Joint venture bids low for Kuwait airport

03 August 2015

The $4.3bn bid is 6 per cent lower than offers submitted last year

  • Limak/Kharafi National joint venture submits low bid of $4.3bn
  • Other bidders are China State and Arabtec
  • Contractors submitted bids in November last year before contract was retendered

A joint venture of Turkey’s Limak and the local Kharafi National has submitted the low bid for the contract to build the new passenger terminal building at Kuwait International airport, with a price of KD1.312bn ($4.3bn).

The low bid is just 1.5 per cent lower than the second-lowest price of KD1.332bn submitted by Beijing-based China State Construction Engineering Corporation. UAE-based Arabtec is the other bidder, with a price of KD1.606.

The Kharafi National/Limak price is about 6 per cent lower than the $4.7bn offer the joint venture submitted in November 2014.

The Ministry of Public Works decided to retender the contract earlier this year after the low bid exceeded the estimated cost of the project by 39 per cent, as well as not meeting technical requirements, according to Kuwait’s Minister of Electricity, Water & Public Works Abdulaziz al-Ibrahim. He said on 8 February that a technical committee in the ministry had called for the bids to be rejected.

The total investment in developing Kuwait International airport 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.

Contractors have been prequalified for package three, which involves the construction of a runway, passage, aircraft hangars and roads. Firms have been invited to prequalify for the design, construction and operational maintenance of a passenger support terminal at the airport.

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