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Largest share of KD 10.2b goes for housing projects
KUWAIT CITY, Dec 5: An official report revealed a government plan to implement about 56 huge projects over the next four years, at a total cost of about 23 billion dinars, the largest share of which goes for housing projects – about 10.2 billion dinars for 12 projects, reports Al- Qabas daily. The plan will also include the implementation of about 10 oil projects at a cost of 5.8 billion dinars during the same period, in addition to a number of development projects with a total cost of 7 billion dinars. Informed sources said that what is new in government projects during the coming period is an increase in reliance on the private sector in implementing the bulk of projects, which would increase the percentage of private sector participation in the national economy.
The report stressed that the coming period will witness serious steps, whether legislative or executive, to involve the private sector in housing projects, thus contributing to the development of radical solutions to this problem that has been facing the government for many years, as a draft law is being prepared to provide housing lands and involve the private sector in housing projects.
Work will be done in preparing the infrastructure, buildings, and planning for a number of new residential cities, such as Sabah Al-Ahmad, Jaber Al-Ahmad, and the South Sa’ad Al-Abdullah cities, in addition to Al-Wafra, Al-Mutla’a, and West and South Abdullah Al-Mubarak cities. The affordable housing project, whose completion cost is about 1.039 billion dinars, will also be implemented. The authority in charge of implementing these projects will be the Public Authority for Housing Welfare.
The report added that the cost of the projects to be implemented in the budget for the current fiscal year 2022-2023 amounts to about 1.3 billion dinars. The sources said that the increase in capital spending is linked to government steps to enhance public finances with tools that enhance capital spending by resorting to borrowing from the markets.
Among the legislative requirements of the government’s work program was a draft law authorizing the government to contract public loans and financing operations from local and global financial markets. The following seven projects will be offered for implementation by the private sector through public bidding – the workers city project, Al-Saffarin Market, Air Cargo City Project, the educational and cultural center on Abdullah Al-Ahmad Street, developing the waterfront (Al-Jahra), developing Mubarakiya markets and car parks and studying the development of the structural plan for Sulaibikhat Bay.