Kuwait tenders cut power project costs by up to 20 million dinars
- 20 substations in South Saad Al-Abdullah City received bids estimated at 64.1 million dinars.
- Wider competition was enabled by revising qualification and technical standards without compromising quality or safety.
- Lower project costs could improve public-spending efficiency and free funds for other development projects.
The Ministry of Electricity, Water and Renewable Energy, in coordination with the Public Authority for Housing Welfare, has revised technical and qualification standards for tenders involving 132 kV main substations to widen participation among qualified local and international companies while maintaining required quality and safety standards.
The approach has already produced lower bid prices. Initial results from two new tenders indicate potential savings of between 16 million and 20 million dinars, demonstrating the financial impact of expanding competition and removing unnecessary restrictions without lowering technical requirements.
Previous projects provide a comparison. In 2024, the Public Authority for Housing Welfare awarded two tenders for 20 substations in South Sabah Al-Ahmad City for approximately 87.6 million dinars. In 2025, two further tenders covering another 20 substations in the same city were awarded for about 85.9 million dinars.
On August 26, 2026, two new tenders closed for 20 main 132 kV substations in South Saad Al-Abdullah City. Following the opening of bids, the lowest prices were estimated at approximately 64.1 million dinars, around 20 million dinars below price indicators for comparable earlier projects.
The lower bids came despite higher costs for work, shipping and insurance linked to the repercussions of the ongoing war. The results therefore point to the potential for substantial savings through stronger competition combined with carefully designed qualification and technical standards.
The ministries stressed that revising tender requirements does not mean compromising quality or safety. Instead, the aim is to balance strict technical standards with the removal of unnecessary conditions that could limit participation by capable companies, creating a more competitive environment for strategic power projects.
The experience highlights the importance of protecting public funds from the earliest stages of project preparation. While final tender awards remain subject to legal, technical and financial procedures, the initial price results suggest that fair and well-managed competition can reduce government project costs while preserving quality, allowing savings to be redirected toward other development and public-service needs.
