Gulf News reported that Kuwait plans to auction stakes in 3 transportation system projects worth up to KWD 1.5 billion 2010.
Mr Adel Al Roumi head of a developmental projects unit associated with the ministry of finance said that the projects have been approved by the Gulf state's government to develop the country's first railway and monorail systems. 3 public joint stock companies will be formed with the participation of the private sector through strategic investors.
He said that for each company formed 26% stake will be offered in an auction for local or international investors. The government will own a 24% stake and the remaining 50% will be offered to Kuwaiti investors.
He added that the government is expected to review studies by international consultants for the 3 projects by the H1 of 2010 after which the firms will be set up. The estimated cost of the 3 projects could reach KWD 1.5 billion.
Mr Al Roumi said that developing mass transportation in the world's fourth largest oil exporter has been part of the government's plan to ease traffic congestion and give a bigger role to the private sector. He said that "The state is interested in offering new projects for the private sector to invest in, especially in the field of public services."
OPEC member Kuwait had long said that it wants to diversify its economy away from heavy reliance on oil by becoming a regional financial centre and attracting foreign investments. With Gulf countries witnessing annual population growth of between 5% to 10% cities are increasingly facing congestion, forcing governments to spend on improving infrastructure.
