WorleyParsons to oversee CEZ's Bulgaria gas plant

SOFIA, July 2 (Reuters) - Czech power utility CEZ (CEZPsp.PR) has contracted consultants WorleyParsons (WOR.AX) to oversee the construction of a new 880 megawatt gas-fired unit at its Varna plant in Bulgaria, WorleyParsons said on Thursday.

The new gas-fired plant, estimated to cost 800 million euros ($1.13 billion), is to replace three ageing coal-fired units at the Varna thermal power plant which should be closed by 2012 to meet stringent EU environmental norms.

"WorleyParsons will be responsible for the design, procurement, construction management, start-up and warrantee management of Bulgaria's first large-scale combined cycle," it said in a statement.

The value of the deal was not disclosed.

CEZ took over the 1,260 megawatt thermal power plant situated at the Black Sea city of Varna in 2006.

The utility has said that the company's management board is expected to give a final approval for the new unit in October.

Its construction is expected to start in 2011 and the plant should become operational by 2014.

The company is holding talks with Siemens (SIEGn.DE) and General Electric (GE.N) to supply it with gas turbines for the Varna plant as well as seven other gas projects CEZ was considering in Europe, CEZ has said. (Reporting by Tsvetelia Ilieva; editing by James Jukwey)