With the aim of developing the state’s non-oil revenues and encouraging the private sector to participate in construction and development projects, the Public Private Partnership Projects Authority is preparing to launch a package of projects during the coming period, including the re-evaluation of real estate built on state real estate properties, with the aim of re-offering the management and development of each property separately to compete for it by investors in the private sector. The Authority is also scheduled to present the Khairan Power Generation and Water Desalination Plant project to investors in order to reduce the costs of establishing, operating and maintaining the plants and enhancing the reliability of power generation and water production capacities in Kuwait during the coming period.
The PPA announced that it will work to issue a tender on the provision of consultancy services for the project of preparing a comprehensive study to evaluate the properties built on the state’s real estate properties and study the best available investment alternatives, provided that the winning party is assigned to evaluate the real estate and ensure its structural safety and the cost of its development, including modern technological components and systems that give real development to real estate in accordance with the best international practices.
Sources attributed the reasons for the revaluation of property to reflect its real value to several reasons, including:
1 – The increase in the inflation rate during the recent period, while the value of assets has remained the same for a long time, which necessitates the need for revaluation at fair prices.
2 – The government’s intention is to increase non-oil revenues by taking many investment decisions with regard to real estate properties in particular, with the aim of improving their exploitation, which makes them a major contributors of revenues in the general budget, and pushes them to occupy second place after oil revenues.
State Real Estate Assets
The value of the state’s real estate assets witnessed a significant jump by the end of last year, as it recorded about 47.12 billion dinars, an increase of 187% compared to the estimated value of real estate assets during the fiscal year 2020-2021, when its value was estimated at about 16.4 billion dinars only, as the state’s real estate assets include all lands and buildings owned by government agencies, whether inside or outside the State of Kuwait.
Khairan Station Bidding
The Partnership Authority has invited companies and consortiums wishing to apply to participate in a tender for the design, financing, construction, operation, maintenance and conversion of the Khiran Power and Water Desalination Plant – Phase I, which is a power plant with a net capacity of 1800,33 MW of energy as a minimum, and desalinated water with a net capacity of <> million imperial gallons per day.
The project is expected to operate on a blend of liquefied natural gas (LNG) and high-pressure natural gas with gas oil as a backup fuel and is located next to the southern boundary of the Al-Zour South Power and Desalination Plant, and 100 kilometers south of Kuwait City.
The project will export its production to the country’s electricity grid and water transmission network through a 25-year power conversion and water purchase contract agreement with the Ministry of Electricity, and Ernst & Young has been appointed as a lead and financial consultant to support DEWA in preparing project documents.
Advantages and objectives of the Khiran Station project
Through the Khiran Station project, the Partnership Authority aims to:
1 – Encouraging the private sector to participate in construction and development projects in the country.
2 – Reducing the costs of establishing, operating and maintaining electric power plants and water production.
3 – Enhance the reliability of power generation and water production capacities.
4 – Achieving competition and enhancing the efficiency of the electricity and water sectors.
Read Today's News TODAY... on our Telegram Channel click here to join and receive all the latest updates t.me/thetimeskuwait
