Kuwait vehicle auction market gets green light for advisory services

• The Kuwait vehicle auction market project will take 30 months to complete feasibility studies, prepare documents, evaluate bids, select an investor, and award the contract.

The Central Agency for Public Tenders has approved the reintroduction of advisory services for the Ministry of Commerce and Industry’s vehicle auction market project, at the request of the Public-Private Partnership Projects Authority, reports Al Anba newspaper.

According to sources cited by the newspaper, approval of the tender service followed amendments to the advisory services contract document, stipulating that the relevant entity will conduct business procedures under general practice as outlined in Article 17 of the Public Tenders Law.

The scope of the project includes preparing comprehensive technical, financial, and legal studies for the establishment and operation of the vehicle auction market. If the project proceeds to a competitive offering, the same advisory authority will prepare the investment offering documents and handle financial closure.

The advisory body is expected to take 30 months to complete the integrated feasibility studies, prepare offering documents, evaluate bids, select the winning investor, and award the contract.

The goal of establishing a vehicle auction market is to meet current and future demands of the local market and transform it into a regional hub, supporting economic development. This project will involve collaboration between the Ministry of Commerce and Industry and the private sector, leveraging private sector expertise to address and improve upon the shortcomings of the current market in a way that benefits all segments of society.

The Ministry of Commerce and Industry has also ensured that the new project includes a dedicated section for car sales exhibitions to attract these businesses and reduce their presence in residential areas, where they cause inconvenience to residents and increase road congestion. The project further aims to deliver significant economic and environmental benefits.

The auction market seeks to generate income, boost state revenues, and enable brokers to operate within a legal framework. It also aims to save time and effort for market participants, whether sellers or buyers, by consolidating car sales in one location.

Additionally, it will help reduce car display violations in public spaces, mitigate exhaust pollution by allowing car displays and test drives in an open area, and minimize dust through paved surfaces and parking areas specifically designed for product displays.