Kuwait issues PPP regulations

30 March 2015

Stalled public private partnership projects to go ahead

  • Executive regulations now in force for public private partnership (PPP) projects
  • Umm al-Haymann Wastewater Treatment Plant, Kabd Solid Waste Treatment Facility and al-Abdaliya Integrated Solar Combined Cycle Power Plant will go ahead first
  • Reforms intended to simplify PPP tendering process

Kuwait has published executive regulations for the 2014 public private partnership (PPP) law.

The regulations will allow the new PPP body, the Kuwait Authority for Partnership Projects (Kapp), to tender $22bn of stalled projects. The regulations came into force on 29 March.

The first projects to be tendered by Kapp will be Umm al-Hayman Wastewater Treatment Plant, Kabd Solid Waste Treatment Facility and al-Abdaliya Integrated Solar Combined Cycle (ISCC) Power Plant.

Rail, metro and other projects will follow soon after.

Kapp will decide to resume stalled prequalification processes for these projects or start it anew on a case by case basis.

The 2014 reforms were intended to simplify and smooth the tender process. The PPP law was altered in response to the long and difficult tendering process for Kuwait’s first independent water and power project (IWPP), Al-Zour North 1.

The new law covers the rights of lenders, developers, the government and the offtaker.

Projects above a certain size will be required to launch an initial public offering of at least 50 per cent of shares in the project. The developer will retain at least 26 per cent of shares with the government owning between 6 and 24 per cent.

After years of delays, numerous projects across different sectors are expected to be tendered in 2015.

IWPPs are covered by a separate 2012 law. The final date for submission of prequalification documents for Al-Zour North 2 and Al-Khiran IWPPs is 9 April, and Kapp will float the tenders shortly afterwards.

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