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Thursday , August 18 2022

GPFA’s report cites 7 observations on areas for food storage purpose

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‘Abide by commitment that it is not permissible to dispose of land’

KUWAIT CITY, Nov 18: The Government Performance Follow-up Agency (GPFA) has submitted a report to the Cabinet with seven observations regarding the areas designated for food storage purposes in the country, reports Al-Qabas daily.

GPFA recommended allocating a marine berth in Mubarak Al-Kabeer Port for the benefit of the Kuwait Flour Mills and Bakeries Company and the Kuwait Catering Company, as well as the construction of warehouses and silos inside the aforementioned port.

It demanded that the Ministry of Finance’s State Property Department, when concluding the land contract for the benefit of the company entrusted with the establishment of public storage areas, abide by the commitment that it is not permissible to dispose of the land in any way, and the land shall return to the state in the event of liquidation or dissolution of the company, provided that this stipulates expressly the necessary legal tool.

GPFA called on the Kuwait Municipality to coordinate with all parties to stop any procedures on the land plots that were previously allocated for unused storage purposes, and not to allocate any new land plots until the Kuwait Investment Authority finishes studying it and determines the land needed for the project.

Storage It summarized its observations regarding the provision of strategic storage areas for the establishment of silos and warehouses for food and other storage purposes in the following manner:

  1. Lack of optimal use of the land designated for food storage for some institutions
  2. Non-regulation of the mechanism and procedures for allocating land for the purpose of storage, and not specifying a body competent to supervise and manage in this regard
  3. Weak control and supervision by the authorities on private random warehouses and their lack of organization, in addition to the lack of licenses for them
  4. Lack of tight control and weak procedures, which have led to a change in the allocation of lands and the activities for which these lands were allocated
  5. Failure to address the phenomenon of monopolizing storage activities
  6. Lack of sufficient organized stores for food storage purposes at the state level
  7. High prices for renting warehouses that are currently available In the light of the mandate issued and after coordinating with the concerned authorities, the agency explained that the provision of public warehouses for food and pharmaceutical commodities, medical supplies and others is essential.

They must be managed and operated with the latest systems. They should be available to the public and private sectors to contribute to enhancing food security and security of other strategic goods. Accordingly, the following proposals were put forward:

  1. The state must be the one undertaking the proposal, and implementation and operation of the project in accordance with law No. 49/2016 regarding public tenders.
  2. The project must be put forward by the Public-Private Partnership Projects Authority in accordance with Law No. 116/2014 regarding partnership projects between the public and private sectors, or via a proposal by the Public Authority for Industry in accordance with the law of its establishment.
  3. The project must be put up through bidding in accordance with the Circular No. 4/1997 of the Ministry of Finance.
  4. A closed government joint stock company must be established to undertake the establishment, management and operation of public storage areas for food and pharmaceutical commodities, medical supplies and others.

Nonetheless, the agency is in favor of these proposals, given that the State Treasury does not have to bear the financial burdens for the implementation of the project, the solvency of financing and investment, and the expected increase in the financial return of the state according to supply and demand.

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