Uzbekistan to terminate contract on SCADA introduction with Chinese Alcatel-Lucent [Trend News Agency, Baku, Azerbaijan]By D.Azizov, Trend News Agency, Baku, AzerbaijanMcClatchy-Tribune Information Services
Aug. 29--Uzbekneftegaz National Holding Company will terminate a contract with Alcatel-Lucent Shanghai Bell Co. on introduction of management and technical communications SCADA (Supervisory Control and Data Acquisition) system at the gas transportation system of Uztransgaz, a source in the Uzbekneftegaz told Trend on Tuesday.
According to the source, the government gave the order to Uzbekneftegaz to terminate the contract.
"We didn't manage to reach an agreement with a Chinese partner Alcatel-Lucent, so the contract will be terminated by an international court," the source said.
Simultaneously, the government has ordered Uzbekneftegaz to find a new contractor and sign a contact with it on the project.
As previously reported, Uzbekneftegaz suspended the contract with Alcatel-Lucent Shanghai Bell Co. on introduction of SCADA system at the gas transportation system of Uzbekistan.
The contract between Uztransgaz (part of the Uzbekneftegaz) and Alcatel-Lucent Shanghai Bell Co was signed in mid-2010.
According to the contract, Alcatel-Lucent Shanghai Bell Co. was to carry out the design, procurement, construction and installation work, commissioning and commissioning on a "turnkey" facilities at gas transportation system worth $77.47 million.
The project was to be implemented over 18 months in four stages. The system had to be implemented at five sites of trunk pipelines with a total length of 1,728 kilometers.
The project worth $ 81 million planned to be funded by a loan from China's Exim Bank in the amount of $73.6 million and own funds of Uztransgaz.
Chinese Exim Bank loan was allocated to Uzbekistan in 2010 under the government guarantee.
Currently, only design and supply of process equipment has been carried out under the contract.
SCADA introduction project is included in the Republican investment program of Uzbekistan for 2012. Under this program, the project must be completed by the end of this year.
Uzbekistan ranks third in CIS in terms of natural gas production. Annually, the country produces more than 50 billion cubic meters of natural gas.
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