The state’s Partnerships Technical Bureau expects to raise $28bn from the privatisation of these projects
$10bn: Budget for Kuwait’s national railway
$7bn: Budget to build the 171-kilometre metro network in Kuwait City
Kuwait’s Partnerships Technical Bureau (PTB) has revised its privatisation programme and now plans to privatise 32 projects that will raise about $28bn.
The original plan drafted in 2009 involved privatising 24 projects worth $21bn.
The main projects that the PTB is now working on are the $7bn metro network, the $10bn national railway, a $650m solar power project, the $3bn Failaka Island tourism development project and the $2.5-3bn Independent Water and Power Plant (IWPP) at North Al-Zour.
France’s BNP Paribas is the technical advisor for the IWPP project along with US law firm Chadbourne & Parke and Germany’s Lahmeyer International.
The other projects that are to be privatised include six labour cities. The consultant for the six labour cities is Germany-based Roedl & Partners and will be offered to the private sector by November. Construction work will involve building 220,000 units.
Three waste management projects and a central waste management facility designed by the Public Works Ministry will also be privatised. The PTB will invite consultants to evaluate the design and carry out a feasibility study by May or June 2011.
The development of Shuwaikh sea-front is part of Kuwait University and will also be carried out on a build, operate, transfer basis (BOT). The timeline has not yet been decided.
The PTB is also planning to privatise Kuwait Post, fixed lines facilities and the international gateway, which controls all international calls out of Kuwait. The authorities will soon start recruiting transaction advisers for these projects.
The remaining projects include five airport projects, a truck rest station, highway rest areas, Abdullah Ahmad Cultural Centre, Fintas Commercial & Entertainment Centre, Shuwaikh Medical City and nine other end of concession projects.
The PTB was established in 2009 with the aim of encouraging the private sector to participate in the development of projects in Kuwait. In line with Law No.7 of 2008, the PTB’s role is to conduct initial feasibility studies and surveys for identifying potential development projects.
The PTB aims to have all of the 32 projects privatised within the next five years.