KUWAIT AIRSPACE SYSTEM PROJECT
Three international companies have submitted their proposals for the project to design, review and supervise the Kuwait Airspace System Plant (KASP). The client is the Ministry of Planning on behalf of the Directorate - General of Civil Aviation (DGCA). The award for the re-tendered project is expected by the middle of this year.
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Following are the companies who put in their bids:
1. Mott MacDonald, U.K. along with PCR, Australia.
2. Gulf Consult, Kuwait /Wilbur Smith Associates, USA along with Hill International,USA
3. Stanley Consultants, USA.
The estimated cost of the project is around $300 million. The scope includes rebuilding the existing system and upgrading to the international standards. The project envisages for installation of control systems, an approach radar system, a supervisory control and Data Acquisition (SCADA) system, a Meteorology Center and a Command Center.
KOREAN/ITALIAN JV EMERGES LOWEST FOR AROMATICS PROJECT
A Joint Venture of SK Engineering & Construction (Korea) and Tecnimont (Italy) has emerged as the lowest bidder for the Engineering, Procurement and Construction (EPC) contract for construction of the Aromatics Plant.
The Joint Venture has put in a bid of $1,295 Million, which is 6% lower than the second lowest bidder Technip, France, whose bid value was $1,381 Million. The only other bidder was GS Engineering & Construction, Korea, whose price was $1,471 Million.
The plant with a capacity of producing 770,000 tonnes a year (t/y) of Paraxylene and 330,000 t/y of Benzene will be located at Shuaiba. Kuwait National Petroleum Company (KNPC) will supply the plant with 2.5 million t/y of Naphtha feedstock. Flour Corporation (USA) have done the Front End Engineering and Design and will be providing the Project Management Services.
KNPC announces two Upgrade Projects
Kuwait National Petroleum Company (KNPC) has announced the following two tenders for upgrading their facilities in their three refineries. Both the tenders are Engineering, Procurement & Construction (EPC) Contracts:
1. Upgrading of Water Treatment facilities at the three refineries.
For the first project, the following ten international companies are pre-qualified to bid.
1. ABB, Europe
2. Daelim Industrial Company, Korea
3. Dragados, Spain
4. GS Engineering & Construction,Korea
5. Hyundai Engineering, Korea
6. JGC Corporation, Japan
7. Mustang Engineering, USA
8. SK Engineering & Construction,Korea
9. Snamprogetti, Italy
10. Techint, Italy.
The project cost is expected to be in the range of US$100-150 Million. The project is aimed at upgrading the facilities to meet the Government’s new environmental standards for water treatment and disposal facilities at the three refineries. The project also includes modernization of slug catchers, biological reactors, water pumps and associated equipment.
2. Rehabilitation of Boilers at the Shuaiba Refinery.
For this project, twenty international and local contractors as listed below are pre - qualified to bid. ARABI ENERTECH is one of them.
1. ABB, Europe
2. Alghannim International, Kuwait
3. Arabi Enertech, Kuwait
4. Chiyoda Corporation, Japan
5. Consolidated Contractors, Athens
6. Costain, United Kingdom
7. Daelim Industrial Company, Korea
8. Fluor Corporation, USA
9. Foster Wheeler, USA
10. GS Engineering & Construction,Korea
11. House of Trade & Contracting,Kuwait
12. Integral Services Company, Kuwait
13. KREMENCO, Kuwait
14. HIESCO, Kuwait
15. National Co for Mech.& Elec.,Kuwait
16. Petrofac International, UAE
17. SK Engineering & Construction,Korea
18. Snamprogetti, Italy
19. Sofresid, France
20. Technip, France
The estimated $ 40 Million contract aims to improve the operating conditions at the Shuaiba Refinery. The scope of work includes renovating and upgrading furnaces and boilers at the refinery. The date of manufacture of most of the existing equipment in the refinery are dating back to 1960s and all the equipment need to be brought up to meet the modern safety standards.
BOUBIYAN PROJECT – PRE-QUALIFICATION CLOSES
Fifteen international groups are understood to have been recommended for pre -qualification for the Phase I infrastructure package on the estimated $1,200 Million Boubiyan Port Project. The tender for the estimated $138-172 million Phase 1 package is expected in May 2005.
Following are companies qualified for this package:
1. Arab Contractors, Egypt.
2. Archirodon Const., Geneva/Acktor, Greece
3. Aegek General Construction Company / Efklidis, Greece
4. Bilfinger Berger, Germany
5. Bouygues, France
6. China Harbor Engineering Company,China
7. China Gezhouba Water & Power, China
8. Daelim Industrial Company, Korea
9. Gamuda Berhad, Malaysia
10. Hyundai Engineering, Korea
11. Ircon International, India
12. M.A.Khorafi, Kuwait
13. Nurol Group, Turkey
14. STFA, Turkey
15. Tekfen, Turkey.
The Phase I package includes transport access to the port and construction of a 34-kilometer-long bridge to connect the road to the mainland and about 4 million cubic meters of landfill and soil improvement works.
“DIZART” DISSOLVED!
The Divided Zone Agreements & Kuwaiti Islands & Mega Projects Development Team (DIZART) an agency sent up by the Government to oversee the multi-billion dollar development schemes of Failaka and Boubiyan Islands has been formally dissolved. The agency has been merged with the Ministry of Public Works.
The DIZART was established in 2002 as a special purpose vehicle by the Government.
It is not know why the Government has taken this decision – but it is understood that the delays and problems in the progress of the estimated $3,330 million Build-Operate-Transfer (BOT) development of Failaka Islands is a major reason.
It is also not know at this moment as to who will take over the control of the two mega projects of Failaka and Boubiyan Islands and other smaller projects at Al-Khiran and Sulaibikhat.
“GATE OF KUWAIT” BEING TENDERED
Tender documents are under preparation for the construction package of a major mixed-use tower development on the Al-sour Street. The tower named as “Gate of Kuwait” with an estimated cost of $172 million, is expected to be one of the tallest inhabited structures in the State with a height of up to 270 meters.
The client, AL-SHAYA GROUP, will be awarding the main construction contract by September 2005. Local contractors are expected to form Joint Ventures with international contractors for bidding for the project. The construction duration is expected to be two years.
The development, which is located at one of the gates to the Kuwait city’s old wall, will have a built-up area of 127,000 square meters. It will include a car park with for about 1,600 vehicles, a five-star luxury hotel, offices, a conference center and 5,000 square meters of retail space.
The scheme has been jointly designed by GLH Partnership of South Africa and KEO International Consultants, Kuwait.
OLEFINS II & AROMATICS MOVE AHEAD
Bidding is gathering pace on Kuwait’s two major petrochemical projects namely the estimated $2,000million Olefins II Complex and Aromatics Plant.
Equate Petrochemical Company, a joint venture of the state-owned Petrochemical Industries Company and Dow Chemical Company of USA, is looking after the development of the Olefins II Complex, through two separate project companies.
The complex is split into four main process packages.The Aromatics Plant is being developed separately by the Kuwait Aromatics Company (KARO), which is a Joint Venture of Petrochemical Industries Company and the recently incorporated public investment vehicle Al-Qurain Petrochemical Company.
Following are the four main process packages for Olefins II Complex:
1. ETHYLENE OXIDE/ETHYLENE GLYCOL (EO/EG) UNIT:
The tender for the EPC contract covering the construction of a 600,000t/y EO/EG Unit was issued in mid-April 2005. The bid closing date is 7th July 2005.
Following are the companies qualified for this package, with an estimated cost of $250 million:
- Foster Wheeler, USA
- Toyo Engineering, Japan
- Tecnimont, Italy
- GS Engineering, Korea
- Samsung Engineering, Korea
2. ETHANE CRACKER UNIT:
Technip, France and SK Engineering, Korea have submitted their bids in Mid-March for the 850,000 tonne-a-year (t/y) cracker. Technip, which is also the unit’s licensed technology provider, is understood to be the low bidder for the estimated $550 million EPC Contract. The contract is expected to be awarded in June 2005.
3. STYRENE UNIT:
Seven pre-qualified bidders will be submitting their bids on 24th June 2005 for the estimated $150 million EPC contract covering the construction of the unit, with a capacity of 450,000 t/y. Dow is providing the technology for the plant.
4. POLYETHYLENE (PE) UNIT:
The tender for the EPC contract for this unit with a capacity of 300,000 t/y is expected to be issued in the third quarter of the year. Snamprogetti of Italy is the technology provider, who will also participate in the bid.
For the AROMATICS COMPLEX, bids are due to be submitted on 17th April 2005 for the estimated $800 million EPC Contract. The plant will have a capacity of 770,000 t/y of paraxylene and 330,000 t/y of benzene. Following are companies pre - qualified to bid:
1. GS Engineering, Korea
2. Technip, France
3. SK Engineering / Technimont Joint Venture.
CHEVRON BAGS REFINERY TECHNOLOGY CONTRACT
The Chevron Texaco Corporation, USA has been selected as the Technology/License Provider for the Atmospheric Reside Desulphurization (ARDS) Unit for the planned fourth refinery in Kuwait.
The ARDS Contract is the first of several major technology awards planned for the 450,000 barrels-a-day refinery. Other packages include Licensing for the Crude Distillation Unit (CDU) and the Hydro - treater Simulators. Flour Corporation of USA is doing the Project Management and Front End Engineering and Design.
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