Iraq could cancel Grand Faw contract
Transport Ministry at loggerheads with Archirodon over change of technical staff for deep water port project
Earlier this week, the Iraqi Transport Ministry warned that the Greek contractor set to construct the Grand Faw Port in Basra faced the cancellation of the contract over a violation of contract terms.
According to a report by Zawya, the ministry and the Archirodon Construction Company are at loggerheads over a staffing decision that the ministry believes violates the terms of the contract, explained Bankeen Rekani, technical deputy to the transport minister. There will be a re-evaluation of bids if the contract is cancelled, he added.
Archirodon had bid $204m for phase I of the project, which it will lose if it does not reverse the staffing decision, Rekani warned. Korea’s Jeongshin Engineering and Construction bid $206m. The two contractors were shortlisted from 16 bidders to build the deep-water port.
“The contract was supposed to be sent this week to the council of ministers for approval. But we were surprised when the Greek company changed its technical staff and violated the terms of the contract. This may give the Korean company a second chance to win the contract,” he told the newswire service.
The port is set to be developed in three phases, with Phase I set to include the construction of 11 quay walls and a breakwater for the port. Phase II will include the construction of 10 platforms, including eight container cranes. Phase III will include the construction of sidewalks, a report by Zawya Projects Monitor said.
The State Company for Iraqi Ports is the owner of the Grand Faw project, which is estimated to cost around $6bn. Located in Southern Basra, the project is finally resuming after numerous delays caused by Iraq’s international sanctions and war.
