Govt eyes to ex­tend rent­ing prop­er­ties to pvt sec­tor

Oil sec­tor plans to bring firms un­der one um­brella

Arab Times - - LOCAL -

KUWAIT CITY, March 14: Gov­ern­ment is con­duct­ing stud­ies con­cern­ing the pos­si­bil­ity of ex­tend­ing the pe­riod of rent­ing state prop­er­ties to the pri­vate sec­tor to 99 years which can be re­newed, re­ports Al-Anba daily.

Ac­cord­ing to sources, the study in­cludes amend­ment of Ar­ti­cle 17 of Law No. 105/1980 to pave way for own­ers of in­vest­ment projects in the fields of health and ed­u­ca­tion. The step is based on the keen­ness to de­velop the pri­vate sec­tor and di­ver­sify the sources of rev­enues. The study aims at re­duc­ing the bud­get deficit es­pe­cially con­cern­ing the first chap­ter re­lated to salaries.

The in­tended amend­ment aims at en­cour­ag­ing the pri­vate sec­tor to ex­tend its projects in or­der to in­clude large num­ber of em­ploy­ees and create job op­por­tu­ni­ties, as well as re­duce de­pen­dence on oil as the sole source of rev­enues.

The oil sec­tor is mov­ing closer to­wards launch­ing a new phase in terms of ad­min­is­tra­tive struc­ture by clas­si­fy­ing the sub­sidiaries of Kuwait Petroleum Cor­po­ra­tion (KPC) into three ma­jor cat­e­gories based on the strat­egy to bring oil com­pa­nies un­der one um­brella on the ba­sis of their ac­tiv­i­ties, re­ports Al-Na­har daily.

With this step, Kuwait Oil Com­pany and Gulf Oil will come to­gether un­der the pro­duc­tion cat­e­gory, Kuwait In­ter­na­tional and Kuwait Oil Tanker Com­pany un­der mar­ket­ing cat­e­gory, and KNPC, KIPIC and Petro­chem­i­cals In­dus­tries Com­pany (PIC) un­der in­dus­tri­al­iza­tion cat­e­gory.

Ac­cord­ing to sources, there is a study in this re­gard to unify oil com­pa­nies with sim­i­lar ob­jec­tives in or­der to re­duce ex­penses and in­crease pro­duc­tiv­ity. The merger of PIC with KNPC and KIPIC is one among the top pri­or­i­ties.

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