State to launch IPO of Zour water and power project

KUWAIT: (From left) Cabinet Affairs Minister Anas Al-Saleh, Foreign Minister Sheikh Sabah Al-Khaled Al-Sabah and KDIPA Director General Sheikh Meshaal Jaber Al-Ahmad Al-Sabah attend the closing session of the Kuwait Investment Forum yesterday. — Photo by Yasser Al-Zayyat

KUWAIT: The Public Authority for Industry (PAI) plans to set up a multipurpose industrial city in the state with total expected investments of $6.6 billion, an official said yesterday during a session of the Kuwait Investment Forum. PAI Acting General Manager Abdulkareem Taqi said that the government would put in place the infrastructure for the city at an estimated cost of $600 million and would target around $6 billion in investments from the private sector to develop the bulk of the project.

The Al-Nayeem industrial city, to be located 70 km west of the capital Kuwait City, will include industrial facilities as well as residential and leisure projects, Taqi said, adding that the city would be able to house 50,000 people. The official said that infrastructure work for the project is expected to be completed by 2021. He said Nayeem will offer easy access to the Mubarak Al-Kabeer Port, and the possibility to attract international expertise in establishing and managing the city.

"It marks our focus on shifting from creating industrial zones to smart integrated cities that complement the goals of Vision 2035. The Al-Nayeem industrial city will focus on diversifying our industrial base, bringing high-end technology and creating higher value-addition. It will be an innovative, green city development powered by solar energy, and with smart buildings," Taqi added.

Meanwhile, Kuwait plans to begin selling shares in its Al-Zour North Independent Water and Power Project to the public in three months' time, an official told Reuters on the sidelines of the forum. "We are waiting for the regulators' approval of the prospectus (in a month). Two months after the approval, the subscription will start according to the law," said Mutlaq Al-Sane, who heads the Kuwait Authority for Partnership Projects.

The government plans to offer 50 percent of Al-Zour North One, which has a capacity of at least 1,500 MW, to Kuwaiti citizens. Those shares will come out of the 60 percent stake currently owned by sovereign wealth fund, the Kuwait Investment Authority, the Public Institution for Social Security, and the Kuwait Authority for Partnership Projects. The remaining 40 percent is owned by France's Engie, Japan's Sumitomo Corp and Kuwaiti firm AH Al Sagar & Brothers. Kuwait and other Gulf states are promoting independent power projects, in which companies other than public utilities invest in and operate power plants, to reduce the burden on state budgets. - Agencies