KUWAIT CITY, March 8: The government might initially save around one billion dinars by privatizing the communications and electricity sectors, reliable sources told Al-Rai daily, adding “once the privatization bill is passed, the government will be spared from carrying out maintenance at electricity plants and paying salaries to engineers and technicians, as well as awarding contracts.”
According to sources, the government wants to privatize the Post Sector and everything related to communications like other GCC countries, “especially since Kuwaitis depend more on the three telecom companies and the internet services they provide.”
The sources said the government will establish a company or a corporation to run the electricity network in the country. “fifty percent stake in the company will be allotted to private sector, in line with conditions that will soon be laid,” they said, noting that government will not hastily privatize the entire electricity sector at one go. Also, consumers will be classified in groups - government, private companies and individual consumers.
Reportedly, the Information, Oil, Public Works and Housing Affairs sectors will be privatized in accordance with rules and a certain mechanism. “The government will supervise and manage the sectors, but the private sector will play a greater role in offering services,” said sources.
There are plans to include several big sectors of the Municipal Affairs ministry in the study too, say sources, adding “the total assets of these sectors will reach KD 4 billion, if the government really launches the privatization drive after the approval of the bill.”
The private sector will help in solving a number of problems in the country, stated sources.
Meanwhile, the Ministry of Electricity and Water (MEW) has been lax in collecting dues worth KD 278 million from consumers during the fiscal year 2008-2009, says Al-Qabas daily citing a report prepared by Audit Bureau.
The daily said it had a copy of the bureau’s report.
In the meantime, the new organizational structure of the Ministry of Communications was referred to the Civil Service Commission after being submitted to the Minister of State for National Assembly Affairs, Minister of Communications Dr Mohammed Al-Baseeri for amendment, reports Al-Shahid daily.
The daily quoting reliable sources added CSC will study the organizational structure, and the changes made in that regard.
Meanwhile, sources from the transportation sector at the Ministry of Communications hinted design on the GCC railway project has been completed, confirming international consultants will present their bids to carry out the project in the next two months, to pave the way for its implementation.
Four billion dinars has been earmarked for the project, and the sector will play a major role in its implementation, sources noted.