PROJECTS: Kuwait introduces curbs on new projects

No funds for projects without feasibility study

  
Image used for illustrative purpose. Health and Safety supervisors wear protective masks, following the outbreak of the coronavirus disease (COVID-19), at a construction worksite in Ahmadi, Kuwait March 28, 2020.

Image used for illustrative purpose. Health and Safety supervisors wear protective masks, following the outbreak of the coronavirus disease (COVID-19), at a construction worksite in Ahmadi, Kuwait March 28, 2020.

REUTERS/Stephanie McGehee

Kuwait has told its government offices to submit feasibility studies for all new projects before they can get funding as part of new austerity measures spurred by weak oil prices and the spread of Coronavirus, a local newspaper said on Sunday.

In a letter, the Kuwaiti Finance Ministry asked all ministries and other government institutions not to seek funds for any new project in construction and other sectors before they conduct a feasibility study in coordination with the Finance Ministry, the Arabic language daily Alanba said, quoting official sources.

"The letter asked all ministries and other public establishments to prepare feasibility studies for all their new projects when they seek funds for them," it said.

It also asked them to list all new projects, mainly in construction, in accordance with their priority so the Finance Ministry will approve those deemed necessary.

"The Ministry stressed that feasibility studies and project lists are a pre-requisite for the approval of funds for those projects...projects submitted to the Finance Ministry without feasibility studies will not be given financial allocations," the report added.

It noted that such rules would help in executing projects on time, avoiding further project delays, and achieving maximum economic and financial returns from projects.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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