Kuwait announces transport PPP plans

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Kuwait announces transport PPP plans

The Government of Kuwait, through the Kuwait Authority for Partnership Projects (KAPP), has announced plans for several transport PPP projects.

The roles of KAPP include: assessing feasibility studies for PPP projects; developing contract templates; drafting RFPs and PPP agreements; submitting recommendations to the PPP Higher Committee; following up on the implementation of PPP projects; and preparing a new guidebook for PPP projects.

KAPP has plans to establish public joint stock companies for the performance of two mega projects, the Kuwait National Rail Road (KNRR) and Kuwait Metropolitan Rapid Transit System (KMRT) projects.

The KNRR will measure approximately 574 km. It is composed of a 317 km mainline, divided between two phases: a first phase that will connect Nuwaiseb (on the border with Saudi Arabia) to the Freight Depot, with a branch to the Passenger Station where KNRR will interface with KMRT; and a second phase that will extend the network from the Freight Depot to Umm Qasr (on the border with Iraq), with a branch to the Boubyan Port.

The feasibility study for the project has already be developed and Ernst and Young has been hired as transaction advisor for the project. The tender process is expected to be launched by the first quarter of 2016. The KNRR project procurement includes 4 PPP contract packages:

  • Package 1: civil infrastructure for GCC component which will be implemented in a design-build-finance-major maintenance (DBFMM) 30-years
  • Package 2: civil infrastructure for Boubyan Port component which will be implemented in a design-build-finance-major maintenance (DBFMM) 30-years
  • Package 3: systems and track for the whole network which will be implemented in a design-build-finance-operate-maintain (DBFOM) 30-years
  • Package 4: passenger station which will be implemented in a design-build-finance-maintain (DBFM) 30-years

The technical profile of the KMRT project includes the following:

  • Integrated network - unified fleet and limited passenger interchange
  • 160 km total length with a 16% underground
  • 68 stations total with 9 stations in Kuwait City
  • Station spacing determined by population density and travel times
  • 90 kph operation speed, 100 kph maximum speed - driverless trains
  • 24 tph is the currently envisaged maximum frequency for the central core
  • District cooling system to be developed

The feasibility study is being reviewed and updated and a consortium composed of Ernst and Young, Trowers & Hamlins and Arup has been hired as transaction advisor for the project. The tender process for the project is expected to be launched by the first quarter of 2016 as well.

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