Canceling the tender of the site preparation for Al Dabaa nuclear plant

Canceling the tender of the site preparation for Al Dabaa nuclear plant

The Russian company Rosatom, which is implementing the Al-Dabaa nuclear power plant in Egypt, has decided to cancel the tender for the site preparation, that it had called the local companies to bid for, in early May, to re-launch it later on.

The site tender is the second to be offered to the local companies after the tender for the protection of the site from groundwater, submitted by 5 local – global consortiums. The site preparation works include the technical studies and designs required for the construction of the site equipment and facilities, such as the construction of buildings for the workers and engineers who will be working in the plant later on, in addition to the concrete works, fences and other necessary works.

According to sources, the cancellation was due to the fact that the tender included a requirement that the financial offer for the tender does not exceed $ 18 million US (300 million pounds), and all companies’ offers were higher than the prescribed limit!

All competing companies assigned higher prices as a result of an increase in the prices of production inputs, taking into account reserves in case of fluctuating prices of cement or iron or other production inputs, which required the Russian company to cancel the tender to modify the terms and conditions or the maximum price limit.

The tender will be limited to local companies, with the possibility of partnering with a foreign partner, especially as it was agreed with the Russian side that the local participation rate will be 20% for units I and II of the station, and gradually increases to 35% with the fourth unit.

Russia’s Atomstroiexport, a subsidiary of Rosatom, is the main contractor for the nuclear project, which sets out the conditions for tenders, the study of offers, negotiations with the implementers, follow-up of implementation and receipt of implemented works.

Al Dabaa nuclear power plant, obtained site acceptance permit on March 10th 2019, from the Nuclear and Radiation Regulatory Authority.

Tags: Egypt,

About Author

Aasem Abuzeid

Aasem Abuzeid is the Director for MENA Region. Aasem acts as a leading marketer in the Arabic speaking countries. He is also the administrator and developer of NBN.Media.