to elaborate on Landsvirkjun's options in these matters as it would weaken the company's negotiating position.
Minister of Industry Katrín Júlíusdóttir and Hördur Arnarson, Managing Director of Landsvirkjun,
present the planned construction at Búdarháls Power Plant.