Kuwait is planning to dismantle its Electricity, Water and Renewable Energy Ministry and convert it to a corporation, a newspaper reported on Tuesday.
The plan, the first in the OPEC producer, is intended to slash costs, upgrade efficiency and give more emphasis on renewable energy projects, the Arabic language daily Alqabas said, citing a government document.
The Ministry has asked the Central Agency for Public Tenders (CAPT) to approve a plan to invite bids from global consultancy firms to carry out the restructuring plans, it said.
“The Cabinet has endorsed a plan by the Electricity, Water and Renewable Energy Ministry to become an autonomous corporation, with the right to create government companies that will be involved in power, water and renewable and focus on relevant projects, mainly renewable energy,” the paper said.
It noted that the new entity would also work to slash costs and end government subsidies, which have drained more than 6.7 billion Kuwaiti dinars ($22 billion) from the state coffers over the past five years.
“It will also seek to reduce power and water consumption, which is one of the highest in the world due to the hot weather and the heavy government subsidies,” it added without mentioning when consultancy tenders would be issued.
(Writing by Nadim Kawach; Editing by Anoop Menon)