The State of Kuwait has announced a new development plan for the 2015-2020 period. This is the second development plan of the country, officially KDP – Kuwait Development Plan 2015-20.
The main targets of the second KDP are:
- The completion of a serious number of mega projects, included in the first KDP, which for several reason are delayed and not finished yet.
- To minimize the imbalances due to economic reforms by encouraging the private sector activities in order to play a bigger role in the country’s development process.
- To realize the country’s strategic vision through the implementation of new mega projects.
- The 2015-2020 plan includes about 500 projects.
- Kuwait National Development Plan – K.N.D.P.
- A Unified Direction for a Prosperous, Sustainable Future
Kuwait is an Arab state in Middle East. With an oil based economy has one of the highest incomes per capita in the world, appeared fourth in the World Bank’s list. Its oil reserves are the sixth largest worldwide. Due to a modern constitution, in use since 1962, is considered as the most democratic Arab country.
Kuwait has a petroleum-based economy. Petroleum, being the main export product, accounts 94% of export revenues and government income.
According to 2016 estimates Kuwait has a population of 4, 2 million, consisted only 30% from Kuwaiti citizens. The rest 70% are expatriates and immigrants.
KUWAIT’S CONSTRUCTION SECTOR – A CONTINUOUS GROWTH.
As Jumana Abdel-Razzaq reports that, according to Timetric’s Construction Intelligence Centre (CIC), the construction sector will continue to grow for the forthcoming five years period and is expected to reach $15.6 billion by 2020.
Compared with the $10.1 billion of 2015 and a growth rate 5.23% for the period 2011 – 2005, the industry indicators will rise to $13.8 billion in 2020, following a growth rate 6.44% (2015-2020).
The construction sector concerning country’s infrastructure accounts 20.5% of the total construction industry. Timetric’s CIC expects infrastructure construction to become the industry’s largest market in 2020.
World Health Organization (WHO) recommends for 22 hospital beds per 10,000 citizens. This target is set by 2030 and the Kuwait’s Ministry of Health made its plans for adopting it. As a first step hospitals’ total bed capacity is expected to reach 12,000 beds by 2020.
New hospitals are opening in 2016 or planned to open the next years, including Jaber Ahmed Al-Jaber Al-Sabah Hospital (9/2016), the New Al-Jahra Hospital, Al-Razi Hospital (expansion), the New Maternity Hospital, Sabah Al-Ahmad Hospital.
The Nine Hospital Expansion Project will add 5,000 beds to the existing capacity and the implementation of this plan has already started.
A new contract was awarded concerning the expansion of the International Airport. The New Terminal Building at Kuwait International Airport will double the airport passenger capacity to 15 million passengers by 2020. Until this New Terminal will be completed and in order to front the continuous traffic rise for the next years, the government decided to build a Passenger Support Building.
There is a remarkable number too for roads, highways and causeways projects, under construction or planned.
There is a serious shortage of housing in Kuwait. In order to reduce the gap between the increasing demands and the existing supply, the government plans to reach the 175,000 units for the state-funded housing by the end of 2020.
The report ‘Kuwait Construction Industry, August 2015’ prepared by Ventures Onsite underlines: ‘major growth drivers for construction in affordable housing, education and healthcare sectors are the increasing population, ongoing projects by the Public Authority of Housing Welfare (PAHW), and the PPP contract model’.
The ‘affordable housing’ is a special government interest focusing to provide house to the families who are unable to afford a home. The PAHW’s plan is to distribute 12,000 houses per year for the next ten years and more. There are 106,000 applications, so far.
The government is planning the development of the South Mutlaa city (29,000 housing units), Jahra Housing Scheme, Sabah Al Ahmad City (1,271 units), Al Ahmed New City (1,475 units), Sulaibikhat Residential City, Jaber Al Ahmed City.
Additionally, 45,000 housing units is also planned as part of the government’s five-year development plan (2015-2020).
Along with the focus on housing, the government will also dedicate funds to the healthcare and educational sectors, both of which are lagging behind due to the country’s growing population. The crowded public school system has led the government to move forward on a host of investments in the construction of new schools and refurbishment, and expansion of existing schools and universities.
KDP – KUWAIT DEVELOPMENT PLAN 2015-20
In August 2014, the government of Kuwait outlined of the country’s second five-year development plan. Then, in February 2015 announced a $117.65bn (KD34.15bn) strategy.
The Kuwait Development Plan (KDP) 2015-20 targeting to achieve major economic reforms, will move towards two mail directions: to empower the private sector and to implement a serious number of important projects.
The KDP will focus on more than 500 projects and key developments intending to build core infrastructure, utilities and housing across Kuwait and to expand the country’s vital oil and gas sector. The government has acknowledged that the National Development Plan (NDP) 2010-14 was not successfully completed, therefore a large number of projects from the previous plan have been included under the new strategy. According to the new plan pulls 421 projects from the previous plan and identifies 92 new projects that will be implemented within the next five years.
One of the biggest projects under the new development plan is a $20bn metro rail network, construction is expected to begin in 2017. Another key infrastructure project is the proposed rail network that will link Kuwait with its GCC partners through the GCC rail network. It is a key project because the GCC Rail, a huge $200bn railway project, will connect all six Gulf nations allowing easier and quicker access between each country running through the whole Gulf coast from Kuwait to Oman, through Saudi Arabia, the UAE and branches linking Bahrain and Qatar. The importance of the connection between the Kuwait rail system and the GCC rail network becomes more crucial taking under consideration that the GCC rail network is planned to be in full operation by 2018.
Source: The Oxford Business Group
THE TOP 10 INFRASTRUCTURE PROJECTS IN KUWAIT
- Sheikh Jaber Al Ahmad Al Sabah Causeway – Phase 2 (Doha Link). Cost $7bn. Aimed at reducing traffic congestion by upgrading the road to a motorway standard. Phase two includes preliminary and detailed design for the four-lane dual carriageway, pedestrian and vehicular bridges.
- Kuwait Metro Project . Cost $7bn. The Kuwait Metro Rail is a 171km long inner city transport running across the city. It is the first metro rail project and the second private-public partnership project launched by the Government of Kuwait since 2009. Estimated to cost $7bn, the government will own 10% of the project and raise 50% of the funds through an initial public offer. Client: Ministry of Communications, Kuwait Status: Planned.
- Kuwait International Airport Expansion. Cost $7bn. Under the contract, a new terminal for Kuwait International Airport and a new runway will be built plus 30 gates to boost capacity from seven million passengers to 13m by 2016. The airport’s capacity is likely to reach 25m passengers by 2025. Client: Directorate General of Civil Aviation (DGCA) / Ministry of Public Works (MPW), Kuwait Status: Tender for Construction
- Sheikh Jaber Al Ahmed Al Sabah Causeway – Phase 1 (Subiya Causeway). Cost $2.6bn. The causeway, which will link Kuwait to Silk City, and the $7bn Kuwait City Metro, is scheduled for completion in 2018 and 2019. Phase one consists of traffic and transportation studies for widening and upgrading the highway to an uninterrupted motorway; Client: Ministry of Public Works (MPW), Kuwait Status: Construction.
- Umm al Hayman Wastewater Treatment Plant (WWTP) Expansion. Cost $1.73m Under the new PPP model – introduced last year as part of a wide revamp and simplification of the country’s permission and foreign investmewnt rules – Kuwait is hoping to award the delayed KD442m Umm Al-Hayman Wastewater Treatment Plant in the fourth quarter of this year. Client: Ministry of Public Works (MPW), Kuwait / Partnerships Technical Bureau (PTB) Status: Design.
- Boubyan Island – Phase 1 (Stage 3). Cost $1.5bn. Boubyan Island Seaport Project involves design and construction of a 33km dual three-lane carriageway linking the new Boubyan Seaport on the east coast of Boubyan Island with the Subiyan-Iraq Road on Kuwait mainland. Client: Mega Projects Agency (MPA)/Ministry of Public Works (MPW), Kuwait Status: Design.
- Kuwait New Refinery Project (NRP) – Package 5 – Marine Works. Cost $1.56bn Downstream operator Kuwait National Petroleum Co. (KNPC) on July 28 awarded four of the five main construction contracts, worth a total S$11.5bn, on its long-awaited flagship New Refinery Project (NRP), offering the promise of an end to a decade of delays. Client: Kuwait National Petroleum Company (KNPC).Status: Tender for Construction
- Jahra Street Upgrade. Cost $925m. Upgrading the road to the standard specifications of highway according to the latest international standards. Length of Al – Jahra Road Project: 11.24km, Vertical 3.42km, Junctions and ramps 17.31km, Service road 15.14km, 5 free intersection, 7 roundabouts.The project is divided into 5 sequential phases. Consultant Louis Berger Group Inc., in JV with Pan Arab Consulting. Client: Ministry of Public Works (MPW), Kuwait Status: Construction
- Jamal Abdul Nasser Street. Cost $800m. Improvements include construction of 11.2km of 6 to 8 lanes limited access highway for Jahra Road; 3.4km of 4 to 6 lanes link roads; 17.3km of one to three lanes ramps for interchanges; and 15.1km of mostly six lanes service roads. The viaduct portion includes 7.3km for mainline Jahra Road; 2.4km for link roads and 8km for ramps. Client: Ministry of Public Works (MPW), Kuwait Status: Construction
- Kuwait New Refinery Project (NRP) – Dredging and Reclamation. Cost $640m. Van Oord won the land reclamation in March last year, which involves the reclamation of land for the construction of a new refinery. The refinery will produce 615,000 barrels a day and is the fist phase of a multi-billion investment programme in this new refinery. Client: Kuwait National Petroleum Company (KNPC) Status: Construction
K.N.D.P. – Kuwait National Development Plan
A Unified Direction for a Prosperous, Sustainable Future
The Kuwait National Development Plan sets the nation’s long-term development priorities. It is organized around five themes, or desired outcomes, and seven pillars, or areas of focus for investment and improvement. Each pillar has a number of strategic programs and projects that are designed to have the most impact on achieving the vision of a New Kuwait.
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