Kuwait to sign 1bn dollars contract for South Al Mutlaa City project
Category: Information

Kuwait is expected to sign within two weeks a $1 billion contract with Italy's Salini Impregilo and Turkey's Limak Construction for its planned South Al Mutlaa City project, an official said on Wednesday. It is the first phase of the planned 100,000 square kilometre urban development, which is situated in central Kuwait and is expected to house around 400,000 residents when completed.

Despite being one of the world's richest countries per capita and providing citizens with a lavish cradle-to-grave welfare state, Kuwait suffers a significant shortage of government-funded housing which particularly impacts young people, who can find themselves on a waiting list for years.

The South Al Mutlaa City contract will cover construction of a road and other infrastructure and be funded by the Kuwaiti government from its own reserves, Naser Khraibut, director of planning at the country's Public Authority for Housing Welfare, told reporters on the sidelines of a conference in Dubai.

Costs for building infrastructure and public buildings in the city has been estimated at around $20 billion.

"Other packages we're now in the process of prequalification for contractors to tender," said Khraibut.

The Gulf state will also sign a contract this month worth between $80 million and $90 million with Hill International to manage the building of the entire city, Khraibut said.

Meanwhile, Kuwait is also designing and completing an economic study for the planned South Saad Abdullah City, which will cover 60 square kilometres.

The $10 billion to $15 billion cost of the project will be financed through a special purpose vehicle jointly established by the Kuwaiti and South Korean governments, Khraibut said.



25 May, 2016 0 864
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