Introduction
Saudi Gulf News: Kuwait's Ministry of Electricity, Water, and Renewable Energy (MEWR) has started a mega plan to update its Subiya Power Plant. The scope of work is to modernize and rehabilitation of its 8 steam turbines.
Subiya Power Plant is not only fulfill Kuwait's electricity but also it works as desalination plant. The boiler's efficiency is very less with time, that's why this project is very important for energy security of Kuwait.
Project Financing and Tender's Details
Central Agency For Public Tenders (CAPT) is managing this tender. The total value of this project is $400 million (KWD 122 million). The closing date for tender was Feb 17, 2025. This is Engineering, Procurement, Construction (EPC) type project.
The competent contractors
Two big companies has submitted bids to get this project. The competition between these two companies is very interesting.
Al Ghanim International Kuwait is local Kuwaiti company. This company has submitted $398.5 million. The big advantage for this company is for its low bidding (L1). This company has already setup present in Subiya Power Plant because they are working in Phase 4 expansion and maintenance project. Operational charges are very less for being local.
Mitsubishi Power (Japan) is international giant and OEM (Original Equipment Manufacturer). It has submitted bid value $400.1 million. Mitsubishi has designed and install these boilers. They have already original drawings and technical specifications already. Their bid is bit expensive but it's technical expertise are advanced.
Technical and Financial Comparison
Feature | Alghanim International | Mitsubishi Power |
| Bid Rank | L1 (Lowest) | L2 (Second Lowest) |
| Price (KWD) | 121.9 Million | 122.3 Million |
| Technical Edge | Local logistics & manpower | Original Designer (OEM) |
| Experience | Strong local presence | Global expertise in power tech |
The Main Advantages of This Project
- The boiler operational life will extend for 20 to 25 years.
- Fuel consumption will be less and because new control systems and burners will be installed.
- These boilers will emit less carbon after modernization which will be a good step for environment.
- The electricity demand in Kuwait is at peak during summer season. The risk of loadshedding will be low with modern boiler.
More Work Activities Carried Out at Subiya Power Plant
Subiya power plant is now a construction hub. $1.69 billion dollar 900 MW new expansion is being carried out. TNB Remaco Company (Malaysia) and Al Ghanim International is working for daily maintenance work. The upgradation of water desalination plant is also being carried out so water supply should not be affected.
Next Phase
Now CAPT and Ministry is producing technical evaluation report. It is expected that "Letter of Intent" will be issued on May or June 2026 to winning contractor.
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