Meed | Kuwait adjusts Al-Zour South contract value

Kuwait adjusts Al-Zour South contract value

26 August 2024

Kuwait's Central Agency for Public Tenders (Capt) has approved a request by the Ministry of Electricity, Water & Renewable Energy (MEWRE) to adjust the award amount for a key maintenance tender related to the Al-Zour South power generation and water distillation plant.

It is understood that the approved amendment reduces the tender amount from KD57.8m ($189.27m) to KD57.65m ($188.78m).

The contract involves maintenance works for the gas turbine and combined-cycle systems in the third phase of the Al-Zour South project.

According to a report citing Capt, the decision reflects ongoing efforts to optimise costs while ensuring the continued efficient operation of the power generation and water distillation facilities

In April this year, a consortium led by Japan’s Mitsubishi Power, part of Mitsubishi Heavy Industries, announced it had won a contract to rehabilitate eight units at the Al-Zour South power station.

The project includes the rehabilitation and upgrade of eight steam generator boilers and replacement of the control system for the boilers, steam turbines and auxiliaries.

Mitsubishi Power partnered with local contracting firm Heavy Engineering Industries & Shipbuilding (Heisco) to implement the contract.

“By replacing deteriorated boiler components with new and upgraded components and [undertaking] boiler operation optimisation with upgrading control systems and combustion systems, it is anticipated that this large-scale rehabilitation project will increase the boiler efficiency and lead to a reduction of greenhouse gas emissions,” the firm said in April.

The 2,400MW Al-Zour South power station was built in the mid-1980s.

Under the new contract, Mitsubishi Power will provide services for rehabilitating the steam units to improve operational reliability by overhauling deteriorated components and integrating a new distributed control system.

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Jennifer Aguinaldo