Hyundai recommended for Subiya EPC desal job

06 December 2002

The Central Tenders Committee (CTC) recommended in late November that the contract to build the first phase of the proposed Subiya desalination plant be awarded to a Korean/Japanese team comprising Hyundai Heavy Industries, Hyundai Engineering & Construction Companyand Sasakura Engineering Company (MEED 13:9:02; 28:6:02).

The CTC recommendation is the latest twist in the Subiya bidding process. Despite the Hyundai group being the original low bidder the client, the Ministry of Electricity & Water (MEW), had originally recommended the award of the engineering, procurement and construction (EPC) contract to South Korea's Doosan Heavy Industries & Construction Company, the second lowest bidder. Following the MEW recommendation, the CTC asked the Kuwait Society of Engineers to prepare a technical study on the bids submitted by the two groups (MEED 30:8:02).

Five groups of companies submitted two sets of prices by the end-June deadline, with the Hyundai/Sasakura team offering low bids for both options - a base price and an alternative offer.

The South Korean/Japanese team quoted a base price of KD 76.7 million ($247 million), about 3.6 per cent lower than Doosan's offer of KD 79.6 million ($256 million). 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 two units of the same capacity using multi-stage flash (MSF) technology. The units are expected to be commissioned in just under 30 months (MEED 15:3:02).

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