Revised prices have been opened by the Central Tenders Committee for the engineering, procurement and construction (EPC) package on the Shuaiba aromatics complex, planned by Kuwait Aromatics Company (Karo). Despite changes to the project's scope and a reduction in contractor risk, prices again came in well above the original budget of above $1,000 million (MEED 8:7:05). As in the original bid, the Italian/South Korean joint venture of Tecnimontand SK Engineering & Construction(SKEC)submitted the low bid in the repricing exercise, quoting $1,237 million, some $58 million below its initial offer. It is followed by GS Engineering & Construction, also of South Korea, with a revised price of $1,259 million, and Paris-based Technipat $1,291 million.
'The client now has to decide what to do with the contract,' says a local contractor. 'Either it goes ahead with the prices it now has, because it won't get anything cheaper in the current climate, or it cancels the project altogether.' The plant will have capacity of 770,000 tonnes a year (t/y) of paraxylene and 330,000 t/y of benzene. The facility's technology has been licensed from the US' UOP. The UK office of the US' Bechtelis the front-end engineering and design (FEED) and project management contractor. Karo is majority owned by the local Petrochemical Industries Company (PIC- MEED 22:4:05). Revised prices were also submitted to The Kuwait Styrene Company (TKSC)by South Korea's Daelim Industrial Company, US-based Shaw Internationaland a US/South Korean JV of Foster Wheelerand Hyundai Engineering & Construction Company- in mid-October for the EPC contract covering the 450,000-t/y styrene monomer plant at Shuaiba (MEED 21:10:05).
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