Kuwait may re-tender its first major solar power project in Dabdaba to secure lower prices from bidders after a setback in awarding the contract. The project will produce 1.5 GW of electricity, a newspaper in the OPEC member reported
The 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, the Arabic language daily Al-Rai said, quoting KNPC sources.
“KNPC is awaiting a 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 canceled altogether,” the report stated.
The report added that 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 Dabdaba project is part of government plans to tap renewable energy sources to expand their share of the energy mix to 15 percent by 2030 and has been on the cards for nearly two years.
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, Press reports said