Impregilo wins Iceland dam construction deal
Date: 10-Feb-03
Country: DENMARK
Landsvirkjun said in a statement the Italian company won a bid to build a dam and tunnels for a hydropower plant due to provide energy for a 322,000 tonne aluminium smelter that U.S. Alcoa (AA.N) plans to build in Eastern Iceland.
In December, Impregilo offered to build the utilities for 44 billion Icelandic crowns, but the amount had risen to 47,3 billion, Landsvirkjun said.
The state-owned electricity group said in December Impregilo's bid had been the lowest it received.
In the run-up to the opening of bids, four companies withdrew from the race - Swedish groups Skanska AB (SKAb.ST) and NCC AB (NCCb.ST), Norwegian company Veidekke (VEI.OL) and France's Vinci )SGEF.PA).
The power plant has caused one of the biggest environmental controversies in recent history in Iceland, because it requires that two of the country's largest glacial rivers be diverted into a reservoir in the Icelandic highlands.
Landsvirkjun is expected to sign final deals with both Impregilo and Alcoa regarding the power plant and aluminium smelter in March, after Iceland's parliament has approved of Alcoa's plans.
