DUBAI: Kuwait would save billions of dollars if it built its planned metro using private finance instead of using traditional procurement, according to the Kuwait Authority for Partnership Projects (KAPP).It conducted a study comparing the life cost of the massive project if it was built through a public-private partnership compared to a traditionally tendered approach, the Al Anba newspaper reported.

It found that the first construction phase of the Kuwait Metro would cost KD4 billion ($13.2 billion) if implemented by the government with an additional KD1.3 billion for operation and maintenance annually for a period of 30 years.

But a public-private partnership (PPP) approach would involve a first phase cost of KD3.476 billion, in addition to KD934.8 million for operation and maintenance annually for a period of 30 years.

The Kuwait Authority for Partnership Projects said the comparison was important in establishing the financial feasibility of the project.

The Kuwait Metro was originally envisaged as a PPP project with construction due to start in 2017, but it has suffered a series of setbacks.

Copyright: Arab News © 2021 All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.