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India,Iraq : BGR energy cancels $246 MILLION power plant contract in IRAQ for AL NASIRIYA
Publish Date : 31-May-2016
BGR Energy Systems announced the termination of a $246 million order for the establishment of a 500 MW gas turbine power plant in Iraq for Al Nasiriya.
While filing at the BSE, the company stated that it has now signed a carryover contract worth $246 million from its order book."
It has entered into an Engineering Procurement Construction (EPC) contract on October 13, 2013 which was valued at $246 million for the Al Nasiriya 500 MW Gas Turbine Power Plant project with the Ministry of Electricity, Iraq (MoE).
As per the terms of the contract, the MoE has rendered a Letter of Credit for 50% of the contract value in favor of BGR Energy. It has also issued a performance bond equal to 5% of the contract price i.e. $12.30 million. The company was not able to proceed with the contract due to the unforeseen Force majeure circumstances like the terrorist taking over various parts of Iraq.
