KUWAIT CITY, March 10: “The government will not be able to execute the recently approved development plan due to financial difficulties that will be faced by public stock companies which will implement these development projects, and therefore we presented a draft bill suggesting the capital of Kuwait Fund for Arab Economic Development (KFAED) be increased from KD2 billion to KD10 billion with many amendments on how to grant financial facilities for these development projects,” MP Ahmed Al-Saadoun said in a press conference he held at the Parliament Wednesday.
He added that the government will be able to execute the plan, if it did not succumb to the interest groups who are trying to  influence its decisions, as well as take supportive measures and choose qualified and competent Kuwaiti elements to deal with these projects.

He explained that the major problem in the plan, which was passed as Law No 9/2010, is the change in the method, indicating that the government did not talk about projects it will implement, as it did in the previous plans. “The government only set up the mechanism for implementing projects through the stock market and facilities regulated by Law No 49/1966,” noted Al-Saadoun.
“After a thorough study of the plan, we found that the best solution is to increase capital of KFAED from two billion dinars to ten billion and allocate this increased sum for offering facilities to companies that will be established by Law No 9/2010 or Law No 45/2007 to build low-cost houses and public warehouses.
He explained that the current law gives board chairman of KFAED the right to give loans or issue bonds worth twice the amount of capital (4 billion), but the proposed amendment gives the fund the right to finance companies being established by the State. The proposed amendment also mandates that 60 percent of the loan or bonds be issued to support local development and establish new companies.