Sep 23 2010
Research and Markets has announced the addition of the "Kuwait Infrastructure Report Q4 2010" report to their offering.
(http://www.researchandmarkets.com/research/339597/kuwait_infrastruct)
Kuwait Infrastructure Report provides industry professionals and strategists, corporate analysts, infrastructure associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Kuwait's infrastructure industry.
"While the recent passing of a privatisation law and a government commitment to mobilising a US$108bn infrastructure package certainly provide cause for optimism, we nonetheless maintain our core view that in the short to medium-term (2010-2014) at least, political and bureaucratic hurdles will continue to deter much-needed private investment in Kuwait's infrastructure sector.
Following the release of new 2008 data we have upwardly revised our forecast for Kuwait's construction industry value, pointing to a more favourable outlook for the Persian Gulf country construction sector in 2010. We now expect Kuwait's construction industry value to grow by 2.4% in 2010 in real terms and to experience stable average real growth of 2.36% over the duration of the 2010-2014 forecast period. Recent major developments:
- In May 2010, a long-awaited privatisation law was passed, which it is hoped will provide a boost to the country's much-maligned business environment and long-term foreign direct investment (FDI) prospects. Importantly, the law paves the way for foreign companies to hold a stake in Kuwait's power sector for the first time, opening up the country's power sector to crucial private sector capital and expertise. Still, however encouraging this positive step forward, optimism must be tempered given the widespread political opposition to what was already a considerably watered down legislative bill, which we believe will continue to affect foreign investor interest in the short to medium-term
- Following the approval of a wide-ranging US$108bn infrastructure package in February 2010 there is reason to hope that Kuwait is on the brink of an infrastructure boom. In particular, a slew of planned power projects including a plan to tender an estimated US$17.4bn worth of power generation and desalination projects with the aim of installing 14,260 megawatts (MW) of new generating capacity by 2017 provide hope that the industry is on the verge of seeing the implementation of much-needed projects.
- The progress of Kuwait's first independent power and water project (IWPP), for which a tender was launched early 2010, will be watched closely by many foreign investors for its potential to act as a bellwether for Kuwait's future energy strategy. With investors due to submit indications of interest (IOIs) in June 2010 for a 40% stake in the 1,500MW Al-Zour power and desalination plant, much significance will be attached to the project's progress and implementation. Indeed, if successful the project has the potential to pave the way for greater private sector participation in Kuwait's infrastructure development.
The defining four-year development plan albeit reduced from US$129bn leaves few sub-sectors untouched, with rail, power, oil, water, health and education all slated for investment as the government develops new ports and cities. The smooth implementation of the development plans will be paramount in a country where projects have been plagued by disputes between the executive and legislature. The litany of projects or at least those that come to fruition will lift growth Kuwait's construction sector up from US$2.36bn in 2010 by an average of 2.4% year-on-year (y-o-y) to US$3bn in 2014 according to the author's calculations.
Source: http://www.researchandmarkets.com/