Bids under study for BOT project

06 September 2002

Bids are under study at the Public Authority for Industry (PAI) for its first build-operate-transfer (BOT) project. Seven local companies submitted prices by the 20 August deadline (MEED 24:5:02).

Burhan Kuwait Trading & Contracting Company has submitted a low bid of KD 6.94 million ($22.3 million) for the contract. Its price is about 0.4 per cent lower than the next offer of KD 6.97 million ($22.4 million) , submitted by United Gulf Construction Company.

The project calls for the design, construction and maintenance of: 38 kilometres of roads, using at least 65,000 tonnes of asphalt and kerbstone; 12 kilometres of stormwater drainage; an 11-kilometre-long sanitary network; and a 14-kilometre water supply network. The project will provide facilities for 458 industrial plots and will take two years to complete.

The successful contractor will transfer the facilities to the PAI after five years. The terms of payment are as follows: 25 per cent of the total amount will be paid on completion of the project; and 25 per cent each at the end of the third, fourth and fifth year.

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