KUWAIT -- Kuwait's Deputy Prime Minister for Economic Affairs, Minister of State for Development Affairs and Minister of State for Housing Affairs Sheikh Ahmad Fahad Al-Ahmad Al-Sabah said Tuesday his government signed contracts involving more than KD two billion to implement several vital projects envisaged in the development plan.
"These projects are part of the country's quest for transformation into a leading international financial, commercial and service hub," Sheikh Ahamd told reporters here.
He made the remarks after the signing ceremony of a contract between the Directorate General of Civil Aviation (DGCA) and the developer of the first stage of the project to launch Kuwait Cargo City at Kuwait International Airport (KIA) "The development projects focus on improving the infrastructure and the public utilities nationwide particularly the land, sea and air ports this year and the coming year," the minister pointed out.
"Together with the contract, signed a few days ago to implement the project to upgrade the Boubyan Harbor, the signing of the contract on development of the Cargo City today mark essential strides towards the improvement of the utilities.
"The government seeks to integrate the cement construction with the service construction with a view to realizing comprehensive development.
"The government is set to sign this year a range of contracts in the areas of customs, taxes, e-communication and aviation; it attaches great importance to the launching of a third 4.6 km long runway at KIA which will be able to accommodate giant aircraft," Sheikh Ahmad noted.
The project to develop Al-Abdali border crossing will be put up for tendering in the current fiscal year.
"The project, to be in the form of a shareholding company, will mark a milestone on the development of the country's land, sea and air ports," he affirmed.
There are several other key projects in the sectors of healthcare and education.
"By the end of April, 2011, more than 11 new hospitals will be built to add 4,000 beds to the bed capacity of the existing public hospitals.
"The Sabah Al-Salem University, now under construction, will go operational by 2014. The Ministry of Education has slated 105 schools for upgrading during the current FY," Sheikh Ahmad revealed.
The implementation of the development plan in all sectors goes on smoothly and in a balanced way side by side with the government's efforts to overcome the impacts of the global financial crisis.
"My recent meeting with Minister of Finance Mustafa Al-Shimali, Minister of Commerce and Industry Ahmad Al-Haroun, chief of Kuwait Investment Authority and director of Kuwait Stock Exchange (KSE) focused on ways to overcome the challenges brought about by the financial crisis notably the funding strains.
"Coordination is well underway with the Central Bank of Kuwait and the local banks to launch a fund for local development which could help find solutions to the funding strains and create an atmosphere conducive to the operation of the shareholding companies," he said.
Dealing with the contracts signed in the first four months of the current FY, Sheikh Ahmad said they concerned the construction of Al-Sabyia station, Sheikh Jaber Al-Ahmad Hospital, Boubyan Harbor, and new housing cities.
"The government signed four contracts to launch new housing cities consisting of more than 22,000 units and is preparing for launching a shareholding company to launch the cost-effective housing project.
"The recently-adopted privatization law will be first implemented in the medium-size projects in such areas as the post and land-based communications where the local shareholding companies will be the major beneficiaries," Sheikh Ahmad added.
On his part, Minister of Communication and Minister of State for National Assembly Affairs Dr. Mohammad Mohsen Al-Busairi said the first stage of the Cargo City project cost up to KD 35 million.
"This stage will take 400 days to complete," the minister said, noting that the second stage was not tied to it.
Al-Busairi made the remarks after the signing ceremony of a contract between the Directorate General of Civil Aviation (DGCA) and the First Kuwaiti General Trading Contracting Company (FKTC) to develop of the first stage of the Kuwait Cargo City project at Kuwait International Airport (KIA) "After completing the project in the coming two years, KIA will be a brand-new airport and completely different from the existing one in terms of its handling capacity, services and facilities.
"The airport will be able to accommodate huge aircraft and larger numbers of passengers particularly after building the third runway," he pointed out.
"The studies relating to the runway are about to complete and the project will be put up for tendering soon. This project gained momentum after the decision to put off the upgrading of the second runway.
"The site of Terminal 2 has been turned over to the Ministry of Public Works after amending it in coordination with the DGCA. The handling capacity of the terminal tops 25 million passengers a year, which could expand to 45 million passengers within 15 years," Al-Busairi revealed. As for the national railway and underground project, he said the envelopes of bids would be opened next week and the project would go operational by 2017 before being hooked up to the regional railway network.
"The State of Kuwait and the Arabian Gulf region at large are poised to enter a new era of major economic boom. Kuwait is striving to become the focal point of this boom through the modernization of its integrated land, sea and air transport network.
"The Cargo City will provide services not only on the national level but on the regional one as well. With its strategic geographic location, the country is entitled to become a regional communication hub," Al-Busairi went on to say.
The contract signed today by DGCA and FKTC to launch the first stage of the Cargo City on an area of three million sq meters - the largest such cities in the Arabian Gulf area - is among the top projects on the country's five-year development agenda.
© KUNA (Kuwait News Agency) 2010
