Shapoorji Pallonji bids low for Kuwait hospital project

20 November 2013

Health Ministry receives 9 bids to build annex to Al-Sabah hospital

India’s Shapoorji Pallonji, along with local partner Al-Sager General Trading & Contracting Company, has submitted the low bid for a contract to build an annex to Kuwait’s Al-Sabah hospital. The Health Ministry received a total of nine bids for the deal.

The package includes the construction, equipment and maintenance of a 600-bed medical tower as part of an extension to the existing hospital. The contractor will need to build operating rooms, a radiology centre, a helipad and associated facilities. A total of 24 firms were prequalified to bid on the project.

The companies that submitted bids are:

  • Shapoorji Pallonji/Al-Sager General Trading & Contracting Company – $631.3m 
  • China State Construction International Holdings (China)/Kuwait Dynamics Contracting (local) – $707.7m
  • Doosan Engineering Construction (South Korea)/Burhan International Construction Company (local) – $722m
  • Sayed Hamid Behbehani & Sons (local) – $747m
  • Mohammed Abdulmohsin al-Kharafi & Sons (local) – $806.6m
  • Alghanim International General Trading & Contracting Company (local) – $873m
  • Ozge & Limak (Turkey)/Bayan National Trading Company (local) – $917.1m 
  • Posco Engineering & Construction Company Limited (South Korea)/Combined Group Contracting Company (local) – $1,008m
  • Pizzarotti (Italy)/Associated Construction Company (local) – $1,268.9m

The scheme is part of a plan to expand nine hospitals to improve the provision of public health services in the country. The expansions will add 5,000 beds to the current capacity of Kuwait’s hospitals.

The first tender to be awarded was for the construction of a 240-bed expansion to the Al-Razi hospital. The local Alghanim International signed a $112m deal to perform the work in November 2012.

In May 2013, a joint venture led by Kuwait’s Associated Construction Company signed a $343m contract with the ministry to expand the Al-Amiri hospital, which will add 460 beds to the existing facility.

The following month, a joint venture of Metallurgical Corporation of China and the local Al-Tawbad General Trading and Contracting Company submitted a low bid of $184m for a deal to expand the Infectious Diseases Hospital in the Al-Asimah governorate.

In August, the local Burhan International Construction Company submitted the lowest bid of about $1.3bn for the contract to build a 1,157-bed expansion to the Jahra hospital.

The Health Ministry is currently seeking bids for a deal worth an estimated $700m involving the construction of a 637-bed annex to the Al-Adan hospital. The closing date for submitting the tender is 26 November.

The ministry is also seeking bids for a contract worth an estimated $1bn for the expansion of Farwaniya hospital. The project involves building a new 955-bed annex that will offer 30 emergency rooms and 27 operating rooms. Tenders must be submitted by 26 November.

A tender issued in 2012 for the expansion of the Kuwait Cancer Control Centre has yet to be awarded, while a plan to expand the Ibn Sina hospital as part of the programme is still in the design phase.

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