Kuwait awarded KD1.8 billion ($6 billion) worth of contracts in the first quarter (Q1) of 2015, out of which a deal worth KD1.2 billion ($4 billion) for Phase One of the Lower Fars heavy oil handling facilities was awarded to UK-based Petrofac, a report said.

The total value of the country’s projects market (planned and active projects) grew to over KD68 billion ($230 billion) by the end of 1Q15, its highest level since 2010, added the latest Economic Update by NBK.

Kuwait Oil Company (KOC), the state’s upstream operator, aims to extract 65,000 barrels per day (bpd) of ‘heavy’ oil from Kuwait’s northern desert by the project’s fifth year, the update said.

Kuwait National Petroleum Company (KNPC) was hoping to follow last year’s successful awarding of the KD3.4-billion ($11.25 billion) Clean Fuels project in the first quarter with the tendering of the KD4-billion ($13.24 billion) New Refinery Project (NRP) in 2015. Once completed, the Al Zour refinery will effectively double Kuwait’s refining capacity.

The Kuwaiti government issued the bylaws for the 2014 Public Private Partnership (PPP) law on March 29, essentially kick-starting the long-awaited PPP scheme. The bylaws allow the new Kuwait Authority for Partnership Projects (KAPP) to start tendering stalled PPP projects. These are estimated to be valued at KD6 billion.

Construction

According to Meed Projects, a local contractor has been approved for the KD380 million ($1.2 billion) Jahra Hospital after the Amiri Diwan revived the project in January 2015. The Amiri Diwan also awarded a contract worth KD8 million ($27 million) for the repair and refurbishment of Jaber International Stadium, the venue for the upcoming Gulf Cup in November 2015.

In April, the government issued the bylaws to law 113/2014, allowing the private sector (real estate developers) to develop housing units on land allocated to the Public Authority for Housing Welfare (PAHW). Developers can now buy, develop and sell land from the PAHW to beneficiaries on the PAHW waiting list (at a price set by the PAHW).

According to press reports, Phase One of the Umm Al-Hayman Wastewater Treatment Plant (WWTP) and the Kabd Municipal Solid Waste Treatment Facility are likely to be the first projects tendered under the new law.

KAPP has also issued a request for qualification (RFQ) for Phase Two of the Al-Zour North Independent Water and Power Producer (IWPP) project. However, the IWPP is regulated under a separate law that was issued in 2012 that has also been recently amended to provide the government with more flexibility in executing power projects.

Power & Water

On April 9, the newly formed KAPP received prequalification documents for two of its projects: Al Khairan IWPP (independent water and power project) and Phase Two of the Al Zour North IWPP. Implementation of the two projects should expand total power capacity by 1,500 MW and desalination capacity by 102 million gallons per day (mgpd) for each plant.

Transport

According to Meed Projects, the government is considering converting the new airport terminal project at Kuwait International airport to a BOT (build-operate-transfer) project under the new PPP law.

KAPP has already taken formal control of several other projects including both the metro and railroad projects. In November 2014, bids for construction of the airport terminal came in well over the KD1 billion ($3.3 billion) budget, which prompted the government to look for alternative ways to tender the project. Once complete, the new terminal will increase the airport’s capacity to 20 million passengers a year.  – TradeArabia News Service