The Higher Committee for Partnership decided in a recent meeting chaired by Finance Minister Manaf Al-Hajri and attended by Minister of Finance, Manaf Al-Hajri, with the membership of the Minister of Trade and Industry, Muhammad Al-Aiban, the Minister of Works, Eng. Eng. Amani Sulaiman Buqamaz as members has in principle accepted the request of the Ministry of Commerce and Industry to establish car parks project with the public and private sectors partnership.
The sources indicated that it was decided to form a committee to be concerned with offering the expected automobile project in the northern region (Al-Salmi Road) and a study will determine the feasibility of the project and the expected investment cost for it, reports Al-Rai daily.
The sources pointed out that it was agreed that if the cost of the project reached 60 million dinars or less, the project will be offered for implementation through a strategic investor, who will be contracted in accordance with the requirements of the partnership law between the private and public sectors, as it is expected to be operated on the BOT system.
In the event that the investment value of the project exceeds 60 million, it was decided by the committee that a government company be established, of which 50 percent shares will be offered for public subscription by citizens, with a share allocated to a strategic investor, often at 26 percent of the company’s capital, provided that the Kuwait Investment Authority share as usual will be 14 percent.
The sources indicated that the adoption of any of the two proposed scenarios for the establishment of the project, whether through a strategic investor or through a government company, will depend on the outputs of the study that a specialized consulting office will be assigned to prepare, in which the capital value of the project and the best possible methods for managing and developing the project in the future will be taken into account.
The sources stated that the establishment of the project, whose implementation was assigned to the Ministry of Commerce since 2018, but was stalled due to the intertwining of powers between the ministries, will be smart and sophisticated in its services provided to its beneficiaries, while it is expected that it will include, according to the old vision prepared by Commerce Ministry officials service for all types of vehicles on 500,000 square meters area.
The sources pointed out that at the time of assigning the project to the Ministry of Commerce and Industry, the matter was presented to the Structure Plan Department, and the department responded in writing that the site located north of Al-Salmi Road is the best suited, and is in line with future uses in the region.
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