Kuwait is set to achieve significant savings on major electricity infrastructure projects after revising tender conditions for the construction of 132kV main substations.
The changes are expected to save the country between KD16 million and KD20 million, equivalent to around Rs 550 crore, according to reports. The impact of the revised approach was reflected in a recent tender for the construction of 20 main substations in South Saad Al Abdullah City.
The lowest bid submitted for the project was around KD64.1 million. This represents a substantial reduction compared with similar projects in previous years. A comparable project in South Sabah Al Ahmad City cost KD87.6 million in 2024, while a similar project in 2025 was valued at KD85.9 million.
Compared with those projects, the latest tender could result in savings of up to around KD20 million. The reduction is particularly notable amid higher shipping and insurance costs linked to ongoing geopolitical and conflict-related disruptions affecting international trade routes.
Authorities attributed the lower cost primarily to the removal of unnecessary restrictions from the tender requirements, allowing a wider range of local and international companies to participate. Increased competition among bidders resulted in more competitive offers and helped bring down the overall project cost.
The Ministry of Electricity, Water and Renewable Energy and the Public Authority for Housing Welfare said the changes did not involve any compromise on project quality or safety standards.
The government is also expected to use the savings generated through the revised tender approach for other development projects, while continuing to focus on protecting public funds and maintaining required technical standards.
