Koreans bid low for hospital work

31 July 2008
A joint venture of the South-Korean Posco Engineering & Construction with the local Syed Hamid Behbani & Sons is the low bidder for the Jaber al-Ahmed al-Sabah hospital in Kuwait.

The company bid KD319m ($1.2bn) for the work, which is almost double the original estimated cost of KD170m, making it one of the largest civil construction contracts awarded in the state.

Four other firms also submitted bids. In second place was the KD329m price submitted by the Chinese/local joint venture of China Gezhouba Water & Power and United Gulf Construction Company. The third bid, of KD300m, came from Egypt-based Arab Contractors (Osman Ahmed Osman) with Kuwait Arab Contractors.

The two other firms that bid are the China Railway Construction Company with the local Combined Group, and Turkey’s Metag Insaat Ticaret with the local Al-Hani Construction & Trading. Nine firms were prequalified for the work.

The hospital, which will have 1,050 beds and will be Kuwait’s largest single building, is in South Surra and will be completed in 2011 (MEED 24:2:08). Kuwait’s Public Works Ministry is the client. The local/US team of Gulf Consult and Langdon Wilson is the design consultant (MEED 10:3:08).

Because of concerns over the scope of the contract, particularly the supply of medical equipment to the hotel, the bid deadline for the hospital was extended three times. The original closing date was 27 May. It was pushed back to 29 June and the final bid deadline was 29 July (MEED 3:7:08).

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