Gov’t proposes major reforms for public chalets, parks management

04/09/2024

Gov’t proposes major reforms for public chalets, parks management

KUWAIT CITY, Sept 4: In a significant move aimed at optimizing the management of state properties, the Kuwaiti government has proposed several key changes to its approach concerning public chalets and parks. According to informed sources, the Ministry of Finance has been directed to re-tender projects for public chalets built on state land, whose contracts have expired. This recommendation comes as part of a broader strategy to ensure that state assets are managed efficiently and transparently. The focus is on ensuring new tenants of these chalets adhere strictly to contractual terms and maintain the properties to high standards. Additionally, the Ministry of Finance will review contracts related to the management, exploitation, and maintenance of various public facilities, including those involving utilities. One of the pressing issues is the impending expiration of temporary contracts for public parks, set to end in the coming months.

Temporary
Last year, investors managing these parks were granted temporary licenses as part of a new procedural framework designed to address the status of contracts that have been under the Build-Operate-Transfer (BOT) system and have expired since 2016. This temporary arrangement was intended to prevent disputes with subcontractors and provide a window to resolve outstanding issues. With these temporary licenses nearing their end, the Ministry of Finance is expected to take decisive action to implement a new procedural approach.

This includes possibly re-offering contracts through public auctions, in line with guidelines set by the Government Performance Follow- up Agency. Such auctions will likely involve specialized companies and aim to achieve the highest revenue for the state while ensuring fairness among investors. The proposed re-offering of public park contracts will affect around nine chalet parks, with contract terms having ended between 2016 and 2018. The aim is to replace temporary measures with permanent mechanisms that align with the state’s objectives, including enhancing non-oil public revenues and improving tourism facilities.

The government has also instructed the Ministry of Finance to review and take necessary legal actions concerning the management and maintenance contracts of some public facilities, in partnership with the Public Utilities Company. This review is part of a broader effort to streamline operations and resolve overlapping responsibilities among government agencies, particularly between the Ministry of Finance and the Supreme Committee for Partnership Projects between the Public and Private Sectors. Ultimately, these steps are intended to ensure that state assets are managed effectively, disputes are minimized, and revenue generation is optimized, aligning with the state’s strategic goals for growth and development

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Gov’t proposes major reforms for public chalets, parks management

‘Finance’ directed to re-tender projects with expired contracts