The Ministry of Electricity, Water and Renewable Energy, working with the Public Authority for Housing Welfare, has revised how it sets technical and qualification standards for tenders involving 132 kV main substations. The changes are designed to encourage more qualified local and international companies to bid on projects while keeping quality and safety requirements intact.
The revised approach is already showing results. Two new tenders have produced significantly lower bid prices, with potential savings between 16 million and 20 million dinars compared to earlier comparable projects.
Looking at the numbers tells the story. 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. The following year, 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. The lowest bid prices came in at approximately 64.1 million dinars—around 20 million dinars below the price indicators for the comparable earlier projects.
What makes this achievement notable is that these lower bids occurred despite higher costs for work, shipping, and insurance linked to the ongoing war. This suggests the savings came from increased competition rather than reduced project scope or quality.
The ministries emphasized that revising tender requirements does not compromise quality or safety standards. Instead, the goal is to balance strict technical requirements with the removal of unnecessary conditions that might prevent capable companies from participating. By creating a more competitive environment, the government can reduce costs on strategic power projects.
According to the ministries, this experience demonstrates the importance of managing project preparation carefully to protect public funds from the earliest stages. While final tender awards still require legal, technical, and financial review procedures, the initial price results indicate that fair and well-managed competition can reduce government project costs while maintaining quality standards. This approach allows savings to be redirected toward other development and public-service needs.
The revised tender process represents a shift toward efficiency without sacrificing the standards that ensure reliable power infrastructure.
Source: Times of Kuwait
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