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Kuwait seeks partners in three transport projects
Kuwait plans to auction stakes in three transportation system projects worth up to 1.5 billion dinars (Dh19.3 billion) next year, a government official said.
- Reuters
- Published: 22:33 July 29, 2009
Kuwait: Kuwait plans to auction stakes in three transportation system projects worth up to 1.5 billion dinars (Dh19.3 billion) next year, a government official said.
The projects have been approved by the Gulf state's government to develop the country's first railway and monorail systems, Adel Al Roumi, the head of a developmental projects unit associated with the ministry of finance, said.
"Three public joint-stock companies will be formed with the participation of the private sector through strategic investors."
Al Roumi said for each company formed, a 26 per cent stake will be offered in an auction for local or international investors. The government will own a 24 per cent stake, and the remaining 50 per cent will be offered to Kuwaiti investors.
The government is expected to review studies by international consultants for the three projects by the first half of 2010, after which the firms will be set up, he said.
"The estimated cost of the three projects could reach 1.5 billion dinars."
Developing mass transportation in the world's fourth-largest oil exporter has been part of the government's plan to ease traffic congestion and give a bigger role to the private sector, Al Roumi said.
"The state is interested in offering new projects for the private sector to invest in, especially in the field of public services."
Opec member Kuwait had long said it wants to diversify its economy away from heavy reliance on oil by becoming a regional financial centre and attracting foreign investments.
With Gulf countries witnessing annual population growth of between 5 to 10 per cent, cities are increasingly facing congestion, forcing governments to spend on improving infrastructure.
The neighbouring emirate of Dubai expects to start moving passengers on its first Metro line in September. Abu Dhabi is planning to build its own rail system.
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