01 August 2002

Kuwait has issued tenders for the largest portion of a KD115.7 million ($382 million) water distribution project.

The latest phase, C3, is the largest of the four stages of the Subiya Water Distribution Scheme with some KD42.5 million earmarked for this phase, executives said. The closing date for the tender is August 27. It involves laying two 55-km fresh water pipelines, a 55-km brackish water pipeline and related work between Subiya and Mutla High water distribution complexes (WDC).

Nine firms were prequalified to meet the tender using ductile iron pipes, from Egypt, Lebanon, Turkey as well as the insolvent German firm Philipp Holzmann AG which has an international arm active in Kuwaiti projects. South Korea's largest builder Hyundai Engineering and Daewoo Engineering are also on the list.

Another 10 firms were among those prequalified to do the work using steel pipes. They include an alliance between regional giant Kuwait's Kharafi group and Kellogg Brown & Root of the US. Other major multinationals on the list, such as Technip Germany and Hyundai Engineering, also formed alliances with local firms included.

Meanwhile, Shaheen Al Ghanim is reported to have submitted the lowest bid of KD7.9 million for C4 tender for a pipeline from Mutla WDC to West Funatees WDC, extending 59 km. Kharafi Construction, a subsidiary of the Kharafi group, submitted the second lowest bid at KD8.4 million. Kuwait Central Tender Committee laws favour lowest bidders for government contracts.

In May, Kuwait issued an invitation to tender for the C1 phase of the project for a water storage and distribution complex. Some KD42 million were budgeted for the C1 tender competition, which closes on August 4 to build a water treatment and pumping station and related distribution pipelines. Earlier in May, the C2 phase worth some KD13.7 million was launched to link a proposed water desalination plant at Subiya to a main distribution centre.

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