Jan De Nul wins multi-billion-dollar Argentina contract after DEME's counter-bid fails
Jan De Nul has officially clinched a landmark dredging contract in Argentina, bringing a bitter contest with fellow Belgian company DEME to a close. "We can officially confirm that we have been awarded the project in Argentina," a Jan De Nul spokesperson said on Friday.
It had emerged earlier this month that Jan De Nul had won the deal, but the path there was anything but straightforward. The award process of the contract, worth billions of dollars, was marked by intrigue. Brian Mast, chairman of the US House Foreign Affairs Committee, even accused the project of being influenced by China.
After Jan De Nul was named provisional winner, DEME announced a week ago that it had tabled an alternative bid. In a last-ditch effort to reverse the outcome, the company wrote directly to the Argentine Economy minister with an offer said to be 17.4 per cent lower than the winning bid.
According to DEME, it chose to approach the government directly rather than lodge a formal appeal, which would have required a deposit of 10 million US dollars, a figure that had already drawn criticism. But DEME's effort does not seem to have worked out. The company could not be reached for comment on Friday.
Dredging companies are paid a price per tonne of sludge removed. The tender covers the dredging of the Paraná River and a 25-year maintenance contract, with the winning company receiving toll revenues in return. The total contract value has not been disclosed, though some estimates put it at around 10 billion dollars.
#FlandersNewsService | PHOTO © Luis ROBAYO / AFP
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