Bid & Tender
Kuwait’s Projects Market Stands Strong with $28bn Awards in 2015

Date : Aug 25, 2015

Kuwait’s projects market received a KD5.2-billion ($17.1 billion) boost with the awarding of a new refinery and an airport terminal in recent weeks, bringing the total value of contracts awarded in 2015 to KD8.4 billion ($28 billion), a report said.

 

The total value of Kuwait’s projects market grew to more than KD71.3 billion ($235 billion) by the beginning of August, added the latest Economic Update from the National Bank of Kuwait (NBK).

 

In Oil & Gas sector, Kuwait National Petroleum Company (KNPC) officially awarded four out of the five packages of the New Refinery project at Al Zour. The bids were originally opened in March 2015 but because they came in at least 20 per cent over budget, KNPC had to apply for an increase in its budget.

 

KNPC secured approval to increase the project’s budget by an additional KD871 million ($2.87 billion), eventually paving the way for the project to be awarded to its original bidders.

 

Once completed, the new refinery at Al Zour is expected to be the largest of its kind in the Middle East. At 615,000 barrels per day (bpd), it would effectively double Kuwait’s refining capacity, from a current 730,000 bpd to 1.4 million bpd.

 

In July, Kuwait Oil Company (KOC) awarded a contract for a manifold gathering system. The KD222-million ($733 million) contract was awarded to UK-based Petrofac to develop a liquid transport system from a number of oil wells to gathering centres.

 

In Construction sector, the Ministry of Public Works (MPW) has tendered the New Maternity Hospital. Pizzarotti, an Italian firm, submitted the lowest bid of KD220 million ($728 million) for the project.

 

The South Mutlaa City project is Kuwait’s next major housing project (29,000 housing units), with infrastructure contracts scheduled to be awarded in January 2016. The Public Authority for Housing Welfare (PAHW) began plot distribution to citizens in August 2015, as part of efforts to make good on its promise to deliver 12,000 units in the city during the current fiscal year. The project is scheduled for completion in 2018.

 

In Power & Water sector, the Ministry of Electricity & Water (MEW) plans to set up two desalination plants at Doha to help increase water supply levels in Kuwait in the face of rising demand. In June, Spanish firm Abeinsa submitted the lowest bid of KD106 million ($351 million) for Phase One of the Doha Desalination Plant. The plant will have a capacity of 60 million gallons per day. The contract has not yet been awarded, according to the Update.

 

In June, the PAHW awarded a KD45 million ($148.6 million) contract to design and install 10 main transformer stations in the Wafra residential area.

 

In Transportation, the Central Tenders Committee (CTC) awarded the retendered new terminal building at Kuwait Airport on August 17. A joint venture of Turkey’s Limak and the local Kharafi National Company won the award with their lowest bid of KD1.32 billion ($4.36 billion).

 

The Directorate General for Civil Aviation (DGCA), responsible for the airport, is also moving ahead with other projects. The shortlist of qualified companies for the KD150-million ($495.3 million) passenger support building is due in October. The project is designed to be a “quick fix” to relieve traffic pressure on the existing terminal. The DGCA is also looking to tender the KD148-million ($488.7 million) runway and parallel taxiways package. The tender is due to be issued in the third quarter of 2015.

 

Among other contracts, the Ministry of Public Works has awarded local contractor Mushrif Trading & Contracting a KD82-million ($270.8 million) contract to develop a 40-km road linking Mina Abdulla to Wafra.