Contract awards are imminent for an estimated $500 million integrated steel venture in the mines and metals special economic zone in Bandar Abbas. The local Hormozgan Steel Complex (HSC)is the client on the large-scale project, which is being tendered in two packages, covering the construction of a direct reduction iron (DRI) plant and a slab and lime-calcining plant (MEED 12:4:02).
A total of seven groups of companies submitted bids by the March deadline to build the two units on a turnkey basis. HSC is now gearing up to announce before the end of July the winning bid for package 1, calling for the construction of a 1.65 million-tonne-a-year (t/y) DRI plant.
The four bidders for the DRI facility are: Italy's Danieli & Company, with the local Namvaran; Germany's Ferrostaalwith a local company identified as IPD, a Defence Ministry-affiliate; a team of Iran International Engineering Company (IRITEC)and Italy-registered Irasco, a subsidiary of IRITEC; and Germany-registered Mines & Metals Engineering (MME).
The bid evaluation is set to be concluded by September on the second package, which comprises a 1.5 million-t/y slab and lime-calcining plant. The evaluation process has been slightly delayed following HSC's request earlier this month for bidders to submit complementary documentation and revised bid prices by 24 July.
The companies that have submitted proposals are: Danieli & Company, with Namvaran; the local Industrial Development & Renovation Organisation, with Argentina's Techintand Japan's JP Steel Plantech; and Germany's SMS Demag, with IRITEC.
It is understood that at least one bidder withdrew from the tender on the grounds of unfavourable world market conditions and lack of domestic demand for HSC's products.
Bidders were required to submit their own financing proposals.
The HSC facility is set to receive feedstock from a new 4 million-t/y pelletising plant in Sirjan in Kerman province. Bids are now under evaluation at Gol-e Gohar Iron Ore Company, a subsidiary of the National Iranian Steel Company (Nisco -MEED 12:7:02).
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