A recent report highlighted Kuwait government’s new measures are aimed at reducing delays in major development projects by streamlining launch procedures and resolving overlaps in responsibilities among various government agencies.
The report revealed that major projects take over 420 days to complete the procedures for offering them to investors, following these key steps:
- 90 Days time required for the investor qualification process for projects intended to be offered by a government agency.
- 90 days to prepare project tender documents.
- 60 Days time needed to secure approval from regulatory authorities, such as the Fatwa and Legislation Authority, on contract documents and to complete the project’s offering by auction.
- 180 Days duration allocated for completing procedures outlined in the general auction circular, including advertising, offering, bid evaluation, awarding, contracting, and signing agreements.
It is important to note that the 420-day period applies only to projects that have received approval from relevant authorities and have allocated financial appropriations, while additional months may be required for other preliminary steps.
Administrative Challenges
Official reports indicate that major government projects face significant administrative challenges, primarily due to slow contractual procedures and delays in regulatory approvals, which account for over 40% of project obstacles. These issues are widespread, with only a few projects managing to avoid such bureaucratic slowdowns.
Project performance reports reveal that many projects have faced delays in recent years due to complex coordination with various entities and ministries, leading to prolonged documentation cycles and bureaucratic routines. Some agreements intended to be completed within a year have taken up to three years.
Speed up the Process
The government emphasized the urgency of accelerating major development projects, prioritizing them across all stages, from study to implementation. The General Secretariat for Planning has been assigned to coordinate with government agencies to identify and resolve obstacles hindering project completion.
Several workshops were previously held between government agencies to discuss the challenges facing development projects. During these sessions, various solutions were proposed to address all implementation obstacles. This effort contributed to resolving many challenges and helped accelerate the completion rates of these projects. As a result, the proportion of administrative challenges affecting project progress was reduced to 10% of the total obstacles.
The General Secretariat for Planning was assigned the responsibility of coordinating with relevant authorities to identify and address all obstacles hindering the implementation of development projects. This includes finding suitable solutions for challenges such as delays in documentary procedures, financial constraints, contractor failures, and the prolonged approval process. Additionally, some projects require new legislation to proceed, as several have been stalled for an extended period.
Source: Al Qabas
