Fluor has announced that Arlington Valley Solar Energy II has awarded the company a lump-sum engineering, procurement and construction (EPC) contract, as well as a separate contract for ongoing operations and maintenance services (O&M) for its new nominal 125-megawatt solar photovoltaic (PV) facility located in Maricopa County, Arizona.

Fluor has received full notice to proceed and booked the undisclosed EPC project value into backlog in the fourth quarter of 2011.

"This significant new win for Fluor positions the company as a leader in the solar power engineering and construction industry," said Dave Dunning, president of Fluor's Power Group.

"We look forward to expanding our solar resume and delivering one of the world's largest solar PV projects for LS Power. Fluor's financial strength and backing for this project demonstrates our ability to bring a turnkey solution to our clients for their utility-scale solar developments."

The AVSE II project is located on approximately 1,160 acres with all of the major permits secured. This project will help meet the regional need for renewable energy and reduce dependence on fossil fuels.

The Arlington Valley Combined Cycle Facility is nearby, which was designed and constructed by Fluor in 2002. AVSE II has closed financing for the project and has executed the power purchase agreement for the entire power output from the facility.

"We are pleased to be working with a world-class EPC firm like Fluor for LS Power's largest solar project to date," said John King, executive vice president of LS Power.

"This project brings many benefits to the State of Arizona and Maricopa County, including construction and operations jobs with local business opportunities and longer-term benefits from tax revenues. The State of California will benefit from the green energy delivered from the project as well as the solar panel sales from a San Diego-based manufacturer for a portion of the project."

Engineering and procurement is under way from Fluor's Southern California operations center. The facility is expected to achieve full commercial operation by the end of 2013.

LS Power is a power generation and transmission group with a proven track record of successful development activities, operations management and commercial execution. LS Power has been involved in the development, construction or operations of more than 25,000 megawatts of power generation throughout the United States.