Mubasher: Project awards in Kuwait decreased in the first quarter of 2018, as award dates were pushed out to later in the year, according to a recent statement by the National Bank of Kuwait (NBK).
Awarded projects totalled KWD 614 million in Q1-18, falling below the 2017 quarterly average of KWD 1 billion, according to data from MEED Projects.
The transport sector was the largest contributor in Q1-18 with five awards that added KWD 283 million, two of which were of the anticipated regional road projects.
“Construction picked up from the prior quarter, but not as much as anticipated, with a KWD 161 million tally from seven contracts,” NBK’s report said.
It is expected for transport projects to witness more delays than anticipated due to the restructuring of the Public Authority for Roads and Transportation (PART), which is the state agency responsible for the tendering of these projects.
NBK added: “As anticipated, two of the regional road projects had been awarded. Deals that included a subproject of the Regional Road South along with the Norther Regional Road from Abdaly Expressway to Future Crossroads (a combined KWD 139 million) propped up the transport sector in Q1-18, after a subdued Q4-17.”
Kuwait’s Public Authority for Housing Welfare (PAHW) awarded three contracts for infrastructure works on housing plots in South Al Mutlaa and South Al Abdullah Al Mubarak.
Meanwhile, the construction sector in Kuwait is expected to increase project awards in 2018, with up to KWD 1.8 billion in anticipated deals for 2018.
Deals that are currently in the bidding phase include PAHW’s Jahra and Sulaibiya Low-Cost Housing City valued at KWD 470 million, the National Guard’s Kazema Camp worth KWD 300 million, in addition to three private-public partnership (PPP) projects.
The Kuwait Authority for Partnership Projects is tendering a first of its kind on a regional level with Schools Development Program project valued at KWD 20 million.
In the power and water sector, it showed a reduced activity in Q1-18, with awards of small-scale projects.
Four contracts were awarded, three of which were in the power sector, though they were minor in size. The single water contract was awarded by the MPW, related to water treatment tanks and was valued at KWD 77 million.
In the oil and gas level, NBK’s report noted that “With awards of just KWD 70 million, the slowest in three quarters, the oil and gas sector is not expected to witness more than KWD 500 million in awards this year.”
