kuwaitprojects.pdf

7/14/2019 KUWAITPROJECTS.pdf

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KUWAIT UPCOMMING

POTENTIAL PROJECTS



INDEX

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Kuwait Oil Company [ KOC ] - Oil Kuwait Oil Company [ KOC ] - Gas

Kuwait National Petroleum Co. [ KNPC ] - Refineries

Kuwait National Petroleum Co. [ KNPC ] – Clean Fuel Projects

Kuwait National Petroleum Co. [ KNPC ] – Filling Stations

Equate and Petrochemical Industries Co. [PIC]- Petrochemical

Ministry Of Electricity& Water [MEW] - Power & Water

Ministry of Electricity & Water [MEW] - Solar Energy

Ministry of Electricity & Water [MEW] - Nuclear Power

First Independent Power Plant [ IPP]

Aviation Sector

Railway & Metro Facility Management

Public Private Partnership [PPP]

Economic Plan -Kuwait

Mega Projects – Kuwait

Island Projects



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The state firm’s chairman and managing director indicatedthat $ 57 billion USD, would go to number of developmentprojects including early production facilities (EPF), drillingwells, pipelines and gas Booster stations and Gatheringcenters.

Mr. Rushaid said the projects will also include building ahospital and buying tug boats for oil tankers.

Kuwait, the world’s fourth largest oil exporter, is looking toboost oil output capacity to 5 Millions barrels a day (bpd) by2020.

Construction of many oil Booster station and Gather centers

to cater for the new oil Production. ( for example BS-171 wasawarded at a cost of $ 800 Millions).

KOC budget per year for different kind of projects whichincludes pipelines, gathering centers, Booster stations andMaintenance is around $ 12 Billion USD ( 2010-2011).

KUWAIT OIL COMPANY [ KOC ]OIL



• Kuwait estimated natural gas reserves stood nearly 63 Trillioncubic feet (Tcf).

• Kuwait produce a relative modest volume of dry natural gas anestimated 441 billion cf (Bcf).

• In March 2009, Kuwait and Qatar signed an agreement whereby

Kuwait would import 67 Bcf of liquefied natural gas eachsummer for 5 years.

• The KOC company has linked a five year service contract withShell to develop northern gas fields, the Kuwait PetroleumCorporation (KPC) informed in mid Feb, 2010, under the

agreement, Shell will provide the technical know-how andadvanced technology to develop the field of free or non-associated gas in the northern Kuwait.

KUWAIT OIL COMPANY [ KOC ]GAS

Liquefied Natural Gas

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• By clinching the contract, the Kuwait Oil Company seeks to boost free gas production capacity from140 million cubic feet at present up to one billion cubic feet by 2015 and 2016.

• KOC gas budget is expected to be $ 15 billion USD.



• Kuwait National Petroleum Company has completed the frontend design of its new refinery in Kuwait and already identifiedthe best international EPC companies to finalize the designand construct the refinery and its ancillary facilities includingtankage and marine facilities for this large world-class

refinery.• EPC companies to bid on Package 1 (process plant) package 2

(process plant) Package 3 (utilities and offsite) package 4(Marine Facilities) for new KNPC new refinery project (NRP).

• New Refinery Project is a 615,000bpd grassroots refinery to

built in Kuwait and will consist of over 15 process unites plusbuildings , utilities and offsite facilities. KNPC anticipates thatthe work will be executed utilizing (5) EPC contracts.

• New Refinery Project budget is $ 15 Billion USD.

KUWAIT NATIONAL PETROLEUM COMPANY [KNPC]

Refinery

REFINERIES

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• Another huge project which is intended to revamp and upgrade Mina Al Ahmadi (MAA) and MinaAbdullah (MAB) refineries so as to raise their capacity to 800 thousand bpd.

• The supreme Petroleum Council approved an amount of KD 245 Million as a budget for the firststage of the Clean Fuel Project which provides for an international firm to undertake theproject management, complete Pre-Feed engineering designs and come up with final cost

estimation [PMC].• The project envisages upgrading MAA and MAB refineries to produce highly environment

friendly fuel capable of giving Kuwait Petroleum products exports an conditions with regardsto environment and the product qualities.

• It will cut down heavy fuel oil production to a minimum since this petroleum product is of low

value and difficult to market at the international levels.

• Flour Corporation will carry out FEED and PMC services.

• System Development Project Management (SDPM) and Hill International are the consultants forthe Project.

•

The estimated budget to implement this project is $15 Billion

CLEAN FUEL PROJECT

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• Kuwait already have 120 filling station and KNPC – Localmarket privatize 80 filling station for strategic investor andthe public.

• The last 40 filling station will be issued for the strategicpartner and the public by the end of the year 2010.

• All are operated by full service as none of KNPC facilities areusing the self services system. KNPC property of suchfacilities also includes a single car wash station which servedthis year 98,448 vehicles. Other company carwash stationstermed on out to two private companies.

• Privatization of fuel and lube oil facilities in the local marketwas a part of KPC strategy with a view to create neweconomic opportunities for the private sector as to beintegrated in the oil Industry.

• The estimated price of which an investor should pay to KNPC

for the last 40 filling station of around $ 200 Million USD.

PRIVATIZATION OF FILLING STATIONS

Filling Station

7



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• Equate was established on 1995, to create New Petrochemical Complexin Kuwait and the products produced are Polyethylene, Ethyleen, Glycol ,Aromatic and Olfin.

• HH the Amir of Kuwait Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabahbestowed the honor of holding the official inauguration of EQUATE II.

•

This strategic orientation is part of the State development plan andnational efforts for maintaining and preserving natural resources aswell as boosting relevant returns.

• To put this strategy in place, PIC has adopted a blueprint based onstrategic partnership with major international companies in order toobtain cutting-edge technology, as well as vital best practices in

production, administrative and marketing fields, coupled by theinvolvement of the Kuwaiti private sector through initial public offerings.

• PIC strategy is to build New Olfin III which is budget for $ 5 Billion USDand PIC is planning to sell its fertilizer business to focus on moreprofitable petrochemical division.

•

Kuwait Fertilizer–produces Ammonia and Urea.

EQUATE & PETROCHEMICAL INDUSTRIES CO.

PETROCHEMICALS

http://www.google.com.kw/imgres?imgurl=http://www.epm.cc/images/logos/equate.jpg&imgrefurl=http://www.epm.cc/portfolio-organization-engineering.php&usg=__dEbrK2d_yiSoz6zIKbUVoMCTkNI=&h=352&w=595&sz=85&hl=en&start=3&itbs=1&tbnid=5LBKWJMq0I3sTM:&tbnh=80&tbnw=135&prev=/images?q=equate&hl=en&gbv=2&tbs=isch:1



• Kuwait’s current production of Power is around 11,200 MW• Kuwait’s consumption of Power in summer is 10,900 MW

• Kuwait’s plan to hike the output of electric power by 100% inthe coming 5 years to reach 22,400 MW.

•

MEW have already issued the invitation for pre qualified EPCcontractor for Az Zour Refinery which consist of 1500 MWand 454,600 m3/day

• The Ministry also has plans to incorporate the private sectorin water and electricity setting up companies where Kuwaitinational can own 50% of the plants. The remainder would bedivided between investor and the government. There is alsopossibility of selling the current power plants to Kuwait ‘s

private sectors.

• The estimated budget to construct these new power plants anddesalination plants in next 5 years is $ 15,000 Billion USD.

MINISTRY OF ELECTRICITY & WATER [MEW]

Power & Desalination Plant

POWER & WATER

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• Kuwait is planning to build a power plant to generate electricity from solar energy at a cost of650 Million USD, as part of its public private partnership (PPP) development program. MeedMagazine quoted some Kuwaiti official s as saying that the Ministry of Electricity and Watersigned a MOU with Toyota Tsusho Corporation of Japan in 2008 to build an integrated solarcombined cycle power plant.

SOLAR ENERGY

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•

The Ministry have received offer from US, Europeanand Japanese firms for the proposal to build powerplants using alternative and renewable energy.

• One company has made a proposal for Build, Operate& Transfer (BOT) a Solar Power plant of capacity

100 MW.• Saudi Arabia (KSA) announced that it was awarded

the design and build contract of the largest solardistrict hot water project in world, for the PrincessNoura University for Women Project in Riyadh.



• Kuwait will cooperate with France in the field of nuclearpower, the deputy prime minister of the Gulf nation saidMarch, 2009, hinting that it could take stake in French nuclear

Group Areva.• Emir Shaikh Sabah Al Ahmad Al Sabah informed Al Watan –

daily newspaper that Kuwait was considering to develop thenuclear power with the help of French company to meet thedemand for electricity and water desalination.

• A French firm is studying this issue• The ruler of the oil rich Gulf Arab state would only put nuclear

power and would save a lot of wasted fuel in electricity andwater desalination plant to the civilian use. ( according tolocal newspaper)

NUCLEAR POWER

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KUWAIT EYES NUCLEAR POWER COOPERATION WITH FRANCE

Nuclear Power Plant



FIRST - IPP POWER PLANT

• Al Zour IWPP will have a capacity of 1500MW ( Net Power ) and100 MIGPD of desalinated water. The Project will ve developedas an independent Water and Power Producer (IWPP)combined Cycle Gas Turbine (CCGT) or conventional thermalpower plant with a seawater based desalination plant.

• ASAR- Al Ruwayeh & Partners (ASAR) is please to advisethat the firm is part of the successful consortium that wasrecently awarded the bid to provide transaction advisoryservices to the Kuwait Ministry of Electricity & Water (MEW)and the partnership Technical Bureau (PTB) with respect to

the Al Zour Independent Water and Power Producers ( IWPP)Projects in Kuwait. This is the first ever IWPP project to beinitiated.

• The estimated budget to construct the New Al Zour (IWPP) is $2.5 Billion USD.

Independent Water Power Plant (IWPP)

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http://www.asarlegal.com/index.aspx



AVIATION SECTOR

• The GCC civil aviation sector is poised to attract more than$ 75 Billion USD in the investment over the next 5 years.

• Kuwait International Airport ( KIA) reported record trafficlevels for 2009 with a 7% increase in passengers traffic andthus the passenger number reaches 9.5 Millions

• Kuwait Director General of Civil Aviation (DGCA ) plans toexpand the Kuwait Airport to increase its capacity to 20 Millionpassengers.

• Project Value is $ 25 Billion USD.

•

Foster & Partners are awarded the PMC for Airport.• Kuwait PPP had issued an invitation for Pre-qualification of

Transaction Advisory Services for development plan of theKuwait Airport

Kuwait International Airport

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RAILWAYS & METRO

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• Spending on infrastructure is one of the Major Strategy ofKuwait.

• Railway and Metro is currently the process of concept andinvitations to bid for main EPC contractor are expected tobe released in 2011.

• Kuwait are still receiving proposal of Internationalconsultants.

• Tenders for the construction of a 165 Km metro networkare to be initiated by July, 2011.

• It is expected that those two projects will be executed bythe B.O.T concept. • It is proposed that the strategy of B.O.T will be issues as

follows:

a) 40 % for strategic Partner

b) 50 % for the Public

c) 10 % for the Owner of new Idea & concept.



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RAILWAYS & METRO

• The total cost is estimated at $ 20 Billion USD which will be

funded through PPP arrangement in which the state willhold a 24% stake and contractor 26%. The remaining 50% will be raised though an IPO. ( this approach is part ofKuwait’s future strategy of using the innovations of privatecapital for public projects.

• Annual ridership is estimated at 69.1 Million passengers.• The government is also develop plans for rail network in

the emirate. Five passenger and freight lines are underconsideration with a total length of 505.3 km of doubletrack line electrified at 50 k V AC.

• Estimated budget is $ 15 Billion USD.

• The government will finalize its specification for the proposed fourth line metro network in the nextmonth. The line will be tendered as separate projects under a public private partnership model[PPP], with the winners to be announced within six months. Construction will begin in early 2012. andis anticipated to take 5 years.



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FACILITY MANAGEMENT

• It is an interdisciplinary field primarily divested to the maintenance and care of commercialinstitutional building such as hospital , hotels, resort, office, complexes, sport arenas, conventioncenters and Mall. The followings major sectors are our target for an initial facility managementwhich are as:

• New Jaber International Stadium (60,00 seats capacity)

• Major Malls – Avenue Mall

• Private University – American University

• Private Hospitals

• Major Towers (more than 40 storey)

• USA Military Camps



• The private sector has been given the green light to take the lead, in partnership with thegovernment, in undertaking plans and projects to help achieve the sustainable development ofKuwait’s economy.

• A quality move from theory to practical application, made possible with the ratification by theNational Assembly of the government development plan amounting to $ 150 billion.

• Intending to increase the gross national product (GDP) and living standard of citizens throughthe improvement of non-oil sector growth rates and achieve stability in the general level ofprices and increasing individual share of real income.

• The most significantt strategic objective of the plan include vesting into the private sector theright to lead development projects according to incentive mechanism through the provision offavorable conditions, the gradual reduction of public sector dominance in order to increaseprivate sector participation and citizen ownership of economic activities in addition tosupporting human and societal development and effective government administration.

• Director General of Partnership Technical Bureau , Adel Al Roumi said that the PPP law is theproduct of concerted efforts of many parties base on cooperation between the legislative and

executive authorities in accordance with the directives of HH the Amir of Kuwait.

PUBLIC PRIVATE PARTNERSHIP [PPP]

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KUWAIT ECONOMIC PLAN

• Kuwait strategic economic plan is worth $ 200 Billion USD.• A detailed roadmap to implement Kuwait economic plan a

long term strategy after years of short term planning. It isthe first of its kind since 1986.

• Kuwait does not want to be overshadowed by other gulf

states.

• Kuwait want to attract foreign investment and people for themulti-billion KD projects.

• Five public sectors – housing , electricity, ports, warehouseand health insurance were choose to be privatized with theaim to provide its citizens competitive jobs.

• Kuwait aims to be a prosperous state that is less dependent on oil but based on the well diversifiedmulti-industry. The country want to play a pivotal role in the gulf region. With production of 3,15million bpd. Kuwait , whose surface of 20,000 Sq. Km is half size of Switzerland, produces morecrude oil per day than Algeria and Indonesia combines.

.

http://www.marcopolis.net/kuwait-economic-vision.htm?Itemid=112



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KUWAIT MEGA PROJECTS

• The Mega Projects Agency (MPA), the executive arm of the Kuwaiti Ministry of Public Works lead thecharge to design and implement most of the country’s infrastructure Project. The new business hub(Silk City) with estimated cost US $77 Billion and a major container harbor and 25Km causeway.

• A significant number of the projects detailed above are guided by BOT contracts as defined by theKuwaiti Law no. 7/2008, which governs the building, operation and transfer of structures that

requires granting of rights to state-owned properties.• Shadadiyah University Campus:

Client- Kuwait University Works

Estimated value KD:1,597 B ( 25 years)

The Kuwait University plans to develop the Kuwait University

City (KU City), a education complex in Shadadiyah, 20 Kmwest of Kuwait City. KU City will spread over 4.9 million m2area. It will consist of three campuses including 16 collegesand support faculties, a hospital, a hotel, a housing complex,sports facilities, auditoriums and so forth. Upon itscompletion in 2015, the city will have the capacity to

accommodate up to 40,000 students.



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KUWAIT MEGA PROJECTS• Silk City- Known as Madinat Al Hareer

Client- Ministry of Public Work

Estimated value KD:25B ( 25 years)

In July 2008, Kuwaiti Government had approved the biggest realestate project that will be located at Subiya, northern Kuwait. Thecity will span 250 Km2 and will include 30 communities grouped into

four main districts: Finance City, Leisure City, Ecological Cit andcultural City, it will include as well Olympic Stadium, residence,hotels and retail facilities . Burj Al Mubarak, which is intended tobecome the tallest structure building. Once completed in 2023, SilkCity will be transformed into a new urban centre for 750,000resident in over 175,000 residential units.

• Residential Projects: Kuwait has plans to create satellite cities and towns in the outlying regions mainlySubiya, Khairan (potentially for 500,000 people ) Jaber Al Ahmed City (100,000), Arifjan (Upto 100,0000 andother smaller city developments such as Al Mutlaa, Saad Al Abdullah, Sabah Al Ahmad city which are currentlywitnessing a surge in activity mostly related to large scale public housing projects. According to the PublicAuthority for Housing Welfare(PAWH) almost 50,000 residential units will be distributed at the end of 5 year

development plan.



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• Khairan Residential CityMain Roads + 35,844 residential unitsEstimated value KD: 1,828,863 ( 7 years)

Khairan development will span 40 million m2 in Al Zour Area. The city will be built infive stages, each adding between 4500 to 8500 units. The project is currentlyunder study and the last official completion date announced was quarter of 2015.

• Sabah Al Ahmed Future CityMain Roads + 9574 residential unitsEstimated value KD: 435 M

This real estate community will be located 50 km south of Kuwait City. The citywill be developed over an area of 35 million m2. once completed in 2015, the citywill house up to 110,000 residents.

•

Jaber Al Ahmed Residential CityMain Roads + 5020 residential unitsEstimated value KD: 435 M

•

Mutlaa ResidentialMain R oads +18,000 residential unitsEstimated value KD: 890 M

• Saad Al Abdullah Residential CityMain Roads + 3576 residential unitsEstimated value KD: 199 M




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• Kuwait International Airport Expansion Plan- Terminal 2Estimated value KD: 212 MConstruction on the project is in progress. The expansion projectinvolves the construction of a new terminal building that will beconnected to the existing terminal building via tunnel, the two existingrunways will extended up to 600 meters and third runway to be

constructed.• Kuwait International Airport Expansion Plan- Infrastructure

Estimated value KD: 150 MThe project calls for design and construction of infrastructure workfor the Kuwait International Airport, including approach roads leadingto the airport, runway and aircraft hangers.

• Jaber Al Ahmed Al Sabah BridgeEstimated value KD: 750 MThe Jaber al Ahmad expressway will link

the Silk City and the satellite cities to bebuilt in the northern area of Kuwait city.

Kuwait International Airport Expansion

Jaber Al Ahmed Al Sabah Bridge




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ISLAND PROJECTS•

Bubiyan IslandEstimated value KD: 345 M ( infrastructure cost:305 Mn KD, Port structure 40 MnKD)

Key infrastructure development was on top of the agenda of the five-year plan. BubiyanIsland and Bubiyan Harbor are crucial to the Kuwait’s pursuit of becoming a regionalfinancial and economic hub. Bubiyan, Kuwait largest island -530 Km2 island on the Gulfclose to the southern Iraq Port of Umm Qaser, and is separated from the mainland bythe Subbiya Channel. This project envisages initiating nature reserves and tourist

resorts and the residential area along the coastline, building a modern road network,between Al Sibiyah and Al Jahra cities and sheikh Jaber Al Ahmad Bridge with a totallength of 36 Km, to link the island.

• Bubiyan Harbor Project:Project aims to turn Bubiyan island into a naval façade of the country, a centre ofshipping activities and multi-media transport network. The MPA plans to build Bubiyan

island port to serve the export and import requirements for the construction of Iraq for20 years. Upon this completion the will have a total handling capacity of 2.5 Mn.containers per year.

• Failka Island Project:The MPA of the ministry is also developing the Failaka island one of the country’s majorislands located some 20 km off the coast of Kuwait City in the Persian Gulf. Itsdevelopment project aims to launch a world class tourist resorts , 20 hotels, chalets a

golf course, housing units a marine park, four marinas and entertainment facilities.

Bubiyan Island

Failaka Island



THANK YOU

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