------------- -------------- ------------------- -------------------
Saturday , December 3 2022

Govt looking for int’l company to develop Entertainment City

This post has been read 6980 times!

Project implementation to go on partnership model

KUWAIT CITY, Sept 8: The Entertainment City project will be implemented through the government and the private sector partnership, as the private sector will be the developer and operator with the support and partnership of the state, reports Al- Qabas daily quoting reliable sources. The sources said the study on the implementation of the project viewed by the Ministry of Finance in the Council of Ministers recently concluded that it is necessary to go about the project on the partnership model, since this would overcome the problem of financial feasibility to establish the project individually, whether through the government or the private sector. Moreover, the offers will be attractive to international companies specialized in the field of entertainment cities with more than 30 years of experience to ensure the establishment of an entertainment city at the highest level worthy of the aspirations of the Kuwaiti people.

he sources indicated that the reason for involving the private sector is due to its economic non-feasibility, especially since most of the international entertainment cities are often built in cooperation between the public and private sectors. This is because of its investment nature as it requires huge capital on a regular basis to finance its operations, in addition to the fact that the financial returns may be unrewarding, but the economic and social returns of the project are high. According to the proposed model of the project, the government will provide the capital and infrastructure, which may reach, according to studies, about 75 million dinars.

The study identified a number of procedures required to implement the project, including determining the project land and working on the issuance of the allotment contract, the cadastral plan and all the necessary documents; transfer of land ownership to the State Property Department in the Ministry of Finance and the project will be offered to the private sector under the State Property Regulation Law, Article 17. Article 17 stipulates it is permissible to lease the state’s private real estate or movable property for a nominal fee or less than the same wage to a legal or natural person with the intention of achieving a purpose of public benefit, and the lease is based on the proposal of the Minister or the head of the competent authority or institution and the approval of the Council of Ministers. In this case, the lease term may not exceed twenty years, and it may be renewed for other periods for the same legal or natural person with the approval of the Council of Ministers. The leased property must remain designated for the purposes for which it was leased for throughout the lease term. If the property is not allocated for the aforementioned purposes or its allocation has changed, the lease contracts shall be considered rescinded on their own without the need for a court ruling, warning or warning, and these properties are vacated by the administrative way.

The provision of the previous paragraph applies to projects approved in the build-operate-transfer system to the state or the build-own-operate transfer- of-ownership-to-state system or any other similar system established on state real estate properties.

Moreover, the terms highlight adapting the project requirements to match the perception of neighboring projects (Sulaibikhat Beach), starting to set the terms and conditions of submission and setting up a comparison mechanism between the different offers in cooperation with the consulting companies, coordination with the private sector to study and inventory the current obstacles and to survey the opinion of experts in this type of project.

The sources said that the study concluded that 5 criteria should be met by the government’s strategic partner for the implementation of the entertainment city project, which are as follows saying it should be a foreign company, must have at least 30 years of experience in the development and management of international recreational facilities, must have established a recreational facility outside the country of origin, must have worked on similar projects with an area of not less than two square and that the purposes of establishing and operating the company include the completion of the works referred to in this project.

Check Also

New & modern, Entertainment City plan gets Municipality nod

This post has been read 6981 times! ‘Project to be built on 2,650m sq mts’ …