Kuwait Plans $6.6 Bn Industrial City

Kuwait Plans $6.6 Bn Industrial City

Thursday, 22 March, 2018 - 08:30
City of Kuwait (File Photo: Reuters/ Stephanie McGehee)
Kuwait- Asharq Al-Awsat
Kuwait plans to set up a multi-purpose industrial city in the Gulf Arab state with total expected investments of $6.6 billion with the participation of the private sector.

Acting General Manager of Public Authority for Industry (PAI) Abdulkareem Taqi told Reuters that the government will begin establishing the infrastructure for the city at an estimated cost of $600 million and the private sector and investors will build the facilities.

Al-Naayem City, which will be located 70 kilometers west of the capital, will be able to house 50,000 people and include industrial facilities as well as residential and leisure projects.

Taqi said that infrastructure work for the project was expected to be completed by 2021.

Kuwait is promoting independent power projects, in which companies other than public utilities invest in and operate power plants, to reduce the burden on state budgets.

In other news, head of Kuwait Authority for Partnership Projects Mutlaq al-Sanei indicated that Kuwait plans to begin selling shares in its Az-Zour North Independent Water and Power Project to the public within three months.

"We are waiting for the regulators' approval of the prospectus (in a month). Two months after the approval, the subscription will start according to the law," Sanei told Reuters on the sidelines of a conference on Wednesday.

Az-Zour North is a partnership between the private and public sector with the government planning to offer 50 percent of it to Kuwaiti citizens and investors.

Az-Zour North Independent Water and Power Project has a capacity of at least 1,500 MW and 107 billion gallons of water per day.

According to the law, 50 percent of the company's shares are allocated to Kuwait citizens while a percentage between 26 and 44 are assigned to a strategic investor who could be Kuwaiti, foreign or a coalition of several investors.

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