The Government of Gibraltar has awarded a contract for the construction of a new power plant to a joint venture between ETDE and Volker Stevin Construction Europe for £122.8m.
The Gibraltar Power System Expansion project involves building a new diesel power station at the Lathbury Barracks Parade Ground to replace its three existing power stations, Waterport Power Station, the MOD Power Station and the OESCO Power Station.
The new plant will initially contain eight Caterpillar Diesel Generating sets of 7.8MW unit capacity providing a total installed capacity of 62.4MW in 2013.
The project also has the provision for adding more engines in future to meet additional demand.
The construction contract will also cover work on a new fuel supply and storage facility, new power distribution centres, transmission cabling, supervisory control and data acquisition system.
The proposed plant completed an Environmental Impact Assessment study before the contract award.
Gibraltar Chief Minister Peter Caruana said that the power station will come online in summer 2013 and the government will invest in temporary additional power generation for bridging any power supply gap.