Kuwait to award slew of contracts
KUWAIT CITY, July 22, 2016 – Kuwait will award USD 27 billion worth of projects in the remainder of 2016, building on USD 7.5 billion in awards so far this year, the National Bank of Kuwait said in a report on Thursday.
The hydrocarbons industry and the power and water sector awards together represent the bulk of contracts, with phase two of Kuwait Oil Company’s Jurassic non-associated oil and gas reserves expansion project, valued at USD 4.1 billion, taking the crown in terms of value in 2016. Kuwait National Petroleum Company’s USD 2.9-billion contract for the construction of an LNG import and regasification terminal, awarded in the first half of this year, comes in second, followed by the Al Zour North independent water and power project.
In total, oil and gas projects to be awarded this year are valued at USD 7.8 billion. Power and water projects represent a combined worth of USD 9.2 billion while the construction sector takes the number-one spot with USD 9.5 billion in contracts in 2016, equal to 34%. Forty-four percent of this year’s projects are at the evaluation stage as of the end of June, with another 27% at the main contract bidding stage. Kuwait’s project market was valued at USD 255 billion at the time of writing, an increase of 2.9% year-on-year.