Lebanon Businessnews News

800 MW power generation
tender rejected by ‘Shoura’
Ruling supports opinion

of Tenders Administration

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The State Council (Shoura) ruled in favor of an objection filed by Middle East Power to stop a public tender for plants to generate 800 MW of electrical power in or besides the installations of Deir Ammar and Zahrani, and asked the Ministry of Energy and Water (MoEW), who prepared the tender, to provide the Council with all related documents.

Middle East Power was one of the bidders. Its offer has been rejected because “it did not comply with the terms of reference”.

The Council issued a ruling noting that the bidding documents included articles favoring a specific company. The statement mentioned that “the government represented by the MoEW did not respect in the terms of this tender the principles of equal opportunity and fair competition.”

The Tenders Administration’s Director General Jean Ellieh also had similar reservations concerning the bid. His opinion was mentioned as part of the Council’s ruling.

The articles in question are mostly related to the short time period given to the companies for implementation, 90 days or 180 days do not represent enough time to build a plant, and construct the necessary network. As a result, the process favors the existing floating plants that are ready to operate, namely the Turkish ‘Karpowership.’

Middle East Power also accused the MoEW of holding back documents related to the project that it repeatedly requested.

The State Council refused the objections of the MoEW, which claimed that it is not Council's prerogative to look into the issue, and that Middle East Power did not have the right to raise a lawsuit.

Reported by Fouad Chehab
Date Posted: Nov 30, 2017
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