Kuwait scraps five PPP projects

03 July 2012

Airport projects dropped after being deemed unfeasible

Kuwait’s Partnerships Technical Bureau (PTB) has scrapped plans to develop five public-private partnerships (PPPs) at Kuwait airport after deciding that the plans were not feasible.

The PTB had appointed Germany’s Deutsche Bank to advise on the development of the project and conduct a feasibility study into the plans, but after the study was completed the PTB choose not to pursue the plans.

The decision to drop the schemes is understood to be in line with Deutsche Bank’s advice. The five PPPs are thought to be worth around KD200m ($700m).

“The timing of this was probably wrong as there is still a other projects to be done expanding the airport, which it would make sense to do first,” says one source close to the process.

The PTB is understood to have made the final decision to drop the schemes several months ago, and it is thought to be the first time that the PTB has scrapped PPP schemes planned for Kuwait since it was created in 2008.

“It is a good sign that the PTB is able to take the decision not to continue with some projects if they don’t make sense,” says another source close to the PTB.

The five PPPs would have covered areas including aircraft maintenance, cargo handling, and catering.

The PTB did not respond to requests to comment.

Ongoing PPP projects

  • National railroad
  • Kuwait metropolitan rapid transit system
  • South al-Jahra labour city
  • Rest houses and Doha Chalet’s Service Centre
  • Failaka island development
  • Education and cultural centre
  • Schools development programme
  • Umm al-Hayman wastewater project
  • Al-Khairan power and water project
  • Al-Zour North power and water project
  • Public post office
  • New physical medicine and rehabilitation hospital
  • Al-Abdaliyah solar project
  • Municipal solid waste treatment
  • Communication network and telecommunication services

PPP=Public-private partnership. Source: PTB

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