Hyunda vs. Doosan For Kuwait’s Mega Project

Hyundai Heavy Industries Co. has unprecedentedly asked the government to give a correction order to Doosan Heavy Industries Co. arguing that the former cannot complete its contract with Kuwait due to the latter.

Hyundai said on July 28th, “It was decided in June, last year that the bidding for some 400 million dollars worth of Kuwait desalinization project was for us. But, we were unable to complete our contract due to Doosan’s intervention. So, we made a formal demand to the Ministry of Commerce, Industry and Energy to issue an adjustment order on the government level. “

At last year’s bidding for this project in question, Hyundai called for 342 million dollars while Doosan presented 360 million dollars.

Doosan lodged an administrative lawsuit against Hyundai at the local court after its two-time failure to get the project making an issue with Hyundai’s improper documentation process and sent a supplicant form to the budget-approving institute in Kuwait.

Doosan argued through its own data, “Even though Hyundai presented lower price at the first bidding, its final evaluation price turned out to be higher due to its violation of the provision banning any change in the bidding. With a final selection process still opening to both sides, it is not reasonable for Hyundai to act as if all is done and Doosan is trying to get in the way.”

smhong@donga.com