Filenews 25 March 2025 - by Chrysanthos Manoli
Imminently, it will be clear whether one or both companies that had submitted a bid to the EAC tender for the supply and installation of new generators at the Dhekelia station will file an appeal before the Tender Review Authority, against the decision of the EAC Board of Directors to cancel the tender and enter into a competitive dialogue with the companies that were interested.
Proposals for the supply of new gas turbines (for at least 80 megawatts) had been submitted by the Greek TERNA and the Greek Avax. TERNA proposed two Siemens gas turbines, for about €107 million. It also submitted an alternative proposal, for three gas turbines with a higher capacity (with a total capacity of just over 80 megawatts), General Electric, for €148 million. AVAX proposed Siemens gas turbines (the same model as those of TERNA), but for €137 million.
EAC considered the proposals to be economically unprofitable, while its legal advisor pointed out that there were technical discrepancies between the three proposals and the terms of the tender.
Under these circumstances, the Board of Directors of EAC decided that it could not award the tender to any of the companies. However, it also ruled that it could not go from the beginning to a new tender, as valuable time would be lost and the reinforcement of conventional electricity production would be delayed.
Finally, the Board of Directors of EAC decided, in consultation with the General Accounting Office – the competent authority for public procurement – to cancel the tender, but to make use of the provision of the legislation on public procurement, in order to invite the two initial bidders to enter into a dialogue, in order to remove the technical obstacles or even to offer new generators. under better economic conditions.
We are informed that EAC is now waiting to be informed on Wednesday or Thursday whether or not an appeal has been filed with the Tender Review Authority, for the annulment of its decision to cancel the tender. The chances of an appeal are limited, as with the EAC decision, the two bidders (who have a legitimate interest in filing an appeal) remain in the battle to claim the generators and even have the right to submit alternative proposals. For example, to offer generators from other manufacturers, perhaps even at lower prices and without the technical deviations pointed out by the Authority's legal advisor.
Therefore, the prevailing opinion in EAC is that there will be no appeal and that from Thursday or Friday the Authority will be able to invite the two contractors to a competitive dialogue, in the hope that it will be able to secure new gas turbines as soon as possible, to cover the adequacy and stability of the system in the summer of '26 or, Most likely, in '27.
