Kuwait needs standardised documents for PPP

28 November 2016

One template would speed up implementation

The Kuwait Authority for Partnership Projects (KAPP) is close to finalising standard public-private partnership (PPP) projects, according to Mutlaq al-Sanei, general manager of KAPP, speaking at MEED’s Kuwait Projects conference on 28 November.

“We are improving legal the contract,” said Al-Sanei. “It has passed through difficult stages, but we are close to an agreement. The main obstacle we have faced preventing us from accelerating projects is legal issues, and this is very important as the implications of clauses can be dangerous. Now we have agreed about these clauses. We almost have one legal template.”

The World Bank is currently preparing a guidebook to Kuwait’s PPP framework.

Once this has been issued and the first round of KAPP’s PPP projects have set a precedent, procurement is expected to speed up.

“When we have experience we will be able to launch more projects,” said Al-Sanei. “We have to work hard to ensure flow of projects from public entities to KAPP.”

KAPP has to coordinate between a number of public entities, including the Fatwa and Legislation Department. It hopes to build a pipeline of power, water, waste and other infrastructure projects by convincing other government bodies of the benefits of PPP.

Lenders and advisers agree that standardisation of documents would expedite KAPP’s programme.

“Standardised guidelines or a template would go a long way,” says Kapil Kumra, head of project finance at National Bank of Kuwait.

“Precedent drives comfort,” adds Andej Kormuth, senior associate at the UK’s Clifford Chance. “Once they have done a few projects and there is a precedent, the floodgates will open and there will be a smoother process.”

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.