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.