Bord Gáis has announced its appointment of a GE/GAMA consortium to build its new electricity power generation plant at Whitegate in Cork.

Construction is scheduled to start in October 2007, with up to 300 people to be employed locally during the project. The plant is expected to start operating in early 2010.

The proposed 440MW gas-fired combined-cycle plant, which will involve a total investment of around €400 million, will be located within the ConocoPhillips refinery site at Whitegate in east Cork.

The Engineering, Procurement and Construction (EPC) contract was awarded to GE/GAMA following a 10-month tendering process.

GE will provide the gas and steam turbines, generator, boiler and other key equipment.

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GAMA, an international contractor in fossil fuel projects, has extensive worldwide experience in major infrastructure projects, including power plant projects in Ireland.

Dave Kirwan, Head of Strategic Investments at Bord Gáis said: "The power plant project has reached a very significant stage with the awarding of the EPC contract. With GE/GAMA, we have a highly experienced and respected partnership and we're looking forward to seeing the project move from the planning phase to construction in a few months' time. We will now start meeting again with the local residents and businesses to discuss our construction plans and explain how we intend to manage the project so as to cause least possible disruption in the area."

Cork County Council has granted planning permission and arrangements for the electricity grid and gas pipeline connections are in place.

Bord Gáis entered the electricity supply business in 2001 and holds approximately 8% of the total Irish market.

The company's growth strategy will see it expand its electricity business in the coming years and this development in particular will support its ability to service its existing and future customers with a long-term source of competitive electricity. The company already serves almost 600,000 gas customers.

(LC/SP)