Kuwait is expected to re-tender the giant Dabdaba solar power project after nearly one year although it was cancelled by the government on Tuesday due to budget constraints, a local newspaper reported on Wednesday.

The government has entrusted the Ministry of Electricity and Water with the execution of the project after it was withdrawn from the state-owned Kuwait National Petroleum Company, the Arabic language daily Al-Rai said, quoting Ministry sources.

After it receives written approval by the cabinet shortly, the Ministry will consult with the Kuwait Authority for Partnership Projects, which aims to promote joint public-private sector ventures, the paper said.

"The Ministry expects to re-tender the project after one year or little longer...Ministry officials believe they have the technical capabilities but are concerned that the project could now cost more after more than three years of delay," it added.

The report said the oil sector "is in a state of shock" after the cancellation of the project and quoted industry sources as saying the decision will affect the country's "credibility and dissuade many contractors to bid for the project."

Located around 160-kilometres west of the capital Kuwait City, the 1.5 gigawatt Dabdaba project is part of a government stategy to expand the share of renewable energy sources of domestic electricity consumption to 15 percent by 2030.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

#Kuwait #Dabdabasolarpower #Renewableenergy

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