Kuwait New Airport Project Bid Deadline Extended to July 22 as Bidders Quit stating stringent Conditions
Posted on 17th June 2014
The Kuwait Aviation Authority today announced that the bid for the project bid for the New Kuwait International Airport would be extended to July 22 from June 22. This follows the quitting of most bidders stating three stringent stipulations imposed by the Aviation authorities on the bid .
According to news reports, the new terminal is expected to boost the airport's capacity from its present eight million passengers per year to 13 million in the first stage, and thereafter to 25 million and 50 million passengers at later stages. The costs of the second airport terminal project have escalated to more than US$D 3.6 billion (KWD 1 billion) from its original estimated of US$ 3.2 billion (KWD 900 million), according to news reports. Against this cost, the first conditions stipulates that the contractor is required to invest at least 35 percent of the contract's value (US$ 1.26 billion (KWD 350 million)) in civilian projects under the offset program. The second condition adds that only one company must execute the project while the third condition stated that the contractor must pay a 5 percent guarantee as income tax on the project, 10 percent as offset guarantee and two other contracting fees, including project execution guarantee and a 10 percent advance payment fee. Due to these stringent conditions only six international companies bought the tender documents out of the 19 firms prequalified for the bid, according to reports.
The project which was designed by London-based architectural practice Foster + Partners was due to be launched in 2012, but postponed because of the stringent conditions among other reasons, according to the Ministry of Public Works.Back to all Construction News
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