EXCLUSIVE: Kuwait extends bid deadlines for real estate PPPs

05 September 2018
The selected bidders will design, finance, build and operate the proposed PPP projects

Kuwait’s Public Authority for Housing Welfare (PAHW) has extended the deadline to mid-November for the four public-private partnership (PPP) deals for the development of the Jaber al-Ahmad and Sabah al-Ahmad cities.

The initial bids deadline was 16 September.

Firms that have been prequalified to bid for the Jaber al-Ahmad City business centre package (J2) - which also includes retail units, restaurants and a park - include:

  • Adnan al-Saleh Trading Group
  • Al-Argan International Real Estate Company / Combined Group Contracting
  • Al-Mazaya Holding Company
  • China Harbour Engineering Company / Fouad Alghanim & Sons General Trading & Contracting Company / Kuwait Financial Centre
  • Mabanee Company / National Industries General Holding / Privatisation Holding Company
  • National Real Estate Company
  • United Real Estate Company

The same set of companies have been prequalified to bid for the Sabah al-Ahmad integrated residential community scheme (S1). These companies, with the exception of Adnan al-Saleh and Al-Argan, have also been prequalified for the second package that comprises an industrial area (S2) catering for light to medium industries. Two other firms – Agility Company and China State Construction Engineering Corporation – have been prequalified specifically for S2.

Of the seven firms and groups, five have been prequalified for the Jaber al-Ahmad integrated residential package (J3) that covers residential units, a mall and park. They are:

  • Al-Mazaya Holding Company
  • Mabanee Company / National Industries General Holding / Privatization Holding Company
  • National Real Estate Company
  • The Commercial Real Estate Company
  • United Real Estate Company

Prequalification for the multiple packages began in September 2017.

The selected bidders will design, finance, construct, operate, manage and maintain the proposed schemes.

The investment period for each of the Jaber al-Ahmad city projects will extend over 25 years, while the investment period for the Sabah al-Ahmad city integrated residential and industrial packages will extend 40 years and 30 years, respectively.

Sabah Al-Ahmad City is being developed on a 4,000-hectare land located approximately 65 kilometres south of Kuwait city. It is envisaged to accommodate over 2,000 villas and a similar number of apartments as well as 52 schools and 70 mosques upon completion.

Jaber al-Ahmad City is relatively smaller and is being developed on a 1,245-hectare property some 22 km west of Kuwait City.

Lebanon’s Dar al-Handasah is technical adviser for the project. UK-based consultancy PWC/Strategy& is financial adviser while local Al-Markaz Law Firm is legal adviser.

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