DUBAI: Kuwait would save billions of dollars if it built its planned metro using private finance instead of using traditional procurement, according to the Kuwait Authority for Partnership Projects (KAPP).It conducted a study comparing the life cost of the massive project if it was built through a public-private partnership compared to a traditionally tendered approach, the Al Anba newspaper reported.
It found that the first construction phase of the Kuwait Metro would cost KD4 billion ($13.2 billion) if implemented by the government with an additional KD1.3 billion for operation and maintenance annually for a period of 30 years.
But a public-private partnership (PPP) approach would involve a first phase cost of KD3.476 billion, in addition to KD934.8 million for operation and maintenance annually for a period of 30 years.
The Kuwait Authority for Partnership Projects said the comparison was important in establishing the financial feasibility of the project.
The Kuwait Metro was originally envisaged as a PPP project with construction due to start in 2017, but it has suffered a series of setbacks.
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