Kuwaiti and Egyptian joint venture secures $1.1bn hospital deal

17 November 2009

Clinic is one of the largest construction projects in the emirate

A joint venture of Kuwait Arab Contractors Company and Egypt’s Arab Contractors (Osman Ahmed Osman & Company) has won the KD304m ($1.1bn) contract to build Jaber al-Ahmed al-Sabah Hospital in Surra, a district in Kuwait City.

The 1,050-bed hospital is one of the largest building projects in Kuwait.

In mid-September, MEED reported that Kuwait’s Central Tenders Committee had approved the award and this was final step before the Public Works Ministry could formally award the contract (MEED 17:9:09).

The tenders committee received bids from four groups in July.

The other three bidders were the local Combined Group Contracting Company with China Railway Construction Group Company; the local United Gulf Construction Company with China Gezhouba Water & Power (Group) Company; and the local Al-Hani Construction & Trading Company with Turkey’s Metag Insaat Ticaret (MEED 15:7:09).

The ministry originally tendered the contract in 2008.

At that time, a joint venture of South Korea’s Posco Engineering & Construction and the local Syed Hamid Behbehani & Sons submitted a low bid of KD319m.

The ministry approved the joint venture’s bid in February. However, the ministry decided to retender the contract after construction costs decreased significantly.

The local/US team of Gulf Consult and Langdon Wilson is the design consultant.

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