Kuwait may reject $4.8bn airport expansion tenders
Public works committee suggests all bids be rejected and the tender process be reexamined
A tender committee in Kuwait's public works ministry has recommended that all bids to construct a new terminal at the country's international airport be rejected, state news agency KUNA reported on Sunday.
In November, the project was set to go ahead following a bid by Kuwait's largest contractor, Kharifa National, the lowest of all those submitted.
The team led by Kharifa National, and containing Limak Holdings of Turkey, had offered to do the work for $4.8bn, almost $1bn lower than the second lowest bid.
But KUNA quoted Kuwait's minister for electricity, water and public works, Abdulaziz al-Ibrahim, as saying on Sunday that a technical committee in the ministry had recommended all bids be rejected. Ibrahim did not give a reason for the recommendation, but said the committee had studied all aspects of the bidding.
Last Thursday, Kuwait's Al Watan newspaper quoted ministry sources as saying the lowest bid exceeded the estimated cost of the project by 39 percent, and did not meet technical specifications.
China State Construction Engineering Corporation (CSCEC), Abu Dhabi-based Arabtec Construction and Italy’s Astaldi SpA were also on the bidders list.
The new terminal will boost Kuwait airport’s annual handling capacity from eight million to 25m passengers.
Last month, the committee suggested the multi-billion dollar work package may this time exclude expensive infrastructure and construction works for other government departments to complete.