"The contracting companies found the conditions as discouraging and incapacitating...this pushed the Ministry of Public Works to put the project indefinitely on hold," reliable sources told the Arabic daily Al Rai.
The costs of the second airport terminal project have risen to more than USD 3.6 billion (KWD 1 billion) from its earlier estimated costs of USD 3.2 billion (KWD 900 million), said the daily.
Against this cost, as the first condition, the contractor is required to invest at least 35 percent of the contract's value [USD 1.26 billion (KWD 350 million] in civilian projects under the offset program, added the paper.
Only six international companies had bought the tender documents out of the 19 pre-qualified firms, said the sources.
London-based architectural practice Foster + Partners had designed the new airport, which was due to be launched in 2012.
"Kuwait will be the biggest loser of the project's postponement as this hurts its regional and global reputation and contradicts with plans to turn Kuwait into a regional financial and commercial centre," said a source close to the project.
According to the report, the new terminal will boost the airport's capacity from around eight million passengers per year at present to 13 million in the first stage, to be raised to 25 million and 50 million passengers at later stages.
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