The election last year of a less combative parliament has led to good progress being made on key projects
After a period of sluggish activity, it has been a year of solid progress for Kuwaits infrastructure sector, with plans progressing for a new airport terminal and the construction of a port on Bubiyan Island, along with a series of power and water schemes. Investment is also being channelled into social infrastructure projects, such as housing, hospitals and schools.
The first half of 2014 saw about $2.9bn of major project contracts signed, almost three quarters the average annual value of contracts awarded in Kuwait each year since 2007. The primary driver for this surge in activity has been government-backed infrastructure schemes.
Willing parliament
Progress on these major infrastructure projects, along with several key schemes in the oil and gas and power and water sectors, has been made possible by the election in June 2013 of a less combative parliament, which is allowing ministries to go about their work with far less intervention.
One of the biggest projects scheduled to go ahead this year is the construction of the estimated KD900m ($3.2bn) main terminal building at Kuwait International Airport. The new terminal is aimed at more than doubling the airports capacity from 6 million passengers a year to 13 million.
Further expansion plans under development at the airport will take the total investment to about $6bn, with an estimated $3bn to be spent on widening runways, enhancing control tower facilities and building new cargo facilities.
Strategic masterplan
The airport expansion is part of a strategic masterplan for the country that forms the template for the countrys development up to 2030. Kuwait Municipality is preparing to invite consultants to update the masterplan, taking into account that the countrys population is projected to hit 6 million by 2030, which is double the size of the population today, estimated at 4 million.
Biggest projects in Kuwait | |||
---|---|---|---|
Project | Client | Value ($m) | Status |
Clean Fuels Project | Kuwait National Petroleum Company (KNPC) | 16,285 | Under construction |
New Refinery Project | KNPC | 14,128 | Under construction |
Al-Khairan City | Public Authority for Housing & Welfare (PAHW) | 14,000 | Under construction |
Kuwait national rail road | Communications Ministry | 10,000 | Study |
Al-Zour North independent water and power project | Partnerships Technical Bureau | 8,387 | Under construction |
Mubarak al-Kabeer seaport project | Public Works Ministry | 8,000 | Under construction |
Kuwait City Metro | Communications Ministry | 7,000 | Study |
Nine hospitals expansion | Health Ministry | 7,000 | Under construction |
Sabah al-Salem University | Kuwait University | 6,346 | Under construction |
Sabah al-Ahmed Township | PAHW | 6,209 | Under construction |
For further information visit www.meed.com/meedprojects |
An important element of the masterplan is the strategic development of new areas of Kuwait, particularly the Subiya peninsula to the north of Kuwait City. The municipality has finalised a masterplan for the site, commonly known as Silk City, which was prepared by Canadas Malone Given Parsons, working with the local Gulf Consult.
The Silk City area was previously the location for an ambitious real estate development launched in 2006. The original proposal included plans for the worlds tallest tower, but was abandoned in the wake of the global financial crisis in 2009.
New homes
The new proposed development will support Kuwaits plans to build 248,000 low-density homes for local families outside the metropolitan areas of the capital. These will be built north, west and south of Kuwait City. The capital and the surrounding suburbs cover an area of 810 square kilometres, which is about 4.5 per cent of the countrys total land area, leaving ample room for new developments.
The homes for Kuwaiti families outside the metropolitan areas will be larger than properties provided in the city. In metropolitan areas, the government normally provides 400 square metres. In the new areas outside Kuwait City, it will provide 600 sq m.
Infrastructure serving these new homes will have to be built and much of the work will fall to Kuwaits Public Works Ministry, which oversees the construction and maintenance of public buildings and key infrastructure, from roads and bridges to hospitals and sewage networks.
Personnel changes
In March, the ministry saw some changes in key personnel with the appointment of a new undersecretary and assistant undersecretary. They have been tasked with the development of major projects such as the airport expansion, new roadways and hospitals, and the delivery of most other public construction projects in the country.
The ministrys other major transport project is the development of the Mubarak al-Kabeer port on Boubyan Island. In 2006, a local/Chinese consortium of Gulf Dredging & Contracting, Shaheen al-Ghanim Roads & Bridges and China Harbour Engineering Company started work on stage 1 of the first phase. Then in 2010, the Hyundai/Kharafi team won the contract to deliver stage 2 of the first phase. Later phases covering dredging works and the construction of buildings at the port are in the planning stages.
Road schemes
Other Public Works Ministry schemes include plans for more than 500 kilometres of new roads. The first of these projects is the initial 189km section of the North Road, which will have 21 intersections. The second is the improvement of Salmi Highway, which involves building 102km of new road and 13 intersections.
Nuwaseeb Road is the third scheme and involves building 126km of highway and 14 intersections. The final project will involve improving the first part of the Seventh Ring Road. The work will involve building 90km of new road and 18 intersections.
Kuwait metro
After many years of discussion, Kuwait is at last starting to make progress on the development of a metro system for Kuwait City.
In April, the Communications Ministry invited international consultants to express interest in a design and supervision role on the scheme, and is preparing to issue a tender. The ministry has taken over as client of the project, previously planned to be developed as a public-private partnership (PPP) under the supervision of the Partnerships Technical Bureau (PTB).
The proposed 50-60km first phase of the network was planned to link Salmiya to the airport and have 29 stations. The PTB had intended to develop this phase through five PPP contracts. The bureau was aiming to develop the metro in five phases up to 2035, with the total length of the rail link reaching 170km when completed.
Hospital expansions
The government is also focused on improving public health services, including the expansion of nine hospitals. Various projects are planned as part of this programme. Some contracts have been awarded, while others are being tendered and negotiated. One of the biggest construction deals is the estimated $1.3bn contract to expand Jahra New Hospital. Firms submitted bids for the scheme in 2013 and negotiations are ongoing.
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