PPP approach could save $2.9bn on Kuwait megaproject
KAPP study calls for PPP to build Kuwait Metro project
Kuwait could save billions of dollars if it builds its planned metro using private finance instead of the traditional procurement system, a report citing the Kuwait Authority for Partnership Projects (KAPP) has said.
According to an Arab Times report, the Kuwait Metro was originally envisioned as a PPP project with construction due to start in 2017. However, a series of setbacks have plagued the project, resulting in several delays.
The report added that KAPP recently conducted a study that compared the life cost of the megaproject if it built it through a public-private partnership rather than through the traditionally tendered approach.
The study found that if implemented the government’s traditional approach, Phase One of Kuwait Metro would cost $13.2 billion with an additional $4.30 billion for operation and maintenance annually for a period of 30 years, stated KAPP.
However, through the PPP approach, it would cost around $11.58 billion, in addition to $3.09 billion for O&M annually for a period of 30 years.
