Samsung C&T emerges as lowest priced bidder
South Korea’s Samsung Construction & Trading (C&T) has emerged as the frontrunner to win a major civil works contract, ahead of Kuwait’s long-awaited Clean Fuels Project (CFP) tender.
Samsung’s price of KD38.3m ($136.4m) beat rival proposals from six other engineering and construction firms. Bids were submitted to state refiner Kuwait National Petroleum Company (KNPC) on 9 October, according to the Central Tenders Committee (CTC), which monitors major public tenders.
According to sources close to the project, Hyundai Engineering & Construction, also of South Korea, came in second place with a price of KD43.9m ($156.3m), 14 per cent higher than Samsung’s proposal. The highest bid came from Italy’s Saipem, which submitted a price of KD63m ($224.2m).
At least 12 firms had been prequalified to bid in May.
|Bidder||Price (KDm)||Price ($m)|
|Samsung C&T (South Korea)||38.3||136.4|
|Hyundai Engineering & Construction (South Korea)||43.9||156.3|
|Daewoo Engineering & Construction (South Korea)||50||178|
|SK Engineering and Construction (South Korea)||53.3||189.7|
|Daelim Industrial (South Korea)||57.2||203.6|
The project includes preparation works for the CFP, which will upgrade and expand the Mina al-Ahmadi and Mina Abdullah refineries, along with the retirement of the aging Shuaiba refinery.
The estimated $18bn megaproject, which will be tendered in three packages, will increase the processing capacity of the Mina al-Ahmadi and Mina Abdulla refineries to 800,000 barrels a day (b/d) from 736,000 b/d by 2017, following the retirement of processing facilities at the Shuaiba refinery.
Samsung C&T signed a KD15.6m ($55.5m) deal on 15 July with KNPC, to build a new tail gas treatment unit at the Mina al-Ahmadi refinery by the middle of 2014.
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