Ministerial decision issued tied to cost of land and berths of Kuwait Ports Authority

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How to use land belonging to state?

KUWAIT CITY, Nov 30: Governmental meetings are ongoing with the aim of reformulating contracts for the use of all land belonging to the state in order to raise their prices in a way that achieves the public interest, reports Al-Qabas daily. The Public Authority for Industry (PAI) informed the Minister of Commerce and Industry Mazen Al- Nahedh that the authority is in the process of approving the first phase of the advisory study to re-estimate the charges for using plots and the service fees provided by the authority to others. The authority explained that the study included the following stages –

1. The first stage includes a study of re-estimating the consideration for usufruct of land and service fees included in Cabinet resolution No. 1121, amended by Resolution No. 1231/2015, and estimating other new service fees not included in the aforementioned decision, and the potential alternatives to maximize the return achieved from qualified sites by the private sector after returning it to the authority, the feasibility of re-offering the usufruct of the withdrawn plots that are not allocated to the public auction, and the evaluation methods.

2. The second stage involves re-estimating the fees for using seawater for cooling purposes in industrial facilities in light of law No. 20/2016 regarding determining the tariff for the electricity and water units.

3. The third stage includes methodologies and alternatives for pricing model industrial estate plots, researching and proposing new sources of revenue for the authority, and researching and proposing mechanisms to ensure the sustainability of the growth of the authority’s revenues.

The authority went on to explain that ministerial Resolution No. HP/7/2019, which was issued on July 25, 2019, includes the formation of a committee to draft a proposal for project contracts with the private sector that regulates the technical, administrative and legal relationship with the management of the Public Authority for Industry.

The committee prepared and drafted templates for new contracts concluded by the Public Authority for Industry with the private sector projects. Also, the Fatwa and Legislation Department was addressed on 11/7/2021 with Letter No. 2/2975/2021 to express legal opinion on standardized contract forms prepared by the committee in charge of drafting model contracts for activities supervised by the authority, studying and sorting them in the appropriate legal form, in light of the decision of the Board of Directors of the authority in this regard.

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