Kuwait is expected to sign within two weeks a $1-billion contract with a joint venture of Italy's Salini Impregilo and Turkey's Limak Construction for its planned South Al Mutlaa City project, an official said on Wednesday.

South Al Mutlaa is the first of five major new cities being brought forward by the Kuwait government.

The contract will cover construction of a road and other infrastructure and be funded by the Kuwaiti government from its own reserves, Naser Khraibut, director of planning at the country's Public Authority for Housing Welfare, told reporters on the sidelines of a conference in Dubai.

The Gulf state will also sign a contract this month worth between $80 million and $90 million with Hill International to manage the building of South Al Mutlaa City, Khraibut said.-Reuters