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Belgium’s Novadeal Fails to Confirm Offer in Tender for Dredging Works at Yuzhny Port, China’s CHEC Wins Tender

Yuzhny Port

Posted on May 8, 2017

The winner of a tender to implement the project entitled the project “The reconstruction of the maritime approach channel and inland water approaches to the deep-sea quays of Yuzhny seaport (construction and assembly work)” is China Harbour Engineering Company Ltd.

The press service of Ukrainian Sea Port Authority reported that earlier Novadeal Ltd, the subsidiary of DEME Group (Belgium), was announced the winner, but the bidder failed to provide a full list of documents for finishing the tender procedure. The tender committee rejected the offer and announced the second best price bidder as the winner.

According to the tender documents drawn up to meet international standards, the offer is to be proved by relevant technical documents. The bidder incorrectly calculated the price. It did not take into account Ukrainian national standards and the rules for calculating the cost of project works.

As reported, Novadeal was the tender offering UAH 586 million for the service with the expected price of UAH 839.606 million.

According to the results of the auction, the initial price of the company’s offer was not minimal and stood at UAH 818.05 million, while its nearest competitor, China Harbor Engineering Company Ltd, offered services for UAH 747.25 million.

In the first round the Chinese company kept the price, while Novadeal Ltd reduced it to UAH 710.5 million. In the second round Novadeal Ltd set the price at UAH 671.5 million, and China Harbor Engineering Company at UAH 671.685 million. The Chinese company completed the third round with a price of UAH 586.045 million, and Novadeal Ltd with UAH 586 million.

Thus, the price was cut by 30% compared to the initial price.

Earlier China Harbour Engineering company Ltd. won an open tender to implement the first stage of the project to reconstruct the marine approach canal and internal water approach canals to deep-water berths of Yuzhny maritime merchandise port (Odesa region), offering the service for UAH 1.065 billion with the expected price of UAH 1.197 billion.

Source: Interfax-ukraine

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