Development projects await budget approval

Government officials have expressed concerns over the delay in approving the State Budget for the fiscal year 2024/2025, which could hinder the implementation of crucial development projects. The budget, which includes allocations for projects worth KD 814 million, has yet to be passed by the National Assembly.

Officials point out that despite the reduction in development expenditure in the 2024/2025 plan to the lowest level in 14 years, the delay in budget approval is jeopardizing their ability to adhere to project timelines.

Ministry of Finance’s directives

The Ministry of Finance has issued a circular instructing government entities to refrain from signing new contracts for the fiscal year 2024/2025 until specific budget chapters are approved by the National Assembly or the State Budget Law for 2024/2025 is enacted.

Circular No. 2 of 2024 regarding expenditures until the issuance of the State Budget Law for ministries and government departments and the State Budget Laws for affiliated bodies and independent institutions for the fiscal year 2024/2025 outlines the following:

• Government entities, upon obtaining Ministry of Finance approval, may initiate the tendering process for projects included in their 2024/2025 budget proposals submitted to the National Assembly.
• Contractual procedures may not commence until specific budget chapters are approved by the National Assembly or the State Budget Law for 2024/2025 is enacted.

Recurring supply contracts, utilization, services, maintenance, and rental contracts are exempt from these restrictions, as per Article 26 of Law No. 31 of 1978.

The circular emphasizes the need to prioritize and expedite the implementation of projects under the 2024/2025 Annual Development Plan.

Gulf Railway project funding approved

The Ministry of Finance has approved the inclusion of KD 1 million in the General Authority for Roads and Land Transport’s (GART) budget for the study, design, and tender preparation of the first phase of the Gulf Railway project.The project is expected to take one year to complete.

The concept of the Gulf Railway project, which spans 2,117 kilometers from Kuwait in the north to Muscat in Oman in the south, passing through Saudi Arabia, Bahrain, Qatar, and the UAE, dates back to 2009. The project aims to connect the GCC countries and facilitate the movement of goods and passengers.

The first phase of the Kuwait section, extending from the Nuwaiseeb border crossing in the south to the main passenger station in the Shadadiyah area behind Kuwait International Airport, covers a distance of 111 kilometers.

Road authority’s projects

General Authority for Road and Land Transport’s budget also includes allocations for several consultancy services related to its projects, including:

1. Continuous update of the country’s traffic model, phase two, with a total cost of KD 1.2 million, of which KD 100,000 is allocated for the fiscal year 2024/2025.
2. Agreement for the study and preparation of GART’s strategy, with a total cost of KD 2.5 million, of which KD 200,000 is allocated for the current fiscal year 2024/2025.
3. Railway consultancy agreement for KD 2.5 million, of which KD 100,000 is allocated for the current fiscal year.
4. Traffic bank agreement for KD 1.6 million, of which KD 100,000 is allocated for the current fiscal year.
5. Cooperation agreement between GART and the Kuwait University College of Engineering consultancy office, with a total cost of KD 2.5 million, of which KD 150,000 is allocated for the current fiscal year.
6. Public transport studies project for KD 1.2 million, of which KD 150,000 is allocated for the current fiscal year.
7. Study, preliminary design, and tender preparation works for the first phase of the Gulf Railway project, with a total cost of KD 1 million to be expended during the current fiscal year.