Rising inflation forces contractors to shun major projects: Kuwait

Rising inflation forces contractors to shun major projects: Kuwait

A recent report by the MEED (Project Monitor in the region), expects scores of contracts worth billions of dollars to be re-floated in Kuwait, as a result of long delays and high inflation that forced companies to refuse to implement them, the situation that was brought about by the political stalemate and the Covid-19 epidemic, the contracts whose budgets were approved took up about three years to set the wheel moving from the bidding stage to the award stage, reports Al- Qabas daily. The MEED report said, with the awarding of these projects, many of the contracting companies that originally submitted bids refused to sign the contracts, considering that prices are no longer valid due to inflation, which will cause a wave of projects cancellations and resubmissions. A source in the contracting sector told MEED: “We had one infrastructure project that took three years to award.

Recently, when the state-owned company that submitted the contract contacted us, we had to tell them that we would not implement the project at the price we offered when submitting the bid.” The MEED report stated that importing steel from China has become difficult for companies operating in Kuwait, due to the disruptions associated with