Council reviews Kuwait airport award

28 April 2016

Turkish/local team submitted the lowest bid for Terminal 2 in August 2015

Kuwait’s Council of Ministers ?is now undertaking a review of the contract for Terminal 2 of Kuwait International Airport.

”It is now up to the Ministers’ Council to decide on the next step,” a source familiar with the project told MEED.

Previously the state’s independent Audit Bureau has rejected the contract. The decision was then left to Public Works Minister Ali al-Omair to select whether to return the contract for a second review to the Audit Bureau, or send the contract to the Ministers’ Council. 

Al-Omair is confirmed to have opted for the second option.

Local media reported on 24 April that a final decision was to be made during the cabinet meeting and alluded that the cabinet was expected to instruct the Public Works Ministry to award the contract to the low bidder, comprising a joint venture of Turkey’s Limak Holding and local Kharafi National.

However, it now appears that a final decision in terms of the award contract has yet to be made.

The Turkish/local joint venture submitted the lowest bid, at $4.3bn, for the construction of the new terminal in August 2015.

Several members of the Kuwait parliament have alleged the award process involved financial and administrative irregularities and threatened to subject Al-Omair, who was appointed to the post after the bids have been opened, to a parliamentary inquiry if the contract is awarded without a review.

The total investment required in developing Kuwait International is expected to reach $6bn. In addition to the new terminal, an estimated $3bn will be spent on widening runways, enhancing control tower facilities and building new cargo facilities.

 

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.