Kuwait- PAHW refuses variation order by Chinese company

(MENAFN- Arab Times) KUWAIT CITY, Jan 8, (Agencies): The plan to benefit from Chinese expertise in the construction of new cities, based on the recommendation of the Council of Ministers, will expose some problems and obstacles associated with the first practical implementation of the model by a Chinese company supervising the second contract project at Al-Mutla'a Residential City constituting 18,519 housing units, reports Al-Qabas daily.

The daily quoting a source noted an official verbal complaint has been submitted to the Chinese Embassy concerning the company's plan to back down on the execution works.

The company was trying to blame the Public Authority for Housing Welfare (PAHW) for errors in the estimated financial cost of the contract, which was awarded for KD 215 million.

The sum covers the infrastructure for eight housing districts and sub-power transformers. In response to a request by the company for a variation order, the authority objected to the demand and insisted the works should continue as previously agreed to avoid penalties and financial fines.

The letter indicated the penalties will include banning Chinese companies from partaking in other housing development projects in future. A special emphasis was laid on the Silk City project, which will affect the position of China as a major contender for executing future projects.

It revealed that former Minister of Housing Affairs Yasir Abul had once rejected the plan for a variation order and obliged the company to execute the project without any change or delay. The current board also rejected a similar request lately; stressing the company was responsible for the errors, and the authority has the right to withdraw the project in case of a clear shortcoming.

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