China's CHEC chosen for GBP-300m job on Wales tidal lagoon

The developer of the 320-MW Swansea Bay tidal lagoon project in Wales has picked China Harbour Engineering Co Ltd (CHEC) as preferred bidder for a GBP-300-million (USD 458.6m/EUR 412.5m) marine works contract.

The Chinese state-owned engineering company has plans to invest in other tidal lagoons in the UK and Europe and to collaborate with developer Tidal Lagoon Power Ltd on similar projects in China and across Asia. The parties will sign a memorandum of understanding (MoU) shortly, according to CHEC’s president and CEO, Lin Yi Chong.

CHEC has not yet invested in the Swansea Bay project, but has proposed to do so, Lin said in a press release on Wednesday. The company has already set up a UK subsidiary through which it will pursue local investment opportunities over the next decade.

As the preferred bidder for the marine works deal, CHEC will be in charge of building the six-mile (9.66-km) lagoon wall in Swansea Bay. More specifically, it will construct the bund wall and coffer dam, source and transport rock armour and materials to the site and manage all landside and marine crews associated with this element of the build.

The fixed-price contract, with a risk and value engineering scheme for the main marine work, will be inked later this year. Roughly half of its value will go for domestic workforce, local partners and a local supply chain.

This summer, the developer of the GBP-1-billion tidal power project will also launch a tender for the construction of a turbine assembly facility in Wales and for the lagoon’s public realm and buildings work, according to the statement.

Just last week, Tidal Lagoon Swansea Bay Plc announced that UK engineering company Laing O'Rourke has won a roughly GBP-200-million contract to build the turbine house and sluice gate structure for the project.

(GBP 1.0 = USD 1.529/EUR 1.374)

Choose your newsletter by Renewables Now. Join for free!