For The Expansion Of The Subiya Site, 204.178 Million Dinars And €170 Million Have Been Approved

28 March 2024 Kuwait

The Ministry of Electricity, Water, and Renewable Energy has received approval from the Ministry of Finance to proceed with a tender aimed at enhancing electrical energy production at the Subiya Electric Power and Water Distillation Site. The tender encompasses the supply, installation, operation, and maintenance of gas turbine units operating on a combined cycle system, with the goal of reaching 900 megawatts in the initial phase.

Initially proposed at 257.558 million dinars, the tender amount was adjusted to 204.178 million dinars and 170 million euros following approval from the Audit Bureau, which scrutinized the tender papers.

This crucial project approval, based on a letter from the Central Agency for Public Tenders, received in mid-January, is poised to address the looming electrical energy shortage crisis in the forthcoming years.

In parallel, Minister of Electricity, Water, and Renewable Energy, Dr. Salem Al-Hajraf, has nullified Ministerial Resolution No. 26 of 2024, which established a committee to review accreditation applications for relevant companies and factories. The decision also revokes all qualification lists for contractors, suppliers, and subcontractors. Instead, the responsibility of selecting subcontractors falls on the main contractor, who is accountable to the ministry for any contractual violations.

Moreover, Minister Al-Hajraf's decision stipulates that contractor and company qualifications for projects governed by the Central Agency for Public Tenders law must align with the agency's standards. Additionally, projects under the ministry's internal purchasing committee will integrate the qualification process for contractors or suppliers into the proposal and technical specifications.

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