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KPC withdraws proposal to privatize petrol stations KAC to receive report on assets evaluation

KUWAIT CITY, July 15: Kuwait Petroleum Corporation (KPC) has withdrawn its proposal to privatize petrol stations, which was included in its operational budget plan of 2014-2015. The Supreme Petroleum Council has apparently held discussions about building 100 new petrol stations to meet the increasing demand for petrol locally, reports Al-Kuwaitiah daily quoting informed sources from the oil sector. 

 
They said they wondered why KPC has been insisting for years to privatize petrol stations and establish a third company in the market similar to ‘Al-Soor’ and ‘Al-Oula’ companies. They indicated that the studies conducted by KPC and its subsidiaries probably did not support the involvement of private sector in this regard.
 
Meanwhile, a reliable source from Kuwait Airways Corporation (KAC) said the company is expecting to receive a report from ‘Ernest & Young’ company regarding the evaluation of the company’s assets, after Eid Al-Fitr holidays.  He indicated that the company keeps reducing the number of departments based on its plan to restructure the company so that it can achieve profits within four years. He revealed that the company is planning to reduce the number of departments from 16 to 8, adding that some departments have already been merged.

Also:
KUWAIT CITY: Board Chairperson of Yiaco Medical Company Nafel Al-Hithal disclosed the company is the largest importer of medicine in Kuwait, as it supplies to the Ministry of Health and private hospitals while owning over 40 pharmacies in the country, reports Al-Jaridah daily. Al-Hithal revealed the company depends on its operational income from the sale of medicine and medical equipment to health institutions and its chain of pharmacy stores in Kuwait. He said the healthcare sector or medicine importation sector is facing many obstacles like minimum profit margin. He explained the Ministry of Health has specified maximum profit margin of five percent.
 
He pointed out the healthcare sector needs to expedite action on approval of the BOT bill. He said the 50-year operational period is encouraging for entrepreneurs to build hospitals and medical centers. He added the companies had problems with the law in the past because the period of land use was 25 years. He asserted that constructing hospitals is costly, so it requires a long period to recoup the cost and make profit. He added the company will build two medical centers in Jahra and Ahmadi, indicating it has an existing contract with the ministry to manage medical and radiology laboratories in Adan Hospital based on the BOT system.

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