CAPT postpones ‘decision’ on PAI’s request for tender

KUWAIT CITY, March 22: The Board of Directors of the Central Agency for Public Tenders (CAPT) has decided to postpone to an upcoming meeting, after coordination with the advisory services, the issuance of a decision concerning the request submitted by the Public Authority for Industry to put forward a private tender for consulting services for a feasibility study and a master plan, and to prepare the necessary studies for Naayem Industrial City, reports AlQabas daily.

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In the decision to postpone, the agency relied on Article No. 17 of the Public Tenders Law No. 49/2016, which stipulates that contracting should be through a public tender in line with a decision of the council based on the nature of the items or works or the urgent circumstances that require them to be conducted in practice.

Naayem City project will provide about 1,500 industrial plots that in turn will contribute to strengthening the role of the industrial sector in the country, support plans to diversify sources of income, increase the size of the country’s economy, and create new job opportunities for citizens.

The project is scheduled to complete the offering of the tender during the coming period after completing the required regulatory procedures in implementation of the vision for revitalizing the industrial, service and craft sectors according to the government road map, which includes:

1. Carry out design work and preparation of tender documents for Naayem Industrial City project on an area of 12 square kilometers, with the cooperation of the Direct Investment Promotion Authority.

2. Conduct a feasibility study on the construction of Shagaya Economic City project on an area of 50 square kilometers.

3. Prepare the National Industrial Strategy 2035 with the cooperation of the United Nations Industrial Development Organization.

4. Assign a specialized advisory body to prepare a comprehensive study (legal/technical/financial) for the establishment of the Kuwait Industrial Exports Fund.

5. Assign a specialized advisory body to study the proposed values to reconsider the fees for services provided to others, and prepare a comprehensive study of the current and future status of all the authority’s sites that are handled by the private sector.

6. Assign a specialized advisory body to study and evaluate the current incentive and subsidy system in order to ensure that it reaches the beneficiaries and limit its depletion.

7. Present alternatives for implementing the technology park to the Board of Directors of the Public Authority for Industry to choose the most appropriate alternative for the process of establishing the park.

It is noteworthy that the Council of Ministers recently approved an estimate for the use of industrial, craft, commercial and service plots and the service fees provided by the Public Authority for Industry, which contributes to increasing the state’s revenues.

The Public Authority for Industry seeks to develop the sector by assessing the current and future situation of all sites that are operated and benefited by the private sector.

Incentive system

This includes the expiry of contracts, in addition to rationalizing the incentive system and linking it to achieving national priorities, as well as enhancing the participation of the private sector in the projects of the Public Authority for Industry, and encouraging global investments in the industrial sector.

In this regard, the contribution of the industrial sector to the national product ranged between 4 to 5 percent during the past five years.

The National Industrial Strategy 2035 is centered on making Kuwait a global center for competitive, innovative and sustainable industries through the following objectives:

1. Increasing the capital invested in the industrial sector from KD 5.2 billion (USD 17.1 billion) to KD 11 billion (USD 36.3 billion).

2. Increasing the number of specialized jobs for nationals in the industrial sector from 11,000 jobs currently to 25,000 jobs.

3. Increasing the industrial sector’s exports from KD 1.67 billion (USD 5.5 billion) to about KD 3 billion (USD 9.90 billion).

4. Increasing the added value of the manufacturing industries sector from KD 1.8 billion (USD 5.9 billion) to about KD 2.4 billion (KD 7.9 billion).

5. Increasing the value of spending on research and development from KD 14.5 million (USD 47.8 million) to KD 55 million (USD 181.4 million).