Kuwait awarded KD9.7 billion ($32.2 billion) worth of project contracts during 2015, up 20 per cent over the previous year, said an NBK report.
Of this, over half of the contracts signed are related to the oil and gas sector, it reported.
Key projects included the long-delayed new refinery contract at Al-Zour for KD3.9 billion ($12.8 billion) awarded last July and the development of the Lower Fars Heavy Oil production facility in the north of the country for KD1.2 billion ($3.9 billion), the country’s top lender stated, citing data from business intelligence service Meed.
In the transportation sector, the authorities also awarded the KD1.3 billion ($4.3 billion) contract to build the new terminal building at Kuwait International Airport. Once completed, the project should see airport passenger capacity double to 15 million passengers by 2020, it stated.
Looking ahead, 2016 should also be a bumper year, with the authorities planning to sign deals worth KD16.7 billion ($55 billion) before the year-end, NBK said. This comes at a time when Kuwait is expected to record its first actual budget deficit in 16 years, of KD4.7 billion (11.6 per cent of gross domestic product) by the close of FY15/16.
On the power and water sector, NBK said 2016 is expected to be a landmark year for the Kuwait Authority for Partnership Projects (KAPP) as it plans to award KD2 billion ($6.6 billion) worth of public private partnership (PPP) contracts.
With Phase One of Al-Zour North IWPP completed and close to reaching commercial capacity in the coming months, KAPP has issued the main contract bid for Phase Two of the project, which aims to produce 1,800 MW of electricity and 464,100 cu m a day of desalinated water, NBK said.
The main contract bid is set for this month (February), with a planned budget of KD820 million ($2.7 billion).