Doosan in line for Subiya desalination

06 September 2002

South Korea's Doosan Heavy Industries & Construction Company has emerged as the frontrunner for the contract to build the first-phase of the Subiya desalination plant, following a recommendation from the Ministry of Electricity & Water (MEW - MEED 15:3:02; 8:3:02).

However, another South Korean contractor - Hyundai Engineering & Construction Company - has objected to the recommendation, stating that it was the low bidder for the engineering, procurement and construction (EPC) contract (MEED 28:6:02).

'The issue is under study at the CTC [Central Tenders Committee], which has sought clarifications from the MEW,' says a project source. The CTC was due to hold a second round of meetings with the MEW on 28 August.

Five groups of companies submitted two sets of prices by the late-June deadline, with a team of Hyundai Engineering & Construction, South Korea's Hyundai Heavy Industries Companyand Japan's Sasakura Engineering Companyoffering low bids for both options - a base price and an alternative offer.

The team quoted a base price of KD 76.7 million ($247 million), about 3.6 per cent lower than the next offer of KD 79.6 million ($256 million) offered by Doosan. For the alternative quote, the Hyundai team offered a price of KD 100.3 million ($323 million), some 8 per cent less than Doosan's quote of KD 109.8 million ($353 million).

The first-phase of the proposed Subiya desalination plant calls for the supply and installation of two 12.5 million-gallon-a-day units, with an option to add a further four units of the same capacity using multi-stage flash (MSF) technology. The facilities are expected to be commissioned in a little less than 30 months.

MEW is also preparing to receive bids on 21 September from consultants for a contract to carry out an engineering design review and supervise construction of the Subiya project.

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