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KUWAIT - INFRASTRUCTURE 
Spending spree on mega projects
INFRASTRUCTURE AWASH WITH OIL DOLLARS, KUWAIT IS SECURING ITS FUTURE WITH MAJOR SCHEMES TO DEVELOP ALL SECTORS OF THE ECONOMY


Construction of huge new developments is due to start this year.

ONE of the most ambitious civil engineering projects ever undertaken in the Middle East is due to get under way in Kuwait Bay towards the end of this year.

Approximately 16 miles long and 200 feet high, the planned Subiya causeway will stretch across the bay to link the new town of Subiya to Kuwait City. Two artificial islands will be created to support the six-lane bridge, which will take five years to construct, at an estimated cost of $1.5 billion.

The causeway is just one of a number of mega projects planned for the coming years as the emirate embarks on a spending spree, using some of the vast wealth it has accumulated in oil dollars to extend the national infrastructure.

Many of these relate to the oil industry, which will have billions of dollars pumped into it in the coming years. But large schemes are also planned for other sectors of the economy as part of the drive to diversify and increase non-oil income.

Kuwait is strengthening its traditional role as a transshipment hub, for example, and a major project is being launched to construct the biggest seaport in the region on Bubiyan Island.

Minister of Public Works and Housing Bader Nasser Al-Humeidi is heading the $2 billion first phase of the project, which should see operations start in late 2008 or early 2009. Later phases in the port’s development—to be completed by 2016—will boost capacity from 1 million containers to 2.5 million containers.

Projects associated with the new facility will include construction of a bridge linking the island to the mainland, a free trade zone, vast warehouses, and tourist facilities. There are also plans to build a railway connecting the Bubiyan port with Iraq, Iran, and Saudi Arabia.

Ambitious plans will boost sectors such as transport and tourism

Strategically located at the top of the Arabian Gulf, the port will eventually have the capacity to handle 80% of Iraq’s market needs, according to Minister Bader N. Al-Humeidi. It will be a gateway for transit cargo as it will be the nearest port to the south and middle of Iraq compared to other Gulf or Red Sea ports.

The minister says the project will represent a turning point for Kuwait’s economy, elevating it to a higher competitive level. “It will provide many jobs for Kuwait citizens,” he adds.

Kuwait’s status as a leading transshipment hub for the region will be further reinforced by the expansion of the capacity of Kuwait International Airport from 6 million passengers per year to 20 million, as well as modernizing facilities.

Central to the plan is the projected new terminal building that will be linked to the existing terminal via a tunnel and connected to a new access road to the south.

The expansion of the airport will make an important contribution to the development of the tourism, which the government sees as one of the most promising non-oil sectors of the economy.

The centerpiece of plans to develop the tourism industry is the transformation of Failaka Island into a major tourist destination. Situated approximately 12 miles east of Kuwait City, Failaka is the most beautiful of Kuwait’s islands, with an ancient history dating back to the early Stone Age.

Foreign investors have been invited to participate in the $3.3 billion development, which will see the construction of a huge holiday resort featuring entertainment centers, hotels, chalets, restaurants, and a golf course.

An important feature of the project will be a new harbor with a capacity for 300 boats to link the island with the mainland.

Telecom is another area in which private sector participation is moving things forward.

The Ministry of Communications recently awarded an almost $50 million contract to Siemens to upgrade telecommunications in six urban areas by installing fiber-optic wiring as part of a nationwide rollout. The first users are being connected this year, and the ministry claims that Kuwait will be the first country in the world to offer such a service nationwide.