Kuwait announced it will launch an initial tender for construction of a second terminal at its international airport in coming weeks. Kuwait News Agency (KUNA) said on Monday the project is worth around 700m to 800m Kuwaiti dinars ($2.5bn-$2.9bn).
The state-run news agency quoted the undersecretary for the Ministry of Works, Hossam al-Tahous, as saying that the project should be finished by late 2016. He added that 16 international companies had expressed interest in the project.
“The first stages of the tender will include work on the design and consultancy services,” Tahous said while adding that tenders for the second phase will include construction.
He expressed his hopes that solar panels would be able to provide around 10% energy needs of the airport terminal.
The oil rich state has been plagued by inefficient planning and wrangling between the cabinet and parliament, paralysing policymaking and blocking important infrastructure and economic development projects.
Many analysts suggested the deal on the airport terminal project comes as a sign of relief for Kuwait which is working hard to break down hurdles for foreign investment.
A parliamentary committee has recommended the government to amend laws regarding public tenders in order to allow foreign companies to participate in biddings directly without the need for a local agent, the English daily Arab Times newspaper reported on Monday.
Kuwait has been able to attract just $1.5bn in foreign investment, or a mere 0.5% of total Gulf inflows in the past decade.