KUWAIT CITY, Oct 17: Public Authority for Housing Welfare has entered into a partnership agreement with J3 Company to manage and develop the lands and real estate investment located in Jaber Al-Ahmad Residential City, reports Al-Rai daily. The signing of this agreement is within the framework of its subsequent procedures for signing the commitment document for the investment opportunity concluded last July with the winning investor represented by the consortium of Al-Mabani Company, Privatization Holding Company and National Holding Industries Group.
On the sidelines of the contract signing, Minister of Public Works and the Minister of State for Housing Affairs Dr Rana Al-Faris affirmed that offering and contracting procedures have been carried out in accordance with Law No. 47 of 1993 and investment regulations issued under the Ministerial Resolution No. (32) of 2016 and its amendments, as well as the Partnership Law between Public and Private Sectors No. (116) of 2014 and its executive regulations. She added the total cost of developing the project in Jaber Al- Ahmad Residential City amounted to about 156.3 million Kuwaiti dinars, and it’s being invested by the project company without any financial burden on the Public Authority for Housing Welfare.
She indicated the total revenue expected from the project by Public Authority for Housing Welfare during the partnership period in the entire investment period of 25 years is estimated at 54.6 million Kuwaiti dinars. Al-Faris praised Kuwait banking sector for its role in supporting the financial resources of Public Authority for Housing Welfare.
In this regard, Deputy Director General for Investment Affairs and Private Sector Projects Hadeel Bin Naji said the investment opportunity is located on an area of 217,272 square meters and includes a commercial complex (Mall) with a total building area of 323,000 square meters, 72 attached villas and 204 apartments.
She explained that partnership projects reduce the financial and administrative burden on Public Authority for Housing Welfare by converting non-income-generating lands into assets with remunerative and growing returns, while ensuring access to the highest quality standards through competition among private companies, and creating job and investment opportunities for Kuwaiti youth. Bin Naji described the partnership projects between public sector and private sector as positive, because of their impact on raising the quality of life in residential cities by providing services and goods required through private sector, according to feasibility studies prepared by the Public Authority for Housing Welfare.