Hydropower Expansion in trouble: Tender cancelled

NunaGreen informs that the company has decided to cancel the ongoing tender for the expansion of the hydroelectric power plant in Utoqqarmiut Kangerluarsunnguat (Buksefjorden).

Buksefjord Hydropower Plant supplies Nuuk with electricity, but there is a need to expand capacity.
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The large construction project with the expansion of the hydroelectric power plant in Utoqqarmiut Kangerluarsunnguat - Buksefjorden has run into problems.

The self-government-owned company NunaGreen, which will implement the project, informed on Tuesday that only a single offer has been received in connection with a turnkey tender.

There were otherwise three potential bidders after a prequalification, but two of them have therefore dropped out.

After negotiations, NunaGreen has assessed that the level of offers reflected the lack of competition in the tender process, and that the risk burden on NunaGreen as the developer was unattractive, the company says.

The expansion has previously been estimated to cost around three billion kroner, making it one of the largest construction projects in Greenland ever.

Focus is on limiting delays

According to NunaGreen, preparatory work continues with the establishment of the access road, and the focus is now on limiting the project's overall delay as much as possible.

Director Aviaaja Karlshøj Knudsen states that NunaGreen has worked purposefully to ensure that the tender could lead to the conclusion of a contract and the start of the project:

- When this has not been successful, it is important for us to organize the further process in a way that supports competition to a greater extent and a more robust implementation of the project, says Aviaaja Karlshøj Knudsen and continues:

- At the same time, we have a strong focus on identifying and managing risks in a construction project of this size, so that it can be realized on a solid basis and for the benefit of society.

NunaGreen expects to be able to announce in more detail the further process for the implementation of the project before the summer.