Failaka island projects move forward

24 September 2004
At least 15 prequalified investor groups have submitted expressions of interest to the client, the Divided Zone Agreements & Kuwaiti Islands & Mega Projects Development Team (Dizart), for the Failaka island development project. A separate Failaka scheme, under the auspices of the government-owned Touristic Enterprises Company (TEC), is also moving forward.

The estimated $5,000 million Dizart project is to be developed on a build-operate-transfer (BOT) basis and calls for the construction of tourism infrastructure on the 43-square-kilometre island, including hotels, chalets and leisure and entertainment facilities. The construction and project manager is the US' Hill Internationalwith the local SPDM(MEED 27:8:04).

A BOT contract was signed in mid-September between TEC and a consortium led by Al-Mal Real Estate Company for the development of a tourist resort on the southern portion of Failaka island.

The resort will include a five-star hotel, 502 chalets, a spa and other leisure facilities. Four companies have submitted bids for the project management consultancy (PMC) and an award is expected by early October, after which a tender for detailed design and concept engineering will be issued. Al-Mal Real Estate Company holds a 45 per cent stake in the project company, Al-Mal Kuwaiti Companywill take 25 per cent and Kuwait Commercial Complexes Companyand Golden Shaheenwill each take 15 per cent. Project costs are estimated at KD 40 million ($138 million) and the area to be developed covers about 1.7 million square metres (MEED 20:8:04).

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