Forge Group awarded Rio Tinto power contract

THE BOURSE WHISPERER: CTEC Pty Ltd, a wholly-owned subsidiary of engineering, construction, maintenance and power generation services provider Forge Group (ASX: FGE) has received a Notice of Award from Rio Tinto (ASX:RIO).

The NOA is for an Engineering, Procurement and Construction (EPC) contract to deliver a Combined Cycle Gas Turbine (CCGT) Power Station at Cape Lambert in Western Australia’s Pilbara region.

The contract is valued at approximately $280 million and is CTEC’s second major project with Rio Tinto.

“In November 2011 CTEC was awarded the $150 million EPC Contract for the Open Cycle Gas Turbine Power Station Project in the East Pilbara,” Forge Group managing director David Simpson said in the company’s announcement to the Australian Securities Exchange.

“This Notice of Award further reinforces CTEC’s capacity in the region and Australia.

“Since acquiring CTEC in January this year, it has already made a substantial contribution to the [Forge] Group’s revenue.

“It has also opened up a new industry sector for other Forge subsidiaries, creating opportunities, particularly for Abesque and Cimeco to provide complementary engineering and civil, mechanical and electrical and instrumentation services to CTEC and its clients.”

The NOA is subject to the parties entering into an executed contract.

Engineering site access is targeted in October 2012, with main site access planned for March 2013, ready for project delivery early in 2015.