Major initiatives
Kuwait’s commitment to maintaining capital expenditure despite falling oil revenues has drawn widespread plaudits from analysts and investors.
A second five year infrastructure programme inaugurated last year will see more than Kd34bn ($113bn) spent on more than 500 projects in sectors including energy, transport, utilities and housing.
Crucially, for the first time a significant proportion of the funding is due to come from non-governmental sources following amendments to PPP legislation in 2014. If successful, this should not only ease the strain on public finances but also encourage the further development of Kuwait’s burgeoning private sector.
In total, Kd10bn of projects have been earmarked for PPP financing including a 511km national rail network to link Kuwait with other GCC countries. Policymakers have estimated that the PPP programme — which also comprises projects in the power, water, wastewater and housing sectors — could add as much as two percentage points to Kuwait’s GDP growth.
Other major initiatives included in the Kuwait Development Plan (KDP) 2015-20 include an extensive metro rail network, the construction of Mubarak Al Kabeer Port on Boubyan Island, the development of a new urban centre — Madinat al-Hareer — at Subiya and the long awaited expansion of Kuwait International Airport. Several of these projects have been held over from the first five year development plan launched in 2009. However, policymakers are confident that the involvement of private sector players will mean faster progress can be made this time around.