Tenders committee to question contractors over $650m deal

13 December 2007

Kuwait’s Central Tenders Committee is to question three companies that have bid for a contract worth more than $650m.

The committee’s decision is unusual because the low bidder in Kuwait is nearly always awarded the contract.

Italy’s Snamprogetti, UAE-based Petrofac and SK Engineering & Construction from South Korea will be asked to examine their bids with the committee, which is the ultimate decision-making body for large public-sector contracts in the state.

Snamprogetti was low bidder for the contract when bids were submitted in early November, with an offer of KD179m ($649m).

The Milan-based contractor's bid was 11 per cent lower than the second-best price of KD201m ($726m) submitted by Petrofac International.

SK’s offer was KD204m (MEED 9:11:07).

The lump-sum engineering, procurement and construction contract covers the construction of a new booster station in southeast Kuwait, consisting of two identical single-stage compression trains, delivering 249 million cubic feet a day of sour gas.

The client is Kuwait Oil Company.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.