Arab News, Thursday, Mar 25, 2021 | Shaaban 11, 1442
PPP would save $2.9bn on Kuwait Metro say officials
Kuwait:
Kuwait would save billions of dollars if it built its planned metro using
private finance instead of using traditional procurement, according to the
Kuwait Authority for Partnership Projects (KAPP).It conducted a study comparing
the life cost of the massive project if it was built through a public-private
partnership compared to a traditionally tendered approach, the Al Anba newspaper
reported.
It found that the first construction phase of the Kuwait Metro would cost KD4
billion ($13.2 billion) if implemented by the government with an additional
KD1.3 billion for operation and maintenance annually for a period of 30 years.
But a public-private partnership (PPP) approach would involve a first phase cost
of KD3.476 billion, in addition to KD934.8 million for operation and maintenance
annually for a period of 30 years.
The Kuwait Authority for Partnership Projects said the comparison was important
in establishing the financial feasibility of the project.
The Kuwait Metro was originally envisaged as a PPP project with construction due
to start in 2017, but it has suffered a series of setbacks.