Solid Waste Management Project

Partnership Technical Bureau (PTB) invited, on 15 September 2013, investors of competent local, regional and global companies to express their interest of participation in the municipal solid waste management project. The deadline for receiving the Expression of Interest (EOI), as specified by PTB, is 17 November 2013.

PTB announced features of this investment opportunity for investors as follows:

Project objective

Treatment of municipal (household) solid waste in the State of Kuwait in accordance with best international systems, to protect environment and natural resources, and reduce lands wasted in landfill areas at its current status.

Project Location and Area

Kabd area, 25 kilometers from Kuwait City, with estimated total area of 500,000 square meters

Scope of Solid Waste Management

• Waste treatment by sorting of recyclable waste


• Burning of residue waste using incinerators, to be converted into electrical power


• Ensuring that the final residue from the incinerators is interred in approved landfill areas


• Design, finance, build, operate, maintain and transfer, in accordance with Public-Private Partnership (PPP) program, for 25 years in addition to a 4-year period for designing and building, as provided by Law No. 7 of 2008


• Ministry of Electricity and Water (MEW) will purchase electric power produced

Waste Recycling Capacity

3,000 ton per day

It is worth mentioning that PTB has signed a contract with Baker Tilly Kuwait to accomplish the consultancy study for this project. Baker Tilly Kuwait is a member of UK-based Baker Tilly International, the world’s 8th largest audit, tax and consulting network in terms of revenue.

Source: PTB’s Advertisement in Al-Qabas newspaper dated 15 September, Economics Section, Page 33

Low Cost Housing PPP Project

An invitation from the Public Authority for Housing Welfare (PAHW) in the State of Kuwait has been published in Al Kuwait Al Youm (official gazette), Volume No. 1147 dated 1 September 2013, inviting Baker Tilly Kuwait consortium and other consortiums to participate in the contest to provide consultancy services to develop the tendering documents, and incorporate a company for the construction, operation, and maintenance of the Low Cost Housing Project in Kuwait.

This low cost housing project will be based on Public Private Partnership (PPP). This project comes under the Kuwait Development Plan (KDP) 2030.

The Kuwait government encourages achieving such mega projects with the participation of the private sector through Public Private Partnership (PPP).

PAHW has set 20 October 2013 as the deadline to submit the technical and financial proposals.

Source: Kuwait Gazette, Dated: 01 September 2013, Page No. 38

12 Work Priorities Topped by the Insolvency System

Official sources revealed to Al-Qabas that the Minister of Commerce and Industry, Anas Al-Saleh, together with a group of the ministry leaders, has identified 12 priorities that will constitute “a road map” of the ministry work during the coming period.

The same sources indicated that Al-Saleh will address each of the leaders responsible for individual priorities to develop a clear strategy for the implementation of the necessary actions at the relevant division or department according to a clear timetable, in order to insure that each leader shall assume full responsibilities.

However, the sources stressed that these priorities certainly do not mean that the ministry will not pay attention to other files and tasks that fall under the supervision and control of the Ministry.

The sources noted that the automation of the ministry divisions and the completion of a system of insolvency and bankruptcy laws are on the top of priorities. These are followed by the development of «two new bodies» for «standardization and specifications, and insurance» together with a new peculiar legislative structure to organize their work. Priorities also include shortening the waiting period of the eligible applicants for industrial plots.

The twelve priorities are stated as follows:

1. Executive Regulation of the Companies Law, which is expected to be completed before the end of September.


2. Executive Regulation of the Business Licenses Law, which ensures a high speed issuing the majority of business licenses within a few days. The Regulation is expected to be completed before the end of September.


3. Executive Regulation of the Supervision on Commodities Trading Law


4. The completion of the instant connection with the authorities concerned with issuing business licenses such as the Ministry of Social Affairs and Labor, Municipality of Kuwait, Kuwait Fire Service Directorate and the Public Authority for Civil Information. This is to ensure that the approvals of these authorities can be issued directly and instantaneously, without the need for the applicant to visit them. This is expected to be completed by the first week of September.


5. Automation of the entire Division of Commercial Companies and improving the business environment thereof.


6. Moving forward in developing the technological infrastructure at the Ministry of Commerce and Industry; equipping the Ministry with up-to-date means of action; and improving the staff performance through enrolling them to training programs that will promote performance level.


7. Developing a system of laws on insolvency, bankruptcy and protecting the rights of creditors, in coordination with the World Bank.


8. Developing the infrastructure necessary for small and medium-sized enterprises. This will be backed by the Board of Directors of the newly formed National Fund for Supporting Small and Medium Enterprises and through activating its role and hastening its entry into force.


9. Developing the strategy and goals to be achieved by the Ministry of Commerce and Industry within the Kuwait Development Plan (KDP), both in the first phase of KDP, which ends in the first quarter of 2014, and the second phase which will ensue.


10. A new law to regulate the work and activities of insurance companies and the introduction of a new authority to regulate their work.


11. A new law for the introduction of an authority for Standardization and specifications.


12. Shortening the waiting period of the eligible applicants for industrial plots through the expeditious completion of new industrial projects such as a Shadadiyah industrial area and Al-Naayem industrial area.

Source: Al Qabas Newspaper, Page: 25, Dated: 21 August 2013

Corporate Governance Rules

The Capital Markets Authority (CMA) issued a resolution setting the to be applied by the companies subject to CMA supervision.

The Capital Markets Authority in Kuwait has issued Resolution No. 5 of 2013 on 27 June 2013 setting the rules of corporate governance to be applied by the companies subject to CMA supervision. The Resolution has set 11 rules of corporate governance for the companies subject to CMA supervision, each of which consists of a set of principles.

The rules define the general concepts and frameworks of corporate governance to be followed by companies whereas the principles set the requirements and limitations for the application of the rules of governance.

Rule 1: Strengthen Board Composition

Rule 2: Establish Clear Roles and Responsibilities

Rule 3: Recruiting Highly Qualifies Candidates for Board of Directors and Senior Management

Rule 4: Safeguard Integrity in Financial Reporting

Rule 5: Sound Systems of Risk Management and Internal Controls

Rule 6: Promote Ethical Standards and Responsible Conduct.

Rule 7: Ensure Timely and High Quality Disclosure

Rule 8: Respect The Rights of the Shareholders

Rule 9: Recognize the Legitimate Interests of the Stakeholders

Rule 10: Encourage Enhanced Performance

Rule 11: Importance of Social Responsibility

The Resolution has stipulated that:

• These above rules must be applied by the subject companies on or before 31 December 2014.


• The subject companies must submit a quarterly report indicating the steps taken in the process of applying the above rules.


• The subject companies should take into account the immediate application of any principle or requirement stated in such rules with binding legislative status, whether it is in accordance with the Law and its Executive Regulations or with the Companies Law and its Executive Regulations.

Source: Al Qabas Newspaper, Page: 25, Dated: 21 August 2013

New Companies Law Decree 25/2012, as Amended by Law 97/2013

In December 2012, the Companies Law Decree No. 25 of 2012 has been promulgated in Kuwait. Later on, Law No. 97 of 2013 amending certain articles of Law Decree No. 25 has been promulgated.

The Companies Law Decree No. 25 of 2012, as amended by Law No. 97 of 2013, has replaced the Commercial Companies Law No. 15 of 1960. The old Law, enacted nearly 33 years ago, has been surpassed by the corporate organizational needs; became an obstacle in the management of business activities; and became irreconcilable with the newly established regulatory bodies such as the Capital Markets Authority (CMA).

The new Companies Law came to meet the aspirations of doing business in Kuwait and may be considered as a significant leap towards transforming Kuwait into a regional financial center.

With regard to the reconciliation grace period granted to companies to reconcile their conditions to accord with the New Companies Law, which expires on 28 May 2013, there is a tendency to extend the deadline thereof to be 6 months from the date of issuance of the Executive Regulations of the Companies Law No. 25 of 2012.

Public Private Partnership (PPP) Projects in Kuwait

As part of a national strategic vision, the Government of Kuwait seeks to encourage the role of the private sector in infrastructure and service development. The Government has established a clear framework for PPP project implementation to easily engage the private sector in Kuwait’s development plans.

Partnerships Technical Bureau (PTB) seeks partnerships with investors in a fair and ethical manner, while achieving value for money, in order to reach the ultimate objective of the partnership system, which seeks primarily to provide excellent services to the State and to achieve the highest return for the investor.

Electric Power Generation Companies

One of first successful projects which is Az-Zour North IWPP (Phase 1). A pubic shareholding company has been established with a capital of KD 110 million (One Hundred Ten Million Kuwaiti Dinars). The Project involves the development, design, engineering, construction, operation, maintenance and transfer of a power and desalination plant with a capacity of at least 1,500 MW and 102 MIGD. The Project also includes the sale and purchase of associated power and water by the Ministry of Electricity and Water pursuant to an Energy Conversion and Water Purchase Agreement (ECWPA).

And on 22 April 2013, PTB invited investors to submit an Expression of Interest (EOI) in investment in Az-Zour North IWPP (Phase 1I) at the same size of (Phase 1). There is also Al-Khairan IWPP which will be procured under the PPP program and will have double the size of Al-Zour North IWPP (approximately 2,500 MW).

These investment opportunities are available to local and foreign investors at ROIs of not less than 12%, where the Kuwaiti government guarantees the purchase of production, which means that these companies have one guaranteed customer, especially that Kuwait is rated AA by international rating agencies.

Kuwait Health Assurance Company

Yesterday was the deadline for purchasing the Terms of Reference (TOR) document relating to the bid of the Health Insurance Hospitals Project. Al-Qabas Newspaper knew that 7 Groups applied to purchase the TOR document; and these groups reviewed the internal information and business model of the new project. These Groups are: Kuwait Projects Company Holding (KIPCO), Agility Company, National Real Estate Company, Arabi Holding Company, Yiaco Medical Company (Kuwait Finance House Group), Jiblah Holding Company (Al-Sayer Group), and Alessa for Medical and Scientific Equipment Company.

According to the announcement of the Founding Committee for the Project, these companies will compete with each other in a special bid on Monday, July 8, 2013. It is likely that alliances will be formed between some of them. It is expected that one company is going to withdraw, and other company is going to form an alliance with companies from outside the seven Groups.

The Hospitals Company is one of mega projects in the Development Plan, whose capital exceeds KD 100 million. The project has been tendered for strategic investors, but only one investor applied to participate in the bid for a share of 26%, while 3 Groups have withdrawn at the last minute, forcing the Government, represented by the Public Authority for Investment, to re-tender the project with new specifications. The new specifications include, but not limited to, “reducing the hospital capacity”, so that the investor is now required to build 3 hospitals accommodate 700 beds, which was previously 1,600 beds. The Share of citizens in the company will be 50%, and the government will be 24%.

The investors’ high interest in the project gives optimistic indicators of how the Private Sector reads the current and future situations. It is noteworthy that the company's capital was KD 318 million before reducing it to KD 230 million. Participation in the bid was allowed for local and foreign companies, after it was previously restricted to the local companies. However, all the groups currently interested in the bid are local.

Source: Al Qabas News Paper - 11 June, 2013