The approval of the contract awards for the planned Umm al-Hayman wastewater and Kabd solid waste public-private partnership (PPP) projects has provided fresh optimism that Kuwait can succeed with its sizeable pipeline of utilities projects planned in partnership with the private sector.

Following the creation of its PPP body, formerly called the Partnerships Technical Bureau (PTB), in 2008 and the subsequent launch of a $30bn programme of PPP projects across all sectors, Kuwait has become a key market for investors, consultants and contractors in the region and beyond.

The first project, the Al-Zour North 1 independent water and power project (IWPP), was regarded as a trailblazer. With the IWPP model having been implemented across the GCC to great effect over a number of years, it was viewed as the ideal scheme to kickstart Kuwait’s ambitious PPP programme.

After teething problems and delays during the tendering and procurement phase, the final contracts were awarded in late 2013 and the project was successfully commissioned in December 2016. However, the expected succession of awards for the next phases of the Al-Zour IWPP programme, and other utilities projects such as the Al-Abdaliyah integrated solar combined-cycle (ISCC) projects, failed to materialise. To date, no further PPP projects have been formally awarded and reached the execution phase.

The delays with the Al-Zour North IWPP and the need for much faster procurement of additional capacity led the government to re-examine the structure of the PTB in 2014. In response, the government decided to amend the country’s PPP law and reform the PPP body. Following the legislative reforms and rebranding of the PTB as the Kuwait Authority for Partnership Projects (KAPP), new executive regulations were published in 2015 to assist with the execution of projects under the PPP programme.

However, in spite of the reforms, the next major planned IWPP schemes, Al-Zour North 2 and Al-Khiran 1 IWPP, failed to materialise, with the tender for the Al-Zour North 2 project cancelled in August 2017, more than one year after bids were submitted. This followed the cancellation of the Al-Abdaliyah ISCC a few months before. The problems with gaining political consensus for the approval of these projects caused many investors to lose faith in Kuwait’s ability to deliver on its ambitious PPP plans.

The approval of the Umm al-Hayman wastewater and Kabd solid waste projects, in tandem with the launch of a new PPP projects guidebook in early May, has provided a new platform for Kuwait to begin pushing ahead with vital utilities schemes. Following years of setbacks and false starts, it is vital that KAPP is able to begin execution of the recently approved projects and make progress appointing advisers. It must also begin the procurement process for the next major utilities project, Al-Zour North 2&3 IWPP, in order to attract investors and achieve competitive tenders and the best value possible.