Kuwait eyes $28 billion PPP projects in new development plan

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Kuwait eyes $28 billion PPP projects in new development plan

Kuwait has announced that public - private partnership (PPP) projects worth KD8 billion ($28.17 billion) will be tendered under the new five-year development plan.

The Kuwait Development Plan (KDP) for 2015-2020 will also focus on economic reforms and the implementation of several long-stalled mega strategic projects, a senior government official said to local sources.

The plan has two objectives, the first is to address the imbalances in the economic reforms through giving a free rein to the private sector to play a bigger role in development; and the second is to realize the country's strategic vision through the implementation of mega projects, Al-Subaih, Minister of Social Affairs and Labour and Minister of State for Development and Planning Affairs, explained.

The plan, approved by the cabinet, still needs to be passed by the parliament.Projects in the plan include:
  • the construction of a metro project and a KD8bn rail project to link the five partners of the Gulf Cooperation Council;
  • Construction of a new terminal at Kuwait airport;
  • construction of a media city;
  • further development of the Mubarak Al Kabeer Port on Boubiyan Island;
  • Al Zour 2 power generation project;
  • Al Zour refinery;
  • establishment of a joint stock low-cost housing company;
  • development of the Failaka Island;
  • expansion of the sewage network; and
  • a solid waste treatment facility in Kabd.
The plan also envisages the development of Madeenat Al Hareer (Silk City), a proposed 250-sq km urban area in the northern Subiya region. It will feature the Burj Mubarak Al Kabir tower, a nature reserve, a duty free area, a nearby airport, a large business centre and other facilities, said the report.The country's last five-year development plan only spent 57 per cent of the allocated budget.

Furthermore, Kuwait has confirmed the network layout for its new USD20 billion metro with construction due to begin in 2017. The three-line system would include 61 stations and cover the entire capital. A 23.7-kilometre line would run from Salwa to Kuwait University, with 19 stations. A 21-kilometre line would run from Hawally, stopping at 27 stations to end in Kuwait City. A third line would stretch 24 kilometre from Kuwait International Airport to Abdullah Al Mubarak area, passing through 15 stations.

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