Value of projects awarded in 2018 expected to remain at last year’s levels
The total value of contracts awarded in Kuwait fell by 28% to $13.3 billion in 2017, as compared to the previous year, and below the five-year average of $16.6 billion, a report from the National Bank of Kuwait (NBK) has said.
In its latest Economic Update, the bank said the surge in contracts in the power and water sector – compared to previous years – was offset by the slowdown in projects across other sectors, mainly in transport and construction.
For 2018, the value of projects is expected to remain at 2017 levels, with the largest contribution coming from the construction sector. Due to delays in the bidding phase last year, construction projects worth $6.67 billion have been pushed out to 2018. Additionally, delays in awarding transportation projects valued at $2.3 billion, could also take place this year, the report added.
“There are 26 anticipated deals under consideration, of which the Jahra Ministries Complex valued at $866.9 million could be awarded in the first half of 2018. MEED Projects reports that the lowest bidder is United Gulf Construction Co, and it is very likely it will be awarded the tender.
“This project was pushed to 2018 due to budgetary constraints. The other noteworthy project that is expected in 2018 is the Kuwait National Guard’s Kazema Camp project estimated at $1 billion.”
Despite a higher number of contracts, the total value of construction awards eased in 2017 to $1.6 billion, NBK’s Economic Update said. More than 30 contracts were awarded in the construction sector, but the small size of the contracts – only three were worth more than $100 million – their value fell short of the 21 contracts awarded in 2016, which had a total value of $4 billion.