KUWAIT CITY, Jan 20: The Board of Directors of the Central Agency for Public Tenders (CAPT) has approved the Kuwait Authority for Partnership Projects’ (KAPP) request to launch a public tender for “preparing consultancy studies related to the subscription and transfer of ownership of shares allocated to Kuwaiti citizens in the Umm Al-Hayman Wastewater Treatment Company.”

The decision, made during CAPT’s meeting on Wednesday, confirms the article on the transfer of ownership of Umm Al-Hayman shares to citizens soon” published by the daily last month. CAPT’s approval allows KAPP to carry out the procedures through a public tender, in accordance with Article 17 of the Public Tenders Law No. 49/2016, which permits contracting via public tender through competitive negotiation or a request for proposals. The Board’s decision came after reconsidering KAPP’s request and reviewing its letter containing the required amendments, with the acting Director General Asma Al Mousa representing KAPP.

Previously, the Board had postponed the decision on December 22, awaiting a follow-up letter from KAPP outlining the discussed amendments within five working days. This project marks Kuwait’s second major experience in strengthening public-private partnerships, following the first phase of the Zour North Power Plant. The plant is the largest in the southern region and one of the largest regionally, as well as the first in Kuwait to operate using integrated renewable energy.

Biogas generated by the plant provides 50 percent of the electricity required for its operations. The facility treats 500,000 cubic meters of wastewater daily, with plans for future expansion to a total capacity of 700,000 cubic meters per day. This makes it the largest wastewater treatment plant in Kuwait and the region to operate on a biogas system, fully utilizing the sludge produced during the treatment process and delivering it to beneficiaries. The capital of Umm Al-Hayman Wastewater Treatment Company is approximately KD 49 million, divided into 490 million shares. Ownership is allocated as follows: 10 percent to the Kuwait Investment Authority, 40 percent to a strategic investor, and 50 percent subscribed by the government through the Public-Private Partnership Projects Authority. Citizens will subscribe to around 245 million shares, and the company is set to be listed on the Kuwait Stock Exchange shortly after the subscription period begins.

This pioneering project highlights exceptional public-private collaboration, including partnerships with WTE Wassertechnik GmbH and International Financial Advisors Holding Company (IFA), along with government shareholders. The project has generated substantial investment opportunities, with financing provided by several local, German, and South Korean banks holding varying stakes. The Ministry of Public Works has also contributed as an important partner by funding a portion of the project. This unique financing model is the first of its kind in the region and is expected to encourage local banks to actively participate in future government-led investment opportunities.

By Mohammed Ghanem Al-Seyassah/Arab Times Staff