Chinese Bid Aggressively For Port Contracts
In a surprisingly aggressive move, Chinese state companies have submitted the lowest bids for the construction of new ports in Haifa and Ashdod, Globes said on Monday.
The companies, operated by the Chinese Ministry of Transport, offered to build the South Port in Ashdod for NIS 3.3-3.4 billion and the Bay Port in Haifa for NIS 3.1-3.2 billion.
The official estimate for the projects issued by the Israel Ports Company is NIS 4 billion for each port, making the Chinese bid a potential saving of some NIS 1.5 billion.
Three consortia are competing for the tender: PMEC, on behalf of the the Chinese; a consortium made up of Shafir Civil and Marine Engineering and Ashtrom Properties; and a third one consisting of Solel Boneh of the Shikun & Binui Holdings and Ludreco, of the Belgian Jan De Nul group.
The bids were submitted last Thursday, after the technical bids were put in in February. The weighting for the financial component of the bid is 80% and for the technical component 20%. The threshold for the technical bids is 70 points out of a possible 100, so that the lowest financial bid will not necessarily win the tender if the gap between it and the next lowest bid is not great.
If one winner is selected for both ports, it will have the option of choosing to build just one of the two, and Israel Ports Company will offer the under bidder the opportunity to build the second port at a price comparable that of the winner. If the under bidder refuses, then the same offer will be made to the third bidder.
This article appeared in print on page 7 of edition of Hamodia.
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