Kuwait is planning to build a tourist resort on one of its islands at a cost of around 205 million Kuwaiti dinars ($676 million) as part of an ongoing economic diversification programme, a newspaper in the OPEC producer said on Monday.

The cost of the resort on Falaika Island on the Gulf includes nearly KWD75 million ($247.5 million) for infrastructure and the rest for capital expenses, the Arabic language daily Alqabas said, citing a study by Kuwait’s Touristic Enterprises Company.

The study, which has just been reviewed by the cabinet, proposed the project should be offered to investors on a 30-year lease basis and that the private sector should provide around KWD130 million ($429 million) in funding.

It said the project comprises a 250-room family resort, a 180-room luxury hotel, 150 chalets, a 5,000 sqm area for rental purposes, a multi-purpose hall, sport facilities, shops, recreation centres, a marina and a public beach.

(Writing by Nadim Kawach; Editing by Anoop Menon)