Why delay in projects?

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SAB queries KPC top notch

KUWAIT CITY, Oct 18: The State Audit Bureau (SAB) has asked the Supreme Procurement Committee at Kuwait Petroleum Corporation (KPC), which is in charge of approving tenders and projects before submission to the Central Agency for Public Tenders (CAPT), to study reasons behind the delayed implementation of major projects in some oil companies and the consequences thereof; in addition to taking the necessary measures to avoid such delays, reports Al-Rai daily. In its report, SAB attributed the delay and the failure to benefit from these major projects to shortcomings and lack of integration in the preparation of studies.

The bureau pointed out this led to several change orders, reluctance of some contractors to work on the projects, and many claims from contractors due to the weakness of oversight on the performance of contractors and failure to collect fines for the delay. The bureau also cited the poor performance and lack of commitment of some main contractors and subcontractors, leading to many change orders as well.

The report revealed that Kuwait National Petroleum Company (KNPC) incurred losses amounting to $12.83 million due to lower production in its refineries and gas liquefaction plant – about 93.345 metric tons in fiscal 2019/2020. It added that KNPC did not achieve the refining target with a decrease of 5,407 tons or 12.7 percent, compared to the planned amount of crude oil for refining; in addition to an increase in products whose selling price is less than the average purchase price of crude oil despite the losses incurred by the company due to its lower production.

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