11 February, 2019

Kuwait's Al-Ahmadi oil bunker project falters: report

KNPC may blacklist contractor

11 February 2019
A project to build 11 new bunkers for storing petroleum products at Kuwait's Al-Ahmadi Port has stalled due to the contractor's failure to complete it on time, a newspaper in the OPEC member reported on Monday.

The state-owned Kuwait National Petroleum Company (KNPC) awarded the 66.5 million Kuwaiti dinars ($220 million) contract to a foreign contractor in June 2014, the Arabic language daily Alanba said, citing informed sources.

The contract stipulated that the project should be completed within 36 months towards the end of October 2017 but it has yet to be finished, it said.

"KNPC is considering blacklisting this contracting company for one year because of its bad performance in executing this large project," the paper said without naming the contractor.

It did not name that firm but said it won the deal after submitting the lowest bid with a price of nearly 26 million dinars ($86 million) below the second lowest bidder.

The project involves the construction of 11 storage tanks and seven filling units with the aim of ensuring domestic fuel needs until 2023.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)


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