PROJECTS: Kuwait may re-tender Dabdaba solar project: report

Cancellation of the project is also being considered

  
Image used for illustrative purpose. KNPC has pre-qualified 28 global firms to bid for the 1.5-GW Dabdaba solar project.

Image used for illustrative purpose. KNPC has pre-qualified 28 global firms to bid for the 1.5-GW Dabdaba solar project.

Getty Images/Christy Strever / EyeEm

Kuwait could re-tender its first major solar power project in Dabdaba to secure lower prices from bidders after a long delay in awarding the contract, a newspaper in the OPEC member reported on Sunday.

The state-owned Kuwait National Petroleum Company (KNPC), which oversees the project, is still awaiting government response on whether to re-tender or award the project to the contractor with the lowest bid of 439 million Kuwaiti dinars ($1.4 billion), the Arabic language daily Al-Rai said, quoting KNPC sources.

Bidding for the project has been extended many times since 2019 and bank guarantees offered by the four shortlisted bidders expire in mid-July, the report said.

"KNPC is awaiting response from the government after a long delay in the execution of this vital project...it could either award it to the lowest bidder or re-tender it to save funds given technological advancements in this industry...there is also a possibility the project could be cancelled altogether," it added.

Dabdaba project has been on the cards for nearly two years but it has been help up for budgeting and technical reasons.

The facility will produce 1.5 GW of electricity and is part of government plans to tap renewable energy sources to expand their share of the energy mix to 15 percent by 2030.

Press reports said early this year KNPC is planning to borrow around $1.1 billion from banks to fund the project while it would contribute 30 percent of its costs.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

#Kuwait #KuwaitNationalPetroleumCompany(KNPC) #Dabdaba #Renewableenergy

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2020